Environmental Sustainable Growth - UMC

Contents 

Environmental Sustainable Growth 

Cleaner Production 16 

Environmental Management 24 

Climate Change and Global Warming 28 

2006 Corporate Social Responsibility Report - 15

Environmental Sustainable Growth 

Various international protocols and regional 

conventions on environmental protection 

have been conducted over the years to 

seek answers for common problems that 

the global community has faced. To follow 

international trends and the demands of 

the industry, UMC follows all government 

environmental protection laws with the aim 

of exceeding the requirements for these 

laws. Related international standards 

on environmental protection are also 

considered. Furthermore, UMC expects to 

remain as a green enterprise by exerting 

greater effort into cleaner production, 

industrial waste reduction, pollutant 

prevention and risk management. 

Cleaner Production 

The definition for cleaner production is 

"continually adopting and integrating 

preventive environmental strategies in 

processes, products and ser vices to 

increase Eco-efficiency as well as to lower 

the impacts on human and environment." 

Strategies adopted for the process aspect 

include saving the materials and energy 

used, decreasing or avoiding the use of 

hazardous substances, and reducing the 

volume and the toxicity of emissions. In the 

product aspect, product life cycle evaluation 

to lower the impact on the environment is 

held regularly. 

Reuse / Recycle 

Pollutants 

Pollutant Control 

Pollutant Prevention 

Material Process 

Product Services 

Source Improvement and Process 

Improvement 

The rapid amendment and addition to 

government laws result in significant 

operation costs for every industry. UMC 

aggressively promotes cleaner production 

for the purpose of sustainable operation 

and development. In addition to building up 

comprehensive databases to manage the 

procurement and utilization of materials, 

UMC also implements projects for source 

improvement and process improvement 

through ad hoc project management. 

Those projects are aimed at reducing 

materials and waste to enhance UMC’s 

competitiveness, including the adoption of 

new technologies and the improvement and 

optimization of processes. 

-Material Resources Management 

There are many different types of materials 

used in semiconductor processes; therefore 

UMC selectively chooses several items to 

continually monitor according to the result 

of life cycle assessment and items that are 

used more frequently. Among those, the 

usage of H 2 SO 4 , HF, H 2 O 2 , NaOH, N 2 and 

O 2 in the past three years are charted as 

below: 

H 2 SO 4 Usage 

(metric ton) 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

H 2 SO 4 Usage 

2004 2005 2006 

H 2 SO 4 Usage per Unit 

(kg/m 2 x100) 

Waste Minimization 

Cleaner Production Related Chart 

16 - 2006 Corporate Social Responsibility Report

Environmental Sustainable Growth (cont.) 

HF Usage 

(metric ton) 

1,000 

800 

HF Usage 

Accumulated Reduction Resultes for Green Production 

Items 

Fab NTD 

C 2 F 6 IPA HF Photoresist 

Fab6A 8,780,160 

600 

400 

200 

0 

2004 2005 2006 

HF Usage per Unit 

(kg/m 2 x100) 

Fab8AB 6,872,438 19,090,761 

Fab8C 12,554,360 20,274,436 

Fab8D 

Fab8E 54,975,513 

H 2 O 2 Usage 

(metric ton) 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

NaOH Usage 

(metric ton) 

9,000 

8,000 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

N 2 Usage 

(Nm 3 ) 

350,000,000 

300,000,000 

150,000,000 

100,000,000 

50,000,000 

O 2 Usage 

(Nm 3 ) 

6,000,000 

5,000,000 

4,000,000 

3,000,000 

2,000,000 

1,000,000 

0 

0 

H 2 O 2 Usage 

2004 2005 2006 

NaOH Usage 

2004 2005 2006 

N 2 Usage 

2004 2005 2006 

O 2 Usage 

2004 2005 2006 

H 2 O 2 Usage per Unit 

(kg/m 2 x100) 

HaOH Usage per Unit 

(kg/m 2 x100) 

O 2 Usage per Unit 

(kg/Nm 3 /m 2 x10 5 ) 

N 2 Usage per Unit 

(kg/Nm 3 /m 2 x10 5 ) 

Fab8F 1,221,340 80,617,296 

Fab12A 1,708,849 13,427,975 

Total 12,554,360 6,872,438 2,930,189 197,166,141 

Ratio in UMC 

Total 

Decreased 

Amount 

3.41% 14.70% 6.46% 16.16% 

- Results of Ad Hoc Project Management 

In addition to building up comprehensive 

databases to manage the procurement 

and utilization of materials, UMC also 

implements green projects for source 

improvement and process improvement 

in each fab through ad hoc project 

management. UMC management’s close 

attention to ad hoc projects will drive 

employees to implement this project for 

the purpose of process improvement and 

optimization. The results for the previous 

year are significant- costs of materials in 

the year decreased by NT$ 0.2 billion. 

