The American Chamber of Commerce in Taiwan released its annual white paper on June 10, 2025, directly pointing out one of Taiwan's most urgent economic challenges: energy supply stability. As Taiwan gradually phases out nuclear power and reduces coal-fired power generation, this has become a primary concern for foreign investors, particularly posing a risk of insufficient power supply for high-energy-consuming key industries such as semiconductors and AI.
Energy Structure Transformation Challenges and Industry Risks
The American Chamber of Commerce's 2025 white paper lists energy issues as a core concern. Taiwan's energy supply is facing structural challenges, primarily including the decommissioning of Nuclear Power Plant No. 3 (completely shut down in May 2025), and reducing coal-fired power generation to meet carbon reduction targets. Currently, there is a lack of concrete plans for new large-scale baseload power, coupled with global fuel supply fluctuations affecting gas-fired power generation and delays in some power projects, casting a shadow over overall power supply stability.
Taiwan heavily relies on imported energy, with over 97% of energy coming from overseas, particularly dependent on liquefied natural gas (LNG) and coal. This makes Taiwan more vulnerable to risks such as geopolitical blockades. The progress of renewable energy promotion also faces challenges. The original target of 20% renewable energy share by 2025 has been postponed to the end of 2026, and according to Ministry of Economic Affairs data, renewable energy power generation accounts for only about 11.6% by the end of 2024. After nuclear power plant decommissioning, it is estimated that by 2030, Taiwan will need to spend an additional $2 billion annually on LNG purchases, increasing energy cost pressures.
American Chamber of Commerce Warning and Investment Considerations
Dan Silver, Chairman of the American Chamber of Commerce, stated at the white paper release conference:
"Energy has been listed by American Chamber of Commerce members as the primary issue in the investment environment."
Dan Silver further pointed out that this situation is unprecedented. He emphasized that businesses are concerned about "whether electricity can be adequately supplied, whether pricing is transparent, and whether price changes can be notified in real-time," rather than the specific type of energy. Although 90% of surveyed members plan to maintain or expand their investments in Taiwan in 2025 according to the chamber's latest business confidence survey, the uncertainty of energy issues, especially with the increase in high-energy-consuming projects like data centers driven by AI development, has become a potential concern for businesses operating in Taiwan.
Policy Recommendations to Strengthen Energy Resilience
In response, the American Chamber of Commerce white paper also offers specific recommendations, urging the Taiwanese government to support renewable energy transformation by enhancing policy clarity, improving administrative efficiency, and perfecting the electricity pricing mechanism. Additionally, it suggests improving the operating environment for energy developers to maintain the market competitiveness of industrial electricity prices. In the long term, focusing on stable power supply, promoting market-oriented reforms, and developing transparent long-term plans will be key measures to strengthen Taiwan's energy security and resilience.
In conclusion, the stability of energy supply is crucial for Taiwan's sustainable economic development, particularly for its globally leading high-tech industries. The American Chamber of Commerce's annual white paper once again highlights the international business community's concern about Taiwan's energy future and their deep expectation for a stable and predictable investment environment. How Taiwan effectively addresses energy challenges will not only affect its industrial competitiveness but will directly impact its economic security and long-term strategic positioning.
