German media Table.Briefings recently reported on Taiwan’s energy and water infrastructure as a foundation of the global AI supply chain, as Europe advances its ambitions for AI and technological sovereignty. The report also included analysis from DSET Energy Resilience Program Deputy Director Cartus Bo-Xiang You and Policy Analyst Chen-Yen Chang.
Table.Briefings reported that while Taiwan is best known for its leadership in semiconductor manufacturing, the AI boom has expanded its strategic role to include advanced packaging, AI server manufacturing, data centers, and the supporting infrastructure. As Europe invests in initiatives such as the EU Chips Act and AI Factories, much of the physical infrastructure for these efforts continues to rely on Taiwan’s industrial ecosystem, the report writes.
DSET Energy Resilience Program Deputy Director Cartus Bo-Xiang You told Table.Briefings that power demand from semiconductor and AI-related industries is projected to exceed five gigawatts between 2026 and 2030, with annual increases more than twice the pace observed over the past decade. You also added that the key challenge is not only generating sufficient electricity, but ensuring the grid can reliably deliver power to rapidly expanding AI and semiconductor clusters, particularly in northern Taiwan.
DSET Energy Resilience Program Policy Analyst Chen-Yen Chang emphasized that grid resilience has become one of Taiwan’s most urgent infrastructure priorities. He told Table.Briefings that grid bottlenecks and regional imbalances are the most pressing risks for Taiwan’s AI industry, particularly because even short disruptions can result in significant losses for semiconductor manufacturing.
Beyond electricity, the report also highlighted DSET’s research on water security as a growing concern. Climate change—including droughts, extreme rainfall, rising temperatures, and sedimentation—is placing additional pressure on both semiconductor production and power generation, underscoring the need for integrated infrastructure planning.
As Europe seeks to strengthen its semiconductor ecosystem and reduce strategic dependencies, the report concludes that Taiwan’s infrastructure resilience is central to the future of global AI development. Reliable electricity, water resources, and grid capacity will be essential for Taiwan’s competitiveness and for the technological resilience of democratic partners worldwide. DSET’s Energy Resilience Program will continue to follow related developments in future research work.