Water Conservation and Management 

Water reservation is not easy in Taiwan 

due to great fluctuations in rainfall from 

rainy to dry seasons. Every industry will 

face water shortages during extended dry 

weather periods. Currently Fongshan River, 

Toucian River and groundwater cannot 

provide sufficient water for the Hsinchu 

area, especially when water for industrial 

purposes accounts for a large portion of all. 

Since expanding the Hisnchu Science Park 

is a primary goal for national development, 

stable water supply will remain as an urgent 

issue for this area. The water resource 

deployment plan primarily relies on Lung- 



en Weir, Pao-shan Reservoir and Pao-shan 

Second Reservoir. Lung-en Weir will be the 

first source, followed by the others. If the 

water supply is stillinsufficient, other local 

water resources will be redeployed such as 

from Yung-Ho-Shan Reservoir and other 

agriculture water sources. 

UMC does monitor the water utilization 

status in each fab due to occasional water 

shortages in Taiwan. As demand for water 

has risen due to fab expansion in recent 

years, UMC expects to lower the demand 

pressure for water by further expanding 

water recycling and reuse. This is to make 

the best use of limited water resources. 

Although water consumption in the past 

five years has been going up, the recycling 

volume and recycling rate has also been 

going up accordingly (Fab 12i has been 

included in the statistics since 2004, and 

50,000 

40,000 

30,000 

20,000 

10,000 

0 

100 

80 

60 

40 

20 

0 

2002 2003 2004 2005 2006 

Water Used 

Water Recycled 

2002 2003 2004 2005 2006 

Process Water Recycling Rate 

Total Water Recycling Rate 

■ Adopt CMP recycled water as cooling and 

cleansing water for wastewater treatment 

systems. 

■ Use ozone to disinfect within the DI 

s y s t e m p i p e s t o r e d u c e w a t e r 

consumption during flush. 

■ Set up the most appropriate water 

consumption needed in each restroom. 

Pollutant Emission and Control 

End pipe treatment has been seen as the 

last measure in recent years. In pollution 

control, UMC develops technologies to meet 

new laws or standards in environmental 

protection, while continuing to introduce 

highly efficient technologies and equipment 

for self-management by taking the overall 

environment into c onsideration. A ll 

pollution control equipment is operated 

and maintained by professional teams. The 

operation of all equipment is included in the 

central monitoring system and is monitored 

24 hour s a day to ensure emission 

quality. In addition, each fab will conduct 

examinations at wastewater and waste gas 

end pipes. The results in each year are in 

compliance with government’s standards. 

All examination results in 2006 are listed as 

below. 

25,000 

20,000 

15,000 

10,000 

5,000 

Silicon Integrated Systems Corp. has been 

included in the same year after the merger). 

-UMC's Water Conservation Measures 

■ Adjust the manufacturing process recipe 

to lower water consumption for each 

piece of equipment. 

0 

2004 2005 2006 2005 2006 

Waste Water Discharged 



Results of Wastewater Examination at each fab in 2006 

Results in Q1 2006 

No. Items 6A 8E 8F 8S 12A Li-Hsin Fabs Administration 

Standard 

Unit 

Note 

1 pH 6.8 7.4 8.0 6.9 6.4 7.1 5~10 - - 

2 Water Temperature 26.6 23.9 22.3 26.0 24.6 23.1 35 ℃ - 

3 Suspended Solids (S.S) 2.6 124 70.0 118 183 59.0 

HsinChu: 300 

South Taiwan: 

250 

mg/L 

MDL=0.5mg 

4 

Biological Oxygen Demand 

(BOD) 

4.9 52.6 28.6 28.4 113 15.7 

HsinChu: 300 

Southern 

Taiwan: 250 

mg/L 

- 

5 Fluorides 7.59 4.84 6.68 0.45 4.53 7.8 15.0 mg/L MDL=0.019 

6 

Chemical Oxygen Demand 

(COD) 

86.2 90.3 41.6 40.1 207 68.8 

HsinChu: 500 

Southern 

Taiwan: 450 

mg/L 

MDL=2.8 


No. Items 6A 8E 8F 8S 

Li-Hsin 

Fabs 

HSPA 

Standard 

12A 

STSPA 

Standard 

Unit 

Note 

1 pH 6.4 7.6 8.1 6.6 7.4 5~10 6.0 5~10 - - 

2 Water Temperature 26.7 27.8 24.9 25.7 24.2 35 25.0 35 ℃ - 

3 

4 

Suspended Solids 

(S.S) 

Biological Oxygen 

Demand (BOD) 

