An analysis by the think-tank Interface suggests that as pollution levels from the production of advanced AI computer chips continue to increase, the European Union should prioritize enhancing its current lower-emission semiconductor manufacturing. The review highlighted a 125% global rise in energy consumption in the semiconductor sector over the past eight years, partly attributed to the higher emissions associated with cutting-edge chip production. In contrast, older, more established chips, like those used in vehicles and industrial settings, tend to have lower pollution levels.

The key recommendation is to strengthen EU companies already excelling in producing chips essential for eco-friendly advancements, according to Julia Hess, the lead researcher. Leading European chipmakers, including STMicroelectronics, Infineon, and NXP, are proficient in manufacturing these types of chips. The EU is contemplating further measures to bolster its semiconductor industry post the 2023 Chips Act, seeking to attract investments in advanced production technologies that have yet to materialize in Europe.

The decision on whether to continue pursuing cutting-edge chip manufacturing remains uncertain, as emphasized by Hess. The potential environmental impact, in terms of elevated emissions and energy usage, is a critical consideration if the EU opts to pursue this path, particularly in contrast to the more environmentally friendly production processes that could be adopted. Europe's advantage in access to renewable energy sources and water resources could play a significant role in this context. Promoting chip production in line with higher environmental standards is deemed a strategic advantage in the long run, according to Hess.

In a note by Nathan Vifflin and Toby Sterling in Amsterdam, the report sheds light on the changing landscape of the semiconductor sector, urging the EU to navigate towards a more sustainable and competitive future in chip manufacturing.