Updated Environmental Statement 2013 of the Villach Site

www.Infineon.com/austria English

Content 1. Introduction

3

Introduction by the Infineon Technologies Austria Management Board

3

2. The Company

4

2.1 Infineon Technologies Austria AG Corporate Profile

4

2.2 Site Description

4

2.3 Activities and Products

6

3. Company Policy – Environmental Protection, Energy Management, Occupational Safety and Health

7

3.1 Integrated Management - A Comprehensive Approach

7

3.2 Organization of the Environmental Management System

8

3.3 Employee Involvement

8

3.4 Occupational Safety and Health

9

3.5 Compliance with Statutory Environmental Regulations

9

3.6 Emergency Precautions and Emergency Management

10

4. Environmental Impacts – Numbers, Facts and Figures

12

4.1 Input / Output Analysis

12

4.2 Direct Environmental Impacts

14

4.3 Indirect Environmental Impacts

24

4.4 Environmental Aspects and Focal Points

25

5. Overview of Environmental Program and Environmental Goals for 2013/14

28

5.1 Measures Realized in 2012/13

28

5.2 Measures Planned for 2013/14

29

5.3 Special Environmental Achievements 2012/13

30

5.4 Significant Changes since the Last Consolidated Environmental Statement

30

6. Appendix

31

6.1 Definition of Terminology

31

6.2 Validation

34

6.3 Date for the Next Environmental Statement

35

6.4 Contacts

35

Publication Information Issued by: Infineon Technologies Austria AG in collaboration with Infineon Technologies AG, Corporate Environmental Affairs & Operations Support Responsible for content: Dr. Adolf Biedermann, Dr. Ingrid Lawicka Concept & Design: KANZIAN ENGINEERING & CONSULTING GmbH Graphics & Layout: greeneyes – Agentur für authentische Kommunikation, www.greeneyes.at

2

Introduction by the Infineon Technologies Austria Management Board

Infineon semiconductor and system solutions are the key to modern life, even though they usually remain invisible to the end-user. Embedded ideally in the end-product, our high-performance semiconductors enable continuous reductions in energy consumption while maintaining and even increasing performance levels - anywhere electricity is found, even in the automobile. Our chips mean a decisive advantage, especially in energy production from renewable sources such as wind and the sun. Our outstanding research, development and production expertise in Austria drives Infineon‘s global success. Our innovative products and highest possible quality levels capture the markets of the future and make an important contribution to sustainability worldwide. Here we follow a comprehensive strategy; we‘ve been dedicated to environmental protection ever since our Villach site was established in 1970. For over forty years we‘ve brought this dedication to life through the rigorous realization of the highest standards in all areas, from installation of the latest environmental and safety technologies in our production facilities to fitting our office buildings with geothermal and district heating. For the second time since 2009 our systematic environmental management activities have earned the highest possible honor, the 2013 EMAS Prize.

DI Dr. Sabine Herlitschka, MBA

DI (FH) Oliver Heinrich

Infineon regards itself as a High-Performance Company, with the objective of constantly developing its own abilities in order to lead through innovation. In Austria Infineon meets these demands with rigorous quality and innovation management. As the first company in the world to produce power electronic chips on 300mm thin wafers, we were awarded the 2013 Austrian National Innovation Prize. The year before, Infineon Austria was honored for its dedication with the „Austrian Excellence Award“ from the Austrian Ministry of Economic Affairs, Youth and Family, and Quality Austria GmbH.

Dr. Thomas Reisinger

Infineon achieves outstanding performance in socially relevant focus areas and in doing so establishes sustainable values. With innovation and expertise in the areas of energy efficiency, mobility and safety we help shape the future and contribute to increasing the ecological efficiency of our end-products throughout the entire lifecycle. Together with a strong international team in Austria we are a constant driver of worldwide corporate success. We rely on exceptional partner management, business excellence and sustainability at all levels.

3

2. The Company Infineon Technologies Austria AG

A livable future calls for innovative technologies for more energy efficient systems, flexible transport concepts and security solutions for digital data traffic. High-performance semiconductor technologies from Infineon Technologies AG are the key to the growth markets of the future. Infineon Technologies AG provides semiconductor and system solutions to meet the three central challenges of modern society: Energy efficiency, mobility and security. With approximately 26,700 employees around the world Infineon achieved sales of Euro 3.8 billion in the fiscal year 2013 (ending September 30, 2013).

2.1 Corporate Profile Infineon Technologies Austria AG, headquartered in Villach, is a Group subsidiary of Infineon Technologies AG. In Austria the company develops and produces semiconductor and system solutions for applications in the automotive, industrial and security sectors as well as for computing and consumer electronic devices. We set trends with our technological expertise, extending our strengths along the entire value chain and convincing our customers with innovative, high-quality products. As of the end of the fiscal year, Infineon Austria employed over 3,100 people throughout Austria at its Villach, Klagenfurt, Graz, Vienna and Linz locations, with approximately 1,100 employees in research and development (R&D). In fiscal 2013 the company achieved sales of approximately Euro 1.2 billion, with a production volume of 12.4 billion chips. Total R&D expenses were approximately Euro 270 million, or 23 percent of sales. Responsibility for Group-wide topics and considerable investments are a clear indication of the confidence

4

Infineon Technologies AG places in the Austria unit. Infineon Austria bears global responsibility for five product lines from three different divisions.

