April 18, 2023

As cutting-edge semiconductor manufacturers ponder relocating more back-end assembly and testing onshore from the Asia/Pacific area, a new Deloitte analysis identifies sustainability as a critical industry problem. This is especially important as Earth Day approaches and the drive on decreasing chip carbon footprints rises.

According to the research, the United States and Europe have set ambitious objectives to increase their domestic chip manufacturing capacity, with the United States intending to increase its share from 11% in 2020 to 30% in 2030, and Europe aiming to increase its share from 9% to 20% over the same time period.

However, because the global chip industry is predicted to quadruple in size over this time period, semiconductor businesses must evaluate possible risks and obstacles as they diversify, particularly in terms of sustainability. According to Deloitte experts, the chip business is likely contributing to climate change, with each new generation of chips consuming more energy, water, and greenhouse emissions than the previous generation.

While some semiconductor businesses have taken steps toward sustainability, such as introducing recycling technology and setting net-zero objectives, not enough chip companies are concentrating on it. According to the analysis, five semi-companies with a combined market valuation of more than $900 billion have not committed to net-zero objectives until mid-2022.

The sources for this piece include an article in TechRepublic.