20,000 million more will be spent on a factory with little water and labor

TSMC’s journey in Arizona (USA) continues. Yesterday the board of directors of this chip manufacturer, the largest on the planetapproved an injection of 20 billion dollars in what is already its most advanced semiconductor production plant of any it has in the US. The start-up of this factory It was full of setbacks.. In fact, it started production of integrated circuits almost a year late due to how much it cost TSMC. find qualified personnel that I needed.

At the beginning of 2025 the first good news arrived. The plant had been producing semiconductors for several months at the N4 lithography node, which belongs to the 5nm FinFET family, and was ready to deliver to Apple the first batch of SoC A16 and SiP S9. This factory, known as Fab 21, made $514 million in profit last year according to Yeh Chun-Hsienthe minister of the National Development Council of Taiwan. This is not bad at all if we keep in mind that during the first year of operation, semiconductor plants do not usually deliver profits.

In this scenario, the investment of an additional 20 billion dollars in the expansion of Fab 21, which is the purpose of this money, makes sense. In fact, this project is part of the $165 billion expansion plan that TSMC presented last year. However, not everything is going well for this company in Arizona. According to the newspaper Taipei Timesthe shortage of labor, and, above all, of water, is giving many headaches to the management leadership of this factory. And solving this last problem is not easy.

Arizona’s water shortage is a huge challenge for TSMC

Arizona is the second driest state in the US only behind Nevada. Semiconductor factories need a large amount of this resource, but it is not ordinary water like what comes out of our taps; They need a type of water almost impossible to find in nature. And its scarcity is getting worse. In fact, it is slowly becoming a systemic threat to the industry that sustains the artificial intelligencecell phones, electric cars and virtually any device that has an advanced chip inside.

The water we are familiar with, such as that which comes from the tap, spring water, and even bottled mineral water, is full of impurities. It contains bacteria, dissolved gases, mineral salts and microscopic particles in suspension. This is not a problem for most of the everyday applications we usually use it for, but This water is not suitable for making chips. Even the slightest impurity invisible to the human eye is pure poison when involved in the production of cutting-edge semiconductors, such as the 2nm integrated circuits currently being manufactured by TSMC.

The integrated circuit manufacturing process requires cleaning silicon wafers dozens of times. Every time a geometric pattern is transferred to wafers using lithography, they need to be cleaned. Also after pouring chemical reagents and photoresist fluids on them. However, the water used to remove any residue that may have deposited on the wafer cannot have the slightest impurity. It must be absolutely pure. In fact, the industry standard calls for water with an electrical resistivity of 18.2 megaohms per centimeter, which is the theoretical limit of water purity at room temperature.

The problem is that producing ultrapure water is not easy. And it is not because it is necessary to subject it to reverse osmosis in multiple stages and ion exchange treatments. It is also necessary to degas it under vacuum, eliminate any microorganisms it may contain with ultraviolet light and filter it using membranes expressly designed to capture the slightest impurity. In this article we do not need to investigate these processes in detail, but there is something that we cannot ignore: this treatment consumes energy and requires the use of a large amount of chemicals. Furthermore, a significant part of the water that is processed is not transformed into ultrapure water, so it cannot be used.

Once the water has been subjected to this demanding treatment, it acquires such a high purity that it becomes corrosive if it comes into contact with a very wide range of materials. Because it lacks its own ions, ultrapure water absorbs ions from virtually any material it comes into contact with. This is the reason why the pipes used to transport it must be made of materials immune to corrosion, such as PVDF (polyvinylidene fluoride), a fluorinated thermoplastic polymer similar to Teflon, non-polluting and extremely stable because it does not give up ions to ultrapure water.

A single cutting-edge semiconductor plant consumes between 10 and 30 million liters of ultrapure water every day. This range is equivalent to the daily drinking water consumption of a city of between 50,000 and 150,000 inhabitants. Plus, there’s another challenge we haven’t looked into yet: ultrapure water degrades very quicklyso chip factories must have a very sophisticated production and distribution system capable of working in real time to deliver the ultrapure water required by the manufacturing process of advanced integrated circuits.

Image | TSMC

More information | Taipei Times

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