The industry association for the electrical and digital industry is warning about new environmental regulations currently being deliberated by the EU Commission, with a decision expected by October. As reported by Handelsblatt, among others, new limits on water and air pollutants could further increase the cost of semiconductor manufacturing in Europe, an industry that already relies heavily on subsidies.
The association sees two interests colliding: expanding Europe's chip industry to reduce dependence on imports, and protecting water and air quality. New facilities in and around Dresden alone are being subsidized with more than 6 billion euros, while future environmental rules are set to be stricter than current German law, rules that existing technology is in some cases not even equipped to meet. The EU Commission told Handelsblatt that the existing legal framework is outdated and that the semiconductor industry currently isn't covered by it at all. Under the new requirements, it would have to limit its emissions for the first time.
Forever chemicals are the biggest problem
Beyond fluoride pollution, per- and polyfluoroalkyl substances, known as PFAS or forever chemicals, are considered especially problematic. They're suspected of being harmful to health and, in some cases, carcinogenic, and the costs to the healthcare system are estimated to run into the hundreds of billions. The ratio between production costs and later environmental cleanup is also striking, with removal estimated to cost roughly a thousand times more than manufacturing. According to a report by Spiegel, growing semiconductor production alongside the parallel expansion of data centers, which use PFAS for cooling among other things, is likely to significantly raise the concentration of these substances in the environment.
First manufacturers already stepping away
An EU-wide ban on these substances is already under discussion, especially since alternatives do exist for at least some uses. According to the Spiegel report, chemical giants BASF and 3M have already announced plans to exit production of these chemicals. In the end, the key question is likely to be who pays for handling them: the manufacturers, who would need to invest in new filtration systems and alternative processes, or ultimately everyone, as rising costs for drinking water treatment and healthcare get passed on to the public. It's also conceivable that subsidies for Europe's semiconductor industry could eventually be tied directly to compliance with environmental rules.