The chief executive of the world’s largest contract semiconductor manufacturer voiced concerns Friday about his company’s most pressing challenges: finding skilled workers and securing adequate water supplies.
C.C. Wei, who leads TSMC, made these remarks during a ceremony for a new technology park in Pingtung, located in southern Taiwan. The region produces the majority of advanced semiconductors that fuel artificial intelligence technology.
Industry leaders in Taiwan have long discussed what they term the “five shortages” affecting their operations: water, electricity, workers, land, and skilled talent.
Wei welcomed the rainy weather at the outdoor event, noting his recent water supply concerns. “Just last month, I was still wondering: What should we do about water? Should we start using water trucks?” he stated during remarks broadcast on Taiwan’s television networks.
The executive mentioned that Taiwan President Lai Ching-te, who attended the ceremony, had discussed government initiatives to link the island’s water reservoirs. “In that case, in the future I will no longer need to say that land, water or electricity may be in short supply,” Wei commented.
Southern Taiwan typically experiences lower reservoir levels during winter months, though recent heavy rainfall has helped restore water supplies. The island implemented extensive water restrictions in 2021 following its most severe drought on record.
“We may face shortages, but what we still lack most is talent,” Wei emphasized, advocating for expanded worker training programs and efforts to retain people in the predominantly rural Pingtung area.
President Lai, who spoke following Wei, indicated the government was nearing completion of its reservoir connection project. “Our problem is how to retain water, how to distribute water, and how to use water efficiently,” Lai stated.
The president also described government efforts to attract and keep international talent for the technology sector, including streamlined work permit processes.
TSMC, which serves as a key supplier to Nvidia, is committing $165 billion to construct manufacturing facilities in Arizona. However, company officials have consistently stated that Taiwan will continue housing the majority of production operations and research activities.
Wei described semiconductors as having become “inseparable” from all aspects of modern life, predicting continued demand growth. “Regarding semiconductors, Taiwan will definitely be the most important place,” he declared.
