Why Asia’s Semiconductor Leaders Are Turning to Solar to Stay Ahead

Asia sits at the heart of the global semiconductor and electronics supply chain, powering everything from smartphones and laptops to electric vehicles and advanced robotics. 

But behind this rapid growth lies a significant challenge: the industry is extremely energy intensive with a significant proportion of energy sourced from fossil fuels like coal and gas. 

So, why is energy consumption so high for electronics and semiconductor manufacturers?

• Cleanroom Operations: Semiconductor fabs require highly controlled environments where temperature, humidity, and air purity must be maintained 24/7. Cleanrooms alone can consume up to half of a facility’s total electricity.
• Advanced Equipment: High-precision machinery such as lithography tools, wafer fabrication systems, and robotic handling equipment run continuously and draw massive amounts of power.
• Cooling and HVAC Systems: The heat generated by production equipment must be managed by large-scale cooling and ventilation systems, further driving up energy use.
• Round-the-Clock Production: To meet global demand, many plants run non-stop, which multiplies both electricity consumption and operating costs.

This combination makes semiconductors an extremely energy-hungry industry which pushes manufacturers to put sustainability and energy efficiency at the top of their agenda.

Pressures Facing the Semiconductor Industry

As demand for electronics continues to grow, semiconductor manufacturers in Asia are facing mounting pressures that go beyond production efficiency. The combination of rising energy use, environmental impact, and global market dynamics means energy practices are now under a microscope.

Rising Energy Costs

Energy is one of the largest operational expenses for semiconductor and electronics manufacturers, in some cases contributing up to 30% of a facility’s operating budget. 

This is a definite challenge for businesses operating in an already uncertain economic climate. In the past, manufacturers in Asia used to benefit from lower energy prices, which gave them a competitive edge globally.

But now, that advantage is slipping.

Ageing grid infrastructure, rising fuel costs, and policy changes are pushing electricity prices up across the region. Fossil fuel price volatility makes it even harder to predict operational costs.

Recent data backs this up: in 2025, industrial electricity prices across Asia rose by about 1.3% year-on-year, partly driven by higher gas prices, grid upgrades and utilities looking to recoup losses.

Meanwhile, demand for electricity in Asia-Pacific is expected to grow strongly (by about 4%) this year, due to economic expansion and growing usage in tech sectors, which adds further strain on already stretched grids. 

For semiconductor and electronics manufacturers, these trends mean that reliance on grid power will lead to rising costs and reduced competitiveness in turn. This is why renewable energy, especially solar, is increasingly seen as a practical alternative to avoid those risks.

Stricter ESG Regulations

Across Asia, governments are tightening environmental regulations and requiring more transparency from manufacturers. In markets such as Singapore, Indonesia and Thailand, companies are expected to disclose emissions data more thoroughly and align with global reporting standards.

For semiconductor and electronics manufacturers, this means tracking Scope 1 and 2 emissions is already essential, while Scope 3 reporting is quickly gaining importance. Companies that fail to adapt risk facing penalties, reputational setbacks, and exclusion from government-backed initiatives.

In Singapore, for example, all listed companies must publish climate-related disclosures aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) by 2025 

Regionally, the ASEAN Taxonomy for Sustainable Finance is also setting out consistent frameworks for green reporting.

Supply Chain Expectations

Semiconductor and electronics supply chains are under growing pressure to decarbonise, with global brands setting stricter requirements for their manufacturing partners. Buyers increasingly ask for proof of renewable energy adoption, detailed sustainability reporting, and evidence of emission reductions before awarding contracts.

A clear example of this shift is Apple’s Supplier Clean Energy Program. 

Since 2015, Apple has worked directly with its suppliers to transition production to 100 percent renewable electricity. 

As of 2021, more than 110 of its manufacturing partners across 24 countries have joined the program, representing nearly 8 gigawatts of clean energy commitments and avoiding over 15 million metric tons of CO₂ emissions annually

Apple’s approach demonstrates how leading brands are setting ambitious climate targets and holding their suppliers accountable for meeting them — with regular reporting, third-party verification and tangible support to build renewable energy capacity.

