[Peace&Chips] High-Efficiency Semiconductors Powering the ESG Solution

Semiconductors, 'High Efficiency' as Important as 'High Performance'
"High Efficiency is the Direction of Semiconductor Development," Experts Say
Samsung and SK Hynix Showcase Several High-Efficiency Products

Editor's NoteSemiconductors, known as the rice of modern industry. Although it's a term we hear every day, it’s often hard to explain. Peace & Chips will make the complex concepts and overall flow of the semiconductor industry easy to digest. Just bring your spoon.

[Peace&Chips] High-Efficiency Semiconductors Powering the ESG Solution

[Asia Economy Reporter Kim Pyeonghwa] Last year, there was a word that recorded the highest number of searches on domestic Google sites. That word was "climate change." This reflects the increased interest as environment, social, and governance (ESG), including eco-friendliness, has emerged as a key keyword permeating all industries.

ESG is also a core issue in the semiconductor industry. Since 24-hour factory operation is essential, power consumption is high, and carbon is emitted through multiple processes. Samsung Electronics and SK Hynix rank first and second as the largest consumers of industrial electricity in Korea.

The strong ESG interest in related industries such as IT devices and data centers that consume semiconductors also raises the importance of ESG for semiconductor manufacturers as suppliers. It is important not only to introduce eco-friendly semiconductor processes but also to develop and launch eco-friendly semiconductors that reduce power consumption.

List of top 5 industrial power-consuming companies as of 2021. Samsung Electronics and SK Hynix have held the 1st and 2nd positions for several years.

Samsung Electronics and SK Hynix are consecutively launching semiconductors with improved power efficiency compared to existing products. They even offer LPDDR product lines that include the abbreviation "Low Power" in their names. LPDDR refers to memory semiconductors, specifically DRAM used for mobile devices such as smartphones.

At the end of last month, Samsung Electronics announced the latest development in DRAM, introducing a high-performance product that reduces power consumption by 23% compared to previous models. In September last year, they announced an eco-friendly management strategy, highlighting ultra-low power semiconductor development as a key task. Their goal is to contribute to power savings in advanced industrial fields.

Samsung Electronics introduced a 16-gigabit (Gb) Double Data Rate (DDR)5 DRAM based on a 12-nanometer process at the end of December last year. It features improved power efficiency, reducing power consumption by 23% compared to the previous generation. / Photo by Samsung Electronics

SK Hynix plans to showcase several next-generation semiconductors boasting high efficiency at CES 2023, the world’s largest IT and electronics exhibition held in Las Vegas on the 5th (local time). In line with SK Group’s direction of a "carbon-free future," they have carefully selected products that reduce carbon emissions to present.

The semiconductor industry emphasizes that future semiconductors will require both "high performance" and "high efficiency" as essential concepts. They even explain, "The direction of semiconductor development is that product B uses less power than product A released last year."

High-efficiency memory semiconductor products presented by SK Hynix at CES 2023. From the top left clockwise: CXL Memory, PS1010 E3.S, HBM3, GDDR6-AiM / Photo by SK Hynix

Especially with the rapid advancement of technologies such as artificial intelligence (AI) and the digitalization of society, the massive accumulation of data in data centers increases the need for high-efficiency semiconductors. Replacing data center server semiconductors shipped in 2020 with high-efficiency products could reduce power consumption by 7 terawatt-hours (TWh) annually, which is equivalent to replacing 2.5 aging coal-fired power plants, making such changes essential.

The fierce competition among semiconductor manufacturers in the fields of high performance and high efficiency is expected to draw attention. Since eco-friendly implementation is essential, not only related industries but also general consumers should take interest.