HSINCHU, Taiwan, Oct 27 (Reuters) – Taiwan’s semiconductor industry is ready to work with the government to meet its 2050 net-zero target, but the demand for renewable energy sources is growing as demand for artificial intelligence soars. A top industry executive said there was a need to accelerate development. on friday.
Taiwan imports nearly all of its energy needs, primarily in the form of natural gas and coal, but has embarked on a major expansion of renewable energy to reach its carbon neutrality goal.
Cliff Hou, senior vice president at TSMC (2330.TW), the world’s largest contract semiconductor maker, said AI offers an opportunity rarely encountered in recent decades.
“How will we navigate big trends such as AI in the future?” Mr. Hou said. “I think Taiwan’s entire semiconductor industry will experience comprehensive improvement and transformation in our nature, in research and development and manufacturing, and in global expansion.”
Hou, chairman of the Taiwan Semiconductor Industry Association, said at the annual general meeting held at the Hsinchu chip hub that stable renewable energy is the key to the industry’s development.
Hou said the association made four important appeals to the government last month, including a stable supply of green energy, as Taiwan’s chip industry aims to seize the opportunity of AI. It is said that he was
“In terms of energy, we hope that the government will be more proactive in all aspects to develop new energy sources and maintain stable supply for the semiconductor industry,” Hou added.
Mr Hou said both industry and government have agreed to work together to achieve the goal of net zero by 2050.
“But we faced some challenges here,” he said. “The supply of net-zero energy currently exceeds demand across the semiconductor industry. We hope that the government can accelerate the pace of development of new energy sources.”
Taiwan Semiconductor Manufacturing Co. (TSMC) announced in 2021 that it aims to achieve net-zero emissions by 2050, consistent with government targets set by President Tsai Ing-wen that year.
According to government plans, coal’s contribution to Taiwan’s electricity mix is expected to fall below 30% by 2025, with LNG’s share rising to about half and renewables’ share rising to one-fifth.
Taiwan has attracted billions of dollars in offshore wind investment in recent years, and chipmakers are eager to strike deals with developers.
Hou told reporters on the sidelines of the conference that in addition to concerns about the supply of renewable energy, semiconductor companies are also concerned about whether renewable energy will be affordable.
Doris Hsu, CEO of Global Wafers (6488.TWO), told reporters that while AI will be a key driver of rapid growth over the next decade, Taiwan’s chip industry will He said he faces some pressure.
“Nowadays, it’s not enough just to have energy. We need green energy to compete in the world,” Hsu said.
Report by Sarah Wu. Written by Ben Blanchard.Editing: Clarence Fernandes, Raju Gopalakrishnan
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