AMD triples renewable energy sourcing as it tackles semiconductor industry's emissions

In Taiwan, AMD has been striving to enhance renewable energy access and reduce carbon emissions in the semiconductor industry. During an international trip in the summer of the previous year, AMD recognized the challenges presented by energy-intensive manufacturing processes in areas with inadequate renewable resources. The company has notably increased its renewable energy sourcing from 36 GWh in 2020 to over 110 GWh in 2024 through various strategies, including onsite generation and renewable energy credits. However, AMD acknowledges that its supply chain emissions remain significantly higher than its operational emissions, primarily due to the energy demands of wafer foundries. Collaborating closely with TSMC, AMD has seen progress as TSMC has raised its renewable energy target for 2030 from 40% to 60% and advanced its 100% renewable energy goal from 2050 to 2040. However, Taiwan faces challenges in terms of renewable energy availability, with only about 12% of its electricity coming from renewable sources. This limited supply poses significant challenges for a sector where demand for advanced chips is surging, necessitating enhanced efforts and coordination to improve access to renewables. Notably, a report from the Semiconductor Climate Consortium highlights that the bulk of emissions in the semiconductor industry stem from electricity usage; approximately 80% of the industry's carbon footprint can be traced back to energy consumption. By advocating for a restructuring of emissions accounting principles, AMD is focused on solutions that address not just operational energy consumption, but also emissions at the supply chain level. The company joined the Emissions First Partnership to prioritize investment in renewable energy where grid emissions are higher, thus aiming to meet renewable energy goals more efficiently across its operations. Collective industry engagement is deemed essential by the Semiconductor Climate Consortium, which aims to harmonize the renewable sourcing strategies amongst companies to leverage greater market influence to attract investments. Their analysis outlines the disparity between renewable supply and demand and identifies critical manufacturing regions central to the global semiconductor supply chain's emissions. The path forward involves collaborative, data-driven approaches to enhance renewable energy usage, which is crucial not only for AMD but for the overall sustainable advancement of the semiconductor industry as it faces growing international scrutiny regarding its environmental impact.