Apple Suppliers Struggling to Meet Environmental Goals

Apple's strict environmental goals are putting pressure on the company's global supply chains, DigiTimes reports.

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In a paywalled report, ‌DigiTimes‌ claims that Apple's goal of achieving carbon neutrality by 2030 is putting pressure on its supply chain, with major suppliers such as TSMC scrambling to meet the company's demands. Sources speaking to ‌DigiTimes‌ said that TSMC was making slow progress toward carbon neutrality and is being forced to take more assertive action to reach its environmental goals.

TSMC supplies all of Apple's custom silicon chips for the Apple Watch, iPhone, iPad, and Mac. The company is said to be concerned about the high cost of achieving net-zero carbon emissions and is finding it difficult to purchase enough green energy. Despite this, TSMC now sees its green credentials as key to its ability to stay competitive in the years ahead, with the tangential benefit of improving efficiency.

Just as Apple is compelling its suppliers to save energy and reduce carbon emissions, TSMC is putting the same pressure on its own supply chain. Several hundred factories in Taiwan singularly depend on TSMC for orders and the chip manufacturer has urged its suppliers to reduce their carbon footprint by using energy from renewable sources.

TSMC previously announced a 20 percent energy-savings goal for its supply chain by 2030, and now it has warned suppliers that they could lose orders if their processes are not considered to be green enough in the future. Some of the chip maker's suppliers that are themselves struggling to meet environmental goals have reportedly sought assistance from TSMC and external organizations.

While demand for TSMC's chips continues to expand, the push for green manufacturing and renewable energy procurement and the cost of carbon taxes and fees is significantly increasing production costs. As such, environmental goals are said to be "major risks" for TSMC's operations going forward.

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Top Rated Comments

citysnaps Avatar
33 months ago
Hat-tip to Apple for setting a high bar.
Score: 14 Votes (Like | Disagree)
businessnumbersmoneypeopl Avatar
33 months ago
How about making those AirPod batteries replacable? There's a competitor that has already managed to do such thing with similar bluetooth earpods.

While they're at it, Apple could also make iPhones and Macbooks more repairable and upgradeable. After that they can start talking about using green energy etc.
Score: 7 Votes (Like | Disagree)
now i see it Avatar
33 months ago
It may not be possible to consume the same amount of energy we are used to using by using green energy only.

It may also not be possible to stop the downhill slide humans have tilted the global climate.

All evidence suggests that the earth is long down the path of the 6th global mass extinction.

just sayin.

Have a good day!
Score: 6 Votes (Like | Disagree)
citysnaps Avatar
33 months ago

How about making those AirPod batteries replacable? There's a competitor that has already managed to do such thing with similar bluetooth earpods.

While they're at it, Apple could also make iPhones and Macbooks more repairable and upgradeable. After that they can start talking about using green energy etc.
How-aboutism at its finest.

The story is about Apple holding its suppliers accountable meeting certain environmental goals in their processes.
Score: 6 Votes (Like | Disagree)
jz0309 Avatar
33 months ago
good for Apple to have an aggressive goal. One has to review though TSMC's goal to truly understand where their goals, I sure don't trust Digitizes ... and, in general, Asia is behind when it comes to environmental goals, when most manufacturing is moved to Asia from both US and EU for cheap labor and low environmental control, well ... things need to change, there is only 1 earth and we are all breathing the same air ...
Score: 6 Votes (Like | Disagree)
businessnumbersmoneypeopl Avatar
33 months ago

How-aboutism at its finest.
I'm just annoyed how Apple keynotes continuously boast about their environmental targets while they are turning a blind eye to most obvious solutions. Sure, I understand the business logic behind it, but that doesn't make it less hypocritical.
Score: 6 Votes (Like | Disagree)