Jacob Karp
Abdullah Abunayyan
Aaron Hwang
Spencer Chavez
Loyola Marymount University
Jeff Thies
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Applied Materials Inc. is an American based company that supplies the equipment, services, and software in semiconductor manufacturing. Their innovation, the energy efficiency maximization software, helps solve the 12th sustainable development goal: Responsible Consumption and Production. This is because the software increases the sustainability of all products Applied Materials' semiconductors are used in by decreasing the amount of greenhouse gases they emit.
In addition, the software also aids in approaching the 13th sustainable development goal: Climate Action. In reducing the carbon footprint of every product it has been implemented it, Applied Materials has created a software that both limits their hand in, and shows adaptation for climate change.
The innovation entails the development of a software product aimed at optimizing energy consumption to conserve system electricity usage, integrating sustainability products into the portfolio of the company. Emerging from Applied Materials' concern of the environmental impact of semiconductor manufacturing on greenhouse gas emissions, the innovation was created from the desire to demonstrate sustainable solutions and reduce carbon emissions. Through a concerted effort to identify areas for energy optimization and enhance efficiency, the company leveraged its expertise in materials engineering to review product portfolios and pinpoint opportunities for immediate impact in energy conservation.
The creation of this innovation involved collaboration among cross-functional teams, including product marketing to understand market demands and define customer specifications, various engineering teams to facilitate product development and ensure process transparency, and other stakeholders to facilitate market expansion. Moreover, the innovation is deeply rooted in the organization's sense of mission and purpose, aligning with its core values and sustainability goals. Specifically, the innovation contributes to the company's 3x30 initiative, which aims to reduce semiconductor products' energy consumption by 30% by 2030. This alignment underscores the company's commitment to addressing meaningful challenges, fostering a sense of purpose, and fulfilling its responsibility to protect the environment.
Unlike other companies that manufacture semiconductor equipment and materials engineering, Applied Materials have a very diverse product line. Depending on the process of requirement, some tools use more chemicals and gases while others consume more water and electricity. In regards to the motivation behind the software product, Jay Lee said, “We focused on optimizing and providing an optimal solution for our customers.” Moreover, he added that the main question they focused on was, “How can we maximize electricity usage without intervening too much into customers’ existing product performance?”. Energy consumption varies significantly, so each product is unique in its own way. Through their detailed analysis, they have identified that their largest consumption area is electricity. Thus, they have decided to prioritize maximizing electricity savings. As technology innovators and a materials engineering group, Applied Materials are continuously seeking innovative methods. They want to provide their customers with more efficient energy consumption solutions, while also keeping environmental protection in mind. This was heavily expressed by Jay Lee as he said, “We want to provide the best possible solutions for our customers, while also protecting the environment at the same time.” That is what inspires Jay Lee and Applied Materials. Nowadays, many companies have a strong responsibility in trying to protect the environment. At Applied Materials, the company fosters an ethical culture and mindset. At the end of the day, just as Jay Lee explained it, “We are all trying to do the right thing in looking out for our planet.
The short-term effects of this innovation have already been demonstrated by Applied Materials testing, which has found an immediate energy savings of 13%. This showcases very clearly the efficiency of this system to reduce energy consumption. This is a big positive for the business, reducing their scope 3 emissions, and it is also a large opportunity for consumers to regulate their emissions from the equipment they use. By reducing the amount of power used, Applied Materials is also decreasing emissions associated with this energy usage. Not only does this result in fewer emissions, but it can also reduce energy costs for businesses as well, creating an even greater incentive to adopt this software.
Since this innovation is still in its earlier stages of creation, there has been no chance to observe the long-term effects. However, we can safely assume that as this software and idea become more widespread, it will greatly reduce energy consumption across the board. Much of the emissions from the semiconductor industry comes from the energy use of the semiconductor in its end stage. Focusing on this power draw allows us to reduce personal emissions. As quoted by Jay Lee, “We anticipate tremendous growth in the sustainability product market with increasing customer demands.” This idea is seemingly the first of many when it comes to innovation shifting how we create flourishing systems. As research and development continue on this idea, and others, we can expect to see strong innovation quickly.
Because Applied Materials prioritized innovating in sustainability by developing products to optimize energy consumption, there has been a slew of benefits for the company. Since Applied Materials has yet to bring this product fully to market, the entire range of benefits hasn’t yet been captured; however, we can already see emerging benefits for the company. First, as Applied Materials continues with the release of this product, they will be opening themselves up to new markets. This will add a customer base in software, giving a new stream of profit for the company while also tapping into the sustainability market. By combining their work of cutting-edge innovation with sustainability-focused creation, Applied Materials is moving towards a new standard of business innovation where there is a strong focus on the triple bottom line. This will position Applied Materials for sustainable growth and profits. Another benefit is that this innovation is directly related to one of the business's core values, its dedication to reducing semiconductor energy consumption by 30% by 2030. This innovation closely follows the core values of the business, creating inspiration and impact within the business's workers, knowing that their values and the business's values are aligned. Jay Lee says “This alignment reflects our commitment to solving meaningful problems that can create a sense of purpose while also protecting the planet.” These innovations create a sense of purpose in the work being done and can create immeasurable benefits in employee happiness and overall culture. The difficulty of implementing sustainability measurements within semiconductor production cannot be understated, as it is a very complex production process; however, we can expect to see more businesses moving towards businesses with a focus on sustainability. These benefits are just the beginning of the potential positives that Applied Materials may see from this incredibly innovative sustainability idea.
This innovation's benefit on society and the environment is the most clear-cut benefit that we can see when it comes to this product. By reducing the energy consumed by semiconductors, Applied Materials is able to lower greenhouse gas emissions directly caused by this energy consumption. Not only are greenhouse gas emissions reduced, but this will also lead to a decrease in air pollution and costs for the consumer. When asked about the impact of this innovation on the environment, Lee had this to say, “Our software product represents a small but significant step toward promoting a sustainable future by reducing energy consumption and GHG emissions, helping to mitigate climate change.” Another comment that Mr. Lee made during our interview is that different industries all have different areas in which they can innovate sustainability, and since electricity was much of the cause of emissions for Applied Materials, that is where they decided to focus. By cutting down emissions in the areas where companies see the most emissions, we can see a huge positive change in the environment. For end-users, not only will this software cause fewer emissions from their computers, but it will also create operational savings as well. This benefit is twofold, allowing customers who may not have such a large focus on sustainability to also look towards adopting this software, creating a net positive for the environment while also saving individuals money. This societal impact may seem small now, but as companies continue to innovate in the field of power consumption, we will see larger strides in the innovations being made. The benefits of this innovation are already clear, and as time goes on, they will only grow larger, cementing Applied Materials as a sustainable business leader.
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Jay Lee, Engineer
Applied Materials is an American company headquartered in Santa Clara, California. It offers a variety of equipment, services, and software for the semiconductor manufacturing industry. Its expertise and unwavering commitment to research, development, and innovation have allowed it to become the second-largest supplier of semiconductor equipment in the world. Thanks to applied materials consumers can benefit from technology including smartphones, computers, televisions, and solar products.