Taiwan, the global powerhouse for semiconductor manufacturing, is facing a critical decision: whether to embrace nuclear energy once again to power its booming AI industry. The island nation, home to the world-leading chipmaker TSMC, is experiencing a surge in demand for electricity to fuel the rapidly growing AI sector. As TSMC continues to produce cutting-edge chips, including AI GPUs and accelerators, the need for reliable and abundant energy is paramount.
However, Taiwan has been phasing out nuclear power plants for the past two decades following the Fukushima disaster in Japan, which instilled a public fear of nuclear energy. This shift away from nuclear power has left Taiwan with only one operational nuclear plant in 2024, creating a potential energy deficit.
Recognizing the urgent need for a solution, Taiwan’s Premier Cho Jung-tai has signaled a possible change in direction. He has stated that the government is open to exploring new nuclear technologies, provided there is public consensus on safety and proper waste management. Cho emphasized the importance of catching up with global trends and adopting advanced nuclear energy solutions. He stated, “As long as there is a consensus within Taiwan on nuclear safety and a good direction and guarantees for handling nuclear waste, with this strong consensus, we can have a public discussion. We hope that Taiwan can also catch up with global trends and new nuclear technologies.”
The potential for new nuclear technologies in Taiwan is not only driven by the need to power the AI industry but also by the government’s ambition to attract more tech giants like NVIDIA and AMD to establish research and development facilities on the island. Premier Cho highlighted Taiwan’s strong vertically integrated supply chain and its role in the global semiconductor industry. He stated, “Taiwan’s economic resiliency comes from the partnership we have with friendly countries. We have a strong vertically integrated supply chain. This is why we believe Taiwan can play an important role in the democratic supply chain.”
The decision on whether to embrace nuclear energy again is a complex one for Taiwan. Balancing the need for reliable energy to fuel its critical industries with public concerns about nuclear safety is a delicate task. The outcome of this debate will have a significant impact on the future of Taiwan’s economy, its role in the global technology landscape, and the fate of its semiconductor giant, TSMC.
