‘Worst drought’ Taiwan cuts water supply to semiconductor factories…

Input 2021.03.25 08:55

Bloomberg reported on the 25th that Taiwan, facing the worst drought in decades, has cut its water supply to regions, including semiconductor manufacturing hubs, to prevent depletion of water reserves.

According to Bloomberg, the Taiwanese government issued a water shortage red warning in six years on the 24th and said it would cut water supply by 15% to two major industrial complexes in Taichung. These measures are expected to take effect on April 6.

Both the factories of TSMC, Taiwan’s leading foundry (made-to-order) semiconductor company, and Micron Technology are located in Taichung.

Semiconductor is an industry that requires a lot of clean water. Accordingly, if the drought in Taiwan is prolonged, it will inevitably disrupt semiconductor production. Recently, the world is already experiencing a shortage of semiconductors.

Moreover, the day before, when Intel of the United States announced that it will invest $20 billion to establish a foundry semiconductor plant in the United States, TSMC is entering a more difficult situation, Bloomberg said.

Taiwan’s Economic Minister Wang Mei-Hwa said, however, that the move was not enough to halt TSMC’s operations. This is because TSMC already has a large amount of industrial water. However, if such measures are prolonged, experts are convinced that TSMC will also be affected.