Final

Meeting of The 42nd JSTC

Minutes

February 16-17, 2012

Hsinchu, Taiwan

February 16

Before the JSTC meeting, the chair of the Semiconductor Industry Association in Chinese Taipei, serving as JSTC chair, hosted a breakfast meeting for the Chairs, association heads and counsel during which they reviewed the agenda and key points for discussion.

The JSTC Chair from the Semiconductor Industry Association in Chinese Taipei opened the 42nd meeting of the JSTC by welcoming all delegations to Hsinchu. He expressed his expectations for a productive meeting.

Counsel for the Semiconductor Industry Association in the Chinese Taipei reviewed the antitrust guidelines, which were circulated to each person attending the meeting in hard copy and electronically.

Next, the delegation members from each semiconductor industry association introduced themselves. The chair then reviewed the JSTC agenda, noting that per the decision of the prior JSTC, there would be no presentations summarizing the prior meetings, although written summaries of prior meetings are listed on the file server.

1. Cooperative Approaches in Protecting the Global Environment

The Semiconductor Industry Association in Chinese Taipei, as chair of the ESH TF, gave a presentation to the JSTC regarding the work of the ESH TF since the last JSTC meeting.

PFC Working Group - The Chair discussed the PFC WG’s preliminary 2011 PFC data collection efforts, the reduction in absolute and normalized emissions based on preliminary data, plans to review final data, and an update to the best practice implementation document under the new voluntary agreement program to 2020. This draft level data indicates that the trend of both absolute and normalized emissions was downward. He noted that the complete 2011 dataset and best practice implementation document will be finalized by the group in the coming weeks.

The JSTC thanked the WG for this effort. Some associations noted that it was important to have public information relating to the PFC voluntary program communicated every year as outlined in the voluntary agreement

ACTIONS

- ESH TF to finalize 2011 data collection for PFC emissions before May 2012 WSC Meeting.

- ESH TF to agree upon Best Practices document before May 2012 WSC meeting.

Chemical Working Group -- The Chair then discussed the Chemical WG’s continuing work on a number of issues of potential concern, including California green chemicals regulation; nanomaterials regulation, SAICM activities (the UN Strategic Approach to International Chemical Management program), EU REACH activity, PFOA regulations, and India RoHS. He also noted the Working Group’s work on preparing relevant policy papers on several issues, including a paper entitled “Essential Considerations for the Regulation of Chemicals Used in Semiconductor Manufacturing and Products”, which has been completed, and another on nanomaterials, which is pending.

The JSTC voiced support for presenting the Chemical Policy Paper for WSC review and approval in May after the paper is refined further.

ACTIONS

- ESH TF to continue to review all relevant regulations including the California Green Chemistry regulations when they are issued.

- ESH TF to refine the policy paper with the objective that it should provide governments/authorities with suitable information on essential considerations for the regulation of chemicals used in semiconductor manufacturing and products, and circulate the final paper by the May JSTC meeting to achieve JSTC consensus.

Energy/Quantitative Targets Working Group – The chair discussed this WG’s activities, including preparation work to come to a normalized and absolute energy reduction forecast and target for 2010-2020, and noted the submissions by all associations of “business as usual” (BAU) energy forecasted data. The chair explained that the members had agreed on an 8% reduction below the BAU forecast. He noted the JSTC action item from Arlington meeting was that the ESH TF would try to agree on a final energy target.

The chair noted that cooperation with SEMI is important and that pursuant to the JSTC action item the WG had made efforts to draft a policy paper on climate change and energy conservation in cooperation with SEMI, but that these efforts were not successful. ESH TF is continuing to work on the paper on its own as an external expression of WSC’s past and future efforts to improve energy efficiency.

The ESH TF is responding to the GAMS request on greenhouse gases and product regulations, which it will take on as an ongoing action item. As part of this process the best practice document and PFC emission data will be released as agreed under the voluntary agreement.

Next, the ESH TF chair expressed the concern of the ESH TF that the scheduling of the February meeting does not allow for adequate time to collect and analyze PFC, Energy and QT data in the new year. The ESH TF suggested moving the first ESH and JSTC meetings of the year to the end of March.

The JSTC commended the energy WG for its hard work and productivity. Some associations urged the WG to refine the forecast and goals on energy reduction, to consider setting a more nuanced target that could be explained more easily and more credibly to governments and authorities. Associations also asked the TF to plan for revisions to the forecast over time so that one number is not used for ten years, and to clarify details and deliverables.

Some associations expressed concerns about the feasibility of changing the regular February meeting schedule. The JSTC agreed to keep the meetings in February for the time being, but also agreed to add the proposal to the agenda of the WSC 2.0 TF for further consideration at its next meeting in February of 2013.

Finally, the ESH TF Chair reported to the JSTC that the ESH TF had reviewed its operations and had decided that the task force and its working groups should continue in operation, and that there should be no change in the current schedule of two meetings per year, aside from the proposal to move the February meeting to March.

ACTIONS

- ESH TF to consider setting a more refined energy target that could be explained more easily and more credibly to governments and authorities with the target of completing this task by the September meeting

- ESH TF to continue to fulfill the GAMS requests on Greenhouse gases and product regulation with the target of reporting progress on this task by the September meeting

- ESH TF to provide to the JSTC a draft insert to the WSC Joint Statement by the May JSTC meeting.

