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Water-Energy Efficiencies: The Catalyst to Semiconductor Sustainability

–Eric Lai, Senior Regional Sales Director for Industry APAC

Fuelled by the explosive growth of emerging markets like AI and electric vehicles, the semiconductor industry – which manufactures the essential materials that power these technologies – is poised to grow into a massive trillion-dollar industry by 2030[1].

At the very heart of this growth lies Southeast Asia, as markets in the region actively pursue opportunities to capture higher value-add positions within the burgeoning global industry. In fact, Singapore’s Minister of State of Trade and Industry called for efforts for the state to sharpen its competitive edge in the semiconductor industry as it aims to double its manufacturing sector’s value by 2030[2].

However, despite the semiconductor industry’s immense potential for economic growth, its notorious thirst for water and energy stand at direct odds with Southeast Asia’s climate ambitions, wherein most countries across the region have committed to carbon neutrality by 2050.

How can the growth of semiconductor manufacturing be reconciled with these climate targets to achieve balanced and sustainable long-term development?

The Water-Energy Nexus in Semiconductor Manufacturing

Intensifying climate events around the globe have brought the semiconductor industry’s immense resource consumption to the fore. Growing concerns about global water shortages have placed the sector’s water usage under scrutiny, while its substantial electricity consumption remains a focal point of concern.

However, discussions about these resources tend to occur in silos, with limited focus on the water-energy nexus – which refers to the interdependent relationship between both resources. For instance, considerable energy is required to treat and move water in semiconductor fabrication plants (fabs); conversely, water is critical for the energy generation processes that power these facilities.

To truly drive sustainability in this sector, there needs to be a concerted effort to move beyond traditional energy reduction to target the energy-intensive water processes central to the water-energy nexus.

Firstly, all fabs require mammoth volumes of ultra-pure water (UPW) to cleanse their silicon chips. In fact, estimates show that an average fab uses about 37.8 million litres of UPW daily to ensure the quality of their output[3]. To obtain UPW, however, fabs undergo a rigorous purification process that consists of energy-intensive steps like reverse osmosis and distillation, which contribute significantly to the plant’s overall energy consumption.

Furthermore, producing high-quality chips demands a significant cooling capacity. This involves effectively managing the flow of water throughout the manufacturing process. It’s not just the cleanrooms that require strict control over temperature, pressure, and humidity.

Many processes and dedicated machines within the plant generate a substantial amount of heat during operation, for instance, in wafer fabrication, etching, and deposition. Cooling towers play a crucial role in regulating the temperature of the circulating cooling water for these processes and machines, ensuring optimal performance and efficient heat dissipation.

A Three-Pronged Approach to Achieving Water-Energy Efficiencies

When optimising equipment processes, engineers typically focus on overall equipment effectiveness (OEE)[4], which looks at an equipment’s overall productivity and efficiency – an approach that tends to deprioritise energy consumption metrics. To drive water and energy efficiencies, there first needs to be a mindset shift that encourages prioritising energy efficiency from the get-go, rather than focusing solely on OEE.

For existing plants, conducting a comprehensive, measurement-based analysis of current processes and performance can uncover the critical areas that offer the most potential for energy savings, ensuring that any changes enacted are targeted and effective in driving impact.

Additionally, digital solutions are a pivotal avenue for manufacturers to attain operational efficiencies, as they enable us to understand demand and intuitively manage supply, ensuring we only use what we need. The good news is that these technologies already exist – manufacturers just need to make the switch to achieve improved water and energy efficiencies.

For instance, Grundfos has helped manufacturers across various industries optimise their cooling systems and towers by implementing real-time monitoring and automating adjustments to pump speeds and fan operations, resulting in up to 60% energy savings and 20% reduction in water loss.

Ultimately, creating more water and energy-efficient processes are not just beneficial for sustainability purposes; they are also a strategic business priority that allow companies to minimise operational costs and align with the growing demand for environmentally responsible supply chains.

By prioritising environmental impact as they seek to establish themselves in the global semiconductor arena, Southeast Asian countries can find a way to harmonise their economic ambitions with their climate goals to chart the path for a sustainable future.

[1] McKinsey (1 April 2022). The semiconductor decade: A trillion-dollar industry

[2] The Business Times (23 July 2024). Singapore must ride chip upswing to grow local semiconductor industry: Alvin Tan

[3] FDI Intelligence (10 August 2023). Thirsty chip facilities under scrutiny in water stressed areas

[4] McKinsey (17 May 2022). Sustainability in semiconductor operations: Toward net-zero production

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