1 SIA/MOU Partners Discussion Points For CARB Workshop January 10, 2008

2 Acknowledgement  SIA and its MOU Partners would like to acknowledge the openness of the CARB Climate Change Program in the development of an approach to addressing emissions from the California semiconductor industry  Discussions with CARB staff have been beneficial to both sides and have resulted in a better understanding of emissions from the current California semiconductor industry  We support the CARB proposed survey as a way to get a better handle on non-signatory emissions

3 Critical Need for PFCs in Semiconductor Manufacturing  PFCs find widespread application in semiconductor manufacturing for two main uses Etching Chamber cleaning  Etching entails the precision removal of a variety of materials during the wafer fabrication process using plasmas generated from PFC source materials  Prior to the advent of plasma processing, conventional mineral acids were used which presented safety, containment and disposal problems  Chamber cleaning is the process by which excess silicon materials, deposited primarily during the deposition of polysilicon, are removed from vacuum chambers using either a PFC plasma directly or by generating reactive species in a remote plasma system and introducing them into the chamber

4 Typical Source Materials for Etch and Chamber Clean  Etch gases CF 4 CHF 3 SF 6 C 4 F 8  Chamber Clean gases C 2 F 6 C 3 F 8 NF 3

5 Acknowledgement of Semiconductor Industry Role in Addressing Climate Change  Recognition that although amounts of PFC Gases used is small, the GWP 100 values are high  Most of the US semiconductor industry (80-90%) entered into a voluntary agreement with the US EPA Evaluate if it was possible to reduce PFC emissions Established annual reporting process for PFC emissions  When the World Semiconductor Council (WSC) was formed, the voluntary program was expanded to include Japan, Europe, Korea, Taiwan and, ultimately, China

6 Acknowledgement of Semiconductor Industry Role in Addressing Climate Change, Cont’d  In 2000, the MOU was renewed and revised to include a definitive goal- a 10% absolute reduction below the 1995 baseline by 2010  Similar goals were adopted within the WSC  Since that time, SIA members and MOU partners are reducing PFC emissions at a rate that is ahead of the rate necessary to reach the 2010 goal

7 Challenges to introducing new Chemicals into production The introduction/substitution of new chemicals is very difficult and expensive  Drop-in alternatives are generally not possible  Development of a new chemical may take upwards of ten years  Integrating a new chemical into production may also take several years since, in most cases, a new chemical must be qualified to a customer’s satisfaction  In spite of these difficulties, several chemicals have been introduced or had there respective roles redefined

8 What Has Been Accomplished to Date?  Development of an alliance with chemical suppliers, equipment suppliers and research organizations to share information on ways to reduce PFC emissions  Developing optimized processes at the equipment supplier and user locations using refined recipes, reduced amounts of chemicals and endpoint detection  Substitution of new chemicals such as NF 3, C 3 F 8, and C 4 F 8  Introduction of new processes such as Remote Plasma Clean  Development of new abatement devices such as using plasma destruction, thermal destruction and catalytic/thermal destruction

9 Key Points to Note Relative to Global Voluntary Agreement  The MOU partners and the WSC members (representing about 90% of the world’s semiconductor production) are ahead of schedule or on track to meeting their respective 2010 emission reduction goals  As a result of the European SIA having its voluntary agreement in place, the EU elected not to include the European semiconductor industry in its fluorinated gas regulation  The WSC voluntary agreements provide a buffer against ‘leakage’ since they tend to eliminate any advantage a country might otherwise have without a level climate change playing field

10 California Related Points of Note  For California semiconductor manufacturers who are/were MOU participants, emissions from 1995 – 2006 can be summarized as follows: Emissions reduced from MMTCE in 1995 to MMTCE in 2006 Percent of US total PFC emissions reduced from 7.60% in 1995 to 2.99% in 2006  Data received from 9 non-signatory companies suggested a total 2006 PFC emission of approximately 0.07 MMTCE  It is not likely that there will be a resurgence in semiconductor manufacturing in California for the following reasons: New manufacturing seems to be moving offshore Existing US manufacturing not seen as likely to expand in CA It is expensive to operate in CA CA more likely to support small, research oriented operations  The WSC Voluntary Agreements, once again, provide positive protection against leakage

11 Summary  Questions and Discussion