TSMC Collaborates with the Ministry of Environment in Taiwan to Create the Country’s First Chemical Leasing Model

TSMC continues to drive source reduction and enhance circular economy to achieve long-term resource sustainability. To maximize resource utilization, TSMC collaborates with Taiwan’s Ministry of Environment to create the first "chemical leasing" business model, aiming to encourage suppliers to reduce the use of raw materials and increase the recycling rate. The project of Activated Carbon Regeneration and Recycling has been chosen as the pilot case of chemical leasing model to carry out in Taiwan. During its one-year demonstration period, the project is expected to extend the service life of 700 metric tons of leased activated carbon and reduce carbon emissions by 4,640 metric tons, with a saving of NT$8.5 million in activated carbon purchase and waste management. It will serve as a reference for Taiwan’s Ministry of Environment to further the development of laws on chemical leasing, progressing towards the goal of resource sustainability.

Circular Procurement for a Sustainable Future Through Chemical Leasing

To give waste resources a new life, TSMC has worked with its suppliers on the regeneration methods of used activated carbon in 2022. We reactivated the used activated carbons at a temperature above 800°C and then cooled it off to become reactivated carbons. We repeatedly tested and verified the hardness (wear loss), iodine value (adsorption capacity) and false specific gravity (activation degree), and other parameters of the reactivated carbons to ensure that they have the same properties as the original activated carbons, with no impurities. In 2023, all our fabs in Taiwan used these reactivated carbons, moving away from the traditional procurement practices of the linear economy by collaborating with Taiwan’s Ministry of Environment to develop a leasing model. To achieve the goal of sustainability, the chemical leasing model allows related suppliers to take ownership of the whole process from the production of virgin materials to the recycling of used materials. The life cycle of chemicals is prolonged through the “usership instead of ownership” circular procurement model as demonstrated by the chemical leasing model of activated and reactivated carbons. TSMC’s development of chemical leasing and related regeneration technologies with its suppliers greatly benefits the environment and helps achieve a win-win situation for everyone.

TSMC is committed to implementing the strategy of circular economy and plans to expand the scope of circular procurement to include other items of solid waste in the future. The Company is also working with suppliers and government agencies to develop a liquid waste recycling project, aiming to create a positive resource cycle for a sustainable supply chain.

TSMC Activated Carbon Regeneration Plan