A.T. Kearney Inc. (Minato-ku, Tokyo, Representative in Japan: Takefumi Harigaya) has released its white paper, "Chip In for Semiconductor Sustainability."

This paper points out the structural challenge that while semiconductor chips support the green energy transition, their manufacturing processes are inherently emissions-intensive and place a significant environmental burden. As client companies set net-zero targets, including Scope 3, semiconductor manufacturers are required to advance sustainable initiatives across a wide range of areas, including power usage, emissions, water usage, chemicals, and waste.

Specifically, it is shown that energy consumption accounts for up to 30% of fab operating costs, TSMC accounts for approximately 5% of Taiwan's total power consumption, and the market for semiconductor exhaust gas treatment systems is expected to double from approximately $850 million in 2023 to $1.7 billion in 2029. The paper advocates for the necessity of combining process optimization using AI/machine learning, renewable energy-compatible fab design, exhaust gas treatment, minimization of component transportation, and green chemistry.

Up to 30% is Energy, Power Load of Semiconductor Manufacturing Focuses on Decarbonization

The semiconductor industry supports the green energy transition for solar panels and electric vehicles, but the chip manufacturing process itself is emissions-intensive. As companies in sectors such as healthcare, automotive, technology, telecommunications, aerospace & defense, and finance, which rely on chips and data centers, set net-zero targets including Scope 3, semiconductor manufacturers are also being called upon for greater transparency and data disclosure.

The paper states that in greenfield design, by adopting green construction, green materials, green processes, and green energy from the initial construction phase, and integrating technologies such as smart sensors, energy usage, which accounts for up to 30% of fab operating costs, can be reduced. TSMC's consumption of approximately 5% of Taiwan's total power is also cited as an indicator of the significant power load in semiconductor manufacturing.

Doubling to $1.7 Billion by 2029, Exhaust Gas Treatment Market and Tax Incentives Boost Investment

Exhaust gas treatment systems are technologies that capture and neutralize harmful emissions generated during the chip manufacturing process. The paper suggests that in addition to dry bed treatment, wet scrubbing, and wet burn/wet technologies, long-term investments will be required, including retrofitting existing equipment with direct air capture (DAC), vapor recovery units (VRU), and blowdown recovery.

The market for semiconductor exhaust gas treatment systems is expected to double from approximately $850 million in 2023 to $1.7 billion in 2029. Furthermore, the U.S. Inflation Reduction Act (IRA) offers tax credits of up to 50% for energy efficiency retrofits of commercial buildings and up to 30% for the installation of solar panels, wind turbines, fuel cells, and energy storage equipment.

According to a cost-effectiveness analysis by the CCS Global Institute, CCS is projected to become economically viable between 2045 and 2050. Currently, the operating rate of carbon capture and storage capacity in the U.S. remains at 25%, but it is expected to expand by 50% in the next 10 years.

Prioritizing Six Measures, Investment Decisions Based on Implementation Difficulty and GHG Reduction Effect

The paper categorizes sustainability measures that semiconductor manufacturers and their partners can undertake into four categories based on implementation difficulty and greenhouse gas (GHG) impact. Measures that are easy to implement and have a small GHG impact include process optimization utilizing AI and machine learning.

Measures that are easy to implement and have a large GHG impact include renewable energy-compatible fab design (greenfield) and exhaust gas treatment systems. On the other hand, measures that are difficult to implement and have a large GHG impact include retrofitting existing facilities (brownfield), minimizing component transportation, and transitioning to green chemistry.

The transition to green chemistry is expected to progress over the next 10 to 20 years. The paper points out that the transition to semiconductor sustainability requires comprehensive solutions spanning policy, innovation, business strategy, and cross-industry collaboration, and is important not only from the perspective of environmental responsibility but also for cost reduction, regulatory compliance, and future preparedness.

- About the White Paper

White Paper Title: "Chip In for Semiconductor Sustainability"

URL: https://www.jp.kearney.com/issue-papers-perspectives/chip-in-for-semiconductor-sustainability

- Supervisors

Kakuyya Nishikawa, Senior Partner

Graduated from the Faculty of Engineering, The University of Tokyo. After working at a patent firm, joined A.T. Kearney. Supports M&A strategy to create new demand by adding new technological axes to current technological axes, and the creation of new value (business models, operational models) leveraging IoT.

Kiyoshi Takei, Principal

Completed MBA at MIT Sloan School of Management. Engaged in business strategy planning and partnership negotiations with overseas companies in the corporate planning department of Toshiba's (now Kioxia) semiconductor business before joining KEARNEY. Focuses on themes such as corporate strategy, business portfolio transformation, new business development, and M&A strategy, primarily in the telecommunications and high-tech fields. Capable of leading cross-border projects. Member of the Ministry of Economy, Trade and Industry's JAXA Committee.

About A.T. Kearney

A.T. Kearney (Global Brand Name: Kearney) has been a trusted partner for over 100 years as a leading global management consulting firm, serving more than three-quarters of the Fortune Global 500 companies and government agencies worldwide. With offices in over 40 countries, our greatest strength lies in our people. Upholding the "Impact, First" principle, we tackle our clients' most difficult challenges with original thinking and execution capabilities, driving transformation together. We entered Japan in 1972 and have provided integrated support from strategy formulation to transformation execution for leading companies across all major industries. For more information, please visit our website. https://www.jp.kearney.com/

FACT BOX

  • Source: PR TIMES
  • Category: 分析
  • Organizations: TSMC