'Taiwan Faces "Worst Drought," Cuts Semiconductor Factory Water Supply by 15%'

TSMC "No Disruptions... Will Supply Water Using Water Tank Trucks"

[Asia Economy Reporter Ki-min Choi] Taiwan, experiencing the worst drought, has decided to reduce water supply to the central region where semiconductor factories are located.

According to Bloomberg and other sources on the 25th, the Taiwanese government issued a red alert for water supply for the first time in six years the day before. Some areas in central Taiwan are facing critically low water levels at their sources.

Accordingly, the Taiwanese government plans to cut water supply by 15% to two industrial complexes in Taichung County. These sites include Taiwan's TSMC, the world's number one foundry (semiconductor contract manufacturing) company, and the U.S. Micron factory. The semiconductor manufacturing process requires a large amount of clean water.

The water supply reduction will apply to all users in Taichung County and Miaoli County starting from June 6. However, Wang Mei-hua, Taiwan's Minister of Economic Affairs, explained that the reduction in water supply will not disrupt semiconductor factory production.

TSMC also stated in an email release that this measure will not affect factory operations and that TSMC plans to increase water supply using water tank trucks.

However, as semiconductor companies are increasing production amid the global semiconductor shortage, a prolonged water supply issue could have an impact.

Minister Wang stated that by the end of May, they will secure sufficient water reserves for technology companies to operate their factories.

[Image source=Reuters Yonhap News]

This content was produced with the assistance of AI translation services.