Fab Electrification and Decarbonization

RE100 pledges · grid reality · process gases · leftover combustion

The wafer itself is already processed on electricity, so fab decarbonization is three separate problems: grid power, a few leftover fossil systems, and process gases no power contract touches. TSMC's Taiwan fabs run on a grid that made 13.1% of its power from renewables in 2025 and Samsung's and SK hynix's Korean fabs on one at 8.6%, so their RE100 pledges rest mostly on certificates and offshore wind contracts.

Renewable share of electricity on the grids where chips are made, against the 100% that RE100 pledges promise: Oregon 61.4% (2024); China 37% (2025); New York 29.7% (2024); Texas 29.4% (2024); Japan 24% (2025); Arizona 16.3% (2024); Taiwan 13.1% (2025); South Korea 8.6% (2024) RENEWABLE SHARE OF GRID POWER WHERE CHIPS ARE MADE 0% 25% 50% 75% 100% RE100 PLEDGE Oregon INTEL 61.4% China SMIC, YMTC, CXMT 37% New York MICRON, GLOBALFOUNDRIES 29.7% Texas SAMSUNG, TI 29.4% Japan TSMC JASM 24% Arizona TSMC, INTEL 16.3% Taiwan TSMC, UMC 13.1% South Korea SAMSUNG, SK HYNIX 8.6% SOURCES: TAIWAN MOEA; IEA (KOREA); EMBER (CHINA, JAPAN); EIA STATE DATA. CHINA AND US STATES INCLUDE HYDRO; JAPAN DERIVED FROM EMBER NON-FOSSIL SHARE.
TSMC RE100
2040
Taiwan grid renewables
13.1%
Korea grid renewables
8.6%
Oregon grid renewables
61.4%
Section 48D credit
35%
Hub
Fabs

Three problems

Three Problems, Three Different Tools

Plasma etch, deposition, implant, lithography and CMP all run on electricity, so unlike a steel mill or glass furnace, the fab floor has nothing to electrify.

Four fab emission sources and the tool that reaches each: process gases need abatement and new chemistry; combustion needs electrification; purchased electricity needs clean power contracts; the value chain needs supplier action. Renewable power contracts reach only the electricity column and electrified combustion. Scope 1: process gases PFCs, NF3, SF6 from etch and chamber cleaning Abatement and new chemistry Scope 1: combustion Boilers, diesel backup, LPG forklifts Electrify, then buy clean power Scope 2: electricity Grid power, hundreds of MW per fab Physical PPAs, certificates Scope 3: value chain Gases, wafers, tools, chip use Suppliers and efficient chips WHAT RENEWABLE POWER CONTRACTS REACH

Process-gas emissions and their abatement are on Emissions and Abatement. Combustion is a small slice of total fab emissions but most of the on-site burning; electrifying it moves it to Scope 2, where clean power can then reach it.

Fossil systems left

The Fossil Systems Still in Fabs

Residual fossil systems and electric replacements
SystemFossil use todayElectric alternativeReadinessConstraint
Process steam and hot waterNatural gas boilers for steam (100 to 180°C) and hot waterElectric boilers; high-temperature heat pumpsHigh below 180°C; heat pumps above 150°C are earlyGas is cheaper than electric heat at most US prices
Backup generationDiesel and gas turbine generators, 10 to 100 MW per campusBattery storage for minutes to hours; fuel cells or hydrogen turbines for longerHigh for 2 to 4 hours of storageDiesel's long record; fuel cells on pipeline gas still emit CO2
Material handlingLPG forklifts at docks and warehousesBattery-electric forklifts, AMRs and AGVsHigh; lower total cost than LPGCharging infrastructure; heavy-lift exceptions
Compressed airLegacy gas-engine compressorsElectric compressors with variable speed drives and heat recoveryHigh; standard in new fabsVariable speed drives save 20% to 30%
Thermal abatementNatural gas burn boxes at 800 to 1,200°CPlasma point-of-use abatementHigh; also destroys more CF4Higher capital and operating cost

Electric boilers come from Cleaver-Brooks and Vapor Power; high-temperature heat pumps from Mayekawa and Viking Heat Engines; battery storage from Tesla (Megapack), Fluence and BYD; fuel cells from Bloom Energy. Backup systems turn over on a 10-to-15-year equipment cycle, so existing fabs keep diesel longest. Fab backup power is covered on Microgrids.

