TSMC Arizona

TSMC is dedicated to optimizing energy use efficiency. In alignment with our corporate goals, our factory has been designed with energy efficiency in mind and we continue to identify further energy savings opportunities. Some examples of energy conservation include:

• Facility Equipment:

  Recovery of waste heat, LED lighting, Variable Primary Cooling Systems, Temperature optimized cooling systems and Variable Frequency Drives throughout

• Manufacturing Tools:

  Energy use management, unit replacement, purchasing new efficient units, and equipment adjustments

TSMC has committed to a companywide goal of achieving Net Zero Emissions by 2050. Increasing the use of renewable energy is critical to achieving this goal. In demonstration of our commitment, TSMC became the first semiconductor company to join RE100, a global corporate renewable energy initiative aimed at getting the world’s most influential businesses to commit to 100% renewable electricity. Part of this commitment includes a pledge to match 100% of the electricity used across global operations with electricity produced from renewable sources.

At TSMC Arizona, in order to achieve this goal we will support the following:

• The facility is installing 14.5MW of solar energy provided by solar panels that double as use for covered parking.

• The facility began purchasing Renewable Energy Credits (RECs) in 2023 to cover 100% of its power use and will continue to do so.
  • Purchased RECs will be Green-e® certified. The Green-e® Energy program, certifies renewable energy that meets the highest standards in North America (it must be generated from new facilities, marketed with complete transparency and accuracy, and delivered to the purchaser, who has sole title. The entire chain of custody of certified renewable energy from generation to retirement is verified to ensure individuals and businesses are getting exactly what they paid for).
  • All RECs are managed according to the published RE100 technical criteria.

TSMC approaches water management strategies holistically, which includes our Phoenix operations. In addition, we consider third-party benchmarks with regards to water stewardship. TSMC implements the world’s only sustainable water management standard established by the Alliance for Water Stewardship (AWS). The AWS promotes the adoption of a universal framework for the sustainable use of water – the International Water Stewardship Standard, or AWS Standard. We are the first semiconductor company to receive AWS “Platinum” certification – receiving the highest scores for two consecutive years.

In Arizona, we will comply with local regulations and pursue similar industry design standards for water management. Two important aspects of our approach are water recycling and water reclamation:

• At startup, approximately 65% of the water used in the Arizona operation will come from TSMC’s in-house water recycling systems. The recycled water will be used in systems such as our air scrubbers and cooling tower systems.

• To achieve our goal of 90% water reclamation, We will build an advanced water treatment facility (Industrial Water Reclamation Plant) at our Phoenix operation with a design goal of achieving “Near Zero Liquid Discharge”. This means the fabs will be capable of using nearly every drop of water back into the facility. This is a process of converting industrial wastewater into water that can be reused for a variety of purposes.

TSMC is committed to air emissions control, working to actively enhance control methods and environmental impact.

TSMC ESG 2030 goals for air emissions control include:

• Reducing volatile organic (VOC) gas emissions (>99%)

• Reduce unit GHG emissions by 30% compared to the base year (metric ton of CO equivalent (MTCO₂e)/12-inch equivalent wafer mask layer), and restore GHG emissions to the 2020 level (Base year: 2020)

TSMC applies a two-stage control strategy to all air emissions sources, which includes exhaust separation to local controls specific to each source, before capture in the main central control units.

In September 2021, TSMC announced its commitment to Net Zero Emissions by 2050. TSMC has mapped out a Roadmap to Net Zero Emissions, setting the goals of zero emissions growth by 2025 and gradually reducing emissions to return to 2020 emission levels by 2030 and net zero emissions across the value chain by 2050.

With the development and introduction of various recycling technologies, wastes produced from diverse production processes are converted into products which can be reused in-house or sold to other companies. TSMC becomes a participant in the circular economy. TSMC is dedicated to looking beyond the label of waste producer by implementing it’s “Action Plan to Turn Waste into High-Value Products”. For example, since 2015, TSMC has been actively implementing on-site reuse of waste sulfuric acid, achieving a 50% waste reduction by incorporating an onsite reuse pathway. Overall, TSMC has reached a waste recycling rate of 96% and achieved a landfill rate of <1% for 13 consecutive years.

• Reinforcing this circular economy strategy, the TSMC Arizona has prioritized reuse and recycle options for all waste streams, challenging our vendors to find alternative solutions for our waste:

  • Two of our largest spent materials, by volume, will be recycled or reused:
    • Spent Sulfuric Acid will be returned to commercial grade product;

    • Spent Isopropyl Alcohol (IPA) will be sent directly for secondary re-use

  • Where possible, non-hazardous material will be used as feedstock to produce other commercial products.