TAIPEI (TAIWAN) – Taiwan chipmakers have been truckloads of water for some of their foundries after the island increased restrictions on water supply. After being hit by a drought, this could add up to the chip supply worries, already affecting the global auto industry.
Some auto makers have already been left with no option but to cut down production. Taiwan has been receiving requests for help, amid the shortage of auto chips from countries including the United States and Germany.
Taiwan, a main platform in the global technology supply chain for giants such as Apple Inc, will set out on Thursday to further limit water supply for factories in central and southern cities where there are major science parks.
Water levels in several reservoirs in Taiwan’s central and southern region stand at below 20%, after being struck by months of scant rainfall and a rare typhoon-free summer.
Taiwan Economy Minister Wang Mei-hua told reporters on Tuesday, “We have planned for the worst. We hope companies can reduce water usage by 7% to 11%.”
With forecasts of limited rainfall for the months ahead, Taiwan Water Corporation this week said the island has entered the “toughest moment”.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), told, describing the move as a “pressure test”. The chip giant said its production has not been affected. Both Vanguard International Semiconductor Corporation and United Microelectronics Corp sealed contracts with water trucks and echoed the same opinion.
Vanguard said it has begun a drill to truck water to its facilities in the northern city of Hsinchu.
Taiwanese technology companies have long complained about a chronic water shortage.
