On the Way to a Circular Economy in Electronics – a Comprehensive Overview
6 May 2025
In view of growing electronic waste, the establishment of a circular economy in the electronics industry appears increasingly necessary. In this article Ole Gerkensmeyer, Vice President EMEA Sales at Nexperia, describes the requirements of such a circular economy, explains which strategies have already been developed, and how this can be turned into a business case.
By Ole Gerkensmeyer, Vice President EMEA Sales Nexperia
The circular economy in electronics aims to address the growing challenge of e-waste by promoting sustainable practices such as recycling, refurbishing, and reusing electronic sub-systems »on highest level« or second life. This article explores key concepts like the EU Green Deal, urban mining, and product carbon footprint. Furthermore, it highlights the urgent need for a circular economy due to the increasing e-waste stream, calling out the »throw-away design« mentality in the electronics industry. It reviews current implementation of R-strategies and delves into the aspects of recycling, refurbishing, and high-level reuse. Key considerations for high-level reuse include component aging, degradation tracking, and software licensing. The business case for a circular economy in electronics is compelling, offering cost savings and new revenue opportunities. The article concludes with a positive outlook on the future potential of circular practices in electronics industry.
1. Key Definitions
EU Green Deal: The European Green Deal is a set of policy initiatives by the European Commission aimed at making the EU climate-neutral by 2050. This initiative is not only one of the major drivers for the transformation of the car industry to eMobility, but it includes measures to promote a circular economy, reduce waste, and enhance resource efficiency. In particular, the EU Green Deal has identified electronic waste or »E-Waste« as the fastest growing industrial waste stream and recommends electronics to move to circular economy to address this.
Urban Mining: Urban mining refers to the process of reclaiming raw materials from spent products, buildings, and waste. This practice helps to reduce the need for virgin materials and minimises environmental impact. With regards to electronics, the term is used to describe the process of extracting valuable metals from electronic sub-systems: gold, copper, aluminium, zinc, …
Product Carbon Footprint (PCF): PCF measures the total greenhouse gas emissions associated with a product throughout its lifecycle, from raw material extraction to disposal. While many companies become aware and want to measure PCF, the circularity aspect of electronics is not yet considered.
WEEE (Waste Electrical and Electronic Equipment): WEEE refers to discarded electrical and electronic devices. The WEEE Directive in the EU aims to reduce e-waste through recycling and recovery targets. It requires producers to take back and recycle old equipment.
E-Waste: E-waste encompasses discarded electronic appliances such as mobile phones, computers, and televisions. It is one of the fastest-growing waste streams globally. The »E-Waste Monitor 2024« of the United Nations organisation UNTAR is sharing some good insights into details including current recycling rates, share of toxic materials.
R-Strategies: These are strategies within the circular economy framework aimed at reducing waste and maximising resource efficiency. They include Refuse, Rethink, Reduce, Reuse, Repair, Refurbish, Remanufacture, Repurpose, Recycle, Recover – depending on the school of thought, you see 7-R, 8-R,…15-R strategies being promoted.
2. The Mandate for Circular Economy from the Growing E-Waste Stream
The rapid growth of e-waste presents a significant environmental challenge. In 2022, the world generated approximately 62 million tonnes of e-waste, with projections indicating this could rise to 82 million tonnes by 2030. The current global recycling rate is at 22 percent, with a slightly declining projection. Particularly concerning is, that toxic elements include items like mercury (58,000 kg in 2022) and flame-retarded plastics with bromium. This surge is driven by increased consumption of electronic devices, shorter product lifecycles, and limited recycling infrastructure. The environmental and health risks associated with improper e-waste disposal underscore the urgent need for a circular economy in electronics.
3. Status of Implemented R-Strategies
Several R-strategies are already being implemented in the electronics sector:
Recycling: Many countries have established e-waste recycling programs to recover valuable materials from discarded electronics. However, it’s important to note that recycling electronics often involves the functional destruction of components like expensive and fully operational semiconductors and passive components. The key performance indicators (KPIs) are more about urban mining than any functional value addition. For example, recycling programs in Europe focus on extracting precious metals from e-waste, which can then be reused in new products.
