Energy Efficiency in Semiconductor Machinery and Production WSC Energy Working Group

1. Energy Efficiency in Semiconductor Machinery and ProductionWSC Energy Working Group Dr. Allen YenManaging Director (China Office) Semiconductor Industry Association Dr. Chuck FraustESH DirectorSemiconductor Industry Association

2. Agenda • World Semiconductor Council (WSC) • Objectives of Energy Saving WG • Partnership With SEMI • WSC Energy Savings Policy Statement ICT Forum

3. World Semiconductor Council (WSC) • The purposes of the WSC are to promote cooperative semiconductor industry activities, and to expand international cooperation in the semiconductor sector in order to facilitate the healthy growth of the industry from a long term global perspective • The world semiconductor industry is continuing globalization in a manner and scale beyond our historical perspective • These issues must be addressed through international cooperation • The semiconductor industry is marked by constant rapid innovation • Many of these issues are best dealt with on an international basis • WSC participation from all countries/regions with major presence and importance in the world semiconductor industry • U.S., Japanese, EU, Korean, China and Taiwan CEO’s meet annually in May • WSC reports to Governments and Authorities (GAMS) in September ICT Forum

4. WSC Core Principles • WSC Recommendations based on WSC-GAMS relationship set forth in the Agreement Establishing the World Semiconductor Council, and on the following principles: • Promotion of open competitive markets worldwide without tariff/non-tariff barriers; • Full implementation by all WTO members of their commitments; • Full protection of IP, as stated in WTO (including TRIPS Agreement); • Non-discrimination for foreign products/services in all markets, including full adherence to WTO/GATT and GATS, which provide for national treatment of goods and services; and • Promoting technological advances and sound environmental and safety practices ICT Forum

5. Objectives of WSC Energy Saving WG • Definition of Energy Metrics for WSC Data Collection • Monitoring the Energy Saving Trend • Establishing a Supplier Partnership for Energy Conservation ICT Forum

6. Metrics and Guidance Electricity Usage Data Collection • Total electricity Consumption • Front end operations, facilities, offices, Cafeteria, etc. • The Reporting Company [RC] shall refer to all test, clean-room, sub-fab, facilities and Administration areas • Reporting Metrics: • Total Electricity Usage: TWhr • Normalized Electricity: KWhr / cm² weighted ICT Forum

7. Metrics and Guidance, Cont’d • To be reported • Electricity obtained for the operation of the manufacturing site at the point(s) the electricity enters the site. Direct measurement is the preferred method of measuring the total amount of electricity used. Site electricity use may be obtained from the electricity bill, but the data should be verified with direct measurements where feasible. • Electricity including transformation losses • The electricity a cogeneration facility sends to the manufacturing site should also be reported, independent of the percentage of the RC’s ownership. • Electricity that is supplied to a non-RC (<50% RC owned) facility/operation that is entirely a manufacturing support operation. • Not to be reported • Emergency power generated on-site by fuel combustion. Regularly operating cogeneration facilities are not considered “emergency power. • Renewable energy generated on-site. ICT Forum

8. Capacity and Utilization Rates Worldwide IC Manufacturers – 1999-2007 % Utilization 8” Wafer Starts % Utilization Capacity 8” Wafer Starts per week 1,000s Source: SICAS 19% Capacity Growth between 2001 and 2005 ICT Forum 11/3/2014 CONFIDENTIAL - SIA Board Meeting - June 13, 2007 - CONFIDENTIAL 8

9. 2001 2002 2003 2004 2005 WSC Electricity Data Total: Terawatt-Hours Normalized: Kilowatt-Hours per cm² Silicon

10. The WSC and SEMI recognizes that reducing energy consumption, thereby reducing the need for energy production, resulting in corresponding environmental benefits, is strategically valuable to the semiconductor industry. Benchmarking tools and facilities systems on a global level The WSC has established an Energy Savings WG that will coordinate information exchange and cooperation between each association in the field of energy efficiency improvement to reduce energy consumption of our operations. Partnering with strategic suppliers to achieve mutual energy savings goals Evaluate cost-effective improvements to current tool-sets and establish active and meaningful energy optimization goals as part of new equipment design. Partnership with Semiconductor Equipment and Materials International (SEMI)

11. Encourage the development of standard protocols It is imperative that equipment manufacturers have a single, consistent and reliable set of objective protocols to measure the environmental impact of the industry. Support the reporting of consistent, key environmental metrics Such as, PFCs , VOCs and HAPs emissions, hazardous waste generation, equipment energy consumption, water consumption and process chemicals consumption. It is important to remain focused on measuring those metrics that are meaningful in terms of providing useful information that will result in reducing the environmental impact of the semiconductor industry. Partnership with Semiconductor Equipment and Materials International (SEMI) Cont’d

12. Partnership with Semiconductor Equipment and Materials International (SEMI) Cont’d • The semiconductor industry will help suppliers develop and support the voluntary publication of energy efficiency metrics for their tools in a manner that would allow for valid comparison by potential buyers • Support SEMI S23 – 0305 Standard (Guide for Conservation of Energy, Utilities and Materials used by Semiconductor Manufacturing Equipment) • This guide addresses concepts related to energy, utilities and materials conservation on semiconductor manufacturing equipment. • This guide addresses measurements related to energy, utilities and materials usage on semiconductor manufacturing equipment. • This guide also addresses continuous improvement planning for energy, utilities and materials usage on semiconductor manufacturing equipment in order to promote energy, utilities and materials conservation • A tool supplier should submit information on electric power, exhaust and cooling water as part of the quotation provided to the customer interested in ordering the equipment. ICT Forum

13. WSC Statement on Energy Savings Policy The WSC recognises that Energy saving continues to be a central activity in the semiconductor industry’s environmental and sustainability practices worldwide. Reducing energy consumption reduces the need for energy production, resulting in corresponding environmental benefits. The WSC is proud that as an industry Semiconductor products are the key enabler for improved energy efficiency and performance across a wide range, of end products and everyday technology applications. These applications in the fields of industrial operations, consumer electronics, office products and household appliances have contributed to improved energy efficiency for positive societal change. The industry is focussed on constantly delivering products that provide increased functionality alongside improved energy performance. Committed to improve energy efficiency through semiconductor products and operations. ICT Forum

14. WSC Energy Savings Policy Statement,Cont’d • Although semiconductor industry is not a significant contributor to emissions of global warming gases, this fact has not prevented the global industry from establishing proactive voluntary emissions reduction goals • Our globally recognized PFC emissions reduction program is a primary example of this policy. • Along with PFC emissions, our focus on reducing energy consumption in our manufacturing facilities is our primary contribution to reducing impacts on global warming. • The WSC recognises that the semiconductor industry has a small proportionate share of energy consumption in comparison to other global industries. The industry is nevertheless very focussed on continually innovating to achieve further energy reductions where possible • Through the WSC and our member associations, partnerships with our suppliers, international research consortia, and the International Semiconductor Environmental Safety and Health conference, the global industry develops, shares, and implements best practice energy performances in our facilities. • In accordance with the WSC’s guiding principles for Environment, Safety and Health we are focussed on energy reduction through; efficient use, efficient cooling systems, process and facility optimization, seeking high-efficiency energy sources such as cogeneration, and utilizing cost effective renewable and alternative energy sources where possible and appropriate. ICT Forum