On November 21st, DSET invited German energy and environmental law scholar Thomas Schomerus, who is also a member of the UN Aarhus Convention Compliance Committee, to visit. The Climate Resilience and Sustainability Programme of DSET, together with the Environmental Rights Foundation (ERF), shared recent research findings on “Taiwan’s Semiconductor Industry and Science Park Resource Challenges.”Dr. Schomerus from the University of Lüneburg discussed water resource challenges using the example of the new semiconductor factory area in Dresden, Germany.
Taiwan’s Semiconductor Industry: Challenges of Technological Innovation and Sustainable Development
The session began with a lecture by Environmental Rights Foundation’s full-time researcher Hsu Po-Jen, who discussed the severe environmental and resource challenges faced by Taiwan’s semiconductor industry amid rapid global technological shifts. Particularly with the development of 2-nanometer advanced processes, the industry’s water and energy demands are expected to grow exponentially.
Taking TSMC as an example, its 2-nanometer fab area uses up to 98,000 tons of water daily, equivalent to 80% of the original daily water usage in the Hsinchu Science Park. To address these massive resource demands, TSMC has adopted proactive sustainability strategies, including water resource recycling and renewable energy investments.
Experts point out that sustainable development of advanced semiconductor processes will be a significant challenge. By 2040, TSMC’s energy needs may account for 13% of Taiwan’s renewable energy targets, while its water resource demands could consume 70% of the recycled water goals.
Facing these limitations, Taiwan needs to adjust its industrial structure to balance high-tech development with environmental carrying capacity. Notably, the semiconductor industry’s innovative potential could bring unexpected opportunities, such as global export of industrial water resource recycling technologies. Hsu Po-Jen believes this challenge is not just about Taiwan’s technological competitiveness but also a crucial experiment in global sustainable development.
Water Resource Governance in Taiwan’s Science Parks: A Paradigm of Innovation and Sustainability
DSET Sustainability and Resilience Team Director Tsaiying Lu then explained that Taiwan’s science parks play a critical role in the semiconductor supply chain while facing severe water resource challenges. According to a DSET research, science parks currently occupy about 10% of local water resources, with the industrial sector consuming over 20% of the nation’s water usage.
In the face of climate change impacts, Taiwan has actively introduced response strategies. The government has established mandatory policies requiring large water-consuming enterprises (using over 20,000 tons of water daily) to convert at least 50% of their water sources to recycled water by 2024. Tech giants like TSMC have demonstrated environmental responsibility, with some facilities achieving a 64% water recycling rate.
Using AUO Corporation as an example, the company transformed from being criticized for wastewater treatment to becoming a benchmark enterprise with 100% water recycling at its Longtan factory. Tsaiying Lu emphasized that this not only demonstrates the industry’s innovative capabilities but also highlights the importance of implementing environmental governance.
Through technological innovation, policy guidance, and corporate responsibility, Taiwan is establishing a new paradigm of sustainable development for the global tech industry. This integrated approach can ensure industrial competitiveness while providing valuable experience in addressing climate change.
EU Semiconductor New Landscape and Its Resource Challenges
Dr. Schomerus from Germany shared that against the backdrop of the EU’s active promotion of domestic semiconductor production, TSMC is partnering with German counterparts to construct a significant wafer factory in Dresden. This semiconductor plant, jointly invested in by TSMC, Bosch, and Infineon Technology, is expected to reach a production capacity of 40,000 wafers per month with a 300mm diameter by 2029.
The EU Commission has approved approximately 5 billion euros in national aid to support this critical technology investment. The German government hopes this 5 billion euro investment will enhance Europe’s strategic position in the global semiconductor supply chain and achieve a 20% global production target by 2030.Dr. Schomerus added that this national subsidy actually comes from the EU Emissions Trading System (ETS), which sparked curiosity among experts present. He explained that ETS income comes from private enterprises purchasing carbon emission certificates, and officials consider the funds established by ETS to have broad applications.
However, Dr. Schomerus, known for his environmental law expertise, pointed out that the project has sparked some discussions. Environmental and resource challenges have become a focal point, especially regarding water resource usage. Dresden’s water resource needs are expected to increase from the current 30% to 50% by 2030, with local energy companies investing 317 million euros in constructing new industrial water treatment systems.
Despite varying opinions on the massive national subsidies, there is a general consensus that this wafer factory symbolizes an important step for Europe in catching up in the semiconductor field, demonstrating a new mode of international cooperation in addressing technological competition. During the workshop exchange, Dr. Schomerus also expressed high interest in TSMC’s experiences and resource challenge research, looking forward to continuing academic exchanges between Taiwan and Germany through DSET.