Refurbishing: Refurbishing involves repairing and upgrading used electronics to restore them to a functional state. This process extends the lifespan of devices and reduces the demand for new products. Companies across Europe are refurbishing used electronics, including cell phones, laptops, white goods, and video consoles, to extend their lifespan and reduce waste. For instance, refurbished smartphones are becoming increasingly popular as they offer a cost-effective alternative to new devices while reducing e-waste.
Reusing on the Highest Level/Second Life: This strategy focuses on maintaining the highest possible value of electronic products by reusing them in their original form. It involves rigorous testing and certification to ensure that reused products meet quality and safety standards. Initiatives to promote the reuse of electronic devices are gaining traction. However, to date, the only true second-life applications for electronics are in the area of electric vehicle (EV) battery reuse in different energy storage applications. For example, used EV batteries are being repurposed for home energy storage systems, providing a sustainable solution for managing energy demand.
By implementing these R-strategies, the electronics sector can significantly reduce its environmental impact and contribute to a more sustainable future. The transition to a circular economy in electronics not only addresses the growing e-waste problem but also offers economic benefits by creating new revenue streams and reducing material costs.
“The transition to a circular economy in electro nics is not just an environmental imperative but also a significant business opportunity. By embracing circular principles companies can future-proof their operations, meet regulatory requirements, and contribute to a more sus tainable world.”
4. Requirements for Reuse on the Highest Level
When reusing electronics at the highest level, several critical factors must be considered to ensure functionality, safety, and user satisfaction. Here’s a comprehensive overview:
Cost of Extraction: Extracting components like semiconductors or passive elements can be challenging, as they often cannot be desoldered without damage. To address this, methods such as electronic card »blades« and backplane designs can be adopted from the server/cloud industry, where these concepts have been successfully implemented for decades. For example, modular server designs allow for easy replacement and reuse of components, minimising waste and reducing costs.
Component Aging: It is essential to assess the condition of components to ensure they remain functional and safe. This involves rigorous testing to detect any signs of wear and tear. For instance, capacitors and resistors may degrade over time, affecting the performance of the device. Regular inspections and replacements can help maintain the integrity of reused electronics.
Degradation Tracking Over Lifetime: Monitoring the performance of components over time is crucial to predict potential failures. Implementing systems that track degradation can provide valuable insights into the lifespan of components. For example, using sensors to monitor temperature and voltage fluctuations can help identify stress points and prevent premature failures.
Stressor Elements: Evaluating the impact of stressor elements such as voltage, temperature, current, and switching on the longevity of components is vital. These factors can significantly affect the durability and reliability of electronics. For instance, high temperatures can accelerate the aging process of semiconductors, while frequent switching can lead to wear and tear on mechanical parts. Understanding these stressors allows for better design and maintenance practices.
Software and Licensing: Ensuring the reuse of software and licenses is another critical aspect. This may involve transferring licenses or leveraging AI to create relevant software elements for second-life applications. For example, a refurbished computer may need updated software to meet current user requirements. Ensuring compatibility and functionality of software is essential for successful reuse.
User Expectations: Meeting user expectations for performance and reliability is key to encouraging the adoption of reused products. Users expect refurbished electronics to perform similarly to new ones. This requires thorough testing, quality assurance, and clear communication about capabilities and limitations of reused devices. For instance, a refurbished smartphone should offer comparable battery life, processing speed, and overall functionality to a new model.
5. Developing the Business Case for Circular Economy in Electronics
The circular economy in electronics offers a compelling business case, driven by cost savings, economic benefits, and evolving business competencies. Here’s a detailed exploration:
Cost Comparison: High-end electronic devices, such as HVAC systems, often come with substantial upfront costs. However, by utilising first-life components, the bill of materials (BOM) costs can be reduced to near zero. This makes refurbished devices not only more affordable but also increasingly competitive compared to low-cost products. For instance, a refurbished HVAC system can offer the same performance as a new one at a fraction of the cost, making it an attractive option for budget-conscious consumers and businesses.
BOM Cost: The BOM for new electronic devices includes expenses related to raw materials, manufacturing, and assembly. By reusing components, these costs can be significantly reduced. For example, a smartphone manufacturer can save on the cost of sourcing new materials by reusing parts from older models. This not only lowers production costs but also reduces the environmental impact associated with mining and processing raw materials.
