Taiwan Considers Nuclear Revival to Power AI Chip Boom

AI's energy appetite has Taiwan reconsidering nuclear option

The global surge in AI is placing unprecedented pressure on energy resources, with chipmakers such as TSMC consuming vast amounts of electricity to meet growing demand for advanced silicon. In response, Taiwan's government is signaling a potential shift in its longstanding opposition to nuclear energy to address its mounting power needs. Premier Cho Jung-tai recently provided the clearest indication yet of this potential policy change, citing "surging" energy consumption driven by chipmakers and AI industries. In an interview with Bloomberg, Cho stated: "We hope Taiwan can catch up with global trends in new nuclear technologies." While this is not a definitive commitment to nuclear energy, for a country that vowed to decommission its nuclear plants after Japan's Fukushima disaster, it marks a significant change in the government's rhetoric. Nuclear energy has been taboo in Taiwan since the 2011 Fukushima incident, which shook public confidence in the safety of nuclear reactors, particularly as Taiwan is subject to similar earthquake events. In the wake of the disaster, Taiwan pledged to phase out nuclear power by 2025. However, with the rapid increase in energy consumption from AI workloads, Premier Cho hinted that Taiwan might need to reconsider its energy strategy to remain competitive in semiconductor manufacturing. TSMC, one of the world's largest semiconductor producers, is facing an electricity price increase of approximately 12.5 percent to support its current expansion efforts. Before committing to nuclear energy, Cho emphasized the need for a national consensus on safety measures and nuclear waste management, recognizing the potential opposition. It's not just about keeping the chip fabs humming. Cho's comments come at a time when China's saber-rattling and military drills have heightened the fear of Taiwan being blockaded from vital energy imports. Unlike the Philippines and South Korea, which are reviving old nuclear projects, Taiwan faces a unique geopolitical challenge in balancing energy security with national defense concerns from across the Taiwan Strait. Taiwan is not alone in considering nuclear power to meet rising energy demands. In the US, Microsoft has thrown a lifeline to the shuttered Three Mile Island nuclear plant, committing to purchasing the energy it produces once it's revived. Google and Amazon are also betting heavily on next-gen nuclear technology to power their datacenters online. In an AI-driven global economy, where chipmakers hold significant influence, Taiwan may be compelled to reconsider its nuclear stance to maintain its leadership in the semiconductor industry. The nation's ability to navigate the delicate balance between sustaining its AI-driven growth and addressing public concerns over nuclear energy will be critical, not only for Taiwan's future but also for the stability of the global semiconductor supply chain. ®

Taiwan's eyes new nuclear energy plans due to demands of the AI boom

Chipmakers assured us that current electricity production methods will be able to cope until 2030. There are signs that Taiwan is considering a change in direction regarding its energy policy. In an interview with Bloomberg, Taiwanese Premier Cho Jung-tai signaled that future nuclear energy technology may be adopted to address the island's needs. This is a significant change for the Taiwanese, as existing nuclear power facilities have been run down with no direct replacement plans, and only one reactor remains in operation as of 2024. An ample and stable electricity supply is essential to the island's widely envied semiconductor industry. Over the last decade or two, the relatively small island of Taiwan has been decommissioning nuclear power plants with no plans for like-for-like replacements. The public was convinced that the move away from nuclear power was a wise policy direction after the 2011 Fukushima incident in neighboring Japan caused such calamity. Remember, Taiwan is relatively small and densely populated, with 23 million people living on an earthquake and typhoon-prone sweet potato-shaped island that is just 245 miles long and 90 miles across. However, in a 2018 referendum, the public decided to abolish an amendment to the Electricity Act, which had put plans for a "nuclear-free homeland" into law. In the Bloomberg interview, Cho begins by happily discussing the great level of vertical integration enjoyed by the Taiwanese industry and the need for growth to continue. That looks likely, with the AI boom showing little or no signs of slowing down -- meaning Taiwan's semiconductor industry isn't going to get any rest anytime soon. Responding to the highlighted need for growth, a bedrock of most, if not all, capitalist societies, Bloomberg's Matt Winkler asked how Taiwan will address the corresponding growth in power requirements. Knowing about the island's sidelining of nuclear energy for a substantial recent period, Winker queried whether new nuclear technology would be an option for Taiwan. Cho responded by talking about other countries developing nuclear power using new technologies. Nuclear energy production has advanced quite a way since Taiwan commissioned massive power stations reliant on nuclear fission. There has been a lot of talk in the tech world about advanced fission and fusion power generation, as well as advances in small modular nuclear reactors and even micro nuclear reactors powering data centers. Amazon is the latest tech titan to jump on the nuclear bandwagon, investing in nuclear power AI data centers. The Taiwanese Premier remained cautious when pressed about adopting nuclear power, though. He implied there was no rush, insisting that the Taiwanese industry had enough power to come online to meet the requirements by 2030. The island has quickly embraced renewables and is well-positioned for power through wind, sea, solar, and geothermal sources. According to WNN, Taiwan's currently targeted energy mix is 20% from renewable sources, 50% from liquefied natural gas, and 30% from coal. However, Cho next suggested that work on new nuclear power plants was not going as Taiwan's nuclear professionals were still busy taking on decommissioning work. Of Taiwan's three state-run nuclear power plants at Chinshan, Kuosheng, and Maanshan, only the latter still operates. Unit 1 at Maanchan was shuttered in July, with Unit 2 set to end energy production (after 40 years) in May 2025. Cho raised the potential issue of qualified staff leaving the industry and mentioned how vital it was to keep them from being disbursed. The best way forward is to have some new nuclear energy projects for them all to work on as soon as possible (after May 2025).

Taiwan is 'very open' to using new nuclear technology as AI demand devours electricity supply

Taiwan says that it is 'very open' to using nuclear technology, as the AI demand has been unstoppable so far... and it's only going to get bigger. Taiwan is considering changing its direction on nuclear energy, with AI demand unstoppable right now... Taiwan needs all the power it can get, and more specifically, TSMC. TSMC is fabbing virtually all of the most advanced chips on the planet, including the best AI GPUs and AI accelerators, with existing nuclear power facilities in Taiwan run down, and with no direct replacement plans, there's only a single nuclear plant operational in 2024. In order to feed the island with the power demands it needs, the country is now considering changing its stance on nuclear power. Over the last 10-20 years, Taiwan has been slowly decommissioning nuclear power plants with no plans for like-for-like replacements. The people of Taiwan were convinced in a post-Fukushima incident in Japan world, that nuclear power was dangerous, and that shifting away from it was a good thing. In a 2018 referendum, the people of Taiwan decided to abolish an amendment to the Electricity Act, that had plans for a "nuclear-free homeland" into law. In a fresh interview with Bloomberg, Taiwanese Premier Cho Jung-tai signaled that future nuclear energy technology could be used in the future to feed Taiwan's growing electricity needs. Cho said: "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. Taiwan will have no issues with power supply for industries before 2030".