Summary ESH TF Meeting

Kobe, Japan

September13-15 2010

Portopia InternationalConference

The WSC ESH TF hosted by SIA in Japan met from Monday September13th to Wednesday September15th . In attendance were the following ESH TF members and guests:

Semiconductor Industry Association in China

Shoumian Chen, Delegation Chair

Shanghai IC R&D Center

Cai Na

SMIC

Mary Liu

SMIC

Yan Shaohua

China Resources Microelectronics

Zheng Chunji

Hynix-Numonyx Semiconductor

Huang Zizhao

Hynix-Numonyx Semiconductor

Hei Ting

Shanghai Huahong-NEC Electronics

Semiconductor Industry Association in Chinese Taipei

Fang-Ming Hsu, Delegation Chair

TSMC

Hwai-Ren Lai

UMC

Chung-Yi Huang

TSMC

Cheng-chi Lu

Vanguard International Semiconductor

Joey Lu

Consultant

Ellen Lu

Consultant

Celia Shih

TSIA

Semiconductor Industry Association in Europe

Eric-Paul Schat, Delegation Chair

NXP Semiconductors

Christian Pophal

Infineon Technologies

Francesca Illuzzi

Numonyx

Pierre Jacquemier

STMicroelectronics

Francesca Illuzzi

Numonyx

Shane Harte

ESIA

Semiconductor Industry Association in Japan

Takayuki Ohgoshi, Delegation Chair

Renesas Electronics Corporation

Tetsuya Kitagawa

Sony Corporation

Takumi Shin-ike

Panasonic Corporation

Masanori Kobayashi

FujitsuSemiconductor

Minoru Kagino

Toshiba Corporation, Semiconductor Company

Masayuki Kikuchi

FujitsuSemiconductor

Shigenori Baba

JEITA

Akira Takamatsu

JEITA

Yukio Abe

JEITA

Yasuyuki Sakurai

JEITA

Semiconductor Industry Association in Korea

Seung Jong Ko, Delegation Chair

Hynix Semiconductor

Eun-Seok Bae

Hynix Semiconductor

Hosong Hwang,

Semiconductor Business, Samsung Electronics

Kyung-Bae Jun

Semiconductor Business, Samsung Electronics

SungHwan (Steve) Hong

KSIA

Semiconductor Industry Association in USA

Reed Content, Delegation Chair

Global Foundries

Tim Yeakley

Texas Instruments

David Harman

Intel Corporation

David Speed

IBM

Rob Sterling

Micron

Molly Gavin

Qualcomm

Thomas Diamond

SIA

Ron Remke, Guest

Sematech/ISMI

Takayuki Ohgoshi, SIA in Japan ESH TF Chair, welcomed all the delegates to Kobe and invited the delegates to introduce themselves. The Barcelona meeting summary was briefly reviewed and approved by the ESH TF. The action itemsfrom the last meeting were also noted, recognizing that the open items would be covered in detail in the various working group sessions.The antitrust guidelines forWSCmeetings were also referenced and were circulated in the JSTC meeting.

The ESH TF was a paper less meeting.

All the relevant association and legislative presentations were shared and the final ESH TF documents were available for participants to download from the secure Kobe ESH TF page on the WSC site. The relevant action items are listed in the specific WSC work group reports and also in the consolidated action items file for reference.

Summary of Individual Association and Regulatory Updates

Refer also to presentation slides

SIA in China reported theirresults for recent activities, data collections for PFCs, PFOS, water, wasteincluding waste to landfill and electricity as well as the proposal of Post-2010 program.SIA in China reported their other activities as New discharge standards for semiconductor industry, Guide for Cleaner production of electric & electric products Semiconductor components and ESH voluntary agreement. In terms of legislation SIA in China gave an update on the developments; on China RoHS,on General rules for precautionary label for chemical.

SIA in Chinese Taipei provided an update of association activity plan for 2010. This included the following elements; the IHTESH hosted by SIA in CT in Hsinchu, Energy Joint White paper Revision, Chinese Taipei’s Green Factory Standard, ESH data,PFC emissionsreduction, electricity and water.On legislation SIA in CT gave an update on Chemical Substance Nomination and Product Carbon Footprint And Labeling(Drafting).

