SEMI June 3, 2024
Semiconductors are the foundation of all electronics and information technology that drive our modern world – powering everything from critical infrastructure and aerospace and defense systems to medical equipment, phones and automotive electronics. With semiconductors critical to the economy and national security in the United States and other geographies, government policies that secure the semiconductor supply chain and bolster domestic chip manufacturing are key.
However, new regulatory proposals to restrict certain chemicals used in the industry are poised to create supply chain disruptions and jeopardize countless sectors that rely on semiconductor chips.
In recent months, SEMI and SEMI PFAS Working Group members have strengthened their advocacy efforts concerning policies governing the use of per- and polyfluoroalkyl substances (PFAS). These compounds are essential to every aspect of semiconductor manufacturing because of their unique properties including their chemical and temperature resistance, flexibility, low friction coefficient, purity, and non-flammability. The SEMI PFAS explainer webpages have recently been republished as a single downloadable PDF document, which provides more information on PFAS.
There are no known equivalent PFAS-free alternatives for most chipmaking applications, nor do we believe any meaningful alternatives are close to identification. That has not stopped the industry from research and development efforts.
Current Policy Landscape
While much attention has been rightly focused on the European Chemicals Agency (ECHA) PFAS restriction proposal and U.S. Environmental Protection Agency (EPA) PFAS reporting rule, we’re seeing many of the most immediate policy restrictions proposed at the U.S. state level. The pervasiveness of PFAS has generated widespread concerns among the public, prompting state elected officials to act quickly by implementing sweeping regulations, often with unanticipated consequences including their existential risk to semiconductor businesses operating within their areas of jurisdiction.
In some cases, these policies are aimed at phasing out the use of PFAS and usually manifest as reporting requirements for intentionally added PFAS and outright prohibitions on products containing intentionally added PFAS. While many of these laws and regulations are rooted in limiting the public health and environmental impact of PFAS in consumer products such as cookware, food packaging, cosmetics, and fabrics, they often unintentionally sweep in products such as those essential to the manufacturing of chips.
SEMI’s Advocacy Approach
Given the criticality of this issue to SEMI’s members, the wider U.S. semiconductor manufacturing industry, and the economic and national security objectives of the CHIPS and Science Act, SEMI is increasing its PFAS advocacy at the state level. In close collaboration with the SEMI PFAS Working Group, SEMI advocacy staff has been monitoring state PFAS policy developments, identifying those requiring immediate attention, and implementing state-specific advocacy strategies.
Most recently our focus has been on policies in Maine and Minnesota, where PFAS regulations are under development in response to legislation passed in the last two years. SEMI formed member working group sub-teams in both states, led and joined advocacy efforts around PFAS legislation and regulations, and is engaging with key regulatory and legislative policymakers in state governments.
Positive Outcomes
These efforts have led to successes in both states. In Maine, the SEMI team worked directly with local member companies, non-member stakeholder organizations, and state regulatory officials to educate legislators and inform revisions of the law. The upshot is that these efforts resulted in language exempting the semiconductor industry in Maine from PFAS the reporting requirement and prohibition. This will enable companies to continue critical operations without interruption amid a more robust regulatory environment in the state, and without increasing harm to residents or the environment.
In Minnesota, the SEMI team mobilized a coalition of member companies to influence the state’s PFAS rulemaking process. SEMI led the development of responses to the Minnesota Pollution Control Agency’s (MPCA) call for comments on its PFAS reporting rule and product prohibition and facilitated information sharing meetings with high-level officials at the MPCA and the office of Governor Walz. Following these engagements, MPCA invited SEMI to join the agency’s industry stakeholder working group, ensuring that SEMI and its members have a seat at the table alongside MPCA officials and other industry stakeholders as the rulemaking process continues.
