Secretary Raimondo outlines environmental requirements for $50B semiconductor funding

The U.S. Senate Committee on Commerce, Science, and Transportation convened on June 30, 2025, to discuss the implementation and oversight of the CHIPS and Science Act, focusing on the environmental implications of semiconductor manufacturing. The meeting highlighted the significant carbon emissions and water consumption associated with the production of advanced chips, which are estimated to be equivalent to the annual emissions of 1.4 million cars.

Secretary of Commerce Gina Raimondo addressed concerns regarding the environmental impact of the $50 billion allocated for chip manufacturing and research and development. She confirmed that the Department of Commerce will require companies applying for CHIPS Act funds to submit comprehensive climate and environmental responsibility plans. This initiative aims to ensure that companies are held accountable for their environmental commitments, which Secretary Raimondo emphasized is not merely a social policy but a necessary business practice to mitigate risks associated with climate events.

The committee members expressed the need for semiconductor manufacturing processes to be safer and more sustainable. They pointed out that the current methods are water, energy, and chemically intensive, posing risks to workers and surrounding communities. The discussion included a call for new technologies that would reduce these risks and promote cleaner manufacturing practices.

In response to inquiries about prioritizing research for greener semiconductor fabrication technologies, Secretary Raimondo outlined that companies must present a sustainability plan alongside their financial and security plans when applying for federal funds. This requirement aims to ensure that taxpayer money is invested in projects that consider environmental impacts.

The meeting concluded with a recognition of the dual challenge of advancing semiconductor technology while safeguarding environmental and community health. The committee underscored the importance of balancing economic growth in the semiconductor industry with responsible environmental stewardship, setting the stage for future discussions on sustainable practices in technology development.