NGOs call out TSMC over chip supply chain emissions

Environmental group Greenpeace and two other NGOs have launched a website that calls on Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chip maker, to reduce its massive carbon footprint.

The semiconductor giant’s energy consumption and reliance on fossil fuels are concerning, according to the website titled “Time to Chip In”, published by Stand.earth, 350 Asia and Greenpeace International on Monday. The company’s “unambitious” climate pledge is “becoming a major roadblock to preventing the climate disaster”, the groups said.

Jude Lee, deputy executive director at Greenpeace East Asia, said TSMC should target 100 per cent renewable energy worldwide by 2030, 20 years earlier than the company’s existing commitment, and should publish a clear road map for achieving this goal.

“TSMC has fallen behind its peers in the fight against climate change, when it should be an industry leader,” she said in a statement on Monday. “TSMC has the potential to purchase and install rooftop solar, and to leverage its influence to accelerate Taiwan’s energy transition.”

TSMC’s outsized role in chip manufacturing has come under increasing scrutiny amid growing concerns about the environmental impact of the semiconductor supply chain. As the supplier of more than 90 per cent of the world’s most advanced chips, it contracts with the biggest tech companies in the world, including Apple, Amazon, Microsoft and many top gadget brands.

The global semiconductor manufacturing industry is projected to consume 286 terawatt hours (TWh) of electricity globally by 2030, more than double its power usage in 2021, and 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, according to a Greenpeace report last month.

TSMC relies heavily on fossil fuels, with renewable energy comprising only 9 per cent of its total energy usage in 2021, according to Greenpeace. At the same time, the company’s electricity consumption is on track to nearly triple by 2030, using as much electricity as 5.8 million people – roughly a quarter of Taiwan’s population.

“TSMC is rapidly expanding its energy-intensive facilities both in Asia and in the US, but currently this expansion is increasing demand for fossil fuels,” said Gary Cook, global climate campaigns director at Stand.earth.

“TSMC’s failure to invest in renewable energy that will decarbonise the grid is not only a climate catastrophe, but also a business risk for TSMC and its most important customers,” he said.

In a written statement sent to the Post, TSMC said it has been actively engaging in the clean transition of its semiconductor production process.

“TSMC regards renewable energy as an important strategy towards net-zero emissions,” the company said on Friday. “The cornerstone of TSMC’s sustainable management is green manufacturing and the company integrates this into daily operations through the introduction of innovative green technologies and initiatives.”

It established the Net Zero Project in 2020 to discuss and evaluate the company’s 2050 emission goals and signed the world’s largest renewable corporate power purchase agreement with Danish energy company Orsted in 2020 to buy 920 megawatts of renewable power in the next 20 years.

TSMC also announced last month that it had signed a 20-year procurement contract for a total of 20,000 Gigawatt-hours (GWh) of renewable energy with local energy company Ark Power to offer the chip maker’s suppliers and subsidiaries electricity evaluation and planning services.

“TSMC will continue to set related mitigation measures, strengthen its wide variety of green innovations, lead the industry with a goal of building a green supply chain and actively adopt renewable energy to reach its goal of net-zero emissions by 2050,” the company said.

Tracy Cheng, climate and energy campaigner at Greenpeace East Asia said the coalition of environmental groups will continue to engage with TSMC about its energy transition. South China Morning Post