Due to the global shortage of chips, some car manufacturers have already been forced to reduce production and several countries, including the United States and Germany, have turned to Taiwan for help in resolving chip shortages. .
Taiwan’s role is key in the global technology supply chain, and now, as of Thursday, the country will continue to restrict water supply to factories in cities in the central and southern part of the country, where there are many important plants.
In reservoirs in the central and southern regions of the country, water levels have fallen below 20% after infrequent rainfall in recent months and no typhoons in the summer.
We were prepared for the worst. We expect companies to be able to reduce their water consumption by 7-11 percent
Taiwan’s economy minister said Tuesday.
Although only moderate rainfall is expected in the coming months, Taiwan Water Corporation reported this week that the island has “entered the most difficult time.”
This week, Taiwan’s largest chip contractor, Taiwan Semiconductor (TSMC), began transporting water in water transport trucks to supply its facilities across the island.
We are preparing for our future water needs
The company told Reuters. The step was described as a “pressure test.” In addition, the company reported that the situation has so far not affected production. By the way, Vanguard International Semiconductor and United Microelectronics have taken a similar step and have reported that the situation has not been affected so far by production.
Vanguard also said it had started drilling in Hsinchu to supply water to its factories from there.
Incidentally, Taiwanese technology companies complain about chronic water shortages, which only worsened after factories increased production after the U.S.-China trade war.
Cover image: Maurice Tsai / Bloomberg via Getty Images