Feature Stories

Feature Stories 01: Nanya Obtains SBTi Certification on the Path to Net Zero

Nanya actively takes action to reduce GHG emissions and set science-based targets (SBT). Nanya obtained SBTi certification in 2022 and set a milestone for its carbon reduction action. The climate change strategy formulated based on the TCFD framework gradually achieves carbon reduction goals through operations of the internal management platform and external resource integration, in order to create a future with net zero emissions.

In response to the global trend of carbon reduction, Nanya began planning the carbon reduction path for its SBT in 2021 and submitted an application for certification at the end of the year. The Company set its carbon reduction path after referencing the WB2D (Well Below 2℃ ) scenario, and dedicates its efforts to reducing Scope 1 and Scope 2 emissions by 2.5% and reducing Scope 3 emissions per unit production by 2.7% a year. We plan to reduce Scope 1+2 emissions by 25% and Scope 3 emissions per unit capacity by 27% by 2030 and will dynamically adjust carbon reduction goals and path based on overall production capacity and expansion plans, in order to achieve net zero emissions by 2050.

Carbon reduction paths planned by Nanya

Carbon Reduction Strategies

Nanya planned five climate change strategies based on the TCFD framework and manages reduction measures based on the three scope of GHG emissions to ensure that its SBT are achieved as planned. Nanya has planned carbon reduction strategies for Scope 1, 2, and 3 emissions, laying out the path to net zero emissions.

  • Scope 1

    Manage raw material use and install GHG abatement equipment

    Nanya's Scope 1 emissions are mainly from the use of process gases for thin-film and etching manufacturing processes. Even though the use of process gases cannot be avoided, the Company has adopted "consumption reduction" and "Local Scrubber" to manage GHG emissions.

    Consumption reduction

    The Company is actively improving process efficiency and product yield to maintain competitiveness in the industry. The transition to the 20-nm process significantly increased production capacity, and therefore effectively reduces energy and resource consumption for per unit production. Furthermore, Nanya has introduced AI application to assist the operation of the factory to improve machinery scheduling, control raw materials inputs, and reduce the amount of waste generated. Results have gradually appeared under various raw material reduction plans.

    Local Scrubber

    Local scrubbers are installed at the end of Nanya's manufacturing process, and use combustion to break the chemical bond of gas molecules, while using cleaning solution to remove the majority of GHGs, such as PFCs, NF3, and N2O. At present, the removal efficiency of equipment used by Nanya is at 90% and above, reducing direct GHG emissions by approximately 600,000 tons CO2e. We will continue to implement reduction equipment management strategies to improve reduction performance. Local scrubbers will also be installed in equipment of the new factory to minimize the impact on the environment.

    Actions to reduce Scope 1 emissions have achieved a 33.8% reduction in 2022 compared to 2020.

  • Scope 2

    Low carbon and renewable energy use

    Scope 2 emissions of Nanya are mainly from purchased electricity. The Company implements energy conservation management through ISO 50001, reduces electricity consumption by approximately 5 million kWh through energy conservation plans each year, and also actively uses low carbon energy.

    Nanya supports the policy of local governments by purchasing steam generated from gas instead of coal combustion and cut the emission in half. With regard to renewable energy, we first installed solar panels on our factories, and obtained T-RECs on the trading platform. We had used 11 million kWh green electricity in 2021-2022, and will used at least 25 million kWh of renewable energy from 2023 (20MW solar power plant). Nanya continues to contact large renewable energy developers and plans to purchase electricity from sites with installed capacity reaching 100MW and above, in order for renewable energy to reach at least 25% of electricity use in 2030.

  • Scope 3

    Supply chain and product energy consumption management

    Nanya's Scope 3 emissions mainly consists of two items, namely "purchase of raw materials from upstream supply chain" and "electricity consumption from downstream product use." We will continue to conduct supply chain sustainability audits for upstream supply chain management and provide guidance for deficiency improvement. We monitor the climate change goals and emissions of suppliers through reviews and communication, and jointly reduce carbon emissions with our suppliers. In 2022, Nanya will review emissions of suppliers and include emissions of packaging and processing plants in management. We will also engage in exchanges with key suppliers in sustainability topics. In the future, we will continue to encourage suppliers to use green electricity and implement cleaner production plans, in order to reduce the carbon footprint of their raw materials.

In the development of new generation processes and products, we have begun small-scale production of our first product using first generation 10-nm process technology (1A), 8Gb DDR4; trial production of our second product DDR5 has also begun. The pilot product using second generation 10nm-class process technology (1B) is currently in the trial production stage, with the goal to begin small-scale production in 2023. Once mass production begins, energy efficiency will improve by 60% and above. Furthermore, we are also actively developing and carrying out the mass production of low-power products, in which the power consumption of new generation DDR5 products is 16% or more lower than DDR4 products.

  • Nanya joined the Taiwan Alliance for Net Zero Emission
  • Climate change is a challenge for all of humanity, and Nanya takes action on climate change response strategies and GHG reduction methods. Meanwhile, we have closely followed developments of clean energy technologies, as well as the opportunities and impacts brought by market tools, such as carbon transaction and carbon credits, and will use a variety of reduction tools to achieve our goal and contribute to the Earth.

Feature Stories 02: Bringing Together the Semiconductor Industry Towards a Sustainable Future

The pandemic, geopolitics, and inflation in 2022 forced industries around the world to change their strategy and turned supply chain resilience into an issue that companies cannot avoid if they want to do business sustainably. Meanwhile, issues such as global climate change, human rights protection, and information security risks require a different supply chain management model from the past, which focused on technology, quality, services, delivery, and cost, and highlighted the sustainability of supply chains, bringing supply chain risk management and their connections closer than ever before.

Milestones of Nanya's Sustainable Supply Chain Management

Nanya implemented supply chain risk management and provides guidance for making improvements, gradually achieving a sustainable supply chain.