TSMC signs 30-year deal to buy power from Taiwan offshore wind

In short: TSMC has agreed to buy all the electricity from a major offshore wind project near Taiwan for the next 30 years.

What happened

Taiwan Semiconductor Manufacturing Company, also called TSMC, signed a long-term power purchase agreement with Northland Power, a Canadian energy company. The contract covers 100 percent of the electricity produced by the Hai Long offshore wind project.

Hai Long includes three wind farm sites off the west coast of central Taiwan, in the Taiwan Strait. Northland Power said the project totals more than 1 gigawatt of capacity, which is a measure of how much power it can produce (think of it like the maximum flow a faucet can deliver). When fully running, it is expected to generate enough electricity for the equivalent of more than 1 million Taiwanese households.

Parts of Hai Long began sending electricity to Taiwan’s power grid in 2025. The project is scheduled to be fully operational by 2027.

Why it matters

TSMC’s factories use a lot of electricity, and that demand is expected to rise as more advanced chips are made for AI systems. The International Energy Agency reported that TSMC used nearly 10 percent of Taiwan’s total electricity in 2023, and other estimates suggest that could grow sharply by 2030.

At the same time, Taiwan has faced a tighter energy supply after Middle East conflict disrupted fuel shipments and reduced natural gas availability. Taiwan depends heavily on natural gas for electricity, and it imports most of its energy. Deals like this help TSMC lock in a steady supply and also support Taiwan’s push to expand wind power as an alternative to imported fossil fuels.

Source: Arstechnica