AGREENERWORLDTHECRUCIALROLEOFSEMICONDUCTORSINTHETRANSITIONTOWARDSINTROD2Crucialroleofsemi-conductorsinthetransitiontowardsagreenerworldUCTIONWiththeboominhumanandmachine-generateddata,ITcapabilities,AIandconnectivity,theglobalsemiconductormarketislikelytodoubleby2030,increasingfromfrom550billioneurostoover1trillioneuros.1.However,thisrapidgrowthiscreatingenvironmentalissues:evermoreintensiveuseofrawmaterialsandchemicalproducts,significantemissionsofprocessgases,etc.Assustainablestrategiesplayacentralroleinmeetingconsumer,investorandregulatorexpectations,itisessentialforsemiconductorplayerstoaddresstheseissuesbyintegratingenvironmentalconsiderationsrightfromthedesignphaseofsemiconductorcomponents.1.”SemiconductorMarketSize,Share,TrendsIndustryForecast[2021-2028]”FortuneBusinessInsights,20213ELECTRICITYCONSUMPTION:ThekeyenergyissueformanufacturersThevastmajority(nearly80%)ofgreenhousegasemissionsassociatedwiththesemiconductorsectorisduetothedirectuseofenergy(scopes1&2)2.Electricityisthemainsourceofenergyusedtooperatethefittingsandhundredsoftoolsinvolvedinthechipmanufacturingprocess.AccordingtodatafromtheInternationalEnergyAgency,thesemiconductorindustrywillconsumearound2.5%oftheworld’selectricityproductionin2020.Andtomeetthesector’sgrowthprospects,upto3.5timesmoreelectricityisexpectedtobeconsumedby2030.Electricityconsumptionisthereforeacriticalissueformanufacturers,thushighlightingtheneedtoimplementstrategiesforenergyoptimizationandsourcingfromrenewablesourcesasashort-termpriority.Optimizingtheenergyconsumptionofcompaniesinthesectorstartswiththeenergyusedbytools,firstlybyimprovingthem(advancedetchingtechniques,increasedlithographyspeed,etc.)orreplacingthemwithenergy-savingalternatives.Atthesametime,manufacturerscanusedata,IoTandAIpowertoimplementintelligentcontrolsystemsforcouplingandregulatinginstallationsandtools.Forexample,analyzingproductiondatausingAIandmachinelearningcouldreducemachinedowntimebyhalfandimprovemanufacturingefficiencyby5-20%.Thisoptimizationcouldalsohelptosaveenergyandreducethecarbonfootprintofthemanufacturingindustry3.Withtheaimofreducingtheenergyconsumptionassociatedwithfittingsinthesemiconductorsector,therearewaysoftransitioningtowardsenergy-efficientbuildings,notonlybyreducingenergylossesandrecoveringtheheatproduced,butalsobyoptimizingtheenergyconsumptionofcleanrooms(reducingairpressure,increasinghumidity,eliminatingleaks)andmakingbetteruseofventilationandlighting(usingLEDs,forexample).Theotheraspectofmanufacturers’electricitystrategyisrelatedtotheirsupply.Fortheirnetworksupply,manufacturerscanencouragethepurchaseofenergyfromrenewablesourcesfrompublicutilities,privatesuppliers,oreventhroughpowerpurchaseagreements(PPAs).Atthesametime,theuseofautonomousenergysourcestopowertheiroperations(photovoltaic,fuelcellsbatteryenergystoragesystems)willspeedupthetransitiontoacleanerenergysupply.3.”HowAIandMachineLearningAreRevolutionizingTheManufacturingIndustry”,Forbes2.”Sustainabilitychallengesinthesemiconductorindustry”,TechXplore,20204Crucialroleofsemi-conductorsinthetransitiontowardsagreenerworld4”WaterdemandforSemiconductorManufacturing”,SemiconductorIndustryAssociation(SIA),2018/”SemiconductorSupplyChainSeeksSustainableSolutions”,EBNOnline,2020WATER,GASESANDSEMICONDUCTORMATERIALS:Inadditiontoelectricity,water,oftenusedinultrapureform,isthesecondkeyrawmaterialinthechipmanufacturingprocess.Eliminatingalltheimpuritiesthatcanaffectchipperformance(suchasmetalions,suspendedparticlesorvariousbacteria)isaveryenergy-intensiveprocess,notonlybecauseofthequantitiesofrawwaterrequiredbutalsobecauseofnumeroushardwareutilized(pumps,filters,etc.)Tokeeppacewithindustrygrowthforecasts,theassociatedneedforwatercouldincreaseby2.3timesby20304.Thedevelopmentofwaterrecyclinginitiatives,combinedwiththeuseofmoreenvironmentally-friendlychemicals,willreducethepressureonultrapurewater.Althoughessentialformanufacturingintegratedcircuits,theuseofprocessgaseshashighlyharmfulconsequencesontheenvironment,particularlyintermsofgreenhousegasemissionsandvariousformsofpollution.Manufacturerscanadjustvariousparametersoftheproductionprocess(temperature,