The semiconductor industry is integral to our digital world, driving innovations that underpin the technologies we rely on daily. However, the sector faces significant environmental and operational challenges that necessitate a sustainable and resilient approach to manufacturing.
Environmental Impact of Semiconductor Production
Semiconductor manufacturing is energy-intensive, with new fabrication plants consuming up to 100 megawatt-hours per hour, surpassing the energy usage of automotive plants and oil refineries. This results in substantial waste, greenhouse gas emissions, and a considerable carbon footprint. In 2020 alone, the industry emitted 41 million tonnes of CO2, and projections suggest that by 2030, semiconductor manufacturing will consume 237 TWh of electricity globally, mirroring Australia’s total electrical consumption in 2021.
The increasing importance of electronics has prompted manufacturers to consider the sustainability of their operations. Recent findings by McKinsey indicate that the semiconductor industry’s efforts to align with the 2016 Paris Agreement are inadequate. Firms lagging in adopting eco-friendly practices risk facing regulatory penalties and losing environmentally conscious customers.
The Global Semiconductor Crisis and the Push for Resilience
The pandemic-induced semiconductor shortage highlighted the fragility of the global supply chain. A confluence of demand surges, factory shutdowns, geopolitical tensions, and reliance on semiconductor imports disrupted production. The crisis severely impacted industries, notably consumer electronics and automotive, leading to significant financial losses.
In response, there’s a global shift towards diversifying and strengthening semiconductor supply chains. The US and EU are taking strategic steps to reduce dependency on Asian manufacturing hubs and foster a low-carbon semiconductor industry.
A Three-Step Approach to Sustainability and Resilience
Schneider Electric proposes a comprehensive strategy to achieve sustainable semiconductor manufacturing:
Strategize: Establishing a carbon emissions baseline and crafting a net-zero plan are crucial. This step involves assessing current energy performance, evaluating the feasibility of sustainable practices, and planning for energy-efficient infrastructure.
Digitize: Implementing a digital hub to monitor resource usage enables informed decision-making and progress tracking towards sustainability goals. This approach leverages AI and cloud-based analytics for efficient energy management.
Decarbonize: Actionable steps based on strategic planning and digital insights can significantly reduce carbon footprints. Examples include electrifying transport fleets, installing renewable energy sources, and optimizing energy use with AI.
Collaborative Efforts for Industry-Wide Sustainability
Achieving sustainability in the semiconductor sector requires collaboration. Schneider Electric’s partnership with Intel and Applied Materials through the Catalyze program exemplifies industry-wide efforts to promote renewable energy and operational models that support net-zero ambitions.
The Business Case for Sustainable Manufacturing
Adopting sustainable practices not only addresses environmental concerns but also enhances profitability. Sustainability can lead to cost reductions and up to a 60% increase in operating profits. As the industry moves beyond the semiconductor crisis, manufacturers have a golden opportunity for growth through sustainability, unlocking untapped energy efficiency potential.
In conclusion, the semiconductor industry stands at a crossroads, where the adoption of sustainable manufacturing practices is both an environmental necessity and a strategic business decision. With the support of industry partnerships and innovative solutions, semiconductor manufacturers can navigate the challenges ahead, ensuring a greener, more resilient future.
