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Taiwan's Chip Industry Faces Energy Crisis as AI Demand Grows

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Semiconductors,Taiwan,Energy Crisis

Taiwan's thriving semiconductor industry, known for producing the world's most advanced computer chips, is facing a growing energy crisis. The high energy demand of chip manufacturing, particularly from companies like TSMC, threatens Taiwan's ability to meet its clean energy targets and sustain its economic prosperity.

Some 50 miles southwest of Taipei, Taiwan’s capital, and strategically located close to a cluster of the island’s top universities, the 3,500-acre Hsinchu Science Park is globally celebrated as the incubator of Taiwan’s most successful technology companies. It opened in 1980, the government having acquired the land and cleared the rice fields,with the aim of creating a technology hub that would combine advanced research and industrial production.

We have the same population as Australia and use the same amount of electricity, but we are only half the size of Tasmania, and 79 percent of Taiwan is mountainous, so land acquisition is difficult.” Rooftop solar is expensive, and roof space is sometimes needed for other things, such as helicopter pads, public utilities, or water tanks.

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