Circular innovation enabling more sustainable semiconductor material use in ecosystems

Semiconductor production is growing rapidly, intensifying environmental pressures and supply risks related to critical raw materials (CRMs). This paper examines how circular innovation can enable more sustainable semiconductor material use by adopting an ecosystem perspective beyond individual firms and linear value chains. As a qualitative case study of Finnish semiconductor actors, we conducted 17 semi-structured interviews across eight value-chain companies and other ecosystem organisations. The analysis applies the R-strategy framework and develops a three-layer view of circular innovation: (i) resource efficiency within the fabrication value chain, (ii) material circularity and substitution solutions networks, and (iii) open cross-industry circular innovation networks. Findings highlight the need of several innovation and business networks with different actors and challenges related to coordination beyond them. We discuss implications for firms and policymakers seeking to strengthen sustainability and supply resilience through collaborative ecosystem design.