SEMICONDUCTORS The material footprint of the energy transition

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Semiconductors are essential for the continued expansion of the renewable energy revolution. But as well as powering the transition to clean energy, semiconductors also have significant negative environmental impacts. This paradox prompts two questions: Just how much harm is the transition to greener forms of energy causing to our planet? And what can we do to minimise this harm?

Does it feel hot in here to you?

It should.

In the last five years, the average global temperature has gone up dramatically. 2024 was the warmest year ever recorded, 2023 claimed the title for second hottest, and 2025 came in a close third. 2026 is all set to be another scorcher. All told, we’re set to hit the Paris Agreement’s 1.5°C threshold a full ten years earlier than predicted.¹

If there’s any hope of reaching the much heralded goal of net-zero carbon emissions by 2050, the energy, industry, agriculture, and transportation sectors all need to transition from fossil fuels to cleaner, greener energy sources such as solar, wind, hydro, geothermal, and biomass. That means combustion engines fuelled by oil and gas will have to be replaced by electric systems powered by renewable energy as soon as possible.

The good news is that we have the technology and the manufacturing capabilities to make this happen.

The bad news is there’s a catch.

Wide-bandgap (WBG) semiconductors are essential to the green energy revolution. With significantly higher efficiency, power density, and durability than traditional silicon-based devices, WBG semiconductors are critical components in Electric Vehicles (EVs), Solar Inverters, offshore wind turbines, and Energy Storage Systems (ESS). They power new artificial intelligence (AI) technologies that help to make

But these modern marvels of power electronics come at a pretty steep environmental cost.

The manufacturing processes for sophisticated power electronics are incredibly energy intensive. And extracting and processing the rare earth materials essential for semiconductors has some serious ecological impacts.

We may be caught in a diabolical Catch 22: the transition to renewable energy is the best way to reduce GHG emissions. But the technology we need to facilitate the switch leaves a substantial environmental footprint.

Is our dependence on semiconductors making the move to more sustainable forms of energy itself unsustainable? And if it is, what can be done?

expert BATTREY SYSTEMS

Power electronics in energy storage

The high environmental cost of essential semiconductor materials

Silicon carbide (SiC) and gallium nitride (GaN) wide bandgap semiconductors are integral to maintaining energy efficiency and optimal operational capabilities in electric vehicles, solar inverters, and wind power systems. As the speed of the transition to renewable energy sources increases, the need for rare materials such as lithium, cobalt, and gallium is also rising.

It’s not just these critical raw materials that are in demand. Base metals like copper and silver are crucial for electrical wiring, interconnects, and heat dissipation in power electronics.

Mining and processing each one of these materials causes high amounts of industrial emissions, toxic waste, and land degradation. There are also issues concerning the high energy and water usage involved in their extraction and refinement.

Silicon Carbide (SiC): low yield, high environmental footprint

In 2025, the global market for SiC was valued at US $5.77 billion. Analysts predict the market will hit US $6.28 billion by the end of 2026 and reach US $12.36 billion by 2034.² To give you an idea of the pace of growth, the SiC market was worth US $2.575 billion in 2020.³ Clearly, demand for SiC is booming.

Silicon carbide is made from silicon, which is produced from quartz (silica), and carbon, typically derived from petroleum coke. The first step in making metallurgical-grade silicon is quartz mining, which causes land disturbance, dust generation, and requires large amounts of energy. The quartz is then reduced in electric arc furnaces operating at temperatures of around 1900–2000 °C, making the process highly energy-intensive and a significant source of CO₂ emissions, especially when powered by fossil fuels.

Petroleum coke, a byproduct of oil refining, further links SiC production to fossil fuel extraction and its associated emissions. The Acheson process is used to produce SiC, which is then refined into semiconductor-grade material through advanced crystal growth techniques. This is also highly energy-intensive and requires high-purity processing under tightly controlled conditions.

Compounding the problem is the fact that SiC manufacturing is challenging. Defects, wafer breakage, and surface damage lead to low yields. All told, producing relatively small amounts of SiC requires a lot of resources and a lot of energy.

expert BATTREY SYSTEMS

Power electronics in energy storage

Gallium and GaN: energy-intensive and in scarce supply

Faster, more efficient, and more heat-resistant than silicon, gallium plays a major role in both computing and renewable energy technology. As well as semiconductors, GaN is used for LEDs, power inverters and chargers, and EV powertrains. Solar cells made with Gallium Arsenide (GaAs) are significantly more efficient than silicon solar cells.

Gallium itself is not mined as a primary metal but is extracted as a byproduct of processing bauxite (used for aluminium) and zinc ores. Because it is so difficult to produce but is in such high demand, gallium has been classified as a critical material.

