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Taiwan Ended Nuclear Phase-Out — So Why Is It Thinking About Nuclear Power Again? ⚡
Taiwan’s Energy Dilemma Shaped by Earthquakes, LNG Dependence, and TSMC’s Power Demand

Taiwan completed its nuclear phase-out by shutting down its last reactor in 2025.

But now it is debating nuclear power again because of LNG dependence, the risk of a Chinese blockade, and the surging electricity demand of its semiconductor industry.

Taiwan’s energy policy has become one of the most dramatic cases of change in Asia in recent years. After taking office in 2016, the Democratic Progressive Party (DPP) pushed forward a policy of gradually shutting down all nuclear power plants under the slogan of a “nuclear-free homeland by 2025.”

In fact, Taiwan brought nuclear power’s share effectively to zero by shutting down Maanshan Nuclear Power Plant Unit 2, the last remaining reactor, on May 17, 2025. But the reality that emerged afterward was not simple. The expansion of renewable energy moved more slowly than planned, the resulting power gap was filled by LNG and coal, and electricity demand led by the semiconductor industry has continued to grow.

1. Why Did Taiwan Choose Nuclear Phase-Out in the First Place? 🌏

Taiwan’s nuclear phase-out was driven by both political and safety concerns. After the Fukushima nuclear accident in Japan in 2011, debate over nuclear safety intensified across East Asia, and in Taiwan, where earthquakes are frequent, public anxiety over nuclear power also grew.

Taiwan, like Japan, lies along the Pacific Ring of Fire. That meant expanding nuclear power was not seen as just an electricity policy issue, but as something directly tied to earthquake risk, tsunami risk, and the problem of spent fuel storage and disposal. This became a major background factor behind anti-nuclear sentiment.

💡 Core Background

Taiwan’s nuclear phase-out was not simply an environmental policy. It was the result of a combination of post-Fukushima safety concerns, earthquake risk, and political symbolism.

2. What Energy Target Did Taiwan Set in 2016? 🔢

After 2016, the DPP government presented a 2025 power mix target of 50% LNG, 30% coal, and 20% renewables. In other words, the idea was to eliminate nuclear power and fill the gap with gas and renewable energy.

At the time, Taiwan had six commercially operable reactors, while the new Lungmen plant (Nuclear Power Plant No. 4) was nearly complete but had been suspended after political controversy.

Afterward, the six existing reactors were retired one by one from 2018 to 2025 in line with the expiration of their 40-year operating licenses. The final unit was Maanshan Unit 2, and it was officially shut down on May 17, 2025.

3. The Phase-Out Happened as Planned, but the Power Mix Did Not 📉

The nuclear phase-out itself proceeded on schedule. The problem was that renewable energy, which was supposed to replace nuclear power, did not expand as quickly as expected. As of 2025, Taiwan’s actual generation mix is broadly assessed at around 47–48% gas, 36–39% coal, about 11–15% renewables, and 0% nuclear.

In other words, the government’s original target of 20% renewables was not fully achieved, and the missing share was covered more heavily by LNG and coal.

📘 An Important Point

Taiwan’s real problem is not the phase-out itself, but the slow pace of expanding low-carbon power sources to replace nuclear energy. As a result, the power system has become more heavily tilted toward LNG.

4. So Why Is Nuclear Power Being Discussed Again? 🏭

There are three main reasons nuclear power has re-entered the debate in Taiwan. The first is energy security, the second is power system stability, and the third is rising electricity demand from the semiconductor industry.

The referendum held on August 23, 2025, reflected this shift in mood. The vote was essentially about whether the Maanshan plant, which had been shut down in May 2025, should be restarted. Among those who participated, 74.17% voted in favor. However, under Taiwan’s referendum rules, support from at least 25% of all eligible voters is required. Because the number of yes votes fell short of that threshold, the result did not gain legal effect.

In other words, public opinion itself has become more favorable toward restarting nuclear power than before, but institutionally, that did not mean an immediate restart was approved.

5. But Why Can’t Taiwan Easily Return to Nuclear Power? ⚖️

The biggest reason is still safety and social cost. Taiwan faces high earthquake risk, and the issue of spent fuel storage and disposal is also not easy to resolve.

On top of that, restarting a plant that has been offline for a long time is not simply a matter of flipping a switch. It requires safety inspections, regulatory approval, equipment repairs, fuel procurement, and the securing of operating staff. In reality, even if nuclear restart plans are seriously considered, they would inevitably require substantial time and cost.

New nuclear plants would be even harder. Taiwan weakened its related workforce and industrial ecosystem during its long period of pursuing nuclear phase-out, and public consensus also remains unstable. That is why, in practice, the current discussion is less about building new plants and more about the conditional restart of existing reactors.

