Value Recovery Strategies for Semiconductor Chips: End-of-Life Management of Microelectronic Components and Sub-Assemblies

Value Recovery Strategies for Semiconductor Chips: End-of-Life Management of Microelectronic Components and Sub-Assemblies Executive Summary Semiconductor chips play a crucial role in modern society, forming the backbone of virtually all the microelectronics included in smartphones, computers, household equipment, and vehicles to the effective delivery of various services including communication, transportation, and healthcare. The rapid advancement of digital technologies has fueled soaring demand, with global semiconductor sales expected to rise from $627.6 billion in 2024 to $1 trillion by 2030. However, manufacturing semiconductor chips is highly resource-intensive, requiring rare materials, vast amounts of water, and substantial energy. Most semiconductor chips are discarded at the end of a product’s lifecycle, contributing to electronic waste and environmental strain, both of which are major concerns. Given their crucial role in supporting economic growth and sustaining modern lifestyles, safeguarding the sovereignty of the domestic semiconductor supply chain has emerged as a top priority. The CHIPS and Science Act (2022) addresses this by allocating funding for research and development to bolster U.S. competitiveness and national security. The semiconductor industry is now under increasing pressure to more broadly embrace end-of-life (EoL) management strategies and mitigate the negative impacts. Numerous value recovery strategies have been proposed for transitioning industrial systems toward adopting more restorative and regenerative practices. Research has also explored recovering semiconductor chips from EoL products for reuse, with some applications found in industrial settings. However, widespread adoption remains limited due to significant challenges. Instead, the predominant approach explored is low-value recycling, which destroys the embodied energy and resources, undermining potential value recovery benefits. There is a growing need to develop new strategies to enhance the recovery of chip-containing microelectronic components and sub-assemblies (MCS) at EoL to maximize resource efficiency and reduce material waste. Studies exploring methods for collecting, recovering, and repurposing EoL MCS for multiple lifecycle applications, along with documenting workflows for a closed- loop system, could help identify key opportunities and challenges. These insights could support the broader implementation of EoL strategies for MCS, increasing value recovery from semiconductor chips. This proposed project will focus on conducting pilot studies to: • Identify potential strategies for MCS value recovery through reuse or remanufacturing • Establish workflows and stakeholders to facilitate MCS value recovery • Engage the industrial community for feedback and to assess the feasibility for broader application of findings from pilot studies The project team comprised of Drs. Badurdeen and Jawahir from the University of Kentucky (UK) have extensive expertise to successfully achieve the project objectives. Schneider Electric USA (SEU), a global leader in business-to-business technology solutions in electrification, automation and digitization with a World Economic Forum designated Lighthouse Facility in the vicinity of the UK campus, will participate as the industry partner for pilot studies. The team will engage with the relevant technical groups at NIST to ensure project deliverables are aligned with their activities targeted towards uplifting the US industrial base.