TAIWAN — Taiwan’s Sun Moon Lake is so low that parts of it have dried and turned to grass. Jetties that normally float are sprawled awkwardly on dry land, and tour boats are crowded at the tail ends of pontoons still in the water.
Usually one of the island’s most famous tourist destinations, the lake has recently become a star of a different kind. Following the worst drought in 56 years, it is now famous for all the wrong reasons. These days, Instagram influencers photograph themselves posing in a dust-colored, dinghy half-buried in a cracked and cratered lakebed…
But away from the quirky headlines, the situation is dire. Other reservoirs across central and southern Taiwan are effectively empty, down to 5% or less.
Taiwan has had drought before, but observers are hoping the severity of this one – which has lasted 18 months and threatens Taiwan’s economic lifeblood of semiconductor production – is enough to prompt real action on climate change.
Taiwan relies heavily on seasonal typhoons to top up reservoirs, but in 2020 not one made landfall. And it could happen again.
Source: The Guardian – Helen Davidson in Taiwan Read The Article
PSR Analysis: PSR participated in April HDMA Pulse Webinar to examine global commercial vehicle markets (PSR News: HDMA Pulse Webinar April 2021). One area of focus was the impact that supply chain fragility is having throughout commercial vehicle markets in China, India and Japan. At the center of this discussion was the role played by natural and man-made disasters in curtailing the supply of semiconductors employed in the automotive industry.
Examples cited in the webinar included an unusual cold wave which impacted chip production at NXP, Infineon & Samsung semiconductor plants in Austin, Texas. In addition, a fire at the Renesas Electronics plant in Japan specifically targeted the domestic market as many Japanese OEMs had placed chip orders with Renesas. As our Research Analyst in Tokyo, Komuro Akihiro, pointed out, “Of the MHV models manufactured in Japan, there is not a single model that does not require semiconductors.”
Missing from my presentation was mention of the severe ramifications the current historic drought is having on Taiwan – both its people and its industries.
During my time living in Taiwan, typhoons were something you could count on. Some years brought many; some years brought few. No matter what, they always came. It is hard for me to imagine a year without a typhoon. Now, with reservoirs approaching all-time low levels, water rationing impacting farmers and consumers alike, and rolling power outages due to a heat wave and reduced hydroelectric power, the question is how to balance the needs of these diverse groups.
As Davidson points out in her article, Taiwan Semiconductor Manufacturing Company (TSMC) “…is a major user of water and power resources that makes a large percentage of the world’s semiconductors (used in electronics ranging from cars to phones) and contributes 4% of GDP. The drought has prompted international concern about supplies.” For farmers and citizens who lack the resources of corporations like TSMC, the Taiwan government is being called upon alleviate the burdens being faced.
Indications are that TSMC has developed a plan to conserve its water usage and is investing in greater water recycling efforts. To help meet global semiconductor demand, they are also looking to expand their investment in new fabrication facilities in Arizona. While those will take time to bring online, and precautions are being taken to prevent disaster – both man-made and natural – expanding water-intense industries in a desert can be viewed as risky.
Amidst these challenges, global markets continue to depend on the movement of products, parts, raw materials and components from one region to another. The continuing vulnerability inherit in global logistics means reliability will remain uncertain at best. This in turn forces us to continue addressing the root causes of the factors that result in continual disruptions. PSR
Erik Martin is Director–Asia Region for Power Systems Research
