• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»How Water Scarcity Threatens Taiwan’s Semiconductor Industry
Finance

How Water Scarcity Threatens Taiwan’s Semiconductor Industry

September 20, 2024No Comments6 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
How Water Scarcity Threatens Taiwan’s Semiconductor Industry
Share
Facebook Twitter LinkedIn Pinterest Email

Taiwan has emerged as the world’s leading chip manufacturer, home to the most advanced fabrication facilities on the planet. The island produces over 60 percent of the world’s semiconductors and just under 90 percent of its most sophisticated chips. Yet, despite its global dominance, the industry has its kryptonite: water. 

Chip manufacturing is an incredibly water-intensive process. Just consider Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, whose Southern Taiwan Science Park facilities alone consume up to 99,000 tonnes of water daily. And that’s not counting the water used by its other facilities spread across Taiwan as well.

Semiconductor foundries rely on water for two key purposes: cooling systems and cleaning residue from silicon wafers. The cleaning process, in particular, requires “ultrapure” water, which is thousands of times cleaner than drinking water and free from any minerals, pollutants, or other contaminants that might damage chips. 

This dependence on water exposes a major vulnerability within the global semiconductor industry, especially considering 21st century climate trends. By 2030 and 2040, 40 percent of chip plants currently in operation, 24 to 40 percent of those under construction, and 40 to 49 percent of those announced since early 2021 will be located in areas of high to extremely high water stress risk. For Taiwan especially, seasonal droughts could jeopardize the chip industry’s long-term strength and future expansion, with the island’s already exhausted water supply only exacerbating the issue. 

Numbers-wise, Taiwan receives enough rainfall to meet current demand. However, irregular precipitation distribution ​​and the island’s steep terrain and swift currents make collecting and storing rainwater challenging. In 2005, Taiwan was classified as having the 18th lowest freshwater availability per capita among 146 countries.

See also  Ken Griffin Citadel bucks downtrend in September, up nearly 13%

In early 2021, Taiwan faced its worst drought since 1964. After a rare summer without typhoons and months of little rainfall, many of the island’s central and southern reservoirs fell below 20 percent capacity. Water scarcity was so extreme that it disrupted chip manufacturers just as the United States, Germany, and Japan were depending on Taiwan to supply automotive chips during a global chip shortage. 

In major chip manufacturing hubs across Taiwan – including Taoyuan, Taichung, Hsinchu, and Miaoli – plants were ordered to reduce water consumption by upwards of 15 percent. In response, manufacturers including TSMC, Vanguard International Semiconductor Corp., and United Microelectronics Corp. resorted to buying truckloads of water and drilling drought-resistant wells to maintain operations. Unfortunately, these were only temporary solutions, and the problem of water scarcity remains a pressing concern.  

Early last year, as Taiwan entered the second half of another major dry season, chip manufacturing hubs in Kaohsiung and Tainan – located at the southern end of the island, where droughts are most severe – once again reduced night-time public water pressure in anticipation of another dire water shortage.

The impact of water stress on Taiwan’s chip manufacturers is drastic. Inefficient water supply management could result in a 10 percent decline in TSMC’s output compared to its 2030 projection. As production capabilities expand and more complex processes are required to produce advanced chips, chipmakers will only become even more thirsty for this precious resource. 

From 2015 to 2019, TSMC’s total water consumption surged by an astonishing 70 percent. By 2036, Taiwan’s overall water consumption is projected to be 7.3 percent higher than in 2021, creating a daily supply deficit of 680,000 cubic meters. Even during the typhoon season, Taiwan will struggle to supply its chip industry with its most valued natural resource. And during dry periods, the shortage will be even more intense. 

See also  Stocks slide for third straight day as yields continue climb: Stock market news today

To make matters even more alarming, climate change threatens to bring longer and more frequent droughts. Taiwan’s reservoirs are heavily dependent on summer typhoons to replenish depleted water levels. With fewer typhoons passing through and longer periods without substantial rain, reservoirs across the entire island – not just in the south – will come under increasing pressure.