2.2 Site Description With approximately 2,800 employees in Carinthia in the fiscal year 2013, Infineon Austria is the largest private employer in the region. Villach is the high-tech hub of the Alpe-Adria region and offers international companies an excellent economic environment. 2,600 employees work in Villach. Established in 1970, the Villach site is characterized by the combination of development, production and responsibility for business performance. Infineon Austria is committed to innovation initiative in all areas, further intensifying the connections between research, development and production. The Infineon site in Villach is located in the industrial and commercial zone on the southeastern side of the city and is thus in the immediate vicinity of the technology park, home to microelectronics education and research facilities. The Autobahn A2, a connection to the southern rail line and the Klagenfurt airport make the site easily to reach. The net utilizable building floor space is broken down as follows:

Description

Area in m2

Production space

21.303 m2

Support space

57.018 m2

Office space

25.697 m2

Laboratories

5.383 m2

IT space

505 m2

The overall area of the site, including streets and walkways, is 184,466 m2, of which more than a quarter is covered by construction. 32,015 m2 is rented.

5

2.3 Activities and Products In Austria, Infineon Technologies Austria AG focuses on semiconductor and system solutions for the automotive and industrial security sectors, producing for example tire pressure measurement systems, engine control chips, energy efficiency chips and contactless security chips for identification documents. Villach is home to a front-end microchip facility producing chips on silicon wafers in various technologies and levels of complexity in up to 400 manufacturing steps. The central idea of approaching the markets of the future with innovation at an early stage is clearly manifested in microchip production. A specific example of highest performance and innovation from Austria is the break-through in manufacturing technology announced in October 2011: At its Villach facility, Infineon was the first company in the world to succeed in producing power electronic chips on 300 millimeter thin wafers, winning Infineon Austria the Austrian National Innovation Prize in 2013. The Villach site focuses its research and development activities in particular on energy efficient solutions for automobiles and industry, while the Graz site concentrates on contactless security technologies. The team in Graz is also taking on increasing responsibility for worldwide

6

development of automotive applications. The Linz subsidiary DICE GmbH works on the development of integrated circuitry for automotive radar systems. With responsibility for business performance for five product lines, global functions such as marketing are also anchored in Villach. Villach is furthermore home to the testing laboratory for the quality and reliability of semiconductor products for automotive and industrial applications as well as for tire pressure control systems.

Investment in the Business Location Austria Infineon invested approximately Euro 500 million in its Austrian sites in the fiscal years 2011 and 2012. These investments went primarily to the pilot line for the 300 millimeter thin wafer technology for power electronics, to research and development and to infrastructure improvements. 2013 also saw the expansion of the development center in Graz. Core elements are the 2,000 m2 additional clean-room space in production and the new research building with 7,500 m2, certified as a climate-active “klima:aktiv haus” building, home to 400 workstations and 40 measurement technology stations. Since 2010 a total of almost 700 new jobs have been generated, the majority in Carinthia, bringing headcount to its highest level in the history of the company.

3. Company Policy Environmental Protection, Energy Management, Occupational Safety and Health

At Infineon a responsible company policy on environmental protection, energy management, occupational safety and health means more than just compliance with legal standards and regulatory requirements. It means a continuous improvement process for our products and for the operation of our plants and our facilities. In addition to process-technical regulations and rules, the values of any strategy have to be lived actively in order to fulfill defined objectives. The excerpts below are from of IMPRES policy guidelines focusing on environmental protection, the basis for our actions: „„ Through our daily actions, our innovations and

products we support a sustainable global society and make energy efficient end-products and applications possible. „„ We constantly strive to go beyond compliance with legal regulations to minimize risks and the impact on man and the environment, as well as to reduce consumption of energy and resources. „„ We use energy consciously and efficiently and use resources sparingly. „„ We actively pursue our objective of being and staying the energy efficiency leader in our industry. „„ We contribute to climate protection, among other things by minimizing our greenhouse gas emissions. „„ We regard the obligation to prevent accidents as a matter or course. This includes motivating our employees to practice active health improvement. „„ We make sure our company policy on occupational safety, health and environmental protection and energy management is realized effectively. The necessary technical and organizational procedures are regularly reviewed and constantly enhanced. „„ We regard it as each individual employee’s duty to support our goals in occupational safety, health and environmental protection as well as in energy

management with conscientious actions. Raising and enhancing awareness at all levels is a constant management task. „„ We call on our business partners to follow our policies. We cooperate openly with regulatory requirements, industry associations and non-governmental organizations.

