SUSTAINABILITY  /  TECH & INNOVATION

By FedEx | April 24, 2025

Global semiconductor player Micron collaborated with FedEx in China to develop a more sustainable, efficient semiconductor supply chain.

• Semiconductor supply chains move phenomenal volumes of manufacturing parts and chips annually to meet the overwhelming demand of the industry.
• With a growing global footprint, the semiconductor industry has a major environmental impact, with negative implications for the health of the planet.
• In response, companies like Micron are collaborating with FedEx to make semiconductor supply chains greener and more sustainable.

The global semiconductor industry is growing, driven by the seemingly endless demand for the supply and production of chips that power almost every technology we use. As a result, global players are starting to evaluate the sustainability of semiconductor logistics. 

The sector consumes significant resources during manufacturing, packaging, and delivery, resulting in a notable impact on the environment. Building greener supply chains is now a growing concern – and poses a real challenge for semiconductor companies.

Making long-term growth more sustainable – a collaboration between FedEx and Micron

Explosive growth in the semiconductor market is fueled by emerging technologies like 5G and artificial intelligence. These advancements are accelerating global digital transformation at an unprecedented pace, significantly boosting the market demand for semiconductors. 

China’s semiconductor market reached USD 185.4 billion in 2024, marking a 19.4% year-on-year increase. In this landscape, efficient and reliable logistics services are crucial for corporate growth.

Founded in 1978, Micron Technology, Inc. is a global leader in the semiconductor industry, specializing in memory and storage solutions. It provides a wide range of high-performance products to customers and partners in the automotive, smart edge, mobile and client sectors. 

Micron has also invested in sustainability initiatives aimed at reducing its environmental impact. Key areas of focus include lowering greenhouse gas emissions, improving energy efficiency, reducing waste, and promoting sustainable procurement. 

In addition, Micron collaborates with partners across the supply chain to systematically reduce Scope 3 emissions, promoting green transformation throughout the entire value chain.

The company has formed a long-term strategic collaboration with FedEx in supply chain management. Through tailored digital solutions and sustainable logistics strategies, we help Micron develop smarter, more efficient green supply chains. We’ve made efforts to align our sustainability goals, balancing environmental protection with economic advantages.

Why semiconductor sustainability matters

China has evolved into one of Micron's largest markets over the past two decades. Micron's Xi'an plant, a global center of excellence for packaging, testing, and module manufacturing, has ranked highest for import and export volumes in Shaanxi Province for 18 consecutive years. 

Given the precision and high value of semiconductor materials, equipment, and products, logistics demand strict adherence to stability, safety, and operational standards. However, unpredictable disruptions from natural disasters, extreme weather and climate change can increase the risk of logistics challenges. 

In response to this risk, Micron taps FedEx’s expertise in handling high-value and sensitive goods. We offer anti-shock packaging and refrigerated and cold shipping solutions to maintain strict humidity and temperature controls, protecting sensitive items from vibration and impact.

Jason Yang, the vice president of Micron and general manager of the Xi'an plant, sees FedEx as an indispensable strategic provider, with “professional services and tailored solutions that improve our operational efficiency and ensure timely and secure delivery of our products.”

Together, we’ve collaborated on innovative, data-driven solutions that integrate logistics data with business needs. Our goal goes beyond enhancing logistics processes. We also aim to improve every customer experience as a result. By injecting intelligent, digital momentum into Micron’s supply chain management, we can support its ongoing global growth.

Innovation fuels green transformation and more sustainable supply chains

The semiconductor industry relies on a complex, dispersed supply chain with specialized segments and varied downstream applications. For example, Micron partners with over 8,000 suppliers in more than 30 countries. Seamless data integration among these segments is essential. 

Micron considers technology a key driver of sustainability. Together, we’re exploring digital solutions for an agile, low-carbon logistics infrastructure.

One breakthrough is Micron’s adoption of FedEx Sustainability Insights to quantify environmental impacts during transportation. Created by FedEx Dataworks, the innovative cloud-based data engine uses near-real-time FedEx network data to estimate CO2e emissions. Data displayed in the tool includes mode of transport and service type. 

Micron can view emissions data for individual tracking numbers as well as aggregate historical data for their account. It’s also easy to generate reports to better understand and manage carbon footprints for international shipments.

Using this tool, the Micron operations team makes data-driven decisions for more sustainable shipping plans. This has the additional advantage of contributing to China's low-carbon economy – and to a greener semiconductor supply chain worldwide.

FedEx’s ongoing work with Micron has provided valuable practical insights for the digitally driven low-carbon transformation of the supply chain. In the future, we plan to collaborate with more industry players to actively explore innovative paths for sustainable development. 

It’s all part of how we integrate sustainability into every detail of our operations, with the ultimate goal of achieving global carbon-neutral operations by 2040.