Water Restriction in Taiwan Amid Record Drought

Taiwan further restricted water supply for some industrial users, as well as households in two cities, as it struggles against a record drought

Water available for industrial use will be reduced by as much as 10 percent from March 23 in eight cities and counties including Taoyuan, Hsinchu, Miaoli and Taichung, the Water Resources Agency said in a statement today. Total rainfall between October and February was the lowest since record-keeping began in 1947, according to Taiwan's Central Weather Bureau. It forecasts a "high probability" for drier weather in the coming quarter, the water agency said.

Innolux Corp., which makes displays, said its production lines would be "impacted considerably" if forced to reduce its water use by 10 percent. The company will use auxiliary water and seek external sources, it said in a text message before today's announcement. AU Optronics Corp. said in an e-mail earlier today that it doesn't rule out purchasing water to secure supply if rationing is intensified.

The government had implemented on Feb. 26 a 5 percent cut in nine cities and counties in response to the drought, according to Taiwan's Central Emergency Operation Center. The public's water supply in two northern Taiwan cities will be stopped two days each week beginning April 1, according to the water agency statement today.

Production Effect

Taiwan Semiconductor Manufacturing Co., the world's biggest contract maker of chips, is based in Hsinchu, one of the cities where water supply will be reduced for industrial use. Elizabeth Sun, a company spokeswoman, said production at factories in north, central and southern Taiwan aren't affected. The company has started restriction of water usage to non-manufacturing services such as window washing and the staff gym, and is using only recycled water for gardening.

Source: Bloomberg

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Taxonomy

• Scarcity
• Drought
• Water Supply