["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines the impacts of environmental, social, and governance (ESG) initiatives and eco‐efficiency and the achievement of net‐zero emissions within the Taiwanese semiconductor manufacturing company (TSMC). This study sources its data from 37 firms within TSMC's value chain for years 2020–2023 from the Refinitiv and Taiwan Economic Journal databases and employs an inverse data envelopment analysis (DEA) approach to allocate greenhouse gas (GHG) emission targets and develop a chance‐constrained DEA model to address the high uncertainty in the industry. Results indicate significant differences in eco‐efficiency across firms in different regions, with the environmental dimension exhibiting a statistically significant negative effect on eco‐efficiency performance. While the social and governance dimensions are positively correlated with eco‐efficiency, this relationship is not statistically significant. This study introduces innovative methodological approaches, including the inverse DEA method for optimal GHG reduction and the chance‐constrained DEA model, to handle the high level of uncertainty in the industry. The findings provide valuable insights for policymakers, operational managers, and industries prioritizing ESG initiatives, and the significant regional differences in eco‐efficiency highlight the need for tailored, region‐specific strategies to improve eco‐efficiency across the semiconductor industry. By offering novel contributions through its methodology and empirical findings, this study enhances the present understanding of how ESG initiatives influence eco‐efficiency and supports the development of effective policies for achieving net‐zero emissions in high‐tech industries.\n"]