3.1 Integrated Management A Comprehensive Approach In 2005 Infineon combined its occupational safety, health and environmental protection activities to form IMPRES (“Infineon Integrated Management Program for Environment, Safety and Health”), consolidating all processes, strategies and corresponding goals in the areas of occupational safety, health and environmental protection worldwide. Infineon Technologies has decided to integrate its energy management system in IMPRES, so that the term IMPRES now stands for the integrated management system for environmental protection, energy, occupational safety and health protection, “IMPRES - Infineon Integrated Management Program for Environment, Energy, Safety and Health”. Infineon Technologies worldwide has been certified as part of a matrix certification for the ISO 14001 and OHSAS 18001 standards. Since the end of 2012 its European front-end sites have been additionally certified under ISO 50001. We actively contribute to a sustainable society through our daily actions and our innovations. Our measures in occupational safety, accident prevention and health protection are targeted at minimizing possible risks at all workstations in order to protect the health and

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IMPRES: Synergy between the Responsibility for Man and Environment and Economic Success

Objectives and IMPRES policy as a part of the integrated management system IMPRES-related (support) processes and upstream (business) processes

Corporate vision

Internal guidelines and rules

Internal procedures

Infineon Technologies AG produces semiconductors in a variety of different countries and cultures. The associated responsibility for man and the environment is a permanent part of our actions and is realized in terms of processes. In the company the resulting measures are perceived and realized as an integral part of company policy, and the internal audit and environmental audit according to EMAS (Eco-Management and Audit Scheme) have been expanded to include the topic of energy. This applies to all operational aspects, from procurement to development and production, all the way to product sales. Compliance with laws and regulatory requirements is the foundation for the actions of Infineon Technologies AG.

3.2 Organization of the Environmental Management System We do more than just talk about environmental protection. For us environmental protection means a corporate obligation and is a part of Infineon’s commitment to social responsibility. In order to meet high environmental protection standards, we’ve formulated detailed regulations on the topic and have clearly defined the respective areas of responsibility for the various tasks involved, based on our IMPRES policy.

8

Evidence

Site

IMPRES-related work instructions, regulations and documentation

well-being of our employees. We understand sustainable environmental protection as including the efficient use of natural resources. Possible environmental impacts are investigated at the earliest possible stage and are taken into account in product and process development. We do everything possible to avoid consequences for man and the environment, and to keep them to a minimum when this is not entirely possible.

Corporate management

Integrated management system

External obligations and customer requirements

State

Laws

Compliance with legal standards and regulatory requirements is a matter of course for us, but as everyone knows, laws are often difficult to understand. This is why we’ve formulated internal regulations that demonstrably turn our environmental protection visions into specific work instructions for every individual in the company. In 2010 the Villach site, EMAS certified since 1997, was also the first company in Austria to be assessed under the EMAS III Regulation (EC) No. 1221/2009 and won the EMAS prize for constant combination of environment and economic objectives in 2009 and 2013. Documentation of environmental protection, energy management, occupational safety and health protection at Infineon includes the IMPRES manual as well as all IMPRES-related process descriptions, work instructions and further IMPRES-related documents. As a part of IMPRES the integrated management system at the entire Villach site is regularly inspected by internal and external audits. Highest-level management/site management representatives regularly assess the status of the management system as part of a management review in order to continuously examine and improve activities.

3.3 Employee Involvement The motivation, flexibility and expertise of some 2,600 employees at the Villach site make a fundamental contribution to the long-term corporate success of Infineon Technologies Austria AG. In addition to permanent knowledge exchange within the Group, training and continuing education are a high priority in all areas.

Infineon highly values the potential of ideas as an important step towards continuous improvement. Ideas and suggested improvements pay off for employees and are given an ideal platform in “YIP” (Your Idea Pays), the Infineon-wide idea management program. The section on Energy further discusses the increased company-internal involvement of employees in ongoing operations through the suggested improvement system.

3.4 Occupational Safety and Health Occupational safety, based on both legal fundamentals and company-internal rules, has been a permanent part of the company since the creation of the production facilities at the Villach plant and is constantly being enhanced. This can also be seen in the very low number of work-related accidents at the Infineon Technologies Austria Villach site in comparison to Austrian electronics industry levels. In the area of prevention, employees are offered stress management seminars, biofeedback stress tests and burn-out prevention seminars and additional measures such as mediation, advice and coaching for mental health. Relaxation training (autogenic training, muscle relaxation according to Jakobson, breathing techniques) is held regularly in the company’s training room. Employees can also select from a wide variety of options in the company canteen, including at least one meal with organic ingredients (e.g. the “Vital Meal”). All these agreed and ongoing safety measures (awareness, training, monitoring) are reflected in the 2012 accident statistics from AUVA (Allgemeine Unfallversicherungsanstalt, Austria’s General Accident Insurance Institution) which certify our Villach site as having the lowest accident rate since the statistic has been kept (2005).

Frequency of Occupational Accidents (per 1,000 Employees) 40 Infineon Technologies Austria AG Austrianmicrosystems AG EPCOS OHG Electronics Branch

35 Industrial Accidents

Soon after joining the company and at the end of the following quarter, employees receive topical systematic training in occupational safety, health protection and environmental protection and energy. They are kept up to date with publications on environmental protection and environmental topics in the intranet, in the Environmental Statement and with posters displayed throughout the site on various environmental topics.

30 25 20 15 10 5 0

2005

2006

2007

2008

2009

2010

2011

2012

Recognized Occupational Accidents (Recognized by AUVA) 1) 2005 2006 2007 2008 2009 2010 2011 2012 Infineon Technologies Austria AG

9

5

8

5

8

7

10

4

Austriamicrosystems AG

9

12

9

3

8

7

6

4

EPCOS OHG

27

30

21

13

13

27

12

20

Electronics Branch

36

32

28

35

25

26

22

20,5

1) There is as yet (February 2014) no 2013 AUVA report, therefore no current industry figures are available.

