Move toward semiconductor sustainability – by evolving from lean to smart manufacturing

Evolving to a smarter, more sustainable semiconductor manufacturing process is critical.
Semiconductors are the backbone of today’s technology, powering the performance of the essential electronic devices and systems we use every day, from smartphones to smart watches to smart grids, AI and cutting-edge manufacturing.
As a result, the unprecedented demand for smart devices is fueling a rapid expansion of the semiconductor industry, with chip production projected to nearly double by 2030, which in turn is driving a looming environmental challenge.1 Going forward, the increasing number of semiconductor plants, which typically operate continuously 24/7, will intensify the challenges of managing high energy usage, chemical use, massive water consumption, and emissions of greenhouse gases and hazardous pollutants. As we look deeper into the details, a story of urgency begins to emerge.
Table of Contents
What do the facts say about the industry’s sustainability challenges?
A joint report by the global association SEMI (Semiconductor Equipment and Materials International), the Climate Consortium, and the Boston Consulting Group, mentioned that the semiconductor industry (spanning from chip design, EDA and IP, wafer fabrication, manufacturing, and package, assembly and test) is responsible for 0.3% of global carbon emissions today. Another 1% is induced by upstream and downstream suppliers and users. 65% of emissions from semiconductor manufacturing comes from using electricity to power equipment and buildings. About 30% of emissions result from using process chemicals that enter the atmosphere during manufacturing.2
All of which makes sustainability crucial to the future of semiconductor manufacturing.
As the demand continues to grow for smart devices, so does the responsibility to ensure their design and production is environmentally responsible. The future of our world and the quality of our lives depends on it.
What is the key to moving towards an adaptive, more sustainable semiconductor production?
There is no single panacea. Semiconductor processes are complex, and every detail matters from design to production in achieving semiconductor sustainability.
…but what if semiconductor companies could find a way to master the complexity required to advance sustainable chip design and production processes, while at the same time scaling up with smart, secure operations throughout the product lifecycle and minimizing their carbon footprint?

The path forward to sustainability is enabled by smart manufacturing
Meeting the challenge of sustainable manufacturing can only be achieved through intelligent chip design and the sustainable production practices of smart manufacturing for semiconductors, working in collaboration with semiconductor equipment engineering and machine builders to evolve one cohesive system that minimizes the environmental footprint while maximizing productivity.
But what about all the gains made by lean manufacturing initiatives?
Over the years, semiconductor companies have relied on lean initiatives to help squeeze out every ounce of non-value-added processes to minimize waste and maximize productivity. However, increasing numbers of semiconductor manufacturers are finding that lean manufacturing alone cannot address the increasingly complex challenges facing them in today’s rapidly evolving market. Chipmakers know that lean manufacturing benefits are essential, but most also know that in today’s demanding market, it’s not enough. Today, remaining lean and not evolving to smart manufacturing limits the agility, manufacturing optimization, risk management and competitiveness that are essential to the well-being of every semiconductor manufacturer.
For the higher level of sustainable production performance required today, you need to evolve from lean manufacturing to smart manufacturing, without disrupting lean manufacturing gains.
Evolve beyond lean to become smarter
Lean initiatives are well known for their ability to reduce waste and promote continuous improvement, but making the evolution to smart manufacturing will get you everything you need for today’s rapidly evolving market, including greater sustainability, without losing your lean manufacturing benefits.
Sustainability depends on the end-to-end digitalization provided by smart manufacturing
With significantly greater digitalization, and its superior data workflow engine, smart manufacturing powers continuous optimization for a more sustainable design-to-production process to reduce carbon footprints and the use of water, energy, and other resources.
Sustainability requires digitalization, and smart manufacturing is far more comprehensively digital than the legacy systems the industry has relied on since its inception.
Fragmented legacy systems, many of which are unconnected without a common data platform or common language across systems, limit the secure collaboration and traceability needed for today’s ecosystem. Key design, engineering and manufacturing functions too often exist in silos where sharing information is difficult, which inhibits innovation, continuous improvement and impacts sustainability planning, execution and optimization.
By contrast, smart manufacturing with its inherently greater digitalization creates an enterprise-wide flow of data that ties all manufacturing execution system (MES) functions together with fab, line and automation design. Smart manufacturing shares real-time data gathered throughout the fab, including data from sensors at the equipment level up through every level of product and process recording and tracking. Data is fed into analytics systems to leverage both history and predictive analytics for better future outcomes.
This comprehensive information flow of real-time and historical data enables digital twins of the production process and production performance to simulate various “what-if” scenarios for virtual planning. Manufacturers can test options to optimize process, product and quality improvements through analytics applied to the manufacturing process to achieve sustainability goals.
Smart manufacturing optimizes a more sustainable design-to-production process
Siemens’ end-to-end sustainability solutions reduce carbon footprints and optimize the use of water, energy, and chemicals, ensuring safer handling of hazardous materials. They support responsible sourcing and utilization of materials for a more sustainable manufacturing process.
With smart manufacturing, chipmakers and machine builders can design and build future-proof semiconductor fabs by implementing a wide range of digitally integrated automation solutions, reducing energy consumption, enhancing efficiency and productivity, choosing less regulated materials, reducing water consumption, and providing people-centric workspaces in plant operations.
Sustainable chip design and production practices reduce carbon through smart manufacturing capabilities that incorporate energy-efficient equipment, renewable energy sources, automation and AI for energy savings, enhanced efficiency, yield, and quality control.
The pathway to becoming a Digital Enterprise serves as a roadmap to digital transformation that guides semiconductor companies on their journey toward digital maturity and operational excellence.
As a digital enterprise, smart manufacturing capabilities, techniques and programs enable semiconductor manufacturers to achieve sustainable change through digital transformation by developing and executing one sustainable business strategy, from design to production to finished chip.

