Semiconductor Makers Call EPA Chemicals Proposal ‘Catastrophic’

Parts of a rule the EPA proposed for new chemicals would devastate the semiconductor industry and US efforts to onshore chip manufacturing, according to semiconductor manufacturers and industries that supply them.

The Semiconductor Industry Association and SEMI, an industry association that represents companies throughout the electronics supply chain, were among more than two dozen organizations to comment on a regulation (RIN: 2070-AK65) the Environmental Protection Agency proposed in May.

The EPA’s rule would revise many aspects of the agency’s existing new chemical regulations and tighten oversight over new per- and polyfluoroalkyl substances (PFAS).

The agency invited comment on whether it should withdraw previous authorizations to make PFAS that received 30-day rather than standard 90-day reviews. The agency offers quick reviews, such as low volume exemptions (LVEs), in particular circumstances like when a company wants to make very small amounts of a new chemical.

“Revoking these LVEs would result in the semiconductor industry being unable to manufacture devices in the US,” the Semiconductor Industry Association said. “The economic consequences of such a summary action by EPA are immeasurable.”

PFAS are “essential to the semiconductor manufacturing industry and in making semiconductors and related materials of critical importance to US economy and national defense,” it wrote.

“Revoking all PFAS LVEs would be catastrophic,” wrote SEMI. “This would result in a complete shutdown of all U.S. domestic semiconductor manufacturing operations.”

Half of Known PFAS

The semiconductor industry uses PFAS-containing materials in critical applications including making the patterns on chips that allow them to function and providing anti-reflective and other protective coatings, it said.

Chemical industry trade associations opposed the EPA’s proposal to categorically exclude PFAS and chemicals that persist, bioaccumulate, and are toxic (PBTs) from quick reviews.

“Making PFAS ineligible as a category is not supported by science,” wrote the American Fuel & Petrochemical Manufacturers (AFPM) and American Petroleum Institute.

The proposal conflicts with the Toxic Substances Control Act’s 2016 amendments that require use of the best available science, said a group of four other chemical companies in comments submitted by Bergeson & Campbell PC. The agency must base its decisions on data, not an “arbitrary, a priori conclusion.”

More than 600 PFAS—about half of the PFAS known to have been in commerce—got onto the market through LVEs, the EPA has said. Of those, 45 have been voluntarily withdrawn by companies under a stewardship program launched in 2021, the proposed rule said.

Statutory Violation Alleged

A coalition of more than two dozen environmental and consumer groups represented by Earthjustice supported the EPA’s proposals to make PFAS ineligible for quick reviews and to revoke previously granted LVEs that allowed PFAS to be produced.

It’s not possible for the EPA, within 30 days, to reach the conclusion that TSCA requires, which is that a new chemical “will not present an unreasonable risk” to the environment or human health, including to groups of people who face greater risks, Earthjustice wrote.

The link between PFAS and harm to human health and the environment is well established, wrote the Environmental Defense Fund.

“EPA is violating TSCA, its own regulations, and the Administrative Procedure Act,” if PFAS that got onto the market without the standard 90-day review continue to be manufactured, it said.