May 20, 2024 – According to a report by tech media wccftech, Taiwan Semiconductor Manufacturing Company (TSMC) is exploring the possibility of using nuclear power to alleviate the current pressure on electricity consumption during the chip manufacturing process.
The current Minister of Economic Affairs, Guo Zhihui, views nuclear energy as a clean source of power, and members of the Executive Yuan have expressed their willingness to amend existing laws to facilitate this shift. Data released by the power company TaiPower reveals that nuclear power accounts for less than 7% of Taiwan’s energy mix. Guo Zhihui indicated that if the plan to promote nuclear power garners public support, it could lead to changes in the proportion of nuclear energy in the island’s power structure.
In March of this year, it was reported that TSMC, a leading semiconductor foundry, is expected to consume over 30 billion kilowatt-hours of electricity this year, making it the only semiconductor company subject to a 25% electricity price increase. Calculations show that this electricity price adjustment will have an impact of approximately 0.14% on TSMC’s gross profit margin.
TSMC has stated that it respects the decision regarding electricity price adjustments and maintains its long-term gross profit margin target of over 53%. For reference, TSMC’s gross profit margin was exactly 53% in the fourth quarter of last year.
Furthermore, TSMC claims to have achieved a cumulative energy saving of 13% in 2022, with an additional annual savings of 700 million kWh. The company is gradually increasing its use of renewable energy, which currently accounts for over 12% of its total energy consumption. Its overseas subsidiaries aim to achieve 100% renewable energy operations.
