The semiconductor industry's heavy reliance on water in regions with scarcity, coupled with rising demand driven by AI development, necessitates sustainable water management to mitigate risks and support local communities and supply chains. Key points: Water is an essential input to the semiconductor (“semi”) manufacturing process, which takes place on a significant scale across Asia. Semis are a vital component in the development of Artificial Intelligence (“AI”), and demand is expected to continue to increase. The high concentration of semi fabrication facilities in areas of water scarcity poses considerable internal and external risks. Semiconductor manufacturers must explore approaches to water use that protect local stakeholder communities and ensure a reliable supply chain.