TSMC boss frets about shortages of talent, water in Taiwan - Yahoo Finance

TSMC's CEO has voiced concerns over talent and water shortages in Taiwan, issues that could significantly impact global semiconductor supply chains. As the world's leading semiconductor foundry, TSMC'... Read original →

TSMC’s water and talent shortages in Taiwan, China are no longer local issues but systemic risks to the global advanced-node supply chain. Sub-3nm manufacturing relies heavily on EUV lithography, demanding ultra-specialized engineers and consuming over 50,000 tons of ultrapure water per 10,000 wafers monthly—making operations vulnerable to droughts. This dual constraint forces key clients like NVIDIA to co-optimize design and manufacturing, likely accepting higher wafer prices. Geopolitically, these pressures accelerate TSMC’s overseas expansion into the U.S., Japan, and Europe, though none can yet replicate Taiwan’s dense tech ecosystem. Over the next 18 months, two long-tail effects will emerge: AI chipmakers extending product lifecycles to hedge against capacity volatility, and governments globally redefining semiconductor subsidies around a new ‘water-energy-talent’ triad, fundamentally reshaping fab location strategies.