The Taiwan Power Company (Taipower, 台電) and several of the nation's largest semiconductor manufacturers remained at loggerheads yesterday over a request by the state-run utility that new foundries in the Tainan Science-based Industrial Park (台南科學園區 ) agree to power cuts if supplies to the park have to be disrupted.
Taipower spokesman Clint Chou (周義岳) said yesterday that the unprecedented request was necessary to offset the danger of wholesale power outages next year caused by a delay in the contracting of a 345-kilovolt high-voltage underground transmission line.
Chou said that earlier in the week Taipower had approached chipmakers in the park -- including Taiwan Semiconductor Manufacturing Corporation (TSMC 台積電) and United Microelectronics (UMC 聯電) -- to sign an affidavit agreeing to unannounced power cuts to their newer foundries in times of disrupted supply.
"If our transmission equipment functions properly and is not damaged by unforeseeable events like typhoons, then we will be able to meet the power requirements of the park," said Chou.
But if one of the four high-voltage transformers at the Lungchi extra-high voltage transmission substation that feeds power to the park goes offline, supply will be disrupted to the entire park, said Chou.
Under the terms of the affidavit, Taipower would install remote-controlled switching equipment to the power mains of fabs that are not yet up and running. In times of outage, it would be these newest foundries -- not established facilities -- that would see their power reduced.
Chou said the measure is aimed at avoiding a complete cut to the entire park.
But the request met with a strong response from TSMC, which, along with the Chi Mei Group (奇美集團), has refused to sign the affidavit.
A TSMC spokesman told the Taipei Times the request was "ridiculous" and voiced doubt as to whether any company with operations in the park would sign it.
"Taipower is the sole source of electricity in Taiwan and ... it is unacceptable if they cannot support industry needs," the spokesman said.
"A reliable and high-quality supply of power is the infrastructure of economic development."
While TSMC's No. 6 fab would be unaffected -- as it is already in operation -- its No. 14 fab currently under construction would have to succumb to the switching devices under the affidavit.
Tzeng said that the root of the problem was Taipower's mishandling of the bidding process for the supply of the underground cables. Earlier this year Taipower had offered the contract through public tendering, but was instructed by the Cabinet-level Public Construction Commission, which oversees government tenders, that prerequisites for potential suppliers of the 345-kilovolt line were not fair.
Chou defended the conditions, saying as it was the first time for Taiwan to undertake this kind of project, a cautionary approach should be taken. As result, tendering of the project will now begin next month, pushing back completion of the cable project to the end of next year.
Chou said that Taipower would continue to communicate with the chip makers in the park to resolve the issue and expressed hope that they would eventually back down from their refusal to sign the agreement after considering the alternative of possible massive outages.
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