Chip fabrication is a thirsty business, making water supplies a vital component of any semiconductor manufacturer. Water shortages can limit chip production, and Taiwan's government has issued the nation's first water supply red alert in six years.

Taiwan is currently facing a drought, and the nation's reservoirs are at historic lows, thanks to minimal rainfall thanks to a typhoon free summer. This has created a national shortage of water, and both TSMC and Micron may soon face water rationing.