While global focus is on Nvidia chips and artificial intelligence, a critical battle plays out behind the scenes: resources. Chip manufacturing is one of the most water-intensive tech processes, demanding vast amounts of ultrapure water—so clean, its purity can't be measured by regular instruments. A single advanced factory may consume up to 38 million liters per day, enough to supply 100,000 people.
With each chip generation, water requirements increase. Transitioning from 28nm to 5nm manufacturing nodes has forced producers to step up purification efforts. Over half of new semiconductor plants set to open by 2030 are in regions with extreme water scarcity, pushing IT giants to invest hundreds of millions of dollars in purification and recycling systems.
The market is dominated by a few mainly Japanese companies—Kurita, Organo, and Nomura Micro Science—offering comprehensive solutions for ultrapure water supply. Their stable, long-term contracts mean earnings grow regardless of chip demand fluctuations.
New environmental regulations require companies to reuse more water and invest in new systems, raising capital expenditure by up to 30%. Still, the ultrapure water market is expected to grow by 8-10% annually, driven by global high-tech and pharmaceutical trends.
Investing in water suppliers, not just chip makers, is becoming more attractive. Ultrapure water is shifting from a technical detail to a key strategic resource of the AI era.
