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Presenter: KC Chou, Senior Vice President, ASE Group

VERSION 2019.08.30

Water Management in Semiconductor Industry A Semiconductor Assembly and Test Perspective

TAIWAN INTERNATIONAL WATER WEEK: Taiwan Water Projects

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Data Source: 2018 Statistical Report of Industrial Water Consumption in Taiwan, Water Resources Agency (WRA), Ministry of Economic Affairs (MOEA)

The Water Landscape in Taiwan

Water resources are stressed in Taiwan Climate change has become more severe Demand for water continues to grow

ASE GROUP

For the past 10 years (2008 – 2018), municipal water supply and industrial water consumption in Taiwan have stayed stable at a CAGR of 0.1%. However, electronics-related industry, including semiconductor, has seen the biggest increase (9.98%) among all industries. The increasing demand for water is potentially a critical hurdle to the industry’s growth.

An Illustration of Water Usage Surge in Semiconductor Industry

Comparing Ultrapure Water Usage Per Wafer by Different Wafer Size

150mm

200mm

300mm

1 Ton/Wafer 2.5 – 3

Ton/Wafer 10 – 15 Ton/Wafer

10% INDUSTRIAL

HOUSEHOLD

19%

71% AGRICULTURAL

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The importance of water resources management

If we continued on the business as usual path, how many Earths do we use?

Increases in population Environmental degradation

Y2050

x 2.3

Sustainable development can be defined as development that meets the needs of the present without compromising the ability of future generations.

The 2.3 planets we will be using if we continue on the business as usual path we are on today.

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K22

K25

Chuangyi N. Rd.

K21

K12 K7

K5

K8

K9

K15

K14A

K4 K6 K2

K1

K10

K6A

K10A

K3

K13 K14B K14C

K16

Tray

Waih

uan W

. R

d.

Jiachang Rd.

Chuangyi S. Rd.

K26

K23

K9B

K24

NEPZ I

22% of 684,900m2

NEPZ II

88% of 56,100m2

**K24 : 2019 Completed

**K25 : 2020 Completed

WB K1 K2 K3 K5 K7 SIP K12

FC K11 K21 K22 MTL K9 K9B K15

BUMP K5 K7 K12 K21 K22 SESUB K16

TEST K7 K8 K15 K21 K22

K10A

K11

Reclaimed Water Recycling Plant

ASEKH 24000+ employee (as of 2019/07) ASEKH Campus

Practices on Water Conservation Facility Upgrade for Better Water Efficiency

Reduction on Manufacturing System Water Use Training in Response to Supply Stoppage Supplier Commitment on Conservation

Reuse of Reclaimed Water System Process Water Recycling

Rainwater Collection System Water Supply Support Network

Direct Pipeline to Water Storage Tank

Pollutants Removal Wastewater Treatment Enhancement

Sensor Installation for Quality Monitoring Leakage Prevention

Open Data for Transparency

ASE Water Management Strategies

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Consumption Reduction

Resources Diversification

Preventive Measures

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1. Bio-Powdered Activated Carbon System (BPAC) 2. Ultra Filtration System (UF) 3. Reverse Osmosis System (RO)

Water Resource Diversification and Municipal Water Consumption Reduction:

Wastewater Reclamation Plant

In 2009, Typhoon “Murakot” brought massive amount of muddy water into Kaohsiung’s water supply system, forcing an extended period of municipal water stoppage. ASE had to purchase clean water from other sources to avoid a potentially USD$180M loss during the 9-day stoppage. To resolve water shortage and secure reliable water quality, ASE initiated the project of “Reuse of Reclaimed Water System (RRWS)” in August 2011. Collaborating with government, various suppliers and contractors, ASE completed the first advanced wastewater reclamation system in the industry of semiconductor assembly and test (SATS) in Taiwan in 2014/Q4. The unprecedented water reclamation system contains innovative technologies in 3 categories:

influent Reclaimed Water Effluent

PLA

NTS

D

ISC

HA

RG

E PLA

NTS

ASE K14B

3 RO

2 UF

1 BPAC

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Wastewater Reclamation Plant Innovative Technology #1:

Bio-Powdered Activated Carbon System (BPAC)

The Bio-Powdered Activated Carbon System (BPAC) is a process to absorb recalcitrant compounds that are not readily bio-degradable, thereby able to reduce wastewater’s chemical oxygen demand (COD) and remove toxins. For BPAC, ASE cooperated with contractors and suppliers to employ a special nurturing method to build the microbiology culture for wastewater with relatively lower COD/SS.

biofilm

active carbon

COD, BOD

CO2, H2O

bio

deg

rad

atio

n

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Wastewater Reclamation Plant Innovative Technology #2:

Ultra Filtration System (UF)

Ultra Filtration is commonly used as a pre-treatment to Reverse Osmosis (RO) to ensure reliable, consistent and efficient operation. ASE’s system uses fiber membrane filters to filter out molecular particles, which can be insoluble solids as small as 0.03μm. It can effectively prevent micro-particles / colloidal substances from trickling through the sand filter tower, thus lowering the silt density index of the water.

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Wastewater Reclamation Plant Innovative Technology #3:

Reverse Osmosis System (RO)

With aid from contractors, ASE uses a high flux technique to design the arrangement of RO membranes to reduce blockage of the membranes and thus increases the lifetime of the RO membranes.

ASE’s Reverse Osmosis (RO) System employs reverse osmosis membranes to filter out electrical conductivity and organic substances. The system purifies water to the level required by our manufacturing process.