Economic Benefits: Circular business models generate value by reducing material costs, minimising waste, and creating new revenue streams from refurbished products. Companies like Dell and HP have successfully implemented circular practices by refurbishing and reselling used electronics. This approach not only helps in reducing e-waste but also opens up new markets for affordable, high-quality refurbished products.
Business Competencies: Traditionally companies have operated on a linear business model, where electronics design is based on a “throw-away” mentality without applying R-strategies. As companies begin to recognise the value of their still-functioning electronic subsystems, we will see the emergence of circular business models. These models may involve partnerships or the establishment of new business lines that capitalise on first-life, still-functional electronics. For example, a company specialising in consumer electronics might partner with a recycling firm to refurbish and resell used devices, thereby extending their lifecycle and reducing waste.
6. Conclusion and Future Outlook
The circular economy in electronics offers a sustainable solution to the growing e-waste problem. By implementing R-strategies businesses can reduce their environmental impact, lower costs, and create new economic opportunities. As technology advances and consumer awareness increases, the adoption of circular practices in the electronics industry is likely to grow, paving the way for a more sustainable future.
The transition to a circular economy in electronics is not just an environmental imperative but also a significant business opportunity. By embracing circular principles companies can future-proof their operations, meet regulatory requirements, and contribute to a more sustainable world.
Sustainability in Power Electronics for Automotive Applications
The automotive industry, as one of the primary contributors to CO2 emissions, plays a crucial role in the pursuit of climate targets. This transformation involves not only the shift towards emission-free drive technologies such as electric mobility but also the increasing focus on the concept of the circular economy. The circular economy emphasises sustainable use and recycling of resources to minimise the environmental footprint of the industry throughout the entire life cycle of a vehicle. Due to the high proportion of strategic and critical raw materials in power electronics, this part of the vehicle should also be examined with regard to circular economy strategies.
In this context, legal requirements for circularity are becoming increasingly stringent. In addition to existing legal requirements, new regulations are on the horizon. The draft of the End-of-Life Vehicles Regulation, for instance, mandates quotas for the use of recyclates in newly produced vehicles, such as 25 percent plastic, and sets new requirements for the removal of vehicle components. It is currently planned that electric drives and printed circuit boards larger than 10 cm² must be removed before a vehicle is disposed of.
In addition to legal requirements and basic corporate principles, the Volkswagen Group pursues specific sustainability principles anchored in its »regenerate+« sustainability strategy. A noteworthy element of this strategy is the concept of the circular economy and the closed loop. Focusing on these models ensures efficient resource use, waste minimisation, and the reuse or recycling of materials and components after a product’s use. In practice, this means that the Volkswagen Group not only optimises the life cycle of its vehicles but also promotes the use of recycled materials and the implementation of recycling processes throughout the production process.
To align corporate objectives with legal requirements, it is necessary to examine which R-strategies are feasible for which components and how they can be implemented. Feasibility must be considered from both financial and environmental perspectives. The implementation possibilities for effective strategies, however, heavily depend on individual component design. Our publication at the PCIM conference presents a structured methodology for developing circularity strategies and their exemplary application to power electronics, highlighting the results and improvement potentials of the current power electronics design. eg
Anneke Schleusener
PhD student Circular Economy Technologies
Volkswagen
From Linear to Circular: Reinventing Power Electronics for a Sustainable Future
As the world races to meet climate goals, the power electronics industry stands at a pivotal crossroads. Long driven by a linear “take-make-dispose” model, the sector must now transition to the circular economy—a system that designs out waste, keeps materials in use, and regenerates natural systems.
In power electronics, where devices are rich in rare earths and rapidly evolving, this shift is not only environmentally essential but strategically advantageous. By embracing circular design, manufacturers can extend product lifecycles through modularity, upgradeability, and easier disassembly—transforming e-waste into resource reservoirs. This approach reduces the strain on raw material supply chains, many of which are vulnerable to geopolitical risks and price volatility.
The opportunities are compelling. Remanufacturing and recycling not only reduce environmental impact but also cut costs and increase resilience. By reclaiming critical materials like copper, silver, and rare earth elements, companies can protect themselves from raw material shortages while reducing their carbon footprint. Moreover, circularity opens the door to new business models, including product-as-a-service offerings like leasing or subscription-based systems, which incentivize long-term product durability and smarter design.
