TSMC ‘lacklustre’ in meeting green energy goals: Greenpeace

Since committing to 100% renewable energy usage by 2050 in 2020, the chipmaker has increased green power use by just 2.8%.

Taiwan Semiconductor Manufacturing Co. (TSMC) will have to be more aggressive in reducing its carbon footprint as its surging power use continues to outstrip the gains achieved in shifting to renewable energy sources, according to Greenpeace East Asia.

In its sustainability report, TSMC, the largest chip manufacturer in the world, has expanded the use of renewable energy by 1.2% globally last year while its overseas sites have already achieved 100% renewable energy ratio. 

The Taiwan-based company has sourced 2,190 gigawatt hours or 10.4% of its total electricity consumption from renewable energy last year, up from 9.2% in 2021, but still far from its 40% green energy target by 2030.

“TSMC’s lackluster progress on renewable energy development is concerning,” Greenpeace East Asia campaigner Xueying Wu said, noting that the gains in green energy sources have been overshadowed by its soaring power consumption.

Wu noted that TSMC’s green energy usage only increased by 2.8% over the past three years since it set the 2050 target of sourcing 100% of its electricity requirements to renewable sources.

Since the firm did not disclose the portion of renewable energy purchased through high-impact sourcing methods, the extent to which TSMC relied on renewable energy certificates (RECs) to boost its green energy ratio also remains unclear according to Greenpeace. 

RECs, according to the campaigner, is one of the least impactful sourcing methods as they do not add new green power capacity to the grid.

“Despite a lot of rhetoric around sustainability, in absolute terms TSMC’s reliance on fossil fuels continues to grow,” Wu said. “To be a true leader in the semiconductor industry, TSMC needs to take a more aggressive role in combating climate change.”

TSMC said in the report that it plans to install more solar panels in its facilities, actively seek to purchase green energy, and roll out initiatives to boost power use efficiency and reach its sustainability targets.