The surging global demand for AI chips has propelled TSMC to historic profits, even as Taiwan confronts significant energy supply challenges. To address these pressures, TSMC is partnering on large-scale offshore wind projects, marking a major step toward renewable power integration in an energy-constrained environment.
- TSMC secures 30-year deal for 1+ GW offshore wind power.
- Taiwan faces sharp energy shortages due to LNG supply disruptions.
- Renewables key to TSMC’s plan for 100% green energy by 2040.
What happened
TSMC has signed a 30-year renewable energy agreement to purchase all power generated from the Hai Long offshore wind project, which will have over one gigawatt of capacity when completed. This move complements earlier deals with Danish and German renewable developers, positioning TSMC as a major driver in Taiwan’s growing wind power sector.
The Hai Long project began feeding power to Taiwan’s grid in 2025 and aims for full operation by 2027. These ambitious renewable energy commitments come amid record demand for TSMC’s AI chip fabrication and an intensifying global energy crisis adversely impacting Taiwan’s traditional fuel imports.
Why it matters
Taiwan heavily depends on imported liquefied natural gas for about half its electricity, exposing it to supply shocks from geopolitical conflicts in the Middle East. Recent disruptions—such as drone strikes on Qatari facilities—have cut LNG imports dramatically, triggering concerns over electrical grid stability.
TSMC alone accounts for nearly 10% of Taiwan’s electricity use, a figure expected to rise significantly as AI chip demand accelerates. The semiconductor giant’s renewable energy investments are critical in supporting Taiwan’s energy diversification goals and reducing reliance on fossil fuels amid tightening global energy markets.
What to watch next
Taiwan’s government will continue pushing to expand offshore wind capacity and may revive nuclear power plants to stabilize supply. The progress and timeline for Hai Long and other renewable projects will be key for mitigating energy risks and supporting Taiwan’s semiconductor industry growth.
TSMC’s broader targets—achieving 60% renewable energy usage by 2030 and full renewable coverage by 2040—will serve as benchmarks for its environmental leadership while scaling global chip production. Observers should track how these projects impact Taiwan’s grid stability and energy independence amid ongoing global supply chain pressures.