Sustainability and ethical responsibility in the semiconductor industry: A comparative case study of TSMC and SMIC

Szávó Lóránd Levente (2026) Sustainability and ethical responsibility in the semiconductor industry: A comparative case study of TSMC and SMIC. In: ESG - Risk Management or New Sustainability? VIII.BUEB International Sustainability Student ConferenceProceedings - Budapest University of Economics and Business 2025. Budapesti Gazdaságtudományi Egyetem, Budapest, Magyarország, pp. 1-11. ISBN 978-615-6886-27-9

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Abstract

The study offers a comparative analysis of sustainability, ethical responsibility and environmental performance in the semiconductor industry, focusing on Taiwan Semiconductor Manufacturing Company (TSMC) and Semiconductor Manufacturing International Corporation (SMIC). The research contributes to the growing discourse on green transformation in high-tech manufacturing by assessing how these two leading Asian foundries respond to global sustainability challenges and align their strategies with the United Nations Sustainable Development Goals (SDGs). The study is grounded in a multidimensional framework that incorporates industry-specific sustainability challenges, ethical risks, alignment with the SDGs, and corporate ESG strategies. Secondary data from corporate disclosures, academic literature and industry reports underpinned the analysis. Preliminary analysis reveals that TSMC has made stronger commitments to carbon neutrality and water recycling, while SMIC's approach aligns with national policy and reflects progressive ESG integration. Both companies face challenges in transparency; however, they are demonstrating emerging good practices by adopting green innovations. The findings offer both a theoretical and a practical overview by integrating global policy goals with firm-level behaviour. They highlight the role of national policy, technological innovation, and supply chain governance in shaping corporate sustainability outcomes. The research provides actionable recommendations to align industry practices with circular-economy principles and to improve cross-border sustainability standards in the semiconductor sector.