Leading semiconductor companies could be drastically affected by ongoing climate change issues such as water scarcity, analysts prove.
Top firms involved in making semiconductors such as TSMC are at the highest risk, a new report by S and P Global Ratings delineated in terms of not being able to process materials to produce the outcome.
For those who might not be aware, it’s a serious matter worth a thought. The tech world is at the greatest risk because most of the devices we use in our everyday lives like mobile phones and televisions entail these chips.
Therefore, if the world’s biggest supplier cannot produce goods, the tech world suffers, and that in turn means tech giants like Apple and Nvideo who rely on these companies for advanced processors would similarly suffer big time.
It wouldn’t be wrong to add how today’s chip industry happens to be very thirsty. For instance, it consumes a lot of water supplies each day. Did we mention how water is used for purposes like cooling the machinery down? This also means it’s regularly used for things like making sure raw materials are clean and free from any kind of debris.
There’s a direct link between the use of water and the sophistication of such chips. Remember, fabs make use of water that’s ultrapure for rinsing wafers to carry out the whole process. The more modern the semiconductor chip is, the greater the number of steps needed and the greater the supply of water it would consume.
This is why tech analysts are ringing the alarm bell and want the world to notice how water supplies are diminishing quicker than most had anticipated. There’s a massive 35% growth after advancing to 16nm nodes which arose in the year 2015.
This was mostly due to the likes of advanced nodes in use and how they now require more sophisticated steps to fabricate the final good. Given the great dominance in this world of chipmaking, we can see how that could cause a serious disruption of the ongoing tech supply processing.
The leading firm that happens to be responsible for producing the greatest number of semiconductor chips in places like Taiwan says its produce is used by 90% of all big tech giants. This includes for purposes like AI and even apps involving quantum computing.
We know that the leaders of the company are not turning a blind eye as they view this as a serious concern. They could soon be focusing more on rolling out modern chips over those that are generated through lower-margin, if and when the need arises due to water scarcity. And that could also facilitate greater boosts in their revenue.
Today, environmental experts have mentioned how using water is at an all-time high today and it’s said to rise from middle to high digit percentages this year and moving forward too. It’s driven by a means to expand capacity and the massive demands related to processing tech at an advanced rate than what was seen before.
As it is, the figures for global chipmakers right now state how they’re using so much water that’s as great as the city of Hong Kong. Mind you, the latter has a population comprising over 7 million individuals.
This is the need as to why more water security is necessary and how that could change the credit profiles of leaders in the semiconductor industry. So any kind of mishandling is not recommended as the consequences can be serious, hurting performance big time and impacting client relationships along the way too.
Image: Unsplash
Read next: Apple Is Making The Most Of The Generative AI Trend With Heavy Investments, CEO Tim Cook Confirms
Top firms involved in making semiconductors such as TSMC are at the highest risk, a new report by S and P Global Ratings delineated in terms of not being able to process materials to produce the outcome.
For those who might not be aware, it’s a serious matter worth a thought. The tech world is at the greatest risk because most of the devices we use in our everyday lives like mobile phones and televisions entail these chips.
Therefore, if the world’s biggest supplier cannot produce goods, the tech world suffers, and that in turn means tech giants like Apple and Nvideo who rely on these companies for advanced processors would similarly suffer big time.
It wouldn’t be wrong to add how today’s chip industry happens to be very thirsty. For instance, it consumes a lot of water supplies each day. Did we mention how water is used for purposes like cooling the machinery down? This also means it’s regularly used for things like making sure raw materials are clean and free from any kind of debris.
There’s a direct link between the use of water and the sophistication of such chips. Remember, fabs make use of water that’s ultrapure for rinsing wafers to carry out the whole process. The more modern the semiconductor chip is, the greater the number of steps needed and the greater the supply of water it would consume.
This is why tech analysts are ringing the alarm bell and want the world to notice how water supplies are diminishing quicker than most had anticipated. There’s a massive 35% growth after advancing to 16nm nodes which arose in the year 2015.
This was mostly due to the likes of advanced nodes in use and how they now require more sophisticated steps to fabricate the final good. Given the great dominance in this world of chipmaking, we can see how that could cause a serious disruption of the ongoing tech supply processing.
The leading firm that happens to be responsible for producing the greatest number of semiconductor chips in places like Taiwan says its produce is used by 90% of all big tech giants. This includes for purposes like AI and even apps involving quantum computing.
We know that the leaders of the company are not turning a blind eye as they view this as a serious concern. They could soon be focusing more on rolling out modern chips over those that are generated through lower-margin, if and when the need arises due to water scarcity. And that could also facilitate greater boosts in their revenue.
Today, environmental experts have mentioned how using water is at an all-time high today and it’s said to rise from middle to high digit percentages this year and moving forward too. It’s driven by a means to expand capacity and the massive demands related to processing tech at an advanced rate than what was seen before.
As it is, the figures for global chipmakers right now state how they’re using so much water that’s as great as the city of Hong Kong. Mind you, the latter has a population comprising over 7 million individuals.
This is the need as to why more water security is necessary and how that could change the credit profiles of leaders in the semiconductor industry. So any kind of mishandling is not recommended as the consequences can be serious, hurting performance big time and impacting client relationships along the way too.
Read next: Apple Is Making The Most Of The Generative AI Trend With Heavy Investments, CEO Tim Cook Confirms
