A review of circular economy barriers and a demand,supply,price and cost-based market modelling in semiconductor manufacturing facilities (fabs): Towards scalable reuse and recycling of unique fab construction materials

Abstract

The global economy relies heavily on virgin materials, yet efforts to scale up reuse and recycle have yet to reach their full potential. Semiconductor manufacturing facilities (fabs), a rapidly expanding and highly resource-intensive sector, depend on high-quality virgin materials due to strict and diverse requirements. Despite this growth, little research has examined how circular economy (CE) strategies – particularly reuse and recycling – can be effectively applied across the fab lifecycle. Implementing these strategies requires both technical feasibility and economic viability, which are uniquely complex in fabs. This study addresses this gap by extending a market-based framework that models the demand, supply, price and cost (DSPC) dynamics between virgin and reused/recycled construction materials within fabs. Using a knowledge- and model-based approach, the study examines fab-specific requirements – such as intellectual property restrictions, customization, strict design codes and contamination risks. It then reviews technical, economic, regulatory and social barriers to reuse and recycling, translating these constraints into DSPC relationships. To test the framework, it is initially applied to non-fab materials such as steel and high-density polyethylene (HDPE). Results show that technical limitations significantly shrink recycled HDPE’s market size, whereas recycled steel remains economically viable. This framework lays the foundation for future research aimed at adapting the approach to fab-specific materials. The broader implication is that understanding DSPC interactions enables fab stakeholders to evaluate when and how reuse and recycling can be realistically and economically adopted – ultimately reducing virgin resource use, minimizing waste and enabling scalable CE adoption in the sector.