ESH Task Force Presentation to Joint Steering Committee Shoumian Chen ICRD Shanghai / China Feb 21-23, 2011

Update for Joint Steering Committee ESH Task Force Update for Joint Steering Committee The ESH Task Force convened from February 21-23 with representation from all regional Semiconductor Industry Associations Working Groups’ status reports PFOS Energy Saving and Quantitative Targets PFC Legislative updates ISESH meeting rotation schedule New Chemical Working Group RoHS harmonization statement A G E N D

Voluntary Agreement Status PFOS Working Group Voluntary Agreement Status The WSC PFOS Working Group agrees that the terms of the agreement have been met and the risk to humans and the environment has been minimized by our activity The associations have aggressively worked to replace and reduce use and continue to do so The associations have eliminated non-critical uses A significant amount of R&D has been performed to create alternative chemicals and control emissions Most waste is being destroyed through high temperature incineration and the small residual amount entering the environment has decreased to extremely low levels 3

Voluntary Agreement Status PFOS Working Group Voluntary Agreement Status Our data shows Amount of use for critical applications has decreased by 82% from 2005 Amount released to the environment has decreased by 99% to 7 kg/yr from 2005 Additionally All known manufacturers of raw materials used to create PFOS for SC use have ceased production Suppliers of critical lithography chemicals have identified alternatives for most uses The work performed by the Working Group informed the UN Stockholm Convention process to ensure SC exemptions exist until critical replacements have been proven and implemented 4

PFOS Working Group PFOS Trends 5

PFOA and Related Compounds Regulatory Activity Canada: Prohibited manufacture/import of 4 fluorotelomers that could degrade into PFOA; issued plan to ensure additional substances prohibited Norway: Ban PFOA, salts and ethers in finished consumer product at 0.0001% - Jan 2013 (proposed SC exemption until 2015) California: Law regulating products Japan: Chemical Substances Control Law monitoring import, export and manufacture MN, NJ, WV: Drinking water health limits European Union: PFOA likely to be regulated within the next 2-years Australia: Cautionary alerts urging only essential use United States: Voluntary EPA 2010/15 Stewardship Program established; TSCA polymer exemption eliminated, EPA announces intent to regulate Perfluorinated Chemicals more aggressively International – potential global regulation for PFOA in the next 5-years Through Feb 22, 2011 6 6

PFOS Working Group Summary 2010 Release of Information will include a description of the success of the Working Group The PFOS WG activities will be successfully concluded after the Release of Information in May 2011 PFOA Is used by all regions and will likely be globally regulated in 2-5 years Technical and critical use is still being investigated by Sept DC meeting PFAS USEPA is demonstrating some resistance to approvals of our alternatives C2 and C4 SIA in US will meet with USEPA TSCA to determine their thinking by Sept DC meeting 7

Energy Working Group Outcome Revised Policy Paper sent to SEMI Keep timeline defined in Kobe Started discussion with SEMI Agreed to expectation value for waste in Kobe meeting Will continue to collect the 2010 data for energy, water, and waste by March 2011 Will continue to report to JSTC an aggregate Normalized Net Feed Water, but no target will be applied

Energy Working Group Outcome Policy Paper on energy reduction Wait for SEMI feedback beginning March on Policy Paper and possibly include feedback Option to escalate Policy Paper to SEMI Board of Directors in March If no agreement with SEMI is achieved, revise and publish Policy Paper as WSC in May 2011 Reduction program Review technical trends in order to provide reduction target proposal to TF September 2011 by Energy WG Core Team, possibly including SEMI Approve target in February 2012 Officially communicate WSC reduction target at WSC May 2012 Share information on communication strategy for semiconductor industry as enabler of resource efficiency in September 2011 9

WSC Electricity Data: 2001- 2009 Energy Working Group WSC Electricity Data: 2001- 2009 - weighted average - Normalized: Kilowatt-Hours per cm² Silicon Subsequent process and facility improvement & invest Technical frame-conditions (e.g. 300mm) Downturn end 2008, CY2009 WSC Weighted Average Total Energy Usage 40.43 TWHr 1.49 KWHr/cm2 2001 2002 2003 2004 2005 2006 2007 2008 2009 SIA in China data included beginning 2004

PFC Working Group Status Update Objective Reviewed 2010 data and progress on 2010 goal Project update All associations were able to provide data for 2010 (there are some small remaining gaps to close before final) All associations met goal of at least 10% below baseline levels by 2010 Total WSC emissions are estimated to be 23% below baseline levels Including SIA in China, without adding to baseline, WSC is still 5% below baseline levels 11

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PFC Working Group Status Update Objective Finalize 2020 WSC goal Project update Goal ratified by all associations Implementation of “Best Practices” by all companies in WSC Inclusion of “Rest of World” fabs These actions project to result in a 30% NER reduction from 2010-2020 18

PFC Working Group Status Update Objective Develop Best Practices document Project Update Best Practices document developed by PFC WG Reports on current state of PFC reduction technology Documents expectation that new facilities apply best practices Agreement by PFC WG to continue to share updates on Best Practices and update document at least every 2 years 19

PFC Working Group External Reporting Include status on the implementation of Best Practices Provide aggregate results of absolute PFC emissions (MMTCE) trend Provide aggregate results of NER trend (kgCO2/cm2) and relative target – 30% below 2010 NER value 20

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Draft Communication and Justification Document PFC Working Group Draft Communication and Justification Document JSTC requested document on justification for changing to NER for 2020 PFC WG included justification as part of draft communication on 2010 goal status and 2020 agreement This is just a draft and not expected to be finalized until April 22

PFC Working Group Next Steps Finalize 2010 data and verify analysis for 2020 goal by March 2011 Finalize text of WSC voluntary agreement for 2020 by April 2011 Distribute draft for WSC PFC WG by beginning of March 2011 Finalize WSC communication document on achievements and justification for 2020 program by April 23 23

Legislative Updates Semiconductor Industry Association in United States US Climate Change Developments EPA TSCA Reform Update CA “Green Chemistry” Conflict Mineral legislation Semiconductor Industry Association in Korea National GHG info Management System Emissions Management Target Act Semiconductor Industry Association in Japan Tokyo City Cap-and-Trade Program Emissions Trading System Technical instructions for the treatment of PFOS contained wastes 24

Legislative Updates Semiconductor Industry Association in Chinese Taipei The Optoelectronics Industry Discharge Water Standards Semiconductor Industry Association in Europe RoHS Final REACH - ‘Substances in Articles’ F Gas Review Semiconductor Industry Association in China Interim Rule for Environmental Emergency Plan Management Measures on Environmental Management of New Chemical Substances

ISESH Rotation Proposal ESH TF/JSTC JSTC/WSC ESH TF/ JSTC/GAMS ISESH 2001 US Japan US* 2002 Europe 2003 Korea 2004 2005 2006 2007 Chinese Taipei 2008 Japan＊ 2009 China Postponed 2010 Chinese Taipei＊ 2011 2012 2013 Postpone 2014 2015 2016 2017 2018   US → Postpone？

New Chemical Working Group ESH TF has decided to begin a new Chemical WG Develop WSC policy positions to address developing legislation, regulations, international agreements, science, and public perceptions that have the potential to affect the availability and use of chemicals and materials by the global semiconductor industry. Promote policy positions focusing on global harmonization of chemicals regulations, based on principles of environmental stewardship, open trade, and economic feasibility. Each association will designate a representative by April 2011 First meeting in September 2011 in ESH TF