🧠 Taiwan’s Dilemma

Even if nuclear power seems necessary, Taiwan cannot easily return to it because energy security concerns and nuclear safety concerns are both extremely large at the same time.

6. The Biggest Vulnerability After Phase-Out Is LNG Dependence 🚢

After the nuclear phase-out, LNG became the center of Taiwan’s electricity system. The problem is that LNG is not an energy source that is easy to store for long periods in the same way crude oil is. As of 2025, Taiwan’s government requires a minimum natural gas safety stock equivalent to 11 days of supply.

In other words, Taiwan’s power system is structured in a way that can come under pressure quickly if gas supply lines are disrupted. Moreover, Taiwan depends on imports for most of its natural gas, and the government itself explains that its reliance on imported natural gas is very high.

In this structure, the possibility of a Chinese maritime blockade or LNG supply disruptions originating in the Middle East becomes a very serious burden for Taiwan. The Strait of Hormuz, in particular, is a key route for global seaborne LNG and crude oil flows, so if that corridor is disrupted, importers like Taiwan can be affected immediately.

7. Why Does the Strait of Hormuz Risk Look Bigger for Taiwan Right Now? 🌊

As of March 2026, vessel traffic through the Strait of Hormuz has been severely disrupted by the effects of war in the Middle East, and Qatar’s LNG production and shipments have also been heavily affected. There have also been reports recently that some LNG carriers are changing course toward Asia instead of Europe.

However, one important point should be noted here. There are also exaggerated interpretations in the market suggesting that “Taiwan is about to run out of gas,” but Taiwan’s government says domestic supply for March and April is sufficient, and that LNG and oil inventories are also above the legal minimum. It has also announced that imports of U.S. natural gas will be increased starting in June 2026.

So it is difficult to conclude that a blackout is immediately around the corner. But structurally, it is clear that Taiwan is a country that is especially sensitive to LNG supply chain shocks.

8. Why Does the TSMC Story Always Come Up? 💻

The reason TSMC cannot be left out of Taiwan’s energy debate is that the company is not just a private corporation, but a core industry supporting Taiwan’s economy and security. Its electricity demand is also enormous.

According to various analyses, TSMC’s power consumption already accounts for a significant share of Taiwan’s total electricity use, and that share could become even larger by 2030. Some estimates suggest that around 2025, TSMC’s share could reach 12.5%.

The semiconductor industry requires stable electricity around the clock. So from Taiwan’s perspective, even if it reduced nuclear power, it still has to find a way to provide a large amount of electricity steadily and reliably, and that is exactly why the nuclear debate is re-emerging.

9. LNG Price Spikes and Competition for Spot Cargoes Are Also Intensifying 📈

After supply disruptions originating in the Middle East, Asia’s LNG spot market has tightened rapidly. There have recently been reports that Asian LNG spot prices (JKM) have surged sharply in a short period of time.

In this environment, importers such as South Korea, Japan, and Taiwan compete to secure spot cargoes even at higher prices. In fact, there have been reports that Asian countries, including Taiwan, are seeking alternative cargoes, and that some LNG carriers are changing direction toward Asia in search of higher prices.

So it is fair to say that Taiwan is moving aggressively to secure energy supplies. But claims such as “only a few days of supply are left” should be treated cautiously based on currently available high-confidence public information.

10. In the End, What Does Taiwan’s Case Show Us? 📌

Taiwan’s case shows that nuclear phase-out is not simply a matter of “turning off nuclear power and being done with it.” The key question is what replaces it, how reliably it can replace it, how cheaply, and for how long.

Taiwan succeeded in phasing out nuclear power, but the cost was greater dependence on LNG imports and greater geopolitical vulnerability. On the other hand, even if it wants to expand nuclear power again, it cannot decide easily because of earthquake risk and social conflict.

That is why Taiwan’s current energy debate is not a simple binary choice between “nuclear” and “non-nuclear.” It is closer to a high-difficulty decision that must simultaneously balance safety, climate goals, industrial competitiveness, and security.

📌 Today’s Economic Summary in One Line

Taiwan pursued its 2025 nuclear phase-out target after 2016 and shut down its last reactor in May 2025.
But because renewable energy did not expand as quickly as planned, the country’s power system has become more dependent on LNG and coal.
Because of blockade risk from China, the Strait of Hormuz variable, and TSMC’s rapidly growing electricity demand, Taiwan is once again rethinking nuclear power.

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Roots and Branches

Taiwan’s Energy Dilemma: Nuclear Phase-Out, LNG Dependence, and TSMC Power Demand

Taiwan Ended Nuclear Phase-Out — So Why Is It Thinking About Nuclear Power Again? ⚡
Taiwan’s Energy Dilemma Shaped by Earthquakes, LNG Dependence, and TSMC’s Power Demand