Since the Biden administration designated $52 billion to semiconductor manufacturers through the XIPS Actmanufacturing spending has grown substantially. Despite these funds, semiconductor manufacturers still face challenges in building facilities, particularly in navigating state water regulations.
As semiconductor designs become more complex and can channel even more information into smaller and smaller vessels, manufacturing facilities must keep pace. The complexity of the chips directly affects the cost of building and operating these facilities, requiring owners to select general contractors that understand the essential design, construction and legislative considerations associated with semiconductor manufacturing.
Local water regulations are becoming increasingly important for manufacturers to consider due to global water scarcity concerns. Semiconductor production requires ultrapure water, which is water that has been purified to extremely strict specifications. A typical facility can use up to five million gallons of ultrapure water per day. At the end of the manufacturing process, the waste water produced is contaminated with toxic solvents and heavy metals.
Consequently, securing water supply and implementing advanced water treatment processes are crucial for manufacturers.
“There is a growing understanding and acceptance of how valuable commodity water is,” says Ken Slota, director of design, construction and non-municipal water for PCL’s Civil Infrastructure Division. “Whether it’s because of state and federal regulations or internal climate goals, we’re seeing more and more manufacturers implementing water reuse.”
What is industrial water reuse and how is it regulated?
Currently, there is only one national regulation that all manufacturers must comply with when treating wastewater: the National Pollutant Discharge Elimination System (NPDES) permit program. Created as part of the Clean Water Act in 1972, the program regulates water pollution by controlling the discharge of pollutants into US waters.
Under NPDES permits, industrial users, including semiconductor manufacturers without on-site industrial water treatment technologies, must pretreat their industrial wastewater before discharging it to publicly owned treatment works (POTWs), where many municipalities further treat the water for reuse in the community.
Beyond NPDES regulations, specific discharge and reuse requirements vary by state, county, and even local city level. In fact, only 14 states have official water reuse regulations or guidelines for industrial applications.
Four growing states for microchip manufacturing are Arizona, California and Minnesota. All of these states are authorized by EPA to implement their own NPDES programs. Here’s a look at some of its basic water regulations associated with industrial manufacturing:
Industrial water reuse standards by state:
Arizona: Arizona leads the way in manufacturing new semiconductors in the United States. Since the passage of the CHIPS Act, Arizona has attracted more than $102 billion in semiconductor projects.
However, due to the state’s desert climate and long-term drought, strict water regulations have been implemented in recent years. The Colorado River, which supplies 36% of Arizona’s annual water supply, is experiencing a Level 1 shortage by 2024. Despite drought-induced restrictions, industrial manufacturing is experiencing only a 3% reduction. allocated water use, significantly lower than other industries. This is due in part to the innovative water reuse technologies that manufacturers are implementing in their facilities.
American technology company Intel, which has operated facilities in Arizona for forty years, is proactively involved in water conservation efforts. The company is actively returning or planning reuse projects that will restore nearly 2.2 billion gallons of water to Arizona’s water sources each year. PCL is currently working on a project for a reclaimed water facility in the city of Chandler, which will significantly increase the water reuse capabilities of Intel and other manufacturers.
California: With one of the world’s biggest hubs of technology and innovation in California’s Silicon Valley, it’s no wonder the state has excelled. 600 semiconductor manufacturing establishments, the most in the country. The state allows the use of recycled municipal wastewater for industrial manufacturing, following the guidelines of the California Title 22 water recycling criteria. For industrial applications, these guidelines require specific treatments based on factors such as whether mist is generated and whether it comes into contact with employees or the public. The treatments required vary depending on the category of recycled waste water: Tertiary disinfected or Secondary disinfected 23.
Tertiary disinfected water can come into contact with workers and is used in industrial refrigeration or air conditioning systems with cooling towers, evaporative condensers or mist-generating aerosols. This water goes through three steps: primary and secondary treatments, followed by filtration and finally, a tertiary (third) treatment that includes disinfection.
The disinfected water from Secundària 23 is intended for uses where it does not come into contact with workers or for industrial cooling or air conditioning systems without cooling towers, evaporative condensers or mist. This water must go through primary and secondary treatments and filtration.
Minnesota: Semiconductor production is on the rise in Minnesota, with more than 150 semiconductor manufacturing companies now operating in the state, a 13.5% increase from 2021 to 2023. In early 2024, Polar Semiconductor LLC, based in Bloomington, announced a $525 million expansion, with the goal of boosting the facility’s production by 50%. However, manufacturers should be aware that Minnesota is one of 14 states with water reuse regulations for industrial applications. Minnesota’s regulations are based on California’s Title 22 water recycling criteria, which were among the first detailed regulations designed to ensure that wastewater reuse is safe for human health.
Leaders in industrial water treatment technology:
From the summer of 2024, 33 US states are experiencing “moderate” to “extreme” drought. This affects more than 50 million people and with the continued impacts of climate change, this number will increase. Additionally, the demand for semiconductors to meet evolving technology needs coupled with manufacturing growth in the United States is leading to significant demand for water.
However, industrial water treatment technology is often neglected in the initial planning stages of these facilities.
“Many times, the scope of the wastewater infrastructure is a separate package and is not included upfront in the basic facility planning process,” says Andy Ahrendt, director of advanced manufacturing at PCL. “Having an industry expert like PCL who can design and build the wastewater project components is an advantage. We understand the process and how to design and build these facilities. We know what to ask of owners, operators and facility designers locations, and what to expect from the municipalities where we build”.
PCL Construction is no stranger to this type of installation, with Advanced water purification facility (AWPF) projects like EPWigua in El Paso, Texas currently underway. Texas is also growing rapidly as a top region for semiconductor manufacturing: Arizona and Texas together account for more than half of total investment and 35% of projected semiconductor manufacturing jobs.
“Many of the technologies and processes for treating public wastewater treatment facilities are the same in private industrial wastewater treatment facilities,” says Slota. “Having the expertise to design and complete both while reducing risk is a huge benefit to any client.”
With a significant backlog of successful water and wastewater infrastructure construction projects in municipalities across the United States, PCL is intimately familiar with providing innovative solutions to address each community’s unique water challenges, both for public and private clients.
“Sustainability has increasingly become a key consideration in site selection and design. In addition, water regulations are constantly changing at all levels, so it is crucial that manufacturers in growth collaborate with industry experts who understand both the value of their projects and the various regulations they face.Understanding the unique nature of each manufacturing plant and project, PCL’s collaborative approach enables teams thoroughly understand the needs specific water needs of each plant and identify the most sustainable ways to manage water use,” says Ahrendt.
