Sustainability is one of the most, if not the most, challenging topics that the semiconductor industry is facing at a global scale. Global semiconductor industry is facing significant pressure from customers to decarbonize their value chain, and those who are unable to achieve emissions reduction expectation could be putting themselves at risk of losing competitiveness. 83% of emissions from semiconductor value chain is associated with electricity usage1, therefore adoption of low-carbon energy (LCE) is essential for semiconductor emissions reduction. This challenge is more acute in the APAC region, given its reliance on fossil-based power generation (with some of the most CO2 intensive power grids in the OECD).
To address this challenge, SEMI (in collaboration with McKinsey as Knowledge Partner) launched at COP28 the Energy Collaborative, a platform aimed at identifying key bottlenecks that the clean energy industry is facing to decarbonize the power grid by adding new low carbon energy sources into the power mix and, once the challenges are identified and prioritized, propose solutions with the aspiration to double or triple capacity additions in the period to 2030 (and beyond) to help meet the industry’s decarbonization targets.
Through this presentation, we hope to share some key findings from the work launched in major semiconductor markets for the semiconductor industry in APAC, and discuss potential actions the industry can take to shape the solution space in this important matter.
1 Source: SEMI – “Transparency, Ambition, and Collaboration: Advancing the Climate Agenda of the Semiconductor Value Chain”
