Environmental groups have launched a website calling on Taiwan Semiconductor Manufacturing Co (TSMC) to reduce its carbon footprint and increase its use of renewable energy. TSMC is the world's largest contract chip maker, providing chips for many top gadget brands such as Apple, Amazon, and Microsoft. The company's energy consumption and reliance on fossil fuels are concerning, with renewable energy only comprising 9% of its total energy usage in 2021, according to Greenpeace.
The website, titled Time to Chip In, was published by Greenpeace International, Stand.earth, and 350 Asia on Monday. The groups argue that TSMC's "unambitious" climate pledge is becoming a major obstacle to preventing a climate disaster. The company should aim for 100% renewable energy worldwide by 2030, which is 20 years earlier than its existing commitment, and publish a clear road map for achieving this goal, according to the groups.
Jude Lee, deputy executive director at Greenpeace East Asia, said TSMC has fallen behind its peers in the fight against climate change when it should be an industry leader. She believes TSMC has the potential to purchase and install rooftop solar and leverage its influence to accelerate Taiwan's energy transition.
The semiconductor supply chain has come under scrutiny for its environmental impact, and TSMC's outsized role in chip manufacturing has raised concerns. 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. It is also on track to emit 86 million tons of carbon dioxide equivalent (CO2e) in 2030, more than double Portugal's total emissions in 2021, according to a Greenpeace report last month.
TSMC'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. Gary Cook, global climate campaigns director at Stand.earth, said TSMC's failure to invest in renewable energy is not only a climate catastrophe but also a business risk for the company and its most important customers.
In response to the website, TSMC said it regards renewable energy as an important strategy towards net-zero emissions and has been actively engaging in the clean transition of its semiconductor production process. The company established the Net Zero Project in 2020 to evaluate its 2050 emission goals and signed the world's largest renewable corporate power purchase agreement with Danish energy company Orsted in 2020.
TSMC also signed a 20-year procurement contract for a total of 20,000 Gigawatt-hours (GWh) of renewable energy with local energy company Ark Power last month. Tracy Cheng, climate and energy campaigner at Greenpeace East Asia, said the environmental groups will continue to engage with TSMC about its energy transition.
