Semiconductor manufacturing – vital to every electronic device on the planet – is making a major shift toward sustainability by adopting clean hydrogen.
Semiconductors have powered technological progress for decades. Semiconductor chips can be found today in any house appliance, automotive industry, smartphones, supercomputers and mainly in the AI and datacenters.
However, their environmental footprint is significant, and the industry’s dependence on hydrogen for its fabrication process has only worsened the issue. Now, green hydrogen presents an opportunity to reshape this reality, steering the semiconductor sector toward a more sustainable future.
These essential components of modern technology drive everything from digital cameras to AI-powered datacenters. However, their production demands vast amounts of energy and has a significant environmental impact. Hydrogen plays a key role in the fabrication process, facilitating etching, cleaning, and cooling semiconductor wafers. Traditionally, this hydrogen has been sourced from fossil fuels, contributing to substantial carbon emissions.
The transition to green hydrogen – produced through water electrolysis powered by renewable energy – is reshaping the semiconductor industry. This advancement not only reduces emissions but also paves the way for a more sustainable manufacturing future.
Hydrogen’s Heavyweight Role in Chip Manufacturing
The semiconductor industry is a global hydrogen consumer, while a single modern fab can use thousands of tons each year. The conventional production method – steam methane reforming (SMR) – is highly carbon-intensive. Moving toward green hydrogen could significantly lower the industry’s carbon footprint while preserving the quality and efficiency essential to semiconductor manufacturing.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor producer, is making significant progress in sustainability. By collaborating with local renewable energy providers, TSMC has incorporated green hydrogen into its operations, replacing 15% of its hydrogen consumption and reducing CO₂ emissions by over 20,000 tons annually.
Taking its commitment further, TSMC has invested in on-site water electrolysis systems, allowing it to produce green hydrogen directly at its facilities. This approach also reduces transportation-related emissions while ensuring a stable and cost-effective hydrogen supply.
Big Tech’s Green Commitment
The semiconductor industry’s green revolution extends beyond TSMC. Samsung, for instance, has adopted a hybrid strategy, currently sourcing 10% of its hydrogen from renewable sources at its South Korean fabs, with plans to reach 50% by 2030. The company is also investigating hydrogen recycling in its processes to further minimize its environmental impact.
Intel is also prioritizing sustainability, partnering with European renewable energy providers to integrate green hydrogen into its Irish operations. In its pilot phase, this initiative has already led to a 12% reduction in emissions. With plans to expand these efforts to its U.S. facilities, Intel is setting a new standard for global sustainability in semiconductor manufacturing.
Other semiconductor leaders are also making strides. NVIDIA has cut transportation emissions by 30% with hydrogen-powered trucks, while Japan’s Renesas Electronics has reduced energy-related emissions by 25% using hydrogen fuel cell forklifts.
These initiatives demonstrate how green hydrogen is not just transforming production but also optimizing logistics and supply chain efficiency.
Long Road to Ruin
Despite recent progress, the large-scale adoption of green hydrogen still faces major obstacles. High production costs and limited hydrogen logistics and distribution infrastructure remain critical challenges. However, the semiconductor industry’s drive for innovation and efficiency puts it in a strong position to overcome these barriers and accelerate the transition to a greener future.
The success of TSMC, Samsung, Intel, and others highlights how the semiconductor industry is reshaping its role in combating climate change. By integrating green hydrogen, the sector demonstrates that technological advancement and environmental responsibility can go hand in hand.