Process heat

Fab Process Heat Is Already Electric

High-temperature fab processes
ProcessTemperatureHeat sourceStatus
Thermal oxidation (gate oxide, liners)800 to 1,100°CElectric quartz-tube furnaces; H2 and O2 are process gases, not fuelAlready electric
Diffusion and anneal600 to 1,200°CElectric resistance elements (SiC, MoSi2)Already electric
Chilled water6 to 7°C supplyElectric chillers; some steam absorption chillers at older fabsLargely complete
High-temperature process steam150 to 200°CNatural gas boilers: the main combustion left at leading-edge fabsElectric boilers now; heat pumps above 150°C still early

Pledges and grids

RE100 Pledges Against the Grids Behind Them

Certificates and contracts count under market-based accounting; the physical grid mix decides what a fab actually runs on.

Chipmaker renewable commitments and their grids
CompanyCommitmentGrid renewable share at main sitesPhysical position
TSMCRE100 by 2040; 60% renewable by 2030 (both moved up in September 2023); net zero by 2050Taiwan 13.1%; Arizona 16.3%Taiwan depends on offshore wind contracts such as Ørsted's Greater Changhua and on certificates
Intel100% renewable electricity by 2030; net-zero Scope 1 and 2 by 2040Oregon 61.4%; Arizona 16.3%; Ohio 5.3%Oregon runs on a hydro-heavy grid; Ohio is the hardest US site
SamsungRE100 by 2050 for Samsung ElectronicsSouth Korea 8.6%; Texas 29.4%Korean fabs rely mainly on certificates; Taylor sits on wind- and solar-heavy ERCOT
SK hynixRE100 by 2050; carbon neutral by 2050South Korea 8.6%; Indiana for HBM packagingKorea's low renewable share sets its pace
MicronRenewable electricity goals for its sites; net-zero Scope 1 and 2 by 2050Idaho 68.3%; New York 29.7%Boise and Clay sit on two of the cleaner US grids
SMICEmissions disclosed in annual ESG reportsChina 37%China's grid adds wind and solar faster than any other

Grid shares are the latest whole-year renewable share of generation: Taiwan from the Ministry of Economic Affairs, South Korea from the IEA, China and Japan from Ember, and US states from EIA data. Taiwan missed its 20% renewable target for 2025 and has moved it to November 2026.

Policy

Fab Credits Rose as Clean Power Credits Shrank

Policy affecting fab decarbonization
PolicyCoversChange or requirementEffect on fabs
Advanced manufacturing investment credit (Section 48D)Fab and equipment capitalRaised from 25% to 35% for property placed in service after 2025 by the One Big Beautiful Bill Act (July 2025)Construction must begin by the end of 2026
Clean electricity credits (Sections 45Y and 48E)Wind and solar supply to fabsWind and solar projects must start construction by July 4, 2026 or be in service by the end of 2027Storage keeps its credit; fab solar and wind deals face a short window
CHIPS Act grant conditionsEnergy and environmental plansGrant agreements require energy efficiency and environmental compliance plansReporting more than hard limits
EU F-Gas Regulation and Emissions Trading SystemPFCs, SF6; large emittersMandatory F-gas phasedown and reporting; carbon pricingInfineon, STMicroelectronics, Bosch and Intel Ireland face tighter rules than US fabs

US sites compared

Arizona and New York Sit at Opposite Ends

TSMC Arizona has strong solar resource and low seismic risk, but Arizona generated 16.3% of its power from renewables in 2024, and the same dry Colorado River basin that limits water for the fabs also limits land and water for new generation. Water is covered on Ultrapure Water.

Micron Clay sits on New York's grid at 29.7% renewable, with upstate hydro and abundant freshwater, and Micron Boise on Idaho's at 68.3%. Intel's Ohio site has the hardest physical path of the large US projects, on a grid at 5.3% renewable.

Record

Page Record

Covers
The three decarbonization problems, residual fossil systems, process heat, RE100 pledges against grid mix, policy and US site comparison; includes the former Fab Electrification Pathways page
Sources
TSMC (September 2023); Taiwan Ministry of Economic Affairs via Eco-Business; IEA Korea 2025 review; Ember Global Electricity Review 2026; EIA state data via Wikipedia; SEIA and tax advisers on the One Big Beautiful Bill Act; company sustainability reports
Last verified
October 2026