[Chip Talk] While TSMC Reuses 88% of Its Water, Samsung and SK Still at 40%... The Battle Over 'Recycled Water'

Expansion of Advanced Processes Drives Up Water Usage

Samsung and SK hynix Accelerate Water Reuse Efforts

Higher Reuse Rates Are Beneficial, but Costs Remain a Concern

The competition to secure water in the semiconductor industry has entered a new phase. As production expands and advanced processes are introduced, water usage is rapidly increasing. The key competitive factor is shifting from simply securing large quantities of water to how much used water can be recycled. With the government announcing plans for a mega semiconductor project investment in the Chungcheong region following the Honam region, the issue of stable water supply is drawing attention. Both Samsung Electronics and SK hynix are accelerating efforts to improve water reuse rates. However, the industry still sees a significant gap compared to Taiwan's TSMC, the world's top foundry company.

"How Much Water Does a Semiconductor Plant Consume?"

The semiconductor industry is a representative "water-intensive industry." According to the UK-based market research firm IDTechEx, over 900 million tons of water were used in global semiconductor production last year. By 2035, this is expected to more than double to 2 billion tons.

The water consumption of domestic semiconductor companies is also steadily increasing. According to the 2026 Sustainability Report recently published by Samsung Electronics, the Device Solutions (DS) division responsible for the semiconductor business drew 179.01 million tons of water last year. SK hynix used 83.5 million tons of water at its domestic semiconductor sites.

The two companies' water usage exceeded 200 million tons for the first time in 2019 (200.33 million tons), up from 197.01 million tons in 2018, and reached an all-time high of 262.51 million tons last year. This represents an increase of around 33% compared to 2018. Major reasons include the expansion of production facilities and the adoption of advanced, ultra-fine processing technologies. The amount of water the two companies draw annually is about 2.6 times the total storage capacity of Dongbok Dam (99.5 million tons), which the Ministry of Climate, Energy and Environment has identified as the largest source for industrial water supply in the current semiconductor mega project.

In the semiconductor manufacturing process, ultrapure water—water with even trace impurities removed—is used in large quantities for wafer cleaning and other steps. This is why water management is of utmost importance in the semiconductor industry. Ultrapure water is water that has had all particulates, bacteria, and minerals completely removed, leaving only hydrogen and oxygen molecules. Debris from wafer cutting and remaining ions after being injected into semiconductors are all washed away with ultrapure water. Additionally, water is used in scrubber processes to remove hazardous substances and gases generated during manufacturing.

Growing Water Demand... Reuse Is the Key Battleground

Seven days ago, a passenger plane flew over Gwangju Military Airport in Gwangsan District, Gwangju, Jeonnam. The government has selected Gwangju Military Airport as the site for the Honam semiconductor cluster. Yonhap News Agency

The Ministry of Climate, Energy and Environment estimates the water demand for the southwestern semiconductor cluster at 650,000 tons per day (237 million tons per year). The plan is to supply the shortfall from Dongbok Dam, Juam Dam, Jangheung Dam, Boseong River Dam, and Naju Dam. In particular, Dongbok Dam will supply about half the planned amount, with 300,000 tons per day. The plan is to supply 50,000 tons from existing surplus water and secure an additional 250,000 tons by raising the dam walls.

Industry voices emphasize that increasing water reuse rates should be prioritized to ensure a stable water supply for the semiconductor cluster. In practice, Samsung Electronics is expanding water reuse by recycling wastewater from production facilities or purifying it through in-house treatment facilities for reuse in operations.

According to the sustainability report published by SK hynix, the volume of water reused at domestic plants increased from 46.46 million tons in 2023, to 52.03 million tons in 2024, and 60.55 million tons last year. The water reuse rate rose from 44% to 47%.

Similarly, the volume of water reused at Samsung Electronics' DS division's domestic sites has consistently increased—from 92.65 million tons in 2023, to 101.1 million tons in 2024, and 107.96 million tons last year. Samsung Electronics does not separately disclose its reuse rate. However, since water usage methods are similar across semiconductor fabs, the industry estimates that the company's reuse rate is also around 40%.

Why Water Reuse Rates Cannot Be Raised Indefinitely

However, the water reuse rate of domestic companies remains relatively lower than that of competitor TSMC in Taiwan. According to TSMC's latest sustainability report, the company's water reuse rate was 85.7% in 2022, 90.3% in 2023, and 88.1% in 2024. Wastewater is purified to the level of ultrapure water using advanced treatment systems and continuously recirculated internally. Thanks to this system, TSMC is able to build a massive semiconductor fab in the middle of the desert in northern Phoenix, Arizona, where water is extremely scarce.

The main obstacles are cost and technology. Treating wastewater to the level of ultrapure water for semiconductor processes is far more expensive than general water treatment. If minute impurities are introduced during the reuse process, it can also lower the yield of advanced processes.

An industry official explained, "Since the water reuse rate is a key indicator of a company's water management capabilities, we operate a recycling system that maximizes the reuse of ultrapure water after a single use by passing it through wastewater treatment facilities, rather than simply discharging it." However, they added, "The process is complex and costly." Another official commented, "Purifying used water to make it ultrapure is more expensive than treating regular water," emphasizing that the financial burden is an important consideration in raising reuse rates.

This content was produced with the assistance of AI translation services.