TSMC's Phoenix expansion aims for near-total water reuse amid desert growth

TSMC is investing $100 billion in a Phoenix campus that reinforces Arizona as a global semiconductor hub, but its water use draws scrutiny in a desert facing drought constraints. The site currently draws about 4.75 million gallons of water per day, with roughly 3.5 million gallons (65%) recycled on-site; the remainder largely evaporates through cooling. A new reclamation plant under construction should boost reuse to about 90% by 2028, reducing reliance on city water while officials weigh the project’s economic benefits against limited water supplies.