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| SK hynix' chip plant in Icheon, Gyeonggi Province / Courtesy of SK hynix |
By Kim Bo-eun
Chip and display manufacturers have affirmed pledges to achieve carbon neutrality, but the market cycle is demanding increased production resulting in more emissions.
Major companies are paying attention to curbing emissions, as their manufacturing facilities churn out products at full capacity and they look to expand production to meet the surging demand for chips and displays amid the COVID-19 pandemic.
Data shows emissions are increasing for Korea's two largest chip makers Samsung Electronics and SK hynix, as they scaled up production to meet higher demand last year.
Samsung's greenhouse gas emissions grew to 13.6 million tons in 2020, a 22 percent increase from the previous year. SK hynix also saw its emissions increase to 4.68 million tons last year, up 24 percent from a year earlier.
"The growth of emissions last year could be attributed to the expansion of production facilities such as in Pyeongtaek," a Samsung Electronics official said.
SK hynix also attributed the emissions increase to a growth in production reflecting the market downturn in 2019.
While the chip and display industries account for a relatively small portion of total emissions here, companies are seeking to operate in an eco-friendly manner, given the overall shift to ESG management. The chip industry's emissions accounted for 2.35 percent of Korea's total emissions of greenhouse gases in 2018. The figure for the display industry was 1.94 percent.
"We are monitoring the level of emissions and have applied technology in our production lines that reduces carbon emissions," an LG Display official said.
This is done by setting up equipment that breaks down SF6 gas that is used in the production process. SF6 has a global warming potential of 22,200 times that of CO2 over a 100-year period. The display maker has also substituted gases used in the production process with a lower global warming potential.
Emissions associated with electricity consumption accounted for 70 percent of greenhouse gases emitted by semiconductor and display makers.
Chip makers have joined the RE100 movement, which seeks a 100 percent switch to renewable energy.
Last month, the government launched a committee with business groups involved in the chip and display industries, to jointly develop eco-friendly technologies.
The government plans to offer incentives for businesses in the sector to cut carbon emissions, such as by providing tax benefits. This is part of a larger goal to achieve carbon neutrality by 2050.
