The semiconductor industry is facing increased scrutiny regarding its sustainability, prompting the establishment of the Semiconductor Climate Consortium during COP27 in 2022. With 60 founding members committing to achieving zero emissions by 2050, the focus is on addressing the environmental impact across the chip supply chain.
Challenges arise from the energy-intensive production of silicon, derived from sand through processes involving coal and wood chips. The sector’s substantial energy and water consumption, exemplified by TSMC’s strain on Taiwan’s resources, and environmental contaminants in the Bay Area, necessitate a careful approach to sustainability.
However, caution is advised, given the recent chip shortage and the economic and national security implications of localizing chip production. The CHIPS and Science Act in the U.S. emphasizes the need to balance sustainability concerns without hindering the industry’s momentum.
While the chip industry contributes a modest 0.1 to 0.2% of global carbon dioxide equivalent emissions, its pivotal role in various technologies supporting sustainability goals should not be overlooked. The economic impact of chips facilitates the adoption of sustainable technologies, positioning them as enablers for smart grids, renewable energy transitions, electric transportation, and more.
A meticulous approach to chip sustainability involves avoiding conventional regulatory hurdles that may impede the industry’s progress. The standard National Environmental Policy Act (NEPA) environmental review process, with potential litigation, could result in significant delays and increased costs. Instead, allowing one-time exceptions for swift initiation of fab constructions and upgrades is proposed.
Despite concerns about setting precedents, the chip industry has demonstrated a commitment to sustainability through goal setting and self-regulation. Major players like TSMC, Intel, and Samsung have invested in green initiatives, water recycling, and renewable energy usage, aligning environmental objectives with economic interests.
Flexibility from regulators is urged, especially in areas where the industry faces challenges. Given the long development history of chip production processes, adapting to more sustainable alternatives requires substantial research and development investments. Moreover, existing semiconductor supply chains are finely optimized for efficiency and cost, necessitating careful consideration to avoid disrupting competitiveness.
In conclusion, the chip industry stands at an inflection point, requiring a pragmatic and flexible approach to balance growth imperatives with sustainability goals. While addressing environmental concerns, regulatory measures should not unduly hinder the industry’s ability to meet economic and national security demands.