2. Conflict Minerals

The Semiconductor Industry Association in the United States presented an update on conflict minerals legislation, noting that the SEC had not yet issued the much anticipated regulations on this topic, but that these were expected as early as this month. . The presentation also described the Conflict Free Smelter (CFS) program and called on semiconductor companies to support the CFS program.

ACTION

- SIA in the US will supply information to other associations if the SEC regulations are promulgated.

3. IPTF Report to JSTC

The Semiconductor Industry Association in Korea, chair of the IPTF, reported on the IPTF meeting.

After summarizing the IP regional update reports by the TF member associations, the IPTF discussed approaches to improving patent quality, mindful of the GAMS Chair summary statement that “The GAMS welcomes the continued efforts of the WSC to identify areas for improvement of patent quality around the world. The GAMS also supports the WSC’s plans to correspond regularly with the PTOs of GAMS members on patent quality improvement, and also to explore ways to coordinate patent quality efforts with WIPO.”

The IPTF considered the following suggestions for improving patent quality: (i) adoption of best metrics for collection of data from PTOs; (ii) improvement of utility model patents;(iii) improvement of PCT searches; (iv) adding a new survey topic on the number of patents invalidated each year; (v) seeking WIPO assistance in collecting patent quality metrics; (vi) enhanced prior art searches; (vii) harmonization of internal procedures for evaluation ; (viii) encouragement of the SPLT; and (ix) enhancement PCT procedure.

One immediate objective of the IPTF will be to agree on a proposed letter from the WSC to the WIPO calling on WIPO to collect and retain data on patent examination by PTOs around the world, and suggesting two templates for this purpose. The IPTF Chair noted that the chair had proposed holding a special IPTF meeting in May 2012 to finalize the patent quality and other proposals before the WSC meeting, and to formulate a strategy for cooperating with the WIPO.

The JSTC discussed the presentation and a question was raised as to why a special meeting in May was warranted. Other associations supported a special May meeting, and one association requested the IPTF chair to circulate a specific proposed agenda for the special meeting. The JSTC Chair urged the parties to try to reach agreement on a special meeting offline, and to report back on the issue at the Friday session.

The IPTF chair also provided an overview of discussions at the TF on the status and progress of anticounterfeiting efforts in the GAMS regions, including a review of multilateral actions proposed by GAMS, and an update on enforcement actions and customs cooperation in some jurisdictions.

The JSTC noted that at its next meeting the IPTF will consider visiting WIPO in Geneva before or after the September Berlin meeting, and also that associations will provide information to the TF about their customs recordation procedures.

During the JSTC meeting, updates were provided on sentencing in a recent US anticounterfeiting enforcement action in the United States, and also on a request for all associations to share information about how to record trademarks with a view toward better anticounterfeiting enforcement.

ACTIONS

- IPTF to present proposed language for the Joint Statement by the May JSTC meeting.

- IPTF to present draft letter from WSC to WIPO on patent quality by the May JSTC.

- IPTF to prepare anticounterfeiting update for the WSC; Semiconductor Industry Association in Europe to prepare initial draft which, after TF confirmation, will be presented to JSTC at May 2012 meeting for approval to present to WSC.

4. Market Report

The Market Task Force Chair reported on the preparation of the market report, including options for data collection. He also reported on the preparation of a special report on cloud computing and the semiconductor industry, and invited other associations to provide suggestions on the topic.

The Market TF Chair reported to the JSTC that the Task Force had reviewed its operations and had decided that the task force should continue in operation, and that there should be no change in the frequency of meetings.

ACTIONS

- Market TF and JSTC participants are encouraged to submit to the Market TF Chair any comments on the special report or any other topics for consideration within two weeks following the JSTC meeting.

- Market TF chair to make a proposal via email within two weeks of JSTC meeting in regards to collecting R&D data by region.

- Associations are encouraged to submit proposals to the Market TF Chair within four weeks following the JSTC meeting regarding the gathering of capacity data submissions in the absence of traditional avenues.

- TF to prepare proposed language for the Joint Statement by the May JSTC meeting.

5. Regional Stimulus

The Semiconductor Industry Association in the United States, chair of the regional stimulus task force, presented on this subject to the JSTC. It noted the GAMS Chair’s Summary language that “GAMS requests that the WSC endeavor to achieve a better understanding on key concepts and questions in this area. The GAMS notes that in the 2009 Chair’s Summary on Regional Stimulus, it specifically agreed to explore the possibility of the utilization of communication mechanisms to achieve a favorable environment for the international semiconductor market and would appreciate further WSC input in this regard.”

The TF Chair then summarized the proposal of the Semiconductor Industry Association in the United States for a mechanism at the GAMS for timely notification of bailouts by relevant governments and the definition of key terms relevant to this proposal. The TF Chair also summarized views and concerns of other associations presented at the TF meeting in Hsinchu. The chair then reviewed the proposed action items.

During the subsequent JSTC discussion on this proposal, other associations expressed concern as to whether the action items were realistic. One association expressed doubts that the bail-out topic was appropriate for the industry to discuss and proposed to concentrate on positive stimulus measures. The TF chair responded that he understood these concerns but that the TF would continue to try to find common ground on a response to the GAMS.

The TF Chair reported that the group reviewed its operations and had decided that the task force should continue in operation, and that there should be no change in the frequency of meetings.

ACTIONS

- Continue discussion of this issue at the May JSTC meeting.

- Seek to achieve a better understanding on key concepts and questions in this area as per the GAMS request.

- Seek to achieve a WSC position on communication mechanisms this year to be able to provide to GAMS.