▲ The risk of water scarcity is discussed in relation to TSMC’s decision to build additional semiconductor factories. Photo of TSMC semiconductor plant construction site in Arizona, USA.
[비즈니스포스트] As Taiwan’s TSMC announces plans to increase the number of new large-scale semiconductor factories it will build in Arizona, USA, to three, risks associated with water scarcity are emerging again.
Since Arizona is a drought-prone area, TSMC’s and Intel’s efforts to reduce water use may not be sufficient considering effects such as climate change.
Fortune, an economic magazine, reported on the 9th that questions are mounting about the supply of water resources, saying, “TSMC’s semiconductor plant, which guzzles water, and Arizona, which experiences frequent droughts, seem like a pair incompatible.”
TSMC originally planned to build one new semiconductor foundry plant in Arizona, but after changing the plan twice, it decided to build a total of three production plants.
The size of the clean room where semiconductor production facilities are located at each of the three factories is twice the industry average, and is expected to use advanced microprocessing of 4 nanometers or less.
Semiconductors use a large amount of water resources because they go through processes such as cleaning using pure pure water that has been purified several times during the production process. Using advanced processes also increases water use.
In a recent report, the credit rating agency S&P Global emphasized that water supply could become a medium to long-term risk, saying that the amount of water resources currently used by the semiconductor industry is similar to that used by all of New York City.
Furthermore, Arizona is a region where frequent droughts occur from time to time for more than 10 years. Recently, this phenomenon has become more serious due to the effects of climate change.
Fortune cited the example of Arizona state authorities recently restricting real estate development plans due to a lack of groundwater, and evaluated the state as “one of the most water-scarce areas in the United States.”
Naturally, as TSMC ramps up its large-scale plant investment in Arizona, risks associated with water scarcity are sure to be addressed.
Moreover, since Intel is also expanding its semiconductor production plant in Arizona, the possibility of competition to secure water resources increases.
Fortune reported that TSMC and Intel are conducting various efforts, including increasing water recycling rates, in response to these risks.
TSMC sets a goal of achieving a 90% water recycling rate in its plants worldwide.
However, Fortune pointed out that skepticism about this plan is gaining ground, and even if the recycling rate of water used in the factory is increased, there will be no choice but to continue to supply some water resources from the Outside.
Intel also emphasizes that it recycles and uses 9 million gallons of water per day at its Arizona plant.
An official from the water resources authority in Phoenix, Arizona, said via Fortune, “It is clear that water resources are not infinite and could reach their limit at some point,” adding, “However, if the current plan continues, there is no possibility of facing the limit.”
However, as the amount of water required will inevitably continue to increase as semiconductor production expands, there is a growing expectation that it may be difficult to completely solve the water shortage problem in the medium to long term.
As climate change becomes more serious, the possibility that droughts will occur more often or for longer periods of time, accelerating the depletion of water resources, is constantly discussed.
Josh Lepaski, a professor at Memorial University of Newfoundland, said via Fortune, “Arizona’s water scarcity problem could become increasingly serious,” and added, “As semiconductor factories continue to operate, climate change will continue to progress. “
One day, the water supply situation may become serious enough to become a major problem.
S&P Global said in a report, “Water resource risk has the potential to become a variable affecting the business operations and credit ratings of semiconductor companies in the future.” Reporter Kim Yong-won
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