In order to maintain these levels to the best extent possible, in fiscal year 2012/13 there were two fundamental initiatives in addition to the prevention service already proven over many years. „„ Supplementary training for production staff in addition

to continuous training on safety, quality, environment and energy „„ The project Safety@IFAT according to the SCC (Safety Certificate Contractors) model with legal, normative and site-specific requirements for our key service providers.

3.5 Compliance with Statutory Environmental Regulations The company complies with legal regulations and other relevant regulatory requirements (official orders). Furthermore, the stipulations of permits are also observed, as are insurance law considerations and when appropriate official regulatory orders. The current legal regulations relating to occupational safety, health and environmental protection (including energy) at the site are summarized in a legal directory. This applies similarly to voluntary commitments, requirements stemming from permits and regulatory orders, etc. The departments responsible for maintaining this information are exactly defined at the Villach site. The legal directory is reviewed on a regular

9

basis and modified as necessary. It provides among other things the basis for process descriptions and other corporate regulations on occupational safety, health protection and environmental protection and for energy. It presently includes 14 legal domains, 165 laws and ordinances, resulting in approximately 1,300 regulations.

this is not entirely possible, to do everything possible to limit the impact of such an event. Furthermore all essential environment-related processes are monitored by process control and/or with constant measurements. This means even minimal variances from operations as intended or other incidents are detected at the earliest possible stage.

Consolidation of Plant Permits

In addition to the shift and on-call staff, the Infineon Villach plant fire department and our company medical station are available for correction of disturbances and to respond to possible emergencies and accidents. Our plant fire department is composed of approximately 100 part-time staff members, distributed across six shifts, and two full-time employees. It has three vehicles which are also specially equipped to respond to chemical accidents, ready to go into action in the shortest possible time.

Under the Austrian Environmental Management Law (§ 22 Umweltmanagementgesetz or UMG) operations which follow an environmental management system according to EMAS are allowed to consolidate all federal law permits for a plant facility in a single official order. Infineon Technologies Austria AG successfully completed the official order consolidation procedure, which takes place on a voluntary basis above and beyond the legally stipulated framework, in May 2005. Consolidate Official Order

In case of serious damage events which can not be corrected in the course of conventional operations, the site’s corporate Disaster Prevention Organization (DPO) is activated. Specially trained crisis management team leaders with operational authority are constantly available via the control stations and can immediately take over the direction of a response whenever necessary.

Company-External Alarm and Hazard Response Plans

This constituted the consolidation of the plant facility permissions issued for operation of the Villach site and thus fulfilled the requirements for documentation and monitoring obligations in terms of legal security according to the latest version of the applicable laws. This official order was renewed in January 2010 and will be updated again in fiscal year 2014/15.

3.6 Emergency Precautions and Emergency Management In collaboration with the responsible emergency and medical response services we have taken all the safety and precautionary measures necessary to prevent a potential emergency event at the site or, to the extent that

10

We have formulated clear and detailed alarm and hazard response plans in order to limit the impact of emergencies and accidents outside the plant premises. In case of incidents with possible consequences outside the boundaries of our plant premises, we inform the Federal Police in Villach and the Villach fire department. When necessary, they take over the task of warning our neighbors and providing them with further information. All orders from emergency and medical response services must be followed in all cases. In case of a large-scale response, command of the operation is turned over to the crisis management team director of the city of Villach. The corporate Disaster Prevention Organization (DPO) of the Infineon site is available to advise the Villach crisis management team director. During the previous fiscal year 71 rescue exercises and training sessions took place in the areas fire protection, chemicals, technical assistance and preventive fire protection. Furthermore, 2013 saw the beginning of the enactment of the Industrial Accident Ordinance in terms

Accident / Major Damage Event DPO Director Alarm Procedure Response Teams and Support Teams Technical Command Center on Location (Fire department, police, Red Cross, etc.) Need for Official Action by Authorities, Engagement of Private Companies Governmental Authorities' Command Center Involvement of Various Qualified Experts

Involvement of the KLR Authority

Private Companies Other

Public Relations Tasks KLR: Carinthian State Government DPO: Disaster Prevention Organization (Betriebliche Katastrophenschutz-Organisation BKO)

Source: Information Folder for Neighbors and Local Residents 2005 of an Upper Tier (“Schwelle II “) facility. Here regularly occurring synchronization with government office requirements as well as creation of detail documentation/documents is an essential factor. In accordance with their classification, some of the properties of the chemicals and gases used in semiconductor production

are hazardous. The quantities required for production therefore also constitute a correspondingly large potential hazard. For this reason the Infineon site Villach is subject to extended safety and documentation requirements under the Austrian Trade, Industrial Accident and Incident Information Act (“Gewerbe-, Industrieunfall- und Störfallinformationsverordnung”).

