Applied materials powers semiconductor decarbonization in the age of AI
Making measurable progress towards decarbonization
Applied Materials stands at the intersection of technological innovation and environmental stewardship, committed not only to keeping pace with industry progress but also ensuring that growth is sustainable. Guided by its comprehensive Net Zero 2040 Playbook™, Applied is making significant strides in reducing its climate impact—and in partnering with customers and suppliers to effect change across the entire semiconductor value chain.
Applied Materials produces equipment used in the manufacture of virtually all new semiconductors and advanced displays. As global reliance on semiconductor technology grows, especially with data-hungry innovations like AI and autonomous vehicles, there is an urgent need to decarbonize this energy-intensive industry and adopt clean energy practices.
In response to this challenge, Applied developed its Net Zero 2040 Playbook™ – a clear plan to mitigate climate impact across the semiconductor value chain. Central to this strategy is a collaborative approach that targets emission reductions, not only within the company’s direct operations but also throughout the broader ecosystem in which it operates. By following the Playbook, Applied has made considerable headway toward its ambitious science-based targets for Scope 1, 2 and 3 emissions.
Applied has implemented measures to move toward 100% renewable energy by 2030 while increasing energy efficiency within its own facilities. These actions have led to the company using 73% renewable electricity worldwide by 2024 (up from 39% in 2019) and 100% renewable energy in the U.S. since 2022.
The company recognizes that its greatest opportunity for meaningful impact lies in addressing its Scope 3 emissions—the indirect emissions generated upstream in the supply chain and downstream through product use by customers. To date, the company has achieved a significant reduction of 6 million metric tons of Scope 3 emissions since 2022, a 24% reduction overall. The Net Zero 2040 Playbook acts as a unifying framework, aligning internal practices with external collaboration to catalyze industry-wide change.
Breakthroughs in customer innovation for decarbonization
Applied Materials is redefining environmental leadership by partnering with customers to advance sustainability—especially as the rise of AI accelerates data growth and the resulting increase in energy demands.
Recognizing the link between its own Scope 3 and customers’ Scope 1 emissions, Applied co-develops eco-advantaged solutions that boost resource efficiency and lower operational costs. Leveraging proprietary modeling tools, Applied quantifies product emissions and identifies opportunities for energy, chemical and carbon reduction—crucial in a world where AI scales-up data processing and carbon footprints.
Abatement tools like ecoAbate (formerly Aeris-G) demonstrate greater than 95%–99% destruction removal efficiency of high-GWP process gases, helping customers cut emissions at the source. Meanwhile, the Ginestra™ Simulation Platform accelerates materials innovation, decreasing waste and speeding time-to-market while supporting greener, more efficient chip design.
To further its commitment to accelerating innovation and commercialization of new chip technologies, Applied is building the EPIC Center in Silicon Valley. The EPIC Center will serve as the centerpiece of a new platform for rapid collaborative innovation that will power next-generation technologies foundational to the future of semiconductors and AI. The EPIC Center is expected to commence operations in 2026.
Applied’s close customer collaboration and advanced analytics empower the industry not only to meet AI’s demanding performance needs, but also to do so responsibly, thereby mitigating climate impact and charting a more sustainable path in our data-driven era.
A collaborative path forward for a net zero future
Applied Materials’ Net Zero 2040 Playbook serves as a catalyst for collaborative action across the industry. The progress seen so far is the result of strategic innovation, deep customer engagements and an unwavering commitment to environmental responsibility. As Applied continues to scale its efforts, the company is setting a strong example for others in the sector, demonstrating that sustainable growth and technological advancement can—and must—go hand in hand.
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