How to Invest in Intel’s Potential Chip Manufacturing Disruption


IIntel, an American computer chip maker, aims to completely reinvent the components of computer chip manufacturing to achieve its goals of net zero emissions by 2040, the Wall Street Journal reported.

Today’s productions of semiconductor chips, a vital component for many industries, require the use of high-emitting chemicals, and as demand for its products has soared, the company’s emissions have also increased. Intel has taken significant steps to reduce and offset its direct emissions through efficiency gains and increased use of renewable energy.

Those steps represented a 75% reduction of what emissions would otherwise have been, but now the major chipmaker is planning to completely revamp the chipmaking process, going back to the drawing board to try and find ways alternatives that would reduce released emissions. during manufacture.

“We need to fundamentally look at the chemistry and whether we can come up with completely new chemistries that have no global warming potential,” said Todd Brady, director of sustainability at Intel. “It will be a big, big change.”

Intel is seeking to establish a research and development project that will span industries in its pursuit of redefining chip manufacturing. Current processes require the use of chemicals that emit greenhouse gases much more potent than carbon dioxide, called perfluorocarbons, and are between 6,500 and 9,200 more caustic and potent than carbon dioxide, according to the US Environmental Protection Agency.

Emissions of these chemicals were the primary driver of Intel’s direct greenhouse gas emissions in 2020, accounting for nearly half of its footprint for these direct emissions, totaling 1.97 million metric tons of CO2.

“Semiconductor companies must continue to push sustainability considerations from the very beginning of the design of every technology,” said Peter Hanbury, head of manufacturing practices for the Americas at Bain and Co. “It’s much easier to insert these new approaches and techniques at the start of the design of a new process that is to be modernized.

Investing in Intel’s Potential to Disrupt the Industry

If Intel manages to find an emissions-friendly alternative to manufacturing semiconductor chips, it could disrupt and revolutionize the industry.

“My opinion is this: innovation continues,” Brady said. “We have brilliant engineers and scientists who are finding new ways to maintain efficiency.”

For investors looking for access to Intel and similar companies working to reduce emissions and increase sustainability, Index IQ offers two funds with Intel as the holding company.

the FNB IQ Cleaner Transport (CLNR) offers an investment opportunity in the transition of emissions from the transport sector. CLRN seeks to give investors exposure to global companies focused on clean energy resources, transportation equipment and services, technology that makes transportation more efficient, and infrastructure components.

CLNR is a dual-impact fund in that it has aligned with the National Wildlife Federation and donates a portion of CLNR’s management fees to the organization.

Intel has a 3.1% weighting in CLNR and the fund has an expense ratio of 0.45%.

the IQ Clean Oceans ETF (OCEN) invests in the blue economy, which is estimated at around $2.5 trillion annually and is expected to grow twice as fast as the traditional economy by 2030. OCEN seeks to provide exposure to companies involved in reducing pollution, carbon efficiency, clean energy, sustainable ocean development or cleaner shipping.

OCEN was developed in alignment with Oceana and donates a portion of its management profits to Oceana, the largest international advocacy organization focused on ocean conservation.

Intel has a 3.1% weighting in OCEN and the fund has an expense ratio of 0.45%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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