Commentary: Climate change puts global semiconductor manufacturing at risk

are the basic building blocks of microchips. These technological marvels are in everything from lightbulbs and toothbrushes to cars, trains and planes, not to mention the vast array of electronics that have become integral to many people’s daily lives.

The drought is bad enough that Taiwanese farmers are being paid to keep their fields fallow so water that would otherwise go to agriculture can be fed into semiconductor manufacturing plants. Taiwanese manufacturing plants have even had to resort to trucking water from one watershed to another to overcome shortages.

Both the US and Europe have announced major government funding for the semiconductor manufacturing industry, especially to bring back the facilities of companies that spent decades setting up manufacturing capacity outside of those regions. However, the manufacturing facilities being announced or under construction in the US and Europe are all located in regions that are already facing significant water stress.

US President Joe Biden gives a speech at Intel Ocotillo Campus on Mar 20, 2024 in Chandler, Arizona. Biden announced US$8.5 billion in federal funding from the CHIPS Act for Intel Corp to manufacture semiconductors in Arizona.

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