TSMC Signs 20,000 GWh Renewable Energy Joint Procurement Contract with ARK Power
HSINCHU, Taiwan, R.O.C, Apr. 21, 2023 – To coincide with Earth Day, TSMC (TWSE: 2330, NYSE: TSM) today announced that it has signed a 20,000 GWh renewable energy joint procurement contract with ARK Power (a subsidiary of ARK Solar Energy). The agreement enables TSMC suppliers and subsidiaries that would like to purchase renewable energy to be matched with ARK Power, who assists in assessing their electricity demand and planning the best blueprint for renewable energy adoption. Since March, TSMC suppliers have successively signed procurement MOUs and more than a dozen companies are expected to participate, helping to empower the local semiconductor supply chain to jointly reduce the industry’s carbon footprint.
TSMC is deeply committed to sustainable development and green manufacturing. After becoming the first semiconductor company in the world to join RE100 in 2020, TSMC is now pioneering the ESG innovation model of domestic renewable energy joint procurement, creating a platform to match renewable energy with industrial power consumption. Through the joint procurement model, participating suppliers are provided with electricity evaluation and planning services and are promised 20 years of long-term procurement in order to stabilize the joint procurement price and lower the threshold for TSMC suppliers and subsidiaries to adopt renewable energy.
The signed 1,000 GWh per year long-term renewable energy contract (signed for a 20-year term, 20,000 GWh in total) is equivalent to the annual electricity consumption of 250,000 households. TSMC will subscribe for 500 GWh per year and invite suppliers to jointly subscribe for the other 500 GWh per year. Altogether, this venture is expected to cut around 500,000 metric tons of carbon emissions per year.
"TSMC strives to co-exist and co-prosper with the environment. By driving low-carbon manufacturing, using renewable energy and increasing energy efficiency, we are on our way to fulfilling our commitment to reach the goal of net zero emissions by 2050,” said J.K. Lin, Senior Vice President, Information Technology and Materials Management & Risk Management. “Through this innovative joint procurement model for renewable energy, we join hands with our industry partners to promote a sustainable low-carbon semiconductor supply chain.”
"As a solar renewable energy development integrator, ARK Solar Energy expects to provide a total installation of 2GW of electricity within 3 years. By participating in this collaboration, we will enrich the sustainable value of renewable energy in the semiconductor supply chain, ” said Zeng Qing Cheng, President of ARK Solar Energy.” At the same time, through the design of an environmentally friendly fishery and electricity co-generation power plant, we not only diversify the use of land, but also optimize the breeding environment, creating a win-win situation for the green energy industry, the semiconductor supply chain and the farming industry.”
The renewable energy joint procurement contract signed by TSMC will enhance the business matching opportunities of renewable energy developers and promote the development of the domestic renewable energy industry. ARK Power uses the solar power plant of parent company ARK Solar Energy as its power source and provides TSMC participating suppliers and subsidiaries with services ranging from renewable energy adoption planning to power transfer, continuously moving toward the goal of a zero-carbon semiconductor supply chain.