According to the Water Resources Agency, the volume of rainwater collected by Taiwan’s reservoirs thus far this year has only been 30 to 60 percent of the typical average. Experts predict that by the end of the century, the number of days without rainfall in central and southern Taiwan could increase to 50 percent, while rainfall in northern reservoirs may decrease by as much as 25 percent.

To address this looming concern, Taiwan’s chip manufacturers have taken numerous steps to mitigate the devastating effects of water shortages. TSMC, for instance, has pledged to reduce water consumption by 30 percent from 2010 levels by 2030 and has significantly increased wastewater recycling at its facilities. In September 2022, the manufacturer even launched its own water recycling plant in the Southern Taiwan Science Park, which supports its nearby chip facilities with 10,000 tonnes of water daily – a figure that is expected to increase to 36,000 by 2026.

Taiwan’s government has also ramped up its efforts, beyond basic supply restrictions on agriculture and industry. They have supported the construction of new water recycling and desalination plants, intensified reservoir dredging and reinforced the water pipe network, which was used to divert water from water-sufficient regions to chip manufacturing science parks during the 2021 crisis. 

See also  Dow Jones Futures: Bullish Market Trend, But Fed Meeting Looms; Here's What To Do Right Now

However, experts argue these efforts are insufficient and suggest Taiwan needs a fundamental shift in its strategy. Rather than continually exploiting supply to meet the rising demand of the chip industry, Taiwan should set demand limits based on its actual water availability. Additionally, Taiwan must promote drought-tolerant practices and diversify its water sources, especially in the agricultural sector, which claims responsibility for 70 percent of the island’s water consumption. 

It is also in Taiwan’s best interests to employ stricter water pricing policies to crack down on excessive water usage. This approach has already seen success. Starting in January, Taiwan added a surcharge on all water used beyond 9,000 cubic meters per month, which led to significant reductions in consumption at the Southern Taiwan Science Park.

Currently, Taiwan’s reservoir levels stand at near full capacity thanks to the typhoon season. However, Taiwan must not be lulled into a false sense of security. The Taiwanese government, agencies, and people must continue to implement comprehensive, integrated measures to prepare for prolonged dry seasons and combat insufficient water supply. Only then can Taiwan’s semiconductor industry continue to maintain its celebrated dominance well into the future. 

Ensuring the prosperity of Taiwan’s semiconductor industry is crucial. Its pivotal role in the global value chain gives the island unparalleled strategic leverage on the international stage, acting as a deterrent against a potential Chinese invasion. Taiwan must coordinate new water management strategies throughout the entire island and do so quickly if it wants to save its “silicon shield” from crumbling. 

Industry Scarcity Semiconductor Taiwans Threatens Water
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025

The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

April 17, 2025

Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

April 17, 2025

How China’s Companies Are Responding to the US Trade War

April 16, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Kemp Declines Special Session To Impeach Fani Willis Despite GOP Calls

August 31, 2023

Microsoft Bakes ChatGPT-Like Tech into Search Engine Bing

February 14, 2023

REPORT: Critics Say PR Firm Paid Them To Boost Movies’ Rotten Tomatoes Scores

September 7, 2023

Brazilian Reality TV Star Luana Andrade Dies ‘Suddenly’ at 29

November 12, 2023
Don't Miss

Short and Funny Sayings for a Happy Summer with Friends

Lifestyle May 9, 2025

I love the beach. Just looking at the calming sea to relax. Having fun in…

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,627)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

First Vaccine For Chikungunya—An Emerging Mosquito-Borne Threat—Nears After Promising Trial Results

June 12, 2023

WATCH: Riot Breaks Out in New York City – HUNDREDS of Crazed Youths Fight Each Other and Harass Drivers Before Social Media Star’s PlayStation “Giveaway” (VIDEOS) | The Gateway Pundit

August 4, 2023

Fireworks! Matt Gaetz Goes Toe to Toe With Maria Bartiromo Over Speaker McCarthy and GOP Budget Battle (Video) | The Gateway Pundit

September 24, 2023
Popular Posts

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.