The Taiwanese Ministry of Economic Affairs has recently denied rumors that TSMC (Taiwan Semiconductor Manufacturing Company) would be shifting its chip manufacturing capacity to China.

According to a WccfTech report, rumors had recently surfaced that the world’s largest contract chipmaker would be shifting its chip production to China. The move was reportedly due to the water shortage issue that the company is facing due to the drought that has affected the nation. For those unaware, a large amount of water is required by the firm for its operations. Thus, the Taiwanese Ministry denied these rumors regarding shift of production for processes like the 28nm nodes.

As per the Taiwanese Ministry, the chip maker has long term investment in the region has no plans on relocating its existing chip manufacturing capacities to China due to water constraints. Rather, the company is aiming on building a new facility that will help in facing a similar situation in the future. Unfortunately for the firm, while this new water plant will help in the future, it would not be able to help ease its current predicament.

This will also mark the world’s first exclusive water plant that is set up for a single company alone. In other words, the plant will be able to improve the water related enterprise risk management for TSMC in the future. For its current situation, the company has resorted to using water tankers to test groundwater for chip fabrication, which is a process that requires a large amount of water.

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