In order to maintain the competitiveness of the semiconductor and display industries, which are currently facing challenges due to the recent U.S. tariff increases, subsidy uncertainties, and intensified global competition from countries like China, it is urgent to secure a stable supply of carbon-free electricity, develop distributed power sources, and create new process gases, according to recent claims.
The Korea Chamber of Commerce and Industry (KCCI), in collaboration with the Ministry of Trade, Industry and Energy, held the 4th Industry Carbon Neutrality Policy Council on the 27th at the KCCI building.
The meeting was attended by significant industry figures, including Park Il-jun, Vice Chairman of the KCCI, Kang Kam-chan, Industrial Policy Officer at the Ministry of Trade, Industry and Energy, Samsung Electronics’ Executive Director Hwang Ho-sung, SK Hynix Vice President Choi Kwang-moon, Samsung Display Executive Director Kang Sung-kwang, LG Display Executive Director Lee Han-goo, and LG Electronics ESG Strategy Officer Hong Sung-min.
During the meeting, there was a call for sufficient carbon-free power supply and distributed power sources in anticipation of increasing power demand in the semiconductor and display industries, and to adhere to carbon-neutrality.
Semiconductor and display industries rely heavily on power, which results in a high proportion of greenhouse gas emissions. Approximately 74% of greenhouse gas emissions from these industries are due to power consumption (indirect emissions), highlighting the need to expand carbon-free energy supplies that do not emit carbon during power production.
A representative from the KCCI stressed the need for not only timely construction of transmission networks but also the use of decentralized power sources to prepare for the surging power demand from new semiconductor clusters and the increase in AI and data centers.
With the construction of transmission networks linking power plants and consumers being difficult, the dispersed power generation system is crucial for stable carbon-free power supply. Unlike the traditional centralized power generation method, distributed power generation is conducted close to the area of power consumption, making it easier to utilize solar, wind, small modular reactors (SMRs), and other carbon-free energy sources, thereby contributing to grid stability.
Furthermore, the meeting highlighted the urgency to develop alternative gases for the process gases that account for 18% of greenhouse gas emissions in the semiconductor and display industries.
Specialty gases used in semiconductor etching and deposition processes include hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3). These gases have a global warming potential (GWP) that is 140 to 23,900 times stronger than the typical greenhouse gas carbon dioxide (CO2).
Industry representatives urged policy support from the government rather than regulatory measures. A semiconductor industry insider noted, “The key to carbon neutrality in the semiconductor industry is researching and developing (R&D) alternative gases with lower global warming potentials,” and emphasized the need for continuous government interest and support in the development of alternative gases.
A display industry spokesperson stated, “The display industry reduced greenhouse gases by over 50% in 2023 compared to 2019,” and urged that, considering the semiconductor and display industries as national advanced strategic industries, policies should be implemented to minimize industry burdens rather than impose regulations.
Meanwhile, Hong Sung-min, LG Electronics ESG Strategy Officer, representing the home appliance sector, pointed out, “As a leading export industry, the home appliances sector is facing increasing demands for carbon-neutral achievements and expanded use of renewable energy from global clients, in addition to domestic and international carbon regulations,” calling for policy support for carbon neutrality and stable renewable energy for export home appliance manufacturers.
Kang Kam-chan from the Ministry of Trade, Industry and Energy announced plans to form a global task force on Carbon-Free Energy (CFE) to prepare ‘CFE certification standards’ and actively support the development, demonstration, and commercialization of alternative gases that can replace high-greenhouse gas process gases.
Park Il-jun, the full-time vice chairman of the KCCI, declared, “The semiconductor and display industries have been central to our country’s economic development, but they are now facing triple difficulties due to intensified global competition, additional trade pressures such as tariffs, and carbon neutrality demands from clients,” stating their plan to actively collaborate with the government in solving issues such as the expansion of carbon-free energy and decentralized power, and the development of alternative process gases.