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Taiwan to Develop $545 Million Water-Desalination Plant Amid Soaring Demand from Chipmakers
Taiwan is set to develop and operate a €508 million ($545 million) water-desalination plant in response to escalating demands from its booming semiconductor industry. The Water Resources Agency of Taiwan awarded this pivotal contract to a consortium comprising CTCI Corp., Hung Hua Construction Co., and France’s Suez SA. The agreement includes a 15-year operation and maintenance clause.
Water-Intensive Chip Manufacturing
Taiwan’s significant role in the global technology sector, particularly in artificial intelligence and 5G networks, heavily relies on its semiconductor industry. However, producing these essential chips is a profoundly water-intensive process. This need for water has been putting immense pressure on the island’s resources, which has been further exacerbated by climate change.
Severe Drought and Water Rationing
In 2021, Taiwan experienced a severe drought, compelling officials to shut off irrigation across extensive areas of farmland to redirect water supplies to the chip industry. This move sparked anger among local communities. The new desalination plant, designed to produce 100,000 cubic meters of potable water daily, aims to alleviate some of these strains. It will cater not only to manufacturers but also to approximately 1.6 million residents of Hsinchu City.
Construction and Climate Challenges
Construction of the Hsinchu desalination plant is to commence this year, with an anticipated completion date by 2028. Taiwan's water supply predominantly depends on reservoirs replenished by rainfall. However, the companies involved in the project have noted that "climate change and extreme hydrological events have disrupted these patterns." The expansion of semiconductor factories, particularly in the Hsinchu Science Park, is expected to drive an even higher demand for water.
The strategic development of this desalination plant underscores a critical effort to sustain Taiwan’s semiconductor industry while also addressing the broader needs of the local population affected by climate-driven water shortages.
