Water

The semiconductor industry is the bedrock of modern technology, enabling everything from AI and cloud computing to electric vehicles. Yet, this critical sector is also one of the most resource-intensive globally, with a substantial dependency on water. A single fabrication plant can demand up to 10 million gallons of water daily, comparable to the consumption of a city with 300,000 residents. Much of this water is, of course, reused and recycled through sophisticated systems. This immense water usage, particularly the requirement for ultrapure water for processes like cleaning and etching, makes consistent access to high-quality water a non-negotiable for operational reliability and business continuity. The new insights report "Ripple Effects: Water Risk and Resilience Across the Semiconductor Value Chain" provides the first global baseline of water risk hotspots for the semiconductor sector, assessing water risks across 140 facilities across 89 water basins to inform future risk mitigation strategies.The analysis discusses how water risk can manifest itself as a financially material impact on business continuity by triggering idle time, recovery costs, and cascading delivery delays across global supply chains. S P Global projects that by 2050, water-related risks could cost the world's largest IT companies up to $24 billion annually. Crucially, the study identified flooding and reputational risks—such as strained relationships with local communities over water allocation—as the most significant immediate threats to the semiconductor value chain. These concerns are most acute in major hubs like Taiwan, South Korea, and parts of the U.S.While the industry is frequently criticized for its water usage, only 16% of the analyzed sites are currently affected by water scarcity. However, this metric offers a false sense of security. As climate change intensifies, the frequency and severity of water-related disruptions are set to exceed the scope of existing contingency plans. The long-term projections show that over 40% of semiconductor facilities announced since 2021 are located in watersheds projected to face high or extremely high water stress between 2030 and 2040. This underscores the urgent need to integrate forward-looking risk modeling into new site planning to ensure long-term operational resilience.Effective risk management is significantly hindered by the limited transparency surrounding supplier-level water data. While many companies perform water assessments for their direct operations, a comprehensive, industry-wide approach to supplier data and risk management is lacking. CDP data shows that 1 in 5 companies reported $77 billion under threat from supply chain water risks, yet only half of those companies engage with their suppliers on these issues. For semiconductor end users, these risks are often deep within multi-tiered networks, requiring engagement that goes well beyond Tier 1 suppliers.To manage these complex risks, the report stresses the necessity of moving toward a contextual approach that includes localized assessments. Contextual water risks are inherently location-specific, dependent on local availability, quality, and infrastructure, as well as broader catchment-level dynamics, regulatory pressures, and community expectations. Several structured methodologies support this necessary shift from basic operational management to corporate water stewardship, including the Alliance for Water Stewardship (AWS) Standard, the TNFD's LEAP framework, and the Science Based Targets for Nature (SBTN). This approach encourages companies to look beyond their own operations to safeguard regional water security.Because water is a shared resource, collective action is essential to deliver the scale and urgency needed to tackle common challenges within catchments. The semiconductor value chain is deeply interconnected, with companies often sharing suppliers within the same water basins, creating a strategic opportunity for collaborative stewardship. The report encourages companies to scale their impact by moving beyond isolated efforts to form sector-wide and cross-sector partnerships—especially at the catchment level—through public-private engagement. This collaboration, which includes proactive engagement with policymakers and local utilities, is key to aligning on water management and stewardship practices to address shared water challenges and build collective trust.Innovation and technology must play a central role in advancing water stewardship across the value chain. A major hurdle is the general undervaluation and mispricing of water, which perpetuates systemic underinvestment in water-focused technology. Despite this, leading semiconductor companies are deploying advanced solutions such as onsite recycling systems, real-time water monitoring, and utilizing alternative sources like municipal wastewater. Embracing AI-driven systems for scenario modeling and catchment-level risk forecasting further enhances adaptive capacity and resilience.The "Ripple Effects" report makes it clear that water challenges affect every segment, demanding tailored response tactics and strategies. Foundries, with their large operational footprints, must prioritize sourcing reclaimed water and expanding onsite reuse, while chemical and materials suppliers must proactively manage rising regulatory risks around water quality contaminants. The insights report also provides a practical roadmap for advancing corporate water stewardship, outlining progression from water risk assessment (Stage 1) to site-level action and collective engagement (Stage 2), and culminating in transparent validation and reporting (Stage 3). By following a structured water stewardship pathway, the semiconductor industry can build operational resilience and ensure a responsible future for the entire value chain.To learn more, download the report or watch the webinar recording. Alua Suleimenova is Senior Program and Staff Manager | Global Sustainability at Marvell Technology and leader of SEMI's ERMR Working Group.The Environmental Risk Mitigation and Reporting (ERMR) Working Group was established under SEMI's Sustainability Initiatives in January 2023, and it aims to develop a baseline and roadmap of best practices for identifying, managing, governing and reporting climate, water, and biodiversity risks across the semiconductor value chain. This insights report is a publication in SEMI’s ERMR Working Group thought‑leadership series on global environmental risks and resilience.

