SEMI Energy Collaborative Releases Recommendations for Growing the Supply of Low Carbon Energy in Japan

MILPITAS, Calif. – September 3, 2024 – Seeking to bolster global semiconductor value chain efforts to lower greenhouse gas (GHG) emissions, the industry association SEMI released today an analysis by its Energy Collaborative (EC) of current and forecasted low-carbon energy (LCE) markets for Japan, the second in a series of market-specific reports. Developed by the SEMI EC and its sponsors, incorporating insights from the Japanese government and partner organizations, the report outlines policy changes and investments required to increase LCE supply.

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Japan is cited as one of the two most challenging markets for clean energy procurement in the latest annual disclosure report from RE100, a consortium of more than 400 companies committed to using 100% renewable energy. In 2022, LCE made up only 27% of Japan’s electricity generation mix with the remaining 73% covered by fossil fuels. The EC projects the total LCE demand in Japan in 2030 to be 390 to 450 TWh, with the best-case-scenario being that supply falls 20-80 TWh short of demand, providing for only 20%-50% of total voluntary corporate demand.

“The Japan government has goals to revitalize the semiconductor industry and triple global production from JPY 5 trillion now to JPY 15 trillion in 2030,” said Mousumi Bhat, PhD, Vice President, Global Sustainability Programs. “To do so, the industry will need access to LCE to meet its customers’ decarbonization expectations.”

The EC report recommends accelerating the installation of LCE in Japan by:

  • Updating land usage policies that enable greater access for LCE development
  • Alleviating current policy impediments to facilitate expanding and accelerating offshore wind development
  • Overcoming transmission grid bottlenecks with greater clarity on long term grid development plan and implementation / project delivery
  • Fostering community collaboration that accelerates designation of LCE promotion zones across the country
  • Facilitating collaboration among industries to propagate knowledge of corporate LCE procurement mechanisms.

“The analysis and findings of this substantial body of research provides a strong basis for collaboration with the semiconductor industry, facilitated by the Energy Collaborative’s meetings with government, infrastructure, and other industry leaders,” said Bhat. We provide detailed scenarios of our industry’s needs, energy technology analysis, and the voice of a critical energy customer as the local government plans policies that impact future supply of LCE.”

Each recommendation is supported by detailed analysis of current and historical market conditions in Japan and draws from concrete examples of how other regions have successfully implemented similar measures to drive LCE adoption.  

The Energy Collaborative report Key Challenges and Potential Solutions for Expansion and Procurement of Low-Carbon Electricity on Japan is the second of five, joining the report on South Korea. The EC will also analyze Taiwan, Malaysia and Singapore. Organizations sponsoring the EC will get access to more detailed analysis of each region. More information on the benefits of membership and sponsoring the Energy Collaborative initiative is available by contacting Jamie Belliveau at  jbelliveau@semi.org.

About the Energy Collaborative

The SEMI Energy Collaborative is dedicated to engaging a leadership network of corporations and domain experts to accelerate the pace of adoption of renewable energy solutions together with regional governments and regulators in key markets. Through collaboration with the semiconductor value chain, the EC aspires to improve the currently untenable trajectory of semiconductor manufacturing emissions. Companies sharing this vision from across the semiconductor and energy ecosystems sponsor the EC, along with partners from civil society and non-profit organizations.

About SEMI

SEMI ® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON® expositions and events, technology communities, standards and market intelligence help advance our members’ business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit  www.semi.org , contact a regional office, and connect with SEMI on  LinkedIn and  X to learn more.

Association Contact
Samer Bahou
Phone: 1.408.943.7870
Email:  sbahou@semi.org

 

 

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