TSIA backs nuclear power restart review

The Taiwan Semiconductor Industry Association (TSIA), which represents major chipmakers including TSMC, United Microelectronics Corp, and Vanguard International Semiconductor, formally supports the government's evaluation of restarting nuclear power plants. This position stems from the industry's stated requirement for a consistent and adequate electricity supply, essential for its operations and projected growth. The TSIA anticipates Taiwan's semiconductor production value will surge 40.9 percent year-on-year to NT$9.1 trillion (US$280.1 billion) this year.

Taiwan closed its last nuclear power plant in May last year, shifting towards renewables and liquefied natural gas. However, President William Lai has indicated that his administration would not rule out any energy source, including nuclear power, provided safety, nuclear waste disposal, and public consensus requirements are met. The TSIA's support for an assessment is similarly conditional on regulatory compliance and safety.

This alignment between industrial demand and the President's conditional openness suggests a potential re-evaluation of energy policy, driven by the strategic needs of the semiconductor sector. Yet, the conditions specified by both the TSIA and President Lai, particularly safety, waste disposal, and public consensus, indicate that any actual restart would face significant challenges, making the outcome of the government's review uncertain.

For the semiconductor industry, a dependable power grid is fundamental. The TSIA's intervention highlights that energy supply is not solely an infrastructure issue but a strategic factor directly influencing the competitive standing and growth trajectory of Taiwan's dominant chip manufacturing sector.