Key facts
- SCG CEO Thammasak Sethaudom believes the current energy crisis is a structural shift, not a temporary shock.
- Geopolitical tensions involving Iran and the US are affecting energy exports through the Strait of Hormuz.
- Companies are advised to diversify energy sources and make long-term investments to hedge against instability.
- TSMC intends to increase chip production prices by up to 10% starting in 2027.
- Rising raw material and manufacturing equipment costs are driving TSMC's planned price hike.
Asian businesses must prepare for a persistent reality of energy shocks, according to SCG CEO Thammasak Sethaudom. Speaking at the Nikkei Asia Forum APAC 2026 in Bangkok, Sethaudom argued that the current energy crisis is a structural shift requiring long-term responses, rather than a temporary disruption. He highlighted worsening tensions between Iran and the United States, which are impacting the Strait of Hormuz, a critical energy export route to Asia. Sethaudom stressed the importance of companies diversifying their energy sources and making long-term investments, as a quick restoration of global stability appears unrealistic.
This backdrop of rising global energy prices and inflationary pressures is further compounded by news from Nikkei Asia's tech team. TSMC, the world's largest contract chipmaker, plans to increase prices for its chip production services by up to 10% starting in 2027. This move is attributed to rising costs for raw materials and manufacturing equipment. TSMC's customer base includes major tech giants like Nvidia, Apple, and Google. The potential increase in semiconductor prices could have significant ripple effects across the entire technology industry, particularly impacting AI services.
Nikkei Asia's newsroom is increasingly discussing the potential impact on Asian economies and businesses if the situation in the Middle East does not normalize this year, emphasizing a need for realistic responses to an unstable world.