News

Taiwan Premier Cho Jung-tai aims to avoid industrial water rationing amid worst drought in 75 years

Friday, March 27, 2026 at 02:16 AM

Taiwan is experiencing its most severe drought in 75 years, specifically impacting the western regions where the semiconductor industry is concentrated. Premier Cho Jung-tai stated that the government aims to prevent water rationing for industrial and household users through June. While Hsinchu is currently the most affected, infrastructure projects linking reservoirs like Shimen to the Hsinchu Science Park are helping mitigate supply risks. Monitoring continues for manufacturing hubs in Taichung.

Context

Taiwan is currently experiencing its most severe drought in 75 years, particularly affecting the western regions where the nation’s critical semiconductor infrastructure is concentrated. On March 24, 2026, the Water Resources Agency raised the alert level for Taichung to green while maintaining a yellow alert for Hsinchu, the 'Silicon Valley' of Taiwan. In response to these conditions, Premier Cho Jung-tai stated that the government’s primary goal is to "avoid water rationing for industry and households before the end of June." This statement was made amid mounting concerns over falling reservoir levels at Baoshan and Liyutan, which have dropped to approximately 30% capacity. To mitigate the impact on global chip supply, major manufacturers including TSMC, UMC, and ASE Technology have initiated voluntary water conservation measures, reducing usage by roughly 7%. The government is accelerating long-term infrastructure projects, such as the Shimen-to-Hsinchu pipeline and the Hsinchu Desalination Plant, to diversify water sources. While industrial production remains unaffected as of March 27, 2026, the success of these measures depends heavily on the upcoming plum rain season to replenish the western reservoirs.

Related Companies

TSMC
TSMC
2330
TW
UMC
UMC
2303
TW
ASE Technology
ASE Technology
3711
TW