Abstract

"Sustainability Challenges and Co-Creation in the Semiconductor Industry"

Mila Davids, Eindhoven University of Technology (m.davids@tue.nl)

The outsourcing and disintegration of Integrated Device Manufacturers (IDMs) in the semiconductor industry since the 1980s not only created a globally networked sector but also led to significant dependencies within the supply chain. For decades, all actors in the network were aligned under a shared objective: miniaturization. The goal was clear and unifying. However, this focus began to shift as the environmental impact of the industry gained prominence on the global agenda. Companies across the semiconductor supply chain had to confront their unsustainable practices. Increasing regulatory pressure further compelled them to take responsibility and develop solutions.
Analyzing the industry’s history through the lens of co-creation reveals several key dynamics. First, pressure from external actors—particularly NGOs like Greenpeace—forced companies to rethink their innovation strategies. In response to sustainability regulations, minimizing environmental impact became a critical consideration alongside technological advancement. As employees at the Dutch firm ASML noted, this shift required a fundamental change in mindset.
Second, co-creation highlights the unequal distribution of environmental impact across the semiconductor industry. These sustainability consequences are not shared equally on a global scale, as illustrated by a comparison between ASML in the Netherlands and TSMC in Taiwan. Growing awareness of these imbalances has influenced eco-innovation across the sector. Since sustainability challenges transcend individual companies, solutions demand collaboration—often between firms with differing levels of power and influence.
Finally, both industry disintegration and sustainability concerns are closely tied to institutional change. New institutions have emerged in response. A notable example is the research consortium imec, founded in the mid-1980s, which provides a platform where competitors can collaborate to solve shared problems. The interplay of co-creation and collective action within such platforms is a compelling development in the industry's evolution.