Taiwan’s Drought Is Creating Concerns for Chip Production at TSMC and Micron

Image: TSMC

Taiwan continues to suffer the effects of its worst drought in 56 years, despite strong demand in the semiconductor manufacturing sector. The combination of weather conditions such as less rainfall and the absence of a typhoon making landfall in 2021 has led to the current dilemma. The 24th. The situation came to a head in March when the government declared a red alert due to the many dangerously low water reservoirs on the island. This is the first time in six years that such a warning has been issued. The water supply of two science parks in Taichung was reduced by 15%. Both TSMC and Micron have manufacturing facilities.

Image: Bloomberg

Economy Minister Wang Mei-Hua said the reduction in supplies would not affect businesses yet. TSMC delivers water to its manufacturing facilities by tanker and plans to increase deliveries to avoid production interruptions. Its headquarters is located further north, in Hsinchu, and is therefore not subject to the new restrictions. Micron commented on the results of the new measures, which were released on 6… The Commission did not comment on the measures, which are scheduled to take effect on April 1.

This comes at a time when the technology industry is placing higher demands on wafer production, leading to wafer fabs running near full capacity. Despite the growth in production, delays have occurred in sectors ranging from automotive to GPU manufacturing. The upcoming monsoon in May should improve the situation as TSMC faces new challenges from Intel and Samsung who are building new foundries.

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