Forty percent of all current semiconductor manufacturing facilities are vulnerable to one of the consequences of an overheating planet. The threat jeopardizes the supply chain security of a critical industry.
What's happening?
It could take years for western North Carolina to recover from the historic flooding and devastating damage inflicted by Hurricane Helene this fall. The storm killed at least 227 people, with more than 100 deaths in North Carolina alone.
The storm's damage has been estimated at nearly $60 billion, and officials are warning of its future repercussions. Helene shut down a major supplier of the world's high-quality quartz, which is used for the construction of semiconductor crucibles. Spruce Pine in the Blue Ridge Mountains of northwestern North Carolina was the source of almost 70% of the global supply of this crucial material.
While two mining companies that extract quartz from Spruce Pine have resumed operations, they are not back to full capacity. Some of the road and rail infrastructure needed to get the quartz to market is still being restored, and the recovery process will last into 2025.
Semiconductors are the brains of microchips, processing and storing data and communicating with external devices. The crisis in North Carolina highlights a vulnerability that the World Economic Forum says jeopardizes supply chain security for the semiconductor industry.
Why is the risk from water stress on the semiconductor industry important?
"Research using global water stress models, scaled to the level of individual watersheds, combined with data on the location of semiconductor manufacturing facilities, suggests reasons for concern," according to a WEF report. "Globally, 40% of existing facilities will be in watersheds projected to experience high or extremely high water stress between 2030 and 2040. Meanwhile, 24-40% of facilities under construction and more than 40% of those planned are in regions expected to experience high or extremely high water stress over the same period."
While the WEF report acknowledges innovations in water efficiency, it stresses that these advancements alone cannot address the broader issue given water's critical role in agriculture, domestic use, and other industrial processes.
The WEF report notes that considering the risks of individual companies may miss the bigger picture. The consequences of a warming world, such as water stress, can "ripple across entire production networks."
What's being done about climate-related issues that threaten the semiconductor industry?
The WEF recommends adopting flexible strategies that consider how an overheating planet impacts water availability across regions.
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"Without careful planning, billions of dollars spent to strengthen the semiconductor supply chain could unintentionally create long-term vulnerabilities due to climate change," according to the WEF report. Proposed facility locations should be carefully reviewed against future water stress projections to avoid jeopardizing semiconductor investments and creating climate-related vulnerabilities. In high-risk areas, relocating facilities or implementing local water solutions may be essential.
The impact on the semiconductor industry will be far-reaching. It is important to explore critical climate issues because of their potential impacts on all of us. Discussing these issues with family and friends is a way to raise awareness about the harmful effects of an overheating planet.
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