Infineon and UMC Partner to Cut Carbon Emissions in Semiconductor Supply Chains

Infineon Technologies AG and United Microelectronics Corp. (UMC) have formalized a strategic partnership aimed at reducing carbon emissions throughout their semiconductor supply chains while advancing sustainability practices across the industry.

The two semiconductor giants announced they have signed a memorandum of understanding (MoU) that establishes a framework for collaborative efforts to drive decarbonization. The partnership places particular emphasis on working with suppliers to establish emissions reduction targets that align with the rigorous criteria set by the Science Based Targets initiative (SBTi).

Both Infineon and UMC achieved a significant milestone in 2025 when they received validation from SBTi for their respective climate targets. These validated targets are consistent with global efforts to limit temperature increases to 1.5°C above pre-industrial levels, representing the most ambitious threshold outlined in international climate agreements.

The collaboration between Infineon and UMC is structured around direct engagement with shared suppliers. The companies plan to help these suppliers develop comprehensive decarbonization strategies and implement practical solutions to reduce their carbon footprints. A key component of this initiative involves organizing workshops designed to facilitate knowledge sharing, promote best practices, and provide suppliers with the tools and guidance needed to set and achieve their own science-based emissions reduction targets.

Elke Reichart, who serves as chief digital and sustainability officer at Infineon, emphasized that collaboration with industry partners forms a cornerstone of the company's broader strategy to reduce emissions throughout its entire business ecosystem. Reichart characterized the partnership with UMC as another significant step forward in advancing decarbonization efforts across the semiconductor sector.

TS Wu, senior vice president responsible for global manufacturing and supply chain operations at UMC, highlighted the necessity of cross-industry collaboration in addressing emissions challenges. Wu noted that tackling emissions across the entire value chain requires close cooperation with both upstream and downstream partners. He stressed that both companies share a deep commitment to climate responsibility and are focused on accelerating progress toward building a more sustainable semiconductor industry.

Infineon has established ambitious greenhouse gas reduction commitments that demonstrate its dedication to climate action. The company has pledged to reduce its absolute Scope 1 and Scope 2 greenhouse gas emissions by 72.5% by 2030 when compared with 2019 baseline levels. Scope 1 and Scope 2 emissions encompass direct emissions from company-owned operations and indirect emissions from purchased energy.

Beyond its operational emissions, Infineon has also set a comprehensive Scope 3 target that addresses emissions generated throughout its supply chain. The company aims to ensure that 72.5% of its suppliers, measured by emissions associated with purchased goods and services, capital goods, and upstream transportation and distribution, adopt science-based targets by 2029.

This target recognizes that supply chain emissions often represent the largest portion of a company's total carbon footprint.

UMC has established itself as a sustainability leader in the semiconductor foundry space. The company made history in 2022 by becoming the first semiconductor foundry to receive validation from the Science Based Targets initiative. Building on this achievement, UMC updated its targets in 2025 to meet the initiative's most stringent requirements, demonstrating its commitment to continuous improvement in climate performance.

Under its updated targets, UMC has committed to reducing Scope 1 and Scope 2 emissions by 42% and Scope 3 emissions by 25% by 2030 compared with 2020 baseline levels. Looking further ahead, the company has set an ambitious long-term goal of achieving net-zero greenhouse gas emissions by 2050, aligning with global efforts to reach carbon neutrality by mid-century.

Both companies acknowledge that Scope 3 emissions, which include all indirect emissions that occur in a company's value chain, typically represent the largest share of total emissions for semiconductor manufacturers. This reality makes supplier engagement not just beneficial but critical to achieving meaningful emissions reductions.

UMC has been proactive in engaging its supplier base on sustainability issues. Since launching its Supply Chain Greenhouse Gas Inventory Initiative in 2022, the company has worked with more than 400 suppliers to measure, track, and reduce emissions. This extensive engagement demonstrates UMC's recognition that collaboration across the supply chain is essential to driving industry-wide progress on climate goals.

Similarly, Infineon has invested significant resources in supplier engagement since launching its own supplier program in 2023. The company has already engaged more than 100 suppliers through this initiative, working to build capacity and drive adoption of science-based emissions reduction strategies across its supply network.

The partnership between Infineon and UMC reflects a broader trend in the semiconductor industry, where companies are increasingly recognizing that individual action alone is insufficient to address climate change. By working together and engaging their shared supplier base, these two companies are creating a multiplier effect that can accelerate decarbonization efforts across the entire semiconductor value chain.

The semiconductor industry faces unique sustainability challenges due to the energy-intensive nature of chip manufacturing and the complexity of global supply chains. This makes collaborative initiatives like the Infineon-UMC partnership particularly valuable, as they can help drive standardization of sustainability practices and create economies of scale in the development and deployment of decarbonization solutions.

As semiconductor demand continues to grow driven by digitalization, artificial intelligence, electric vehicles, and renewable energy systems, the industry's environmental footprint is likely to expand without concerted action. Partnerships like this one represent an important mechanism for ensuring that the semiconductor industry's growth trajectory is compatible with global climate goals and the transition to a low-carbon economy.