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Government Support New Wastewater Formula for Reclamation Plant

Upgrading Legacy System Building Water Reclamation System from Scratch

Water Balance amid Emergency Water Supply Support Network at ASE Kaohsiung

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With the water reclamation plant and direct pipeline to CPC’s water storage tank (9-day supply), ASE Kaohsiung was able to weather through the severe water supply shortage from February to April and the month of December in 2017.

EAST

W

EST

K11

K5

K8

K7

K3

K15/16

K1/2

K12

reclamation plant (K14B)

CPC water tank

The government re-formulated wastewater formula due to the unprecedented nature of ASE’s water reclamation plant in Taiwan.

2009/08 – 2011/08 Project Initialization 2011/09 – 2013/09 Locate Suppliers 2013/09 – 2014/08 Execute Project Phase I 2015/00 – 2015/00 Operation 2015/00 – 2015/12 (10,000 CMD)

2015/00 – 2016/00 Enhancement 2015/00 – 2015/12 (18,570 CMD)

2015/00 – 2017/00 Optimization 2015/00 – 2015/12 (20,000 CMD)

2018/12 – 2019/09 Expansion 2015/00 – 2015/12 (30,000 CMD)

BE

FO

RE

A

FT

ER

PLANTS’ WASTE WATER

K14B DISCHARGED

WATER

TOTAL WASTE WATER

PLANTS’ WASTE WATER

K14B RECLAIMED

WATER

TOTAL WASTE WATER

Side Notes on Building Wastewater Reclamation Plant

55

45 145

45

100

100

From project initialization in August 2009 to Phase II completion in June 2019, RRWS will take 10 years and cost USD$35M.

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354,280

160,560

2015 2016 2017 2018 2019 forecast

2014

Total Estimated Pollutants in Discharging Water (KG)

Wat

er P

ollu

tio

n C

on

tro

l

LESS POLLUTION

LOWER CONDUCTIVITY

LOWER COST

87% REDUCTION

40% REDUCTION

30% REDUCTION

120K Ton/Yr

15.6K Ton/Yr

450 μs/cm

180 μs/cm

1.2 USD /M3

0.8 USD /M3

BEFORE AFTER BEFORE AFTER BEFORE AFTER

In addition to municipal water consumption reduction Wastewater discharge quality has been improved The better quality has led to lower pure water cost

DISCHARGED WATER COD RAW WATER PURE WATER

55% REDUCE

Discharging Water Pollution Control & Cost Reduction

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2016 2017 2018 2019 2020 2021 2012 2023 2024

ASE: Green Manufacturing/Water Management

2.31

1.38

364

558

Production Floor Area (1000m2)

Tap Water Usage Per Production Unit (Ton/K$USD)

Wa

ter C

on

se

rva

tion

Wa

ter R

ec

lam

atio

n

Water Usage Per Unit Production Decreased 40.2%

The stable supply of water resources has become an important issue in the world due to global climate change ASE actively evaluates risks and possible impacts in water resources, implements plans for daily water saving and water shortage dispatching From 2016 to 2024, ASE Kaohsiung expects a CARG of 4.9% for production floor area, but a CARG of -6.4% for tap water usage per unit revenue

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ASE: Green Manufacturing/Energy Management

396

349 364

558

Production Floor Area (1000m2)

Power Consumption Per Production Unit (KWH/K$USD)

Power Consumption Per Unit Production Decreased 11.9%

Sm

art G

rid O

ptim

iza

tion

En

erg

y E

fficie

nc

y

ASE has established intelligent management systems to control power use and reduce standby power consumption In addition, ASE replaced inefficient components and optimized equipment energy consumption Since 2015, ASE Kaohsiung’s power consumption per unit revenue has decreased at a CARG of -1.1%

2016 2017 2018 2019 2020 2021 2012 2023 2024

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11.0

6.3

ASE: Green Manufacturing/Waste Management

62%

88%

2016 2017 2018 2019 2020 2021 2012 2023 2024

Waste Production Per Unit Production Decreased 42.7%

Re

us

e a

nd

Re

cy

cle

Life

Cy

cle

Ma

na

ge

me

nt

Waste Production Per Production Unit (Kg/K$USD)

Waste Recycling Rate

ASE continuously promotes raw material usage reduction and introduces circular economy management methods to enable better waste recycling From 2016 to 2024, ASE Kaohsiung expects waste recycling rate to rise from 62% to 88% From 2016 to 2024, ASE Kaohsiung expects waste production per unit production to reduce at a CARG of -6.0% ASE also adopts proactive actions to strengthen vendor auditing effectiveness to ensure legal and proper recycling and treatment of wastes

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ASE continue to promote sustainability and strengthen green competitiveness in supply chain.

2015 2016 2017 2018 2019 2025

Guide suppliers establish GHGs inventory and CSR disclosure

Guide suppliers to establish BCP and Tier2 management

Promote Circular Economy in supply chain

Promote suppliers reduce GHGs and Water usage

Reduction Expectation • GHGs: 152K tons CO2↓ • Water: 1.08M tons ↓

Y2018 achievements • GHGs: 90K tons CO2 ↓ • Water: 0.76M tons ↓

Reduction Expectation • GHGs: 610K tons CO2↓ • Water: 4.36M tons ↓

2015-2017 Establish sustainable management

2018 Mitigate the risk of sustainability and operation

2019~ Promote circular economy and Sustainable supply chain

ASE Supply Chain Management on Water Saving

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A T O T C S O L

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