12.0 224 33.5 30.4 110 300 139 250 mg/L MDL=0.5mg 

14.2 24.1 28.3 8.6 9.8 300 22.3 250 mg/L - 

5 Fluorides 8.46 7.98 4.36 9.00 6.82 15.0 9.14 15.0 mg/L MDL=0.019 

6 

Chemical Oxygen 

Demand (COD) 

47.3 49.3 55.2 17.7 25.6 500 82.8 450 mg/L MDL=2.8 



Li-Hsin 

Fabs 

HSPA 

Standard 

12A 

STSPA 

Standard 

Unit 

Note 

1 pH 7.0 7.0 6.7 7.2 7.0 5~10 6.9 5~10 - - 


3 

4 


(S.S) 


Demand (BOD) 

3.2 262 49.0 27.9 144 300 203 250 mg/L MDL=0.5mg 

47.5 27.6 13.7 27.9 14.3 300 89.0 250 mg/L - 


6 


Demand (COD) 

96.6 61.1 35.5 59.1 27.6 500 174 450 mg/L MDL=2.8 





Li-Hsin 

Fabs 

HSPA 

Standard 

12A 

STSPA 

Standard 

Unit 

Note 

1 pH 6.1 6.7 8.2 6.4 7.8 5~10 6.6 5~10 - - 


3 

4 


(S.S) 


Demand (BOD) 

9.4 158 66.0 20.0 130 300 175 250 mg/L MDL=0.5mg 

22.3 17.6 4.1 9.1 23.1 300 43.7 250 mg/L - 


6 


Demand (COD) 

68.0 68.0 11.5 26.0 76.0 500 180 450 mg/L MDL=2.8 

HSPA: Hsinchu Science Park Administration 

STSPA: Southern Taiwan Science Park Administration 

Examination Results of UMC Fabs' Exhaust Pipes in 2006 

FAB6A 

Pipe No. 

NH 3 

kg/hr 

H 2 SO 4 

kg/hr 

HCI 

kg/hr 

HF 

kg/hr 

HNO 3 

kg/hr 

H 3 PO 4 

kg/hr 

CI 2 

kg/hr 

Reduction Rate 

of VOCs (%) 

P001 2.55×10 -3 4.59×10 -4 1.49×10 -3 

P005 3.58×10 -3 7.51×10 -3 2.09×10 -3 

P008 6.33×10 -3 2.58×10 -3 1.42×10 -3 5.98×10 -4 3.73×10 -5 

P009 96.6 

P010 96.8 

P012 6.72×10 -5 9.81×10 -5 1.92×10 -3 

P014 2.23×10 -3 2.67×10 -4 1.15×10 -4 1.12×10 -4 6.52×10 -4 1.28×10 -5 2.67×10 -3 

FAB8A 

Pipe No. 

NH 3 

kg/hr 

H 2 SO 4 

kg/hr 

HCI 

kg/hr 

HF 

kg/hr 

HNO 3 

kg/hr 

H 3 PO 4 

kg/hr 

CI 2 

kg/hr 


of VOCs (%) 

P003 2.7X10 -4 5.5X10 -4 4.6X10 -4 2.4X10 -4 6.0X10 -5 6.16X10 -3 

P005 2.6X10 -4 1.02X10 -3 1.8X10 -3 8.7X10 -4 4.0X10 -5 4.12X10 -3 

P007 1.2X10 -4 3.4X10 -4 3.34X10 -3 2.5X10 -3 9.0X10 -5 2.97X10 -3 

P010 2.56X10 -3 

P011 97.5 

P012 3.13X10 -3 1.0X10 -4 9.1X10 -4 3.1X10 -4 2.0X10 -5 

P201 



FAB8B 

Pipe No. 

NH 3 

kg/hr 

H 2 SO 4 

kg/hr 

HCI 

kg/hr 

HF 

kg/hr 

HNO 3 

kg/hr 

H 3 PO 4 

kg/hr 

CI 2 

kg/hr 


of VOCs (%) 

P003 2.69X10 -3 9.2X10 -4 2.06X10 -3 6.8X10 -4 2.3X10 -4 4.76X10 -4 

P005 6.0X10 -5 1.4X10 -4 4.0X10 -5 1.6X10 -4 2.0X10 -5 2.31X10 -3 

P013 2.6X10 -3 

P022 98.7 

FAB8C 

Pipe No. 

NH 3 

kg/hr 

H 2 SO 4 

kg/hr 

HCI 

kg/hr 

HF 

kg/hr 

HNO 3 

kg/hr 

H 3 PO 4 

kg/hr 

CI 2 

kg/hr 


of VOCs (%) 

P004 8.58×10 -4 4.69×10 -4 1.53×10 -2 5.77×10 -5 5.77×10 -5 5.53×10 -3 

P006 3.35×10 -3 

P009 94.1 

P010 5.29×10 -4 1.80×10 -3 3.26×10 -3 1.54×10 -3 7.12×10 -5 6.82×10 -3 

P302 

FAB8D 

Pipe No. 

