Speaking during a ceremony for a new science park in Pingtung, southern Taiwan, Taiwan Semiconductor Manufacturing Company (TSMC) CEO C.C. Wei highlighted the growing need for talent as the company expands to meet surging global demand for advanced chips used in artificial intelligence and other technologies.
The event took place amid heavy rainfall, a welcome sight for an industry that has repeatedly expressed concerns about water security in recent years.
Rain Brings Relief After Water Supply Concerns
Wei acknowledged that water shortages had been weighing on his mind only weeks earlier, given the industry's heavy reliance on stable water supplies for semiconductor production.
"Just last month, I was still wondering: What should we do about water? Should we start using water trucks?" Wei said during remarks broadcast live on Taiwanese television networks.
Taiwan's semiconductor sector has long warned about what industry leaders refer to as the "five shortages" — water, electricity, labor, land, and talent. These challenges have become more pressing as chipmakers race to expand capacity amid the global AI boom.
Taiwan President Lai Ching-te, who attended the ceremony, informed Wei about government plans to interconnect reservoirs across the island, a move designed to improve water distribution and strengthen long-term supply resilience.
Encouraged by the initiative, Wei said:
"In that case, in the future I will no longer need to say that land, water or electricity may be in short supply."
The issue is particularly significant in southern Taiwan, where reservoirs often experience declining water levels during the dry winter season. Although recent rainfall has helped replenish supplies, memories remain fresh of the severe 2021 drought, which forced authorities to implement widespread water restrictions across the island.
Talent Emerges as the Industry's Biggest Concern
Despite progress on infrastructure and resource management, Wei emphasized that TSMC's greatest challenge is no longer water or power.
"We may face shortages, but what we still lack most is talent."
The TSMC chief urged greater efforts to develop skilled professionals and encourage workers to build careers in regions such as Pingtung, which remains more rural than Taiwan's major technology hubs.
As semiconductor manufacturing becomes increasingly sophisticated, demand for engineers, researchers, technicians, and highly specialized workers continues to grow. Industry analysts have frequently warned that talent shortages could become a bottleneck for future expansion if not addressed.
Government Pushes to Attract Local and Foreign Professionals
Responding to the industry's concerns, President Lai outlined several government initiatives aimed at strengthening Taiwan's workforce pipeline.
According to Lai, authorities are nearing completion of plans to connect reservoir systems across the island while also focusing on more efficient water management.
"Our problem is how to retain water, how to distribute water, and how to use water efficiently."
Beyond infrastructure, the government is also working to attract and retain international talent to support Taiwan's technology sector. Measures include simplifying work permit procedures and creating a more welcoming environment for foreign professionals seeking opportunities in the semiconductor industry.
Taiwan Remains the Center of Global Chip Manufacturing
TSMC's comments come at a time when the company is investing heavily overseas, including a massive $165 billion expansion project in Arizona, United States. The chipmaker is a key supplier to AI giant Nvidia and plays a central role in the global technology supply chain.
Despite its international expansion, TSMC has consistently maintained that the majority of its manufacturing operations, research activities, and advanced development work will remain in Taiwan.
Wei expressed confidence that demand for semiconductors will continue rising as chips become increasingly embedded in everyday life and emerging technologies.
"Semiconductors have become inseparable from everything, and demand will continue to grow."
Reaffirming Taiwan's strategic importance in the industry, he added:
"Regarding semiconductors, Taiwan will definitely be the most important place."
With global demand for AI-powered technologies accelerating, Taiwan's ability to secure talent, strengthen infrastructure, and maintain resource stability is expected to play a decisive role in preserving its leadership in the semiconductor sector for years to come.