State power relies on AI computing, electricity supply: Tech company head

Taipei, July 23 (CNA) Computing power, which relies on a sufficient electricity supply, is crucial when assessing a nation's strength, Pegatron Corp. Chairman Tung Tzu-hsien (童子賢) said at an artificial intelligence (AI) forum on Tuesday.

On the sidelines of a forum discussing how Taiwan can boost its information and communications technology (ICT) industry in the AI era, Tung told the media that computing power now defines how developed a country is.

However, using AI and manufacturing AI chips requires electricity, he said, noting that the stability, quality, and cost of the power supply could impact the development of a country's economy.

At the forum, Tung again raised the issue of energy, saying that every country has a unique industrial structure, "and among the advanced countries, [few countries] have about the same or higher electricity consumption per capita than Taiwan, with the United States being one [of the few]."

"The per capita power consumption in Japan and European countries such as Germany, which rely more on the service sector, is about half of Taiwan's," he claimed.

According to the energy administration's data, Taiwan consumed 276.52 terawatt-hours of power in 2023. That equals about 11,807 kilowatt-hours per capita, given the population is 23.42 million.

In 2022, the U.S. consumed 12,702 kWh per capita, while Japan logged 7,799 kWh and Germany 6,984 kWh, according to Statista.

The main reason for Taiwan's high power consumption is the industrial sector, which in 2022, "accounted for about 56 percent of Taiwan's consumption," Tung said.

He added that residential consumption that year was only about 18 percent.

According to the energy administration's report, the levels were about the same in 2023, with the industrial sector accounting for 55.3 percent, residential 18.6 percent, and 17.5 percent in the service sector.

"If the annual power consumption increased 2 to 2.5 percent, in three or four years it would be about 300 terawatt-hours. If there is a NT$1 difference in the cost of generating one kilowatt-hour, the total difference would be NT$300 billion," Tung said.

"NT$300 billion could be invested in many areas, including research, education, and healthcare," he added.

Tung did not elaborate on what could cause the cost rise in power generation, but he was likely referring to the increasing cost associated with stopping the use of nuclear power.

Tung has recently repeatedly stressed his support for nuclear power. Earlier this month he said Taiwan's nuclear plants have been working well for four decades and have lowered the cost of generating power.

He also said at that time that it would be a pity for a well-functioning facility, that would cost hundreds of billions of New Taiwan dollars to build today, to stop operating.

The two reactors in Taiwan's only operating nuclear plant -- the Third Nuclear Power Plant -- are scheduled to stop operating later this month and in May 2025 after four decades of use.

Tung's outspokenness about his support for nuclear has stirred much debate because he has recently been appointed by President Lai Ching-te (賴清德) of the ruling Democratic Progressive Party (DPP) as deputy convener of a newly established climate committee.

The DPP has a long-standing "no-nuclear" stance on energy.