Schneider's Catalyze: Cut Carbon in Chip Supply Chain

Schneider Electric, a company specializing in energy management and industrial automation solutions, has introduced the Catalyze Supply Chain Partnership program to address the carbon emissions challenge in the semiconductor industry's supply chain and accelerate the global adoption of renewable energy along the semiconductor value chain.

According to a report from Fierce Electronics, leading semiconductor companies such as Intel and Applied Materials have already joined the Catalyze program. John Powers, Vice President of Global Clean Technologies and Renewable Energy at Schneider Electric, emphasized that the program aims to attract sponsors and supply chain participants to drive carbon reduction efforts, including component suppliers and materials providers.

Powers identified three main challenges hindering the widespread adoption of renewable energy in the semiconductor industry:

1. Companies' ability to choose renewable energy sources: While some markets have seen immediate results from short-term renewable energy purchases, long-term power purchase agreements (PPAs), or equity investments in Western and certain Asia-Pacific countries, the semiconductor supply chain is heavily concentrated in Asia, where certain markets have limitations on deploying renewable energy.

2. Data accessibility: Most organizations lack comprehensive data on energy usage at different levels, making it difficult to prioritize efficiency measures and select suppliers for renewable energy initiatives. Schneider Electric's solutions can help address this data gap.

3. Scaling up: The semiconductor industry's global value is nearing $1 trillion, and significant renewable energy deployment is required to minimize environmental impact. Collaborative efforts among participants will be essential to expedite the transition to clean energy.

In conclusion, Schneider Electric's Catalyze Supply Chain Partnership program aims to promote collaboration among semiconductor companies and their supply chain partners, tackle challenges related to renewable energy adoption, and accelerate the industry's shift towards a greener future.