Industry insiders estimate that TSMC can save NT$120 million in water transportation costs

According to Taiwan media Economic Daily, Taiwan's water shortage crisis has been resolved, and wafer foundries have also benefited. Industry insiders said that TSMC's originally scheduled water-carrying fees from June to August can be canceled in full, and it is expected to save NT$120 million (same unit below) in costs.

In recent months, the overall rainfall in Taiwan has been low, causing water shortages in the region. Data shows that in the past 12 months, the reservoir catchment area has only received 807 mm of rainfall, less than half of the annual average. Miaoli, Taichung and other places have entered the "5-day supply, 2-day stop" livelihood water restriction since April 6, and Hsinchu Science Park has also increased its water conservation rate from 15% to 17%.

In order to cope with the water shortage, TSMC used water trucks to carry water to construction sites. It is reported that TSMC's water purchase and water truck dispatching costs may increase to 800 million yuan.

Fortunately, Typhoon Caiyun and the plum rain front brought abundant rainfall in June. The relevant departments in Taiwan cancelled the red light measures for water supply in Miaoli, Taichung and North Changhua from June 6, and the water shortage crisis was resolved.

Industry insiders pointed out that TSMC originally planned to spend NT$120 million on water-carrying costs from June to August, but now it is certain that it can save the money. Calculated based on its share capital, although the contribution to net profit per share is not obvious, it is still a small help.