Energy consumption of TSMC 2019-2023, by source
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In 2023, the Taiwanese semiconductor manufacturer TSMC consumed almost 25 thousand gigawatt-hours of energy, with electricity accounting for the most important energy source. The company also expanded its reliance on renewable energy, but the increase in energy demand exceeds the increase in green energy consumption.
Energy is essential
Manufacturing semiconductors is an energy-intensive process and there is not much to do about that. According to some sources, energy costs can account for up to 30 percent of a manufacturing plant's operating costs. And with many companies building larger plants to keep up with global semiconductor demand, energy consumption increased as well. Greenpeace estimated that TSMC would need as much energy as one-quarter of the Taiwanese population. The company was one of the world’s leading tech companies, based on energy consumption as early as 2022.
Protecting the environment, the reputation, or both?
To address its environmental impact, TSMC proclaimed its commitment to ESG targets and countermeasures implemented. For instance, energy intensity per unit of production decreased significantly, the share of renewable energy grew by over two percentage points, and the volume of water saved also increased. However, over the same period, the overall amount of greenhouse gas emissions rose and the higher production volume at the bottom line required more water as well. Therefore, the question remains if optimizing relative KPIs can make up for the higher total resource consumption.
