India has set course towards becoming a semiconductor nation with chips becoming critical for nearly all sectors. The bulk of fabrication facilities all over the world were made operational in the mid/late 1990s and in the initial eight years of the current century. The emphasis on ESG aspects at that juncture was seemingly lower, with the much-required UN Sustainable Development Goals (SDGs) promulgated only in 2017.

Chip fabrication is an extremely complex process. The fabrication facilities are large, complex units which require continuous supply of pure water, uninterrupted power and a seamless supply of materials and gases. These facilities leave a large carbon footprint which calls for calibrated waste management. The entire operational cycle is both manpower and machine intensive, with negligible downtime for both.

The establishment of Indian Semiconductor Mission (ISM), availability of experts in these high technology activities in India and among the Indian diaspora, and the prowess of policymakers provide an unprecedented advantage to India. States are also weaving this important aspect into their policies. Incentives for innovation and R&D in this domain, keeping the sustainability aspects in mind, are important. With the government owned SCL, Mohali in operation since the early 1980s without any disruption, a repository of best practices is already available in the country.

Usage of renewable energy for chip fabrication facilities is a highly enabling option. India is taking giant strides in this sphere and ranks fourth in the world with installed capacities of 60.81 GWAC and 40 GW in solar and wind power, respectively, open-source data reveal. And improvements in efficiency and storage of power will lead to a far smaller carbon footprint.

To streamline process management — 450-500 processes are involved in chip manufacturing — innovative usage of Artificial Intelligence, Internet of Things and robotics can help shorten the processes. Building responsible supply chains with least logistics and a large indigenous content are other aspects which need to be factored in. Recycling water and sustainable waste management will in themselves catalyse change in these manufacturing processes. Incentives for research in greener materials and adoption of the same is already a work in progress and this would be a game changer for chip manufacturing. Controlling emissions is another challenge, which can be achieved by decreasing power consumption and utilisation of greener gases, if feasible.

As India embarks on the journey to create these new capital intensive, high technology fabrication facilities, it has the potential to demonstrate the viability and applicability of manufacturing critical technology with sustainable best practices.

Adaptive ESG policies with inter-ministerial and multi-stakeholder discussions, innovative practices by the academia and adoption of these practices by the industry will lead to a green future powered by Indian chips.

The writer is Vice President, India Electronics and Semiconductor Association

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