Chemical Management and Sustainable Practices

Transcription

1 Chemical Management and Sustainable Practices Donna Sadowy, Sr. Member Technical Staff Global Environmental Health and Safety June 2007

2 Presentation Overview AMD Background Advantages Sustainable Manufacturing Chemical Management Issues Drivers for Chemical Management/Sustainable Manufacturing Regulatory Stakeholders Industry Collaboration Economic Climate Protection 2

3 AMD - a leading manufacturer of microprocessors, graphics, chipsets and consumer electronics. Headquarters: Sunnyvale, California Employees: ~16,000 worldwide Sales Mix: 78% international 2006 Revenue: $5.6 billion Founded:

4 AMD Green: Pillars of Environmental Stewardship Innovative products addressing critical business need by reducing energy use and using greener chemicals (e.g. halogen-free, Pb-free) Green Building e.g., Austin Lonestar Campus on the cutting-edge of large scale environmentally-sensitive development Sustainable Manufacturing and Operations (high-productivity, low-impact) from Austin to Dresden to Penang to Suzhou to New York Global Climate Protection Commitment Lone Star Campus, Austin, TX AMD Green: Global EHS Policy AMD s environmental, health and safety culture reflects our corporate values. We strive to apply to each business decision the highest level of integrity and accountability for global environmental stewardship and for the health, safety, and well-being of our employees. From our facilities and local communities in which we operate, to the global community, which our products serve, our standards of world class performance apply globally, without compromise. 4

5 A Responsible Global Corporation Corporate Values Respect for people Integrity and responsibility Knowledge Initiative and accountability Competition Our customers success is our success Social Performance Helping people succeed Ensuring a safe and healthy workplace Partnering with our communities Environmental Performance Designing for EHS Measuring our performance Global climate protection #2 5

6 AMD Government Initiatives European Commission: Restriction of Hazardous Substances (RoHS Directive) Collaboration with China s Ministry Information Industry on China RoHS AMD Suzhou recognized in 2006 & 2007 by Suzhou Industrial Park (SIP) Administration Committee as "SIP Model Enterprise of Environmental Protection In 2006, AMD Suzhou engineers saved over 1,000 megawatt-hours of electricity by office & production area facility projects. Ongoing engagement with U.S. government agencies: OMB, Federal Energy Management Program, EPA Energy Star, DOE, Congressional Committees Collaboration with NYSERDA on manufacturing facility planning, data center roundtable planning Chow Khong Tan, AMD Suzhou managing director (third from right), accepts the SIP Model Enterprise of Environmental Protection award on AMD s behalf. 6

7 Advantages of Chemical Management/Sustainable Manufacturing Enhanced employee relations, performance Corporate reputation, enhanced credibility with stakeholders including regulators Profit from sustainable design, e.g: profits ~$1 2+ million/fab (Rocky Mountain Institute) Improved yield, uptime, throughput, flexibility New facilities: lower construction time, cost, complexity Profitable environmental and climate protection 7

8 Chemical Management AMD supports research SRC/Sematech Engineering Research Center for Environmentally Benign Semiconductor Manufacturing 8

9 SRC Chemical Research 9

10 Regulatory Drivers - EU Restriction of Hazardous Substances Directive EU RoHS Directive (2002/95/EC) restricts use of Pb, Cd, Cr 6, Hg, PBB, PBDE in electronic products, 2006 implementation date. A Lead Free part/product must not contain a concentration of Lead above 1000 ppm for each homogeneous material within the part/product. 10

11 Regulatory Compliance -EU RoHS Lead-Free Starting ~2001, evaluated ability to go lead-free by 2006 implementation date Pursued an exemption - Pb alloy used to ensure reliability standards Provided early, data-driven exemption request: addressed product reliability & EHS impacts Active lead-free R&D program for all applications Solder for C4 Bumps -Exempted by the EU Solder for C4 Bump Flip-Chip Attach -Exempted by the EU Die Passive Organic Substrate Solder for OPGA Pins -Exempted by the EU Pins Current Lead Free Materials: Intermetallic Formation Solder for Attachment of Passives -Converted to Pb-free solder (July 2005) Current Lead Free Materials: Solder Climb on Microprocessor Pins Weaker Solder Strength 11