Handling Hazardous Materials The materials needed at the Villach site are securely stored, transported and used in accordance with their hazardous properties. Deliveries are made using specially approved vehicles and transport containers. Leak basins and retention basins equipped with specially coated walls are present at the Villach site in order to protect securely against the unwanted release of liquids. Plant-internal transports, for example from the chemical and gas storage facility to the supply facilities for production, are conducted under strict security precautions. Further transport to the production facilities takes place using double-walled pipelines that are among other things monitored by sensors for leak-tightness. Our production facilities are equipped with extensive safety and emergency shutoff systems activated by the control station, which is manned 24 hours a day and seven days a week. In case of an incident, the necessary emergency procedures can be initiated from the control station in the shortest possible time.

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4. Environmental Impacts Numbers, Facts and Figures

An environmental impact is any positive or negative change in the environment which occurs in whole or in part because of the activities, products or services of an organization. Infineon is aware of the presence of various environmental impacts and always makes an effort to identify new impacts and to adapt appropriate countermeasures when necessary.

4.1 Input / Output Analysis Based on systematic recording and evaluation of energy and material flows, processes are optimized in order to keep the impact of the Villach site on the environment as small as possible. In particular targeted recycling and treatment measures keep consumption of resources as efficient as possible.

Air Emissions

Noise Emissions Soundproofing Measures

Exhaust Air Treatment

Among other things the specific measures and regulations on minimization of direct and indirect environmental aspects in the context of the corporate Disaster Prevention Organization (DPO) are inspected for effectiveness by practical exercises involving corporate response teams as well as by audits and inspection tours. The significance of direct environmental aspects is however given higher priority due to the possibility of environmental impacts. The following sections contain information on the direct environmental aspects relevant at the Villach site, such as energy requirements, fresh air, water, chemicals and other materials as well as on the production of waste heat, exhaust air, waste water and solid waste. The increase in overall resource consumption in the area of water and basic gases for the fiscal year 2012/13 resulted primarily from the expansion of the site (Hall 16A and building 07 with a total of 10,000 m2 additional space, of which 2000 m2 is production area), the corresponding technology shifts, the ramp-up phase and filling the existing production space with equipment.

Recirculated Air

Heat Reclamation

Raw Wafers

Front-End Production

Energy Wafer with Chips

Fresh Air/ Recirculated Air Water

Waste Disposal Gases and Chemicals

Waste

Other Materials

Waste Separation

Multiple Reuse of Water

Waste Reclamation and Recycling

Waste Water Waste Water Purification

Internal Recycling Waste Water Feed Chemical Recycling

Metal Recycling

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However, based on the optimization measures already initiated in the last phase of underutilization (in particular in the area of energy), the increase in specific consumption of resources was essentially lower (for more see chapter 4.2). In the area of emissions the rigorous continuation of the CO2 reduction program resulted in a slight improvement in the specific emission of CO2 equivalents in the last fiscal year. See the chapter on “Exhaust air”. With respect to the concept and principal policy of the EMAS III regulation in terms of comparability of data and achieving the intended benchmarkability, reporting was already converted to area normalization for the fiscal year 2009/10, i.e. reporting is based on the specific consumption of resources per cm2 of silicon surface produced, including contract manufacturing of wafers for other sites and vendors.

INPUT for fiscal years 2010/11, 2011/12 and 2012/13 Raw Materials, Auxiliary and Operational Materials Wafers Gases

2010/11

2011/12

2012/13

Unit

97.38

102.93

100.47

t

61,315.87

73,304.29

78,054.24

t

Wet chemicals

4,289.67

4,854.91

4,801.80

t

Photo-chemicals

1,350.63

1,213.16

1,148.30

t

140.95

147.9

171.52

t

2.73

2.75

5.73

t

4,020.10

4,580.67

4,411.37

t

39.07

32.03

26.95

t

Water

4,621,470

4,516,175

4,837,673

m³

Ultra pure water 1)

1,440,200

1,471,703

1,561,606

m³

Air

12.48

12.93

14.04

Nkm³

Recirculated air

49.77

59.83

61.35

Nkm³

CMP chemicals and slurries Other chemicals Chemicals for facilities Metals (in products)

Energy

2011/12

2012/13

Unit

825,282

905,432.65

968,570,500

FY

Self-produced energy 2)

226,170

228,830.58

242,407,636

FY

1) 2)

2010/11

Primary and secondary energy

Approximately 90% of ultra pure water generated by reclamation from cooling water Energy from heat pumps and waste heat

OUTPUT for fiscal years 2010/11, 2011/12 and 2012/13 Production waste 1) Non-hazardous waste

2010/11

t

411.11

486.50

382.38

t

Hazardous waste 2)

1,231.82

1,805.95

1,901.87

t

Portion of which reclaimed 2)

1,024.19

1,602.46

1,449.23

t

185.51

156.93

236.33

t

Emissions to the air

2010/11

2011/12

2012/13

Unit

Exhaust air, total

12.53

12.99

14.11

Portion of which point-source emitted 3)

10.65

11.04

11.99

Nkm³

0.01

0.01

0.01

Nkm³

…with PFC contamination Waste water

3)

Unit

3,460.88

Solvent recycling residues

2)

2012/13

3,523.20

Portion of which reclaimed

1)

2011/12

3,210.91

2010/11

2011/12

2012/13

Nkm³

Unit

Waste water, total

4,500,819

4,466,187

4,959,294

m³

Production waste water requiring treatment

1,871,731

2,072,449

2,365,567

m³

Waste statistics, see page 16 (waste) Not including notified and externally recycled solvents These specifications include the exhaust air volume flows from clean-room areas and point-source exhaust air volume flows from other site areas

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4.2 Direct Environmental Impacts Direct environmental aspects are subject to the direct control of the company and are directly connected with the company’s activities, products and services. Both inspection of statutory provisions as well as the inspection of materials flows are used to identify environmental aspects. The most apparent among the direct environmental aspects are emissions to air and water, solid waste as well as consumption of resources and energy. The environmental impacts of our products are described in the chapter on indirect environmental impacts.

