Where Service Meets Sustainability: Orbit & Skyline’s Role in a Cleaner Semiconductor Industry

Semiconductors have powered the modern world, from cloud computing to electric vehicles and AI. Yet, the irony is clear: the very technology that enables smart, green innovation is itself energy-intensive and complex to manufacture, which makes us question:

Can semiconductors fuel sustainability—and practice it too?

At Orbit & Skyline Semiconductors, we believe the answer must be YES, not eventually, but urgently and systematically. We are confronting this paradox with conviction. Our mission is to redefine what it means to be high-tech in a world that demands responsibility, resilience, and regeneration.

Why Sustainability is Non-Negotiable in Semiconductors

Semiconductor manufacturing is among the most resource-intensive industrial processes in the world:

The Environmental Toll of Semiconductor Fabrication

As semiconductors become the invisible infrastructure behind every digital innovation, the environmental cost of producing them is becoming increasingly visible. Let’s identify four core sustainability pressures that shape our roadmap and responsibility:

1. High Energy Consumption in Fabrication

Semiconductor fabs are some of the most energy-intensive industrial facilities in the world. Maintaining vacuum chambers, plasma etchers, and temperature-stable cleanrooms 24/7 demands enormous electricity, often sourced from fossil fuels.

The impact: A single fab can consume as much energy as a mid-sized city.

The Approach: Transitioning operations to renewable energy sources, investing in ultra-low-power design techniques, and optimizing process flows to reduce idle and standby power across the fabrication line.

2. Extensive Use of Ultrapure Water (UPW)

Every wafer passes through hundreds of cleaning cycles using ultrapure water, water that’s been stripped of nearly all ions, particles, and microbes. Producing and disposing of UPW at scale has significant environmental implications.

The impact: Leading fabs can use up to 10 million gallons of water per day.

The Approach: Deploying closed-loop water recycling systems, exploring non-aqueous cleaning alternatives, and targeting >80% water reuse efficiency across new production nodes.

3. Rare Material Dependency & Waste Challenges

Semiconductor processes rely on elements like gallium, indium, palladium, and high-purity silicon, many of which are rare, difficult to mine responsibly, and hard to reclaim after use.

The impact: Material extraction and end-of-life waste both contribute to biodiversity loss and long-term ecological harm.

The Approach: Auditing material sourcing for ethical compliance, investing in recovery partnerships for critical elements, and exploring modular chiplet architectures to reduce wastage and extend product lifecycles.

4. Global, Carbon-Heavy Supply Chains

The semiconductor value chain spans thousands of kilometers, from raw material sourcing in Asia to design in Europe and manufacturing in the U.S. or Taiwan. This geographical spread amplifies embedded carbon and makes traceability difficult.

The impact: Scope 3 emissions (from supply chains) often exceed Scope 1 and 2 combined.

The Approach: Working to localize strategic nodes in our supply chain, implement blockchain-based traceability for ESG metrics, and engage suppliers in shared decarbonization programs.

The Green Toolbox: Core Strategies for Cutting Emissions in Semiconductors

The semiconductor industry, central to modern technology, faces mounting pressure to reduce its significant carbon footprint as demand for advanced chips surges. Achieving meaningful emissions reductions requires a multi-pronged approach—addressing direct manufacturing emissions, energy sourcing, supply chain impacts, and product design. Below are the core strategies forming the industry’s “green toolbox” for decarbonization.

1. Energy-Efficient Manufacturing and Operations

Smart Fab Design: Optimizing facility layouts, improving cooling systems, and adopting advanced process controls can substantially reduce energy consumption in fabs.

Process Parameter Optimization: Adjusting manufacturing parameters (like temperature and chamber pressure) can yield emission reductions without major capital investment.

Standardization: Streamlining and standardizing substation and equipment designs improves efficiency, reduces miswiring risks, and simplifies maintenance, ultimately lowering energy use and emissions.

2. Transition to Renewable Energy

Renewable Energy Integration:  Shifting to solar, wind, and other renewables for fab operations is one of the most impactful levers, as over 80% of semiconductor emissions stem from electricity consumption (Scope 2).