SEMICON West in Phoenix, Arizona, will bring together all of the SEMI Sustainability efforts and programs under one roof over three days. With back-to-back sessions from October 7-9, this year’s Sustainability EHS Program will offer expert insights on the most pressing sustainability topics facing the microelectronics industry. Tuesday will kick off the program and focus on the business aspects of driving to sustainability in the semiconductor sector. On Wednesday, the Pavilion hosts discussions on water risk, water management, circular economy solutions and the needs for innovation from startups. Finally, Thursday will highlight the current emissions landscape, milestones and achievements, and solutions developed by the SEMI Semiconductor Climate Consortium (SCC). The 2025 event also marks the first public discussions of the full scope, findings and status of the SCC’s direction.All three days of the Sustainability EHS Program are sponsored by Edwards, Schneider Electric, TEL, SCREEN, Sundt and the Greater Sacramento Economic Council. Here’s a sneak peek at what the 2025 program has to offer. Registration for SEMICON West is open.The Business of Sustainability – Tuesday, October 7 Sustainability Panel: Path to Success Sustainability hits the keynote stage with Tuesday afternoon with a panel discussion detailing a plan for meaningful sustainability progress. The panel, titled Sustainability Panel: Path to Success—The Semiconductor Industry Leads the Way for a Resilient Future, will take place on the CEO Summit Keynote Stage from 2:35-3:35 p.m. Experts from Applied Materials, BASF, Micron, Google, and Qualcomm will cover strategies on how collaboration, supplier engagement, and clean technology investments are reducing emissions and propelling the industry closer to its sustainability goals. Attendees will discover what’s working, what’s still to come, and how the industry will forge its way toward a more sustainable future.A Musical Performance by Ay YoungIn anticipation of the Path to Success panel discussion, Tuesday will also spotlight an exciting musical guest. AY Young is a singer, songwriter, and the founder of the longest-running clean energy concert series in the U.S. At 2:20 p.m., he’ll take to the CEO Summit Keynote Stage for a memorable performance and give a glimpse into how important sustainability has become to attract a new generation of talent. Through his musical talent and deep commitment to clean energy, Young was appointed as a United Nations (UN) Young World Leader in 2020, helping the organization further its 17 Sustainable Development Goals. His Project17 initiative is a 17-song album, with each song centering on a different goal and backed by a corporate sponsor that aligns with it. Young will also attend the Sustainability Reception from 5-6:30 p.m. at the Sustainability Pavilion Theater.EHS Regulatory OverviewThe wide range of regulatory topics will be showcased in the first session on Tuesday at the Sustainability Pavilion. Expert speakers and advocacy groups will deliver key insights on the threats and challenges, and the research and collaboration opportunities currently at play in the regulatory environment, with special focus on keeping electronics manufacturing strong. Climate Equity Social Impact Workgroup (CESI) Aligning with the theme of the UN Sustainable Development Goals, the SEMI Climate Equity Social Impact (CESI) Working Group will highlight how its members are progressing real-world outcomes for climate, education, and global cooperation. This session will run from 3-4 p.m. at the Sustainability Pavilion Stage, and it’s ideal for anyone in the industry who’s passionate about sustainable partnerships. Innovations Enabling Reduce, Reuse, Repurpose and Recover – Wednesday, October 8Resource Use and Circular EconomyWednesday’s 10:15-11:30 a.m. session, Resource Use and Circular Economy will offer tactical solutions to help fabs reach up to 80-90% circularity. The goal of this session is to lay a foundation for transforming the industry’s circularity concerns into practical opportunities, which will be achieved over two panel discussions. Discussion 1, A Circular Value Chain: Challenges and Leading-Edge Solutions, will highlight solutions