NXP Q&A: How do Semiconductors Impact Water Sustainability?

Semiconductors are in nearly every part of modern life, from passports to healthcare.

The industry is continuously evolving, making devices smaller, faster and cheaper to enable new innovations like AI.

NXP Semiconductors supports customers including Apple, Samsung, Audi and Dell with automotive, IoT and industrial solutions.

The company was spun off from Philips in 2006 and is now one of the largest semiconductor manufacturers in the world.

In 2023, NXP had revenue of US$13.3bn and more than 32,000 employees.

Jennifer Wuamett is Executive Vice President, General Counsel and Chief Sustainability Officer at NXP Semiconductors, responsible for its ESG and risk programmes. 

She has been with the company for almost nine years and in the semiconductor industry since 2004. 

Jennifer shares her insight with ClimateTech Digital.

How does the semiconductor industry impact water demand?

The US$573bn semiconductor industry is expected to exceed US$1tn by 2030, primarily driven by soaring demand from the consumer electronics and automotive sectors. 

The reality of chip manufacturing is that it requires significant amounts of high-purity water for various processes such as cleaning wafers, cooling equipment and mixing chemicals. This expected increase in water demand coupled with diminishing freshwater resources poses a challenge and an opportunity for the industry.

What the industry learns and the technologies it creates to mitigate water usage could yield benefits that extend beyond the manufacture of chips.

As the semiconductor industry continues to push the boundaries of technology in its quest for smaller, more powerful chips, its reliance on high-quality water is expected to grow. The challenge that semiconductor fabricators are addressing is how to make smarter use of water. That begins with how to reuse water and how to deploy it more efficiently in fabrication processes. However, this reliance is also becoming a catalyst for innovative water-saving and recycling technologies to minimise the overall water demand and promote responsible water usage within the industry.

The industry uses different grades of water, from industrial city water to high purity water and Ultra-Pure Water (UPW) for cleaning and rinsing semiconductor wafers, equipment and components. This is essential to maintaining high cleanliness standards, as even tiny impurities can have a significant impact on chips’ performance and reliability.

According to the Georgetown Center for Security and Emerging Technology (CSET), a single manufacturing facility can use millions of gallons of water in a day, equivalent to the annual water usage of a small city. This level of usage is expected to persist as chip sizes continue to shrink.

Addressing this escalating demand for high-quality chips involves integrating extra processing steps for each microchip. Approximately 25% of these steps require the use of UPW, the most refined grade of water.

While grappling with this challenge, a silver lining has emerged: the semiconductor industry is pushing the boundaries in developing technology for water conservation, forging a path toward a more sustainable and water-conscious future.

How can the semiconductor industry change wastewater management?

The pursuit of sustainable water practices also means innovating wastewater management technologies. 

Over the past decade, several key technological advancements have transformed water recycling. From advanced treatment technologies to decentralised sanitation solutions, the industry is seeing a remarkable shift towards more efficient, eco-friendly, and resource-conscious methods. 

The incorporation of sensor technologies in wastewater management provides real-time data on water quality parameters, enabling precise monitoring and control.

Leveraging data analytics and artificial intelligence optimises treatment processes, predicts equipment failures, and enhances overall operational efficiency.

Zero Liquid Discharge (ZLD) techniques have also gained prominence. These seek to minimise or eliminate liquid waste discharge by recovering and reusing water from industrial processes. These systems are designed to treat and recycle approximately 99% of the water used in semiconductor production. They typically involve several stages, including chemical treatment, filtration and the application of methods like distillation and evaporation to remove impurities and recover water.

However, achieving these environmental gains requires additional capital investment.

Another advancement in water treatment involves the use of reverse osmosis (RO) technologies. These advanced RO systems can achieve high water recovery rates, with certain systems reaching rates of 90-95%, a significant improvement compared to the traditional 75% recovery in conventional RO systems.

What can the semiconductor industry do to reduce the need for freshwater?

Semiconductor companies are also investing in groundbreaking technologies to reduce freshwater consumption. Many semiconductor facilities are implementing closed-loop water systems, which significantly decrease the amount of water required for manufacturing processes.

These systems allow water to be continuously purified, treated, and recirculated, reducing water waste and minimising the need for new water resources.

Certain unexplored cooling technologies are also very promising, particularly those that reduce water requirements in processes like evaporative cooling, especially in cooling towers. Decreasing the demand for water in cooling processes is not only environmentally responsible but also economically beneficial, as it can lead to cost savings through reduced water consumption and improved energy efficiency. 

As renewable energy sources continue to advance and become more accessible, the shift toward water-efficient cooling technologies is likely to gain momentum and make a significant contribution to sustainability efforts.

What is the future of innovation for water sustainability in the semiconductor industry?

Semiconductor manufacturers recognise the intrinsic value of water. In a highly competitive, capex-intensive industry, the is a need to focus is constantly on how to “do more with less” — an approach that extends to the conscientious management of natural resources.

Technological advancements coupled with operational enhancements play a crucial role in enabling semiconductor manufacturers to achieve greater efficiency and productivity while minimising impact on natural resources.

Although not every technological improvement is a viable option, especially in older facilities where some advancements are more difficult to implement, the industry is making strides toward finding ways to optimise processes, invest in tools and set measurable goals. Water recycling initiatives, efficient cooling systems, and the implementation of cutting-edge manufacturing processes stand out as examples of how the industry has pushed the boundaries of sustainable practices.

The industry has set stretch targets to improve its collective use of water, and major manufacturing firms have embraced transparency around water usage. By openly sharing their progress in sustainability reports, semiconductor manufacturers reinforce their commitment to responsible water use and to meeting and exceeding established targets.

The transparency and the innovative spirit of semiconductor engineers augur well for ensuring that despite ever-growing demands on the chip industry, each chip can deliver positive improvements for humanity while also mitigating impacts on vital natural resources.

Receive the next edition of ClimateTech Magazine by signing up for its newsletter. 

As part of this portfolio, make sure you check out Sustainability Magazine and also sign up to our global conference series - Sustainability LIVE. 

Also check out our Sister Brand, Energy Digital.