Guest Column | September 17, 2025

Circularity And Risk Management In Semiconductor Manufacturing

By Slava Libman

Technology cyber electronic-GettyImages-936374664

The Growing Challenge Of Water Risk

A whopping 73% of senior decision-makers in semiconductor companies cite natural resources, including water, among environmental factors posing the greatest risk to their business. This finding from the 2023 Semiconductor Supply Chain Risk Report highlights the urgent need for proactive water management strategies.

Water circularity is no longer optional, it’s crucial to industrial operations. However, conventional approaches introduce significant constraints. Semiconductor fabs discharge wastewater, which undergoes treatment before being either released or reclaimed for reuse. This reclaimed water may serve non-process users like cooling towers and air-abatement systems or even re-enter production via ultrapure water (UPW) recycling to reduce incoming water demand.

But what happens when things go wrong?

If the UPW system cannot handle variations in reclaimed water quality, costly treatment measures or quality failures ensue. If the wastewater system fails to handle contamination loads, companies face violations, capacity limitations, and risk operational expenses. If cooling towers receive off-spec water, reliability issues and increased chemical consumption become major concerns.

The Limitations Of Conventional Circularity Management

Traditional water management practices struggle to mitigate these risks. The core challenges include:

  • Data Silos and Lack of Integration: Water management often relies on fragmented spreadsheets and disconnected tools, limiting the ability to conduct comprehensive risk analysis.
  • Limited Visualization: Water management systems in semiconductor facilities are complex, and teams are often limited by not seeing the big picture.
  • Disjointed Data Storage: Information resides in multiple systems, from Excel models to SCADA systems, without the unified framework to synthesize insights.

These inefficiencies result in suboptimal solutions, as companies address individual issues as they are identified rather than proactively managing circularity holistically. The outcome? Persistent high costs, rising risks of interruption to production (ITP), and missed sustainability targets.

A Sustainable Solution: Active Water Management

Leading companies are tackling this challenge by actively managing circularity with robust tools and expert support. Active Water Management is an integrated approach that empowers semiconductor manufacturers to maintain an up-to-date understanding of water flows and chemistry, make informed decisions based on clearly organized data, keep operations within a controlled risk zone, and reduce costs while improving reliability and increasing reuse rates.

It’s important to ensure a seamless transition by offloading the burden of managing water with outdated tools, establishing a company-wide water management system, optimizing operations by identifying and addressing inefficiencies, and providing ongoing support to maintain long-term benefits.

The Three Pillars Of Water Circularity

  1. Holistic Visualization: Centralizing all relevant data provides a clear view of gaps, risks, and opportunities, enabling informed decision-making.
  2. Standardized Processes: Implementing best practices ensures consistent, high-performance outcomes across all facilities, fostering benchmarking and continuous improvement.
  3. Expert Resources: Expertise built into the software and provided by water specialists keeps clients ahead of evolving challenges.

This approach empowers facility teams to confidently manage water risks while maintaining control of solution strategies.

The Cost Of Inaction And The Need For Change

Without a comprehensive and active water management strategy, costs and risks escalate over time. With water circularity management, you can reduce operating expenses, ensure reliable operations, drive sustainability and compliance, and make data-driven decisions with confidence.

Slava Libman is the CEO and co-founder of FTD solutions, where he leads efforts to help industrial facilities — especially in the semiconductor, food and beverage, and oil and gas sectors — achieve predictable performance through Active Water Management. With decades of expertise in environmental engineering and facility operations, he is recognized for advancing strategies that transform water from a risk into a source of resilience and efficiency. Learn more about Slava’s work and FTD solutions’ approach at www.ftdsolutions.net.