Cutting the Climate Costs of Microchip Manufacturing

By Taha KhanReviewed by Frances BriggsAug 27 2025

Semiconductors power modern life, but are energy-, water-, and chemical-intensive. This piece examines the sector’s climate footprint and the fixes: from renewable power and water recycling to process and design efficiency, and policy-led collaboration.

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Semiconductors: The Basics

Electronic devices like smartphones, laptops, and computers have become essential parts of modern life. Whether for work or entertainment, these devices are used extensively every day. Semiconductors are the building blocks behind digital electronics, used in integrated circuits, microchips, and more.

Semiconductors control electrical conductivity by acting as insulators or conductors, depending on certain pre-set conditions, allowing switching, amplification, and signal processing.

In the electronics industry, commonly used materials for semiconductors include GaN, CdTe, Si, perovskites, and copper indium gallium selenide (CIGS). ¹

But semiconductors are needed in more than electronics. They are also used in healthcare, transportation, climate modeling, and industrial automation. 

Similarly, electric vehicles depend on powerful semiconductors for battery management and efficient energy conversion. Solar inverters, wind turbines, and smart grids all require microchips for control and optimization. ^{2, 3}

The Environmental Impact of Semiconductor Manufacturing

However, vast amounts of energy are needed to produce semiconductors. One extreme estimate suggests semiconductor production accounts for approximately 30 % of global greenhouse gases (GHGs). ¹ 

Further, making microchips requires precise processes, such as photolithography, etching, and deposition, carried out in cleanroom environments. Maintaining these controlled conditions and powering the advanced equipment requires large amounts of electricity. 

Chip fabrication also relies heavily on water for rinsing wafers and cleaning tools between steps. Producing the quantities of purified water needed requires additional energy and infrastructure.  ^{2, 4}

Then there is the chemical aspect of production. A wide range of solvents, acids, and gases are used for etching and deposition. Managing hazardous waste streams and preventing emissions of potent GHGs, such as perfluorocarbons used in plasma processes, is a major concern. When these gases leak, they have a disproportionate impact due to their high global warming potential.

Intel’s semiconductor manufacturing complex in Ocotillo, Arizona clearly depicts this issue. In just three months, the production site, spanning 700 acres, used roughly 927 million gallons of drinking water and produced nearly 15,000 tons of waste, over half of which was deemed hazardous. ¹

It's not just the fabrication process, though. The broader supply chain also contributes to the footprint. For instance, mining precious metals, producing specialty gases, and manufacturing the machinery for fabrication plants all carry embedded emissions.

Transportation of these components across a globalized industry adds an additional environmental cost. ⁵

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Sustainability Solutions in the Semiconductor Industry

Scientists have now started to explore mitigation techniques to the environmental impact of microchip production.

One route to sustainability is looking at the production chain itself. Transitioning semiconductor manufacturing plants to renewable energy, powering fabrication with solar, wind, or hydroelectric energy, can lower their carbon footprint.

In fact, some large manufacturers have committed to completely sourcing renewable energy for their facilities in the coming years. For instance, the aforementioned company, Intel, plans to be fully renewable by 2030 and to achieve net-zero GHG emissions by 2040 across its global operations. ⁶

Recycling the large volumes of water used in manufacturing and so reducing reliance on fresh supplies is another strategy. Water can be looped: reclaiming, treating, and reusing streams to shrink withdrawals and the energy tied to purification. 

Chemical recycling and alternative materials can reduce hazardous waste streams. Similarly, recycling and reusing valuable materials such as gold, copper, and rare earths from old chips and discarded electronic devices can reduce the need for new mining. ^{1, 2}

Advances in lithography, deposition, and etching methods also contribute to sustainability by enabling the production of chips with less energy or fewer high-impact chemicals.

Sustainability extends beyond manufacturing: semiconductors that boost device longevity or improve energy efficiency in real-world applications cut replacement cycles and overall system demand. Specialized accelerators can execute target workloads more efficiently than general-purpose processors. 

Looking Ahead: Scaling Circular Solutions

Scaling sustainability across the global semiconductor industry is a hard task. With the complexity of chip production, even small changes can require extensive testing and validation to ensure product reliability. This makes manufacturers understandably cautious about adopting new materials or processes too quickly.

In this regard, collaborating across sectors is key. Shared standards for reporting emissions, tracking material flows, and verifying recycling processes could make it easier for companies to align on sustainability goals. Governments may also play a role by supporting research, offering incentives for green technologies, and setting regulatory frameworks that encourage circular practices.

References

1. Kumar, A., Thorbole, A., & Gupta, R. K. (2025). Sustaining the future: semiconductor materials and their recovery. Materials Science in Semiconductor Processing. https://doi.org/10.1016/j.mssp.2024.108943
2. Mukherjee, S., Pal, D., Bhattacharyya, A., & Roy, S. (2024). Future of the semiconductor industry. In Handbook of Semiconductors. CRC Press. https://doi.org/10.1201/9781003450146-28
3. Bernardo, C. P. C. V., Lameirinhas, R. A. M., de Melo Cunha, J. P., & Torres, J. P. N. (2024). A revision of the semiconductor theory from history to applications. Discover Applied Sciences. https://link.springer.com/article/10.1007/s42452-024-06001-1
4. Durowoju, E. S., & Olowonigba, J. K. (2024). Machine Learning-Driven Process Optimization in Semiconductor Manufacturing: A New Framework for Yield Enhancement and Defect Reduction. Int J Adv Res Publ Rev. https://doi.org/10.55248/gengpi.6.0725.2579
5. Mishra, A. (2015). Impact of silica mining on environment. Journal of Geography and Regional Planning. https://doi.org/10.5897/JGRP2015.0495
6. Drew Bryck, Fawn Bergen, Todd Brady. Intel’s Approach to Renewable Electricity. White Paper. Semiconductor Manufacturing Global Sustainability. Intel. https://www.intel.com/content/dam/www/central-libraries/us/en/documents/2024-05/intel-renewable-electricity-white-paper.pdf

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