The Biodiversity Footprint of Taiwan's Semiconductor Industry

Biodiversity loss has emerged as one of the most pressing challenges of our time, threatening the stability of ecosystems and their capacity to sustain life on Earth. The World Economic Forum's Global Risks Report 2024 underscores biodiversity loss as a critical risk to global economic resilience. Taiwan, commanding 30% of global semiconductor manufacturing capacity in 2024 and ranking as the world's second-largest producer, plays a pivotal role in the global supply chain. However, current research lacks a comprehensive understanding of how the industry's operations impact Taiwan's biodiversity across terrestrial, freshwater, and marine ecosystems. This study analyzes the biodiversity footprint of Taiwan's semiconductor industry using corporate sustainability reports and governmental environmental statistics from 2020 to 2023. The research examines Taiwan's semiconductor supply chain, from IC design to wafer manufacturing and packaging services, through leading companies including TSMC (Taiwan Semiconductor Manufacturing Company), UMC (United Microelectronics Corporation), and ASE Group (Advanced Semiconductor Engineering). The study employs the ReCiPe methodology to quantify key biodiversity-related pressures such as habitat loss from land use transformation; freshwater ecosystem disruption from water consumption and wastewater discharge; and atmospheric deposition effects on sensitive ecosystems. The analysis provides a comprehensive view of how these pressures cumulatively affect Taiwan's terrestrial, freshwater, and marine biodiversity. As the first comprehensive biodiversity impact assessment of Taiwan's semiconductor industry, this research provides practical tools to evaluate and mitigate biodiversity risks, supports investor nature-related risk assessments, and establishes a scientific foundation for policy-driven biodiversity conservation. The assessment establishes quantitative linkages between industrial activities and biodiversity outcomes while providing strategic pathways toward nature-positive transformation in the semiconductor industry, advancing the critical balance between industrial development and ecosystem resilience.