Distributed Energy Resources (DERs): Deploying on-site microgrids (solar panels, fuel cells, battery storage) not only cuts emissions but also enhances energy resilience.

3. Supply Chain and Materials Management

Supplier Engagement: Proactively collaborating with suppliers of chemicals, wafers, and gases to set emission reduction targets and encourage adoption of greener production and transport technologies is critical for tackling Scope 3 emissions.

Circular Economy Initiatives: Recycling water, chemicals, and components, and adopting minimalistic, recyclable packaging, reduce upstream and downstream environmental impact.

Ethical Sourcing: Ensuring raw materials are sourced responsibly, with attention to environmental and social impacts, is increasingly prioritized.

4. Product Design and Innovation

Energy-Efficient Chips: Designing chips that consume less power during operation helps lower the lifetime emissions of semiconductor devices, especially since most emissions occur during the use phase (Scope 3 downstream).

Biodegradable Electronics: Early-stage research into biodegradable semiconductors aims to address the growing issue of electronic waste.

Incorporating Efficiency into Design Criteria: Making energy efficiency a primary product performance metric is gaining traction across the industry.

5. Transparency, Measurement, and Collaboration

Emissions Tracking: Investing in advanced systems to monitor and report emissions across the value chain enables targeted abatement and regulatory compliance.

Industry Collaboration: Initiatives like the Semiconductor Climate Consortium foster collective action, set standards, and accelerate innovation toward net-zero goals.

Setting Ambitious Targets: Establishing clear, science-based near- and long-term emission reduction targets is essential for accountability and progress.

6. Regulatory Compliance and Continuous Improvement

Adherence to Global Standards: Proactive compliance with evolving environmental regulations and industry standards is now a baseline expectation.

Agile Optimization: Maintaining flexibility in operational strategies ensures ongoing alignment with new regulations and technological advances.

Summary Table: Core Emission Reduction Strategies

Flowing Forward: How TSMC is Redefining Water Sustainability in Semiconductor Manufacturing

In the fast-evolving world of semiconductor manufacturing, sustainability is no longer a peripheral concern—it is central to innovation, resilience, and long-term competitiveness. Among the giants of the industry, Taiwan Semiconductor Manufacturing Company (TSMC) has emerged as a global benchmark for how high-tech can also mean environmentally responsible.

At Orbit & Skyline, we help semiconductor fabs worldwide build towards this balance. And there is perhaps no better example to learn from than TSMC’s pioneering work in water sustainability.

The Role of Water in Semiconductor Fabrication

As semiconductor architecture advances from 2D designs to complex 3D FinFET structures, the use of chemicals and ultrapure water (UPW) increases significantly. Water is indispensable for wafer cleaning and contamination control.

In response, TSMC has implemented a layered water resource management system that includes real-time risk monitoring, regenerated water sourcing, and wastewater pollution prevention, all while scaling operations across major science parks in Taiwan.

Main Water Cell and On-site Recycling System Source

Water Risk Management: Measuring, Monitoring, and Forecasting

To manage water resource risk, TSMC employs a comprehensive water reporting and monitoring system. This includes:

• A network of hundreds of water consumption monitoring points
• Use of water balance diagrams to track flow and reclamation
• Real-time analysis of water allocation and recycling efficiency

The system provides granular data on process water consumption, wastewater generation, and domestic water use, enabling informed operational decisions and sustainable planning.

Smart Recycling: Reclaiming and Reusing at Scale

TSMC classifies wastewater by source and purity. Water from cleaning tools and purifiers is prioritized for internal recycling. Lower-purity wastewater undergoes treatment in on-site water recycling plants and is reused in systems like cooling towers and pollution scrubbers.

In 2019, the company adopted advanced water reclamation techniques, including:

• Reverse osmosis membranes
• Resin columns
• UV light purification

This allowed TSMC to replace city water with reclaimed water, especially in cooler seasons when cooling tower demand is lower.