for eliminating waste and reducing manufacturing costs through circular technologies. This panel will feature experts from Edwards, Syensqo, and ElectraMet and will be moderated by Subgeni’s Taimur Burki. These subject matter experts will highlight their company solutions, but also other areas they see in need of consideration from a circularity lens, as well as best known practices across fabs. Water is a precious resource, and how the industry manages it is crucial for its long-term success. Discussion 2, Tactical Maturity Scales for Water Management, will unveil two new guides developed by SEMI’s Water Management Working Group. Both products are designed to move manufacturers from both large and small fabs and manufacturing operations to assess their water needs and most efficiently improve water reuse by up to 80%. This panel will be led by speakers from Aquatech, SCREEN, Sundt, Ovivo, and C2MI. Water Resilience Starting at 11:30 a.m. at the Sustainability Pavilion Stage, attendees will hear from the SEMI Environmental Risk Mitigation and Reporting Working Group lead - Senior Sustainable Program Manager – Alua Suleimenova – as she shares her insights and findings from a recently completed study by WaterPlan on industry water risks within the semiconductor value chain. The topic and findings will then be addressed by a panel, where Suleimenova will engage leaders from ASM, Waterplan, ERM, and the Alliance for Water Stewardship, in a conversation about water, nature, and associated corporate risks. Although companies are making strides to protect water access, it’s becoming clear that a focus on internal activities will not move the needle significantly enough for achieving long-term resilience. This panel will offer solutions for adapting water-related risks to the supply chain, with a focus on North America, Asia Pacific, and Europe.Other Wednesday AttractionsSEMI S3 – Startups for Sustainable Semiconductors: SEMI S3, or Startups for Sustainable Semiconductors, is an annual program by the industry’s venture capital divisions designed to boost awareness of semiconductor industry needs by inviting promising startups to be mentored and pitch their solutions to our industry. Earlier this year, 145 candidates submitted applications. Now, it’s down to 15 finalists, who will present at SEMICON West from 2-4:40 p.m. at the Sustainability Pavilion, following a Fireside Chat from experienced innovation experts from 1-2pm.Accelerating Sustainability with Smart Manufacturing – Presentations Poster Session: Technical papers and posters focused on sustainability solutions – from water to energy – will also be presented in the Smart Manufacturing Pavilion from 2-5:15 p.m., providing an opportunity to network with industry leaders and discover the latest best practices for how machine learning and AI can reduce water and waste in fabs.Reducing Emissions – Thursday, October 9SCC – Tackling Emissions Across the IndustryExpect a full-house at Thursday’s all-day session featuring SCC – Tackling Emissions Across the Industry. From 10:15 a.m. to 3:00 p.m., the SEMI SCC leaders and experts will detail its findings and projects addressing the industry’s emissions. SCC has been focusing on ensuring consistent and measurable progress in decarbonizing from 2021 levels. Key topics include: Reporting and aligningBaseline, ambition, and roadmapAbatementLow Global Warming Potential (GWP) gases workLow Carbon Economy (LCE) access and procurementEnergy efficienciesScope 3 upstreamSEMICON West also features SEMI U courses to learn more about sustainability in our industry. For example, on Thursday, SEMI U: PFAS Compounds in Semiconductor Environment, is being offered from 8 a.m. to noon. This course is available for purchase. Support the SEMI Forest community effort to reforest our planet by funding a range of certified carbon avoidance and tree planting projects. Our goal for SEMICON West is to fund planting for 100,000 trees. Scan the QR code below to contribute and help us meet our goal.Learn more about the 2025 SEMICON West Sustainability EHS Program. Follow SEMI Sustainability on LinkedIn for regular updates on sustainability initiatives. Saifi Usmani is Vice President for Sustainability at SEMI.