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Miners, the COVID-19 pandemic and freezing temperatures in Texas have added a drought in Taiwan. It can further affect the production of microcircuits.

Taiwan authorities intend to impose restrictions on water supply

One more problem may be added to the existing problems in the electronics market. The ongoing drought in Taiwan, which has already affected the production of GPUs, DRAMs and a number of other components, could affect the industry even more. 

Texas draught

Miners, the COVID-19 pandemic and freezing temperatures in Texas have added a drought in Taiwan. It can further affect the production of microcircuits.

From April, local authorities plan to impose restrictions on water supplies. In particular, for the industry in the central districts, the indicator will be reduced by 15% from April 6. At the same time, the production of semiconductor products requires huge volumes of pure water, that is, the restrictions will clearly affect the production of chips. In addition to the production of microcircuits, the production of panels for screens may also suffer. 

In these districts, there are factories AUO, Micron, TSMC and Winbond, that is, very large market players. True, TSMC has already answered that restrictions on the supply of water will not affect its production. Other companies are also actively looking for solutions to the problem, including drilling wells, but it is not yet clear how long the drought will last and what the water constraints will be over time.  

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