Sustainable Manufacturing in the Consumer Electronics Sector
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1 Sustainable Manufacturing in the Consumer Electronics Sector John Harland Design for Environment Manager Intel Corp 1
2 Intel Snapshot Intel is the world's leading innovator in advanced silicon technology, with more than 35 years of leadership in computing and communications. Year founded: 1968 Number of employees: 86,000 Revenues: $38 Billion (2007) Products and services: over 450 Stock symbol: INTC Worldwide offices and facilities: 294 According to BusinessWeek & Interbrand Intel is the world s 5th most valuable brand The Intel audio signature is heard somewhere in the world every 40 seconds 2
3 3
4 Our Environmental Performance 4 Sustainable Operations Products & Technologies Industry Initiatives
5 ECO Computing Scope Technology as a solution enabler IT as part of the problem IT as part of the solution Our Footprint USE World Footprint 5
6 Manufacturing Approach to Sustainability Understand the business model Analyze impacts Integrate sustainability throughout the business model Accountability Continuous improvement 6
7 Intel Manufacturing Model 2 years 2 years Gen3 Gen 2 Gen 1 Research & Pathfinding Development Manufacturing 2-year Tick Tock Manufacturing process Chip architecture Long development, short manufacturing cycles Copy exactly Dow Jones Sustainability Index, Technology Super-Sector Leader 8 years Manuf Manuf Process Develop Manuf Copy exactly Manuf 7
8 The Next 5 Years: Our Environmental Goals Reduce absolute global-warming gas footprint by 20% by 2012 from 2007 levels. Reduce energy consumption per chip 1 5% per year from 2007 through Achieve engineering and design milestones to ensure that Intel products keep the energy-efficiency lead in the market for our next two product generations. Reduce water use per chip 1 by 2012 from 2007 levels. Reduce generation of chemical waste per chip 1 by 10% by 2012 from 2007 levels. Recycle 80% of chemical and solid waste generated per year. 1 Assuming a typical chip size of approximately 1cm2. (Chips vary in size depending on the specific product.) 8
9 Continuous Improvement Model MANUFACTURE Transfer Environmentally Sound Manufacturing Processes Data Feedback Environmental Planning At Manufacturing Sites DEVELOPMENT ENVIRONMENTAL ANALYSIS Own environmental solutions Replace, reduce, reuse, recycle abate Set Targets for New Process Development 9
10 Minimizing Product Footprint 100% Lead Free Technology 60% Smaller Packaging for New Market Segments Copper Bump 22x22 mm Tin-Silver-Copper Solder Copper Pad 35x35mm 13x14 mm All 45nm CPUs Will be Halogen Free in
11 Accountability Transfer Environmentally Sound Manufacturing Processes Environmental Planning At Manufacturing Sites Develop indicators Set corporate goals Performance to goals Measure Audit Report to management Public reporting Set Targets for New Process Development PARAMETER Greenhouse Gases Water Use Chemical & Solid Waste Continuous Improvement Product Ecology MEASUREMENT/ TARGET (By 2010) Reduce greenhouse gas emissions per production unit by 30% (2004 Baseline) Reduce normalized water usage below 2005 levels Recycle > 70% Complete > 200 projects in our operations, products and communities that benefit the environment Introduce halogen-free materials in new CPU, chipset and flash memory products 2007 RESULTS Absolute/ Normalized COMMENT Back on track as factory loadings increased in Q4. A CS/PTD team has been formed; 1st team deliverable (new water goal) was approved by C&NRSCS in January. Chemical recycle now includes fuel blending 152 Projects completed in 2007 Released halogen-free flash products. Pulled in CPU/chipset plans. 11
12 Summary Sustainability depends on business model Intel rapid changes get it right the first time Manufacturing, product and use of product Accountability 12
13 Questions? 13
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