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Semiconductors and Climate Change

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Greenhouse Gas Emissions

Greenhouse gases refer to naturally occurring or human generated gases that transform the atmosphere. Accumulating greenhouse gases in the atmosphere causes global warming by allowing more solar energy to reach the Earth’s surface and absorbing solar radiation. Humans generate most of the increased greenhouse gasses through actions such as burning fossil fuels and manufacturing chemicals. The most problematic gases include carbon dioxide, methane, nitrous oxide, and manufactured fluorinated gases.

Semiconductor manufacturing contributes to both direct and indirect greenhouse gas (GHG) emissions. Direct emissions originate from onsite stationary combustion and manufacturing processes, while indirect emissions result from the consumption of electricity generated offsite, often from fossil fuels. 

Legal Framework

The Clean Air Act (CAA) is the basis for the EPA’s broad regulations controlling greenhouse gas emissions after the Supreme Court ruled in Massachusetts v. EPA that the CAA requires the EPA to regulate greenhouse gas emissions. States also regulate GHG emissions through state standards if those are more stringent than those of the EPA.

  • American Innovation and Manufacturing Act (AIM): Passed in 2021, the AIM Act directs the EPA to reduce hydrofluorocarbon (HFC) production and consumption by 85% over 15 years. This act is expected to prevent up to 0.5C of global warming by 2100. (see: Background on HFCs and the AIM Act | US EPA) 
  • EPA’s Greenhouse Gas Reporting Program (GHGRP): The GHGRP includes reporting requirements for the Electronics Manufacturing Sector, including semiconductors. Facilities that emit over 25,000 metric tons of CO2e annually must report their emissions. (see: Greenhouse Gas Reporting Program (GHGRP) | US EPA) 

Mitigation Strategies

Many semiconductor facilities use abatement technologies to reduce GHG emissions. These include removal or destruction technologies, source reduction, process improvements, and the use of alternative chemicals. The CHIPS Act Notice of Funding Opportunity for Commercial Fabrications Facilities emphasizes the importance of energy efficiency and sustainability and encourages applicants to utilize, to the maximum extent possible, clean energy sources and implement abatement technology to reduce GHG emissions. Commitments towards GHG reductions and clean energy made during the application period are reviewed and incorporated into award documentation.   

Created July 22, 2024, Updated January 21, 2025