EU Legislation Update ESH TF Shanghai Feb 21 2011

Contents RoHS Final REACH - ‘Substances in Articles’ F Gas Review

RoHS – ‘Compromise Agreement’ Semiconductor Issue Commission Proposal Dec 2008 Council - EU 27 Countries Compromise agreement with EP Euro Parliament (EP) Evolving Environment Comm June 2nd Ban New Substances No. -Review only 4 substances listed in new annex lll for possible future inclusion in annex IV (ban list). -Review will use methodology of Reach authorisation system annex XV dossier -No immediate bans -No bans on GaAs, Berylium.. -Methodology of substance review will be largely coherent with Reach system. -Comm review annex IV within 3 years -No annex lll (in first review) Yes. -Proposed addition of 33 substances to annex lll review . -Focus on PVC, Brominated Flame retardants; (HBCDD (DBDPE), Medium-chain chlorinated paraffins (MCCP), Phthalates Scope of Directive Scope limited to categories and product lists in annex I & ll. Includes medical & industrial monitoring and control systems Open scope all EEE with exclusions -impact assessment on open scope within 3 years -exclusions; R&D equipment B to B, (development vehicles), LSIT, fixed installations Open scope with limited exclusions

RoHS - ‘Compromise Agreement’ Semiconductor Issue Commission Proposal Dec 2008 Council - EU 27 Countries Compromise Agreement with EP Euro Parliament Environment Comm June 2nd Nanomaterials Nothing -No ban on nanosilver and long multiwalled carbon nanotubes -No nano labelling or notification obligations -No unworkable definition of nanomaterials - Reference to “substances of very small size or internal or surface structure” for next Annex IV update -Calls on commission to consolidate definitions of nanomaterials, draft assessment of safety of nanomaterials -Proposed to add nanosilver and long multiwalled carbon nanotubes to ban list -Producers of EE should label equipment that contains nanomaterials that can lead to exposure to consumers Fab Tools Exclusion retained Exclusion retained- Workable definition of large scale stationary industrial tools Exclusion retained. Tools (large scale stationary industrial tools -LSIT) definition needs further clarity

RoHS - ‘Compromise Agreement’ Semiconductor Issue Commission Proposal Dec 2008 Council - EU 27 Countries Compromise Agreement with EP Euro Parliament Environment Comm June 2nd Exemption review process Exemptions permitted; -scientifically impracticable -availability substitutes is not ensured -socio- economic impacts -maximum 4 years per exemption -exemptions can be extended -Transparent review mechanism -Exemptions permitted when; -substitution is scientifically impracticable -reliability of substitutes is not ensured -envi, safety, health benefits/negative impacts -Availability of substitutes only relevant when looking at duration of exemptions -Up to 5 years per exemption -exemptions can be renewed - Reapply for exemption renewal 18 months before expiration. - 12-18 month ‘transition’ period if exemption renewal is rejected by the comm Exemptions -removes socio-economic criteria for exemptions. -socio-economic criteria only for duration of the exemption -exemptions Up to 4 years. Case by case approach time length. -exemptions can be extended. -18 month ‘Grace’ period for exemption as

RoHS - ‘Compromise Agreement’ – next steps Other key semiconductor issues Homogeneous material definition - workable Presumption of conformity CE marking for EEE, For materials, components and EEE; either through….tests and measurements demonstrating compliance or which have been assessed in accordance with harmonized standards Next Steps / Legal Implementation Timeline Entry into force of RoHS revision with the publication in EU Official Journal - earliest estimation end Q1 2011 (translation.. legal fine tuning etc..) Commission will prepare update of FAQ document

REACH - Substances in Articles REACH - Substances in Articles: The European Commission legal services have reconfirmed their existing interpretation of 2007 that the application of the 0.1% threshold under the obligations of REACH Articles 7(2) and 33 applies only with respect to the assembled article, and not with respect to its individual parts. Crucial issue for the semiconductor industry to prevent unworkable burdens been placed on the processes and systems ESIA had inputted industry views to the respective authorities on this issue. In a legal brief presented to the Member states meeting of February 7-9 on REACH (CARACAL), the Commission differed from the views of the 6 ‘dissenting’ member states regarding their opposition to the interpretation of the application of the 0.1% threshold at the finished article level. REACH candidate list updated on 15 December with 8 new substance – including chromium trioxide

EU ‘F- Gas’ Regulation Review EU has begun to review ‘F gas’ regulation until July 2011 ESIA participated in a commission expert group on fluorinated gases during preparations for the review of this ‘F-gas’ regulation 842/2006 ESIA given detailed feedback/ dialogue with consultants and EU 1 key element for semiconductor manufacturers is the focus on non-CO2 gases Part of EU 20-20-20 Climate Goals as set in 2007 is for reduction in EU greenhouse gas emissions of at least 20% below 1990 levels 20% of EU energy consumption to come from renewable resources 20% reduction in primary energy use compared with projected levels, to be achieved by improving energy efficiency.