TSMC Arizona has broken ground and begun construction this month on a planned 15-acre Industrial Reclamation Water Plant (IRWP). The IRWP is designed to achieve “Near Zero Liquid Discharge” which means the company will have the ability to reuse nearly every drop of water. At start-up, the IRWP will reach 85% recycling rate with a plan to reach 90% or better. The start of construction on the IRWP reflects the company’s commitment to sustainable operations and coincides with World Water Week (August 24-28, 2025).
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“One of the many reasons we chose Phoenix for our US operation was the state’s and city’s thoughtful and thorough planning, including a water supply plan for 100 years. We know that water is a constant concern in the region. We will be a responsible corporate neighbor in our use of natural resources, including water,” said Rose Castanares, President of TSMC Arizona. “The ‘near zero’ discharge design of our IRWP is a proof point of TSMC Arizona’s green manufacturing plans, and our commitment of conservation so that the water supply will be maintained for a growing Phoenix community.”
This plant will convert industrial wastewater back to the “ultrapure” standard required in the chipmaking process. Ultrapure water is used to wash away microscopic particles that can create defects in semiconductor wafers, especially in advanced technologies such as the 4nm chips produced by TSMC Arizona. TSMC Arizona already reaches 65% recycling from its current in-house water resource center, which converts industrial wastewater for use in support systems such as air scrubbers and cooling towers.
“This project demonstrates how Phoenix can grow and innovate while conserving our most precious resource – water,” said Mayor Kate Gallego. “The IRWP at the TSMC site aligns economic growth with Phoenix’s water security commitments, providing an important example of the type of high-value, sustainable investments that are possible. By recycling and conserving water at this scale, we support advanced manufacturing and the good jobs that come with it, protect our desert environment and neighborhoods, and deliver a resilient future for generations to come.”
The new IRWP will support TSMC Arizona’s first two fabs at the company’s north Phoenix site and will be operational in 2028. The IRWP capacity will be expanded to accommodate the needs of future fabs. The IRWP and overall conservation efforts will significantly reduce the water supply required from the City of Phoenix.
TSMC currently operates industrial water plants in Taiwan, achieving a milestone in 2022 as the world’s first application of industrial-grade recycled water in advanced semiconductor manufacturing. The design of the Arizona plant incorporates design features from its Taiwan facilities, but also considers the uniqueness of Phoenix’s water quality as compared to water in Taiwan. The primary difference is the water hardness as Phoenix’s water has higher levels of magnesium and calcium.
TSMC implements a comprehensive water conservation strategy that aligns with the United Nations Sustainable Development Goals. The company includes achieving a water positive rate of over 65% by 2030 as one of the goals for all TSMC fabs around the world.
Water positive is the concept of water conservation that actively contributes to the sustainable management and restoration of water resources. This involves implementing practices and technologies that reduce water consumption, improve water quality, and enhance water availability.
The company also just released its 2024 Sustainability Report which covers its annual ESG performance metrics. Environmental metrics for TSMC Arizona will be incorporated into future reports.