NH 3 

kg/hr 

H 2 SO 4 

kg/hr 

HCI 

kg/hr 

HF 

kg/hr 

HNO 3 

kg/hr 

H 3 PO 4 

kg/hr 

CI 2 

kg/hr 


of VOCs (%) 

P003 4.59×10 -4 4.48×10 -4 1.56×10 -3 2.40×10 -4 5.73×10 -5 5.65×10 -3 

P006 2.24×10 -3 5.48×10 -4 1.99×10 -3 2.20×10 -4 5.77×10 -5 5.70×10 -3 

P007 2.3×10 -4 

P009 98.5 

P010 9.49×10 -5 1.51×10 -4 1.15×10 -3 7.87×10 -5 3.78×10 -5 1.92×10 -3 

P012 1.3×10 -4 



FAB8E 

Pipe No. 

NH 3 

kg/hr 

H 2 SO 4 

kg/hr 

HCI 

kg/hr 

HF 

kg/hr 

HNO 3 

kg/hr 

H 3 PO 4 

kg/hr 

CI 2 

kg/hr 


of VOCs (%) 

P002 96.6 

P004 2.26×10 -3 1.33×10 -3 4.51×10 -3 1.67×10 -3 8.07×10 -5 7.77×10 -3 

P005 6.68×10 -3 

P007 9.55×10 -4 3.83×10 -4 2.76×10 -2 6.92×10 -4 3.05×10 -5 2.90×10 -3 

P009 2.32×10 -3 

P011 5.64×10 -4 2.92×10 -3 7.07×10 -2 2.32×10 -3 5.71×10 -5 5.50×10 -3 

P201 

FAB8F 

Pipe No. 

NH 3 

kg/hr 

H 2 SO 4 

kg/hr 

HCI 

kg/hr 

HF 

kg/hr 

HNO 3 

kg/hr 

H 3 PO 4 

kg/hr 

CI 2 

kg/hr 


of VOCs (%) 

P001 5.73×10 -4 2.54×10 -3 3.38×10 -3 1.90×10 -4 6.93×10 -5 5.89×10 -3 

P006 1.35×10 -4 4.70×10 -4 8.26×10 -3 2.03×10 -3 1.12×10 -3 2.67×10 -3 

P008 3.31×10 -3 

P009 97.6 

P010 1.54×10 -4 4.27×10 -4 3.83×10 -3 3.06×10 -4 2.80×10 -5 2.82×10 -3 

P012 2.23×10 -3 

P202 



FAB8S 

Pipe No. 

NH 3 

kg/hr 

H 2 SO 4 

kg/hr 

HCI 

kg/hr 

HF 

kg/hr 

HNO 3 

kg/hr 

H 3 PO 4 

kg/hr 

CI 2 

kg/hr 


of VOCs (%) 

P003 1.22×10 -4 6.45×10 -4 3.25×10 -3 1.39×10 -4 3.91×10 -5 3.90×10 -3 

P008 8.15×10 -2 

P009 1.25×10 -5 2.77×1054 5.24×10 -5 1.05×10 -5 2.93×10 -6 2.53×10 -4 

P010 93.7 

FAB12A 

Pipe No. 

NH 3 

kg/hr 

H 2 SO 4 

kg/hr 

HCI 

kg/hr 

HF 

kg/hr 

HNO 3 

kg/hr 

H 3 PO 4 

kg/hr 

CI 2 

kg/hr 


of VOCs (%) 

P002 6.27×10 -4 2.08×10 -4 2.03×10 -4 1.41×10 -3 3.91×10 -5 3.97×10 -3 

P006 8.93×10 -5 2.48×10 -4 6.12×10 -4 1.43×10 -4 1.86×10 -5 1.88×10 -3 

P008 6.50×10 -3 

P011 1.43×10 -3 

P014 4.37×10 -4 9.58×10 -4 5.47×10 -4 1.16×10 -3 6.61×10 -5 6.42×10 -3 

P016 96.6 

P017 97.8 

P019 2.13×10 -4 4.71×10 -4 9.03×10 -5 3.00×10 -4 5.03×10 -5 4.83×10 -3 

P023 5.28×10 -4 1.19×10 -3 7.64×10 -4 5.28×10 -4 5.76×10 -5 5.62×10 -3 

P027 7.29×10 -3 

P029 97.5 



-Waste M anagement and Resourc e 

Recycling 

UMC's waste management is based on an 

economic and effective waste management 

system to achieve the goal of handling 

waste safely, hygienically, hazard-free and 

resourcefully. Strategies include waste 

reduction, resource recycling and waste 

treatment. UMC promotes waste and 

resource recycling based on the concept of 

green production. UMC hopes to achieve 

the goal of waste reduction through source 

management measures such as process 

improvement and materials reduction. 

