Nvidia supplier TSMC grapples with a water shortage challenge amidst surging chip demand

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07 March 2024, 02:20PM

In BriefTSMC and other chipmakers are facing water shortages due to the increasing demand for advanced processing technologies.
Chip complexity directly correlates with rising water consumption, with over a 35% increase seen with the transition to 16-nanometer processes.
TSMC's crucial role in producing 90% of the world's advanced chips for AI and quantum computing highlights potential risks to the global tech supply chain.
TSMC's expansion includes opening chip plants in Japan and investing $40 billion in Arizona to meet the surging demand for semiconductors.
The collaboration between Apple and TSMC for next-gen 2nm chips, slated for production by 2025, showcases ongoing advancements in the semiconductor industry.

Implications for Chip ProductionIncreasing risks of water shortages as chipmakers advance to more sophisticated processing technologies.
Direct correlation between chip complexity and water consumption levels.
Potential prioritization of high-margin advanced chip production over less profitable mature chips in the face of water limitations.
TSMC's Global ExpansionMarket TrendsInvestment OpportunitiesCollaboration and Future ProspectsDisclaimer: This content was partially produced with the assistance of AI tools and was reviewed and published by Benzinga editors. Photo via Wikimedia Commons.

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