TSMC Threatened by Iranian Crisis: Is AI at Risk?

The Iranian Crisis Disrupts the Energy Sector

The tense situation in Iran has led to a significant increase in oil prices, a key element for the artificial intelligence sector. The Strait of Hormuz, through which 20% of the world's oil passes, has become a critical hotspot. Concerns are particularly acute in Europe and Asia, the latter being heavily dependent on hydrocarbons from the region.

Impact on Taiwan and South Korea

The blockage of the Strait of Hormuz has major consequences for countries like Taiwan and South Korea, which play a crucial role in the semiconductor industry. According to a report from Barclays shared by Ctee, energy disruptions could intensify, threatening not only the cost of oil but also the industry's ability to maintain a stable supply of electricity and raw materials.

Challenges for TSMC

Despite Taiwan's oil reserves, primarily dedicated to petrochemical applications, the country remains dependent on daily supplies for its electricity production. Its liquefied natural gas reserves cover only 11 days of consumption, which could pose a problem if the crisis persists.

TSMC, which alone consumes 10% of the national electricity, may not be able to meet its order schedule. This would force its major clients, such as NVIDIA and AMD, to adjust their supply forecasts, directly impacting the development of the infrastructure necessary for AI. Such a scenario could lead to a detrimental domino effect for the entire industry.