TAIPEI (Taiwan News) — Economics Minister Kung Ming-hsin (龔明鑫) said on Wednesday that Taiwan will maintain a stable power supply through 2034, noting the government will manage electricity allocation to support industrial expansion, CNA reported.
Kung said the government conducts annual reviews of electricity supply and demand conditions. To meet rising electricity demand driven mainly by growth in the AI and semiconductor sectors, Taiwan is expanding renewable energy development, converting coal-fired power plants to natural gas facilities, developing energy storage systems, and advancing plans to restart the Maanshan Nuclear Power Plant.
According to Taipower, electricity demand from the semiconductor and AI sectors is expected to exceed 5GW by 2030, more than double the average annual increase over the past decade. The Ministry of Economic Affairs said that electronics and electrical equipment manufacturing accounted for 24.3% of Taiwan’s electricity consumption last year.
Domestic and foreign companies operating in Taiwan are required to submit their electricity demand to the ministry to enable better power allocation management and the expansion of electricity infrastructure, Kung said.
At a Wednesday employee event at Nvidia’s Taiwan branch, CEO Jensen Huang (黃仁勳) said the company plans to invest up to about NT$4.8 trillion (US$150 billion) annually in Taiwan. He noted that Taiwan’s role as a global AI hub and a key semiconductor manufacturing and packaging center will require significantly more electricity to support continued expansion.
To meet rising electricity demand at Taipei’s Beitou Shilin Technology Park, where Nvidia will build its new Taiwan headquarters, Taipower said it has coordinated with the Taipei City Government to construct an underground substation, a project expected to take around seven years.
Kung said Taipower will also build a temporary substation, scheduled for completion in 2029, to support the park’s electricity needs. The facility is expected to ensure power supply ahead of the opening of Nvidia’s new Taiwan headquarters.
The headquarters is expected to break ground by the end of this year and begin operations in 2030, spanning about 65,000 square meters and accommodating around 4,000 employees. Huang said Nvidia works with around 150 Taiwanese partners, including chipmakers and AI equipment suppliers, adding that Taiwan will remain a highly important hub for the company.
Nvidia’s presence is also expected to attract AI, high-performance computing, and robotics companies to the park, further strengthening Taiwan’s position in the global AI supply chain.
