Taiwan drought to affect Apple, Tesla: Barron’s

Semiconductor sector, including TSMC, facing impact of drought

A water truck leaving a TSMC fab 

A water truck leaving a TSMC fab  (CNA photo)

TAIPEI (Taiwan News) — The threat of drought in Taiwan is likely to affect the supply of semiconductors for electronics giant Apple Inc. and carmaker Tesla, Barron’s financial magazine reported Wednesday (March 10).

Over the past few weeks, concern has been mounting that the lack of rain following a year without typhoons might endanger the production of chips by companies like Taiwan Semiconductor Manufacturing Co. (TSMC), which has ordered tanker trucks to quench its thirst for water.

The global electronics industry is already fighting a shortage, especially in chips for the automotive sector. A drought at this time would only worsen the situation, UDN reported Thursday (March 11).

According to Barron’s, TSMC’s Taiwan operations need 156,000 metric tons of water per day. However, the company has already done its utmost to reduce its water intake, including by relying on recycled water for 87 percent of its needs in 2019.

Government officials have said that until the end of May, there will be no water supply problems that prevent TSMC from functioning normally. If the drought persists, however, companies like Apple and Tesla might face shortages of essential parts, Barron’s reported.

Updated : 2021-04-12 01:10 GMT+08:00