Moreover, UMC aggressively promotes 

waste recycling and reuse to replace 

current end pipe treatment measures to 

transform garbage into useful resources. 

This not only lowers the resources and 

costs to handle the waste but also helps 

to ease environmental strain. Finally, UMC 

regularly checks waste treatment vendors, 

strictly controls the flow of the waste and 

implements optimized measures to handle 

the waste. 

In 2006, UMC produced a total of 15,265 

metric tons of waste, in which 12,103 metric 

tons were recycled, resulting in a recycling 

rate of 79%. Most of the recycled waste are 

solvents, sulfuric acid and sludge. Waste 

produced is climbing in recent years due 

to volume production of Fab 12A; however 

waste being recycled and reuse is climbing 

as well. 

Sulfuric Acid 29% 

Water Recycling Ratio in 2006 

Other 15% 

Solvents 33% 

Sludge 23% 

Solvents 

Sludge 

Other 

Sulfuric Acid 

Weight (tons) 

20000 

15000 

10000 

5000 

0 

2002~2005 Waste Recycling Rate 

2002 2003 2004 2005 2006 

Waste Volume Recycling Volume Recycling Rate 

Ratio 

86% 

84% 

82% 

80% 

78% 

76% 

74% 

72% 

70% 

Environmental Management 

The rise of environmental protection 

awareness benefits those companies 

who have outstanding performance in 

environmental protection work while 

competing in the international market. 

Therefore, UMC has continued to put efforts 

in environmental protection work over 

the years. Environmental management 

tools have been introduced wthin UMC, 

such as environmental management 

system, product life cycle assessment, 

environmental accounting system and 

others. UMC expects to continually and 

spontaneously make improvements by 

adopting environmental management 

measures to achieve the practical goal of 

improving and lowering the impacts on the 

environment. 

Environmental, Safety and Health 

Management System 

As issues in environmental, safety and 

health become diverse and significant, 

GRM& ESH Division was established 

in 1998 to be responsible for planning 

the company's policy and strategies for 

risk management. Moreover, GRM&ESH 

Division introduces effective systems and 

provides safety and health expertise to 

build a safe, healthy and nature-friendly 

environment. An environmental safety and 

health management committee is formed in 

each fab to discuss self-managed items. In 

addition, a company-wide industrial safety 

meeting is held quarterly and attended by 



high-level executives. This quarterly meeting 

is held to discuss issues that include 

environmental safety and health operation, 

international environmental, safety and 

health trends and execution suggestions. 

This meeting also is held to periodically 

review the results and performance of 

the company’s environmental safety and 

health operations. With the participation 

and support of high-level executives, UMC 

builds a top-down, communication-effective 

environmental, safety and health system. 

- Certification for ISO14001&OHSAS18001 

UMC is aggressively involved in the 

establishment and execution of safety 

and health management system since the 

establishment of international standards. 

F a b 8 C p r o m o t e d e n v i r o n m e n t a l 

management system and safety and 

health system at the same time and was 

certificated for ISO14001&OHSAS18001 

in 2000. In 2001, UMC led the industry in 

certification as the whole company received 

ISO14001 and OHSAS18001 certifications. 

to request detailed environmental impact 

evaluations for various products during the 

stages of material exploit, manufacturing, 

assembling, selling, utilizing and disposing, 

to seek ideal manufacturing methods that 

cause minimum impact on the environment. 

This is the concept of Life Cycle for product 

management. 

Life Cycle Assessment (LCA) is an essential 

tool for environmental management 

developed in 1960s. LCA refers to the 

process of a product from materials, 

manufacturing, and utilization to discard, 

from the cradle to the grave. According 

to the definition of ISO 14040, LCA is a 

method used to evaluate environmental 

factors and potential impacts of a product. 

Therefore, each product can use LCA 

as a tool for improvements in processes, 

activities, and the product itself while 

pollution occurs. This will further help 

decision makers take more environmental 

measures into their consideration. 

