Coordinating remanufacturing efforts for sustainable chemical supply in semiconductor supply chains

In this study, we explore the value of chemical remanufacturing and reuse within a semiconductor supply chain, where quality efforts are directed towards remanufacturing chemical waste generated during fabrication processes, highlighting the strategic importance of remanufacturing in meeting supply chain interests. We develop and compare two remanufacturing strategies based on real-world practices: producing high-quality remanufactured chemicals for internal reuse (Strategy I) versus producing lower-quality remanufactured chemicals for sale in a secondary market (Strategy II). We find Strategy I advantageous when raw materials are costly or when, with less costly raw materials, carbon emission reduction is emphasized. We demonstrate that effective coordination and negotiation enable decentralized supply chains to achieve maximum performance while aligning individual members' strategic preferences with the supply chain's. In situations favoring Strategy I, we can disentangle economic and environmental impacts of raw materials on optimal quantities. Interestingly, when the former outweighs the latter, quality efforts in remanufacturing decrease as carbon emission reduction is increasingly emphasized, and reduced raw material consumption can lead to higher carbon emissions. These insights help guide semiconductor manufacturers and chemical suppliers in planning long-term collaboration for efficiency and carbon emission abatement in chemical remanufacturing and reuse.