Towards Net-Zero Electronics

Investment Rating - The report does not explicitly provide an investment rating for the electronics manufacturing industry Core Insights - The electronics manufacturing industry is experiencing rapid growth, valued at $1.275 trillion in 2023, with a growth rate of 7.5% driven by digitization and automation [7] - The industry is responsible for over 4% of global greenhouse gas emissions, highlighting the need for energy efficiency to mitigate environmental impact [7][9] - Energy efficiency is identified as a critical lever for reducing emissions, with potential energy savings of 25% to 30% achievable in fabrication facilities without compromising quality [8][12] - Effective management of energy use across the supply chain is essential for achieving net-zero emissions, as consumer electronics suppliers account for over 77% of the industry's total emissions [9] Summary by Sections 1. Why Supply Chain Energy Management Matters in the Electronics Manufacturing Industry - The global electronics market is growing rapidly, with significant contributions from the Asia-Pacific region and North America [7] - China's electronics manufacturing industry reached RMB 37.72 trillion (US$ 5.2 trillion) in 2023, with over 41,200 companies [7] - The sector's environmental impact is significant, necessitating innovation in energy technologies to support a low-carbon economy [7][8] 2. Retrofitting Existing Facilities for Energy Efficiency - Existing FATP facilities require urgent energy upgrades, particularly those built 10-20 years ago [24] - International and national standards are becoming stricter, necessitating compliance for energy management systems [24][25] - A structured process for optimizing energy efficiency includes conducting energy audits, project implementation, and savings verification [28][29] 3. Planning for Optimum Energy Efficiency in New Facilities - New FATP facilities should adopt an integrated design approach to maximize energy efficiency [6] - Key considerations include building layout, system and equipment selection, and control and monitoring strategies [6] 4. Managing Energy Efficiency in FATP Facilities - FATP facilities consume energy primarily through production, HVAC, and process air systems [18] - The production system accounts for 32% of energy consumption, while HVAC and process air systems account for 30% and 28%, respectively [20] - Implementing energy efficiency measures can significantly reduce energy consumption and costs [16][22] 5. Energy Efficiency Measures (EEMs) - EEMs can achieve substantial energy savings across various systems, including HVAC, process air, and production processes [62] - Case studies demonstrate that comprehensive energy-efficiency programs can lead to over 30% energy savings in FATP facilities [62][63] 6. Project Implementation and Acceptance - Effective project execution requires addressing challenges such as production schedule impacts and high upfront investments [66] - Collaboration with OEMs can enhance project success and streamline implementation [67] 7. Savings Verification - A rigorous measurement and verification process is essential for validating energy savings from implemented measures [72][73] - Engaging external auditors can enhance the credibility of the energy-efficiency program [75]