Copyright ITRI Contribution by Semiconductor Industry 
in Energy Efficiency and Decarbonization
Stephen Su
Vice President and General Director
Industry, Science and Technology International Strategy Center, 
ITRI
2021/09/17
RD/IT/45Copyright ITRI 
 11Outline
•Global Net Zero and ICT in Carbon Reduction
•Development of Semiconductor Industry 
•Contribution of Semiconductor in Decarbonization 
•ConclusionCopyright ITRI 
 2•To achieve global warming within 1.5 °C, 131 countries have 
declared a 2050 net zero emission target as of May 2021
•Proactively plan possible paths and policy goals of "net zero 
carbon emissions " globally
IPCC：Intergovernmental Panel on Climate Change
Environmental 
Carbon Reduction
•CO2 capture and use
•CO2removal (Bio -energy 
capture and storage)
Energy Supply
•Zero carbon energy (renewable 
energy, smart grid)
•Alternative energy (Biomass, 
hydrogen)
Production Activity
•Circular economy 
•Zero (low) carbon 
production and process
Consumption Model
•Energy efficiency 
improvement
•New business model 
(sharing economy)
Source: ITRI/ISTI Global Trend ：Zero Carbon EmissionCopyright ITRI 
 3Net Zero Emissions Race
2021 Scorecard by Country
Source: Energy & Climate Intelligence; https://www.re100.org.tw 
•12 countries have enacted legislation: 9 countries in Europe , 
accounting for 75%, others include Japan, Canada, New Zealand
•RE100 leading companies set goal of "zero carbon emissions" and 
will guide industrial supply chain toward use of green power
Global Giant companies
11 local companies joined RE100
Biotech
Textile
ElectronicsCopyright ITRI 
 44
•ICT has the potential to reduce EU carbon emissions by over 1.5 Gt 
CO2e in 2030
•Greatest potential gains with ICT-enabled carbon solutions , e.g. 
manufacturing, energy and buildings sectors account for74%
Source：BT (2016), The Role of ICT in reducing carbon emissions in EU12 Economic Sectors
Smart Manufacturing , 
31%
Smart 
Energy , 22%Smart Buildings , 
20%Smart 
Agricuture , 7%Tranffic Control and 
Optimisation , 5%Smart Logistics , 4%Others , 11%
1.5 Gt CO2e
in 2030Potential to Reduce 
EU Carbon Emissions by ICTPotential of ICT -enabled Carbon ReductionsCopyright ITRI 
 5•AI, IoT, and 5Gpromote new economy, with multiple smart 
applications
•Semiconductor (US$667B) as backbone of many smart applicationsSemiconductor Industry as Backbone of
Many Smart Applications
Source: ITRI/ISTI 
Smart Transportation
Smart CitySmart Machinery
Smart HealthSemiconductors
2025
Worldwide market
US$667B
(CAGR7.6% )
Smart Home Smart Energy
Copyright ITRI 
 66
Semiconductor Industry Value by Activity 
and Region
Source: ITRI/ISTI US
US$244B
(43%) Europe
US$41.8B
(7%)
China
US$38.7B
(7%)South Korea
US$87.7B
(15%)
Japan
US$47.2B
(8%)
Separate Customs Territory of 
Taiwan, Penghu, Kinmen and 
Matsu
US$108.9B
(19%)•Advanced processors
•EDA
•Equipment & Tools•Core IP
•Equipment & Tools
•Specialty gases
•W afer fabrication
•Assembly , packaging & 
testing
•Silicon wafers, 
packaging substrates•Memory
•Equipment & 
Tools
•Photoresist•W afer fabrication
•Assembly , packaging 
& testing•DRAM
•W afer fabrication 
•Memory•Regions specialize in different activities of the value chain: US
leads in Design andAsia in manufacturingCopyright ITRI 
 7
Semiconductor Industry Plays a Key Role in 
Global Supply Chain
Northern Cluster
(80%)
