Navigating the Path to Sustainability: Case Study Insights from Taiwan’s Semiconductor Sector

        As global attention to climate change intensifies, industries face unprecedented pressure to transition towards sustainability while maintaining economic competitiveness. Taiwan’s semiconductor industry, which constitutes 22.3% of the global market and contributes 15.27% to Taiwan's GDP, exemplifies this dual challenge. This study investigates the sector's sustainability transformation, emphasizing the interplay between environmental, social, and governance (ESG) frameworks, regulatory compliance, and market-driven pressures.

        Employing a case study methodology, this research delves into the complex dynamics shaping the sustainability trajectory of the semiconductor industry. Key challenges include compliance with evolving international regulations such as Carbon Border Adjustment Mechanism (CBAM) from EU and carbon pricing initiatives in Taiwan. These frameworks compel companies to adopt stringent greenhouse gas inventory protocols and transition to low-carbon production models. Concurrently, supply chain demands from global technology leaders, exemplified by Apple’s 2030 carbon neutrality mandate, necessitate a comprehensive decarbonization of production processes and the integration of renewable energy sources. Public awareness of environmental issues further intensifies the need for businesses to align with consumer expectations for sustainability.

        The findings underscore the critical role of advanced technological tools and data- driven strategies in facilitating the transition. Enhanced supply chain transparency, the adoption of clean energy solutions, and the cultivation of sustainability-oriented expertise emerge as pivotal enablers. Moreover, addressing the environmental footprint of semiconductor manufacturing—characterized by significant energy and water consumption, as well as emissions of high-global-warming-potential gases—requires

innovative approaches that balance environmental responsibility with operational efficiency.

        This study contributes to the growing body of literature on sustainable industrial practices by offering a nuanced understanding of the strategic pathways available to high-impact sectors. By situating Taiwan’s semiconductor industry within the broader context of global sustainability efforts, this research provides actionable insights for policymakers and industry stakeholders. The implications extend beyond Taiwan, offering a replicable model for fostering resilience and competitiveness in the face of escalating climate imperatives.

Keywords: Semiconductor Industry, Sustainability Transition, ESG, Decarbonization, Green Supply Chain, Case Study