CALCULATING THE CARBON FOOTPRINT SUPPLY CHAIN FOR THE SEMICONDUCTOR INDUSTRY

Transcription

1 CALCULATING THE CARBON FOOTPRINT SUPPLY CHAIN FOR THE SEMICONDUCTOR INDUSTRY By: Yasser Dessouky September 2008

2 Supply Chain Definition Supply chains are defined as an integrated process wherein a number of various business entities (i.e. suppliers, manufacturers, distributors, and retailers) work together in an effort to: (1) acquire raw materials, (2) convert these raw materials into specified final products, and (3) deliver these final products to retailers. This chain is typically characterized by a forward flow of materials and a backward flow of information.

3 Background In today s global environment, many manufacturing companies have global supply chains to meet customer demands on time and remain competitive traditional view of optimizing supply chains is based on minimizing costs to partners in the supply chain and/or maximizing service to the customers as consumers are becoming more environmentally aware, companies are also recognizing a need to optimize their supply chains based in terms of carbon emissions Other factors driving companies to reduce carbon emissions of their supply chain are existing and possible new government regulations and the recent significant increases of direct energy costs

4 Need changing nature of global trade requires companies to examine frequently their supply chain structure to ensure optimum efficiency and to consider the impact of this structure on the amount of carbon dioxide emitted to develop tools to measure the amount of carbon emissions produced from a complete supply chain

5 Carbon Footprint Supply Chain Carbon Trust defines carbon footprint of a supply chain as follows: The carbon footprint of a product is the carbon dioxide emitted across the supply chain for a single unit of that product.

6 Carbon Footprint Supply Chain For example, the carbon footprint of a can of food is the total amount of carbon emissions from production, transportation, consumption, and disposal of the single can of food. Carbon Trust is a private company setup by the United Kingdom Government to develop business solutions to transition to a low carbon economy. Carbon Trust (2006b) presents in a report two case studies that show the financial and environmental gain for reducing carbon emissions across a supply chain. The studies were conducted for Walkers, a snack food company, and Trinity Mirror, a newspaper publisher.

7 Semiconductor Manufacturing The importance of the semiconductor industry to the Silicon Valley provides SJSU with a tremendous opportunity in this area The semiconductor industry provides several challenges due to the complexity of the manufacture of integrated circuits and the role of globalization in their production. It is common to find that each stage in the supply chain takes place in a different company and country.

8 Overall Semiconductor Manufacturing

9 Wafer Fabrication

10 Assembly and Packaging Processing Stage

11 Modeling Tool Spreadsheet Application At each stage, the Kwh is computed for a particular technology/process. Function of: the energy consumed by specific technology, the number of iterations/repetitions required, batch size of the wafer, weight of the wafer, cycle time of single iteration, and floor space required

12 Modeling Tool Spreadsheet Application The carbon dioxide emitted via transporting is a function: the mode of transportation, the distance traveled, batch size of the wafer, weight of the wafer. The supply chain carbon footprint is computed from the summation of the CO2 emitted from each stage and from the CO2 emitted for transporting the production.

13 Follow-on Submitted NSF CCLI proposal: With Dr. Minnie Patel 2 year Approximately 150K Still under review (Believe we made initial cut)

14 NSF CCLI Proposal Learning Tool for: ENGR/ISE 103 Life Cycle Engineering, ISE 195 Senior Design, and ISE 105 Systems Engineering undergraduate courses Expand model to include cost parameters Tool will allow the students to experiment and perform tradeoff studies to explore means to reduce carbon emissions while at the same maintaining cost feasibility Develop two learning exercises The first exercise will be based on mechanisms (technology) to reduce the use of energy associated with manufacturing the chip The second exercise will demonstrate to the students the impact of using different locations and modes of transportation on the carbon footprint of the supply chain (wafer preparation, wafer sorting, assemble & packaging, and final test).