TSMC has started construction on an industrial reclaimed water plant at its Arizona site, with operations planned to begin in 2028.

The Taiwan-based chipmaker said the facility will initially recycle 85% of its water, aiming to increase the rate to 90% or more over time.

The plant will cover 15 acres and is designed to convert industrial wastewater into ultrapure water for use in chip manufacturing.

TSMC produces advanced chips, including 4-nanometer products, at its Arizona fab.

The company said the plant’s design will address local water conditions, such as higher magnesium and calcium levels compared to Taiwan.

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Water recycling improvements can’t keep pace with semiconductor demand growth

TSMC’s Arizona facility highlights a fundamental challenge facing the semiconductor industry: even aggressive recycling efforts struggle to offset surging water consumption from increased production.

Despite TSMC achieving 12% replacement of water resources with reclaimed water in 2023—more than doubling its 5% target—the company simultaneously increased its unit water consumption by 25.2% that same year1.

This reflects the industry’s broader water intensity problem, where semiconductor production requires up to 10 million gallons of ultrapure water daily, equivalent to the consumption of 33,000 households1.

The challenge stems from ultrapure water’s stringent requirements, which demand 1,400 to 1,600 gallons of municipal water to produce just 1,000 gallons of usable ultrapure water1.

Even with TSMC’s planned 90% recycling rate in Arizona, the facility highlights the industry’s recognition that efficiency gains alone cannot solve water sustainability as chip demand accelerates.

2️⃣ Semiconductor industry concentrating operations in increasingly water-stressed regions

TSMC’s Arizona investment demonstrates how the semiconductor industry is focusing on locations that face long-term water availability risks.

By 2030-2040, 40% of existing semiconductor facilities will be located in regions experiencing high or extremely high water stress1.

Recent Taiwan Semiconductor Manufacturing Co. developments