Taiwan Semiconductor Manufacturing Co. is pushing to reach net-zero emissions by 2050, the chipmaker announced last week.

The company set a target to reach peak carbon emissions this year, reduce them to 2020 levels by 2030 and to use renewable energy for 60% of global operations by 2040.

TSMC committed to reducing emissions across its supply chain, including launching a 20-year procurement agreement for 20,000 gigawatts of renewable energy to secure stable prices for suppliers.

As part of its strategy to drive emissions reduction, more than 50 suppliers have also signed a greenhouse gas reduction agreement, making up nearly 90% of TSMC’s supply chain emissions. The company did not specify, however, whether the agreement was binding.

TSMC’s targets are largely in line with other chipmakers with U.S. operations. For example, in 2022 Intel announced a 2030 target to reach net-zero for its scope 1 and scope 2 emissions by 2040, and scope 3 emissions by 2050.

Semiconductor manufacturing accounts for roughly 0.3% of total global emissions, according to a 2023 report from Boston Consulting Group. If left unchecked amid rising demand, the report found that emissions in the industry would continue to climb by 8% annually, reaching their peak in 2045.

Even as more chipmakers are coming out with plans to cut emissions, rising demand makes it more difficult for the industry to hit sustainability targets. The rise of AI and data centers further underscores this, given their high energy usage. In the U.S., data centers consume 1.7 billion liters of water per day.

The semiconductor industry’s push for sustainability could be impacted by priority shifts under the Trump administration. Chip manufacturing emissions are regulated under the Clean Air Act, legislation that falls under the administration’s deregulation efforts.

By: DocMemory
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