TSMC is against the ropes and its biggest problem is not competition: it is water

▤ Summary

TSMC faces a growing operational risk that has little to do with competition and everything to do with water availability. The article explains how semiconductor manufacturing depends on ultra-pure water and why advanced chip nodes consume even more of it. It highlights Taiwan’s drought history, TSMC’s reliance on tankers during shortages, and the strain this places on chip production. The piece also notes that TSMC, Intel, and Samsung are investing in recycling and dry-cleaning alternatives, but those measures do not remove the underlying dependency.

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