System Boundaries 

Product System 

Enter 

Processes 

Enter 

(Materials) 

Acquire 

.... Disposal 

Life Cycle 

Waste 

Life Cycle Assessment 

Environment (not disturbed by human factors) 

The Definition of Life Cycle Assessment 

Product Life Cycle Assessment 

Recycling Rate 

System 

Establishment 

ISO 14040 

Life Cycle Assessment 

Choice of packaging / 

materials 

Reuse / Recycle System 

After managing back-end pollution control 

for twenty years, European countries 

and Japan now realize that pollution 

resulting from product consumption will 

exceed pollution resulting from product 

manufacturing. Therefore they have begun 

Costs 

Environmental Concerns 

Green Marketing / 

Customer Requirement 

The Application of Life Cycle Assessment 



In 20 05, UMC authorized Industrial 

Technology Research Institute (ITRI) to 

implement Life Cycle Assessment in each 

fab. From raw silicon to chips, investigations 

w e r e c o n d u c t e d t a r g e t i n g e n e r g y 

consumption, materials and pollutants of 

each product. Through the evaluation of 

environmental impact on the entire supply 

chain and manufacturing processes, the 

impact on the environment resulting from 

products is clarified and the result of 

evaluations is used as a reference for the 

environmental management system. 

Fab basic information check 

Material consumption check 

Water, electricity, fuel and 

wafer check 

Pollutant emission check 

Supplier information 

confirmation 

Information 

standardization 

Index calculation 

Index analysis 

Impact assessment 

Report drafting 

Supplier information check 

Life-Cycle Assessment Flow at UMC 

Supplier information 

response 

UMC has already completed an "Eco- 

Profile" in all its 150mm fabs and 200mm 

fabs. Externally, Eco-Profile conforms to 

all international environmental protection 

regulations and can be provided to UMC's 

customers as a reference for the impact on 

the environment in product manufacturing 

processes; internally, it can be used as a 

basic standard for further improvement. 

According to the evaluations, the major 

material used in manufacturing processes 

is water, followed by air, coal and crude oil. 

However, air is deemed as a renewable 

resource that cannot be depleted. Water 

consumption causes the most impact 

to the environment, followed by energy 

consumption and the greenhouse effect. 

Environmental Accounting System 

At present enterprises' 

efforts in environmental 

p r o t e c t i o n a d d r e s s 

investment in current 

t e c h n o l o g i e s a n d 

equipment, and aims 

to elaborate the overall 

functions by combining 

efficient environmental 

management tools. 

Among various environmental 

management 

tools, environmental 

a c c o u n t i n g s y s t e m 

provides the foundation 

for corporate environmental reports and 

plays the role as the medium for information 

disclosure. 

Environmental accounting, also known as 

green accounting, is a critical information 

tool that helps to understand the impact and 

influences on the environment in national 

economic development and corporate 

business operations by c alculating 

environmental costs. It is crucial in lowering 

the harm on the environment and improving 

environmental protection results. UMC 

implemented its environmental accounting 

system and became the first high-tech 

corporation to use an accounting method 

so comprehensive. UMC’s environmental 

ac c ounting system is based on the 

classifications of Japan Ministry of the 

Environment. In addition to an environmental 

finance system, UMC established a financial 

information system for safety and health. 

The UMC environmental accounting system 

combines current accounting systems and 

uses pattern comparison and an internal 

coding method to calculate UMC’s invested 

costs and expenditures on environmental 

protection. This helps UMC conduct 



overall environmental benefit evaluations 

and conduct decision-making analyses. 

UMC also established an e-database 

for information collection, sorting out 

related expenditure and expenses and 

conducting calculations and 

analyses every month for 

management. Based on the 

information, management 

draws up cost- ef f icient 

environmental management 

measures to cover both 

business operations and 

environmental protection. 

- Environmental Protection 

Expenditure Report 

UMC's determination in 

environmental protection 

can be demonstrated by 

its significant expenditure 

annually in environmental 

protection. In 2006, UMC's 

total capital expenditure for 


equipment was NT$ 743 

million, accounting for 0.71% 

of UMC’s overall capital 

ex p enditure. T he main 

portion of this expenditure, 

87.67%, was used for fees 

associated with the annual 

maintenance of various 

pollution prevention and 

control equipment, followed 

by waste treatment and 

resource recycling and 


related management and 

activities costs. NT$1.43 

million was used for global environmental 

protection issues. 

Estimated expenditures in 2007 include: 

1. Modernization and upgrade of current 

pollution control facilities, 2. Operational 

fees of NT$ 28 million per month for 

pollution control facilities, 3. Handling fees 

related to waste treatment of NT$ 4.2 million 

per month and 4. Environmental monitoring 

Environmental Protection Expenditure Report in 2006 

Classifications in 

Environmental Costs 

1.Direct costs to lower 

loads on the environment 

2.Indirect costs to lower 

loads on the environment 

3. Other costs in 


(1) 

4. Other costs in 


(2) 

