Semiconductors are the backbone of modern technology and national security. Because of their strategic importance, the industry is subject to a complex web of governance frameworks, risk factors, and compliance obligations. GRC in semiconductors spans corporate governance, export controls, supply chain integrity, environmental and safety standards, and geopolitical risk management. This page provides a high-level view of the GRC landscape and links into specific compliance resources, including the Compliance Hub.
Scope of GRC in Semiconductors
- Governance – Corporate responsibility, ESG reporting, board oversight, and ethical sourcing of critical materials.
- Risk – Managing geopolitical tensions, export restrictions, supply chain disruptions, cyber threats, and operational hazards.
- Compliance – Adhering to global standards (ISO, SEMI, ASTM), safety requirements (OSHA, HazMat), and environmental directives (RoHS, REACH).
Segment Mapping
| Dimension |
Key Areas |
Representative Bodies |
Notes |
| Governance |
ESG, corporate responsibility, board oversight |
OECD, UN Global Compact, ISO |
Rising demand for ESG disclosure in chip industry |
| Risk |
Geopolitical, export control, supply chain resilience, cyber risk |
US BIS, ITAR, Wassenaar Arrangement |
Semiconductors central to US–China tensions |
| Compliance |
ISO, SEMI, OSHA, RoHS/REACH, JEDEC |
ISO, SEMI, ASTM, EPA, EU regulators |
Toxic gases and process chemicals heavily regulated |
Market & Strategic Outlook
| Priority |
Driver |
Impact on Industry |
Notes |
| 1 |
Export Controls |
Limits on lithography, EDA tools, and AI chips |
Shapes global fab capacity and alliances |
| 2 |
Supply Chain Resilience |
Diversification, reshoring, friend-shoring |
CHIPS Act, EU Chips Act, Japan subsidies |
| 3 |
EHS & Worker Safety |
Compliance with OSHA, SEMI S-series |
Toxic gas & chemical risk management |
| 4 |
Cybersecurity |
Protecting fab equipment, IP, supply chain |
Zero-trust frameworks, hardware roots of trust |
Top Risks & Bottlenecks
- Geopolitical concentration: Taiwan’s dominance in advanced logic creates systemic exposure to regional conflict.
- Export restrictions: Access to EUV lithography, advanced GPUs, and EDA software tightly controlled by the US and allies.
- Toxic materials: High reliance on hazardous process gases (arsine, silane, phosphine) increases safety and environmental risk.
- Cyber attacks: Semiconductor fabs increasingly targeted as critical infrastructure.
KPIs to Track
- Compliance audit pass rates (ISO, SEMI, OSHA)
- Export license approvals/denials
- Incident rates for hazardous materials handling
- Supplier ESG scoring
FAQs
- What does GRC mean in semiconductors? – Governance, Risk, and Compliance frameworks ensure safe, secure, and legally compliant operations across the chip supply chain.
- Why are export controls so critical? – They determine which countries can access advanced lithography tools, EDA software, and high-performance GPUs, directly shaping global competition.
- Which standards apply to semiconductor fabs? – ISO 9001, ISO 14644, SEMI standards, OSHA requirements, RoHS/REACH, and ASTM materials standards.
- How do companies manage toxic chemicals? – Through SEMI S2 EHS standards, OSHA regulations, advanced scrubber systems, and redundant safety protocols.
- What role does ESG play? – Investors and customers increasingly require semiconductor firms to disclose environmental, social, and governance metrics alongside financial performance.
