Is it possible for semiconductor companies to reduce carbon emissions through digital transformation? Evidence from China

Abstract

The semiconductor industry serves as both a driver of digital transformation (DT) and a bearer of energy preservation and lower emissions. This study focuses on the Chinese-listed semiconductor businesses from 2013 to 2021, delving into the mechanism of digital transformation on reducing carbon emissions. It validates the moderating function of supply chain configuration and reveals heterogeneity at both the regional and corporate levels. The following important results are reached by this work: Among semiconductor enterprises, firstly, digital transformation considerably reduces enterprises' carbon emission intensity, a conclusion that stands robust after robustness checks. Secondly, digital transformation achieves carbon mitigation by improving both green and traditional innovation efficiency. Thirdly, the increased centralization of supply chain configuration propels enterprises to achieve carbon reductions through digital transformation. Lastly, heterogeneity research finds that digital transformation in the eastern area inhibits the increase in carbon intensity, while the central-western and northeastern regions do not exhibit a similar trend. At the enterprise level, the carbon mitigation effect of digital transformation is especially noticeable in semiconductor enterprises that are highly labor-intensive, large in size, have high environmental uncertainty, and are state-owned. These findings provide empirical evidence for semiconductor enterprises to implement differentiated digital transformation practices and coordinate the creation of green transformation policies.