Taiwan’s drought is an unexpected risk to consider for chip makers

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Drought in Taiwan puts the country’s chipping production at risk. Companies have been asked to save water now that there has been little rain for months. Chip makers like TSMC let trucks carry water to their various factories to ensure that production does not stop. The factories use a lot of water during the production of chips.

The companies insist that the supply of water per truck is a precautionary measure. For the time being, they can simply produce chips. Taiwanese chip makers have been complaining for some time about a shortage of water for their factories. This problem has become even more acute, as Taiwanese chip makers have increased domestic production in recent years as a result of trade tensions between the United States and China. Earlier, the Taiwanese companies moved the necessary production to the big neighbouring country.

The chip industry already has a shortage of capacity, which is currently mainly affecting the car industry. Several car manufacturers had to shut down their factories for some time.

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