TSMC Factory Uses 99,000 Tons Daily
Major Industrial City Faces Lowest Rainfall in 30 Years Concern
Taiwanese semiconductor companies, including TSMC, the world's largest foundry, have started reducing their water usage from this month. Amid severe water resource depletion caused by climate change and growing concerns that the 'worst drought in a century' experienced two years ago could return, they have begun proactively turning off the taps.
According to Nikkei Asia and others on the 29th (local time), the cities of Kaohsiung and Tainan, where Taiwanese semiconductor companies such as TSMC and UMC are concentrated, have implemented water-saving policies from this month, including reducing water usage at semiconductor factories and lowering public water pressure at night. The Southern Science Park in Tainan recently requested companies within the complex to reduce water usage by 10%, and Kaohsiung also asked companies in local industrial parks to take similar measures starting from the 30th.
Water is an essential resource in semiconductor production processes, as it is used for cleaning and fine polishing tasks. TSMC alone uses up to 99,000 tons of water daily at its factory in the Southern Science Park. Therefore, semiconductor companies always verify whether industrial water supply is favorable when deciding where to build factories.
The problem is that Taiwan often faces difficulties securing water resources due to droughts. The worst drought in 2021 caused global semiconductor markets to plunge into chaos. At that time, the Taiwanese government employed various measures such as diverting agricultural water and stationing water trucks, but still struggled to meet semiconductor production demands.
Foreign media reported that since Taiwan is a semiconductor manufacturing hub, any disruption in semiconductor production there could have significant repercussions on the global market, prompting close monitoring by the United States and China.
Taiwanese companies expect conditions will not improve much this year either. Due to the effects of climate change, rainfall in major industrial cities is forecasted to drop to the lowest levels in 30 years. Additionally, summer typhoons, which have been a major water source for Taiwan, have been absent for four years since August 2019, likely due to climate change impacts.
As a result, foreign media reported that the water levels in Taiwan's five major reservoirs currently average only 32% (as of the 17th). Taiwan's Central Weather Bureau expects the severe drought conditions to ease around May.
With the severe drought persisting for several years, the Taiwanese government and major companies including TSMC are exploring various measures to store water.
TSMC told Nikkei Asia, "We have a phased emergency plan related to securing various water sources and are cooperating with the government and private organizations to save water and develop water resources," adding that measures such as reducing water consumption and recycling wastewater are also in operation. Taiwan's second-largest semiconductor company, UMC, explained that it has been operating a contingency plan since January, before the government's request, regarding its Tainan facilities.
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