TSMC taps wind power as AI chip demand soars, Taiwan feels energy crunch

Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing unprecedented profits fueled by the AI surge, yet it faces the pressing challenge of Taiwan's energy crisis. In a bold move to pivot towards sustainable energy, TSMC has entered into a long-term corporate power purchase agreement to secure 100% of the output from the Hai Long offshore wind project. This significant partnership with Northland Power, a Canadian energy firm, encompasses over 1 gigawatt of power capacity from three offshore wind sites situated in the Taiwan Strait, off Taiwan's central western coast. According to an announcement made on April 30, once operational, the Hai Long project is expected to provide electricity for more than 1 million households across Taiwan. The wind farms are projected to begin supplying power to Taiwan’s grid in 2025, with full operations anticipated by 2027. This initiative comes at a critical time as geopolitical tensions, particularly in the Middle East, have severely impacted energy supplies, notably disrupting shipping routes through the Strait of Hormuz. When Qatar's natural gas production was halted due to damage from Iranian drone strikes in March 2026, Taiwan's power grid suffered a significant blow, losing a third of its typical liquefied natural gas supply. With natural gas plants accounting for approximately half of Taiwan's electricity generation, the situation has prompted an urgent response. The Taiwanese government has successfully navigated potential energy shortages by securing alternative supplies from countries like Australia and the United States, as reported by Reuters. TSMC’s commitment to renewable energy not only highlights its role in the semiconductor industry but also reflects a broader effort to stabilize Taiwan's energy future amidst global uncertainties.