ARTIFICIAL INTELLIGENCE and robots might not take over the world after all, because one finite resource essential to their production might run out long before any sci-fi invasion happens.
From appliances to smartphones to electric cars to AI, most technologies need a semiconductor chip to function.
A semiconductor chip is a thin, fingernail-sized square of silicon that looks like a tiny metallic tile, and inside it are billions of microscopic switches that work together to run everything from your phone to cars to supercomputers.
It comes in different types depending on its purpose, such as logic chips, memory chips, AI chips, power chips, communication chips, and microprocessors or CPUs.
THE CHIP GIANT
In the city of Hsinchu, Taiwan, lies the biggest manufacturer of semiconductor chips in the world: Taiwan Semiconductor Manufacturing Company Limited (TSMC).
In 2024, it reportedly captured 64 percent of the global market, dominating the industry while its closest competitor, Samsung Foundry in South Korea, lagged far behind at second with 12 percent.
Reports also say that in 2020, TSMC’s market value was equal to half the size of Taiwan’s entire economy.
Another report suggests that TSMC produces over 90 percent of the world’s most advanced semiconductors.
Safe to say, without TSMC, the tech industry wouldn’t be as thriving and advanced as it is today.
QUIET CONTROVERSIES
One of its clients, Apple, has faced backlash for allegedly running sweatshops in countries like China, reviving debates on the harms of capitalism and corporate responsibility.
But since TSMC mostly works in the background, manufacturing chips for major brands, it often escapes the spotlight on sustainability issues and climate harms.
While the use of massive amounts of water and energy, as well as contributions to the climate crisis, are technically public knowledge, discussions and pressure on semiconductor companies remain quieter than they should be.
HIGHLY WATER-RELIANT
In chipmaking, layers of different materials are built up and washed repeatedly using Ultra Pure Water (UPW) or water stripped of every mineral, gas, or pollutant that could damage the chip.
Turning normal water into UPW requires huge amounts of energy and creates significant wastewater.
It takes roughly 1,400 to 1,600 gallons of water to produce 1,000 gallons of UPW.
According to the Valuing Water Initiative, TSMC uses more than 150,000 tons of water every day.
Meanwhile, the World Economic Forum reports that an average chip manufacturing facility uses 10 million gallons of UPW per day, equivalent to the water consumption of 33,000 US households.
Aside from semiconductors, AI data centers also need water for cooling their servers.
AI’s projected water usage may hit 6.6 billion m³ by 2027, signaling an urgent need to address its water footprint.
TECH OVER CROPS
In 2020, Taiwan experienced abnormal weather. The country saw no typhoons and unusually low rainfall.
By 2021, Taiwan was in a severe drought, but instead of halting chip production (which would have caused massive economic losses), the government halted irrigation of farms so large chip factories could use the water.
Later, manufacturers were ordered to reduce water use by 15 percent, forcing factories to rely on reserves and purchase truck-delivered water.
Farmers also fear losing farmland to solar farms needed to power chip facilities.
Meanwhile, Arizona, home to several semiconductor factories, experienced its own severe drought, with the first-ever water shortage at the country’s biggest reservoir declared in April 2021.
WATER SCARCITY
About 1.1 billion people worldwide lack regular access to clean water, and 2.7 billion experience water scarcity for at least one month each year.
Inadequate sanitation affects 2.4 billion people, exposing them to diseases like cholera, typhoid fever, and other waterborne illnesses, while two million people, mostly children, die from diarrheal diseases annually.
According to a United Nations Environmental Report, nearly two-thirds of the world’s population experiences severe water shortages for at least one month a year. By 2030, almost half of the global population may face severe water stress.
To avoid such a fate, the report says water use must be “decoupled” from economic growth, meaning policies and technologies must reduce or maintain water consumption without sacrificing performance.
RISING DEMAND
With AI rapidly evolving, demand for chips is skyrocketing, and governments like the US and the European Union want a stake in the industry.
Both have passed legislation supporting domestic chip production. TSMC is already investing $12 billion in a factory in Arizona.
However, experts argue that building in drought-prone Arizona is a risky plan.
In 2022, the EU announced plans to increase Europe’s share of global semiconductor manufacturing to 20 percent by 2030, prompting TSMC and Intel to unveil new plants in Germany and Poland, with Intel later postponing its plans due to financial losses.
A study by the research firm Interface suggests that if Europe achieves the 20 percent target, its semiconductor emissions would increase eightfold, clashing with sustainability efforts like the Green Deal.
INNOVATIONS ON THE WAY?
In response, companies are exploring innovations to conserve water and survive both economically and environmentally.
TSMC has built a water treatment plant in Taiwan. Samsung cleans its wastewater and claims to reuse 35 percent of its water daily.
Tech company Gradient has developed wastewater cleaning processes that reportedly allow semiconductor plants to recycle 98 percent of the water they use.
However, a 2023 survey of 100 senior decision-makers in semiconductor companies found that 73 percent consider natural resources, including water, as the greatest environmental risk to their business.
In the end, water has limits, but corporate demand rarely does.