(Bloomberg) -- Taiwan is “very open” to using new nuclear technology to meet surging demand from chipmakers devouring electricity in the AI boom, according to Premier Cho Jung-tai — one of the strongest signs yet that the government is rethinking its opposition to reactors.
“As long as there is a consensus within Taiwan on nuclear safety and a good direction and guarantees for handling nuclear waste, with this strong consensus, we can have a public discussion,” Cho said in an interview with Bloomberg News.
“We hope that Taiwan can also catch up with global trends and new nuclear technologies,” Cho said on Thursday, while also reiterating his view that “Taiwan will have no issues with power supply for industries before 2030.”
Cho’s comments underscore what appears to be a shift by a government that has opposed using nuclear for safety reasons. Public support for using reactors in Taiwan plunged in 2011 when neighboring Japan was struck by an earthquake that wrecked the Fukushima plant, leading to a crisis Tokyo is still sorting out.
The opposition to nuclear power is getting harder to maintain given the incessant demand that the artificial intelligence boom is placing on chipmakers like Taiwan Semiconductor Manufacturing Co. Taiwan has raised electricity prices twice this year, with the latest being a 12.5% increase for industrial users that began earlier this month.
Still, TSMC Chief Executive Officer C. C. Wei said during a post-earnings call Thursday that the company has been assured by the government it will have enough electricity, water and land to support expansion.
Taiwan isn’t alone in taking a closer look at nuclear to boost power supply. Microsoft Corp. is helping revive the shuttered Three Mile Island nuclear plant in Pennsylvania by agreeing to buy all the output. Meanwhile, Alphabet Inc.’s Google and Amazon.com Inc. are both investing in next-generation nuclear technology.
The Philippines and South Korea have also agreed to conduct a feasibility study on possibly rehabbing the Southeast Asian nation’s mothballed nuclear plant.
Taiwan’s rethink also comes as China’s military has staged drills that appear to simulate a blockade of the self-ruled island that’s home to 23 million people. Though there are no signs of imminent conflict, the risk of Taiwan being cut off from important energy supplies is one that officials such as Cho must consider.
Underscoring the interest in someday embracing nuclear power, the 65-year-old Cho said he’d ask the state-backed power provider to make sure that personnel from the archipelago’s decommissioned reactors stay in their jobs. Taiwan is set to close its last nuclear reactor in the spring.
“This is because we need to prepare for future nuclear technology developments and to respond to any potential legal changes in Taiwan,” Cho said.
TSMC
In addition to boosting power demand, surging global investment in AI has also put Taiwan’s chipmakers, especially TSMC, in the spotlight because they make the vast majority of the world’s most-advanced semiconductors. The US, Japan and other governments have in turn sought to lure TSMC to build chip plants on their soil.
The government of Taiwanese President Lai Ching-te, of which Cho is a member, has been fine with TSMC’s overseas expansion. In Thursday’s interview, Cho linked that expansion to Taiwan’s efforts to build stronger ties with like-minded democracies to counter China, which claims the island as its territory and has pledged to eventually bring it under Beijing’s control, by force if necessary.
That said, Cho also hopes firms like Nvidia Corp., Infineon Technologies AG and Advanced Micro Devices Inc. will open R&D facilities in Taiwan.
“Taiwan’s economic resiliency comes from the partnership we have with friendly countries,” he said. “We have a strong vertically integrated supply chain. This is why we believe Taiwan can play an important role in the democratic supply chain.”
Defense
Of course, Taiwan’s efforts to bolster its security go beyond semiconductors. The government announced plans in August to lift defense spending to a record in 2025 – the eighth straight year of increases. The total figure would account for 2.45% of estimated GDP next year, in line with recent years and greater than the 2% target for NATO countries.
That hasn’t satisfied everyone. Former US President Donald Trump recently made comments to a columnist for the Washington Post that suggested Taiwan should boost spending on its armed forces to 10% of GDP. Cho, a former chairman of the ruling Democratic Progressive Party, said in response, “While we cannot allocate 10% of GDP to defense in one go, we have increased the budget compared to the past.”
“We also hope that through Taiwan’s efforts, the world will recognize Taiwan’s determination and provide greater support,” he added.
In the interview, Cho also reiterated the government’s desire to expand defense ties with the US and other nations, which are looking to reduce their supply-chain links to China. One example he mentioned was that Taiwan recently hosted a number of executives from overseas drone makers. If successful, the strategy would create more incentive for those governments to come to Taiwan’s aid in an emergency.
“Because Taiwan understands its role in the democratic supply chain and the world’s reliance on Taiwan, I often say that the more Taiwan is needed, the more important it becomes,” Cho said. “We are continuously moving forward on this path.”
--With assistance from Shin Pei.
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