Driven by the rapid growth of the AI industry, the demand for semiconductors is surging, and Samsung Electronics is continuously expanding its production facilities to meet the market demand. While facility expansions in the semiconductor manufacturing process typically lead to increased emissions, Samsung Electronics is achieving tangible results by reducing its total annual GHG emissions year-over-year, even amidst this large-scale production expansion.

In particular, the Device Solutions (DS) division, which oversees the semiconductor business, has continued to decrease its total GHG emissions despite the large-scale commissioning of new production facilities. The year-over-year reduction achieved in 2025 significantly outperforms the broader corporate average emission reduction rate of 2.6% mentioned in the article, demonstrating that the company is proactively mitigating carbon emissions even amidst production growth. These absolute reduction achievements and detailed initiatives will be transparently disclosed in the upcoming Sustainability Report, scheduled to be released at the end of this June.

Furthermore, since 2024, Samsung Electronics has updated its GHG accounting standards to strictly reflect the latest emission factors and GWP values, while also incorporating NF3 (nitrogen trifluoride) emissions into its reporting. (※ The temporary year-over-year increase observed in 2024 emissions is a rebaselining effect resulting from these updated accounting standards. When evaluated under the previous criteria, the 2024 emissions also showed a clear year-over-year decline.)

To achieve net-zero emissions by 2050, Samsung Electronics is implementing advanced, data-driven strategies to reduce not only direct and indirect emissions (Scope 1 and 2) but also emissions across the entire supply chain (Scope 3).

○ Direct Emissions Reduction (Scope 1): Process Gas and Fuel Management

To directly reduce semiconductor process gases, we have comprehensively deployed the Regenerative Catalytic System (RCS), a state-of-the-art integrated process gas treatment facility. New FABs are equipped with the RCS from the commencement of operations to fundamentally suppress any increase in carbon emissions, while existing facilities are systematically expanding their treatment systems. Alongside these efforts, we are driving tangible reduction results through the development of alternative gases, reduction of process gas consumption, and waste heat recovery.

○ Indirect Emissions Reduction (Scope 2): Power Efficiency and Accelerated Renewable Energy Transition

In response to the growing electricity demand from production line expansions, we are engaged in activities to lower absolute electricity consumption by optimizing facility operational efficiency. At the same time, we are executing diversified procurement strategies, including Power Purchase Agreements (PPAs), to progressively increase our RE transition rate year after year.

○ Supply Chain Emissions Reduction (Scope 3): Synergy Across the Entire Ecosystem

Although not included in the emissions figures reported in the mentioned article, Samsung Electronics is also focussing on reducing the Scope 3 emissions. We are actively pursuing initiatives to reduce GHG emissions across our entire supply chain through close collaboration with our partners. We are building a sustainable semiconductor ecosystem by supporting our suppliers in enhancing their carbon reduction capabilities and jointly improving the power efficiency of products and manufacturing processes.