In the context of climate change and growing global environmental challenges, semiconductor manufacturing companies face increasing pressure to minimize the environmental impact of their production activities. With their massive consumption of raw materials, energy, and water, as well as significant waste generation, the semiconductor industry plays a critical role in the effort to reduce negative environmental impacts.
Therefore, companies in this industry must proactively implement innovative solutions, optimize their production processes, and adopt circular economic models to fulfill their environmental responsibilities.
Challenges in solving emissions at the upstream stage
Emissions are distributed across hundreds of suppliers and thousands of materials
In industry, carbon emissions are often generated from many sources, including hundreds of suppliers and various materials. This makes identifying and controlling emission sources extremely complicated. Companies must conduct reviews of the entire supply chain, from raw material suppliers to subcontractors, to understand the comprehensive emissions situation. However, this requires significant resources and effort and also faces many challenges in terms of data transparency and availability.
Lack of transparency and data on emissions from suppliers
Many suppliers are reluctant to share information about their emissions, due to concerns about trade secrets or competitive factors. This makes overall assessment and monitoring extremely difficult. Companies need to find ways to build more trusting and transparent relationships with suppliers so they can access and collect accurate emissions data.
High energy demand for materials production in the semiconductor industry
The semiconductor industry especially faces emissions challenges due to the high energy demands of manufacturing materials. Complex manufacturing processes consume a lot of energy. This leads to large carbon emissions. To solve this problem, companies in the industry need to focus on adopting more energy-efficient production technology, using renewable energy, and implementing measures to improve energy efficiency.
Carbon credit market – a “green” strategy for businesses
Carbon credits are commercial certificates that represent ownership of a certain amount of CO2 or other greenhouse gases. Each carbon credit is equivalent to one ton of CO2, meaning that one carbon credit equals one ton of CO2.
These carbon credits can be bought, sold, or traded in the carbon market as a form of trading in greenhouse gas-related products. This credit has the effect of creating financial incentives for organizations and individuals to carry out activities to reduce emissions or offset the amount of greenhouse gases.
What are the benefits of carbon credits?
Carbon credits are an important tool to help businesses implement “green” strategies and achieve sustainable development goals. One of the main benefits of carbon credits is environmental protection. They play a key role in reducing greenhouse gas emissions, contributing to the international community’s joint efforts to respond to climate change. When businesses use carbon credits, they demonstrate their commitment and efforts in implementing measures to reduce greenhouse gas emissions, thereby promoting more sustainable business and production behavior.
In addition, integrating carbon credits into business strategies also provides opportunities for businesses to build and enhance their brand value. As consumers increasingly care about and appreciate products and services that have a positive impact on the environment, the use of carbon credits will become a highlight to help businesses affirm their commitment and efforts to protect the environment. Protect the environment, thereby increasing the brand’s appeal and reputation. It brings commercial benefits and contributes to creating a green, sustainable image of the business in the community.
Positive effects of applying carbon credits on the semiconductor market
The semiconductor industry is currently facing increasing pressure on environmental protection issues. This industry consumes a lot of energy and emits significant greenhouse gases during the production process. Therefore, semiconductor companies are required to comply with regulations on reducing emissions and achieving carbon neutrality goals.
The application of carbon credits in the semiconductor industry brings positive signals to the environment, including:
- Drive technological innovation: The need to reduce greenhouse gas emissions pushes semiconductor companies to invest in new, more carbon-efficient manufacturing technologies. It can drive innovation and improve industry sustainability.
- Supply chain impact: Semiconductor companies must require suppliers to meet emissions reduction standards. It affects the entire industry supply chain, forcing companies to improve energy efficiency and reduce emissions.
FPT Semiconductor – The unit is ready to accompany the green transition process
FPT Semiconductor, a member of FPT Group, is proving its pioneering role in the green transition process in Vietnam. With a team of industry-leading experts on environmental, social, and governance (ESG) standards and requirements globally, FPT Semiconductor is ready to accompany organizations and businesses on this journey.
