Taiwan's worst drought in decades impacting crucial technological sector

The worst drought in more than half a century has driven parts of Taiwan to implement water rationing and even shut off water in some areas. Not only is the drought taking its toll on key industries such as agriculture, but it is also hitting the technology sector notably hard.

When thinking of drought, what comes to mind for many is low-water levels in large bodies of water and parched agricultural fields. While that is true of the current drought in Taiwan, the large technology sector that calls Taiwan home is also struggling to deal with the water shortage.

Taiwan is home to some of the world's largest and most advanced microchip factories in the world, according to Tech Xplore, a news organization that covers the technology industry. Manufacturing microchips is a very water-intensive process that uses billions of gallons of water each year to protect products from contamination.

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The Taiwan Semiconductor Manufacturing Company (TSMC), located in Taiwan is responsible for producing more than 90 percent of the world's most advanced microchips, according to The New York Times.

With the ongoing drought, the Taiwanese government has imposed water rationing for more than 1 million households in central Taiwan and has turned off water in some areas for two days a week. Irrigation has been halted on about a fifth of Taiwan's irrigated land and farmers have been given incentives by the government not to grow crops this year.

According to the Times, officials in Taiwan are calling this the worst drought in more than 50 years.

Taipei and Taichung City each reported below-normal precipitation during 2020. Taipei, located in northern Taiwan, reported just 50 percent of the typical rainfall for the year. Taichung City, in central Taiwan, received 70 percent of its yearly rainfall.

The Standardized Precipitation Evapotranspiration Index (SPEI) drought monitor shows all of Taiwan in a significant drought. (SPEI)

Normal yearly rainfall is 64.77 inches (1645 mm) in Taipei and 40.34 inches (1025 mm) in Taichung City.

Below-normal rainfall has continued for each of these cities through the beginning of the year. So far this April, Taipei has reported just 0.09 of an inch (2.2 mm) of rain, while Taichung City has recorded just 0.06 of an inch (1.6 mm).

Normal rainfall for the month of April is 6.06 inches (154 mm) in Taipei and 3.23 inches (82 mm) in Taichung City.

Kaohsiung City, located in the southern portion of the island, reported above-normal rainfall in 2020, with 51.10 inches (1298 mm) falling compared to normal (44.62 inches/1133 mm). However, rainfall totals so far this year have been well below normal. Around 2.51 inches (64 mm) of rain has been reported this year, compared to 11.08 inches (281 mm), which typically falls between January and April.

This water rationing extended into the tech sector as well with the countries three major science parks, home to many leading tech companies including TSMC, having had to cut water usage by 15 percent.

According to the BBC, the Baoshan No. 2 Reservoir was at only seven percent of its capacity in recent days, the lowest it has ever been. This particular reservoir is one of the primary water providers for Taiwan's semiconductor industry.

TSMC has had to truck in water from other parts of the country in order to meet its needs, though up until now the company told the Times that the drought has not impacted production.

Chiang Ming-lang, director of the Water Resources Agency's northern region, takes photos of the Baoshan second reservoir with low water levels during an island-wide drought, in Hsinchu, Taiwan March 15, 2021. Picture taken March 15, 2021. REUTERS/Ann Wang

To compound the issue, the global demand for semiconductors is booming, partially due to the COVID-19 pandemic and consumers buying more electronics, according to Tech Xplore.

Among other industries, this chip shortage has impacted the automotive industry. Automakers such as Ford, Nissan and Volkswagen have scaled back production due to the chip shortage, leading to estimates of $60 billion in lost revenue for this year.

"Last year La Niña shifted the main development area for typhoons westward toward the Philippines so there was little room for storms to curve to the north," AccuWeather Senior Meteorologist Jason Nicholls explained. "Those that turned north tended to do it east of Taiwan," he added.

There was no significant drought relief during the winter as the season is typically the drier time of the year across Taiwan. The vast majority of rain occurs during the summer months when tropical storms and typhoons can bring 100 inches (2540 mm) of rain or more to some areas.

This season, Nicholls expects that the region where the main development for tropical systems takes place in the western Pacific will be a little farther to the east, which can lead to a higher chance for impacts in Taiwan, though overall tropical storm and typhoon impacts may still be less than normal due to a pool of cooler waters in the central Pacific.

"Overall we expect significant impacts from three tropical storms or typhoons in Taiwan which gives them a slightly greater chance to receive some needed rains," said Nicholls.

A front can bring showers and thunderstorms to much of the country this week, though the rainfall will remain scattered and not heavy enough to bring improvements to ongoing drought conditions.

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