According to Greenpeace East Asia, three quarters of the electronics industry’s total emissions come from its supply chain, making upstream manufacturers a central focus of sustainability efforts.

Solar energy provides suppliers with verifiable, auditable data that can be used in tenders and sustainability audits, giving them an edge in securing long-term partnerships with ESG-focused buyers.

Investor and Market Pressure

Beyond regulators and buyers, investors are also demanding credible climate action. Sustainability is now seen as a key risk factor: companies with high emissions profiles are flagged as exposed to regulatory penalties, supply chain risks, and reputational damage.

This has direct consequences for semiconductor and electronics manufacturers that want to attract investment or maintain market confidence. Investors are increasingly favouring companies that show measurable decarbonisation progress, supported by transparent data.

For example, the Global Sustainable Investment Alliance (GSIA) reported that sustainable investment assets reached USD 30.3 trillion in 2022, showing how capital is shifting toward companies with strong ESG credentials. 

Why Semiconductor Leaders are Adopting Solar Energy

Semiconductor and electronics manufacturers are beginning to see solar energy not just as a sustainability measure, but as a strategic business decision. The technology directly addresses the industry’s most pressing challenges — from cost control to compliance and credibility.

Cost Control and Stability

Electricity is one of the largest operating expenses for semiconductor plants, and volatility in fossil fuel markets makes planning difficult. On-site solar allows manufacturers to lock in predictable energy costs for 15 to 25 years through Power Purchase Agreements (PPAs). This long-term visibility helps safeguard competitiveness against fluctuating grid tariffs and global fuel price shocks.

ESG Alignment and Compliance

Governments and regulators across Asia are demanding stronger disclosures on energy use and carbon emissions. Solar energy offers a straightforward way to cut Scope 2 emissions, which are increasingly scrutinised under sustainability reporting frameworks such as TCFD and ISSB. Manufacturers that adopt solar can show measurable progress toward decarbonisation and reduce compliance risks as rules tighten.

Traceability and Audit Readiness

Buyers and investors require verifiable data, not broad claims. Solar installations generate detailed, real-time records of electricity production that can be integrated into ESG reporting. This provides manufacturers with hard data to share during sustainability audits and supplier assessments, reinforcing credibility in global supply chains.

Reputation and Industry Positioning

Adopting solar energy signals commitment to forward-looking practices and environmental responsibility. Semiconductor leaders that move early gain reputational benefits, positioning themselves as reliable partners to multinational brands and investors that prioritise sustainability in their procurement and investment strategies.

How TotalEnergies ENEOS is Powering Asia’s Electronics Sector with Solar Energy

Across Asia, leading manufacturers are already partnering with TotalEnergies ENEOS to integrate solar energy into their operations. These projects demonstrate how customised, no-CAPEX solar solutions can reduce emissions, cut costs, and build long-term resilience in energy-intensive industries.

Helping Electronics Manufacturers Stay Ahead with Solar Energy

Semiconductor and electronics manufacturing will remain one of the most energy-intensive industries in the world. Rising energy costs, stricter ESG regulations, and increasing supply chain expectations are reshaping how companies in Asia must operate.

Solar energy provides a practical and proven path forward. By integrating solar panels into their facilities, manufacturers can cut operating costs, reduce Scope 2 emissions, and generate verifiable data that strengthens their credibility with regulators, investors, and global partners.

The regional examples across Vietnam, Thailand, Indonesia, Malaysia, and the Philippines show that solar is already helping leading manufacturers achieve measurable results without upfront investment. 

For companies in the semiconductor and electronics sector, solar adoption is a reliable way to strengthen their market position while meeting the rising expectations of customers and stakeholders.

Ready to explore how solar can transform your operations? Discover more about TotalEnergies ENEOS solar solutions for the semiconductor and electronics sector.