Implications of the semiconductor shortage on EHS

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May 11, 2022 - The semiconductor industry in the U.S. is drastically expanding to meet the demands of massive inventory shortages caused by pandemic-related shutdowns and supply chain disruptions. With Intel’s plan for a $20 billion production facility in Ohio, and as other manufacturing facilities ramp up, domestic production of semiconductors is slated to skyrocket. This boom in semiconductor growth requires robust environmental, health, and safety (EHS) planning and programs. BSI’s experts discuss the state of the semiconductor industry and the challenges surrounding the manufacturing of these high-tech products.

The semiconductor shortage is expected to persist throughout 2022. And while the industries most impacted have been the automotive and electronics sectors, explains Tony Pelli, Practice Director for Security and Resilience, other areas such as smart lighting and consumer appliances that rely on semiconductors to function (e.g., dishwashers, refrigerators, and freezers) are feeling the residual shortage consequences. There is also going to be continued pressure in the chip market primarily because of the push within organizations toward AI and machine learning applications, he continues. That type of technology requires a lot of computing power to operate. So not only is there already a shortage, but demands for this type of technology could extend well into 2023 or 2024.

In response to this increase in demand, many new semiconductor fabrication facilities are being designed and built to scales much larger than existing infrastructures. There will certainly be some impacts to workers supporting these new operations, offers Principal Consultant Jyoti Kumar, CIH. A skilled workforce will be required to support the new facilities but there will need to be a focus on health and safety programs to protect workers from risks such as chemical, robotic, and electrical hazards. There will also be a huge focus on safely ensuring that those facilities’ tools are installed safely, and are operated and maintained appropriately, she says. This will require construction and safety operational risk assessments associated with large fabrication volumes as well as comprehensive injury and illness prevention training. Compliance challenges associated with existing fire and building code requirements as well as environmental concerns, she continues, will all need to be addressed.

These facilities are multi-billion-dollar projects that are going to take five or ten years to complete, Kumar explains. Even existing chip production plants are expanding their current manufacturing capabilities, and that means a lot of construction. This causes added impact on not only worker health but also the surrounding communities. Larger quantities of potentially hazardous or toxic materials will need to be properly stored and require specific types of permitting. Understanding the potential consequences of a leak or release of those materials potentially into communities is required, she says. There'll certainly be other impacts that communities need to be aware of to ensure their health is well protected.

Another change Pelli points out is that companies are no longer purchasing chips from suppliers but instead are going straight to the manufacturers. This changes the way the supply chain is arranged and while that potentially cuts down on the lead times required for re-supply, it locks a company in with a particular supplier, making it harder to quickly shift to another source if there's an issue. There are both risks and rewards with this strategy, he continues, but companies should be careful to balance out both options.