TAIPEI - Taiwan will step up water usage curbs from June 1 for the major chip making hub of Hsinchu in a battle on islandwide drought, should there be no significant rain by month-end, the government said on Wednesday.

The economy ministry said it would raise the drought level to its highest if there was not enough rainfall. The red alert status would require companies in the Hsinchu science park to trim water usage by 17%.

The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), is located in Hsinchu.

Taiwan is in the midst of its worst drought in more than half a century after no typhoons directly hit the island last year. This year rainfall has also been low and the outlook is not optimistic.

  - Reuters