On Friday, a senior industry official stated that while Taiwan’s chip sector is prepared to collaborate with the government to meet its 2050 net-zero target, the rapid growth in artificial intelligence demand necessitates accelerating the development of renewable energy sources.

Taiwan has started a significant drive for more renewable energy to meet its carbon neutrality goal. The country imports almost all the fuel it requires, primarily coal and natural gas. Senior Vice President Cliff Hou of TSMC (2330. TW), the largest contract chipmaker in the world, claimed artificial intelligence (AI) presented a chance that hasn’t been around in decades.

“Looking forward, how do we master a major trend such as AI?” stated Hou. “I think the entire Taiwan semiconductor industry—in our essence, our R&D and manufacturing, and our global layout—will undergo a comprehensive improvement and transformation.”

Hou, the chairman of the Taiwan Semiconductor Industry Association, stated during the organization’s annual conference in the chip capital of Hsinchu that reliable and renewable energy is essential to the industry’s growth. According to Hou, as Taiwan’s chip sector looks to capitalize on the AI potential, the association made four significant pleas to the government last month, one of which was for a steady supply of green energy.

“In terms of energy, we hope that the government can, in every aspect, more actively develop new energy sources and maintain the stability of supply to the semiconductor industry,” Hou said.

According to Hou, collaboration between the government and businesses is necessary to reach the target of net zero by 2050.

“But here we have encountered several challenges,” he stated. “Currently, our whole semiconductor industry’s demand exceeds the availability of net-zero energy. We anticipate that government action will hasten the creation of new energy sources.”

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) declared in 2021 that it intended to achieve net zero emissions by 2050, meeting President Tsai Ing-wen’s official goal of that year.

According to official projections, coal’s part in Taiwan’s power mix will drop below 30% by 2025, with LNG’s share increasing to almost half and renewable energy sources to a fifth.

Taiwan has recently drawn billion-dollar offshore wind investments, and chip manufacturers are eager to negotiate with developers.

On the fringes of the conference, Hou told reporters that chip makers are not just concerned about the availability of renewable energy but also about its affordability.

While AI will play a significant role in the semiconductor industry’s rapid expansion over the next ten years, GlobalWafers CEO Doris Hsu (6488. TWO) informed reporters that the company is encountering several difficulties as it grows. “Now, it is not enough to have energy; you must have green energy to compete globally,” Hsu stated.