TAIPEI (Taiwan News) — Taiwan’s chip industry has urged the government to build reserves of key materials and energy as Middle East tensions raise supply risks, Nikkei Asia reported Wednesday.

The Taiwan Semiconductor Industry Association called for stockpiling helium and liquefied natural gas and diversifying supply sources. It also voiced support for reopening nuclear power plants to ensure a stable energy supply.

TSIA Chair Cliff Hou (侯永清) said the group has advised the government to follow countries such as Japan and the US in maintaining larger strategic inventories. “We also propose to the government that we need to keep diversifying sources of energy and critical materials supplies to prepare for the uncertainties,” he said.

“The association also supports the government's decision to reopen nuclear power plants to have more stable energy supplies if the processes meet legal requirements and if safety is guaranteed,” Hou added. “Stable and sufficient energy is extremely vital for semiconductor industry development.”

This marked the first time the association and major chipmakers had publicly backed nuclear energy, per UDN.

Hou said disruptions to hydrogen, helium, and LNG supplies linked to the Middle East conflict remain manageable for now. “In the short term, all of our member companies are okay with current inventories, but we also need to pay attention to mid-term and long-term uncertainties,” he said.

He added that the chip industry is expected to continue growing this year, though geopolitical risks remain. TSIA includes major firms such as TSMC, United Microelectronics Corp., and Nanya Technology, along with suppliers across the semiconductor ecosystem.

Taiwan currently holds about 11 days of LNG supply and lacks strategic reserves for materials such as helium. The country hosts the world’s second-largest semiconductor industry by revenue after the US.