Taiwan Semiconductor Manufacturing Company (TSMC) moved towards a goal of reaching net-zero emissions by 2050, signing a 20-year renewable energy joint procurement contract with ARK Power.

The contract chipmaker will purchase 500GWh of solar power per year, with its suppliers to jointly subscribe for the same amount. TSMC stated the 1,000GWh per year contract is equivalent to the annual electricity consumption of 250,000 households and is expected to cut around 500,000 metric tonnes of carbon emissions per year.

TSMC stated its suppliers began signing procurement memorandum of understandings (MoUs) last month, with more than a dozen companies expected to participate.

JK Lin, SVP of IT and materials and risk management, noted TSMC “strives to co-exist and co-prosper with the environment”, adding it teamed with industry partners to “promote a sustainable low-carbon semiconductor supply chain”.

ARK Power sources solar power from parent ARK Solar Energy and provides TSMC suppliers and subsidiaries with services ranging from renewable energy adoption planning to power transfer.

TSMC stated the joint procurement contract will improve “the business matching opportunities of renewable energy developers and promote the development of the domestic” sector by stabilising prices and lowering the threshold for suppliers and subsidiaries to adopt renewable energy.