[India Insight] Ultra-Pure Water for Semiconductors: How is India Tackling Its Water Scarcity?

Understanding India’s Water Reality and Its Response Strategies

-The Truth Behind Desalination and River Interlinking Projects- Recently, one of the hottest topics in the South Korean semiconductor industry is "water and power." In semiconductor fabs, which require nano-scale microprocessing, tens of thousands of tons of Ultra-Pure Water (UPW) —water entirely free of impurities—must be poured in daily to clean wafers. Amid this environment, the footsteps of India, emerging as a new hub in the global semiconductor supply chain , are highly intriguing. Centered around the state of Gujarat, India is rapidly expanding its footprint by attracting global semiconductor outsourced semiconductor assembly and test (OSAT) and legacy process fabs, such as Micron and CG Semi. This raises a fundamental question: "Semiconductor processing hinges on extremely sensitive water management. How on earth can India, a country facing high water pollution and climate volatility risks, ensure stable fab operations?" In today’s [India Insight] , we examine the immense potential and harsh realities of India’s water resources from various angles, exploring the breakthroughs India has found within this contradiction and the practical business opportunities South Korean companies should focus on. 1. India’s Water Map: Abundant Rivers, Scarce Water Geographically, India is a subcontinent blessed with massive, majestic river systems. However, an extreme seasonality hides behind this abundance. The 5 Great Rivers Watering India: Led by the Ganges (Ganga) —the sacred site of Hinduism and the heart of the northern economy— the Indus (the cradle of civilization), the Brahmaputra (carrying abundant water from Tibetan snowcapped mountains), the Godavari (often called the 'Ganges of the South'), and the Narmada (cutting through central India) serve as the lifeblood of the subcontinent. The Blessing of Himalayan Snow: The northern river systems, in particular, are fed by melting glaciers and perennial snow from the Himalayas. This provides a structural advantage, ensuring a continuous supply of raw water upstream regardless of the season. The Harsh Reality Trapped in the Monsoon: However, more than 80% of the annual rainfall is concentrated solely during the monsoon season from June to September. This causes heavy flooding during the wet season, followed by severe droughts during the dry season—a repeating cycle of extreme polarization. 2. Obstacles to Industrial Advancement: Agricultural Water Peaks and Water Quality Risks India’s rapid economic growth and industrial diversification are clashing head-on with its traditional agricultural-centered water resource system. The Need for 'Constant-Supply Water' with Zero Volatility: Semiconductor fabs and advanced manufacturing plants must be supplied with industrial water of uniform quality and quantity 24/7, 365 days a year without interruption. Water quality fluctuations caused by droughts or monsoons are fatal to fab operations. Clashing with Agricultural Water Peak Times: India is the world's largest user of groundwater. During dry seasons or peak farming periods, farmers pump out groundwater simultaneously using nearly free electricity. This overlap between "agricultural water peak times" and industrial water demand has emerged as a serious social dispute due to regional groundwater depletion. The Paradox of Water Infrastructure and Pollution: Thanks to the Modi government’s 'Jal Jeevan Mission,' the rural tap water supply rate has expanded to about 82%. However, due to aging pipelines and inadequate wastewater treatment, approximately 72% of urban sewage is discharged into the environment untreated. Consequently, hundreds of millions of people and industrial complexes constantly face water quality risks. 3. A Technical Turnaround: Ultra-Pure Water Infrastructure Determines Investment Decisions Just because India’s raw water quality is poor does not mean building semiconductor fabs is impossible. There is a core technical premise to solving this water issue. ♣ Core Premise: Securing Raw Water vs. Ultra-Pure Water Infrastructure In reality, semiconductor factories do not pump up river water or groundwater to use immediately. Secured water (raw water) goes through multiple stages of sedimentation, filtering, desalination, and chemical purification to be converted into 'Ultra-Pure Water' (UPW), which is close to a molecular state. Therefore, the key is not "Is the river flowing right now clean?" but rather "Is there a secure raw water route and the infrastructure/power to convert it into ultra-pure water?" ▶ The Trump Card Thrown by Gujarat: Sea Water Desalination Gujarat, one of the most proactive states in nurturing semiconductors, is tackling its weakness as an arid zone head-on with unprecedented incentives and seawater desalination technology. A Shift in the Desalination Paradigm: Once introduced primarily to solve "drinking water shortages" in extremely dry regions like the Middle East, desalination is now shifting its paradigm to an "advanced industrial w