Delivering sustainable electronics manufacturing

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It's an interesting time to be a proponent of sustainability and environmental protection.

newelectronics.co.uk, Mar. 24, 2025 – 

The political push-back we’re seeing in the US, with the advent of the Trump administration, is mirrored by startling research conducted by the responsible investment campaign group, ShareAction.

According to its research of 279 environmental, social and government (ESG) shareholder resolutions put forward at general meetings across 2024 just 1.4 per cent secured majority support. Only four years ago that figure had topped 20 per cent.

It also noted a growing split between the US and Europe. ShareAction found that among asset managers 81 per cent in the UK and Europe supported ESG proposals, while in the US the figure was just 25 per cent.

Within the global electronics industry more sustainable manufacturing is seen as being critically important at a time when demand for electronics is rising.

The industry has focused on the reduction of its environmental impact and ensuring its compliance with stricter forms of legislation, but could the changing political climate have an impact on that approach?

In terms of manufacturing sustainable improvements often tend to go hand in hand with operational cost reductions, so to that end the implementation of a more sustainable manufacturing process is not only desirable but for many companies remains financially critical.

Energy and water usage in the semiconductor industry, for example, is projected to grow at a CAGR of 12% and 8% between 2025-2035, so efficient management strategies are seen as being crucial for the wider health of the industry.

IDTechEx recently released a market report looking at the electronics market. The size of the market is vast, with integrated circuits (ICs) being the third most traded product globally, so the report suggested that there were significant opportunities for sustainable electronics innovation.

Conventional electronics manufacturing is extremely wasteful, however, with many harmful chemicals, materials, and manufacturing processes, and the report suggested that there were opportunities to, ‘mitigate potential environmental damage from low-temperature processing, optimisation or elimination of superfluous wasteful steps, recycling and re-using materials (where possible), and the adoption of novel approaches with the potential to replace conventional manufacturing steps.’

"Barriers to sustainable electronics remain, such as capital costs and the complexity of the integration of new methods into existing manufacturing techniques,” explained Thomas Bithell, Technology Analyst and author of this report. He continued, “A key driver for green electronics will be legislation. This includes new Ecodesign for Sustainable Products Regulation (ESPR) and digital product passports (DPP) legislation coming into effect in Europe. The electronics supply chain flows globally, resulting in localised legislation having a global impact. As emissions from the electronics manufacturing industry grows, action to adopt sustainable electronics manufacturing is vital."

One of Trump’s key economic proposals has been the repeal or substantial revision of the Inflation Reduction Act (IRA), introduced under President Biden, that has provided billions in subsidies, tax incentives, and credits to the US manufacturing sector and which has benefitted high-tech in particular.

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