Source: Economic Times India
Turns out, semiconductor manufacturing doesn’t just require multi-billion dollar factories and a lot of smarts, it also takes water. Gallons and gallons of it for every single chip. Better hope there’s no drought.Oops, too late.Just as world leaders, and auto companies, start to panic about a shortage of components, the global center of chipmaking is facing water restrictions that could impact Taiwan’s most important export. Not only is this 500 kilometer stretch of land at the edge of the Pacific home to now-famous Taiwan Semiconductor Manufacturing Co., but it also hosts factories run by Micron Technology Inc., United Microelectronics Corp., Vanguard International Semiconductor Co. and many more. They all make chips that go into everyday products like smartphones, games consoles and cars.In addition to dozens of earthquakes, Taiwan is subject to a handful of typhoons every year. These storms, known elsewhere as hurricanes, can be super destructive, causing floods and power outages. But they do have the upside of dumping tons of water into Taiwan’s reservoirs, typically during the months of June through September.Fortunately and unfortunately, no such storms made landfall last year and the impact is being felt right now, during Taiwan’s driest season.TSMC and the Taiwan government know that this is a problem.