The Relevance of Energy Efficiency in the Semiconductor Industry

Harnessing ‘energy efficiency’

In earlier times, energy efficiency has not been a top priority area for managements of companies since energy costs were normally around 1-2 percent of aggregate production costs, including buildings, capitalized land, and equipment.

While the power utilization of gadgets has decreased altogether throughout the years, enhancements in the energy utilized during the chip generation process has lingered behind.

It is estimated that energy costs constitute 5-30 % of semiconductor operating expenses, depending on local electricity costs.

Typically, ventilation, cleanroom heating, and air conditioning are the key energy consuming operations handled by companies and together they make 50% of the total energy utilized, whereas wafer processing tools form 30-40%.

Reasons for adopting energy efficiency approach

The semiconductor industry is prompted to take a serious note of maintaining energy efficiency in building electronic products due to:

  • Increasing pressure to enhance productivity
  • Enhanced process energy intensity
  • Heightened emphasis on corporate environmental responsibilities

How energy efficiency is driving the semiconductor industry?

Companies are switching over to use LED back lighting for assembling LCD televisions that will transform into substantially more energy-efficient. LCD televisions are impressively more energy-efficient than the old cathode-ray tube technology and slightly more effective than plasma televisions. Effectually, organizations are using less energy with each new age of plasma displays.

For instance, Schneider Electric UPS enhanced its standards in building critical power applications that not only ensure clean power and uninterrupted uptime, but also deliver nearly 30 per cent energy savings, which is a crucial step towards enhancing reliability. Alongside, it is able to enhance productivity, register profits and meet environmental objectives and regulations too.

Energy efficient products in the automotive industry

Semiconductor companies’ products can help bring down the utilization of primary energy resources through enabling energy-saving innovations. Sensor signal conditioners and smart sensor interfaces add to fuel efficiency and the subsequent lessening of carbon emissions. A semiconductor company addresses automotive applications through its industry-leading timing portfolio and smart sensors.


There has been a perceptible shift in the society’s attitude towards energy efficiency with the Semiconductor industry too jumping the bandwagon by showing interest in energy efficiency. In the days to come, the world will tilt towards providing more of energy resources efficient, intelligent and optimal.

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