June 22, 2015

Taiwanese Drought Impacting IC Industry Global Supply Chain

Ranna Rose

Taiwan is currently facing their worst drought in 67 years, and high tech sectors like the integrated circuits (IC) industry are watching the situation carefully. Even though Taiwan receives an annual rainfall of 98 inches, 2.6 times the global average, they dedicate much of this water to the industry, leaving only 20% available as a resource. Ironically, this strategy has made Taiwan a water resource-poor region with a UN global ranking as the 18th driest place in the world. And unfortunately this year, the reservoirs are quickly running dry. This post explores the scope and impact of the water shortage on the IC industry and recommends supply chain risk mitigation strategies and approaches for downstream high tech OEMs and brand owners.

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