Illustration 

In thousands NTD 

Capital 

Expenditure 

Expenses 

1-1 Pollution control costs, including: 

a. Air pollution control 

b. Water pollution control 

c. Other pollution control 

d. Above expenses include environmental 

personnel expenses 317,475 326,724 

1-2 Drainage utilization fees 0 34,416 

1-3 Handling fees for waste treatment 0 49,287 

2-1 Environmental monitoring fees 0 3,194 

2-2 R&D fees in environmental protection 0 1,428 

3-1 Environmental training fees 

3-2 Management systems implementation 

fees and verification fees 

3-3 Derivative fees from waste reduction 

and recycling 

3-4 Derivative fees for improving water 

resource's efficiency 

3-5 Expenses in global environmental 

protection 

4-1 Soil rebuild and environment 

renovation fees 

4-2 Environmental pollution insurance fees 

4-3 Government taxes for environmental 

protection 

4-4 Penalties and lawsuit fees for 

environmental problems 

0 10,764 

0 0 

amount 317,475 425,813 

Waste Treatment 

Fees 6.63% 

NT$ 49.29 million 

Management and 

Activities costs 6.70% 


Pollution 

Prevention 

Fees 86.67% 


Environmental Protection Expenditure Ratio in 2006 



Climate Change and Global 

Warming 

Global climate change results from 

accumulated occurrences over thousands 

of years. Human activities significantly 

influence the earth's climate; greenhouse 

gases are rapidly discharged into the air, 

which results in the enhancement of the 

greenhouse effect and the increase of the 

average temperature. Regional climate 

change not only changes the forests, the 

agriculture harvests and water supply 

but also poses threats tohumans and 

endangers birds, fishes and other ecological 

systems. The deserts expand to plains and 

many unique landscapes in national parks 

of each country will eventually disappear. 

Human's influence on the environment 

affects the surface of the earth as well as 

the air. Finally, the influence will expand to 

cover the globe as the air circulates. 

Greenhouse Gas Reduction and 

Management 

As global warming effects worsen, UMC 

hopes to fulfill its responsibility as a 

corporate citizen by helping to reduce the 

increasing emissions of global greenhouse 

gases. With a vision of sustained growth 

and operation, UMC's countermeasures are 

already in place. 

-Current Status of Greenhouse Gas 

Emissions 

UMC has established greenhouse gas 

emission inventory following the requirement 

of ISO 14064-1 and Greenhouse Gas 

Protocol. According to the data in 2005 

and 2006, the major sources of UMC's 

greenhouse gas emissions are CO 2 from 

power generating process and PFCs from 

semiconductor manufacturing processes 

such as CF 4 ,C 4 F 6 ,SF 6 ,NF 3 ,CHF 3 ,C 3 F 8 and 

C 4 F 8 . These two resources account for 94% 

of UMC's overall emission of greenhouse 

gases. 

UMC's Overall Emission of Greenhouse Gases 

Volume 

(tonnes CO2e) 

2,000 

1,800 

1,600 

1,400 

1,200 

1,000 

800 

600 

400 

200 

0 

Current Status of UMC's Greenhouse 

Gas Emissions (Note: Numbers in Taiwan 

in 2005 were confirmed by a third party 

verifier) 

Green House Gases 

from Power 

Generating 

Source of UMC's Greenhouse Gases 

-Reduction Plan 

2005 2006 

Others 

PFCs from Manufacturing Processes 

Green House Gases from Power Generating 

Other Source (N 2 O, Natural Gas, Diesel Oil...) 

PFCs from Manufacturing 

Processes 

Singapone 

Taiwan (R.O.C.) 

UMC established its "PFCs Emission 

Reduction Team" in 1999 to implement 

the reduction plan. Currently, UMC has 

targeted PFC emission reduction by "10% 

in 2010 compared to 1998 (the emission 

of 1998 is the MMTCE average of 1997 

and 1999) levels". PFCs are Perfluorinated 

Compounds that are used in semiconductor 

processes. Major elements of the PFC 

emission reduction plan include: 

1. U s e C 3 F 8 t o r e p l a c e C 2 F 6 i n 

semiconductor thin film process to lower the 

emission volume of greenhouse gases. 

2. Measure the utilization rate of machines 

that use PFCs and the reduction rate of 

the treatment equipment to master the 

efficiency of machines and hence conduct 

improvement measures toward inefficient 

machines. 



3. Conduct individual usage evaluation for 

each machine that uses PFCs to better 

understand greenhouse gas emissions for 

each machine. 

4. Continue researching and testing 

substitute gases, and lowering the use of 

gases with a high potential of contributing 

to the greenhouse effect by reducing the 

source emission. 

5. Meanwhile, in order to lower the PFC 

emissions year by year, UMC plans to install 

high efficiency PFC abatement systems 

after fully evaluating all new models. 

-Results 

UMC led the industry in replacing the high 

GWP (Global Warming Potential) gas C2F6 

with low GWP gas C3F8 in CVD chamber 

cleaning. In 2004, UMC’s Fab 8AB was the 

first foundry fab to complete gas substitution. 

