TSMC Expected to Use Nuclear Power and Its Impact

TapTechNews May 20th news, the tech media wccftech reported that TSMC is expected to use nuclear power to ease the electricity pressure in the current process of manufacturing chips.

The current Minister of Economic Affairs, Guo Zhihui, believes that nuclear energy is a clean energy, and members of the Executive Yuan have shown the intention to amend the current law. According to the data released by the power company TaiPower, the proportion of nuclear power in Taiwan's energy structure is less than 7%. Guo Zhihui said that if the plan to promote nuclear power is supported by the public, the regulation on the proportion of nuclear energy in the island's power structure will be changed.

TapTechNews reported in March this year that the leading foundry TSMC will consume more than 30 billion kWh of electricity this year, and will be the only semiconductor company applicable to a 25% electricity price increase. According to the calculation, the impact of this electricity tariff adjustment on TSMC's gross profit margin is about 0.14%.

TSMC said that it respects the relevant electricity price adjustment decision, and the long-term gross profit margin target remains unchanged at more than 53%. For reference, the gross profit margin of TSMC in the fourth quarter of last year was exactly 53%.

In addition, TSMC also said that it has cumulatively achieved 13% energy savings in 2022, and the annual electricity savings has increased by 700 million kWh. TSMC is gradually increasing the usage of renewable energy, which has currently exceeded 12%, and the overseas subsidiary aims to achieve all-renewable energy operation.