Drought hits Taiwan drive to plug global chip shortage

Taiwan has said it will try to ramp up production of chips but worsening water shortages could hamper its plans. (Reuters)
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Updated 26 February 2021
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Drought hits Taiwan drive to plug global chip shortage

  • European car manufacturers have been reaching out to Taipei for help amid semiconductor shortages
  • Taiwan has said it will try to ramp up production of chips but worsening water shortages could hamper its plans

TAIPEI: Taiwan’s drive to plug a global shortage of microchips has hit a snag — a lack of water for its foundries caused by a drought.

Taiwanese high-tech chip foundries are some of the world’s biggest and most advanced, and European car manufacturers have been reaching out to Taipei for help.

Semiconductor shortages, caused by supply chain priorities changing because of the coronavirus pandemic, have forced some major manufacturers to suspend production lines.

Taiwan has said it will try to ramp up production of chips but worsening water shortages could hamper its plans.

Under tougher restrictions imposed from Thursday, factories and industrial zones have to cut water use by up to 11 percent in some central and southern parts of the island.

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract microchip maker, said it has initiated measures such as reducing water usage and trucking in water for some facilities this week as a test run to prepare for “possible future needs.”

“So far there is no impact on production and we are monitoring the water supply situation closely,” the company said in a statement.

TSMC has said the auto industry was a top priority but warned its factories were already at full capacity.

A science park in northern Hsinchu city said other semiconductor companies were making similar preparations for water restrictions.

The dry spell came as no typhoons made landfall in Taiwan last year for the first time in 56 years.

Water levels in some reservoirs are at below 20 percent, and the central weather bureau predicts “drier than usual” weather for this month and next.

The government has “prepared for the worst,” said economic affairs minister Wang Mei-hua, as an “orange alert” has been issued to limit total water use and reduce water pressure in some cities.

 

 


UAE uses AI to guide oil production decisions, transform factories, ports

Updated 22 January 2026
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UAE uses AI to guide oil production decisions, transform factories, ports

  • Move marks major step, says minister for foreign trade

DUBAI: The UAE is now using artificial intelligence to guide production decisions in its oil and gas sector, replacing traditional simulation-based methods, a senior official said during the World Economic Forum in Davos on Thursday.

Speaking during the Factories That Think panel, the UAE’s Minister for Foreign Trade Thani Ahmed Al-Zeyoudi said the move marked a major step in the country’s adoption of AI, robotics and digital technologies across manufacturing, logistics, and energy sectors.

“Now we are applying AI. The AI tells us where to produce. We don’t need simulation engineers anymore to tell us where,” Al-Zeyoudi explained.

He said digitalization was also transforming the entire value chain, adding: “Digitalization and digital twinning are not only happening in factories, they are now across the entire value chain, from extraction and manufacturing to logistics, distribution and customs clearance.”

Al-Zeyoudi highlighted the UAE’s global logistics network, and said: “We have historically invested heavily in logistics, and today we are connected to around 250 ports around the world.

“The majority of consignments are now cleared before they arrive. What used to take a few days now takes just a matter of minutes.”

The minister also discussed the country’s shift away from labor-intensive models, and said: “This is no longer about wages; it’s about digitalization and improving efficiency in how we run operations.”

Robotics are being deployed at industrial sites to reduce downtime, and Al-Zeyoudi said: “Sites that used to shut down for three to six months can now be monitored by robotics during operation, reducing downtime to just a couple of days.”