ESG & Investing

Fund Managers See Water Risk in Semiconductor Bets Being Mispriced

  • Water risk is leading investors to adjust company valuations
  • Analysts say TSMC’s water use has production implications

An almost depleted Lake Powell in Utah. 

Photographer: Justin Sullivan/Getty Images
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Investors in semiconductor stocks face a growing threat to industry valuations: a chronic shortage of water.

For Abrdn Plc, there are now few issues as pressing as water for the sector, according to David Smith, a senior investment director for Asian equities at the asset manager.