Taipei, April 4 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) on Tuesday reiterated plans for comprehensive water treatment and recycling facilities in Arizona, amid reports the contract chipmaker could fall victim to "water politics" in the drought-affected U.S. state.
In a statement, TSMC said it planned to construct a water recycling facility to meet the needs of its advanced wafer fabs in Phoenix, adding that it would also build a comprehensive waste-water treatment system to reduce consumption and increase efficiency.
The contract chipmaker's statement came following a March 31 report in the U.S.-based financial weekly Barron's, which speculated that TSMC could face competition for water in Arizona from agricultural users and nearby Native American tribes.
In addition, the report said, U.S. rival Intel Corp.'s advanced fabs in Arizona are expected to put added pressure on TSMC's water needs.
Citing an estimate from Phoenix officials, Barron's claimed that TSMC could require up to 40,000 acre-feet of water a year if it builds planned six fabs in Arizona, enough for 160,000 homes.
However, TSMC said it had been in close contact with officials in Phoenix since the initial planning stages for its Arizona fabs to ensure sufficient water resources.
In December 2022, TSMC announced plans to expand its investment in Arizona to US$40 billion from the original US$12 billion.
As part of the expansion, TSMC said it would build a second fab using its advanced 3 nanometer process after the first using the 4nm process.
According to the chipmaker, the 4nm fab and 3nm fab, currently under construction, are scheduled to start mass production in 2024 and 2026, respectively.
International news outlets have reported TSMC is expected to build up to six fabs under the Arizona investment plan.
TSMC said that, to its knowledge, the authorities in Phoenix have been keen to invest in water-related infrastructure in recent years to create a sustainable supply.
TSMC added that Phoenix, which can draw on sources including the Colorado River, the Verde River, the Salt River, and underground aquifers, has been designated by the state of Arizona as having a 100-year supply of water.
Using its sophisticated water treatment technologies, the Taiwanese chipmaker said that the standard of wastewater released from its fabs in Phoenix will go beyond the standard required by Arizona regulations.
On April 1, TSMC opened an overseas operations office to supervise fabs under construction in Arizona and Japan's Kumamoto Prefecture with an aim to support the chipmaker's global expansion and ensure high efficiency at its overseas operations.
The overseas office has a core management team which covers a wide range of areas such as operations, product quality and reliability, business planning, material management, information technologies, financial and legal affairs, and human resources, according to TSMC.
In Japan, TSMC is building a plant in Kumamoto, using the company's 12nm, 16nm and 22nm processes as well as 28nm specialty technology, with commercial production expected to start in 2024.
