Water consumption of TSMC 2016-2023, by user

In 2023, the Taiwanese semiconductor manufacturer TSMC consumed around 101 million metric tons of water. In the chip manufacturing process, water plays an integral role, and its high consumption volume can result in tensions with external stakeholders as well as a threat to the stability of production. 

Washing wafers and saving water

Water is used for washing the wafers after etching away excess material, revealing the silicon wafer circuits. Because small impurities can impact the chip's functionality, manufacturers need high quantities of highly purified water. To reduce water-related risks, TSMC has emphasized its determination to save water and increase the water recycling rate. According to the company, the volume of water saved doubled since 2016. However, due to the increase in chip demand, the absolute volume of water consumption increased regardless.

Competing for water

High demand for water and ongoing drought causes tensions with the surrounding community and threatens semiconductor production. In the south of Taiwan, the world’s leading semiconductor fabrication plants exist next to many of the region's farmers. After three years of drought, residents were subjected to water restrictions, and local rice farmers were barred from planting their crops. As chip manufacturers like TSMC expand their production facilities, the farmland of local producers becomes arid, conflicts arise about who has the right to the precious resource.