In early August, Taiwan Semiconductor Manufacturing Company Ltd (TSMC) announced a 20-year corporate purchase power agreement (PPA) with Orsted A/S, a Danish onshore and offshore wind energy provider, to offtake the renewable power from one of Orsted’s forthcoming wind farms off the coast of Taiwan. This is the largest ever corporate PPA within renewable energy, with TSMC offtaking approximately 920MW from Orsted’s offshore wind farm, contributing to TSMC’s goal to transition to 25% renewable energy power by 2030.
The deal comes shortly after Apple Inc., whose business accounts for a significant portion of TSMC’s revenue, set new goals to become 100% carbon neutral in its supply chain and products by 2030. The pressure from Apple was likely a contributing factor in TSMC’s decision to partner with Orsted.
Irrespective of Apple’s newly formed carbon neutrality goals, TSMC has long been heralded as a sustainability leader inside the semiconductor sector. The company has systematically decreased its use of water, emissions, and waste production since 2010 and designed its processes to minimize energy consumption. This latest move further supports the company’s sustainability goals and push towards decarbonization.
Based in Taiwan, TSMC accounts for roughly 7% of the electricity use in the country. The push to incorporate more renewable energy, therefore, impacts not only TSMC’s carbon footprint, but all of Taiwan’s.