How semiconductor firms are chipping in on sustainability

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Corporate and regulatory scrutiny are pushing chipmakers to embed ESG in their facility operations

www.us.jll.com/, Jul. 19, 2023 – 

Semiconductor manufacturers that have long come under fire for their energy-intensive operations are now actively exploring solutions to decarbonize the sector.

The urgency to address sustainability concerns stems in part from the artificial intelligence (AI) boom, which is expected to boost the production of chips that deliver enhanced processing power.

There's also heightened scrutiny on semiconductor companies to meet environmental, social and governance (ESG) targets, including from governments with net-zero legislation.

A notable example is Taiwan, which pledged in February to reduce carbon emissions and reach net zero by 2050 despite potential implications on its status as the world's largest semiconductor manufacturer.

"Semiconductor companies have the responsibility to achieve their corporate ESG targets, while complying with government legislation and keeping business operating expenses low," says Philip Goh, Executive Director, SEMI Practice Lead, Asia Pacific, JLL.

Finding efficiencies

Among the most common measures companies are implementing focus on driving energy efficiency in day-to-day facility operations.

Take U.S. computer giant Dell, which reuses wastewater generated during chip manufacturing for landscape irrigation at its facility in Xiamen, China.

Initiatives like this can reduce utility consumption by up to 30%, JLL data shows. But retrofitting an existing facility with the right infrastructure, such as pipes and flow switches, poses considerable challenges compared to incorporating them into new constructions.

"New plants are built at the best suitable sites with access to optimum supply chain capabilities and ideal infrastructure of the highest energy efficiency," says Goh. "Existing plants, on the other hand, have to adapt and change quickly because of technologies emerging every three to five years."

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