SIA in Europe reported ontheir activities which included; a Joint Exposure scenario project with the ECHA (European Chemicals Agency),ESH data, electricity, water and waste, landfill waste, Safety indicators, Recordable case rate, severity rate,PFC emission data collection and activity on PFC emission reduction.With respect to legislation, SIA in Europe gave further updates; on EU Fluorinated Gases Regulation Review, RoHS ‘2’Revision status, RoHS Exemptions Consultation, End-of-Life Vehicles Directive review, EU Implementation of Stockholm Convention Amendment, and REACH.

SIA in Japan reported current activities including PFCs, Energy Savings, Chemical Management and Resource Management as well as ESH data. With respect to legislation, SIA in Japan reported on the amendment of the Chemical Substance Control Law on PFOS which is effective from April 2010. SIA in Japan reported on Emissions Trading System.

SIA in Korea next provided an update of their association activities.They reported on their activities in Post 2010 Target & Baseline regarding PFCs emission reduction, energy savings, quantitative targetsin SIA in Korea and in PFOS.

SIA in Korea presented a legislative update which included detailsonthe enactment of the Green Growth Strategy. SIA in K also reported on regulations regarding National GHG info system, Emissions Target Management Scheme, and Carbon Tax system.

SIA in the US provided an update of their association activities; including the Worker Health Study, the EPA GHG reporting rule, the EPA “Tailoring Rule”, and Confidential Business Information legislation and PFC emissions.SIA in US also reported on regulations regarding RoHS in China, RoHS in India,the organizational changes in SIA and hosting IHTESH 2011.SIA in the US presented a legislative update which included, an outline of the US Climate Change Developments in“Cap and Trade” Energy/Climate Legislation in the US Senate and the status of the EPA GHG Reporting Rule Status and ‘tailoring rule’, developments on Conflict Minerals legislation,reform of the Toxic Substances Control Act.

In the plenary of Kobe ESH TF-Meeting Expectation, SIA in the Chinese Taipei referenced Post-2010 Target setting proposal for discussion regarding PFC reduction, Quantitative Targets, and Joint White Paper Revision. SIA in the Chinese Taipei also mentioned High Energy Consumption Tools-EUV.

After the Plenary Session, the group broke into working groups to discuss Energy Savings, PFOS, PFCs, and Quantitative Targets. Each working group met for one full day after which a report was prepared summarizing important issues discussed and future actions agreed upon. The ESH TF group then re-formed again in plenary session and each Working Group Chair was allotted time to present the results of the working group effort to the plenary.

Working Group Reports

The Energy Savings Working Group chaired by Christian Pophal of SIA in Europe, presented their progress and results. Activity is focused on current data programme and future post 2010 energy programme alongside its communication elements and a revision of the jointpolicy paper with the supplier community.

Energy WG-Outcome

•Further improvement requires involvement of supply chain (equipment and facilities systems)

•“Direction value” (supply chain internal) agreed:

15% from 2010-2020 (total energy kwh/cm2)

•Install and execute structured process to discuss with supply chain

–Present direction value to SEMI

–Steps:

•Joint Policy Paper Proposal to be sent to SEMI in September

•Core Team to define steps until February 2011

•SEMICON Japan or Korea initial communication with SEMI & agree on next steps / future face to face meetings

•Letter to SEMI by February 2012 to be signed by WSC in May 2012

–Confirm or refine supply chain internal target

•Approval on final target & communication strategy (external) WSC Meeting May 2012 latest

The PFOS Working Group was chaired by Tim Yeakley of SIA in US.

•Fulfill the elements of the WSC/SEMI Voluntary Agreement for PFOS

•Continue to monitor important PFOS/PFOA and PFAS developments

•Develop new strategic directions for perfluoro-chemicals if necessary to address threats

Project Update/Next Steps

•Each association reviewed 2009 PFOS mass balance data

–WG agreed upon elements to be included in the release of information document as an annex to the WSC joint statement to be published in May 2011

•Discussed future action of PFOS WG

–WG agreed that much of the PFOS Voluntary Agreement work will be complete in 2011

–WG agreed to consider collecting 2010 data to show this work is nearly concluded

•SIA in China has agreed to fulfill all of the terms of the Voluntary Agreement and will share specific plans in Shanghai.

•Discussed regulatory updates on PFOA/PFAS and risk of regulations

–WG will consider PFOA/PFAS usage data collection

–Each region will determine if global PFOA regulation or ban is a concern to IC manufacturing

The PFCWG was chaired by David Harman of SIA in US.

Objectives

•Finalize on metric and target for Post-2010 PFC WSC Agreement

Project Update

•WG agreed to continue with NER goal for Post-2010 after reviewing alternative metric proposals

•WG has developed a response to the JSTC request for an NER goal justification and it will be finalized together with the numerical NER target

•WG agreed on NER target for Post-2010 goal to review with association membership. Includes “rest of world”.

