"Still a Long Way to Go" Samsung and SK Hynix at 40%... Recycled Water Emerges as New Competitive Edge in the Semiconductor Industry [Chip Talk]

Expansion of Advanced Processes Drives Up Water Usage
Samsung and SK hynix Accelerate Water Reuse Efforts
Taiwan's TSMC Achieves 88% Reuse Rate... Gap Remains Significant
Higher Reuse Rates Are Beneficial, But Costs Remain a Burden

The competition for securing water resources in the semiconductor industry has entered a new phase. As water consumption rapidly increases due to expanded production and the transition to advanced processes, the core competitive factor is shifting from simply securing large amounts of water to how much used water can be recycled. With the government recently announcing plans for a semiconductor mega project in the Chungcheong region following the Honam area, the issue of stable water supply is coming to the forefront. Both Samsung Electronics and SK hynix are accelerating efforts to improve their water reuse rates. However, industry insiders point out that there is still a significant gap compared to Taiwan’s TSMC, the world’s leading foundry.

"How much water do semiconductor factories use?"

The semiconductor industry is a quintessential "water-intensive industry." According to the UK market research firm IDTechEx, more than 900 million tons of water were used in global semiconductor production last year. It is projected that this figure will more than double to 2 billion tons by 2035.

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

The combined water consumption of these two companies surpassed 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 about 33% compared to 2018. The main drivers cited are the expansion of production facilities and the introduction of advanced microfabrication processes. The amount of water these two companies draw in a year is approximately 2.6 times the total storage capacity of Dongbok Dam (99.5 million tons), which the Ministry of Climate, Energy and Environment identified as the largest source for industrial water supply in the recent semiconductor mega project.

During semiconductor manufacturing, ultra-pure water—purified to remove even the tiniest impurities—is used in large quantities for wafer cleaning and other processes. This is why the semiconductor industry is deeply committed to water management. Ultra-pure water is water that has had all particulates, bacteria, and minerals removed, leaving nothing but hydrogen and oxygen molecules. Debris from wafer cutting and leftover ions from semiconductor doping are also rinsed away using ultra-pure water. Additionally, water is used in scrubber processes to remove hazardous substances and gases generated during manufacturing.

Growing Water Demand...Recycling Is the Decisive Factor

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

The Ministry of Climate, Energy and Environment estimates that daily water demand for the southwestern semiconductor cluster will reach 650,000 tons (2.37 billion tons annually). Any shortfall will be supplied by Dongbok Dam, Juam Dam, Jangheung Dam, Boseonggang Dam, and Naju Dam. In particular, Dongbok Dam alone will supply about half of the planned amount, or 300,000 tons per day. The plan is to secure 50,000 tons from existing surplus and an additional 250,000 tons by raising the dam wall.

Industry insiders argue that, to ensure stable water supply for the semiconductor cluster, the priority should be to improve water reuse rates. In response to increased water intake, Samsung Electronics is expanding water reuse by recycling wastewater generated from production facilities or purifying it through in-house treatment facilities for reuse.

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

Samsung Electronics’ DS division also steadily increased water reuse at domestic sites: 92.65 million tons in 2023, 101.1 million tons in 2024, and 107.96 million tons last year. Samsung Electronics does not disclose its reuse rate separately. However, given the similar water usage patterns of semiconductor fabs, industry observers estimate that Samsung Electronics’ reuse rate is also around 40%.

Why Water Reuse Rates Cannot Rise Indefinitely

However, the water reuse rates of domestic companies remain relatively low compared to their competitor, Taiwan’s TSMC. According to TSMC’s latest sustainability report, the company achieved water reuse rates of 85.7% in 2022, 90.3% in 2023, and 88.1% in 2024. TSMC continuously recycles wastewater internally by refining it into ultra-pure water through advanced purification systems. Thanks to this system, TSMC is building a massive semiconductor fab in the middle of the arid desert in northern Phoenix, Arizona, where water is extremely scarce.

The main obstacles, once again, are cost and technological capability. Recycling wastewater to ultra-pure water levels suitable for semiconductor processes is significantly more expensive than standard water treatment. If even minute impurities enter during the recycling process, it can lead to yield drops in advanced manufacturing processes.

An industry official explained, "Water reuse rate is a key indicator of a company’s water management capabilities. We operate a circular system in which ultra-pure water, once used, is not simply discharged but is maximally recycled through wastewater treatment facilities." However, he also noted, "The process is complex and costly." Another official added, "Purifying used water back into ultra-pure water costs more than treating regular water. Thus, the cost burden is a crucial consideration when trying to increase reuse rates."

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