chamberpressure),integratealternativegasesorlow-emissionprocesses,definegasreductionsystemsorrecyclethem,bycapturingunusedprocessgasesusingmembraneseparationorcryogenicrecovery.Finally,theadoptionofbettertraceabilityandamoresustainablesupplyofthemetalsusedinsemiconductors,includingsiliconandgermanium,arekeyareasofdevelopmentformanufacturers.Keyactionsthatcanbeimplementedincludemoreenvironmentally-friendlyandhuman-rights-friendlymining,eliminatingtheuseofconflictminerals,andthedevelopmentofsustainablealternativestoraremetalssuchascobaltandlithium.Sustainabilityissue5Attheupstreamlevel,companiesmustbeabletoidentifythegreenhousegasemissionsassociatedwiththeirrawmaterialsandtheirsuppliers’activities.Thistraceabilitychallengerequires,firstandforemost,greatertransparencythroughoutthesupplychain,byimplementingtraceabilitytoolsandassessingthesustainableperformanceoftheirsuppliers.Also,closecollaborationbetweenpartners,byencouraging,supportingandevendevelopingthetransitiontosustainablepracticesintermsofenergy,wastemanagementandtransport,willhelptoconsiderablyreducegreenhousegasemissionsaswellascosts.Asfarasthedownstreampartoftheprocessisconcerned,thereisamajorchallengeinraisingcustomerawareness,byencouragingsensibleuseofchip-enableddevices,aswellasthereuseandrecyclingoftheirproductsattheendoftheirlife.Inparticular,takingintoaccounttheenergyperformanceofchipsduringthedesignphaseisanimportantfactor,whichmanufacturerscanmanagemoreeffectively.Anothercentralareaofscope3downstreamconcernselectronicwastemanagementandassociatedemissions,whichrequiretheimplementationofcirculareconomyprograms.Thereuseandrecyclingofmaterials,particularlysilicon,wastereductionthroughmoreefficientproductionprocesses,aswellasdesigningmoresustainableproducts,basedonrecycledmaterialsorensuringbetterenergyefficiency,arejustsomeoftheareastobeanalyzedbysemiconductormanufacturers.Toachievethis,itisessentialthatallstakeholdersinthevaluechainworktogethertoincreasemanufacturers’effectiveness.Tokick-startthisdynamic,alifecycleanalysisoftheproductsandservicesassociatedwithsemiconductorsiskeytodevelopinganaccuratevisionoftheirimpactandoptimizingthem.PLM-typetoolscanbeparticularlyeffectiveinprovidingthenecessaryvisibilitythroughoutthevaluechain.Onthisbasis,manufacturerscanworktowardsdefiningmeasurementandtransparencystandardswithregulatorsorbuildalow-carbonroadmapsharedbyallindustryplayers.THENEEDFORBETTERCOLLABORATIONBETWEENINDUSTRYPLAYERS,INCLUDINGBOTHSUPPLIERSANDCUSTOMERSInadditiontotheenvironmentalandhumanimpactsassociatedwithenergyuse,semiconductormanufacturerscanhelpreducetheirscope3upstream(rawmaterialsuppliers,transport)anddownstream(distribution,useandend-of-lifeoftheirproducts).6Crucialroleofsemi-conductorsinthetransitiontowardsagreenerworldFIRSTPROMISINGINITIATIVESTOWARDSTHEECOLOGICALTRANSITIONOFTHESEMICONDUCTORMARKETQualcomm,forexample,hasannounceda“NetZero”objectiveforitsoperationsby2040,whileSTMicroelectronicsisaimingfora100%energysupplyfromrenewablesourcesby2027.Aspartofitscommitments,NXPisaimingfor100%sustainablesourcingofminerals,excludingconflictzones.Backin2018,IntelandNvidiacollaboratedtodevelopanenergy-efficientAIserverfordatacenters.ThehighperformanceoftheDGX-1serverenablessignificantreductionsnotonlyinenergycostsbutalsointermsoftime-to-market,whileincreasingAIprocessingcapacity.Recently,initiativeshavebeenlaunchedtoco-developmoresustainablealternatives,suchasthecollaborationbetweenSoitecandSTMicroelectronicshelpeddevelopatechnologyforthemanufactureofsiliconcarbide(SiC)substrates,whicharethesourceofhigher-performance,moreenergy-efficientpowersemiconductors.Theenergytransitionofsemiconductormanufacturersmustnowplayacentralroleintheirdevelopmentstrategy.Bypursuingtheircommitmentsandtransformingtheirbusinessmodel,semiconductormanufacturerswillbeabletosolvethecomplexequationbetweencontinuingtogrow,maintainingproductperformanceandreducingtheircarbonfootprint.Inrecentyears,theindustry’scommitmenttosustainablepracticeshasmultiplied.7Ourexperts:NicolasGaudillièreChiefTechnologyOfficerCapgeminiInventOlivierMarcillaudSeniorDirectorTelecomMedia&TechnologyCapgeminiInventACentraleSupelecengineer,Nicolasstartedhiscareerinthe2000s.Heinitiallyworkedasacybersecurityconsultant,beforehelpingtosetupCloudserviceplatformsfortelecomoperatorsandmajorintegrators.In2015,hejoinedCapgeminiInventasCTOtofocusontheorganizationalandhumantransformationsrequiredforadoptingnumeroustechnologicalinnovationssuchasIoT,cloud,AI,blockchain,5G,andquantum.Today,NicolasoverseestheTelco,Media,andtechsector,supportingcustomersinoptimizingtheirbusinessstrategytoseizenewgrowthopportunities,streamliningtheirindustrialmodels,andexpandingtheirtechnologicalinnovationpolicy,allwhilehelpingthemachievetheirsustainabledevelopmentgoals.Withmorethan20yearsofexperienceintheTMTsector,Olivierisexperiencedwithworkasbothaconsultantandinmoreoperationalrolesinbusinessdevelopment,operations,andIT.HeisincrediblypassionateabouttheTelecomsector,workingonsubjectsrelatedtoinfrastructuresandoperations,aswellasonthechallengesofsustainabletransformationanditsapplication.PaulineLechopied-BayManagingConsultantTelecom,Media&TechnologyCapgeminiInventForthelast8years,PaulinehassupportedtheB2CandB2BtransformationsofmanyTelco,Media,andtechplayers.Sheisspecializedinsupportingtransformationsthroughthedefinitionofnewbusinessmodels,thelaunchofnewdigitaloffers,andthetransitiontosustainablestrategies.SanjivAgarwalVicePresidentDSPGlobalSemiconductorIndustryLeaderWithabout30yearsofexperienceintheTMTsector,Sanjivisexperiencedwithenablingdigitaltransformationjourneyforcustomersusingbest-of-breedtechnologysolutionsandservices.Inhiscurrentroleasglobalsemiconductorindustryleader,heisworkingcloselywithcustomersontheirjourneyonproducingsustainabletechnology,drivinguseofAI/ML,digitaltransformation,andglobalsupplychain.Heisincrediblepassionateabouttheroleoftechnologyanditsimpactonenterpriseandhumanlives.8Crucialroleofsemi-conductorsinthetransitiontowardsagreenerworld5.https://www.capgemini.com/insights/research-library/project-bose-enabling-a-sustainable-5g-network/SourcesL’INDUSTRIEDESSEMI-CONDUCTEURSFACEÀLATRANSITIONÉCOLOGIQUELaTribune(17February2021)”REDUCINGENERGYCONSUMPTIONINSEMICONDUCTORMANUFACTURING”SEMI”ENERGYCONSUMPTIONINTHEICTSECTOR”EuropeanParliament”ENERGYANDENVIRONMENTALSUSTAINABILITYINSEMICONDUCTORMANUFACTURING”AjayKumar,JingsongZhangetal.4STRATEGIESFORSUSTAINABLESEMICONDUCTORMANUFACTURINGGLOBALEVOUTLOOK2021InternationalEnergyAgency(2021)RENEWABLEENERGYINTHEWATER,ENERGYANDFOODNEXUSInternationalRenewableEnergyAgency(2021)”THEROLEOFCRITICALMINERALSINCLEANENERGYTRANSITIONS”InternationalEnergyAgency(2021)”SUSTAINABILITY:QUALCOMMSETSNET-ZEROGOAL,PLEDGESTOCUTSUPPLYCHAINEMISSIONS”Reuters(29April2021)“STMICROELECTRONICSSETSTARGETFOR100%RENEWABLEENERGYUSEBY2027”Greenbiz(9September2020)“NXPANNOUNCESPLANTOMAKE100%OFITSMINERALSSUSTAINABLE”NXPpressrelease(22June2020)“NVIDIAANDINTELCOLLABORATETOCREATEENERGY-EFFICIENTAI”IoTForAll(4July2018)“STMICROELECTRONICSANDSOITECCOOPERATEON150MMSICPRODUCTION”PowerElectronicsNews(12October2020)9AboutCapgeminiInvent:CapgeminiInventisCapgeminiGroup’sdigitalinnovation,designandtransformationbrand,enablingbusinessleaderstoshapethefutureoftheircompanies.Establishedinover36officesand37creativestudiosworldwide,itcomprisesateamofover10,000employeesincludingstrategyexperts,datascientists,productandexperiencedesigners,brandandtechnologyexpertswhodevelopnewdigitalservices,products,experiencesandbusinessmodelsforsustainablegrowth.CapgeminiInventispartofCapgeminiGroup,agloballeaderinpartneringwithcompaniestotransformandmanagetheirbusinessbyharnessingthepoweroftechnology.TheGroupisguidedeverydaybyitspurposeofunleashinghumanenergythroughtechnologyforaninclusiveandsustainablefuture.Itisaresponsibleanddiverseorganizationofover360,000teammembersinmorethan50countries.Withitsstrong55-yearheritageanddeepindustryexpertise,Capgeminiistrustedbyitsclientstoaddresstheentirebreadthoftheirbusinessneeds,fromstrategyanddesigntooperations,fueledbythefastevolvingandinnovativeworldofcloud,data,AI,connectivity,software,digitalengineeringandplatforms.TheGroupreportedin2022globalrevenuesof€22billion.GettheFutureYouWantwww.capgemini.comCopyright©2023Capgemini.Allrightsreserved.