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Ominous signs of a lack of chips: too little water

Ominous signs of a lack of chips: too little water

Due to the global chip shortage, some carmakers have already had to cut production, and many countries, including the United States and Germany, have turned to Taiwan to help address the chip shortage.

Taiwan’s role is fundamental in the global technology supply chain, and now, as of Thursday, the country will continue to restrict water supplies to factories in cities in the central and southern parts of the country, where there are so many important factories.

In reservoirs in the central and southern regions of the country, the water level has fallen below 20 percent after rare rains in the past few months and there have been no hurricanes in summer.

We were prepared for the worst. We hope companies can reduce water use by 7-11 percent

Taiwan’s economy minister said on Tuesday.

While only moderate rains are expected in the coming months, the Taiwan Water Corporation said this week that the island has “entered its most difficult moment.”

Taiwan Semiconductor (TSMC), the largest chip contractor in Taiwan, began transporting water on water trucks to supply its facilities across the island this week.

We are preparing for our future water needs

The company said Reuters to me. The step is described as a “pressure test”. In addition, the company informed that the situation has not affected production so far. Incidentally, Vanguard International Semiconductor and United Microelectronics have taken a similar step and reported that the situation has not been affected by production yet.

Vanguard also said it began drilling in Hsinchu to supply its plants with water from there.

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Incidentally, Taiwanese tech companies have long complained about chronic water shortages, which became more acute after factories increased production in the wake of the US-China trade war.

Cover photo: Maurice Tsai / Bloomberg via Getty Images

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