BY Dana Zhang
Amidst the recent military drills by Beijing around Taiwan in late May, it’s intriguing to see how the Taiwanese people are buzzing with excitement over the potential impact of artificial intelligence (AI) on their lives. This newfound enthusiasm was ignited by Nvidia, a Californian chip designer with deep roots in Taiwan, who boldly declared plans to transform Taiwan into the epicenter of its chip production. Nvidia’s focus on graphics processing units (GPUs), known for their efficiency and power in handling complex computing tasks, seems tailor-made for the demands of AI technology. It’s fascinating to see how Nvidia’s streamlined supply chain has made its GPUs indispensable for tech giants like Amazon, Google, Meta, Microsoft, and Oracle, propelling Nvidia into the big leagues of the tech world. Now, with Nvidia’s eyes set on Taiwan, it feels like the island’s chip manufacturing industry, which already leads the global industry by producing over 60% of the world’s semiconductors and over 90% of the most advanced ones, is on the brink of something big. But amidst all this excitement, I can’t help but wonder about the potential downsides for Taiwan.
The chip industry, despite its technological marvels, has a dark side when it comes to the environment. Companies like TSMC, Taiwan’s semiconductor powerhouse, consume massive amounts of electricity and water and generate hazardous waste. TSMC alone consumed almost 8% of all Taiwan’s electricity in 2023, a figure predicted to rise to 12% by 2030. Although TSMC has made strides towards sustainability, such as investing in renewable energy and water recycling, its relentless expansion to meet demand paints a less optimistic picture. Over the past three years, farmers in several cities have lamented how TSMC’s local factories have contributed to the scarcity of water crucial for their livelihoods. Yet, these concerns seem drowned out by the fervor surrounding AI.
Taiwan has also already found itself locked in a struggle to meet the basic needs of its populace in terms of energy and water. With over 99% of its energy requirements reliant on imports, EnergyTrend ominously warns of Taiwan teetering on the brink of collapse as the country’s backup energy capacity dwindles below 5%. Climate change, casting its shadow over the island, has disrupted the rhythm of typhoons, which serve as the primary water source. In the last three years alone, Taiwan has weathered the onslaught of two severe droughts. The dire situation lingers. In March, the National Water Resource Agency revealed that rainwater collection in reservoirs across Taiwan had plummeted to a mere 30-60% of the typical average.
For a nation already grappling with energy and water scarcities, extending a warm welcome to Nvidia’s expansion plans feels akin to embracing a double-edged sword. More concerningly, local governments that were complaining about the lack of electricity shifted their attitudes overnight, extending olive branches to Nvidia by promising a sustainable energy future, despite little change in the actual resources available.
While feminists have raised concerns about AI regarding data exploitation, algorithms, and software development, I also want to draw our attention to the impact of hardware sectors in AI development, particularly as many countries from the Global South are heavily involved in manufacturing. To address the multifaceted challenges of this AI monster, scrutinizing its body is equally important as scrutinizing its brain.