- Semiconductor
Why should the semiconductor fabrication industry invest in a sustainability strategy? Simply put, it reduces operational costs, improves competitiveness, and ensures regulatory compliance.
Sustainability can be understood as how a facility’s backbone systems – such as heating, cooling, HVAC, and exhaust – can be run with less energy, fewer inputs, and less waste. In the semiconductor industry, sustainability is the ultimate driver for efficiency and cost improvement.
Underpinning this move toward sustainability are Greenhouse Gas (GHG) emission regulations, as well as budgetary considerations arising from carbon emission taxes, all of which are likely to continue to increase.
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Many of the world’s largest companies have committed to a target of net zero greenhouse gas emissions by 2040. Other goals include an interim 55% GHG reduction (from 1990 levels) by 2030. From a financial perspective, one of the key motivating factors in these GHG goals, is that in EU countries the carbon tax set through the Emissions Trading System could reach €100 per tonne by 2030.
Consequently, the semiconductor industry, like many others, is looking to do things more efficiently and cost-effectively.
This interest in sustainability doesn’t come without some measure of discomfort, especially in terms of the time it takes to assess a facility’s needs. AD systems’ sustainability assessment can be a significant undertaking. In one recent project, for example, a comprehensive water system assessment took six months. More usually, however, depending on the scale and complexity, it may take eight to 12 weeks to carry out a system assessment.
A successful sustainability strategy requires a fundamental understanding of the process, obstacles to success, and technological innovations that can help move the initiative forward.
Common obstacles
What are the most common challenges facing a facility that is considering a sustainability strategy?
The answer to that question depends on how well advanced a company may be in the management and control of backbone systems such as water, heating, compressed air, and lighting. In our experience, facilities may use a combination of new and legacy systems. With older systems, challenges are much more equipment-driven: end-of-life concerns for boilers, for instance, which could introduce opportunities for heat pumps.
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Overall, however, the biggest challenge to creating a sustainability initiative is the risk of interruptions to production (ITPs). We’ve seen a general nervousness around performing significant sustainability work if it means a facility may have to be taken down for any appreciable amount of time. Finding a window of opportunity to make these changes is tricky, especially when many facilities operate on a 24/7 schedule.
There is another side to this coin: sustainability initiatives typically yield greater benefits in the long run, even when balanced against the potential risk of ITPs. Such projects can improve capacity or expand production without investing heavily in building an entirely new system.
Making existing systems more efficient can improve backend capacity and, in the end, save money related to operational expenses.
Technological advancements: Energy management software
Over the years, there have been many equipment innovations shown to enhance sustainability, such as heat pumps with high efficiency ratings. Those types of advances are relatively familiar to most people.
But the greatest (and perhaps most underappreciated) technological advancement in the past couple of years has been in energy management software. We've seen a much greater appetite lately to engage with that type of technology, especially in cases where the software is integrated with AI to some extent.
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Arcadis has partnered with Cool Planet to provide the semiconductor fabrication industry with a software platform that leverages dashboards and trackers to analyze system performance, flag anomalies, compare systems, and enhance operational efficiency. This type of work would have been much more laborious even two or three years ago.
Energy management software, plus AI, enables organizations to make informed decisions about which projects to address and how to prioritize them. Over the years we’ve found that for most large facilities operators, the real question is not “what do we do,” but “what do we do first?” And then, "how do you map that out?" The information gleaned from this type of software innovation can make it easier to decide on how aggressive a company needs to be in pursuit of its sustainability goals.
Key phases of sustainability assessment
Embarking on a sustainability strategy requires careful planning and execution, which may or may not require outside consultants. While every facility’s roadmap may differ, most successful strategies follow six key phases:
System mapping and assessment
Here, a model is used to forecast usage and to develop a scope of work.
Project concept generation
In this phase, project opportunities are identified, followed by a risk assessment, prioritization of work, and an estimate of return on investment.
Feasibility studies
In the feasibility phase, the project scope is developed along with a detailed technical analysis and additional risk assessment. There may also be additional estimates of potential return on investment.
Design
Having established that the project is viable and meets all the prerequisite criteria, the project scope is passed over to the design team. Here, the team provides the detailed design for the project delivery.
Construction and commissioning
This phase typically involves project management, construction management, scheduling, and cost tracking.
Measurement and verification
Here, baseline and subsequent measurements are made across a set reporting period. These measurements are taken, in general, in five-minute intervals across 365 days.
Tips for success
With this general understanding, how do you ensure that your sustainability strategy will be successful? Here are three pieces of advice to follow:
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Secure senior management buy-in
Sustainability initiatives require commitment at the highest levels of an organization. It's common for some organizations to work with engineers on identifying sustainability projects and building out a roadmap, only to have the project scuttled at the senior management level, whether for financial or other business reasons. Without senior management buy-in, there may not be sufficient commitment to see this type of project through to completion.
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Understand your targets
What specifically are you trying to achieve? An organization can go wrong by trying first to identify projects, then working backwards to integrate them into their existing systems, and finally trying to calculate savings.
It's important first to set actual targets – saving a particular amount on energy or water usage, for example. It’s also important to understand what those savings might mean when measured against current usage. This may seem obvious, but you'd be surprised by how often this step is not done.
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Prioritize early wins
While a comprehensive assessment is ideal, demonstrating early successes can build confidence and secure continued buy-in from leadership. Focus on quick wins—projects that yield immediate savings or noticeable improvements—while using data-driven insights to map out larger, long-term opportunities. Ideally, having a full assessment carried out up-front is preferable, but it is also good to demonstrate a win early on. One way to ensure continuing buy-in from senior management is to front-load projects with some quick wins.
Closing thoughts
To build early momentum and gain senior management’s confidence, start by identifying sustainability-related opportunities that offer quick wins—such as early cost savings or other visible improvements. These initial successes help establish credibility and support for broader initiatives.
While those early actions are underway, conduct assessments and audits to develop a comprehensive, data-driven roadmap. This will help uncover longer-term, high-impact opportunities that align with strategic goals.
Sustainability presents a powerful opportunity to create lasting value for the organization. With regulatory requirements continuing to expand, investing time now to lay the groundwork for your sustainability strategy will position you for successful implementation and long-term impact.
