[News] TSMC’s Electricity Demand Could Triple by 2030, Raising Concerns on Taiwan’s Power Supply

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While TSMC is making advancements on its 2nm at full throttle, an unexpected risk may be emerging, which might be more severe than most could imagine: power supply. Citing a report by S&P, a report by Wccftech highlights that compared with 2023, the foundry giant’s electricity consumption could nearly triple by 2030, accounting for about 24% of the island’s total electricity usage.

Another report by the Economic Daily News warns that the slow growth in Taiwan’s power generation may pose challenges to TSMC’s chip production, which requires high energy consumption.

Citing the data compiled by a S&P’s report titled “Power Is Increasingly A Credit Risk for TSMC,” Wccftech notes that in 2023, TSMC’s electricity consumption had reached nearly 250 GW, accounting 8% of Taiwan’s total electricity use and almost 16% of the industrial sector’s demand. However, by 2030, TSMC’s share of electricity consumption could soar significantly, contributing 23.7% of the island’s total power usage.

S&P’s calculation is based on the assumption that the TSMC’s wafer shipments will increase by 90% compared to 2023 levels, leading electricity consumption to soar to 794 GW in 2030, Wccftech notes.

It is worth noting that the S&P report, cited by Wccftech, also highlights that extreme ultraviolet (EUV) lithography systems, which are required for processes below 7nm, consume significantly more power than the older deep ultraviolet lithography systems (DUV).

The scenario would weigh heavily on semiconductor heavyweights as they are eagerly pursuing for more advanced nodes. TSMC’s move to 3nm chip production is fueling S&P’s projections of the company’s skyrocketing electricity consumption, Wccftech says.

To put things in context, the report also cites data from Taiwan’s state-owned electricity provider, TaiPower, to show that the island’s electricity reserve margin continues to fall short of the government’s 15% target. While the household electricity consumption continues to decline, TSMC’s power needs, in contrast, keeps growing.

Moreover, according to the Economic Daily News, which also cites S&P’s report, when the electricity reserve margin drops below 10%, the stability of the power supply can be affected.

Citing S&P’s report, the Economic Daily News states that the growth of Taiwan’s power supply is relatively limited. In addition, Taiwan’s policy of replacing cheaper coal and nuclear energy with natural gas and renewable energy will put more pressure on future electricity prices, which may also influence the stability of power supply.

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(Photo credit: TSMC)