PHOENIX — TSMC Arizona has officially broken ground on a 15-acre Industrial Reclamation Water Plant (IRWP), a major investment in sustainable operations that will allow the semiconductor giant to recycle nearly all of the water used in its chipmaking process. The groundbreaking, which coincided with World Water Week (August 24–28, 2025), underscores the company’s commitment to conservation in Arizona’s desert climate.
At start-up, the plant is designed to recycle 85% of water, with plans to increase that rate to 90% or better. The facility will support TSMC Arizona’s first two fabs in north Phoenix and will be operational in 2028, with capacity expansions planned for future fabs.
“One of the many reasons we chose Phoenix for our US operation was the state’s and city’s thoughtful and thorough planning, including a water supply plan for 100 years. We know that water is a constant concern in the region. We will be a responsible corporate neighbor in our use of natural resources, including water,” said Rose Castanares, President of TSMC Arizona. “The ‘near zero’ discharge design of our IRWP is a proof point of TSMC Arizona’s green manufacturing plans, and our commitment of conservation so that the water supply will be maintained for a growing Phoenix community.”
The IRWP will convert industrial wastewater back to ultrapure standards, essential for semiconductor fabrication. Ultrapure water is used to remove microscopic particles from wafers, ensuring defect-free chips, particularly in advanced nodes like the 4nm chips produced by TSMC Arizona.
Currently, TSMC Arizona’s in-house water resource center achieves a 65% recycling rate, repurposing water for support systems such as cooling towers and air scrubbers. The new IRWP will expand this effort by recycling water directly for chip production, dramatically reducing demand from the City of Phoenix’s supply.
Phoenix Mayor Kate Gallego called the project a model for how economic development and sustainability can work together.
“This project demonstrates how Phoenix can grow and innovate while conserving our most precious resource – water. The IRWP at the TSMC site aligns economic growth with Phoenix’s water security commitments, providing an important example of the type of high-value, sustainable investments that are possible. By recycling and conserving water at this scale, we support advanced manufacturing and the good jobs that come with it, protect our desert environment and neighborhoods, and deliver a resilient future for generations to come,” Gallego said.
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TSMC has decades of experience operating industrial water plants in Taiwan and, in 2022, became the first in the world to use industrial-grade recycled water in advanced semiconductor manufacturing. The Arizona facility borrows design principles from its Taiwan operations but is tailored to the unique water chemistry of Phoenix, where higher magnesium and calcium levels pose different challenges compared to Taiwan’s water.
The IRWP also aligns with TSMC’s global water-positive strategy, which is tied to the United Nations Sustainable Development Goals. The company has pledged to achieve a water positive rate of over 65% by 2030 across all its fabs worldwide.
“Water positive” means not just reducing consumption but actively restoring and improving water resources. This includes lowering withdrawal levels, improving wastewater quality, and contributing to long-term regional water security.
TSMC’s just-released 2024 Sustainability Report outlines global ESG metrics, with Arizona-specific performance to be included in future updates.
With semiconductor manufacturing heavily dependent on water, the Phoenix IRWP represents both an environmental safeguard and an industrial necessity. By combining advanced chipmaking with cutting-edge conservation practices, TSMC Arizona is positioning itself as a cornerstone in both the U.S. semiconductor supply chain and the region’s water sustainability future.
Originally reported by AZ Big Media.
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