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Chip Talk > Greening the Silicon: Sustainability Initiatives in the Semiconductor Supply Chain

Greening the Silicon: Sustainability Initiatives in the Semiconductor Supply Chain


The semiconductor industry, a cornerstone of modern technology, has been increasingly focusing on sustainability in recent years. As global attention shifts towards environmental concerns, semiconductor companies are implementing various initiatives to reduce their ecological footprint and ensure responsible resource management. This blog post explores the latest sustainability trends in the semiconductor supply chain and their implications for the industry.

1. Renewable Energy Adoption

One of the most significant sustainability trends in the semiconductor industry is the widespread adoption of renewable energy sources.

  1. TSMC, the world's largest contract chipmaker, has committed to using 100% renewable energy in its operations by 2050[1]. In 2022, the company signed a 20-year contract with Ørsted for the entire production of two offshore wind farms in Taiwan[2].
  2. Intel aims to achieve 100% renewable electricity use across its global operations by 2030[3].
  3. Samsung Electronics plans to match electric power needs with renewable energy for all its operations in the US, Europe, and China by 2027[4].

2. Water Conservation and Recycling

Semiconductor manufacturing is a water-intensive process, making water management a crucial aspect of sustainability efforts.

  1. Intel has set an ambitious goal to achieve net positive water use by 2030, by conserving water and returning more fresh water than it uses[3].
  2. TSMC implemented a water recycling rate of 86.7% in 2021, aiming to reach 100% wastewater recycling at its advanced process technology fabs[1].
  3. Micron Technology has committed to reducing its water usage by 75% from its 2016 baseline by 2030[5].

3. Reduction of Greenhouse Gas Emissions

Semiconductor companies are also focusing on reducing their greenhouse gas emissions throughout their supply chains.

  1. AMD has set a goal to reduce greenhouse gas emissions by 50% from 2020 to 2030[6].
  2. Nvidia aims to source 65% of its electricity from renewable energy by 2025[7].
  3. GlobalFoundries has committed to reducing its greenhouse gas emissions by 25% by 2030, using 2020 as the baseline[8].

4. Sustainable Packaging and Waste Reduction

Efforts are being made to reduce waste and implement more sustainable packaging solutions.

  1. Intel has set a goal of zero total waste to landfill by 2030[3].
  2. TSMC achieved a waste recycling rate of 95.7% in 2021, with a goal to reach 98% by 2030[1].
  3. Apple, a major customer in the semiconductor supply chain, has committed to 100% recycled or renewable materials in its products and packaging[9].

5. Responsible Sourcing of Materials

Ensuring the ethical and sustainable sourcing of raw materials is becoming increasingly important in the semiconductor industry.

  1. The Responsible Business Alliance (RBA), which includes many major semiconductor companies, has established the Responsible Minerals Initiative to promote the responsible sourcing of minerals in global supply chains[10].
  2. Intel has achieved conflict-free status for its microprocessors and chipsets since 2017[11].
  3. TSMC requires all its suppliers to sign a "Supply Chain Code of Conduct Commitment Letter" which includes environmental protection clauses[1].


The semiconductor industry is making significant strides in implementing sustainability initiatives throughout its supply chain. From renewable energy adoption and water conservation to reducing greenhouse gas emissions and ensuring responsible sourcing, these efforts are reshaping the industry's environmental impact. As sustainability becomes increasingly crucial for both environmental preservation and business success, we can expect these trends to intensify and evolve in the coming years.

References:

[1] TSMC. (2022). "TSMC 2021 Corporate Social Responsibility Report."

[2] Ørsted. (2022). "Ørsted signs long-term power purchase agreements with TSMC."

[3] Intel. (2022). "2030 RISE Strategy and Goals." [

4] Samsung Electronics. (2022). "Samsung Electronics' 2022 Sustainability Report."

[5] Micron Technology. (2022). "2022 Sustainability Report."

[6] AMD. (2022). "Corporate Responsibility Report."

[7] Nvidia. (2022). "2022 Corporate Social Responsibility Report."

[8] GlobalFoundries. (2022). "Corporate Responsibility Report 2021."

[9] Apple. (2022). "Environmental Progress Report."

[10] Responsible Business Alliance. (2023). "Responsible Minerals Initiative." [11] Intel. (2022). "Responsible Minerals Sourcing."

Published October 18, 2024

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