169 The sustainability of semiconductors has become a focal point, with efforts to enhance the eco-friendliness of chip manufacturing and usage gaining momentum. At COP27 in 2022, the Semiconductor Climate Consortium emerged, featuring 60 founding members committed to achieving a net-zero emissions target by 2050. The prominence of semiconductors as a target for sustainability initiatives is evident due to their widespread use and the anticipated growth in their numbers. The intricate supply chain of chips, spanning raw material extraction to transportation, production processes, and recycling, generates substantial emissions at various stages. Silicon, the fundamental material for chip fabrication, is conventionally produced in energy-intensive furnaces using a mix of coal and wood chips. The energy and water requirements for advanced chip manufacturing are significant, with the production of 3nm chips alone consuming nearly 8 billion kilowatt-hours annually. This heightened demand has visible impacts, such as TSMC, the world’s largest chip manufacturer, consuming a substantial portion of Taiwan’s electricity and water, leading to local shortages. Environmental contaminants from the industry have also resulted in toxic sites in certain regions. Despite these challenges, governments and semiconductor companies must approach chip sustainability cautiously. The recent chip shortage underscored the economic and national security benefits of increasing and localizing chip production. The CHIPS and Science Act in the U.S., passed earlier this year, has spurred momentum behind chip manufacturing, and addressing sustainability issues should not impede this progress. While emissions from the chip industry account for only 0.1 to 0.2% of global carbon dioxide equivalent emissions, the economic impact they generate is considerable. Chips play a pivotal role in enabling various technologies that contribute to global sustainability goals, including smart grids, renewable energy transition, intelligent transportation, low-carbon logistics, video conferencing, smart agriculture, drug discovery, and energy-efficient manufacturing. A careful approach to chip sustainability involves considering regulatory measures that balance environmental concerns with the industry’s need for efficiency and speed. Traditional regulatory pathways, such as National Environmental Policy Act (NEPA)-triggered environmental reviews, may introduce delays and increased costs. One-time exceptions, allowing for expedited fab constructions and upgrades, could be a pragmatic solution to balance sustainability goals with economic imperatives. The chip industry has demonstrated a commitment to sustainability through goal setting and self-regulation. Leading companies like TSMC, Intel, and Samsung invest in green initiatives, water recycling, and renewable energy, showcasing tangible progress. Acknowledging the industry’s ongoing efforts, regulators should be flexible in considering sustainability metrics and avoid imposing unrealistic expectations that could hinder competitiveness. Furthermore, as the semiconductor industry undergoes restructuring for security reasons, a thoughtful approach is needed to prevent disruptions in the supply chain. Brownfield chip production, involving retrofitting older fabs, should be approached with flexibility, considering the economic viability and competitiveness of these facilities. In conclusion, the chip industry’s growth is imperative for economic and national security, but this growth must align with sustainability goals. At this inflection point, a flexible and pragmatic approach is essential to balance environmental concerns with the industry’s dynamic needs. You Might Be Interested In New Luxury Competitor to Tesla Unveils Debut Electric SUV Kim Jong Un impressed with Russian aviation tech Electric Vehicle Adoption Projected to Soar: What’s Driving the Surge? CES 2023 Day 1: Home entertainment takes center stage LocaMos Global AG Blends MarTech and Blockchain to Revolutionize Marketing and Boost Small Businesses Singapore Sees 92% AI Adoption Surge in Investments