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Semiconductor Production ‘At Risk’ Due To Water Stress
Businesses of all kinds, across all sectors and industries, would perhaps be well advised to build resilience into their systems so that they’re appropriately prepared for disruptions relating to water stress and scarcity in the future, which are expected to become more commonplace over the coming years as a result of climate change and more extreme weather events like flooding and drought.
However, given that this is the 21st century and the digital age, with life in general now firmly entwined with technology, it’s particularly important for those industries that manufacture electronics and information computer technology end products to put measures in place that will ensure production can continue in the face of such disruption.
It’s especially important to shore up the semiconductor supply chain if life as we know it is to continue as, without these substances, electronics production would stumble and fall.
Unfortunately, new figures published by the World Economic (WE) Forum indicate that 40 per cent of all current semiconductor manufacturing facilities are now located in watersheds that are predicted to face the biggest water stress risks by the year 2030.
What are semiconductors?
Semiconductors are substances that have various electrical properties that allow them to serve as the backbone for the manufacturing of electronic devices and computers. Typically solid chemical elements or compounds, the majority of semiconductors are made up of crystals from various different materials, but silicon crystals are the most popular option.
These semiconductors are positioned between a conductor and insulator, controlling and managing electric current flows in electronics.
Also known as chips, they have a pivotal role to play in modern technology and the global economy, providing us with many of the tools and resources we’re now heavily reliant upon, including smartphones, cars and computers, as well as being widely used in sectors such as healthcare, renewable energy, transportation and communication.
How will semiconductor supply chains be affected?
Climate change is expected to impact semiconductor supply chains in the near to medium-term, with one of the biggest concerns emerging as geopolitical rivalry and chip wars… but, as the WE Forum explains, this preoccupation has meant that insufficient attention is being paid to how environmental conditions of manufacturing sites are being shaped by the changing climate.
Extreme weather events have already caused problems in some regions, such as Hurricane Helene in September 2024, which saw the Spruce Pine mine in North Carolina shut down. This site provides around 70 per cent of the world’s supply of quartz, which is one of the key materials required for semiconductor manufacturing.
There are two mining companies operating in the area but neither have yet to return to full capacity, with bringing quartz to market still a challenge a few months later… and it’s expected that this disruption will continue, given that road and rail infrastructure may not be brought back online fully until next year.
The effect of water availability on production
As evidenced by the Hurricane Helene event, supply chains are already being affected in the here and now, with growing amounts of pressure being put on future resiliency… and one of the biggest ways that the climate crisis will impact production is through water stress and scarcity.
Manufacturing in general relies on significant amounts of water, but availability is now being seriously affected by climate change, not least because facilities are already situated in places facing severe water risks.
New plants under construction are also being built in at-risk watersheds, with figures showing this to be true for more than 25 per cent of new-builds. Furthermore, over 40 per cent of those in the planning stages are in places expected to see high or extremely high water stress between 2030 and 2040.
How can the situation be addressed?
Prioritising water efficiency will, of course, prove beneficial in shoring up supply chains, but other industries such as agriculture still need water and supplies are also required for potable use.
As such, the WE Forum is calling on manufacturing firms and governments alike to develop and adopt flexible strategies to accommodate the impacts that climate change will have on water availability across different regions.
In addition, facilities currently being planned need more in-depth scrutiny of their chosen locations, particularly where future water stress projections are concerned, as it’s possible that climate change could create long-term vulnerabilities in the supply chain, despite significant investments made to strengthen it.
How can businesses help?
Even if you’re not in the semiconductor manufacturing sector, there’s still a lot you can do as a business to reduce pressure on water supplies in your local area.
If you’d like to find out more about sustainable water management and how you can boost your company’s blue credentials, while saving money at the same time, get in touch with the H2o Building Services team today.