Taiwan Semiconductor Manufacturing Co. Arizona broke ground and began construction this month on a planned 15-acre Industrial Reclamation Water Plant, which has the company aiming for little to no discharge in water used in manufacturing semiconductors.

With the facility, TSMC will start with recycling about 85% of the water it uses with plans to reach 90% or better, company officials said in a press release.

“One of the many reasons we chose Phoenix for our U.S. operation was the state’s and city’s thoughtful and thorough planning, including a water supply plan for 100 years. We know that water is a constant concern in the region. We will be a responsible corporate neighbor in our use of natural resources, including water,” said Rose Castanares, president of TSMC Arizona, in a statement.

The company’s goal is convert industrial wastewater used in chip manufacturing back to the industry standard of “ultrapure” needed to wash microscopic particles off wafers that can create defects. Company officials said it is particularly important in the chips produced at the Arizona facility.

The water facility will support TSMC Arizona’s first two fabs at the company’s north Phoenix site and will be operational in 2028. Its capacity will be expanded to accommodate the needs of future fabs. The facility and overall conservation efforts will significantly reduce the water supply required from the City of Phoenix.

“This project demonstrates how Phoenix can grow and innovate while conserving our most precious resource - water,” said Mayor Kate Gallego in a statement. “The IRWP at the TSMC site aligns economic growth with Phoenix’s water security commitments, providing an important example of the type of high-value, sustainable investments that are possible. By recycling and conserving water at this scale, we support advanced manufacturing and the good jobs that come with it, protect our desert environment and neighborhoods, and deliver a resilient future for generations to come.”

This isn’t the first time TSMC has done water recycling. The company operates industrial water plants in Taiwan, achieving a milestone in 2022 as the world’s first application of industrial-grade recycled water in advanced semiconductor manufacturing.

The Arizona plant incorporates design features from TSMC’s Taiwan facilities, but also considers the uniqueness of Phoenix’s water quality as compared to water in Taiwan. The primary difference is the water hardness as Phoenix’s water has higher levels of magnesium and calcium.

TSMC implements a comprehensive water conservation strategy that aligns with the United Nations Sustainable Development Goals. The company includes achieving a water positive rate of over 65% by 2030 as one of the goals for all TSMC fabs around the world.