The company is focusing on implementing two strategic solutions to support customers. This includes the VertZéro greenhouse gas inventory solution, which helps units effectively inventory and manage emissions, meeting international standards such as ISO 14064-1:2018 and GHG Protocol. In addition, the team proposes ESG reporting solutions, and supports the development and publication of ESG reports, thereby evaluating operational efficiency and governance according to global ESG standards.
With these comprehensive solutions, FPT Semiconductor affirms its leading position in supporting organizations and businesses on the path to green transformation, meeting the requirements and best practices of sustainable development.
Solutions to reduce carbon emissions in the semiconductor industry
Minimize emissions from production units
Companies in the semiconductor industry need to focus on key suppliers of chemicals, wafers, and gases. They need to proactively work with these suppliers to set emissions reduction targets and implement effective mitigation strategies.
For chemical suppliers, semiconductor companies need to evaluate emissions during production, and transportation, and then look for chemicals with lower emissions or request suppliers to Apply more environmentally efficient production and transportation technology.
For wafer suppliers, semiconductor companies need to cooperate to optimize production processes, reduce waste and emissions, and require suppliers to invest in more advanced technology.
For gas suppliers, semiconductor companies need to evaluate and minimize emissions from the use of gases or require suppliers to improve production and transportation processes.
Optimize waste management
Besides working closely with key suppliers, businesses in the semiconductor industry also need to focus on optimizing waste management processes at their factories. They need to implement initiatives to reduce the waste generated in production processes, thereby contributing to reducing total emissions.
Optimizing waste management processes at factories can include many measures such as:
- Redesign production processes to minimize waste generated
- Increase reuse and recycling of recyclable waste
- Invest in more advanced and effective waste treatment technologies
- Develop training programs to improve the awareness and skills of workers in waste management
- Establish strict waste monitoring and reporting systems to evaluate and improve more effectively.
Redesign product regulations
In addition to focusing on optimizing waste management in manufacturing processes, companies in the semiconductor industry also need to implement solutions in the design and innovation of their products. In addition, businesses also need to use materials with lower carbon emissions in the production process, while optimizing the use of materials effectively to minimize emissions.
Redesigning products requires more attention to the following:
- Replace high-emission materials with environmentally friendly materials, such as recycled plastics, recycled metals, or biomaterials.
- Optimize product design to minimize the amount of material used, such as designing more compact components, while increasing the use of techniques such as reuse and recycling.
- Design products that are modular, and easy to disassemble and repair, thereby extending the product’s life cycle.
- Integrate energy-saving and emission-reduction features right from the design stage.
- Work closely with suppliers to find lower-emission material alternatives.
Optimize raw material consumption
The company needs to search and select suppliers that use renewable energy such as solar, wind, or hydroelectricity in the production process. This will help reduce emissions and negative impacts on the environment. The company should discuss and sign long-term cooperation agreements with these suppliers to increase the use of clean energy. Besides, the company can also encourage and support suppliers to invest in renewable energy technology.
In addition to collaborating with suppliers that use renewable energy, the company needs to optimize material use and transportation to reduce emissions. This may include efficiently arranging transportation operations, optimizing routes, and using fuel-efficient and environmentally friendly means of transportation.
The role of leadership and interdisciplinary collaboration
To successfully implement initiatives to optimize material use and reduce emissions, the commitment and active participation of senior leadership are extremely important. Senior leaders have to show strong support for sustainable development goals, provide strategic vision, and decisively direct the implementation of these initiatives throughout the company.
Implementing materials optimization and emissions reduction initiatives requires close collaboration between different functional groups within the company, including manufacturing operations, technology, and innovation, product development teams, as well as purchasing and supply chain teams. These groups need to coordinate closely, share information and experience, and work together to build effective solutions to optimize material use and reduce emissions.
In conclusion
With increasing environmental challenges, semiconductor companies need to proactively and proactively act to minimize the impact of their manufacturing operations on the environment. This is not only a social responsibility but also an urgent requirement to meet increasingly stringent standards of environmental protection. Through the above efforts, businesses in the semiconductor industry will gradually realize their commitment to sustainable development and create a bright spot for the environment.
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