This blog post was co-authored by Ronald Payumo, Matthieu Dessaux (both Global Solutions Architects at Schneider Electric) and Maryam Niakouei (Head of Semiconductor Marketing in Schneider Electric).
The semiconductor industry needs to balance demand with environmental impact
The semiconductor industry faces significant sustainability challenges. Semiconductor chips are critical for modern life, powering technologies the world relies on, from communication systems to smartphones. However, scaling up production and constructing new fabs to meet demand has a considerable environmental impact.
The industry emits an estimated 500Mt of carbon dioxide equivalent (CO2e) annually (100Mt from scopes 1 and 2 and 400Mt from scope 3). To reach the Paris Agreement’s climate goals, semiconductor companies will need to reduce their energy consumption by 50 percent in the next decade. Making progress to meet this target requires efforts from manufacturers and suppliers who can balance climate demands and consumer demands.
Collaboration is the key to driving sustainable progress within the semiconductor industry
Collaboration and partnerships are necessary for improving sustainability and protecting the environment. By uniting efforts, organizations can pool resources, share expertise, and drive innovation, resulting in effective and scalable solutions.
The 2024 theme at Semicon West focused on the growing global climate risks and the importance of collaboration for a stronger future. This theme of “stronger together” echoed powerfully the indispensable role of a collective effort to confront sustainable challenges. A recent SEMI study revealed 80% of the industry emissions are from the supply chain and 83% of the supply chain emissions are from electricity usage.
The shift towards low-carbon energy sources is essential for reaching emission reductions goals, and the Catalyze program emerges as a beacon for companies eager to collaborate and increase access to renewable electricity across the semiconductor ecosystem.
Key reasons why collaboration advances sustainability:
- Resource sharing: Semiconductor manufacturers already share many of the same sustainability objectives, such as reducing their environmental impact and increasing renewable energy use. By pooling their knowledge and resources, they can avoid redundant efforts and establish good environmental practices based on shared experiences.
- Innovation acceleration: Meeting sustainability goals requires new solutions. Collaborations can foster creativity and innovation by bringing together diverse perspectives and expertise. This can lead to opportunities that individual manufacturers might not pursue alone.
- Global impact: Joint initiatives can be more effective than individual efforts for tackling widespread global changes. They leverage the strength of multiple stakeholders to create and implement large-scale solutions.
Catalyze supports sustainable energy initiatives for the semiconductor value chain
The Catalyze program, managed by Schneider Electric, unites industry leaders, on a strategic initiative to help ensure the semiconductor industry can thrive while positively contributing to the world staying on track to reaching the 1.5°C Paris Agreement. The initiative focuses on accelerating adoption of renewable electricity by providing support and critical resources to the global semiconductor value chain.
Replacing fossil-fuel-based power with renewables like solar and wind reduces greenhouse gas emissions. However, many manufacturers and suppliers lack the resources and expertise to initiate this transition. Catalyze closes these gaps by offering training and procurement support, enabling suppliers to successfully enter the renewable electricity market.
Catalyze has grown from two founding sponsors to seven sponsor companies providing decarbonization support for their suppliers. The growing consortium of Catalyze sponsors reflects a shared commitment to collaborate on decarbonizing the value chain.
The Catalyze program includes:
- Opportunities to network: Catalyze provides a platform for stakeholders to connect, share ideas, and form strategic partnerships.
- Knowledge exchange: The program facilitates the exchange of best practices and the latest research. It provides access to resources, renewable electricity market learning opportunities, and expert guidance.
- Actionable solutions: Catalyze helps turn sustainability goals into outcomes by focusing on practical, scalable solutions.
- Supply chain decarbonization: The transition to cleaner energy addresses scope 2 emissions for suppliers, which in turn addresses scope 3 emissions for Catalyze program sponsors.
Advancing sustainability in the semiconductor industry requires collaboration and partnerships that bring together diverse expertise. Explore how Catalyze can help your organization transition to a cleaner, greener future.
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