[Taiwan Chip News] TSMC-Fueled Power Demand... Taiwan's Semiconductor Industry to Use Twice as Much in 10 Years

Semiconductor-Related Industries' Electricity Consumption Forecast to Rise from 52 Billion to 110 Billion kWh
Semiconductors' Share of Total Electricity Consumption to Increase from 18% to 30%
TSMC's Investment in Advanced Processes Below 3 nm to Sh

The power consumption of Taiwan's semiconductor industry, including TSMC, the world's largest semiconductor foundry, is expected to more than double over the next decade. As advanced semiconductor fabrication plants expand and the artificial intelligence (AI) server industry grows, semiconductor-related industries are projected to account for about 30% of Taiwan's total electricity consumption by 2035.

According to Taiwan Economic Daily News, Tseng Wen-Sheng, chairman of Taiwan Power Company (Taipower), made the prediction on October 14 at Taiwan International Smart Energy Week 2026.

Taipower estimated that Taiwan's semiconductor-related industries will consume about 52 billion kilowatt-hours (kWh) of electricity this year. The figure combines consumption by wafer manufacturing, memory, semiconductor packaging and testing, and the server industry. This accounts for about 18% of Taiwan's total electricity consumption.

Electricity consumption is forecast to reach about 110 billion kWh in 2035, approximately 2.1 times this year's level. The share of total consumption is also expected to rise from 18% to 30%.

Wafer manufacturing is the sector driving the increase in electricity demand. Chairman Tseng expected the wafer manufacturing industry's electricity consumption to grow the fastest over the next decade. He explained that TSMC's investment decisions on advanced processes of 3 nanometers (1 nm, or one-billionth of a meter) and below will be a key factor determining future growth in electricity demand.

As semiconductor manufacturing processes become more advanced, the electricity needed for advanced manufacturing equipment and process management also increases. Combined with growth in memory, semiconductor packaging and testing, and the server industry, this is expected to drive up electricity use across related industries.

Securing electricity has already become a key investment consideration for semiconductor companies. Chairman Tseng explained that while land was once the most important factor when companies chose where to invest, over the past two years the main consideration has shifted to whether they can receive the electricity they need when they need it.

Taipower emphasized that minimizing volatility in electricity prices is as important as ensuring a stable power supply. A sharp rise in energy prices amid geopolitical uncertainty could negatively affect the competitiveness of advanced industries, which consume large amounts of electricity.

Chairman Tseng said Taiwan's electricity supply and demand remain stable, adding that power demand forecasts and supply plans will need to be closely coordinated with advanced technology companies. Expanding power infrastructure in step with the semiconductor industry's growth is emerging as a key challenge that will shape the future competitiveness of Taiwan's advanced industries.

Taiwan Economic Daily News = Reporter Chang Louise / Translation = The Asia Business Daily

Note: This column was published through a strategic partnership between The Asia Business Daily and Taiwan Economic Daily News.

This content was produced with the assistance of AI translation services.