Water insecurity is becoming an “invisible barrier” to the growth of artificial intelligence (AI) and semiconductor manufacturing, as extreme weather, rising treatment costs and workforce shortages challenge industries dependent on reliable supplies, speakers at Taiwan International Water Week (TIWW) 2026 said.
To continue reading, subscribe to Eco‑Business.
Access all our exclusive content and archive — with a 7-day free trial. Then just US$5/month. Cancel anytime.
- Exclusive access to training across business and policy topics
- Direct access to industry leaders at Eco-Business events
- A seat among the decision makers shaping the region's sustainable development
TIWW took place in Taipei from 14 to 16 October 2026, bringing together water technology providers, industry professionals and international buyers. Organised by the Taiwan External Trade Development Council, the exhibition focused on water technology, resilience and quality.
Taiwan is a global hub for advanced semiconductor manufacturing and home to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker. Its chip factories depend on reliable, uninterrupted water supplies to cool equipment and clean silicon wafers during production.
A recent study showed that wafer cleaning requires ultrapure water, treated to remove contaminants that could damage chips, making water security critical to manufacturing and the wider technology supply chain.
Taiwan’s semiconductor, LCD screen manufacturing and heavy industrial sectors rely heavily on water for production. Supply interruptions can halt output and constrain industrial growth, said Gary Lin, Chief Technical Director at AIPoint, a Taiwan-based environmental solutions company that uses AI in wastewater treatment.
“
Taiwan cannot manufacture without water. If there is no water, there are no chips and no products.
Gary Lin, Chief Technical Director, AIPoint
“Water has already become an invisible barrier in the AI and semiconductor era because resource risk is a common challenge for water-intensive industries worldwide,” Lin told Eco-Business on the sidelines of TIWW. “Taiwan cannot manufacture without water. If there is no water, there are no chips, and no products.”
Typhoons, which strike the island nation over a dozen times per year, can cause “dramatic fluctuations” in water quality, putting immense stress on treatment facilities, he said.
The challenge is particularly significant for Taiwan’s semiconductor industry, where reliable water supplies underscore manufacturing, said Ben Hsieh, AIPoint’s founder, chief executive and president, and a former principal engineer at TSMC.
“Semiconductor manufacturing requires massive amounts of water. As a global hub for advanced fabrication, we are constantly exploring how innovative technologies can protect the environment and optimise water usage. AI plays a crucial role in achieving these sustainability goals,” Hsieh said.
Mounting costs and workforce pressures
Beyond supply disruptions, manufacturers face increasingly stringent wastewater discharge requirements, rising expenditure on chemicals, sludge disposal and electricity, and growing customer expectations for carbon reduction, according to Lin.
Failure to meet water quality standards can result in deadlines for corrective action or financial penalties, making treatment reliability both an operational and financial concern.
Workforce shortages compound these pressures. Treatment plants often depend on experienced engineers whose practical knowledge is difficult to transfer to newer employees, Lin said.
“There is the difficulty in passing on the operational knowledge of a veteran worker to a new joiner. There is the inability of the new worker to contribute right away and risk mishandling the site. These issues entail time, and the cost will keep increasing. Now is the time to implement AI while operational cost is lowest,” he said.
A team demonstrates its AI-powered wastewater management platform to visitors at Taiwan International Water Week. The tool helps operators monitor and manage the entire treatment process, from incoming wastewater to treated water discharge, reducing the need for routine manual checks. Image: AquaMind
AI Point’s Hsieh said AI adoption in Taiwan’s industrial water sector remains at an early stage, although more companies are beginning to use the technology to improve treatment and recycling efficiency.
He pointed to the Central Taiwan Science Park as an example, saying AI-driven treatment was already being used there to stabilise reclaimed-water quality and optimise overall water consumption.
“The adoption of AI in industrial water management is still in its early stages in Taiwan, but momentum is quickly building. More and more enterprises are implementing AI solutions to improve water treatment and recycling efficiency,” he said.
Desalination offers buffer against water shortages
While AI could help operators manage treatment costs and staffing shortages, Taiwan also needs alternative supplies to protect against water disruptions, according to water security expert Chia Jung Chen, who spoke at a session about decarbonisation in water-related engineering at TIWW.
Desalination offers one such safeguard, although its expense remains a challenge, Chen told Eco-Business.
“Desalination is a very expensive way to retrieve water because water is cheap in Taiwan. But even we need to think about extreme events. and if we don’t have much enough water, we need another solution,” said Chen.
A large-scale seawater desalination plant is under construction in Hsinchu City, Taiwan, with completion expected in 2028. The facility is designed to produce 100,000 cubic metres of freshwater a day for households and industry. Image: SUEZ
For semiconductor manufacturers, the main benefit is “risk reduction”, he said where reliance on rainfall exposes production to uncertainty, while desalination provides an additional source when natural supplies are under pressure, he said.
Taiwan’s steep, mountainous terrain complicates efforts to retain water, allowing rainfall to flow rapidly towards the sea. According to Chen, typhoons and landslides create further difficulties, meaning shortages can occur even during rainy periods.
Desalination forms part of a broader approach that includes improving water allocation and connecting supplies through tunnels and pipelines. These connections can move water from wetter areas towards regions experiencing shortages, including from northern areas towards the south during winter, he said.
Together, these measures address a different challenge from treatment efficiency, ensuring that water remains available in the first place, even when weather conditions disrupt conventional supplies, he added.
