Pressure builds to cut greenhouse gas emissions across the chip supply chain

Pressure builds to cut greenhouse gas emissions across the chip supply chain

Business news |
By Nick Flaherty

Philips is stepping up its supplier sustainability program with the goal of at least half its suppliers committing to science-based targets (SBTs) for reducing emissions of greenhouse gasses by 2025.

This includes semiconductor suppliers to the company that has shifted its focus to medical  systems. NXP, Nexperia and LED supplier Signify all spun out of the company. “Working with semiconductor suppliers will be no different than with other supplier,” said a spokesperson at Philips, “We have thousands of suppliers worldwide among which there are semiconductor providers.”

This reduction also includes data centre operators and network providers as the company moves to more digital services.

“We will be actively supporting our suppliers in effecting the changes needed to meet science-based emission reduction targets within their organizations. This collaborative approach focuses on structural improvements that maximize the impact of carbon reduction activities. It also involves incentives, such as help with capability building and preferential payment terms, to accelerate the adoption of science-based targets,” they said.

Plans for greening the Philips supply chain include preferential payment terms if suppliers meet certain reduction thresholds, as well as assessment by the Philips procurement organisation and free-of-charge factory assessments at suppliers that result in recommendations on cost-effective decarbonization. It will also looks at virtual power purchase agreements with key supply partners.

Separately, imec in Belgium has created the Sustainable Semiconductor Technologies and Systems (SSTS) research program with Apple as the first partner to rally stakeholders from across the chip supply chain

Semiconductor production is characterized by high energy consumption, the use of high-purity chemicals, scarce materials, and ultrapure water and by the emission of greenhouse gases such as NF3.

The imec program will analyse the carbon and other footprints of multiple processes with a view to helping the semiconductor industry reduce its ecological footprint to help fight resources depletion, pollution and climate change.;

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