ESG Database

Electronic Industry

The pandemic has changed the way people work and learn, and life has become more  dependent on electronic products than ever before. This dramatic growth in end-user demand  has made the semiconductor market, which is at the forefront of the global electronics industry, even more sought after. On the other hand, the escalation of the China-US trade war into a  technology and territorial conflict has elevated the decision-making considerations in the  semiconductor industry to an international political issue. The buzzing semiconductor industry has also brought its environmental hazards to the forefront, making it a target for environmental advocacy groups. Consequently, the semiconductor industry has shown early awareness of energy deployment and faster progress in energy planning compared to other industries.

Regionally, companies in Europe and the U.S. have been adopting and planning for renewable energy earlier and faster than their Asian counterparts. This suggests that there is a more urgent need for European and U.S. companies to exert pressure on their supply chains to go green, resulting in stronger pressure on upstream players in Europe and the U.S. to manage their supply chains compared to their Asian counterparts. If the impact of the U.S. CHIPS Act aligns with expectations, specifically a shift in the center of gravity of the semiconductor industry from Asia to the U.S., the entire industry will likely be affected by the renewable energy trend in Europe and the U.S., thereby accelerating the energy transition process.