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SIGN INFrom advancing energy-efficient solutions to increasing the share of renewable energy, NXP’s aims to support global decarbonization ambitions.
Electricity is generated from a variety of energy sources and these sources vary depending on region and country. Currently, we use a mix of energy sources because of their availability, stability and reliability. However, our long-term ambition is to transition to 100% renewable electricity.
Primary sources of energy for our manufacturing, testing and office sites come from the electrical grid. We purchase renewable electricity when available and continue to purchase electricity from fossil-fuel sources in jurisdictions where reliable and abundant alternative energy sources are not available. Additionally, we completed on-site renewable electricity installations at a few select manufacturing locations to supplement the higher carbon-content energy we purchase.
Semiconductor manufacturing is an electricity-intensive process, with wafer fabrication requiring more electricity than assembly and test. Consequently, electricity consumed at our non-manufacturing sites accounted for only 3% of NXP's total consumption in 2024.
To reduce our consumption of electricity, our manufacturing sites continually optimize processes and replace or upgrade equipment. Examples of this ongoing work include the following:
Our renewable electricity percentage includes energy sources such as wind, solar, biomass, geothermal and hydropower, and does not include nuclear energy. Overall, our renewable electricity usage increased by 5 percentage points compared to 2023.
In 2024, renewable electricity installations at our Bangkok, Thailand, Kuala Lumpur, Malaysia, Tianjin, Mainland China and Kaohsuing, Taiwan locations were completed, marking an important milestone in our journey to a more sustainable future.
We have direct energy consumption at our manufacturing sites used for necessary business activities such as testing processes or emergency generators. This impact is included in our Scope 1 emissions.
We mostly use natural gas to heat buildings, generate steam for humidity and run our emissions-abatement equipment. Our use of natural gas depends strongly on both external weather and our internal production activity. Our consumption has remained relatively stable over the past few years, but has increased in part due to factory expansion. In 2024, our absolute natural-gas consumption decreased 3% compared to 2023, decreased by 1% compared to our baseline year, 2021 and increased by 10% compared to 2015 due to expansion of sites located in the Asia–Pacific region.
In case of power interruptions, we have diesel-driven emergency generators that support essential safety systems. Our consumption of diesel fuel fluctuates depending on how often we test or need to use these emergency safety systems. We used 41% more diesel in 2024 compared to 2023, but 49% less since our baseline year, 2021. The increase can be attributed to more frequent use of the emergency generators in the course of 2024, either for emergency drills or as a result of power outages that required the use of these systems.
Other fossil fuels we use include gasoline, liquefied petroleum gas (LPG) and town gas. LPG is a relatively clean-burning fossil fuel that, compared to gasoline, produces fewer emissions and is safer to use indoors. We use LPG to run forklifts and in some of our onsite cafeterias. Town gas, also known as coal gas, is a manufactured gaseous fuel made from coal and is used for heating in some geographic regions, including Asia. We use town gas as part of the recent expansion at our SSMC wafer fab in Singapore. In 2024, our consumption of other fossil fuels increased by 2% from 2023 and by 57% from 2015. Since our 2021 baseline, other fossil fuel emissions have increased by 7%.
We are here to answer any inquiry regarding our corporate sustainability efforts, including EHS and environmental product compliance.