12 Business Drivers - Halogen Free Strategy Key customers are planning halogen-free products in timeframe Halogen Free is defined as complying with the restriction of brominated and chlorinated compounds per IEC :2003. No other halogens (fluorine, iodine, or astatine) are restricted. A Halogen Free part/product must not contain concentrations of Bromine or Chlorine above the threshold level for each homogeneous material within the part/product. 12

13 AMD Halogen Free Roadmap CPU/ ECSD Development Qual. Prod'n GPU Development Qual. Prod'n Graphics Card/ PIB Development Qual. Prod'n Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Production of Halogen-free product applies to new products only and is dependent upon customer and market demand. 13

14 Stakeholder Drivers - Sustainable Manufacturing Highly efficient energy use (kwh/manufacturing index) at AMD Dresden manufacturing fab Modern cogeneration power plants supply 100 percent of the energy required by Fab 30 and 36 avoided more than 95,000 MTCE of greenhouse gas emissions in the last 5 years when compared to the emissions that would have occurred if a conventional energy supply had been selected MTCE M TCE Emissions of comparable conventional Actual M TCE emissions of co generatio n Injury/Illness rate reduction Support partner schools Support volunteer fire brigade Community meetings Comparison of Global Warming Gas Emissions of the Dresden Energy Center (1) and of a Comparable Conventional Energy Supply Solution 14

15 Industry Collaboration Electronics Industry Code of Conduct (EICC) 15

16 Economic Drivers Manufacturing Operations (Saving 1-2% of Total Costs Matters) Saved energy costs, like any saved overhead, drop straight to the bottom line Basic energy efficiency retrofits can often add one percentage point to total net profit If new chip sales earn (say) 10% profit, then saving $1 worth of energy increases profits by the same as $10 of new sales harder and less certain (especially nowadays) than saving energy! Source: Rocky Mountain Institute 16

17 Sustainable Manufacturing Identify Improvement Opportunities 17

18 Cut CO 2 /chip by at a profit! 0.44 from 200- to 300-mm shift if same yield 0.3 from state-of-the-art fab efficiency* 0.4 from onsite trigeneration (net of reformer loss) 0.94 from fuel-cell elimination of UPS losses 0.5 fueling with gas, not coal (less carbon/j) 0.5 switching energy supply to 50% renewables *One fab reduced electricity consumption by 0.33, reducing a MW fab to 5 MW. Source: Rocky Mountain Institute 18

19 Environmental Drivers - Climate Protection Program 19

20 Developing a Climate Program Identify key contributors to climate impact - Products - Energy Use - Manufacturing emissions (PFCs) -2 nd Tier Impacts commute, travel, etc. Determine Scope (e.g. company owned buildings only, 2 nd Tier impacts) Identify Sources of Data (e.g. utility bills, electric, fuel emission factors US EPA Climate Leaders site) Establish Goals Develop Communications Plan 20

21 AMD Climate Protection Goals Normalized Greenhouse gas emissions will be reduced 40 percent by year end [rel baseline; expressed as Carbon Equivalents (CE)/Manufacturing Index (MI)] Absolute PFC emissions will be reduced 50 percent by [rel baseline; expressed as CE] Normalized Energy use will be reduced 30 percent by year end [rel baseline; expressed as kwh/mi] 21

22 AMD s Global Climate Protection Plan Annual Global Climate Protection Plans since 2001, based on WRI and WBCSD standard The plan outlines our commitment, goals and progress: 30% Reduction in energy use by 2007 relative to 2002 baseline normalized to production 40% Reduction in carbonequivalent GHG emissions by 2007 relative to 2002 baseline normalized to production 50% absolute reduction in PFC (perfluorocompound) emissions by 2010 relative to 1995 baseline year Commitment to Renewable Energy 22

23 Sustainable Manufacturing Adding Business Value Through EHS Sustainable eco-efficient manufacturing combines high productivity and low environmental impact Rapidly bringing advanced technologies to highyield maximizes the financial return on our capital investments Reducing use of energy and water, while lowering emissions of greenhouse gases minimizes environmental impact per unit of production Meeting Stakeholder Expectations for Corporate Sustainability 23

24 THANK YOU FOR YOUR ATTENTION AMD, the AMD Arrow Logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other product names used in this presentation are for identification purposes only and may be trademarks of their respective companies. 24