TSMC, a semiconductor foundry, has set a 2030 energy-savings target for its suppliers, in part due to the fact that extreme ultraviolet (EUV) lithography consumes a significant amount of hydrogen and generates a significant amount of carbon dioxide (CO2).
Suppliers intend to produce “green hydrogen” in order to offset carbon emissions.
TSMC’s 2030 energy-saving and carbon-reduction goals have prompted suppliers to invest actively in green energy. Additionally, it will generate additional energy-saving and carbon-reducing solutions, such as hydrogen production.
Because EUV lithography is required for high-end semiconductors and consumes a significant amount of hydrogen and produces a significant amount of CO2, supply chain companies believe that producing green hydrogen to offset CO2 emissions is one way to reduce carbon emissions. Following TSMC’s announcement of its energy-saving goal, relevant companies are reportedly evaluating the feasibility of green hydrogen solutions.
TSMC has established itself as Taiwan’s leader in green energy. Even if TSMC’s primary objective is to reduce carbon emissions associated with EUV lithography, the company’s objectives could pave the way for a new era of self-produced green hydrogen in Taiwan.
Supply chain companies noted that green hydrogen production is not new to renewable energy. The efficient use of renewable energy’s oversupply has long been a subject of industry research.
Excess solar energy generated during the midday sun and wind energy generated during the winter or windy seasons can be stored and then used to electrolyze green hydrogen. Indeed, governments in Europe and China have recently pushed for the development of a green hydrogen industry chain.
In addition to semiconductor manufacturing processes, Japan, South Korea, Europe, the United States, and China are all actively investing in the development of hydrogen fuel cell vehicles (FCV). Toyota has been working in this direction as well. FCVs generate clean energy and are believed to be more environmentally friendly than battery electric vehicles (BEV).
United Renewable Energy (URE), a solar energy company based in Taiwan, announced in 2019 that it had invested in hydrogen-powered scooters. However, the project was abandoned due to the difficulty in developing a profitable business model.
Europe has been developing offshore wind energy for hydrogen production for quite some time, according to supply chain companies. For instance, Orsted, a Danish offshore wind energy company, intends to build a 2 GW offshore wind farm and a 1 GW electrolysis hydrogen production facility in the North Sea. Shell, based in the Netherlands, has also invested in offshore wind and hydrogen energy development. Indeed, Taiwan’s offshore wind farms have been lauded for their potential and suitability for developing the green hydrogen industry.
Additionally, while China has eliminated subsidies for solar energy generation, it has retained subsidies for energy storage and hydrogen production. As a result, China’s 2022 renewable energy market is expected to place a premium on the establishment of an entire industry chain for renewable energy, energy storage, and hydrogen production. China’s carbon-neutral policy, combined with the fact that its solar power modules account for more than 85% of the global market, suggests that China will likely concentrate on the development potential of solar energy combined with energy storage and hydrogen production.
