Taiwan's chip industry urges strategic stockpiling of helium and LNG

Facing significant challenges from escalating geopolitical tensions, particularly the Middle East conflict, the Taiwan Semiconductor Industry Association (TSIA) has urged the government to establish strategic reserves of critical inputs such as helium and liquefied natural gas (LNG) to ensure a stable supply for the chip sector, a cornerstone of Taiwan's economy.

TSIA also supports restarting nuclear power plants to help secure Taiwan’s energy supply.

TSIA calls for strategic reserves of critical inputs

According to Nikkei Asia, TSIA Chair Cliff Hou—who is also Senior Vice President of Taiwan Semiconductor Manufacturing Co. (TSMC), Taiwan's largest chipmaker—said Taiwan should learn from countries such as Japan and the United States in building large strategic reserves of critical inputs including helium and LNG.

“We have urged the government to diversify energy and critical input supplies to prepare for potential disruptions in the future. TSIA also supports the government's decision to reopen nuclear plants to secure a more stable energy supply, provided restart processes meet legal and safety requirements. A stable and adequate energy supply is a lifeblood for the development of the chip industry,” Hou said on April 8.

Energy policy shift and industry support

Hou said the association’s stance reflects the need for greater resilience in Taiwan’s supply chain. He noted that the chip industry’s support for nuclear energy is the first time it has done so publicly, despite the source being controversial.

TSIA’s position comes after Taiwan’s leader Lai Ching-te announced on March 21 that the government had directed Taiwan Power Company to begin administrative procedures to restart two nuclear plants. The move marked a significant policy reversal for the ruling party, which had planned to phase out nuclear energy.

Some major Taiwanese tech executives have also urged the government to restart nuclear energy. Pegatron chairman T.H. Tung—who supplies to Apple and Nvidia—said the restart would help safeguard Taiwan’s position in the technology supply chain amid the AI boom.

Current stock levels highlight supply-chain vulnerability

TSIA said Taiwan currently has limited buffers for key inputs. Taiwan has only about 11 days of LNG stock and no strategic reserves for other key raw materials such as helium.

The association warned that this situation poses a major challenge for Taiwan’s semiconductor industry, which ranks second in the world by revenue, behind the United States.

Geopolitical disruptions already visible, TSIA warns on medium- and long-term risks

Hou said disruptions in the chip supply chain caused by the Middle East conflict have begun to appear, though they remain under control.

“In the short term, all members of the association remain confident thanks to current inventories, but attention should be paid to medium- and long-term uncertainties,” he said.

TSIA also said Taiwan’s chip industry is likely to continue growing in 2026, but that Middle East tensions could cause unforeseen disruptions.

Broader concerns about Taiwan’s energy supply chain

Outside Taiwan’s industry groups, former Intel CEO Pat Gelsinger has also said energy is a weakness in Taiwan's supply chain.