Energy, Climate Protection and Carbon Footprint The topics of energy and energy savings are taken very seriously at Infineon Technologies Austria. Therefore, in addition to the issue of greenhouse gases, a major focus point is responsible awareness in handling energy. Processes are optimized based on systematic tracking and evaluation of energy and material flows. In this way targeted optimization measures keep consumption as efficient as possible. Energy, primarily electric energy, is used in the manufacture of semiconductors. This energy is needed to create a stable production environment with defined ambient conditions in the clean-rooms and is also necessary for operation of the production facility. The main share of our energy consumption is therefore attributed to wafer

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production. Our energy sources for the fiscal year 2013 were as follows: Distribution of Energy Requirements at the Villach Site

9,3% 2,3% 20,0%

0,0% 68,4%

Electricity Energy from Heat Pumps and Waste Heat (Calculated) Natural Gas District Heating Emergency Power Diesel / Heating Oil EL

Improvements in energy efficiency result from the reduction in power consumption per production unit. In front-end production, in international semiconductor industry comparison the unit of production is defined as the processed area of silicon in square centimeters. Specific energy consumption is better suited than absolute consumption for assessment of energy efficiency. With the integration of requirements under ISO 50001 Infineon has created the structures at the Villach site for systematic identification of additional potential optimizations in the area of energy consumption and for realizing these potentials where viable.

The following figure reflects the development of the use of electricity and district heating at the site. The use of district heating since 2010/11 made it possible to reduce the use of natural gas from a typical approximate 10% to the current level of approximately 2.4%.

capacities as well as clean-room quality. This means that the entire range of equipment, plants and plant components require almost as much energy in “standby mode” as when in full operation. This emphasizes the necessity of a sustainable strategy for resource reduction.

Based on the electricity identification of the power utility, the environmental impact of indirect energy consumption by electricity in the period under consideration is approximately 23 tons of CO2.

„The Breathing Factory“

Energy Consumption - Villach [GWh] 250 District Heating

Natural Gas

Heating Oil EL

Since the semiconductor industry in particular can often be subject to strong swings in demand and utilization, it is of great importance to formulate an energy-efficient and cost-optimized “Sleep Mode” or “Cold Steel Scenario” for production facilities for phases of underutilization.

Gwh

150 100 50 0

07/08

08/09

09/10

10/11 Fiscal Year

11/12

12/13

target 13/14

Our “Energy Efficiency Project” In order to keep the utilization of energy and resources as efficient as possible and to learn from periods of underutilization, a site-wide “Energy Efficiency Project” was started in the fiscal year 2008/09 addressing the issue of innovative strategies for resource optimization. The project, under the direction of an energy manager, was continued in the previous fiscal year with a focus on innovation. This also resulted in our current internal power consumption goal for the fiscal year 2013/14. In the area of employee motivation, employees are constantly called on in the context of the company-internal idea management program (YIP) to contribute ideas for improvement, here for reducing consumption and saving energy. In the last fiscal year approximately 10% of the suggested improvements submitted had to do with energy, occupational safety and environmental protection.

Among other things, the goal of the “Energy Efficiency Project” is to keep production equipment ready for production in phases of underutilization, while at the same time reducing consumption of resources and energy to a minimum or shutting them down altogether. The “Energy Efficiency Project” has already shown initial and significant success in this regard. Energy Consumption in Semiconductor Manufacturing at Varying Utilization Levels (Schematic Development) 7 6 Energy Consumption

200

Electricity

The figure below shows energy consumption in relation to utilization level for wafer production. The consumption of electric energy in semiconductor manufacturing is typically almost constant (see figure Energy Consumption / Schematic Development), in spite of the strong vacillation in wafer production (utilization).

5 4 3 2

Normalized Energy Consumption Normalized Capacity Utilization

1 0

1

2

Time

3

4

Current Developments As described in the following, electricity and media consumption in semiconductor production in particular are to a large extent (typically 50 percent) independent of the unit quantities produced and serve for the maintenance of the plant facilities and of the installed production

Site Energy Statistics In order to objectively represent the development of energy consumption and the effects of underutilization on energy consumption, reporting is presented in a ten-year framework.

