The ongoing drought in Taiwan has already affected the production of chips such as GPUs and DRAM as well as other components in the country, as we reported several times over the past few weeks. Apparently, the situation is getting worse as local authorities plan to start rationing water supply starting in April. For now, the production of computer chips and displays is proceeding as usual as companies like AU Optronics and TSMC are trucking water in and drilling wells, but the situation may get worse any time now.
Taiwanese authorities on Wednesday announced plans to reduce water supplies to industrial users in the central Taiwanese counties of Taichung, Miaoli, and Changhua by 15% from April 6 compared to usual usage levels, reports Nikkei Asia.
To reduce water consumption further, the authorities will suspend tap water supply in the said areas for two days a week, but those harsher restrictions only apply to the populace, and not industrial users. Meanwhile, the areas affected by the supply limitations will have to use other water sources, including water trucks, local water storage, and groundwater.
TSMC said that the new restrictions would not affect its operations in Taichung as it would increase the consumption of water from the tanker trucks. Furthermore, it is also running drills to get groundwater. Micron could not make any comments as the company is in its quiet period, reports Bloomberg.
"Like [Innolux], we also have signed contracts with water truck companies, but we see that as the last resort," said Paul Peng, chairman of AUO. "We are prepared. We have a water storage facility underneath each of our plants in Taiwan. Some of the plants have stored up to 10 days of water supply [for our use]."
