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TSMC Building Water Reclamation Plant
to Reduce Draw On Municipal Supply

By August 28, 2025No Comments

By Sasha Hupka | Arizona Republic

Taiwan Semiconductor Manufacturing Co. is starting construction on an industrial water reclamation plant that will bolster sustainability at its chipmaking campus in Phoenix.

Officials said the plant will enable the company to recycle “nearly every drop of water” it uses in the semiconductor manufacturing process. Its recent groundbreaking marks a step toward efficiency as TSMC’s chip factories, or fabs, continue to rise out of bare desert.

The company currently recycles about 65% of the municipal water it uses in its first fab, which produces chips made using four-nanometer technology. Upon being built, the new water reclamation facility will allow it to begin reusing 85% of its water, and it plans to eventually reach a 90% recovery rate or better.

Those numbers don’t account for water lost to evaporation during the manufacturing process, which the company estimates is between 15% to 20% of its daily water usage. But it still will allow it to reclaim almost all of its remaining water. It will sit on 15 acres and is expected to be operational in 2028.

It comes amid broad concerns over water in the desert. Arizona is bracing for reductions to its share of water from the Colorado River. It’s unclear what might happen in coming years — the seven states that use the river have struggled to reach a new agreement restricting their consumption as water levels in the river continue to drop.

Meanwhile, Arizona’s groundwater supply is also shaky, with aquifers lagging behind growth in parts of the state.

TSMC Arizona President Rose Castanares said in a company statement that the new plant represents a “proof point” of the company’s green manufacturing plans and demonstrates its “commitment of conservation.”

“We know that water is a constant concern in the region,” she said. “We will be a responsible corporate neighbor in our use of natural resources, including water.”

It also means more water for residents and other businesses in Phoenix. The city has a diversified water supply that relies on the Colorado River, the Salt River, the Verde River, groundwater and reclaimed water.

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