14 DAY TRIAL // TSMC (Taiwan Semiconductor Manufacturing Co.) is by far the largest semiconductor manufacturer on the planet capturing almost 50 per cent of the process manufacturing market share, dominating by far its main competitors, GlobalFoundries and UMC.
However, since TSMC managed to secure a strong order from Apple of 16nm FinFETs, a strong demand of 20 nm from other manufacturers and the continuing demand for the older 28nm, and even less advanced chip fabrication in its 8-inch fabs. In other words, TSMC has its hands full, and because the mobile markets growing faster than ever, since China is switching to tablets and smartphones leaving PCs behind.
In this environment, TSMC is thinking about the possibility of generating electricity in-house by installing electric generating equipment at its factories or even building its own power plant, according to industry sources. Since orders of new process manufacturing fabs are going to grow steadily, especially the 16nm and even 10nm process manufacturing in 2016, the Taiwanese giant is facing a consumption increase of about 50% in 10 years as it migrates to more advanced technologies.
TSMC takes the matter in its own hands
However, Taiwan has serious power shortage problems, and since it cannot rely on the Taiwanese state anymore to provide electricity, it thinks of building its own power generators. The company appears to have already made inquiries with Taiwan's Ministry of Economic Affairs (MOEA) and government-owned Taiwan Power Company (Taipower) about the possibility of building its own power generators and get them regulated with the country's law.
Taiwan is apparently going through one of its worse power shortages in ten years, with its hydraulic power generating plants severely affected by drought and nuclear power plants cut due to annual maintenance.
In this scenario, TSMC urges the Ministry of Economic Affairs to speed up the liberalization of the country's power sector, and revise the Power Industry Law in order to allow companies to install their own power generators. TSMC doesn't necessarily need nuclear power unless there is no alternative.