Technology plays a key enabling role. IoT-connected devices can track usage patterns and performance in real time, enabling predictive maintenance and smarter end-of-life decisions. AI-driven analytics and automated recycling systems further optimize resource recovery and reduce manual labor. Additive manufacturing offers new ways to design components with minimal waste and maximum efficiency.
However, the transition isn’t without hurdles. Technical complexities, limited consumer awareness, and fragmented policy frameworks slow down adoption. Regulatory support, such as eco-design directives and extended producer responsibility (EPR), is critical. So too is education—empowering users to return, reuse, and rethink how they consume electronics.
The case for a circular economy in power electronics is clear. It’s not just a moral imperative—it’s a path to innovation, cost savings, and long-term competitiveness. As demand for energy-efficient solutions grows, the time to act is now.
Let’s transform how we power the future—not just smarter, but cleaner and more circular.
Regina Roos
Senior Business Development Lead Europe and Australia
Typhoon HIL GmbH
Effective identifying of emission hotspots in PCB production
The environmental impact of electronic components has become a significant concern, with printed circuit boards (PCBs) identified as contributors to the overall ecological footprint of electronic systems. In response, our team at AT&S lead by Christof Wernbacher has developed a Life Cycle Assessment (LCA) tool to evaluate the environmental impact of our manufactured products. This tool is currently utilized to assess the carbon footprint of products across various applications.
For instance, the methodology has been applied to a 16-layer PCB with embedded components to evaluate its environmental impact in power applications. The study considered factors such as materials, energy consumption, and waste management. In addition to identifying consumed energy and core materials as major contributors to the overall Product Carbon Footprint (PCF), we determined high-impact processes that further increase the PCF. The results indicate that surface finishes, such as Electroless Nickel Immersion Gold (ENIG), significantly elevate the PCF, with gold usage being a notable source of emissions. Copper galvanization and hot pressing, both energy-intensive processes, also substantially contribute to the overall PCF.
Conversely, recycling systems and wastewater treatments can significantly reduce the overall emissions of such products. To pioneer the reduction of our products’ carbon footprint, AT&S has implemented a wastewater treatment system that facilitates copper recycling. Our studies demonstrate that these recycling processes notably contribute to reducing the overall emissions of our products.
Based on the study of power PCBs, we propose three major strategies for reducing the PCF of PCBs and substrates:
Miniaturization: Utilizing technologies that drive miniaturization, such as embedded die technology, reduces the layer count and, accordingly, footprint.
Avoidance of high-impact materials: Substituting high-impact processes and materials, like gold for surface finishing, can significantly lower the PCF.
Application of green energy: Employing renewable energy sources and investing in recycling processes will effectively reduce the overall carbon footprint of our products.
In summary, AT&S’ LCA tool for assessing the PCF is effective in identifying emission hotspots in PCB production. It can be used to significantly reduce the PCF by targeting various areas, including energy mix, material usage, and production processes.
Dr. Hannes Voraberger
Vice President Corp. R&D
AT&S
Hitachi Energy – Purpose drive expertise
As a global technology leader advancing a sustainable energy future for all, our innovative technologies and solutions help increase access to affordable, reliable, and sustainable energy vital for society to prosper and progress. As consumer needs and lifestyles continue to evolve, our technologies help make the energy system more sustainable, flexible, and secure.
Electricity will be the backbone of the entire energy system, and with our customers and partners, we are co-creating solutions that are helping accelerate the energy transition. Together with our customers and partners, we are creating a collective impact contributing to a sustainable energy future. To enable the deployment of technology at the scale and speed required, we adapt and adopt new business models and new ways of thinking and working to collaborate with stakeholders to advance solutions, Circular Economy, e.g. the reuse of power semiconductors used in electric cars in e-mobility and then reuse in battery energy storage applications, is an integral part of these solutions.
Customers rely on our technologies and services to help them integrate huge volumes of renewable energy into the world’s grids and manage increasing levels of complexity. With a combined heritage of over 250 years, we anticipate emerging needs to ensure that customers succeed. As we drive towards a carbon-neutral future, our teams are continuously innovating and working to deliver economic, environmental, and social value.
Tobias Keller
Vice President, Head of Global Product Management, Portfolio & Marketing
