english.elpais.com, Oct. 30, 2024 –
The first half of 2024 marked a high point for Nvidia, the leading U.S. company in the chip industry. The firm tripled its global shipments of semiconductors, underscoring a prevailing truth of our time: the world is hungry for this tiny technology. However, the production of these semiconductors faces a significant challenge: the growing demand for electrical energy required for their manufacture. Experts warn that fulfilling the surging market demand for microprocessors may hinder the green transition. The sophisticated and intricate equipment used to print cutting-edge chips consumes vast amounts of electrical energy, which is essential for advancing technologies such as artificial intelligence and data centers.
Specifically, microprocessors – the tiny rectangular plates found in computers, washing machines, and cell phones – are manufactured using complex extreme ultraviolet lithography (EUV) machines. This process involves bathing silicon wafers, the foundational material for chips, in light waves that are invisible to the human eye.
According to Bloomberg, the latest models of these specialized devices consume around one megawatt of electricity, which is equivalent to the average energy consumption of a Spanish household over four months. A decade ago, the U.S. consulting firm McKinsey warned that a typical semiconductor manufacturing plant consumes as much energy annually as about 50,000 homes. The firm noted that these "mega factories" were using more electricity than automotive plants and refineries combined.
José Luis Costa, an expert in nanotechnology, acknowledges that this situation is currently not seen as a problem in most regions, "because it is a strategically critical sector where there will be no impediments to energy expenditure." Beyond consumer electronics, the arms, space, and automobile industries have also made chips an indispensable part of their product development. According to the World Semiconductor Trade Statistics, global sales of microprocessors surged by 16.3% year-on-year at the beginning of this year, reaching $39.7 billion, and are projected to grow by another 13.1% in 2024.
The key player in the manufacturing of this technology is Taiwan, home to the leading chip manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC). It is estimated that 60% to 70% of global chip production originates from this small island in East Asia. Bloomberg reports that due to the significant electricity consumption required to operate the lithography machines, TSMC is expected to soon consume more energy than the entire population of countries like Sri Lanka, which has 21 million residents. In 2020, the company accounted for about 6% of Taiwan's total energy consumption, a figure projected to rise to 12.5% by 2025.
The problem is that Taiwan's semiconductor industry is heavily reliant on fossil fuels, with more than 80% of its energy derived from burning coal and gas, according to data from the News Lines Institute think tank. To address this issue, in 2016, the island's government aimed to obtain 20% of its electricity from renewable sources by 2025, by developing solar power and offshore wind capacity.