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An insightful article by Nathan Vifflin and Toby Sterling in Amsterdam for those interested in investing in European chipmaking companies like STMicroelectronics, Infineon, and NXP.

The think-tank Interface conducted a review of pollution trends in the chemical-intensive semiconductor sector, concluding that the European Union should prioritize expanding its existing lower-emission semiconductor production—especially amid rising demand for AI-driven technologies and computer chips.

One key argument in favour of additional support for the industry is Europe’s better access to water and renewable energy, which could give it a competitive advantage in sustainable chip manufacturing.

You can read the original article below:

By Nathan Vifflin

AMSTERDAM (Reuters) – With pollution linked to the manufacture of cutting-edge computer chips needed for AI rising rapidly, the European Union should focus on developing its existing lower-emission semiconductor production, think-tank interface said on Monday.

In a review of pollution trends in the chemical-intensive semiconductor sector published on Monday, interface found the industry’s energy use had risen 125% globally over the past eight years both as output rose and as cutting-edge chip production caused more emissions per chip.

“Mature” or “legacy” chips, such as those used in cars, electric grids and industrial applications, are generally less polluting.

“Where we could increase our competitiveness is by strengthening EU companies that are already market-leading and manufacturing chips needed for the green transition,” Julia Hess, who led the research, told Reuters in an e-mail.

European chipmakers such as STMicroelectronics, Infineon and NXP are among the world’s top firms at manufacturing those kinds of chips.

Hess said having chips produced with better environmental standards will turn out to be a long-term competitive advantage.

(Reporting by Nathan Vifflin and Toby Sterling in Amsterdam; Editing by Jan Harvey)

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Europe’s better access to water and renewable energy could give a competitive advantage in sustainable chip manufacturing

interface is a European think tank specialising in information technology and public policy to ensure that political decision-makers and the public have the expertise and ideas necessary to create policies and make decisions that put the public interest first.