How should we evaluate Taiwan region's Q1 2026 GDP growth of 13.69% year-on-year?

1. Cross-strait imports and exports from January to September increased by 30.3% year-on-year, totaling USD 301.18 billion. 2. Mainstream Taiwanese institutions—including the Chung-Hua Institution for Economic Research—estimate that the semiconductor industry chain contributed nearly 60% of GDP growth, serving as the core engine behind this surge. 3. Taiwan’s semiconductor industry was primarily driven by technocratic officials appointed during Chiang Ching-kuo’s administration (e.g., Sun Yun-suan and Li Kuo-ding), along with overseas experts such as Dr. Pan Wen-yuan and entrepreneur Morris Chang. The DPP played virtually no role in the industry’s foundational development, as it had not yet been established. 4. One major impact of the DPP on the semiconductor sector has been its policy to halt nuclear power plants, pursuing the ‘nuclear-free homeland’ vision. However, just one year later, the AI boom triggered severe electricity shortages across Taiwan—prompting plans to restart nuclear power generation. The cycle of shutting down and restarting nuclear facilities is estimated to have wasted several billion dollars of taxpayer money.

The DPP’s 'anti-nuclear' dogma has collapsed; Lai Qingde announces plans to restart nuclear power plants.

At the outset of the U.S.–Iran conflict, the DPP authorities pledged that energy prices would remain unchanged for one month. Unfortunately, they misjudged the Middle East situation—originally expecting the conflict to end swiftly following decisive U.S. targeted strikes. Yet by late March, missile exchanges continued unabated, indicating no imminent resolution. Taiwan now faces a genuine energy crisis: its electricity generation remains heavily reliant on fossil fuels, and its oil and gas supplies are overwhelmingly imported from the Middle East. With Middle Eastern shipping lanes effectively blocked, oil tankers and LNG carriers cannot depart, causing critical shortages of hydrocarbon resources. Short-sighted policies led the authorities to use public funds to subsidize state-owned energy giants Taipower and CPC Corporation—yet mounting pressure has forced them to abandon this approach. Amid dual domestic and international pressures, Lai Qingde—the so-called 'brilliant strategist'—has opted to restart nuclear power generation. The DPP authorities’ decision serves two purposes: First, the energy shortage is real, and restarting nuclear power is necessary to calm public anxiety over electricity supply. Anti-nuclear groups—long-standing political allies of the DPP—were caught completely off guard by this reversal. Their future political trajectory warrants close observation. On August 23, 2025, Taiwan held a referendum on extending the operational lifespans of Nuclear Power Plants No. 2 and No. 3. Roughly 25% of voters opposed the extension, while about 4.3 million supported it and 1.5 million opposed it. However, due to low voter turnout, the referendum failed to meet the legal threshold and thus became invalid. Taiwan’s democratic machinery appears stuck in neutral—its referendum process yielded no result. By 2026, under mounting pressure, the DPP authorities were compelled to unilaterally restart nuclear power generation—a deeply ironic outcome. Crucially, restarting nuclear plants involves numerous procedural hurdles: official approvals, plant safety inspections, and reassignment and retraining of personnel—all requiring at least one year. This reveals a profoundly makeshift, inconsistent, and erratic policymaking apparatus. Second, Lai Qingde intends to use nuclear policy to rein in the rising intra-party 'Ying faction'.

Taiwan Semiconductor Industry Group Backs Government Review of Nuclear Power Restart

20 hours ago

The Taiwan Semiconductor Industry Association supports assessing nuclear power plant restarts to ensure stable electricity supply for chipmakers like TSMC, aligning with the government's open stance on energy sources.

reuters

2026-10-29

Taiwan Semiconductor Industry Group Backs Government Review of Nuclear Power Restart

Taiwan Semiconductor Industry Group Backs Government Review of Nuclear Power Restart

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