Chennai, Feb 26 (IANS) Credit rating agency S&P Global Ratings on Monday said semiconductor chip makers must focus on managing their water resources as water security will be an important factor in their credit profiles.
As per the credit rating agency, climate change is testing the chipmakers.
Globally, chipmakers already consume as much water as Hong Kong, a city of 7.5 million, S&P Global Ratings said.
Semiconductor firms’ water consumption is rising, both absolutely and on a per-unit basis, as processing technology advances.
Meanwhile, climate change is raising the rate of extreme weather, the frequency of drought, and the volatility of precipitation, limiting chipmakers’ ability to manage production stability.
This is according to a report we published today, titled, “TSMC And Water: A Case Study Of How Climate Is Becoming A Credit-Risk Factor.”
“Water security will be an increasingly important factor to semiconductor firms’ credit profiles. Mishandling of water resources could disrupt a firm’s operations, hurt financial performance, and hit customer relationships. By extension, any potential disruption in production may impact their end-markets given the generally integrated semiconductor supply chain,” said S&P Global Ratings credit analyst Hins Li.
The semiconductor sector is on track to increase water consumption by a mid-to high-single-digit percent each year, driven by capacity expansion and the demands of advancing process technology.
“There is a direct line between water use and chip sophistication, as fabs use ultrapure water–fresh water processed to extremely high purity–to rinse wafers between each process. The more advanced the semiconductor, the more process steps, the more water consumed,” said Li.
–IANS
vj/dan
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
