TSMC has strengthened its commitment to renewable energy in Taiwan with a new long-term power purchase agreement linked to the Hai Long offshore wind project. Northland Power announced on April 30, 2026, the signing of a corporate power purchase agreement (CPPA) that will allow the Taiwanese semiconductor manufacturer to acquire 100% of the generation capacity of the complex once the administrative procedures planned for late 2026 are completed.
This move comes at a time when the demand for advanced AI chips is skyrocketing, driving the industry’s energy needs. TSMC not only manufactures many of the world’s most advanced processors; it also operates some of the sector’s most electricity-intensive plants. The pressure is twofold: they need to produce more wafers for clients like NVIDIA, AMD, Apple, and major cloud providers, while also progressing toward their climate goals in an island heavily dependent on imported fossil fuels.
A 1 GW+ offshore wind farm off the coast of Changhua
Hai Long is located between 45 and 70 kilometers off the coast of Changhua, in the Taiwan Strait. The project totals 1,022 MW of gross capacity and is divided into three sites: Hai Long 2A with 294 MW; Hai Long 2B with 224 MW; and Hai Long 3 with 504 MW. Northland Power holds a 30.6% stake in the project, alongside Mitsui & Co., which owns 40%, and Gentari International Renewables, with 29.4%.
The new agreement expands the relationship initiated in 2022 between Northland and TSMC, which already covered Hai Long 2B and Hai Long 3. With the inclusion of Hai Long 2A into the new CPPA, TSMC will purchase all the energy generated by the complex. The contract will be valid for 30 years, a particularly significant timeframe in the energy sector because it provides revenue certainty for the developer and renewable supply security for the buyer.
For Northland, the deal improves the project’s economics and extends its revenue period. For TSMC, it ensures a local renewable source in a country where energy availability has become a strategic issue. Producing advanced semiconductors requires stable electricity, high-quality supply, and long-term planning. This is not just about buying clean energy to boost ESG reports, but about ensuring their plants can continue growing in an environment where electricity consumption will increasingly come under scrutiny.
The agreement also supports Taiwan’s efforts to bolster its offshore wind sector. The country has plans to make up to 15 GW of offshore wind capacity available to developers by 2035, as part of a diversification strategy aimed at reducing reliance on imported gas, coal, and oil. According to Enerdata, Taiwan is expected to auction an average of 1.5 GW annually between 2026 and 2035.
TSMC’s electricity consumption already impacts Taiwan
The scale of the agreement is better understood by considering TSMC’s energy consumption. The International Energy Agency’s report “Energy and AI” indicated that the company used over 20 TWh in 2023, nearly 10% of Taiwan’s total electricity. This is an exceptional figure for a single company and reflects the significant footprint of advanced chip factories on the island’s power grid.
The trend could accelerate. Data Center Dynamics cites estimates from S&P Global suggesting TSMC’s electricity use, which was around 8% of Taiwan’s total in 2023, could approach 24% by 2030 if the expansion of advanced manufacturing continues. The actual figure depends on factors such as process efficiency, investment pace, AI demand, and grid evolution, but it clearly illustrates the pressure Taiwan faces.
The issue extends beyond climate concerns. Taiwan relies on imports to meet much of its energy needs, and its electric system must support an industry critical to the global economy. TSMC’s chips power data centers, phones, vehicles, servers, AI accelerators, and defense systems. Any energy tension on the island has industrial, economic, and geopolitical implications.
In recent years, TSMC has set more ambitious renewable targets. In 2023, the company raised its renewable electricity consumption goal to 60% by 2030 and accelerated its pledge to reach 100% renewable energy globally by 2040. It also aims for net-zero emissions by 2050.
The Hai Long agreement adds to other major commitments. In 2020, TSMC signed a contract with Ørsted to buy 920 MW from the Greater Changhua offshore wind farm, and in 2021, it reached an agreement with WPD to develop over 1 GW of onshore and offshore wind energy. While these contracts alone don’t eliminate energy pressures at their factories, they demonstrate TSMC’s efforts to secure renewable supplies aligned with their growth trajectory.
AI makes energy a competitive factor
For years, TSMC’s competitive edge was primarily attributed to its leadership in advanced manufacturing, key clients, and ability to execute increasingly complex nodes. Now, energy availability is beginning to occupy a similar position in the conversation. Without abundant, stable, and cleaner electricity, there are not enough AI chips to sustain the growth of data centers.
The IEA estimates that data centers consumed roughly 415 TWh of electricity in 2024, about 1.5% of global consumption. By 2030, that number could more than double to 945 TWh, driven largely by Artificial Intelligence. Although this consumption happens across data centers worldwide, a significant part of the supply chain begins earlier — in factories producing accelerators, memory, and components essential for AI operations.
This underscores the importance of TSMC’s case. AI doesn’t just consume electricity during training or inference; it also entails enormous energy use in its manufacturing chain — EUV lithography, clean rooms, ultrapure water treatment, special gases, thermal management, and continuous operation of equipment. The more advanced the processes, the greater the industrial demands.
The agreement with Northland doesn’t automatically make TSMC fully renewable or solve Taiwan’s energy dependency, but it indicates a clear direction: leading chipmakers can no longer rely solely on market purchases of electricity. They need to commit to long-term contracts, support new renewable generation, and participate directly in energy planning in the countries where they operate.
For offshore wind developers, TSMC is an ideal customer: massive demand, strong financial backing, and a genuine need for long-term supply. For TSMC, offshore wind provides a local resource that helps diversify its power matrix and reduce exposure to imported fuels. The challenge will be integrating this intermittent generation with the constant needs of an industry that cannot afford power outages or fluctuations.
Taiwan faces a complex balancing act. It aims to remain the global hub for advanced chip manufacturing but must do so within an energy system under pressure. More renewables, energy storage, stronger grids, industrial efficiency, and perhaps a renewed debate on nuclear power will all be part of that conversation. Due to its size, TSMC will be one of the key players shaping the island’s energy future.
Frequently Asked Questions
What has TSMC signed with Northland Power?
TSMC has signed a 30-year corporate power purchase agreement to acquire additional electricity from the Hai Long offshore wind project in Taiwan.
What is the capacity of the Hai Long project?
Hai Long has a total gross capacity of 1,022 MW, distributed across Hai Long 2A, Hai Long 2B, and Hai Long 3 off the coast of Changhua.
Will TSMC buy all the energy from the project?
Yes. Once the administrative procedures are completed in 2026, TSMC will purchase 100% of the complex’s generation capacity.
Why does TSMC need so much energy?
Advanced semiconductor manufacturing requires large amounts of electricity for cleanrooms, lithography equipment, chemicals, cooling, and continuous production. The rising demand for AI chips further intensifies this need.
via: northlandpower