15

0.6

0.06

0.4

0.04

0.2

0.02

0.0

04/05

05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14

0.20

0.00

Fiscal Year

As is evident in the above representation of energy purchased, the consumption of electricity increased slightly in fiscal year 2012/13. The specific consumption goal for electricity for the fiscal year 2012/13 was slightly exceeded. A goal was defined for specific site electricity consumption based on the measures defined in the environmental program together with the planned production capacity utilization levels for the fiscal year 2013/14. Because of the technological innovations already mentioned and the completed expansions of the operational locations we therefore also regard the linear continuation of electricity consumption to be a challenging objective. A positive factor emerges when looking in detail at the analysis of the energy statistics for the site in the fiscal year 2012/13: A significant percentage (approximately 20%) of the overall necessary energy was provided internally by means of the use of waste heat, heat reclamation and waste heat from electricity consumers. The conversion of heating supply technologies to district heating resulted as planned in a significant reduction in natural gas consumption from a typical rate of approximately 10% to the current level of 2.3% of the total consumption. Thus the original natural gas consumption in the area of heating and air conditioning was reduced in fiscal year 2012/13 from the level in the fiscal year 2010/11 comparison period by almost 80%. This means a CO2 savings of approximately 3,000 t for the reporting period in the previous fiscal year. The consumption of “extra-light” heating oil (EL), necessary for diesel emergency power generators, was also very low during the period under consideration.

Chemicals and Gases In the area of chemicals and gases, in fiscal year 2012/13 the previous fiscal year level of specific consumption

16

Consumption of Chemicals and Gases in kg/cm2 Silicon Surface Area Normalized per Fiscal Year - 2012/13

0.15

0.020 Basic Gases Infrastructure Chemicals Inorganic Chemicals Solvents Process Gases

0.015

0.10

0.010

0.05

0.005

0.00

03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13

[kg/cm2] Infrastructure Chemicals, Inorganic Chemicals, Solvents, Special Gases

0.08 Total Energy Electricity Natural Gas District Heating Emergency Current

[kg/cm2] Basic Gases

0.8

was by and large maintained, with the exception of basic gas consumption. The clearly continued increase in consumption of basic gases, in particular nitrogen, is a result of underutilization and standby operation of installed plant capacities. [kWh/cm2] Petroleum EL

[kWh/cm2] Total Energy, Electricity, Natural Gas, District Heating

Energy Consumption in kWh/cm2 of Silicon Surface Normalized per Fiscal Year 2013/14

0.000

Fiscal Year

Waste Management Based on EMAS III Regulation Annex IV (Item C.2.c.iv), the present updated Environmental Statement includes an enhanced presentation of waste management. In the last fiscal year it was possible to reduce the total quantity of waste as well as individual fractional amounts of relevant quantities as listed below, once construction activities were completed. This is particularly evident in the area of specific waste volumes. The only increase was a slight rise in the specific volume of hazardous waste. This increase can be explained by the slight increase in the amount of spent sulfuric acid from purification and a considerable increase in other aqueous concentrates. These aqueous concentrates are specially separated and collected waste waters which, because of their chemical contamination, can not be treated in the plant’s own waste water purification system and therefore require special disposal. The rigorous realization of a recycling concept for spent solvent mixtures significantly reduced the amount of spent solvent mixtures disposed of (see section on hazardous waste). In the area of non-hazardous waste, slurries from the waste water purification system, domestic waste and commercial waste were slightly reduced as the result of rigorous plant-internal waste management logistics. At the Villach site, Infineon Technologies Austria AG highly values its plant-internal recycling networks. Thus all employees are called on to collect and separate waste and

to reduce the amount of recyclable materials in residual waste volumes. The essential fractions of hazardous and non-hazardous waste handled by commissioned waste collectors and waste treatment specialists are covered by the area of recycling. Thus the non-hazardous calcium

fluoride slurry from the waste water treatment system is used in the construction industry, spent sulfuric acid is used for neutralization purposes, spent solvents are subject to thermal combustion and domestic and commercial waste is thermally utilized via a waste incineration plant.

Non-Hazardous Waste The following is a summary of the non-hazardous waste for the site, broken down into the main contributes and their recycling flows. Production Waste from Production Total amount of non-hazardous waste

2010/11 3,210.91

2011/12 3,523.20

2012/13 3,460.88

Unit t

Portion of which materially recycled (not thermal)

300.34

382.74

280.31

t

Portion of which thermally recycled

110.78

103.77

102.07

t

Portion of which disposed of

2,799.80

3,036.70

3,078.50

t

Production Waste – Site Remainder (e.g. Periphery. Facilities. Office Space) Total amount of non-hazardous waste

2010/11 917.71

2011/12 1,069.28

2012/13 867.72

Unit t

Portion of which materially recycled (not thermal)

313.01

324.98

322.46

t

Portion of which thermally recycled

30.14

29.68

39.54

t

Portion of which disposed of

574.57

714.63

505.72

t

Packaging Total amount of non-hazardous waste

2010/11 344.37

2011/12 442.38

2012/13 251.18

Unit t

Portion of which materially recycled (not thermal)

179.05

170.90

145.04

t

Portion of which thermally recycled

165.32

271.48

106.14

t

Portion of which disposed of

-

-

-

t

The essential components in non-hazardous waste in fiscal years 2010/11, 2011/12 and 2012/13 were: Non-Hazardous Waste Slurries from the waste water treatment system

2010/11 2.784

2011/12 3,020

2012/13 3062

Unit t

Domestic waste and commercial waste

460

570

445

t

Grease separator contents (kitchen)

124

136

136

t

Iron and steel waste (industrial scrap)

