Arizona’s lifeline for chip manufacturing is drying up

<figure> <img alt="A view of a reservoir with a low water level." data-caption="Water intake towers at the Hoover Dam stand next to a bleached &quot;bathtub ring&quot; on the banks of Lake Mead on September 1st in Lake Mead National Recreation Area, Arizona. The reservoir has hit historic lows as the Colorado River experiences unprecedented drought. | Photo: Getty Images" data-portal-copyright="Photo: Getty Images" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/gettyimages-2293067544.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" /> <figcaption> Water intake towers at the Hoover Dam stand next to a bleached "bathtub ring" on the banks of Lake Mead on September 1st in Lake Mead National Recreation Area, Arizona. The reservoir has hit historic lows as the Colorado River experiences unprecedented drought. | Photo: Getty Images </figcaption> </figure> <p class="wp-block-paragraph">Arizona, an <a href="https://www.theverge.com/features/825207/semiconductor-chip-manufacturing-new-silicon-valley">epicenter for the bipartisan push to revive American chip manufacturing</a>, is about to <a href="https://www.npr.org/2026/08/31/nx-s1-5945480/arizonas-taps-wont-run-dry-but-water-bills-will-go-up-under-federal-plan-for-colorado-river">lose more than a quarter</a> of the water it typically pulls each year from the Colorado River. </p> <p class="wp-block-paragraph">The 1,400-mile waterway is a crucial lifeline for the region and other western states. A recent federal decision on how to manage its dwindling flow hits Arizona, and its already drought-prone desert communities, particularly <a href="https://www.nytimes.com/2026/08/23/us/arizona-canals-colorado-river.html">hard</a>. The river provides <a href="https://environment.arizona.edu/news/where-does-our-water-come">more than a third</a> of the Grand Canyon State's water. Arizona has been a manufacturing hub since the start of the semiconductor industry, and now it's where TSMC and Intel are expanding massive factories to m …</p> <p><a href="https://www.theverge.com/science/993522/water-chip-semiconductor-manufacturing-colorado-river">Read the full story at The Verge.</a></p>