Taiwan’s worst drought in decades deepens chip shortage jitters

Taiwan’s worst drought in decades deepens chip shortage jitters

In the foothills of Taiwan’s mountainous spine, reservoirs are running dry as the island experiences its worst drought in decades – a crisis that risks deepening an already acute global semiconductor shortage.

Taiwan is home to some of the world’s biggest and most advanced high-tech foundries, a linchpin of a global US$450 billion industry that provides the computing power for essential devices, but is extremely water-intensive.

The coronavirus pandemic sparked a global run on microchips as consumers snapped up electronics – causing a dearth that Taiwan’s microchip factories were struggling to plug even before the drought hit.

Those foundries are already running at full capacity trying to meet demand.

But the sudden lack of rain is making a bad situation worse for a manufacturing process that uses billions of gallons of water a year to stave off contamination of its products.

Source: Taiwan’s worst drought in decades deepens chip shortage jitters

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