Taiwan’s Drought May Affect Semiconductor Industry; New Taipei Offers Wastewater Recycling

TSMC
Photo by Peellden via Wikimedia Commons

While there may be some relief in sight with the coming rains, Taiwan is still feeling the effects of the ongoing drought with water restrictions and rationing across the island.

The New Taipei City government will soon implement Stage 3 water restrictions, according to UDN. The government will set up wastewater recycling services, including public toilets, to further conserve water. The measures should save between 336 and 486 tons of water per month. The wastewater recycling is not for drinking, but is to be used to flush toilets and water plants.

Some industries may also feel the pinch of water rationing in Taiwan. The semiconductor industry, including Taiwan Semiconductor Manufacturing Co. (TSMC) and Hon Hai Precision Industry Co., could see reduced output due to the water restrictions. The lower semiconductor manufacturing output could affect Apple’s supply chain as the company prepares for sales of the Apple Watch, which goes on sale April 24 in nine countries including China and Hong Kong. The smartwatch will be released in Taiwan at a later date.

Despite the possible downturn in the semiconductor sector, the Taiwan Stock Exchange opened higher this morning, up more than 43 points as of 10:00. Test Research, Inc. is up almost 7% at 10:00 on a 77.9% year-on-year increase in revenue in March as it provides semiconductor testing equipment for the iPhone and Apple Watch.

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