Unlocking Low-Carbon Semiconductor Wafers

The rapid growth of artificial intelligence, cloud computing, electrification, and clean energy technologies is driving increasing demand for semiconductors, creating a growing need to reduce emissions across semiconductor supply chains. However, complex, multi-tier supply chains, limited emissions transparency, unresolved confidentiality concerns around sharing supplier-level production data, and a lack of mechanisms to connect low-emissions production with downstream willingness to pay make it difficult for suppliers to invest and buyers to procure low-emissions wafers.

Wafer production is highly electricity-intensive, making carbon-free electricity the most impactful near-term opportunity to reduce production emissions, complemented by low-emissions metallurgical-grade silicon, energy efficiency, and process improvements. Together, these measures could significantly reduce mine-to-wafer emissions. However, accelerating their deployment will require stronger demand signals from downstream buyers and credible mechanisms that enable low-emissions wafers to be recognized and differentiated.

This industry briefing explores book and claim (B&C) as a transitional mechanism to bridge this gap before physical traceability is in place, with longer-term progress expected to move toward physical sourcing of low-emissions wafers as emissions transparency, traceability, supplier capabilities, and industry standards mature. Drawing on technical analysis and collaboration with Hemlock, Shin Etsu Handotai (SEH) America, Micron Technology and Microsoft across the semiconductor value chain, it proposes an initial B&C system design covering functional units, eligibility criteria, transaction, claims and inventory accounting. The report also identifies priorities for pilot implementation and the data, standards, market infrastructure, and demand signals needed to support broader market development.

The findings are relevant to semiconductor buyers, suppliers, industry associations, standards bodies, and policymakers seeking to strengthen demand signals, improve emissions data and standards, and build credible market infrastructure for scaling low-emissions wafer production.

Read the full report to explore the proposed B&C design approach, key recommendations, and pathways for advancing low-emissions semiconductor wafer markets. For more information or to explore collaboration, contact Hao Wu at hwu@rmi.org or Hylla Barbosa at hbarbosa@rmi.org.