When we talk about the future, we often picture cutting-edge gadgets—faster smartphones, intelligent vehicles, and powerful digital systems transforming everyday life. At the heart of all these innovations lies a tiny yet critical component: the semiconductor chip. These chips are the backbone of modern technology, powering everything from consumer electronics and healthcare equipment to defence systems and renewable energy infrastructure.
Recognising their strategic importance, India has entered the global race to build a strong semiconductor manufacturing ecosystem. Initiatives such as the Semicon India Programme, launched by the Ministry of Electronics and Information Technology (MeitY), aim to position the country as a reliable player in global supply chains. However, beneath this ambition lies a less visible but highly significant challenge-water.
At first, the connection between semiconductor manufacturing and water may not seem obvious. The industry is usually associated with high-tech cleanrooms, precision engineering, and rare materials. Yet, water—specifically ultrapure water (UPW)-is indispensable to chip production. During fabrication, silicon wafers undergo hundreds of cleaning cycles to remove microscopic contaminants. Even a single particle can damage circuits at the nanometre scale.
To achieve this level of purity, water must go through extensive filtration processes, removing dissolved minerals, organic compounds, and even trace ions. According to global industry estimates, a single semiconductor fabrication plant (fab) can consume 2–10 million gallons of water per day (approximately 7.5–38 million litres). A significant portion of this is used for wafer cleaning and cooling processes.
Now consider this in the Indian context.
India is already classified as a water-stressed country. Data from the NITI Aayog’s Composite Water Management Index (2018) highlights that 600 million Indians face high to extreme water stress, and 21 major cities could run out of groundwater. Additionally, the Central Ground Water Board reports declining groundwater levels across several states due to over-extraction and uneven recharge.
Urbanisation, industrial demand, and climate variability are further intensifying the pressure. The Ministry of Jal Shakti has repeatedly emphasised that sustainable water management is becoming central to India’s economic planning.
Against this backdrop, the expansion of water-intensive industries like semiconductor manufacturing raises important questions. It does not mean that India should slow down its ambitions—far from it. Semiconductors are essential for economic growth, digital sovereignty, and national security. However, it does mean that growth must be carefully planned.
Historically, industrial development has often prioritised speed over sustainability. This approach has led to unintended consequences, including resource depletion and operational risks. In water-intensive sectors, supply disruptions can directly impact production, making water not just an environmental concern but a business and strategic risk.
India, however, has a unique advantage-it is still in the early stages of building its semiconductor ecosystem. This creates an opportunity to design the industry differently from the outset.
Several measures can help address the water challenge:
- Location planning: Establish fabs in regions with relatively stable water availability or access to treated surface water rather than over-reliance on groundwater.
- Water recycling: Advanced fabs globally recycle up to 80–90% of their water. Adopting similar technologies in India can significantly reduce freshwater demand.
- Zero Liquid Discharge (ZLD): Implementing ZLD systems ensures that wastewater is treated and reused, minimising environmental impact.
- Policy integration: Align semiconductor policies with national water strategies such as the Jal Jeevan Mission and National Water Policy.
Encouragingly, India has already begun moving in this direction. Proposed semiconductor projects in states like Gujarat and Tamil Nadu are being evaluated with infrastructure considerations, including water supply and recycling systems.
In fact, sustainability could become a defining strength for India. As global supply chains increasingly prioritise environmentally responsible manufacturing, demonstrating efficient water use and resource management can enhance India’s competitiveness. It also builds long-term resilience against climate-related disruptions.
This issue also reflects a broader reality about modern technology. While digital devices appear sleek and intangible, their production is deeply rooted in physical resources—water, energy, and raw materials. The illusion of a “clean” digital world often hides the environmental footprint behind it.
The semiconductor revolution may be driven by innovation, but it remains dependent on natural systems that are under growing stress.
Ultimately, progress always involves trade-offs. The real challenge is not whether to advance, but how to do so responsibly. India stands at a critical juncture where it can shape not only its technological future but also the way that future interacts with the environment.
The success of India’s semiconductor ambitions will not be defined by production capacity alone, but by how sustainably that capacity is built.
Because in the end, the story of semiconductors is not just about chips-it is equally about water, responsibility, and the choices that define our future.