Smart manufacturing takes lean manufacturing benefits and sustainability to the next level
Without disrupting any lean manufacturing gains, smart manufacturing adds the digitalization needed to combine simulation, execution control and analytics for continuous optimization of a make-it-right-the-first-time, high yield manufacturing process. Smart manufacturing provides the end-to-end connection you need to make data-driven decisions for faster NPIs and faster time to market, with higher yields in a zero-defect manufacturing environment.
With its superior data workflow engine, smart manufacturing powers continuous optimization for a more sustainable design-to-production process to reduce carbon footprints and the use of water, energy, and other resources. Smart manufacturing provides the production agility and empowers the intelligent decision-making needed to respond and compete in today’s rapidly evolving and increasingly complex market.
Sustainability is a journey, but the most important step is the first one
To design for sustainability begins with the commitment to reduce the carbon footprint. Lowering energy consumption, eliminating waste generation, and reducing chemical usage are good places to start. Then comes steps such as selecting environmentally friendly materials, less regulated substances, and sourcing alternatives to PFAS (per-and polyfluoroalkyl substances) to decrease the environmental impact.
Next, we must take steps to safeguard the most essential resource of all, by incorporating water-efficient technologies to minimize high-volume usage and wastewater creation. Then comes steps like leveraging Siemens FMCS (Facility Monitoring and Control System) to optimize resource and plant efficiency, while incorporating Digital Twins to plan and optimize fabs. And there are many other vital steps ahead.
What is required to be smart, secure, and sustainable?
There are numerous benefits provided by smart manufacturing that can help the semiconductor industry accelerate toward a smarter, more sustainable future:
- Smart manufacturing capabilities can incorporate sustainability practices rapidly and efficiently
- Enhanced innovation and sustainability practices are facilitated by using digital twins and data-driven insights to optimize processes, accelerate semiconductor development and new product introduction (NPI)
- End-to-end semiconductor process solutions embrace the ‘Design-to-Production’ process, spanning from the digital twin to the actual product, equipment, and production
- Increased yield and output, eliminate design re-spins to move toward zero defects, resulting in higher chip quality and production efficiency
- Reduced cost and downtime through predictive maintenance and optimized resource allocation to minimize production stoppages and associated costs
- Improved resilience and adaptability by enabling faster production cycles and flexible manufacturing processes, allowing rapid adaptation to market changes
- Sustainable practices, including optimized energy consumption and resource utilization, contribute to a more environmentally conscious production process and infrastructure
- Humans, machines, and digital tools evolving as one cohesive system – enhancing human capabilities through digital tools and ‘human-to-machine’ integration in the workspace
With the Siemens Xcelerator digital platform, semiconductor companies can follow this digital transformation roadmap to achieve a smart, secure, and sustainable design-to-production process for semiconductors. Seamlessly integrating with existing infrastructure, with a unified environment for data management, analytics, and collaboration, Siemens Xcelerator enables semiconductor companies to scale up while reducing environmental impact. Its adaptive, people-centric, and sustainable production ecosystem provides the agility and intelligent decision-making needed to respond and compete in today’s rapidly evolving market.
Very smart. But just as important, sustainable.
To discover more, visit our Sustainability Blog and download our insightful eBook, “Sustainability in Smart Manufacturing for Semiconductors.”
For more about semiconductor sustainability, visit www.siemens.com/us/en/products/automation/topic-areas/process-industries/semiconductor.html
References:
2. Pages 3, 12: https://discover.semi.org/rs/320-QBB-055/images/Transparency-Ambition-and-Collaboration-BCG-SEMI-SCC-20230919.pdf