Study: Europe should focus on environmentally friendly chip production

Sustainable strategy required for Europe's semiconductor market Study: Europe should focus on environmentally friendly chip production

2025-03-24 From Sebastian Gerstl | Translated by AI 2 min Reading Time

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Europe's chip industry can secure global competitive advantages with sustainable production, says a study by the think tank "Interface". The analysts recommend a focus on existing strengths and a strategy away from the more environmentally harmful high-end production of semiconductors.

The production of mature or legacy semiconductors, such as those used in cars, power grids and industrial applications, is generally considered to be less harmful to the environment than the production of high-end chips. As European manufacturers are already very strong in these areas, the EU is particularly well positioned to take on a global pioneering role in sustainable chip production, concludes the think tank "interface" in a recent study.(Image: freely licensed / Pixabay) — The production of mature or legacy semiconductors, such as those used in cars, power grids and industrial applications, is generally considered to be less harmful to the environment than the production of high-end chips. As European manufacturers are already very strong in these areas, the EU is particularly well positioned to take on a global pioneering role in sustainable chip production, concludes the think tank "interface" in a recent study.
(Image: freely licensed / Pixabay)

The European semiconductor industry is facing a decision on the direction to take. A recent analysis by the think tank "interface" shows that emissions in global chip production have risen dramatically over the last eight years. State-of-the-art chips for AI applications in particular require resource-intensive production. Experts are therefore calling for a strategic reorientation of the EU towards more environmentally friendly production.

According to the study, energy consumption in the semiconductor industry has risen by 125% since 2015. At the same time, direct emissions have increased from 15.4 to 18.9 million tons of CO₂ equivalents. Modern manufacturing processes for high-end chips are particularly problematic, as they not only require more energy, but also environmentally harmful chemicals such as fluorinated gases.

Europe's opportunity: sustainable semiconductor production

Experts therefore suggest that Europe should not primarily focus on the costly expansion of high-end chip production, but instead concentrate on established technologies. "Where we can increase our competitiveness is by strengthening European companies that are already market leaders and produce chips for the green transformation," says Julia Hess, who led the study. Companies such as STMicroelectronics, Infineon and NXP are among the world's leading manufacturers in this field.

Thanks to its climate strategies and access to renewable energies, Europe offers better framework conditions for sustainable semiconductor production than other regions. The majority of modern chip production takes place in Asia, where climatic conditions require additional energy expenditure. Through strict environmental standards, Europe could position itself as a pioneer in sustainable chip production and gain a long-term competitive advantage.

Transparency and standards as key factors

One of the biggest challenges remains the lack of transparency in reporting on emissions and energy consumption by semiconductor manufacturers. Different methods of CO₂ accounting make comparisons difficult. The introduction of a standardized framework could help to make ESG reports more meaningful and make real progress in sustainability measurable.

The EU should critically rethink its chip strategy. Instead of focusing on emission-intensive high-end manufacturing, it could build on its strengths in sustainable production. A long-term strategy that combines environmental protection and competitiveness would not only strengthen the European chip industry, but also contribute to global leadership in sustainable technology production.(sg)

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