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Arizona chip boom faces water cuts from 2027, raising alarm for TSMC, Intel expansions

Arizona is expected to sharply reduce the amount of water it draws from the Colorado River under a new U.S. allocation plan, increasing pressure on semiconductor plant expansions by TSMC and Intel. The state must cut at least 760,000 acre-feet a year from 2027, more than a quarter of its current supply from the river. Chipmaking is water-intensive and AI chip and data centre buildouts are boosting demand.