Bloomberg: "Taiwan's TSMC to Use One-Eighth of Total Power in 3 Years... Samsung Electronics in Similar Situation"

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Seoyul] As advanced semiconductor processes develop, power consumption also increases, and TSMC is expected to consume one-eighth of Taiwan's total power consumption in three years.

On the 26th, Bloomberg reported that as the equipment used in semiconductor processes becomes more complex and larger, the global semiconductor industry could become an obstacle to countries' efforts to reduce carbon emissions.

For example, the extreme ultraviolet (EUV) lithography equipment required for cutting-edge semiconductor ultra-fine processes is as large as a bus and contains 100,000 components. As the equipment becomes this complex and massive, the power required per unit reaches about 1 megawatt (MW), which is ten times that of previous generation equipment. This equipment is produced only by the Dutch company ASML, and the price per unit exceeds $150 million (approximately 199.8 billion KRW).

However, Bloomberg explained that since there is no alternative technology that can be used for ultra-fine processes other than this power-intensive technology, the semiconductor industry could potentially hinder global carbon emission reduction efforts.

The place with the most of this equipment in the world is Taiwan's TSMC, the world's largest foundry company. TSMC owns more than 80 EUV lithography machines and is installing the latest versions. TSMC forecasts that its share of Taiwan's total power consumption will rise from 6% in 2020 to 12.5% in 2025, which means it will consume more electricity than Sri Lanka, which has a population of 21 million. In Taiwan, concerns are also being raised that TSMC's increasing power consumption could lead to energy shortages.

South Korea, home to competitor Samsung Electronics, is in a similar situation. Last year, Samsung Electronics' power consumption accounted for 3% of South Korea's total. Although Samsung Electronics owns fewer EUV lithography machines than TSMC, considering that Vice Chairman Lee Jae-yong personally visited the headquarters of Dutch ASML to procure equipment, Samsung Electronics' power consumption is also expected to increase significantly.

The problem is that both Taiwan and South Korea heavily rely on fossil fuels for power generation. Taiwan aimed to produce 20% of its power from renewable energy by 2025, but by the end of last year, the share was only 6%, leading the Taiwanese government to lower the target to 15%.

South Korea also depends on coal and natural gas for more than 60% of its power, with renewable energy accounting for only 7.5% last year. South Korea needs to raise this share to over 30% by 2030.

This content was produced with the assistance of AI translation services.