French media Le Figaro recently reported on how the ongoing Middle East conflict is exposing structural vulnerabilities in Taiwan’s energy system, with potential consequences for its globally critical semiconductor industry. The report also quoted DSET’s Director of Energy Security and Climate Resilience Program Tsaiying Lu.
The report says that Taiwan imports approximately 97% of its energy, making it highly dependent on external supply. The disruption of liquefied natural gas (LNG) flows has already affected around one-third of its supply. Beyond energy, supply interruptions of key materials such as sulfur and helium are adding pressure to semiconductor manufacturing. These inputs are essential for advanced chip production, reinforcing concerns about downstream impacts on global technology supply chains.
The report further elaborates, although major firms have improved resilience since the COVID-19 pandemic—through measures such as supply diversification and helium recycling—rising costs and prolonged uncertainty continue to weigh on the broader industrial ecosystem, particularly smaller firms. If disruptions to shipping routes, including through the Strait of Hormuz, persist, Taiwan may face increased reliance on high-cost LNG spot markets and a potential return to coal-fired power generation, especially during peak summer demand.
DSET’s Director of Energy Security and Climate Resilience Program Tsaiying Lu highlights longer-term structural risks, noting that the real issue for LNG lies in the recent damage to Qatar’s Ras Laffan gas complex on March 18 and 19. She notes that according to QatarEnergy, repairs could take three to five years. This means that even if the conflict ends quickly, supply tensions may continue.
These developments underscore the urgency for Taiwan to strengthen energy security and supply chain resilience, including diversifying LNG imports and reassessing energy policy options, as geopolitical risks continue to intensify. DSET’s Energy Security and Climate Resilience Program will continue to follow developments in the Middle East and its impact on Taiwan’s energy resilience and the region.
