Carbon cutting and the 'wafer queen' - Nikkei Asia
Hi everyone, this is Cheng Ting-Fang, your #techAsia host for this week. My recent holiday to Florence, Italy, to explore the birthplace of the Renaissance and the city's renowned museums was a delightful escape. After a leisurely stroll up a hill to Piazzale Michelangelo, I was rewarded with a breathtaking sunset and a lively concert. And to truly unwind from the tech industry's frenetic pace, I also immersed myself in several Korean dramas while away.
Focus on Carbon Footprint Reduction
Upon returning to work this week, I quickly found myself back in the semiconductor world. A visit to ASML's massive chipmaking tool refurbishment center in the Taiwanese city of Taoyuan spurred me to think about the most pressing issue commonly faced by the tech industry: how to aggressively cut its carbon footprint.
One crucial aspect of that reduction is minimizing waste through reuse and recycling. In the ASML cleanroom I visited, engineers are reworking the company's PAS 5500 series lithography machines -- the European top chip tool maker's most long-lasting model that was first introduced more than 30 years ago.
Even though they can't be used to produce the most cutting-edge AI processors, these machines are still useful for making various sensors, accelerometers, and ultralow-power chips. Since the center started operation, it has brought back retired equipment from chip plants globally, torn them down, separated their parts, and repaired and reassembled over 130 sets of machines to put them into use again.
The Role of Renewable Energy
The circular economy has evolved from a theoretical concept to a prominent topic in the tech industry, driven by global leaders such as Apple, Google, TSMC, and ASML. But another crucial element in reducing carbon emissions is access to renewable energy, which ASML and many other chip and tech companies have found to be a significant challenge in Asia.
After years of challenges, ASML finally secured some renewable energy sources in Taiwan. The company is also actively exploring green energy options in South Korea, where it has a significant presence but limited renewable resources. Notably, ASML already sources 100% of its energy from renewable sources in the U.S., Europe, and China.
The 'Wafer Queen' and Sustainability
Doris Hsu, chairperson and CEO of GlobalWafers, the world's third-largest wafer maker, considered sustainability and access to renewable energy as the critical factors when her company decided where to expand manufacturing activities.
She mentioned that utilizing green energy in production processes will make wafer materials more competitive and preferred by customers, emphasizing the importance of sustainability in business decisions. Hsu, also known as the "wafer queen," is leading her company's expansion in various countries to build a more diverse production footprint and meet the growing demand for wafer materials.
Investments in Automation and Manufacturing
A shortage of technicians and skilled workers is a common challenge facing major economies. One potential solution is to increase investment in automation, allowing machines and robots to assist with manufacturing tasks.
Nikkei Asia's Mitsuru Obe visited Mitsubishi Electric's largest factory, where the company builds industrial robots and precision machines. One flagship machine can drill 6,000 holes per second at varying depths into multilayer materials, a critical tool for making print circuit boards for AI computing.
Virtual Reality and AI in Emerging Markets
Vietnam has emerged as an electronics production hub and recently secured another victory. Facebook parent Meta announced it will make its latest virtual reality headset, the Quest 3S, in Vietnam from 2025, aiming to spur growth in the market with additional AI services planned for the region.
However, challenges exist for tech companies in Vietnam due to the country's political landscape, requiring collaborations with authorities to navigate regulatory hurdles.
These developments in sustainability, renewable energy adoption, automation, and emerging market expansion highlight the evolving landscape of the tech industry as it strives for innovation and environmental responsibility.
