TAIPEI (Taiwan News) — TSMC said Thursday it has begun construction of an industrial water reclamation plant in Arizona, scheduled to start operations in 2028.

The 15-acre facility will initially recycle 85% of its water, aiming for 90% or higher to achieve near-zero wastewater discharge, per CNA. The chipmaker says nearly every drop will eventually be reused in chip production.

TSMC explained that the plant will produce ultrapure water, essential for removing microscopic particles that can damage wafers, per UDN. The system is critical for advanced chips, such as the 4 nm silicon being built at its Arizona fab.

Rose Castanares, president of TSMC Arizona, said in a statement that Phoenix was chosen partly because of state and city officials’ planning, including a 100-year water supply strategy. She noted that water scarcity has long been a challenge in the region.

TSMC is committed to being a responsible corporate neighbor in how we use natural resources, particularly water, Castanares said, adding that the near-zero wastewater design underscores the company’s green manufacturing program.

TSMC operates multiple water treatment plants in Taiwan and, in 2022, became the first company to use industrial-grade reclaimed water in advanced chip production. The Arizona plant adapts this model to the region’s water quality, which contains higher magnesium and calcium than Taiwan.