AMSTERDAM, March 17 (Reuters) - With pollution linked to

the manufacture of cutting-edge computer chips needed for AI

rising rapidly, the European Union should focus on developing

its existing lower-emission semiconductor production, think-tank

interface said on Monday.

In a review of pollution trends in the chemical-intensive

semiconductor sector published on Monday, interface found the

industry's energy use had risen 125% globally over the past

eight years both as output rose and as cutting-edge chip

production caused more emissions per chip.

"Mature" or "legacy" chips, such as those used in cars,

electric grids and industrial applications, are generally less

polluting.

"Where we could increase our competitiveness is by

strengthening EU companies that are already market-leading and

manufacturing chips needed for the green transition," Julia

Hess, who led the research, told Reuters in an e-mail.

European chipmakers such as STMicroelectronics,

Infineon and NXP are among the world's top

firms at manufacturing those kinds of chips.

The EU is considering additional measures to support its

semiconductor industry following the 2023 Chips Act, which

helped spark investments in new production but failed to meet

its primary goal of bringing cutting-edge manufacturing to

Europe.

Hess said it was not clear if Europe should continue

pursuing cutting-edge production.

"If the EU wants to double down on cutting-edge chip

production, this will significantly affect the climate and

environment (given these chips have much higher emissions and

energy consumption) per wafer," she said.

If it does, arguments in favour include Europe's better

access to water and renewable energy, she said. Most

cutting-edge chips are made in humid subtropical climates in

Asia, which adds significant energy costs to manufacturing.

Hess said having chips produced with better environmental

standards will turn out to be a long-term competitive advantage.