Taiwan Semiconductor Electricity Consumption Hits Record High on AI Demand
- Electricity consumption by Taiwan's semiconductor industry topped 4.5 terawatt-hours in September, marking a record high driven by stronger-than-expected demand for artificial intelligence, the Taiwan Research Institute reported Oct.
- Nationwide electricity consumption by high-voltage and extra-high-voltage industrial users rose 1.76 percent year-on-year in September, according to the Taiwan Research Institute.
- The semiconductor industry outpaced the broader manufacturing sector significantly.
Electricity consumption by Taiwan’s semiconductor industry topped 4.5 terawatt-hours in September, marking a record high driven by stronger-than-expected demand for artificial intelligence, the Taiwan Research Institute reported Oct. 21. The milestone reflects rapid technological development and rising global needs for cutting-edge chips, advanced packaging, and high-performance computing components.
Industrial Power Use and Semiconductor Growth
Nationwide electricity consumption by high-voltage and extra-high-voltage industrial users rose 1.76 percent year-on-year in September, according to the Taiwan Research Institute. Figures show that manufacturing sector consumption increased 1.96 percent over the same period.
The semiconductor industry outpaced the broader manufacturing sector significantly. Power consumption within chip manufacturing climbed 11.55 percent year-on-year, pushing the sector back into double-digit growth. The economic monitoring indicator for the power industry stayed at a red reading, signaling robust activity for the 18th consecutive month.
Supply Chain Expansion and Annual Projections
Strong production across the high-tech sector has gradually spurred investment demand in other domestic industries. That momentum has boosted exports, production, and corporate investment, supporting an estimated economic growth rate of 12.6 percent for September, the Taiwan Research Institute stated.
The institute forecast that the semiconductor industry’s total annual electricity consumption will exceed 50 terawatt-hours this year. Artificial intelligence-related business opportunities are expanding beyond high-end chips into servers, equipment, materials, and key components, creating a ripple effect across the supply chain.
Contraction in Chemical Materials and Textiles
While high-tech manufacturing booms, other traditional sectors continue to face headwinds. The chemical materials and textile industries both registered blue monitoring readings in September, signaling ongoing contraction driven by separate market pressures.
The chemical materials industry remains constrained by global petrochemical overcapacity and a slow recovery in demand. Meanwhile, the textile industry deals with weak international end-market demand and intense price competition, which continue to depress orders and factory production.