TAIPEI (Reuters) – Taiwan chipmakers are shopping for water by the truckload for a few of their foundries because the island widens restrictions on water provide amid a drought that would exacerbate a chip provide crunch for the worldwide auto business.
Some auto makers have already been compelled to trim manufacturing, and Taiwan had obtained requests for assist to bridge the scarcity of auto chips from nations together with the United States and Germany.
Taiwan, a key hub in the worldwide expertise provide chain for giants resembling Apple Inc (NASDAQ:), will start on Thursday to additional scale back water provide for factories in central and southern cities the place main science parks are situated.
Water ranges in a number of reservoirs in the island’s central and southern area stand at under 20%, following months of scant rainfall and a uncommon typhoon-free summer season.
“We have planned for the worst,” Taiwan Economy Minister Wang Mei-hua instructed reporters on Tuesday. “We hope companies can reduce water usage by 7% to 11%.”
With restricted rainfall forecast for the months forward, Taiwan Water Corporation this week stated the island has entered the “toughest moment”.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker, this week began ordering small quantities of water by the truckload to provide a few of its services throughout the island.
“We are making preparations for our future water demand,” TSMC instructed Reuters, describing the transfer as a “pressure test”. The chip large stated it has seen no influence on manufacturing. Both Vanguard International Semiconductor Corporation and United Microelectronics Corp signed contracts with water trucks and stated there was no influence on manufacturing.
Vanguard stated it has began a drill to truck water to its services in the northern metropolis of Hsinchu.
Taiwanese expertise corporations have lengthy complained a few continual water scarcity, which turned extra acute after factories expanded manufacturing following a Sino-U.S. commerce struggle.
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