Drought in Taiwan Pits Chip Makers Against Farmers

The island is going to great lengths to keep water flowing to its all-important semiconductor industry, including shutting off irrigation to legions of rice growers.

HSINCHU, Taiwan — Chuang Cheng-deng’s modest rice farm is a stone’s throw from the nerve center of Taiwan’s computer chip industry, whose products power a huge share of the world’s iPhones and other gadgets. This year, Mr. Chuang is paying the price for his high-tech neighbors’ economic importance. Gripped by drought and scrambling to save water for homes and factories, Taiwan has shut off irrigation across tens of thousands of acres of farmland. The authorities are compensating growers for the lost income. But Mr. Chuang, 55, worries that the thwarted harvest will drive customers to seek out other suppliers, which could mean years of depressed earnings.