TSMC Reaches to an Agreement of More Than 100 Water Tankers as Taiwan Drought Expected to Be More Worse

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epa05349568 A picture made available on 07 June 2016 shows a sign of Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker, in Tainan, south Taiwan, 26 May 2016. On 07 June 2016, TSMC Chairman Morris Chang told a shareholders' conference in Hsinchu, west Taiwan, that TSMC will reach 5-10 percent growth in 2016 despite weak global economy which is dragging down the semiconductor industry. Chang called the up-coming 7-nonameter manufacturing process a competition with two major players, TSMC and South Korea's Samsung. TSMC saw its 2015 revenues rise 10.6 percent and profits up 16.2 percent from 2014 respectively. EPA/DAVID CHANG

To deal with the water shortage in Taiwan’s Hsinchu province, the Taiwan Semiconductor Manufacturing Company has ordered 100 numbers of water tankers at a cost of 200 million Yuan. This step is taken because it is expected that the water shortage in Taiwan will be more worse in the coming months.

In the month of February, TSMC had ordered each tanker at a cost of $1000 with 20 tons of water. Liberty Times revealed that the 100 water tankers which TSMC has ordered right now might only be the start of the story. The previous report says the cost of a single water tanker is NT$30,000 which is nearly equivalent to 7,000 Chinese Yuan.

If we assume the cost of a single water tanker is NT$30,000 and TSMC has ordered 100 tankers, that should cost in total NT$3 million. Liberty Times also stated that the order is for ‘more than 100 tankers’, but to match the cost of NT$200 million, TSMC has had to order 6,667 numbers of water tankers.

It was reported in 2019 that TSMC’s daily water consumption during the year was 156,000 tons per day. One tanker contains 20,000 tons of water and to meet the daily requirement, TSMC needs nearly 10 tankers.

Ms. Mei-Hua Wang, Taiwan’s Minister of Economic Affairs cautioned the industrial users that the reduction in the three provinces could increase from 11% to 15%. According to the reports of Liberty Times, TSMC has agreed to an exclusive contract with a tanker supplier in Taoyuan city – located right beside the Hsinchu.

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