Taipei: The Ministry of Economic Affairs (MOEA) has defended the resilience of Taiwan's semiconductor supply chain, dismissing concerns raised by former Intel Corp. CEO Pat Gelsinger that a disruption to Taiwan's energy supply could devastate the global economy. According to Focus Taiwan, the MOEA stated that Taiwan collaborates closely with global semiconductor partners, and Taiwanese manufacturers have consistently increased production during past supply shortages to minimize disruptions to global supply chains. This response was prompted by Gelsinger's recent remarks on the All-In Podcast, where he warned that a China-induced energy disruption in Taiwan could have an economic impact surpassing the Great Depression. He emphasized that a shutdown of semiconductor fabs could result in a 90-day operational halt. The MOEA highlighted Taiwan's pivotal role in the global semiconductor and artificial intelligence supply chain, supported by its robust industrial infrastructure and well-integrated industrial clust ers. This integration enables Taiwan to respond effectively to supply disruptions. The ministry recalled that even after significant earthquakes, such as the magnitude 7.3 quake in central Taiwan in 1999 and another in Hualien in 2024, nearly all Taiwanese semiconductor companies maintained operations despite some temporary production line impacts. During the COVID-19 pandemic, which disrupted global logistics, Taiwan continued to meet international semiconductor demand, the MOEA noted. The ministry also pointed out the advantages of Taiwan's information and communications technology (ICT) industry, which benefits from a comprehensive and closely integrated supply chain, ensuring stable supplies to global markets. On the topic of energy security, the MOEA emphasized Taiwan's efforts to diversify oil and natural gas sources to mitigate supply risks amid geopolitical tensions in the Middle East. The government has secured stable energy supplies through a mix of long-term contracts and spot-market purchases. T he ministry highlighted that Taiwan Power Co. (Taipower) maintained an operating reserve margin of over 10 percent on 342 days in 2025, demonstrating the reliability of Taiwan's power supply. Looking to the future, the MOEA stated that the government has accounted for rising electricity demand driven by the AI boom, predicting an average annual growth in power consumption of 2.5 percent between 2026 and 2035. Taipower is set to accelerate efforts to enhance the resilience of the national power grid network, improving its capacity to handle unexpected incidents, extreme weather, and other regional risks.
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