Tracking the price of gallium since 2020 highlights just how important it has become. As of January 2020, gallium was sold at US $298.20 per kilogram. As of March 2026, the price has gone up to US $2,269.40 per kilogram, an increase of more than 661 per cent.⁴ Worldwide consumption of gallium in 2005 was just four tonnes in 2005. Fast forward to 2024, and we’re up to 335 tonnes.⁵

There's no doubt that gallium is integral to the advancement of technology. Unfortunately, gallium production causes some big problems for Mother Earth. The mining process for both zinc and bauxite requires huge amounts of energy, destroys habitats, contaminates water supplies, and pollutes the air.

Turning raw bauxite into aluminium produces a waste substance known as “red mud.” Filled with toxins and heavy metals, red mud can be disastrous for animals and humans if released into the environment.⁶ Producing one tonne of zinc results in approximately three tonnes of CO2 emissions.⁷ Zinc also generates large volumes of toxic tailings, which can contain heavy metals and acidic compounds that can harm soil and water if not properly managed.⁸

Purifying gallium for GaN semiconductors requires extremely high purity levels (6N–7N levels) and advanced crystal growth methods, like metal-organic chemical vapour deposition (MOCVD). These processes operate at high temperatures and rely on continuous energy input. Manufacturing GaN semiconductors also uses hazardous chemical precursors such as trimethylgallium and ammonia, which are toxic, flammable, and require careful handling and treatment for both waste products and exhaust gases.⁹

At every lifecycle stage, GaN semiconductors rely on energy-intensive processes that produce significant GHG emissions and toxic waste.

RENEWABLE ENERGY

Near-700 GW surge in 2025 proves renewable energy resilience

Silver and copper: surging demand and an increasing impact

Due to their excellent electrical and thermal conductivity, silver and copper are widely used in power-module packaging and are critical for solar photovoltaic (PV) panels, semiconductors, wind turbines, electric vehicles, and electrical wiring and grid infrastructure. Demand for both metals has skyrocketed because of the growth of renewable energy and the increased pace of electrification.

Copper is used in every type of clean energy technology. No other metal can come close to copper for its unique combination of conductivity, durability, and ductility. 25 million tonnes of copper were used worldwide in 2023. By 2031, researchers predict the world will consume 36.6 million tonnes.¹⁰ The price of copper is now reaching record heights, climbing to US $13,020 per tonne in early 2026.¹¹

Silver has much the same story. High electrical conductivity and thermal conductivity, excellent malleability, and strong reflective qualities make silver ideal for a wide range of uses in power electronics, EVs, and solar energy technologies.

As with copper, the demand for silver has grown exponentially over the last five years. Silver hit an all-time high in 2022 with 1.3 billion ounces worldwide. Demand dropped slightly in 2022, but silver is still at record levels.¹² Valued at US $12 per ounce in 2020, silver is now sitting at more than US $120 per ounce.¹³

Copper and silver mining cause large-scale land degradation and deforestation. Processing the ore results in large amounts of GHG emissions. Water pollution can be caused when sulphide minerals react with air and water to produce sulphuric acid that contaminates rivers and groundwater.^14,15

Compared to normal-grade industrial copper and silver, refining these metals to the ultra-high purity levels required for use in power electronics is extremely energy intensive. The refining processes also use highly toxic chemicals that require strict treatment and containment systems.

Overall, the environmental footprint of copper and silver used in power electronics results in increased energy consumption, higher GHG emissions, and an increased risk of air and water pollution.

expert ELECTRONIC WASTE

Recycling and urban mining in electronics: Turning e-waste into opportunity

Renewable energy has a major recycling problem

Wind turbines and solar photovoltaic cells typically last between 25 and 30 years. Analysts estimate that by 2050, there will be 78 million tons of solar panel waste.¹⁶ By 2030, waste from wind turbines could exceed 50,000 tons annually. 20 Although 85% to 95% of the materials used in these wind turbines and solar cells are technically recyclable, extracting and processing these materials is both difficult and costly.^17,18,19

Recycling EVs, semiconductors, and general electronic waste is also challenging. Currently, less than 5% of EV batteries are recycled.²⁰ Globally, e-waste is the fastest-growing waste stream. In 2026, the world will generate an expected 58.36 million tonnes of e-waste.²¹ This rises to 74.25 million tonnes by 2034.²² Currently, 81.39% of e- waste is not recycled.²³

As with solar panels and wind turbines, extracting and recycling the critical materials in e-waste is technically complex and highly inefficient. Separating the small amounts of materials from the miniaturised components is expensive, difficult, and hard to achieve at scale.

expert SUSTAINABLITY

From e-waste to a circular electronics economy – Facts & figures for a sustainable future

How can we solve the semiconductor catch-22?

