Navigating the Green Chip Revolution: A Look at Sustainability in the Semiconductor Industry
Sustainability has become a top priority in semiconductor manufacturing today, as semiconductors’ ever-growing usage across industries continues to present significant environmental implications.
In 2023, global carbon dioxide emissions reached a new record high of 37.55 billion metric tons, with 75% directly caused by semiconductor manufacturing processes. Some steps have already been taken by fabs to reduce emissions—but not nearly enough. According to one report, current commitments to minimize semiconductor manufacturing emissions are insufficient to reach net zero in the industry by 2050. Semiconductor emissions are forecasted to overshoot the carbon budget for the 1.5°C pathway by 3.5 times, based on the current trajectory.
Embracing better sustainability practices can help reduce these negative environmental impacts, mitigating harm to local ecosystems and contributing to overall environmental conservation—all without sacrificing speed and quality of production.
In this blog post, we will discuss the current environmental impact of semiconductor manufacturing in three major areas, various green initiatives that can mitigate negative impacts, and what the future of sustainability looks like across the industry.
Sustainability Initiatives for Semiconductor Manufacturing
Sustainability strategies such as energy efficiency improvements, water conservation, and waste reduction help fabs optimize their resource usage, ensure long-term availability, and reduce their dependency on finite resources. By combining these efforts, the semiconductor industry will be able to make significant strides in decreasing emissions and improving the environmental impact of its manufacturing processes. Let’s explore these initiatives in more detail.
- Energy & Resource Efficiency
The semiconductor industry is a substantial consumer of energy. Every hour, fabs consume new record high of 37.55 billion metric tons, and larger fabs use up to 100 megawatt-hours of power. This high level of consumption also contributes to high operating costs, with some fabs spending nearly 30% of their costs on electricity alone. This means that improving energy efficiency will not only help mitigate negative environmental impacts, but will also improve the fab’s overall cost effectiveness as well.
The semiconductor industry also relies on various resources, including 17 rare earth elements and energy-intensive processes relying on fossil fuels. By adopting renewable power options, fabs can reduce overall production costs. In fact, a report by the International Energy Agency (IRENA) found that 62% of total renewal power sources produced lower costs than the cheapest new fossil fuel option in 2020.
Investing in greener alternatives is just one way to improve energy and resource usage. Manufacturers can also adopt energy management systems to reduce production costs and energy usage. Another helpful step to take is to collaborate with suppliers to promote energy-efficient designs and materials. This way, all parts of the semiconductor ecosystem can work together to achieve their sustainability goals and improve their environmental footprint.
- Water Conservation
Water is a vital resource in semiconductor manufacturing, and effective water management is essential for sustainability. Equipment used in semiconductor manufacturing generates a large amount of heat, with water serving as a cooling agent to ensure machines operate at the right temperature and that sensitive components remain damage free.
The average semiconductor fab consumes over 5 million gallons of water per day. In some cases, such as with Taiwan Semiconductor Manufacturing Company (TSMC), a single fab can use 8.9 million gallons daily, accounting for nearly 3% of a city’s water production. Globally, the semiconductor industry consumes an estimated 1.2 million megaliters of water annually. This massive amount of water usage in semiconductor manufacturing demonstrates the urgent need for initiatives to minimize water usage and implement water recycling technologies.
Improving water management in semiconductor manufacturing goes beyond simply reducing water usage. By adopting advanced water recycling technologies and optimizing water usage in manufacturing processes, the semiconductor industry can significantly reduce its environmental footprint. Some of these solutions include water recycling systems that minimize freshwater consumption and reduce wastewater, and advanced cooling technologies that require less water or alternative cooling methods.
This level of water conversation practice optimizes water throughout the entire manufacturing process. Additionally, manufacturers can go a step further by collaborating with local communities and regulatory agencies to ensure responsible water management practices are being emphasized and championed.
- Waste Reduction and Recycling
Waste reduction and recycling are critical in the semiconductor industry to address the substantial generation of chemical and electronic waste (e-waste). Semiconductor manufacturing produces large quantities of waste, including hazardous waste, wastewater, and solid waste. For example, in 2022, the Semiconductor Manufacturing International Corporation alone generated over 58,000 metric tons of hazardous waste and over 46,000 metric tons of solid waste.
This highlights the pressing need for more effective waste reduction strategies and recycling programs to mitigate the environmental impact of semiconductor production. And as semiconductor manufacturing continues to increase, so will waste generation, so the waste management industry will need to partner with fabs to meet this demand and prevent bottlenecks in semiconductor production.
There are many replacement options and opportunities for a variety of hazardous substances used in the manufacturing process. For example, manufacturers can use Fluorine Argon Nitrogen (FAN) gas mixture for etching, which has a significantly lower global warming potential and a shorter atmospheric lifetime. The semiconductor industry can significantly mitigate its environmental impact by investing time into uncovering alternatives, contributing to global sustainability efforts.
The industry can also adopt several other initiatives with a specific focus on waste reduction in order to improve its environmental impact. A great first step would be to research and implement waste reduction and recycling programs to minimize hazardous waste generation and maximize material recovery. After establishing the program, manufacturers can continue to add additional features like pollution prevention measures, cleaner production techniques and safer alternatives for hazardous chemicals.
A Sustainable Future for Semiconductors is Made Possible Today
Sustainability will continue to be an important initiative in the semiconductor industry, and meeting sustainability goals uncovers both challenges and opportunities.
As experts anticipate substantial growth in the utilization of semiconductor chips in renewable energy markets, with annual growth rates between 8% and 10% projected until 2027, semiconductors remain a key player in driving sustainability. By creating more green technologies, the industry’s innovations play a pivotal role in reducing its global carbon footprint. At the same time, the industry must also navigate complex regulatory requirements and increasing consumer demand for environmentally responsible products.
Every day, positive strides are being made towards achieving a more sustainable semiconductor landscape. Some companies are reaching a nearly 98% reduction in water usage by adopting more efficient systems. Additionally, an analysis by Deloitte predicts a 15% decrease in energy consumption per dollar of revenue through 2024, driven by a higher percentage of renewable energy usage within the industry. With the creation of organizations like Semiconductor Climate Consortium, the industry has made formal efforts that focus on collaborating with other companies to reduce greenhouse gas emissions.
By engaging in these opportunities and committing to ongoing improvement, the semiconductor industry can play a significant role in addressing global environmental challenges. The call to action is clear: the path to a more sustainable future requires collective effort and unwavering dedication to innovation and environmental stewardship. The first step? Engaging with the right partner.
Your Green Goals Require the Right Partner
Sustainability is not just about short-term progress, but is also about ensuring long-term viability and resilience. By adopting sustainable practices, companies can reduce operational costs and mitigate risks associated with resource scarcity, emissions, and regulatory uncertainties. Not only will prioritizing sustainability fulfill ethical responsibilities but will also enhance company reputation, build trust with customers, and attract environmentally-conscious investors.
Companies that invest in partnerships that prioritize sustainability initiatives gain a competitive edge by delivering products with a lower environmental footprint, meeting evolving consumer preferences, and accessing new markets. That’s where we come in.
AES is committed to more sustainable practices, products, and consolidation of materials to contribute to the industry’s ongoing environmental initiatives and accelerate the transition to a sustainable future. Let us help you improve your semiconductor manufacturing processes with ultra high purity gas delivery and purification solutions that power your productivity and enhance your efficiency. Contact us today.
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