Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chip manufacturer, outlined plans to expand its use of renewable energy and reduce carbon emissions, as it targets adoption of more green manufacturing practices.

The company set the target of increasing the use of renewable energy at its fabrication sites to 25 per cent by 2030 and 100 per cent for its other facilities.

It lined up purchasing agreements for renewable energy totalling 1.2 gigawatts in July, noting the deals are expected to eliminate 2.189 million metric tonnes of carbon emissions per year.

The announcement comes a day after it signed a 20-year deal to buy the full power produced by a third offshore wind farm in Taiwan planned by energy company Orsted. The Denmark-based company said the agreement is the largest-ever renewable energy contract.

Following power liberalisation in 2017, TSMC said it started expanding its use of renewable energy and in May participated in Taiwan’s first group of renewable energy purchases with 12 other companies.

TSMC SVP of IT, materials management and risk management J.K. Lin said the company was a driver of green manufacturing, committed to sustainable development.

“We hope to drive the industry towards low-carbon, environmentally friendly action, while supporting the United Nations’ Sustainable Development Goals to do our utmost to develop a sustainable semiconductor supply chain.”