Taiwan Industry Leader Calls for Nuclear Revival to Meet AI Power Demand

The Power Crunch Argument

Taiwan's industrial sector is mounting pressure to reconsider the island's nuclear phaseout as artificial intelligence infrastructure drives electricity consumption to new heights. Lin Por-fong, chairman of the Third Wednesday Club and Taiwan Glass Industry Corp, told members at the trade group's monthly gathering that the country needs both nuclear and renewable power to maintain industrial competitiveness.

The argument centers on cost differentials. According to Lin, nuclear generation runs at approximately NT$1 per kilowatt-hour, while the overall generation cost approaches NT$3. Solar power expenses remain elevated, and offshore wind projects have encountered both technical obstacles and financial strain among operators.

"Without a stable supply of electricity, there can be no industrial development," Lin said at the Taipei event.

Taipower's Balance Sheet Problem

Taiwan Power Co's financial position has deteriorated sharply, with accumulated losses reaching NT$376.4 billion at the end of June. Lin argues that neither electricity rate increases nor government subsidies will resolve the structural issue. Instead, he points to generation costs as the root problem.

The government-convened electricity rate review committee is scheduled to meet next month to decide whether to adjust rates or extend the current freeze. Taiwan has kept rates stable to limit inflationary pressure, but the policy has squeezed Taipower's margins as fuel and renewable energy procurement costs have climbed.

The trade group's position reflects broader concerns within Taiwan's manufacturing sector, which has historically enjoyed some of Asia's lowest industrial electricity rates. That advantage is eroding as the energy transition accelerates and demand from AI computing centers intensifies.

Renewable Transition Hits Headwinds

Taiwan set ambitious targets to expand renewable energy capacity while retiring its nuclear fleet. Implementation has proven more difficult than anticipated. Offshore wind development, a cornerstone of the strategy, has faced delays and cost overruns. Several operators have encountered financial difficulties, according to Lin.

Solar deployment has expanded, but intermittency and land constraints limit its contribution to baseload power. The island's geography and weather patterns pose additional challenges for renewable projects, particularly during typhoon season when generation drops sharply.

The timing of these challenges coincides with surging demand from AI infrastructure. Taiwan's semiconductor industry, already the world's most energy-intensive per unit of GDP, is adding computing capacity to support AI model training and inference. Power consumption is accelerating faster than renewable capacity can be brought online.

The Nuclear Economics Case

Lin's cost figures highlight the economic argument for nuclear power. At NT$1 per kilowatt-hour, nuclear generation would significantly undercut the blended cost of Taiwan's current energy mix. The island operates three nuclear plants, two of which are scheduled for decommissioning under the current phaseout plan.

Reversing that policy would require political will. Public opinion on nuclear power remains divided following Japan's Fukushima disaster in 2011, which catalyzed Taiwan's phaseout decision. However, industrial voices are growing louder as electricity constraints threaten competitiveness.

The Third Wednesday Club represents major manufacturers and has considerable influence in economic policy debates. Lin's comments signal that the business community is prepared to challenge the energy transition timeline if grid reliability and costs continue to deteriorate.

Wage Policy Divergence

Lin also addressed minimum wage policy at the gathering, supporting an increase in the baseline but calling for different standards for domestic and migrant workers. Taiwan's minimum monthly wage is expected to rise above NT$30,000 next year, up from NT$29,500.

He argued that domestic workers should receive higher pay based on performance and employment conditions, effectively decoupling the two labor categories. The proposal is likely to face opposition from labor advocates and migrant rights groups.

Lin acknowledged that wage increases are inevitable amid strong economic growth but questioned whether traditional industries can absorb higher labor costs while facing other headwinds. Labor authorities are scheduled to review the minimum wage next month.

What Comes Next

The electricity rate review committee's decision next month will test the government's willingness to shift costs to consumers and industry. If rates remain frozen, Taipower's losses will continue to mount, potentially forcing fiscal intervention. If rates rise sharply, inflation concerns will resurface.

The nuclear debate is unlikely to resolve quickly. Any policy reversal would require legislative action, environmental reviews, and public consultation. In the meantime, Taiwan's AI ambitions and industrial base will compete for limited grid capacity, with renewable projects racing to close the gap.