Overview

2022 has brought devastation to many places around the world as a result of extreme weather events. Europe is facing its worst drought in at least 500 years, while half of the land in the United States is suffering from the worst megadrought in over a millennium. In China, drought is also drying up the Yangtze River, with water levels dropping to the lowest point in 157 years. In this unpredictable climate, companies must proactively engage in water resource management to ensure their sustainable development.

Water is essential to the semiconductor manufacturing process. UMC recognized its critical importance early on and introduced the Water Resources Management Policy and Commitment in 2015.Through reducing water usage in processes, improving recycling and reuse rates, and diversifying water sources, UMC has been able to effectively manage water resources and increase preparedness for droughts. This was evident during the drought in Taiwan last year. Even though yellow alert was issued for Hsinchu and Tainan area, UMC still maintained normal operations and was not affected by water rationing. In recognition the company’s water management efforts, UMC was included in the Water Security “A List” 2021, published by the Carbon Disclosure Project (CDP).

In response to water risks, UMC has formulated short-, medium- and long-term contingency plans. Short-term measures include voluntary conservation and investment in the company’s U Water program (which evaluates opportunities to treat wastewater so that it can be reused in fabs or elsewhere). The medium- and long-term approach is to diversify water supply, which includes increasing the utilization rate of reclaimed water and seawater.

Declining water use intensity
UMC’s multi-pronged strategy to conserve water has resulted in water consumption trending downwards over the years. In 2021, the total amount of water saved was 33.52 million metric tons, equivalent to 1.07 times the capacity of the Baoshan Second Reservoir in Hsinchu and translates to NT$8.033 million in cost savings. Tap water consumption per unit wafer area (water use intensity) has been declining over the past four years. Water usage intensity in 2021 was 24.8% lower than that in 2015, which exceeded the 11% reduction goal under UMC’s Green 2025 resource conservation program.

Expanding reclaimed water use to diversify sources
To reduce dependence on natural water supply, and to ensure stable production, UMC continues to expand diversify water sources. Reclaimed water – wastewater that is treated and recycled - is a stable source in areas with a high potential for water shortages. However, it has the drawback of high costs for the necessary infrastructure, as well as the question of whether it can meet the strict water quality standard required in semiconductor fabrication. UMC aims to progressively increase the utilization rate of reclaimed water, to 20% by 2022, 25% by 2025, and 40% by 2030.

Currently, UMC’s primary fab for reclaimed water use is Fab 12i in Singapore. When it was built, Fab 12i was the first UMC fab to introduce NEWater^note for 12-inch wafer production. In 2021, reclaimed water used in Fab 12i reached 3.30 million metric tons, accounting for 99% of the fab's total water intake. Further improving water efficiency, wastewater generated by Fab 12i is treated, and serves as industrial water for other companies. In Taiwan, the company will cooperate with the government to build, test, and adopt reclaimed water systems for its fabs in the Hsinchu Science Park and the Southern Taiwan Science Park.
Note: NEWater is reclaimed water supplied by the Public Utilities Board of Singapore, after the wastewater has been highly treated.

Collaborating with government, peers, and supply chain partners
Due to the shared nature of water resources, water management cannot be carried out independently. Therefore, it is necessary to collaborate with governments and industry partners to strive for regional water security. Aside from maximizing water use efficiency in its own operations, UMC also works with suppliers to manage water risks and reduce their footprint, and share its water management knowledge with peers. In addition, the company is actively involved in industry associations, and participates in formulation of water management indicators by the science park bureaus. Through experience sharing and collaborations, the industry as a whole can reduce its dependence on natural water resources, and stabilize regional water supply and quality.

Since 2002, UMC representatives have served as committee members in the annual water conservation program organized by the science parks, offering guidance to other firms. As of 2021, the company has helped more than 90 companies to improve water management, and they have saved a total of 822,000 metric tons of water over the past four years under the program. For firms advised by UMC in 2021, they are estimated to have the potential to save up to 268,000 tons per year, while companies advised in 2020 reduced their water consumption by 130,000 tons/year.

According to the Global Risks Report issued by the World Economic Forum (WEF) in January 2022, Climate Action Failure has become the most critical threat to the world. It is foreseeable that water-related risks related to extreme weather will continue to threaten countries around the world, challenging the resilience of business operations. Against this backdrop, UMC is committed to enhancing the sustainability of our business by maximizing efficiency while reducing environmental impact, and actively take measures to prevent the risks from scarcity of water resources.