Panel makers in Taiwan are calling on the Taiwan government to loosen restrictions on new policies geared toward reducing water supply out of concern that operations will be affected.
Water available for industrial use will be reduced by roughly 7.5-10% starting March 23 in eight cities in Taiwan because of ongoing droughts.
Taiwan's government said it has seen some of the lowest rainfall in years, with Bloomberg quoting a statement from the government that said rainfall betweeen October 2014-February 2015 has been the lowest since 1947.
Soon after the Taiwan government made the announcement on March 19, panels makers came forth to express their opposition, stating that the water rationing could impact operations at various fabs. The makers also said the amount of water used by their fabs is considerably smaller than other industries.
Approximately 70% of water usage in Taiwan comes from the agricultural sector while use from local people amounts to about 20%. Industrial use makes up about 10%, according to statistics from the makers.
AU Optronics (AUO) was quoted as stating that it recycles 85% of its waste water, which is considerably higher than the 40-60% recycled by makers in China, and that there needs to be a more comprehensive solution to the drought.
Meanwhile, LED makers expressed that the amount of water they use is smaller than that of panel makers and that the newly imposed restrictions would only have minimal impact on their production.