SK Hynix Inc. [000660;KS], the world’s second-largest memory chip producer, has announced a groundbreaking sustainable manufacturing plan to utilize recycled and renewable materials in Semiconductor Production, as reported by the Korea Economic Daily on February 6. The company aims to raise the percentage of recycled materials in its products to 25% by 2025 and above 30% (based on weight) by 2030. At the initial stage of the plan, SK Hynix will replace essential metals for semiconductor production, such as copper, tin, and gold, with recycled materials. To further promote resource circularity, the company also plans to switch the plastic packaging used to protect finished semiconductor products to recycled plastic.

SK Hynix recognized establishing a circular economy system centered on resource recycling as an important task for countries and companies worldwide in the context of achieving carbon neutrality. As the first semiconductor globally to set specific targets for recycled material usage, SK Hynix will strengthen certification procedures and quality evaluation for recycled materials purchased by the company. In addition, it encourages its suppliers to join the efforts to obtain validation from prominent third-party organizations such as ISO 14021*, to verify the use and proportion of recycled materials. As part of its efforts to abate chipmaking’s vast environmental impact, SK Hynix has also raised its renewable electricity usage rate from 4% in 2021 to 29.6% in 2022 through the application of the Green Premium System.

Sources:

https://www.kedglobal.com/korean-chipmakers/newsView/ked202402060011

https://markets.ft.com/data/announce/detail?dockey=600-202402051900PR_NEWS_USPRX____CN28624-1

https://news.skhynix.com/sk-hynixs-esg-achievements-revealed-in-sustainability-report-2023/#:~:text=In%20terms%20of%20climate%20action,the%20green%20premium%20system3.