The sustainability in semiconductor industry is under more scrutiny than ever. As demand for electronics grows, so does the environmental impact of semiconductor production. High water use, fossil fuel dependency, greenhouse gas emissions, and e-waste all contribute to mounting sustainability challenges. Semiconductor companies must now take long-term action to reduce emissions, cut power consumption, and adopt green technologies that support a sustainable future.
Modern semiconductor production is resource-intensive and energy-hungry. Fabrication plants consume large amounts of electricity and water. Many rely heavily on fossil fuels, contributing to high levels of greenhouse gas emissions.
Increased awareness of this environmental impact is pushing semiconductor companies to rethink how chips are made. Leading firms such as Taiwan Semiconductor Manufacturing Company (TSMC) have already set ambitious goals to reduce emissions in global operations by 2040.
The energy used to power cleanrooms, operate equipment, and maintain temperature control is still largely sourced from fossil fuels.
What can be done:
Invest in renewable energy contracts. Solar and wind can reduce reliance on fossil fuels while cutting long-term operational costs.
The power consumption of semiconductor fabs is immense, with each advanced node requiring more energy than the last.
What can be done:
Upgrade to more efficient manufacturing equipment. Use AI to monitor energy use and optimise processes.
Fabrication facilities use vast amounts of ultrapure water to clean silicon wafers. This stresses local water supplies, especially in areas already facing shortages.
What can be done:
Install water recycling systems and reduce waste by improving process efficiency.
Many chemicals used in chip production are toxic and hazardous if improperly managed.
What can be done:
Switch to safer alternatives through green semiconductor manufacturing practices. Improve containment, treatment, and disposal methods.
Discarded chips and electronics often end up in landfill. Recovering rare metals from old components remains difficult.
What can be done:
Design for disassembly. Encourage take-back schemes. Invest in better methods to recycle semiconductors efficiently.
Tracking the ethical and environmental practices of suppliers is difficult, especially across global networks.
What can be done:
Use blockchain and other traceability tools. Work only with suppliers who meet strict environmental standards.
TSMC and other major players have started shifting their facilities to run on renewable energy. This marks a meaningful shift away from fossil fuel dependence and signals broader change across the industry.
Sustainable semiconductor manufacturing includes designing chips and devices to last longer, be modular, and support easy repair or reuse. This reduces waste and lowers demand for raw materials.
Breakthroughs in green technologies and material science are helping semiconductor companies reduce environmental risks. For example, new etching techniques can reduce chemical use and enable faster production with less energy.
Bodies like SEMI and national governments are pushing for tighter environmental regulations. These standards help level the playing field and ensure more companies commit to sustainability targets.
There’s no quick fix for the sustainability challenges facing the industry. But steady, coordinated action across R&D, supply chains, production, and end-of-life planning will reshape how the world’s chips are made.
To stay competitive and meet future regulations, semiconductor companies must embed sustainability into their business models now. The focus is shifting from short-term efficiency to long-term resilience and environmental responsibility.
By Dan Ward, Senior Search Consultant
Reach out to see how Dan can support you in your search for talent:
LinkedIn: Dan Ward
Email: dan.ward@delverec.com
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