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require more steps to manufacture, and these steps utilize more electricity and chemicals. Growing emissions intensity per unit of pro- duction compounds the emissions impact of increasing manufacturing output. Several semiconductor players, such as AT&S, have committed to science-based emis- sions targets 5 . Over the next few months or years, more semiconductor companies are expected to commit to ambitious and action- able emissions targets. How Digitalisation Helps the Semiconductor Industry Achieve ESG Goals Digitalisation is transforming the semicon- ductor industry in many ways. e industry can improve its ESG data management and reporting by automating data collection and analysis. is can help identify areas where it can reduce its carbon footprint and develop more effective ESG strategies. e semicon- ductor industry is responsible for a signifi- cles, solar arrays, and wind turbines. But chip manufacturing also contributes to the climate crisis (Figure 1). It requires huge amounts of energy and water—a chip fabrication plant, or fab, can use millions of litres of water a day—and creates hazardous waste. While the industry contends with its emissions, manu- facturing expansion, and advancement, these are required to, among other things, support the global economy and limit the impacts of climate change for all industries, adding an intriguing level of nuance to the semiconduc- tor emissions story. Semiconductors are required for climate change solutions such as electrification, low- carbon energy, electric vehicles, and digitali- sation, which have led to a reduction in global emissions of 1 to 2 gigatons in 2020 with the potential to enable annual emissions avoid- ance of 2 to 5 gigatons by 2025 4 . In addition to more chips, the world demands greater com- putational power for applications, such as arti- ficial intelligence, which could aid in climate change solutions. Advanced semiconductors Figure 1: CO 2 -equivalent emissions from semiconductor industry in perspective. 26 PCB007 MAGAZINE I MARCH 2024