In the past, used electronics often ended up in landfills or incinerators. But it was discovered the hazardous chemicals they contain could leak into the land and contaminate surrounding communities. Their incineration poses an equally dangerous threat to the environment, because it could release toxic fumes and heavy metals such as lead, cadmium and mercury into the air.
The latest trend is to export the problem to developing countries, where workers often dissemble discarded electronics without any protective gear. It is estimated that over 80 percent of the world's e-waste is shipped to Asia or Africa for disposal, with mainland China being the most favored destination.
The environment and health problems resulting from the hazardous contents of electronics are forcing countries around the world to take a hard look at their e-waste management practices. The Waste Electrical and Electronic Equipment as well as the Restriction of Hazardous Substances directives now set strict guidelines for manufacturers to design products with recycling in mind.
Although discarded electronics contain substances that can be harmful to the environment, they are also a good source of valuable materials if properly dismantled. For example, a printed circuit board contains platinum and palladium, while a mobile phone is made of 19 percent copper and 8 percent iron. With the appropriate technologies and equipment, these precious metals can all be extracted and turned into profits.
Not only is e-waste management a way to save the planet, it is good business, too. According to a 2005 study by BCC Research, a leading publisher of market research reports based in the United States, the market value of this kind of industry totaled US$11 billion in 2004, and is expected to grow at an annual rate of 8.3 percent to US$17.1 billion in 2009. So far, however, it is still an industry waiting to be developed on a large scale.
As the receiving end of 70 percent of the world's total e-waste, mainland China has begun to take action. On Jan. 15, Xerox Fuji's recycling plant began operation in Suzhou Industrial Park, the first such facility established by a foreign company in the country. India, another major importer of both electronic goods and waste, is also targeting this emerging industry, and some ambitious entrepreneurs even envision India as a global outsourcing hub for e-waste recovery.
To recover precious metals and reusable plastics from discarded electronics, a company needs to invest in advanced technologies. It also has to implement an economy of scale to achieve cost efficiency as well as maintain a close relationship with electronic equipment producers who now have to abide by e-waste directives.
In this regard, Taiwan stands a chance to take the lead in this new playing field, according to a recent article in locally published Business Weekly by Bill Wiseman, a partner at McKinsey & Co. Inc. Taiwan. Being the world's production center of electronic goods, the island could try to build on its existing manufacturing capabilities to develop the necessary technical know-how. In the process of salvaging e-waste, Taiwan's manufacturers could also learn to develop materials and design products that are easier to recycle, thus bringing down their total cost.
Given the long and close working relationship between Taiwan and the world's leading technology companies, the country has a huge client base that is readily available.
The biggest advantage, though, is Taiwanese firms' presence and successful experience in mainland China, which holds the greatest potential of becoming the world's electronic waste recycling center. Super Dragon Technology and Jiin Yeeh Ding Enterprise Corp., the only two listed companies in Taiwan engaging in this kind of industry, have both established recycling facilities in the Chinese mainland.
According to Kenny Lin, spokesperson for Super Dragon Technology, the biggest challenge, though, is to secure a steady supply of used electronics for their plant in Suzhou, Jiangsu Province, despite the huge amount of waste being generated every day in the country. "We have to keep a close relationship with the local government, which has power over our clients. Otherwise, we may not be able to fill our capacity," said Lin. Since laws and regulations are still inadequate in mainland China, many local manufacturers are still shipping e-waste to scrap yards in the coastal regions for incineration.
E-waste management has become a pressing issue too important to be ignored, because the stakes are high and the potential is immense. Though Taiwan has yet to control some of the advanced technologies involved in the recycling of electronic waste, the ability to create synergies and achieve cost efficiency through the integration of supply chains has always been the country's strength. It is only natural for Taiwan to play a vital role in this industry, and it is imperative for the nation as a whole to commit more effort and resources to sustain its economy and protect its environment.
Write to Meg Chang at meg.chang@mail.gio.gov.tw