Taiwan puts energy security at heart of AI ambitions as President Lai outlines green transition push

President Lai Ching-te (賴清德) pledged stronger investment in clean energy and grid resilience as 460 exhibitors gathered in Taipei to showcase technologies aimed at meeting the soaring electricity demands of AI while accelerating Taiwan's transition toward net-zero emissions.

Energy transition takes center stage in Taipei

The three-day Energy Taiwan and Net-Zero Taiwan exhibitions opened on Wednesday (Oct. 14) at the Taipei Nangang Exhibition Center, bringing together nearly 1,400 booths and nine national and regional pavilions in a demonstration of the growing convergence between energy security, technological innovation and industrial competitiveness.

Jointly organized by the Taiwan External Trade Development Council (TAITRA) and SEMI's Green Energy and Sustainability Alliance (GESA), the Oct. 14–16 event features technologies spanning solar and offshore wind power, energy storage, smart grids, carbon management and green finance.

International participation reached a record high, with 115 exhibitors from abroad, a 16% increase from last year’s number, making up one fourth of the total 460 exhibitors.

The gathering comes as Taiwan confronts a consequential challenge: securing sufficient, reliable electricity for its semiconductor and AI industries while meeting increasingly stringent international decarbonization requirements.

President Lai pledges investment and stronger energy resilience

Addressing the opening ceremony on Oct. 14, Lai underscored the growing importance of decarbonization to Taiwan's economic competitiveness, adding that increasingly stringent emissions requirements across international supply chains could have direct consequences for businesses and their decision-making.

Lai said companies must incorporate net-zero objectives into their business decisions, as their ability to reduce emissions would affect not only future orders but also Taiwan's standing in global markets.

Outlining the government's response, he reiterated Taiwan's targets to reduce greenhouse gas emissions by 28% by 2030 and 38% by 2035, with a margin of 2 percentage points in either direction, both relative to 2005 levels, under Taiwan’s Comprehensive Carbon Reduction Action Plan completed last year.

Lai also highlighted the country's newly implemented carbon-pricing framework, noting that the first round of carbon-fee declarations and payments had been completed in May.

Revenue generated through the mechanism would be directed toward supporting industrial decarbonization and technological innovation, he said.

To mobilize investment in the transition, the government has established an NT$10 billion (approximately US$310 million) Taiwan Green Growth Fund aimed at attracting private capital into net-zero industries.

Lai further outlined plans to commit an additional NT$100 billion over the next eight years to help micro, small and medium-sized enterprises (SMEs) pursue digitalization and decarbonization.

Turning to energy security, Lai acknowledged the mounting electricity demands associated with AI development and underscored the importance of maintaining a reliable power supply as Taiwan's industries undergo structural transformation.

He pointed to the expansion of Taiwan's installed renewable-energy capacity from 4.7 gigawatts in 2016 to 25 gigawatts, while noting that the country ranked fifth worldwide in cumulative offshore wind power capacity.

Looking ahead, Lai said the government would continue developing diversified renewable-energy sources, expanding energy storage, improving energy efficiency and strengthening the electricity grid to bolster energy resilience while advancing its net-zero ambitions.

Industry players target AI's growing energy appetite

Beyond the government's policy commitments, exhibitors demonstrated how surging electricity demand from AI is reshaping investment priorities and commercial strategies across Taiwan's energy industry.

Delta Electronics unveiled its prefabricated solid-state transformer (SST)-based direct-current power solution for the first time, showcasing an 800-volt DC system designed to improve power conversion efficiency and streamline electricity distribution for next-generation AI data centers.

The company said shipments of samples and small-volume deliveries of SST solutions had collectively exceeded 100 units this year, although the 800-volt data-center application remains in customer testing and validation for its international client.

Delta also exhibited its solid oxide fuel cell (SOFC) technology, with trial production scheduled to begin by the end of 2026. Designed to provide on-site electricity generation, the technology could help data centers and industrial facilities reduce their dependence on conventional grid infrastructure.

Formosa Smart Energy, meanwhile, announced plans to accelerate the second-phase expansion of its battery manufacturing facilities at the Changhua Coastal Industrial Park.

The company said it aims to begin production at the expanded facilities in May 2028, bringing its total annual battery-cell manufacturing capacity to approximately 7–7.5 gigawatt-hours.

J&V Energy Technology showcased its expanding portfolio of renewable-energy generation, storage and electricity trading businesses, alongside the exhibition debut of Cloud Leopard Supercomputing, a specialized subsidiary established this year in order to focus on building and managing AI data centers.

The company said it aims to leverage its existing energy infrastructure and management capabilities to enter the AI data center infrastructure market, which it deems to be the next stage of growth momentum.

Together, the exhibits illustrated a broader transformation in Taiwan's energy sector, as companies seek opportunities not only in renewable electricity generation but also in the infrastructure, storage technologies and sophisticated power-management systems needed to sustain the expansion of AI computing.

International cooperation meets industrial transformation

At the venue on Oct. 14, TAITRA Chairman James Huang Chih-fang (黃志芳) underscored the historical relationship between technological progress and energy innovation, describing sustainable electricity supplies as indispensable to Taiwan's future industrial development.

Huang noted that this year's exhibitions brought together technologies and solutions spanning solar and wind power, energy storage, energy efficiency, green electricity and energy management. With multiple international pavilions drawing participants from across the global energy and net-zero industries, he said the event also served as a platform connecting Taiwan with partners throughout the Asia-Pacific region and beyond, fostering cross-border collaboration in pursuit of a more sustainable energy future.

GESA Chairman Lucas Lin (林雍堯) similarly emphasized the need to reconcile expanding electricity consumption with grid resilience and long-term decarbonization.

For Taiwan, the challenge extends beyond developing additional sources of clean electricity.

As AI infrastructure expands and international customers demand lower-carbon supply chains, the country's industrial trajectory will increasingly depend on whether its energy system can deliver reliability, affordability and sustainability simultaneously.