To halt global warming at 1.5°C by 2030, the world will need to triple its renewable energy power generation capacity.²⁴ Reaching net zero emissions by 2050 will require the phasing out of all combustion engine vehicles within the next 14 years.²⁵ Industry and heavy transportation will need to become electrified and powered by renewable sources by 2040. ²⁶

Winning the fight against climate change is dependent on technology. But the materials we need to manufacture that technology come at a high environmental price.

The International Council on Mining and Metals (ICMM) has stated that mining is responsible for 11% of the global greenhouse gas (GHG) emissions.²⁷ Research into semiconductor emissions is scarce, but as of 2021, a study showed that semiconductor manufacturing was responsible for 76.5M tonnes of GHG emissions when taking into account both Scope 1 emissions and Scope 2 emissions.^28,29 Some reports estimate that by 2040, semiconductor manufacturing might be responsible for three per cent of global GHG emissions.³⁰

How can we overcome this seemingly impossible paradox of the transition to clean energy?

It’s important to realise that no form of energy will have a zero impact on the environment. But the scale of the trade-offs we make is crucial. While renewable technologies do have higher material requirements than fossil fuel sources, the overall contribution to global material extraction remains relatively small. ³¹

Rapid decarbonisation is essential to limiting the worst effects of climate change. While serious, the environmental impacts of renewable technologies and semiconductor manufacturing are significantly lower over the lifetime of the technologies compared to fossil fuels. ³²

Adopting a circular economy model with more efficient and improved recycling capabilities could drastically reduce the amount of waste associated with semiconductor manufacturing. Improving recycling and material efficiency could also significantly reduce the demand for newly mined critical minerals such as copper, silver and silicon.

Gallium will remain a challenge, but better product design, material substitution, and advanced recovery technologies may help reduce its environmental impact.

Better technology is an important part of the solution. But changes in policy, resource management, and system design alongside improvements in recycling and circular economy approaches are also needed.

As with most paradoxes, the semiconductor environmental Catch-22 can be solved with innovation, dedication, and hard work.

Fortunately, we have these qualities in abundance.

Sources

• 1. https://climate.copernicus.eu/

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• 3. https://www.grandviewresearch.com/horizon/outlook/silicon-carbide-market-size/global

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• 5. https://stockhead.com.au/resources/chinas-dominance-of-the-gallium-market-is-near-total-but-theres-opportunity-for-western-disruptors/

• 6. https://ukgbc.org/our-work/topics/embodied-ecological-impacts/aluminium

• 7.,8. https://www.greenspec.co.uk/building-design/zinc-production-environmental-impact/

• 9. https://www.mdpi.com/1996-1944/5/7/1297

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• 11. https://goldinvest.de/en/copper-on-record-course-price-breaks-through-13000-mark-market-heading-for-bottleneck-in-2026/

• 12. https://www.reuters.com/business/silver-surges-past-35oz-level-hit-more-than-13-year-high-2025-06-05

• 13. https://www.reuters.com/world/china/rising-investment-keep-global-silver-demand-steady-2026-silver-institute-says-2026-02-10

• 14. https://environmentamerica.org/center/articles/how-copper-mines-pollute/

• 15. https://energy.sustainability-directory.com/learn/what-are-the-environmental-impacts-of-silver-mining-for-solder/

• 16. https://dtcf.de/recycling-the-hidden-challenge-of-renewable-energy/

• 17. https://www.spektrum.de/news/das-schwierige-recycling-der-solarzellen/2200203

• 18. https://www.umweltbundesamt.de/presse/pressedossiers/pressedossier-recycling-von-windkraftanlagen

• 19. https://cleanenergycouncil.org.au/for-consumers/fact-sheets/recycling-get-the-facts/recyling-wind-turbines-solar-panels-batteries

• 20. https://arxiv.org/abs/2303.07617

• 21. https://news.pcim.mesago.com/recycling-and-urban-mining-in-electronics-turning-e-waste-into-opportunity-a-66b2a3c52d082523968621cc08c22cd8/

• 22.,23. https://www.fortunebusinessinsights.com/e-waste-management-market-102896

• 24. https://www.irena.org/Digital-Report/Tripling-renewable-power-and-doubling-energy-efficiency-by-2030

• 25.,26. https://www.weforum.org/stories/2021/05/net-zero-emissions-2050-iea/

• 27. https://mexicobusiness.news/mining/news/mining-accounts-11-global-ghg-emissions

• 28. https://hal.science/hal-04112708v1/file/semiconductor_ghg.pdf

• 29. https://www.blog.industrialecology.uni-freiburg.de/index.php/2022/10/30/material-footprint-implications-of-low-carbon-technologies

• 30. https://www.imec-int.com/en/expertise/cmos-advanced/sustainable-semiconductor-technologies-and-systems-ssts

• 31. https://link.springer.com/article/10.1007/s40974-025-00381-9#Sec13

• 32. https://sdg.iisd.org/news/benefits-of-renewables-outweigh-negative-impacts-ren21-report-finds/

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