•Developed best practices definition proposal for review with association member

•Evaluated scope and magnitude of “Rest of World” data

Review of Post-2010 PFC Proposal

•Propose 30% NER reduction goal from 2010 to 2020 for total WSC

–Actual contribution from associations may differ

–Target based on implementation of best practices by all regions

–Comparable effort implementing best practices required from each association to reach aggregated WSC goal

–WSC target agreed for discussion by associations

•Implement “Best Practices” proposal (see next slide)

•Includes all associations and “Rest of World” in baseline for inclusion in post-2010 agreement

•Continue to report absolute emissions through PFC WG

•Under this scenario, WSC absolute emission could increase ~24% from 2010 levels

•Basis for 30% target:

–Used SEMI, ISMI, and WSC actual production data to estimate yearly production growth rate (7%) for developing target

–Reductions based on Best Practices reducing normalized emissions to half of current WSC average

–Assumes SIA in Korea, SIA in China, and SIA in Chinese Taipei emissions increase at half of growth rate and SIA in US, SIA in Japan, and SIA in Europe emissions remain relatively flat to 2010

Best Practices Proposal

•Best Practices Definition:

–Emission reduction technology must be included for the following scenarios

•New Fab construction

•Major retrofits (expansions or fab conversions)

•Fab relocations

•Existing Fabs with new tool installations

–Best practices will be applied as a performance target or requirement to use PFC reduction technology as defined in a document to be created by PFC WG

The Quantitative Targets WG chaired by Thomas Diamond / Pierre Jacquemier. Thomas Diamond of SIA in US presented the update to the ESH TF plenary session.

Water

Objective

•Develop consensus on target item for water for post-2010

Project Update

•SIA in Japan provided a new proposal in Barcelona. “Effluent / Net Feed Water approaches 1”. The proposal was not agreed to by all associations, due to member company concerns and or required capital investment.

•Following extensive discussion by all associations it was determined that consensus cannot be reached on this issue.

•We will continue to report on to JSTC with an aggregate Normalized Net Feed Water, but no target will be applied.

Next Steps/ Actions

•Each association will continue to collect and report to QT WG Normalized Net Feed Water data so that an aggregate WSC metric can be provided to the JSTC.

Waste

Objectives

•Review and determine data to establish a new baseline and metric for waste reduction.

Project Update

•All associations provided date of 2009 landfill data.

•Following extensive effort by all associations, the reported data demonstrates an extremely small landfill number and a clear divergence in data. Therefore it was decided that landfill waste was not a viable measurement.

•Group agreed on an “expectation level” of 10% reduction in normalized total waste using 2010 as a baseline year.

Next Steps/ Actions

•Each association will collect and report their normalized total and landfill waste data.

After the work group reports the chairperson’s prepared the presentation for the JSTC meeting. This process was continued and finalized with all the ESH TF members on Wednesday. ESH TF also discussed the ISESH rotation schedule.

The host rotation of ISESH meeting through 2012 was finalized. As of 2013, the principle that no association shall be required to host no more than one international conference in the same calendar year will be strictly observed. The rotation as of 2013 will be finalized at the February 2011 Task Force Meeting.

Other Items

Chemical Working Group

SIA in the US presented aproposal to Ramp up Chemical Working Group in the plenary session on Tuesday.

–ESH TF agreed to review example chemical concern topics and consider value derived for each association. If value is agreed the TF will determine the need for formal Chemical WG activity in Shanghai.

QT WG

•QT WG to transfer data collection tasks to the Energy Saving WG, and in so doing the QT WG has finalized its tasks

China RoHS revision

–A meeting was held with Chinese Government officials on 9 September

–China is planning to implement a voluntary pre-market certification system. This system will be applied to electronics manufacturers and will establish compliance when all raw materials are certified as compliant by a testing lab on an approved list (currently only labs in China). There is concern about the release of proprietary raw material information in the process.

–Implementation details are being drafted.

–SIA in the US and China are working with officials to provide feedback.

Future Schedule

The TF next discussed the schedules for 2011 meetings which will be conducted as follows:

•February 21-23, ESH TF meeting inShanghai, China

•May16-20,Joint IHTESH/SESHASymposium in Scottsdale,Arizona, US

•September 26-28, ESH TF meeting in Arlington, VA, US

The chairperson thanked all the participants for their efforts during the meeting.