219

258

156

t

Waste paper

179

171

145

t

Biogenic waste

138

138

138

t

Construction and demolition waste wood

103

132

52

t

Waste wood

165

269

105

t

17

Hazardous Waste The amount of hazardous waste in fiscal year 2012/13 resulted primarily from a slight increase in the contribution from spent sulfuric acid due to dilution and a significant increase in non-distillable spent solvent mixtures. Recycling for these non-distillable spent solvent mixtures was optimized in an additional recycling attempt for DMF with an external recycler. Production Waste from Production Total amount of hazardous waste

2010/11

2011/12

1,231.82

1,805.95

2012/13 1,901.87

Unit t

Portion of which materially recycled (not thermal) or recycled

532.15

841.07

865.78

t

Portion of which thermally recycled

492.04

761.39

583.45

t

Portion of which disposed of

207.64

203.49

452.64

t

Production Waste – Site Remainder (e.g. Periphery. Facilities. Office Space) Total amount of hazardous waste

2010/11

2011/12

88.50

125.74

2012/13 85.22

Unit t

Portion of which materially recycled (not thermal)

32.32

35.04

21.83

t

Portion of which thermally recycled

54.12

88.44

62.61

t

Portion of which disposed of

2.05

2.28

0.79

t

Packaging Total amount of hazardous waste

2010/11

2011/12

20.16

22.58

2012/13 23.25

Unit t

Portion of which materially recycled (not thermal)

4.09

4.59

6.30

t

Portion of which thermally recycled

16.08

17.96

16.95

t

Portion of which disposed of

-

-

-

t

The hazardous wastes of the site are essentially composed of the following: Hazardous Waste Solvent mixtures 1)

2012/13 564

Unit t

Spent acids (sulfuric acid)

527

837

862

t

Other aqueous concentrates

207

203

452

t

Without notified and recycled spent solvents

Due to the detailed monitoring and rigorous use of recycling, the profit contribution in waste management (revenues) in the fiscal year 2012/13 was almost 15%. In the area of plant-internal recycling of spent solvent by redistillation the amount of DMF recycled was returned to approximately 30%. Due to technology-specific admixture, since fiscal year 2012/13 the solvent PGMEA has no longer been recycled plant-internally, but rather by an external recycler, resulting in a clear increase in the recycling rate to approximately 25%. The solvents ketocyclopentane and N-Methyl-pyrrolidone have been recycled externally for several years now in terms of closed loop recycling management, with recycling rates of between 50% and 65%. In order to avoid duplicate reporting of spent solvent mixtures, such notified waste/material fractions are not included in the waste reports above.

18

2011/12 745

It should also be noted that our spent solvent mixtures are thus not only valuable energy carriers in the area of thermal recycling, but also valuable secondary raw materials. Waste in kg/cm2 Silicon Surface Area Normalized per Fiscal Year - 2012/13 0.018

0.015

Total Waste Non-Hazardous Waste Hazardous Waste with Sulfuric Acid Hazardous Waste without Sulfuric Acid

0.012 [kg/cm2]

1)

2010/11 480

0.009

0.006

0.003

0.000

03/04 04/05 05/06 06/07 07/08

08/09 09/10

Fiscal Year

10/11

11/12 12/13

Water requirements at the Villach site are for the most part covered by water from the site’s own wells. Approximately one third of site-produced water is treated to produce ultra pure water for production using special treatment systems. The water for production and infrastructure system cooling is made available on-site. We purchase drinking water and water for sanitary installations from the local utility provider. In the fiscal year 2012/13 it was not possible to further reduce specific water consumption and the specific waste water volume due to the underutilization of installed production capacities already mentioned. Specific water consumption was at 8 l/cm² (target: 7.3 l/cm²) and waste water consumption at 3.9 l/cm² (target: 3.3 l/cm²) in relation to the amount of silicon surface area produced. Based on the existing consumption amounts, new consumption goals were defined for the fiscal year 2013/14 (see graphic).

Water Consumption and Waste Water Volumes from Production in m3/cm2 Silicon Surface Area Normalized per Fiscal Year 0.020

Water Consumption Waste Water from Production

0.015

m3/cm2

Water and Waste Water Treatment

0.010

0.005

0.000

04/05

05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 Fiscal Year

Contaminated waste water from production is purified by the in-plant waste water treatment plant, equipped with state-of-the-art automatic online analysis functions and corresponding retention basins. Typical values for our waste water ingredients for direct and indirect introduction are listed in the following tables.

Sampling Container OWWE Semiconductors - Indirect - External Monitoring Substance

Unit

Filterable substances

mg/l

250

Official Limit Value

Measured Value 10/11 Measured Value 11/12 Measured Value 12/13 86.0

21.0

94.0

Ammonium – N (NH4)

kg/d

240

93.6

179.4

196.5 49.0

Fluoride (F)

mg/l

50.0

60.0 1)

49.0

Phosphorus (P total)

kg/d

60.0

48.3

49.2

35.1

Nitrogen (N total) 1)

kg/d

250.0

247.6

390.4

393.0

Sulfate (SO4)

mg/l

400.0

146.0

152.0

169.0

AOX 2)

mg/l

0.50

0.06

0.03

0.02

Copper (Cu)

mg/l

0.10

0.03

0.03