A lone crane bird glides over a tranquil rice paddy, the gentle trickle of water a stark contrast to the humming industrial giants just a few kilometers away, Al Jazeera reports.
This is Hsinchu, a city near Taipei, the unlikely epicenter of the global semiconductor industry, often dubbed the “Silicon Valley of the World.” While picturesque rural scenes persist, a growing tension exists between Taiwan’s booming high-tech sector and the island’s environmental sustainability.
Taiwan dominates the global chip market, with Taiwan Semiconductor Manufacturing Company (TSMC) holding a commanding 64% share. This industry is an economic juggernaut, contributing a staggering 25% to the island’s GDP. Yet, this success story is increasingly overshadowed by sustainability concerns. The production of semiconductors is an energy-intensive process, guzzling water and electricity and emitting greenhouse gases. TSMC alone consumes approximately 8% of Taiwan’s total electricity.
The conflict is becoming palpable. In 2021, during a drought, the government prioritized water supply for chip factories, halting irrigation for farmers. Now, concerns are mounting over the potential encroachment of solar farms, needed to power these factories, on valuable farmland.
While water usage has been a past point of contention, the focus has shifted towards energy consumption, exacerbated by the Artificial Intelligence (AI) boom. Chips manufactured in Taiwan power the AI revolution, but this increased demand is driving Taiwan’s chip factories into overdrive.
Taiwan’s struggle lies in its slow transition to renewable energy. Despite a 2016 target to reach 20% renewables by 2025, the island still relies heavily on fossil fuels, with over 80% of its energy coming from gas and coal. Offshore wind projects are lagging due to strict localization rules, hindering progress in building a domestic wind energy industry. Solar farm development faces resistance due to land disputes with farmers.
Chia-wei Chao is trying to bridge this gap with pilot projects, enabling farmers to install solar panels on their land without abandoning farming. He hopes to rebuild trust and promote a combination of agriculture and renewable energy.
The need for a sustainable solution is pressing. Apple, a major buyer of TSMC chips, has set a 2030 target for its suppliers to use 100% renewable energy, a goal that seems distant given current trends.
Taiwan isn’t alone in its struggles. The US and EU are facing similar challenges as they strive to boost domestic chip production. New chip factories in the US are being built in drought-prone regions, and the EU could see its semiconductor emissions increase eightfold with its expansion goals.
Adding to the environmental concerns are the greenhouse gases emitted during the manufacturing process. Gases used in etching processes, like CF4, have a significantly higher global warming potential than CO2.
As the global thirst for AI and semiconductors grows, Taiwan finds itself at a crossroads. The island must balance its economic dominance with a commitment to sustainable practices, ensuring that its technological prowess doesn’t come at the expense of its environment.
