Taiwan Semiconductor Manufacturing Company (TSMC) is a global leader in effective water resource management in the production of semiconductors
With ever-growing demand for mobile phones, computers, smart appliances and vehicles, the need for semiconductors will only keep growing. But the production process for the chips that are the ‘brains of modern electronics’ requires vast volumes of ultrapure water.
In a such a hugely water-reliant industry, TSMC leads the way in effective water resource management. Its numerous reclaiming and recycling efforts enabled it to recycle 86% of all the water it used in 2020. 1
1 Semiconductor manufacture: https://esg.tsmc.com/download/file/2020-csr-report/english/pdf/e-all.pdf
2 Population in water stress: https://www.wri.org/insights/17-countries-home-one-quarter-worlds-population-face-extremely-high-water-stress.
3 Biggest water users: https://www.fao.org/aquastat/en/overview/methodology/water-use.
4 Water Facts - Worldwide Water Supply | ARWEC| CCAO | Area Offices | California-Great Basin | Bureau of Reclamation (usbr.gov)
Two billion (or a quarter) of the world’s population doesn’t have reliable access to clean, safe drinking water 2
Sector-wise globally, agricultural accounts for 59% of water use, followed by municipal and domestic use at 23% and industrial use at 18% 3
Water covers 78% of the world’s surface but only 3% of earth’s water is fresh and only 0.5% is available fresh water 4
As investors we can look to own and engage with companies that show water leadership
Company selected for illustrative purposes only to demonstrate the investment management style and not as an investment recommendation or indication of future performance.