Internal carbon pricing: Guiding the decarbonization of the semiconductor value chain

The semiconductor industry is facing a critical turning point as its greenhouse gas emissions rise in tandem with rapid market growth, primarily driven by the demand for AI chips. To ensure sustainable growth, companies are increasingly adopting internal carbon pricing (ICP) as a strategic tool to measure, manage, and reduce emissions throughout the value chain.

The semiconductor industry is facing a critical turning point as its greenhouse gas emissions rise in tandem with rapid market growth, primarily driven by the demand for AI chips. To ensure sustainable growth, companies are increasingly adopting internal carbon pricing (ICP) as a strategic tool to measure, manage, and reduce emissions throughout the value chain.

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Key Insights

ICP helps organizations assign a financial cost to carbon, enabling better decision-making and capital allocation toward low-carbon technologies. However, implementing ICP presents challenges that require clear guidance and industry collaboration.

This white paper collaboration, produced by STX Group, SEMI, and the SCC, offers a practical five-step roadmap for semiconductor companies to define and integrate ICP into their operations, enabling them to align with net-zero goals and navigate the complexities of sustainable growth in a rapidly evolving sector.

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