Nikkei Asia

Taiwan Chip Industry Looks to Avoid Energy and Helium Shortage

The episode focuses on Taiwan’s semiconductor sector warning that regional conflicts, notably the Iran war, are threatening critical energy and helium supplies needed for advanced chip fabrication. The Taiwan Semiconductor Industry Association (TSIA), representing giants like TSMC, MediaTek and UMC, has formally asked the government to secure long‑term strategic reserves of liquefied natural gas (LNG) and helium, while endorsing the reopening of nuclear power plants. Helium, which Qatar provides about one‑third of global output, saw a 40% production drop after attacks on its industrial city, tightening a resource essential for EUV lithography cooling, leak detection and ultra‑thin film deposition. LNG accounts for roughly 48% of Taiwan’s 2025 electricity mix, with coal and renewables filling the rest; the island’s sole nuclear plant was shut in May 2024, leaving the industry with only three months of buffer inventories before supply stress escalates. Industry leaders such as Intel’s former CEO Pat Gelsinger and Pegatron chairman T.H. Tung have highlighted the unsustainability of the current energy profile, urging a nuclear comeback. The government aims to increase LNG reserve capacity from 11 to 24 days by 2027 and boost U.S. LNG imports to 20‑25% by 2029, while nuclear reactors undergo safety reviews expected to take a year or more. If these measures stall, chip makers will face higher input costs and potential production slowdowns, jeopardizing Taiwan’s role as a linchpin for AI data centers and global supply chains. Diversifying helium sources through major gas firms and expanding strategic reserves are seen as essential steps to maintain manufacturing continuity and price stability.