Nvidia CEO says Taiwan needs more electricity, ministry confirms 5.2 GW of gas capacity to be added

NVIDIA CEO Jensen Huang's visit to Taiwan highlighted the island's rapidly growing manufacturing sector, which requires increased electricity capacity. This reflects Taiwan's thriving semiconductor in... Read original →

Jensen Huang’s visit underscores a hard truth: cutting-edge semiconductor manufacturing has become energy-intensive industry. TSMC’s sub-3nm fabs each consume over 2TWh annually—equivalent to a mid-sized city—forcing Taiwan, China to fast-track 5.2GW of gas-fired capacity. Technologically, this pressures equipment vendors to enhance EUV scanner efficiency and spurs innovation in thermal management and advanced packaging. Regulatory risks loom as electricity price volatility and carbon compliance could raise foundry costs by 5–8%, eroding TSMC’s edge over Samsung and Intel. Strategically, the U.S. leverages CHIPS Act subsidies to scale TSMC Arizona, while Korea accelerates its K-Semiconductor strategy for AI chip share. Over the next 12–24 months, fab location decisions will prioritize grid reliability and renewable integration; without faster green-energy adoption, Taiwan, China risks losing ESG-sensitive clients and its perceived irreplaceability in the global supply chain.