TSMC Turns to Wind Power Amid Taiwan’s Energy Challenges
2As global demand for AI chips skyrockets, Taiwan’s leading chip manufacturer, TSMC, is taking major steps to support renewable energy. While enjoying record profits from the AI boom, the company is also focusing on reducing its carbon footprint and helping Taiwan diversify its energy sources. One of its key moves is securing wind power from offshore projects to meet its growing energy needs.
TSMC’s Wind Power Commitment
TSMC has signed a 30-year agreement to purchase all the power generated by the Hai Long offshore wind project off Taiwan’s western coast. The deal with Northland Power covers more than 1 gigawatt of capacity across three wind farms. Once fully operational, these farms are expected to supply enough electricity to power over one million Taiwanese households.
The Hai Long project started sending power to Taiwan’s grid in 2025 and aims to be fully operational by 2027. This move is part of Taiwan’s broader push to expand renewable energy, especially offshore wind, which the government plans to make up 15 gigawatts of capacity by 2035. TSMC’s investment demonstrates its commitment to sustainability and energy independence as regional tensions and global crises strain traditional energy supplies.
Taiwan’s Energy Crisis and Diversification Efforts
Taiwan faces a complex energy situation. Recent disruptions in the Middle East, including damage to Qatar’s natural gas facilities and Iranian drone strikes, have cut off significant energy supplies. As a result, Taiwan’s natural gas imports, which account for nearly half of its electricity generation, have been severely impacted. The island relies heavily on imports from Australia and the U.S., but reserves are limited to just a couple of weeks.
To avoid shortages, Taiwan’s government has been actively seeking alternative energy sources. It has restarted some nuclear plants and accelerated renewable projects, especially offshore wind farms. Taiwan’s goal is to reach 15 gigawatts of offshore wind capacity by 2035, reducing dependence on imported fossil fuels. Amid these efforts, TSMC’s push for renewable energy is a vital part of Taiwan’s strategy to create a more resilient and sustainable energy system.
TSMC has also established other renewable energy agreements, including deals with Danish and German firms for offshore and onshore wind projects. The company aims for 60% of its global operations to run on renewable energy by 2030 and to be fully powered by renewables by 2040. Given its large energy consumption—nearly 10% of Taiwan’s total electricity in 2023—these initiatives are crucial for the island’s energy future and for meeting the increasing demands of AI chip manufacturing.
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