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Apple Suppliers Struggle To Meet Environmental Goals
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Apple Suppliers Struggle To Meet Environmental Goals

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Apple’s stringent environmental goals are putting pressure upon its global supply chain. DigiTimes reports.

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In a Pay-per-view report, DigiTimesApple’s goal to achieve carbon neutrality by 2030 is putting pressure upon its supply chain. Major suppliers like TSMC are scrambling for the company’s requirements. Sources speak to DigiTimesTSMC was slow in reaching carbon neutrality, and it is now being forced to take stronger action to achieve its environmental goals.

TSMC supplies all Apple’s custom-made silicon chips for the Apple Watch (iPhone, iPad, Mac), and Mac. According to TSMC, the company is concerned about the high price of net-zero carbon emissions. It is also finding it difficult to buy enough green energy. Despite this, TSMC views its green credentials now as key to its ability stay competitive in the coming years, with the tangential advantage of improving efficiency.

TSMC is putting the pressure on its supply chain, just as Apple is requiring its suppliers to reduce carbon emissions and save energy. TSMC is the sole supplier to Taiwan’s hundreds of factories. The chip manufacturer has urged its suppliers not only to use renewable energy, but also to reduce their carbon footprint.

TSMC had previously set a goal of 20 percent energy savings for its supply chain by 2030. Now it has warned suppliers that they may lose orders if they don’t consider their processes to be environmentally friendly in the future. Some suppliers to the chip maker that are struggling to meet their environmental goals have reportedly sought help from TSMC or other organizations.

While demand for TSMC chips is increasing, the push for green manufacturing, renewable energy procurement and the increase in carbon taxes and fees is significantly increasing production cost. Accordingly, TSMC’s future operations will be subject to “major risk” if it pursues environmental goals.

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