Completed CorridorHSP
CTSP
STSPCentral Cluster
(5%)
Southern Cluster
(15%)
Continuing 
Expand•Semiconductor industry has “industrial clusters” + “technological 
superiority” , characterized high degree of resilience during pandemic
•Being the benchmark of Harvard Business School's semiconductor 
cluster cases
2020 Worldwide Position
Source: ITRI/ISTI
IC Foundry
77.3%ICDesign
20.1%ICPackaging
57.7%
<10nm process accounted for 92%
Copyright ITRI 
 8
Industry :   225K
Value Chain : 262K
Service : 198K
Total :             684KIndustry :  109B
Value Chain :48B
Service : 32B
Total : 189B2
020
Source: ITRI/ISTISemiconductor Industry Creates US$109B 
Revenues, 225K Jobs 
Additional: 0.7X Revenues and 2.0X Jobs
Total effectInduced Services effectValue Chain effectDirect effectCopyright ITRI 
 9
Electricity Efficiency of Major Manufacturing Industries
Note: Electricity intensity refers to the electricity consumed to produce value added 30
US$ per year.ICT Industries Feature the Highest 
Electricity Efficiency
TSMC Outperforms Most Local Manufacturing Industries
Source: ITRI/ISTIMost 
preferable 
quadrant Copyright ITRI 
 1010•Method 1:  Top -Down
➢ACEEE simulates the use of semiconductor -inside electronic 
products in different scenarios to conserve the annual 
electricity consumption in United States. 
Reference: Semiconductor Technologies: The Potential to Revolutionize U.S. 
Energy Productivity , John A. et al., 2009, ACEEE Report No. E094
•Method 2:  Bottom -Up
➢JEITA and SIRIJ estimate the energy -saving effects through 
different smart applications of semiconductors by industry , 
and sum up the total benefits contributed by semiconductors.
Reference: Guideline to estimate semiconductors and electronic components 
contribution ratio to final products’ CO2 reduction , JEITA and SIRIJ, 2012 
WSC Estimates 2 -Way Contribution to 
Energy Saving by Semiconductor
Top-down and Bottom -up
Source: ITRI/ISTICopyright ITRI 
 1111𝑯𝐲𝐩𝐨𝐭𝐡𝐞𝐬𝐢𝐬 𝟏:𝑬𝒍𝒆𝒄𝒕𝒓𝒊𝒄𝒊𝒕𝒚 𝑼𝒔𝒆𝒊𝒔𝒑𝒐𝒔𝒊𝒕𝒊𝒗𝒆𝒍𝒚 𝒓𝒆𝒍𝒂𝒕𝒆𝒅 𝒕𝒐𝑬𝒄𝒐𝒏𝒐𝒎𝒊𝒄 𝑮𝒓𝒐𝒘𝒕𝒉
𝑯𝒚𝒑𝒐𝒕𝒉𝒆𝒔𝒊𝒔 𝟐:𝑬𝒍𝒆𝒄𝒕𝒓𝒊𝒄𝒊𝒕𝒚 𝑼𝒔𝒆𝒊𝒔𝒏𝒆𝒈𝒂𝒕𝒊𝒗𝒆𝒍𝒚 𝒓𝒆𝒍𝒂𝒕𝒆𝒅 𝒕𝒐𝑬𝒍𝒆𝒄𝒕𝒓𝒐𝒏𝒊𝒄 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒔Top-down Method
➢Following ACEEE’s approach, verify the following hypothesis:Our Result: Significant Effect in Reduction 
16.216.316.416.516.616.716.816.917.017.1Global electricity consumption (log)
Fitted value
R^𝟐=0.99Estimation result:
•Hypothesis 1 & 2are clearly verified
using global data
•Global energy -saving electronic 
products increased by 1.0% , which can 
reduce global electricity consumption 
by 0.1%
Source: ITRI/ISTI Data collected from IEA, Gartner, and IMFCopyright ITRI 
 1212Globally to Reduce Maximum 3.27 MWh of 
Electricity Consumption in 2030
•Scenario 2: Global electricity consumption will be 30.55 MWh in 2030, which is 1.90 
MWh less than scenario 1
•Scenario 3: Total 29.18 MWh, which is 1.37 MWh even less than scenario 2
•Compared with scenario 1 and 3, which can conserve total 3.27 MWh of global 
electricity consumption in 2030 by using electronic productsAssumptions of energy -
saving electronic 
products used globally
Scenario 1
Maintain 2018 level after 
20181
Scenario 2
CAGR since 2018 is 5%
Scenario 3
CAGR since 2018 is 10%
Note：The number of electronic products used remain, but the global economy 
is still growing, so overall electricity consumption will continue increasing.
