Sludge, a solid waste recovered from wastewater of semiconductor-industries composes of agglomerates of nano-particles like SiO(2) and CaF(2). This sludge deflocculates in acidic and alkaline aqueous solutions into nano-particles smaller than 100 nm. Thus, this sludge is potentially hazardous to water resources when improperly dumped. It can cause considerable air-pollution when fed into rotary-kilns as a raw material for cement production. In this study, dried and pulverized sludge was used to replace 5-20 wt.% Portland cement in cement mortar. The compressive strength of the modified mortar was higher than that of plain cement mortar after curing for 3 days and more. In particular, the strength of mortar with 10 wt.% substitution improved by 25-35% after curing for 7-90 days. TCLP studies reveal no detectable release of heavy metals. Preliminary studies showed that nano-particles deflocculated from the sludge, when cured for up to 3 days retain in the modified mortar their nano-size, which become large-sized hydration compounds that contribute to the final mortar strength. Semiconductor sludge can thus be utilized as a useful resource to replace portion of cement in cement mortar, thereby avoiding their potential hazard on the environment.