Greenpeace says chip industry electricity consumption to more than double by 2030, meaning firms must cut emissions
- Greenpeace East Asia said it is now time for chip industry suppliers and component makers to step up to the plate on carbon emissions
- Chip manufacturing is energy-intensive due to a long and complex production process, and currently relies heavily on fossil fuels.
The global semiconductor manufacturing industry is projected to consume 237 terawatt hours (TWh) of electricity by 2030, more than doubling its total power usage in 2021 and roughly equivalent to Australia’s electricity consumption in 2021 of 240TWh, so firms must work harder to cut emissions, according to a new Greenpeace report.
The industry is on track to emit 86 million tons of carbon dioxide equivalent (CO2e) in 2030, more than double Portugal’s total emissions of 40.8 million tons in 2021 amid rising demand globally for electronics. Electricity consumption is the single biggest source of these skyrocketing emissions, according to a report published by environmental group Greenpeace East Asia on Thursday.
With more electronics giants like Apple and Microsoft committing to reduce their climate impact to help limit global warming, Greenpeace East Asia said it is now time for suppliers and component makers to step up to the plate. Microsoft aims to be carbon negative by 2030 and Apple wants its entire supply chain to be carbon neutral by 2030.
The environmental group urged the world’s major semiconductor manufacturers, including Apple chip supplier Taiwan Semiconductor Manufacturing Co (TSMC) and South Korea’s biggest semiconductor maker Samsung Electronics, to set more ambitious carbon reduction and renewable energy targets.
“Both Samsung and TSMC consume more electricity than some entire countries, but they have largely escaped scrutiny in the climate debate despite their reliance on coal and other fossil fuels,” said Wu Xueying, global tech project lead at Greenpeace East Asia.
“TSMC and Samsung need to target 100 per cent renewable energy worldwide by 2030, just as their clients Apple and Microsoft have done,” she said.
The Greenpeace report comes as the semiconductor industry gears up for a recovery after a recent supply glut. Advanced chips power everything from the latest smartphones to systems within electric vehicles. In 2021, the global semiconductor market was worth US$590 billion and this is forecast to double by 2030, according to consultants McKinsey & Co.