Due to severe drought, chip shortages may be even greater

Sandra Loyd

The global chip stock situation is no longer too rosy anyway (coronavirus and cryptographic mining are not doing too well) and exacerbates the problems that Taiwan is currently facing as a drought. , which the inhabitants have been experiencing for a long time. In addition, there are several semiconductor companies in the country and enough water is needed to make the chips every day, but there are indications that this could lead to serious problems in the near future.

As the drought worsens, the authorities a red alert has been issued for water supplies and a 15% reduction in the amount of water intended for industrial use will be made from 6 April. This is also particularly problematic as the restriction also affects regions where chip manufacturers are present, including TSMC and Micron. The former stated that the restriction would not affect the production process and would increase the amount of water transported by tankers, while the latter had not yet responded to the news.

According to the Taiwanese Minister of Economy, the drought has not yet affected the operations of TSMC and the other companies, but the situation may worsen after the introduction of the restriction outlined above. Incidentally, AUO, Winbond, Innolux, GlobalWafers, and Phison are also present in the country, and if all of these companies go to bed because of the drought, it could certainly have a serious impact on the chip shortage, and thus on GPUs, among others.

Of course, there is a good chance that many companies have water reserves, but hopefully things will recover in Taiwan soon.

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