Key Achievements in 2019

TSMC’s water-saving efforts in 2019 resulted in:

• 3,280,000 metric tons of additional water conserved
• 574,000 metric tons of water reclaimed from the TMAH system
• 1,286,000 metric tons of recycled water purified into industrial-grade water
• 5.2% reduction in water consumption per 8-inch equivalent wafer mask layer compared to the 2010 baseline (target was not fully met due to test production at new fabs)

These efforts were driven by:

• Recycling 436,000 metric tons of discharged cooling tower water
• Increasing the RO system’s water production rate by 132,000 metric tons
• Reclaiming 285,000 metric tons of hydrofluoric acid wastewater

Reclaimed Water Infrastructure: Public-Private Collaboration

To diversify water sourcing, TSMC began developing water reclamation technology in 2015. By 2019, the company:

• Launched the TSMC Tainan Science Park Reclaimed Water Plant in partnership with local authorities
• Set targets to supply 10,000 to 67,000 tons/day of reclaimed water
• Supported infrastructure for reclaimed domestic water use in production processes

By leveraging industrial and municipal recycled water, TSMC aimed to reduce reliance on city water and promote long-term water availability in science parks.

TSMC Water Consumption Rate at Three Science Parks Source

Pollution Control: Meeting Future Standards Today

TSMC proactively tackled major semiconductor pollutants, particularly:

• Tetramethylammonium hydroxide (TMAH)
• Copper ions (Cu2+)
• Ammonia nitrogen (NH4-N)

2019 Results:

• TMAH concentration in discharged water: 7.86 ppm (target < 8 ppm)
• Copper ion concentration: 0.09 ppm (target < 0.15 ppm; safe drinking water standard: 1 ppm)
• NH4-N concentration: 17.31 ppm (below effluent standards)

TSMC met or exceeded its 2025 pollution reduction targets six years early. Additionally, it produced 150 kg of cobalt bars via electroplating from cobalt-containing wastewater.

AWS Certification: A First for the Semiconductor Industry

In 2019, TSMC became the first semiconductor manufacturer in the world to receive Platinum Certification from the Alliance for Water Stewardship (AWS). The company earned a score of 114, the highest in AWS history.

Highlights of the evaluation included:

• Smart irrigation water control gates developed in partnership with local governments
• Industry-leading copper extraction systems
• Firefly habitat restoration, promoting biodiversity in the fab zones

Restoring Ecology: Firefly Habitat Initiative

TSMC also leads in environmental restoration. In 2019, over 200 fireflies were observed in newly restored habitats at the Tainan Fab. Efforts included:

• Managing vegetation cover and snail populations for Aquatica ficta larvae development
• Installing low-light firefly lamps to minimize disruption
• Expanding firefly habitats to new fab locations in Hsinchu and Taichung

This made TSMC the first industrial company in Taiwan to successfully bring fireflies back to an active manufacturing site.

TSMC’s achievements in green manufacturing, particularly in water sustainability, offer a clear message to the industry: large-scale semiconductor operations can align with environmental preservation through vision, engineering, and collaboration.

Their model demonstrates how data-driven risk management, smart recycling, pollution prevention, and ecological awareness can combine to create a future where technology and nature are not at odds, but in harmony.

Engineering a Sustainable Silicon Future

The semiconductor industry stands at a pivotal crossroads, one where innovation must not only drive performance but also responsibility. From energy-hungry fabs to complex global supply chains, the environmental footprint of chip manufacturing is substantial. Yet, as this blog outlines, the same precision and ingenuity that power Moore’s Law can now be redirected toward cutting emissions, conserving resources, and building resilient systems.

By leveraging critical levers, renewable energy integration, smarter equipment, green chemistry, circular design, and transparent emissions accounting, semiconductor companies have the tools to decouple growth from environmental harm. The transition won’t be instantaneous or easy, but the direction is clear.

In the era where every industry is being called to act, semiconductors—at the heart of clean energy, smart mobility, and climate tech, must lead by example. Sustainability is no longer a peripheral initiative. It is central to the future of high-tech.

The chips we build today will shape the climate of tomorrow. Let’s make them count.