On 15th September, Samsung revealed a strategic environmental plan to achieve net zero carbon emissions by 2050. The company's Device Experience (DX) Division, which makes consumer electronics like TVs, mobile phones, and other devices, will work to achieve the objective by 2030. Samsung stated that it hopes to achieve net zero carbon emissions by 2050 across all of its organisation-wide international activities, including its Device Solutions (DS) Division, which produces computer chips. Samsung claims that by achieving net zero carbon emissions from direct and indirect sources, it will reduce its emissions by 17 million tonnes of carbon dioxide equivalent, or what it released in 2021.[i] According to Samsung Electronics, its electronics operations, including mobile, accounted for 10% of the 17.4 million tonnes of greenhouse gases it discharged in 2021, while the chips and components business produced 15.6 million, or 90% of those emissions. Stable and affordable energy is essential for the competitiveness of South Korean firms like Samsung, but so far, renewable energy development has not kept pace with these demands. According to data from the industry ministry, the nation generates more than 60% of its electricity from coal and gas and only 6% from renewable sources.[ii]
In 2021, Samsungs carbon reduction activities were primarily built upon an increase in renewable resources and improving gas treatment technology.[iii]
Source: Samsung
To help them reach net-zero carbon emissions by 2050, Samsung Electronics has pledged to invest $5 billion in green projects by 2030. The investment will be used during the following eight years or until 2030. A portion of the $5 billion investment will go towards installing treatment facilities on the company's semiconductor manufacturing lines, while another portion will be used to develop novel carbon reduction technologies that will reduce emissions at treatment facilities and process gases that result from semiconductor manufacturing. Another noteworthy trend is the development of ultra-low power memory chips for data centres and smartphones by 2025, as well as the implementation of a circular economy that will reduce waste.[iv]
The carbon emissions of computing, from component production to recycling, as well as energy use while the device is in use, were calculated by a team at Harvard and published in 2020. Their overview compiled information from numerous major tech companies' publicly accessible sustainability reports, including TSMC, Intel, Google, Microsoft, and Apple.[v] One of the most important conclusions was that the production of hardware, especially computer chips, now accounts for the majority of the carbon emissions from a wide range of mobile and data centre equipment (echoed in Samsung’s own reporting). The report did identify an overall reduction in carbon emissions in the industry, which is good news- this was largely a result of improvements in energy and performance. However, the global energy demands of the information and computing technology (ICT) industry are predicted to increase by 7% to 20% by 2030.[vi]
Source: Harvard University
The substantial use of energy in the chip manufacturing process is the key area responsible for the huge carbon footprint of the sector, now larger than Belgium.[vii] Consequently, the energy mix of the country in which the chip is made is paramount to the carbon footprint. In Europe, the US and China, all of Samsung's manufacturing plants operate wholly on renewable energy, but for Samsung in Korea and TSMC (the second largest manufacturer by revenue) in Taiwan, the energy mix remains a huge problem for the environmental credentials of the computing industry.[viii] TSMC spokesperson Nina Kao said:
“We know it is very important to drive renewable energy in Taiwan,” “Taiwan is a really small island with limited resources.”
Growing chip manufacturing capacity in countries that are able to support fully renewably powered plants is a direction that policy is beginning to support. In the US, the new CHIPS & Science act is purported to have attracted investment of more than $50 billion into the US chip manufacturing industry. Micron has invested $40 billion dollars that, it claimed, will create 40,000 jobs and increase the proportion of chips manufactured in the US over the next decade from less than 2% up to 10%.[ix] The European Chips Act seeks to lessen supplier dependence and boost European manufacturing of microchips by 2030. The act was motivated by worries about the supply of these chips, which has long been rigid and is prone to gluts and shortages. The pandemic significantly compounded supply issues, forcing some crucial European industries dependent on semiconductors to shut down production due to a shortage of components. The European Union's transition to a greener, more digital economy is in danger of being delayed due to the associated enormous expenses and economic losses.[x] By moving towards what the EU is calling “technological sovereignty”, they will not only make their supply more resilient but also make their green goals more achievable.
[i] ZDNET- Samsung aims to reach net zero carbon emissions by 2050
[iii] Samsung- Samsung Electronics Sustainability Report 2022
[iv] Reuters- Samsung Elec to invest over $5 bln as it targets net zero emissions by 2050
[v] Harvard University- Chasing Carbon: The Elusive Environmental Footprint of Computing
[vi] Ibid
[vii] Bloomberg- Chipmakers’ $52 Billion US Bonanza Imperils Environmental Gains
[viii] Ibid
[ix] The White House- FACT SHEET: CHIPS and Science Act Will Lower Costs, Create Jobs, Strengthen Supply Chains, and Counter China
[x] The Chips act- The EU Chips Act & Technological Sovereignty
Oscar is a recent graduate with a background in earth science. He is currently studying an MSc focussing on disaster responses, emergency planning and community resilience. His postgraduate research project will assess the link between climate crisis risk perception and attitudes to green energy projects. “Adapting to the climate crisis through the pursuit of net zero requires community engagement and understanding. Zero Carbon Academy’s goals closely align with this approach and I’m excited to have the opportunity to research and communicate a variety of topics relating to our environment and sustainability”.