Other fabs also completed gas substitution 

afterwards. UMC has outstanding results in 

PFCs reduction, estimated 548,649 tons of 

CO2e were replaced in 2006. 

For machines and equipment that measure 

Result of Replacing C 2 F 6 with C 3 F 8 in 2006 

Emission Volume ( tonnes CO 2 e/year ) 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

Before (C 2 F 6 ) After (C 3 F 8 ) 

Gases 

and control PFC gases , in addition to 

continually evaluating and adopting new 

equipment, UMC also measures the 

utilization rate of machines that use PFCs 

and the reduction rate of the treatment 

equipment to master the efficiency of 

machines and hence conduct improvement 

measures or optimization toward inefficient 

machines. Estimated results in 2006 were 

551,115 tons of CO2e. 

-Inventory and Verification 

U M C c o m p l eted t h e i nve ntor y a n d 

verification in greenhouse gas emissions 

with TSIA (Taiwan Semiconductor Industrial 

Association). The greenhouse gas emission 

inventory system has been established 

and qualified by a third party, and UMC 

has passed PFC emission requirements 

for all its Taiwan fabs. UMC will continue 

to require annual third party greenhouse 

gas emission inventory to ensure that UMC 

completely adheres to the current status of 

greenhouse gas usage. 

C e r t i f i c a t e f o r P a s s i n g G H G E V 

(Greenhouse Gas Emissions Verification) 

for All UMC Taiwan Fabs in 2005 

Energy Saving and Management 

Taiwan's power structure mainly relies on 

thermal power by burning petrochemistry 

fuel, which accounts for 76.3% of total 

power. UMC’s energy consumption mainly 

relies on electricity, followed by natural 

gas. UMC’s energy consumption status 

is charted below, though Fab 12i is not 

included since the calculating unit is 

different (LPG instead of NG is used in Fan 

12i). Silicon Integrated Systems Corp. was 

merged into UMC in 2004, and Fab 8S has 

been included since April 2004. 



1,600 

1,400 

1,200 

800 

600 

400 

200 

0 

1,8000 

1,6000 

1,4000 

1,2000 

10,000 

8,000 

6,000 

2,000 

0 

Power Consumption (MWH) 

2002 2003 2004 2005 2006 

Gas Consumption (NM 3 ) 

2003 2004 2005 2006 

Power Consumption per Unit (MWH/m 2 ) 

20 

15 

10 

5 

Energy utilization consumes the earth's 

resources and results in the greenhouse 

effect. According to the data provided by 

Bureau of Energy, Ministry of Economic 

Affairs, each kilowatt-hour will result in 0.62 

kilogram of CO 2 . As a global citizen, UMC 

has no hesitation in acting against global 

climate change. To lower the impact of the 

greenhouse effect on the environment, 

UMC sets annual goals and plans to lower 

the emissions of greenhouse gases. In 

addition to continual assessment and 

introduction of various energy saving 

technologies, UMC also implements energy 

saving plans to directly slow the company's 

energy consumption. Furthermore, UMC 

promotes energy saving programs in the 

office and public areas accompanied with 

promotion activities and training to enhance 

employees' ideas and habits in energy 

saving and greenhouse gas reduction. 

0 

2003 2004 2005 2006 

-UMC's Energy Saving Measures 

Energy Saving Measures 

Improvement on the main engine by adopting recycled hot 

water for cooling system and 37º PUMP operation 

Set converters at the air conditioning system outside the 

cleanrooms 

Adopt “Ball Room + SMIF” system design for cleanrooms 

Set converters at process exhaust systems 

Lower the air conditioning outside cleanrooms 

Add inverters at process cooling systems 

Improve gas consumption efficiency in VOC system 

Improve cold water and hot water systems 

Improvements on the cooling water discharging system to the 

air processing mechanism to reduce air loss 

Add COP System conversion control at cooling systems 

Add external heating dryers 

Clean the coolers in air compressors Atlas AP-12 

Energy saving measures for office air conditioning system and 

car park exhaust system 

Fab lighting system improvement 

Energy Saving Measures 

Adjust FFU speed at cleanrooms 

Lower the machines’ output power while idling 

Adjust to high vacuum operation mode 

Adjust to CDA operation mode CDA 

Add converters to cooling system HW PUMP 

Lower MAU temperature 

Adjustment on hot water operation mode 

Add heat exchanger in PCW System 

Reduce Truss lighting 

Energy saving engineering on air conditioning system 

Amendment on 2B3T HEX pipes to lower gas consumption at 

boilers 

Reduce gas emission from manufacturing processes 

Decrease CDA pressure 

Reduce air loss at air compressor CDA/HCDA

Environmental Sustainable Growth - UMC

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