Silicon Valley’s New Dilemma: Are Semiconductor Factories a Health Hazard?

The Toxic Truth: Can the US Chip Boom Avoid Repeating Silicon Valley’s Mistakes?

The Biden administration has poured billions of dollars into revitalizing the American semiconductor industry, aiming to reshore manufacturing and regain technological dominance. However, amidst the excitement of a burgeoning chip boom, a critical question looms: can the nation avoid repeating its past mistakes? The first generation of semiconductor factories, or fabs, in Silicon Valley left a legacy of toxic Superfund sites, a grim reminder of the environmental and health risks associated with chip production.

Today, a growing coalition of labor unions and environmental groups including the Sierra Club is sounding the alarm, pushing for more transparency and thorough environmental reviews of the new fabs being built across the US. They argue that while these facilities are essential for national security and economic growth, lax regulations could lead to the same environmental and health crises that plagued Silicon Valley.

"We aren’t objecting to the existence of these plants. We know that they’re going to have to use hazardous substances. Obviously, we’re pushing for substitutes when they can, but one of our biggest problems is the lack of transparency," says Lenny Siegel, executive director of the Center for Public Environmental Oversight (CPEO).

Their concerns are rooted in a toxic history. The CHIPS and Science Act, passed in 2022, allocated $52.7 billion in funding for chip manufacturing, aiming to bolster the domestic supply chain for these crucial components. But the coalition, known as CHIPS Communities United, raises a critical point: these federal dollars come with strings attached.

Companies receiving funds are subject to the National Environmental Policy Act (NEPA), a bedrock environmental policy requiring federal agencies to conduct thorough environmental reviews. While NEPA offers a vital tool for ensuring accountability, the coalition argues that the process is being shortchanged.

The Department of Commerce has released draft environmental assessments for three major chip factory projects: Micron’s expansion in Boise, Idaho, Intel’s facilities in Arizona, and TSMC’s new fabs in Phoenix. These assessments generally downplay the potential for significant environmental impacts, claiming those risks can be mitigated through best management practices (BMPs).

However, CHIPS Communities United isn’t so easily convinced. They argue that the assessments lack details about these BMPs, how they will be monitored and enforced, and the potential for cumulative impacts from multiple fabs operating in close proximity.

"These are huge projects, and they will have an environmental impact," says Siegel. "The draft environmental assessments make assumptions about what is going to be done to mitigate those impacts, but there’s no guarantee that those mitigations will be carried out."

A Cocktail of Chemicals, A Legacy of Risk

The concern is not unfounded. Chip production involves a diverse and often evolving set of chemicals, with some linked to miscarriages and other health risks. While the industry has made strides, toxicologists emphasize that the speed of chemical innovation often outpaces our understanding of its consequences.

Adding to the complexity is the reluctance of companies to disclose the chemical cocktails they use, citing trade secrets. This poses a serious challenge for worker safety, raising concerns about potential exposure to hazardous substances without clear knowledge of the risks.

The coalition stresses the need for worker empowerment, not just in terms of knowing what they are handling but also by ensuring they have a voice in health and safety protocols and the right to halt production if danger arises. They are also pushing for safeguards against worker retaliation for speaking up about safety concerns.

Forever Chemicals: A Persistent Threat

In recent years, forever chemicals – specifically per- and polyfluoroalkyl substances (PFAS) – have emerged as a key concern within the semiconductor industry. PFAS are widely used for their durability and non-stick properties but are persistent in the environment and have been linked to cancer, liver damage, high cholesterol, and reproductive health issues.

The industry is grappling with the challenge of managing and disposing of PFAS, a task made more difficult by the fact that their sheer number and lack of adequate exposure limits leave scientists struggling to fully comprehend their impacts.

The draft environmental assessments for Intel and TSMC rely on sending PFAS to off-site disposal facilities. But CHIPS Communities United argues that this only pushes the problem elsewhere, raising concerns about PFAS leaching from landfills and even persisting in the air despite incineration.

Beyond Clean Up: A Call for Community Engagement

The coalition emphasizes the urgency of moving beyond simply cleaning up contamination after the fact. They advocate for more detailed environmental impact statements that would provide a transparent accounting of potential risks and mitigation measures. This, they argue, will allow for more robust public engagement and give communities a voice in crafting solutions.

CHIPS Communities United sees community benefits agreements as essential in addressing the environmental and health impacts of these projects. They also believe that the Department of Commerce should explicitly stipulate environmental and health protections within its contracts with chip manufacturers.

The Path Forward: A Balancing Act

The US is facing a crucial moment in its quest to rebuild its semiconductor industry. While the promise of economic and technological resurgence is undeniable, the potential for repeating past environmental and health mistakes lingers.

CHIPS Communities United’s calls for greater transparency, community engagement, and robust environmental protections are not about halting progress. They are about ensuring that this technological renaissance is built on a foundation of sustainability, worker safety, and public health. The future of the US semiconductor industry hinges on striking a balance between innovation and responsibility, a balance that can only be achieved through a greater commitment to environmental and health protection.

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