Environmental Statement 2008 Villach site

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Issued by: Inf ineon Technologies Austria AG in co-operation with Inf ineon Technologies AG, Corporate Environmental Af f airs & Operations Suppor t Responsible for the contents: Dr. Adolf Biedermann, Dr. Ingrid Lawicka Concept and design: K ANZIAN ENGINEERING & CONSULTING GmbH Graphic s and layout: atelier CREmsner Paper: The Environmental Statement was printed on environmentally f riendly paper.

1 Introduction by the Management Board

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2 The Company

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2.1 Company Profile of Infineon Technologies Austria AG 2.2 Site Description

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3 Company Policy: Occupational Safety and Health, Environmental Protection

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3.1 Occupational Safety and Health

4 Integrated Management System for the Environment, Occupational Safety and Health

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4.1 Organization of the Environmental Management System

5 Environmental Impacts - Data, Facts and Figures

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10 13 27

5.1 Input/Output Analysis 5.2 Direct Environmental Aspects 5.3 Environmental Aspects and Key Issues

6 Environmental Programs and Environmental Goals 2007/08

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28 29 30 30

6.1 6.2 6.3 6.4

7 Annex 7.1 7.2 7.3 7.4

Implemented Measures Planned Measures 2008 - 2009 Special Environmental Achievements Important Changes since the Last Environmental Statement

31 Glossary Contact Persons Validation 2008 Date for next Environmental Statement



Content

31 32 33 33

The Infineon Management Board

Mag. Monika Kircher-Kohl

Chief Executive Officer (CEO)

DI Reinhard Petschacher

Chief Technology Officer (CTO)

1 Introduction by the Management Board Sustainability and the protection of people and the environment are vital components of business strategy at Infineon. We are aware of our role model status as a large industrial enterprise and the largest private employer in Carinthia. Our production facilities are equipped with state-of-the-art environmental and safety systems. We have pledged ourselves to environmental protection since our site was established in 1970 and today this commitment finds expression in a wide variety of ways. We make a significant contribution to saving energy and safeguarding resources by developing, producing and marketing semiconductor solutions whose hallmark is efficient energy management. They are to be found in a myriad of industrial and consumer products. Our innovation drive launched in the 2008 fiscal year seeks to expand the strengths of Infineon Austria and to sustainably secure the economic future of the site. Covering areas such as manufacture, R&D and personnel management, the innovation projects push the envelope along the entire value chain - whether it be materials, processes, methods, machines or logistics. Take, for example, energy efficiency. New applications in lighting using LED technology, new E-Mobility solutions deploying new semiconductor products for electric and hybrid vehicles, or energy-efficient customer solutions for the solar market - they are all instances of developments that improve environmental protection and heighten awareness of it. The new office building opened in Villach in June 2008 demonstrates that Infineon attaches high importance to energy efficiency not only on the business front, but that the company itself and the site management are focused on promoting this goal. The economic crisis hit the cyclical semiconductor market at an early stage, back in July 2008, and the8pt, impact we have seen is a decline in capacity utilization of our production facilities. bilduntertitel line Therefore space 11pt, we are doing our utmost to reduce the consumption of energy and resources accordingly. letter 0 pt

Mag. Monika Kircher-Kohl, CEO

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DI Reinhard Petschacher, CTO

2 The Company Infineon Technologies AG Infineon Technologies AG offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications and security. In the 2008 fiscal year (ending September), the company reported sales of Euro 4.3 billion, with approximately 29,100 employees worldwide. The company is listed on the Frankfurt stock exchange and on the New York stock exchange (ticker symbol IFX).

2.1 Company Profile of Infineon Technologies Austria AG Infineon Technologies Austria AG, headquartered in Villach, is a Group company of the globally operating semiconductor manufacturer Infineon Technologies AG. Semiconductor and system solutions for the automotive sector, industry and communications are developed and manufactured at Infineon Austria. Drawing on our technological expertise, we set trends and unfold our strengths along the entire value chain in a quest to come up with high-quality, innovative products that resonate with our customers. As at September 30, 2008, the employees working for Infineon throughout Austria numbered around 2,900, at Villach, Klagenfurt, Graz, Vienna and Linz. Of this number, about 1,000 were engaged in research & development (R&D). In the 2008 fiscal year (ending September) the company generated sales of Euro 1.2 billion. The volume of output was 20 billion chips. R&D expenditure was Euro 227 million.

