This research work investigated the physical and chemical properties of a new type of wastewater produced from the semiconductor industry. The wastewater generated from indium phosphide (InP) wafer backgrinding and sawing processes was characterized in term of its particle size distribution (PSD), zeta potential, suspended and dissolved solids, total organic carbon, and turbidity. The wastewater contained high concentration of fine InP dusts with a size ranging from 0.07 - 1.44 mm. In spite of its high concentration of suspended solids resulting in high turbidity up to 371 NTU, the wastewater contained very low organic matters (TOC < 2.2 mg l(-1)) and other inorganic impurities (SO4(2-) < 0.21 mg l(-1) and Na+ < 0.16 mg l(-1)). Based on the experimental data collected, the treatment technologies using chemical precipitation and ultrafiltration were applied to the wastewater. Both processes could effectively remove InP particles from the wastewater, however the coagulants in chemical precipitation introduced other ionic contents into the process resulting in difficulties of water recycling in the later stage. In comparison, ultrafiltration was more promising for InP wastewater treatment and recycling. Based on the results of this study, a full-scale UF system was built in a local semiconductor plant and it has successfully reclaimed water from the InP wastes for the past six months without any quality issue being raised.