Why ultrapure water is critical for microelectronics manufacturing

Alfredo Zepeda
by Alfredo Zepeda
26 March 2026
3 minutes read
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    The semiconductor industry operates at a pace unlike any other manufacturing sector. Every two years, companies introduce new chip technologies with smaller geometries, higher transistor densities and more complex designs. These chips power technology from smartphones to data centers — all of which demand faster speeds, greater processing power and lower energy use. This relentless innovation cycle drives how society interacts with technology.

    But behind every breakthrough lies an often-overlooked requirement: ultrapure water (UPW) of extraordinary quality. As chips become thinner than human hair and approach the size of DNA strands, the water used in their production must meet specifications that exceed even pharmaceutical-grade water.

    Unlike most industries where water quality is driven by regulatory compliance, semiconductor manufacturing faces pure performance pressure. A single contaminant particle can destroy a chip worth $50,000 to $60,000, making water purity directly tied to production yield and profitability.

    The industry has progressed through increasingly stringent water quality requirements over the past decade. Traditional industrial water treatment focuses on parts per million (ppm) contamination levels. High-pressure boilers and pharmaceutical applications typically require parts per billion (ppb) purity. The semiconductor industry has pushed an order of magnitude beyond this to parts per trillion (ppt), and today’s cutting-edge facilities demand parts per quadrillion (ppq) specifications.

    To put this in perspective, if you picture the entire distance from Earth to the moon, the first two inches represent an order of magnitude of precision required for semiconductor-grade UPW. This extraordinary precision is necessary because modern microchips contain circuits with geometries measured in nanometers.

    The manufacturing challenge

    More processing steps are required for more complex circuits, and each step demands UPW for surface preparation and cleaning. A typical microelectronics manufacturer consumes up to 10 million gallons of UPW daily, according to the World Economic Forum, making the purification process and water reuse crucial.

    Unlike other manufacturing inputs that can be transported from external suppliers, UPW must be generated on-site and used immediately to prevent contamination. This just-in-time production model requires sophisticated water treatment systems that can consistently deliver the required purity levels.

    Many semiconductor facilities are located in water-scarce regions, creating additional pressure to maximize water efficiency. Companies like TSMC aim to recycle 60% of their process water, but this creates a paradoxical challenge: Manufacturers must transform their dirtiest wastewater — containing complex chemistries from across the periodic table — back into the cleanest water possible for reuse in production.

    This recycling requirement represents one of the most technically demanding water treatment challenges in any industry. The wastewater from semiconductor manufacturing contains concentrated levels of metals, solvents and other contaminants that must be removed to ultrapure specifications for reuse.

    Data centers, while also water-intensive, face fundamentally different challenges. Their primary need is heat dissipation through cooling systems, which can often be addressed through air cooling or closed-loop water systems. Semiconductor manufacturing requires continuous consumption of UPW as a direct input to the production process, making water management far more complex.

    Delivering certainty in a high-stakes industry

    The semiconductor industry operates on massive capital investments — a single fabrication facility can exceed $25 billion to construct. Within these facilities, water treatment systems represent a significant portion of the infrastructure investment.

    Given these stakes, semiconductor manufacturers seek partners who can reduce risk across the entire project lifecycle. They need certainty that their water systems will deliver the required quality, meet aggressive timelines for facility startup and support sustainable operations as production scales.

    With more than 40 years of microelectronics experience and nearly 400 executed projects, Veolia knows how targeted solutions can deliver significant operational and environmental benefits.

    ASM, a leading semiconductor equipment supplier, faced water usage challenges at its Phoenix facility as part of a commitment to net-zero operations by 2035. Veolia conducted a comprehensive audit and identified the cooling tower system as the biggest water user, determining the facility could reduce water usage by cutting discharge flow while managing the resulting increase in dissolved solids through close collaboration with municipal authorities to modify operating permits. The solution allowed ASM to increase its cooling tower cycles and reduce daily water consumption from 28,000 gallons to 9,000 gallons — a 60% reduction that saves more than 6.8 million gallons annually while generating $35,220 in cost savings. The project earned ASM one of Veolia’s Return on Environment Awards.

    Another large U.S. semiconductor producer faced a costly challenge in which it was continuously treating all spent water to meet discharge standards. It required large amounts of chemicals, produced significant sludge and wasted valuable water in the water-scarce Southwest region. Veolia partnered with the facility to implement a sophisticated water monitoring and reuse program that diverts, stores and tests wastewater streams so treatment chemicals are only added when necessary. The facility now saves 15 million gallons of water annually while cutting chemical use by 350,000 pounds and eliminating 180,000 pounds of sludge. The reused water is so clean that it allows cooling towers to operate at nine cycles of concentration, delivering more than $100,000 in annual cost savings.

    Comprehensive capabilities for tomorrow’s challenges

    Veolia’s solutions span UPW generation, segregated wastewater treatment, zero liquid discharge systems and advanced monitoring. In the realm of UPW, their systems are already pushing past PPT specs toward future PPQ requirements.

    As artificial intelligence and advanced computing drive demand for more powerful semiconductors, manufacturers will face even greater water quality and conservation challenges. Success requires partners like Veolia that understand that water management impacts production yield, operational efficiency and long-term sustainability.

    Our vision to anticipate tomorrow’s challenges through rigorous testing of today’s most advanced technologies makes us a trusted partner for an industry where precision and reliability are non-negotiable.

    Contact our experts today to learn how comprehensive water management solutions can support your semiconductor manufacturing operations.

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    Alfredo Zepeda

    Author | Alfredo Zepeda

    Global Solutions Director Microelectronics, Veolia

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