Company

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Infineon’s Villach Site The workforce at Villach is around 2,200. Semiconductor and system solutions for Infineon’s Automotive, Industrial & Multimarket, Wireless Solutions, Wireline Communications, Chipcard & Security Divisions are developed and produced at Villach.

2.2 Site Description The company site at Villach, established in 1970, is characterized by the combination of development, production and responsibility for business performance. Infineon Austria has committed itself to a cross-divisional innovation drive forging even closer ties between research, development and production in areas bringing together special knowledge. The confidence which Infineon Technologies AG places in the Austrian site is manifested by the subsidiary’s growing Group-wide responsibilities. Accordingly, in recent years Infineon has expanded its activities in Austria particularly in the Automotive, Industrial & Multimarket sectors. Responsibility for the global IT management also rests with Austria. Infineon Austria is addressing a further market of the future - energy efficiency - by setting up the DC/DC (DC conversion) Competence Center in Villach to pool development know-how in the power management sector. Villach is also home to the global reliability control and quality control of automotive chips (RPT laboratory).

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With 2,400 employees in Villach and Klagenfurt, Infineon Austria is the region’s largest private employer. Villach is regarded as the high-tech hub of the AlpeAdria region and offers international companies a very good business environment. Infineon’s Villach site is located in the industry and business park on the city’s south-eastern periphery, in the immediate vicinity of the technology park which is home to the microelectronics education and research establishments. Good transport connections are provided by the A2, the link to the southbound rail line and Klagenfurt airport. Also situated in Villach is a front-end microchip fab manufacturing chips on wafers in various technologies and complexities, in as many as 400 production steps. The main focus is on automotive and industrial electronics and Infineon ranks among the market leaders for these power semiconductors. The principle of leading the way with innovations addressing markets of the future is very pertinent to microchip production. The industry is witnessing structural change, away from mass production towards the innovation fab. Experts are constantly on the search for innovative solutions along the entire value chain, from the idea through the processes to the customer. The iFAB - top-level, radio- and ultrasound-based production logistics developed in Austria and deployed for the first time in Villach - is testament to the strong pioneering spirit prevailing here. In this way, a significant contribution is made to promoting the competitiveness of the production site and to future-proofing it.

Site

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3 Company Policy: Occupational Safety and Health, Environmental Protection For Infineon, a responsible occupational safety and health and environmental protection policy is not limited to compliance with legal regulations and official requirements. It is much rather a process of continuous improvement, for instance of our products and of the way in which our plants and equipment are operated. In 2005 the company consolidated occupational safety and health and environmental protection to form IMPRES (Infineon Integrated Management Program for Environment, Safety and Health). The program covers all the processes, strategies and corresponding goals in the areas of occupational safety and health and environmental protection worldwide.

Benef it : Return, Social Prestige

Indu st r ial Saf et y

Env ironment al Protec t ion

Healt h

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Occupat ional Saf et y

Process-optimized Projects

BASIS: Compliance with all statutory requirements is fundamental

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3.1 Occupational Safety and Health In 2003 the company medical service in consultation with the Management Board initiated the “Healthy and Active” program aimed at fostering and promoting employees’ health awareness. The areas addressed by “Healthy and Active” are nutrition, exercise, preventive medical checkups, addiction prevention and stress management. Health promotion forms part of the company culture of Infineon Technologies AG. The aim of occupational health is to prevent occupational diseases, above all work-related disorders. A wide array of instruments is at our disposal. Our work requires knowledge of the workplaces, work routines, work equipment and, above all, working materials. For psycho-emotional issues, we offer support through the stress and conflict management scheme integrated in the health promotion program. The following were the main priorities in the company’s “Healthy and Active” health promotion program in the 2007/08 fiscal year. In addition to the ongoing stress management seminars, in-house mediation is offered as part of the mental health plan and was introduced to the management echelons by a presentation. With regard to physical health, the focus was on the subject of spine fitness. Besides the popular spine training classes at the fitness center, training led by a physiotherapist and designed specifically for VDU-employees is offered in the new gymnastics room in building 06. In-house massage is also provided at the request of the workforce. Massage and training sessions are held outside working hours and are highly popular. The Fonds Gesundes Österreich, the Austrian organization for health promotion, gave Infineon the Company Health Promotion Award 2008 for the “Healthy and Active” program in recognition of its commitment, zeal and sustainability approach.

