Taiwan MOEA Rejects 90-Day Fab Shutdown Warning, Citing 10% Power Reserve
Updated
Updated · 台北時報 · Jul 20
Taiwan MOEA Rejects 90-Day Fab Shutdown Warning, Citing 10% Power Reserve
3 articles · Updated · 台北時報 · Jul 20
Summary
Taiwan’s economy ministry said the island’s semiconductor supply chain can withstand disruptions, rebutting Pat Gelsinger’s warning that a China-induced power cutoff could idle fabs for 90 days and trigger damage worse than the Great Depression.
More than 10% operating reserve was maintained on 342 days last year, the ministry said, arguing Taiwan has adequate electricity supply and has diversified oil and gas sourcing through long-term contracts and spot purchases.
Two magnitude-7.3 earthquakes — in 1999 and 2024 — only temporarily affected some production lines, while most chipmakers kept operating; Taiwan also continued meeting global semiconductor demand during the COVID-19 logistics shock.
Power demand is still expected to rise 2.5% annually through 2035 on AI growth, and Taipower plans to harden the grid against outages, extreme weather and other regional risks.
Taiwan's chip industry powers the world but is critically energy-dependent. How long could the global economy actually survive a blockade?
With nations worldwide racing to build local chip fabs, is the era of Taiwan's undisputed semiconductor dominance nearing its end?
As Chinese AI models rival US leaders at a fraction of the cost, is the West's technological supremacy already crumbling?
2026 Semiconductor Supply Chain at Risk: Taiwan’s Energy Crisis and the Global Response
Overview
The report highlights how Intel CEO Pat Gelsinger’s warnings about Taiwan’s crucial role in the global semiconductor supply chain have reignited concerns over supply chain security. Ongoing geopolitical tensions between China and Taiwan, along with increased military activity and Beijing’s claims over the island, have amplified global anxieties about the heavy concentration of advanced chip manufacturing in Taiwan. Gelsinger warns that a blockade or disruption could devastate the world economy, with impacts greater than the Great Depression, since turning off a semiconductor fab leads to long recovery times. These risks underscore the urgent need for supply chain diversification and stronger energy infrastructure.