Taiwan's semiconductor industry association has called on the government to build strategic reserves of helium and LNG, while also backing the restart of two nuclear reactors.
This urgent call stems directly from recent supply disruptions in the Middle East. Qatar, a major supplier, declared force majeure on LNG shipments, which also impacted the supply of helium, a critical gas for chip manufacturing. This event exposed a significant vulnerability for Taiwan, whose world-leading semiconductor fabs rely heavily on these imports. With only about 11 days of LNG reserves on hand, even a temporary disruption poses a serious threat to both the power grid and chip production.
So, how did Taiwan become so exposed? The answer lies in a combination of factors. First is its energy policy. Following the shutdown of its last operating nuclear reactor in 2025, Taiwan shifted its baseload power generation heavily toward natural gas. This made the country's power grid, which fuels the energy-intensive chip fabs, directly dependent on a steady flow of LNG imports.
Second, there's regional pressure. Neighboring countries like Japan and South Korea, which also rely on energy imports, maintain much larger strategic reserves. Japan has its Strategic Buffer LNG program, and Korea holds stocks well above its mandate. Compared to them, Taiwan's 11-day buffer appears thin, increasing the urgency for the government and industry to act to avoid falling behind in energy security.
Finally, a political window has opened for this policy shift. Even before the current crisis, Taiwan's government had begun the technical and legal review to potentially restart two decommissioned nuclear plants. This groundwork meant that when the semiconductor industry endorsed the idea, the conversation could quickly move from a debate about if it should happen to how it could be implemented safely and efficiently. This proactive stance is a crucial step to safeguard a cornerstone of the global technology supply chain.
- LNG (Liquefied Natural Gas): Natural gas that has been cooled down to a liquid state, which makes it much easier and safer to transport and store.
- Force Majeure: A clause in contracts that frees parties from liability if an extraordinary event or circumstance beyond their control prevents them from fulfilling their obligations.
- Baseload Power: The minimum level of demand on an electrical grid over a span of time, typically provided by power plants that can run continuously.