Environmental savety

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Occupational safety - based both on the statutory groundwork and on the intra-company rules has been closely observed and consistently developed since the facilities were established at Villach. This is reflected by the following accident frequency chart. Although the recognized occupational accidents increased slightly from 5 to 8 per 1000 employees, the accident rate of Infineon Technologies Austria AG, Villach site, is still significantly below the average of Austria’s metalworking and electrical industry.

Incidence Häufigkeit of occupational accidents in industrial enterprises (per 1000 employees) der Betriebsunfälle in Industrieunternehmen 50

50

45

45

40

40

35

35

Industrieunfälle

Industral accidents

Industrieunfälle

(per 1000 Mitarbeiter)

30 25 20

25 20 15

10

10

5

5 2001

6 ldeplichtige Arbeitsunfälle bilduntertitel 8pt, erkannte Arbeitsunfälle* line space 11pt, 43 ktroindustrie AUT

2002

2003

2004

2005

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5

4

3

30

34

35

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2005

2006

2007

9 33

5 33

8 29

0

2001 2002 6 4 Accidents subject to reporting requirements meldeplichtige Arbeitsunfälle anerkannte Recognized Arbeitsunfälle* occupational accidents 30 43 Electrical industryAUT Austria Elektroindustrie

letter 0 pt *) From 2005 new assessment model of the AUVA (General Accidents Insurance Board) based on “recognized occupational accidents”, up to and including 2005 only “occupational accidents subject to reporting requirements” were included.

8

30

15

0

Häufigkeit der Betrie (per

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4 Integrated Management System for the Environment, Occupational Safety and Health IMPRES - an Integrated Approach Immediately after Infineon Technologies AG was established, a company-wide environmental management system was introduced which is subject to continuous improvement. Production sites worldwide are either matrix-certified in accordance with the EN ISO 14001 standard or work towards this is underway. In addition, the Austrian site of Villach is EMAS validated. Finally, in 2005, IMPRES (Infineon Integrated Management Program for Environment, Safety and Health) was established across the Group, covering all the processes, strategies and corresponding goals in the areas of the environment, occupational safety and health, and in the same year we received matrix certification according to the ISO 14001 and OHSAS 18001 international standards. As part of this updated environmental statement, we will address the area of environmental protection within IMPRES below.

4.1 Organization of the Environmental Management System Environmental protection is not an empty phrase, but a corporate responsibility that is an integral part of our social accountability. We have regulated this subject in detail and defined the individual areas of responsibility for the various tasks. Our IMPRES forms the basis for this.

IMPRES

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Environmental Management System and Manual

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Environmental Relevant (Support) Processes and Upstream (Business) Processes

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Environmental-relevant codes of practice and records

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State Corporate Management

Environmental Policy and Objectives

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Pyramid of our operations. Compliance with legal standards and of f icial requirements goes without saying. Ever yone knows, however, that laws are of ten dif f icult to understand. Therefore we have created internal principles that translate our visions for environmental protection into a concrete code of practice with clear relevance to each individual’s work in the company.

5 Environmental Impacts Data, Facts and Figures Environmental impact is every positive or negative change to the environment that occurs entirely or partly as a result of the activities, products or services of an organization. Infineon is aware of the presence of various environmental impacts and is pledged to identify new aspects and to take corresponding action where necessary.

5.1 Input/Output Analysis In order to minimize the environmental impacts of the Villach site, processes are optimized on the basis of systematic recording and evaluation of energy and material flows. In particular, resources are used as efficiently as possible by means of targeted treatment and recycling. Activities monitoring the efficiency of the specific policies and regulations for minimizing direct and indirect impacts on the environment include those of the in-plant Disaster Control Organization (Katastrophenschutzorganisation (BKO)), strategic and practical exercises as well as audits and site inspections. However, direct environmental aspects are of vital concern due to the potential impacts on the environment itself. The sections below report on the direct environmental aspects applying to the Villach site, such as the energy, fresh air, water, chemicals and other materials required, and the waste heat, waste gases, waste water and other waste produced.

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1 0 0 1 1 0 1 1 1 1 0 1 0 1 0 0 00000101 1 0 1 0 0 1 1 0 0 0 1 0 1 1 1 1 1 0 1 1 0 0 1 0

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Raw Wafers Energ y Fresh/

Water Gases & Other

Source: Consolidated Environmental Statement 2006

Analysis

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