32.45 
30.55 
29.18 
2022242628303234
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030Global electricity 
consumption (MWh)Scenario 1:
Frozen 
Efficiency C ase
Scenario 2:
Reference Casesave 
1.90 
MWh
Scenario 3:
Accelerated Efficiency 
Caseforecast
Save 
1.37 
MWh
Source: ITRI/ISTI Copyright ITRI 
 1313Source: TSMC ESG annual report•Leader of innovation 
and advanced 
semiconductor process 
technologies
•Produce more 
advanced and energy -
efficient semiconductor 
products•AI IC Chip
•5G high -speed 
transmission IC chip
•High-speed 
transmission IC chip•Smart Manufacturing: 
•Smart Energy: 
•Smart Building: 
•Smart Logistics•Electronic products with semiconductor can help save 10.7% of 
global energy in 2030 (equivalent to 3.27 MWh)
•Considering semiconductor ratio and TSMC market share, TSMC 
conserves 0.17 MWh in 2030, 4 times to energy used in production
Role of TSMCSemiconductor
ProductsFacilitate Energy -Efficient 
ICT Technologies and 
Product Applications
Semiconductor products 
are estimated to help 
conserve 3.27 MWh 
globally in 2030; TSMC 
will be contributing to 
0.17 MWh of the energy 
conservedFacilitate Energy
Conservation
…
We Would Help Global Electricity Saving
TSMC Conserves 4 kWh for Each 1 kWh used in ProductionCopyright ITRI 
 14ITRI is Targeting Net -Zero Emissions by 2050 
Environment
Trade and 
RegulationsDemand Industries Supply
Steel Petrochemical Cement
Source: ITRI•Over the past 50 years (1973 -2021), the Industrial Technology 
Research Institute has created a magnificent semiconductor 
industry and has become the cornerstone of economic growth
•Established Net Zero Sustainability Strategy Office, and proposed 
the path and technology blueprint for 2050 Net Zero Carbon Copyright ITRI 
 15Source: ITRINet-Zero Sustainability Technologies 
Showcased in ITRI Campus
Generate 1.3MW PV 
green power  Maglev centrifugal 
compressor technology
Energy saving 21%: 
maglev air -conditioningIndoor CO 2network 
management and control
UVC LED: Flowing water 
sterilization moduleMicro LED display Smart health LED lightingTOPCon PVCopyright ITRI 
 1616
Conclusion
•Facing the wave of perpetual change in global environment, 
industries will face pressure of carbon tariffs
•ICT-enabled applications have high potential of carbon 
reductions, especially in manufacturing, energy, etc.
•In addition to existing semiconductor industry advantages, 
global collaboration will help emerging industries such as 
renewable energy, circular economy, green transportation.
•ITRI will help integrate technology, economy, society and 
environment to develop industrial transformation strategy in 
response for net zero emissionCopyright ITRI 
 17Given therapid pace ofchange incutting -edge
technology and industry development, the
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THANK YOU
Industry, Science and Technology International Strategy CenterStephen Su
Vice President and General Director
Industry, Science and Technology 
International Strategy Center, ITRI