The knock-on effects of TSMC going down would have huge implications. Taiwan has issued an assurance with sufficient water reserves to keep a big tech industry led by Taiwan Semiconductor Manufacturing in water until late May when monsoon rains arrive to alleviate its worst drought in decades.

Minister of Economic Affairs Wang Mei-hua told reporters the island should have enough water to supply the public and industry till then, though precipitation is likely to fall short of average historical levels.

The drought has so far exerted no impact on TSMC nor other companies, Wang added.

The heightened level of concern is due to a global shortage of semiconductors that has been halting output at automakers, spurring TSMC and its peers to run their fabs at close to full capacity to try and sate demand.

Taiwan typically has shedloads of rainfall. But last year was abnormally dry by historical standards. Hsinchu City received just half the amount of rain in 2020 as it did the year before. The southern city of Tainan, another major centre of technology manufacturing, also saw a significant drop-off in the rain.