Group urges return to nuclear power to back AI

Group urges return to nuclear power to back AI

Taiwan should return to nuclear power to support the rapid growth of artificial intelligence (AI) and improve energy security, a trade group said yesterday, warning that rising electricity demand from AI industries could put pressure on the nation’s power supply.

The government should adjust its energy policy and generate at least 15 percent of electricity from nuclear sources to ensure stable electricity supply and reasonable power prices, Third Wednesday Club chairman Lin Por-fong (林伯豐) said.

Rising geopolitical risks in the Middle East, and other potential disruptions to global oil and gas transportation have made energy security a critical issue for AI development, Lin said.

Third Wednesday Club chairman Lin Por-fong speaks to reporters in Taipei yesterday.

Returning to nuclear power use in Taiwan would put the nation in line to match South Korea, where nuclear energy accounts for about 31 percent of the power mix, he said.

The change is needed, as Taiwan’s AI industry is driving a surge in electricity demand, he said.

Taiwan plays a key role in the global AI supply chain, accounting for about 70 percent of the world’s foundry market and about 90 percent of AI server production through its manufacturers, Lin said.

The semiconductor industry uses about 17 percent of Taiwan’s electricity, a figure that could rise to 30 percent by 2035, he said.

Annual power consumption by the sector could more than double to about 110 billion kilowatt-hours from about 52 billion kilowatt-hours over the same period, he said.

Without sufficient expansion of power generation capacity and grid infrastructure, Taiwan could face greater risks of electricity shortages as industrial demand accelerates, he added.

Beyond energy supply, Taiwan also needs greater government support for AI adoption and talent development, Lin said.

Authorities should introduce subsidy programs similar to those in other countries to help companies train workers and accelerate digital transformation, he said.

At the same time, policymakers should not overlook traditional industries as investment increasingly flows toward AI-related businesses, Lin said.

Conventional manufacturers can still benefit from the AI boom by developing new products and integrating into AI supply chains, he said, citing Taiwan Glass Industry Corp (台玻), where he serves as chairman, as a successful example of a traditional company seeking transformation through technology-driven opportunities.

Lin also warned of inflation risks from higher global commodity prices and imported inflation pressures.

The government should do more to help businesses cope with rising costs, as geopolitical conflicts continue to pose unavoidable risks to global commodity prices, he said.

Carbon fees should be delayed, as companies need more time to adapt to higher operating costs during the energy transition, he added.