The Opportunities and Challenges of

Waste-Recycling for Semiconductor Plants

Arthur ChuangSenior Director, 300mm Fabs Division, TSMC

2

Overview of Industrial Waste

Management in Science Parks

3

Waste Management Flow and Treatment

Overview

Waste

Collection

Waste Prevention

and Minimization

Waste Diversion

through Recycle

and Reuse

Composting

of Waste Fraction

Sanitary

Landfilling

Residual

Landfill

Anaerobic Digestion

of Waste Fractions

Incineration and Other

Thermal Processes

4

Domestic Waste Overview of Taiwan

• In 2014, domestic waste was 26,250 kiloton in Taiwan, in which

municipal waste was 28% and enterprise waste was 72%.

• The waste-recycling rate of municipal waste was 56%, enterprise

waste was 81%, therefore the final disposed wastes are both

around 3,000 kiloton.

Municipal wasteK ton/yr

3,885 3,944 4,025 4,034 4,097

4,073 3,611 3,379 3,300 3,273

48.8%52.2%

54.4% 55.0% 55.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2,010 2,011 2,012 2,013 2,014

recycle non-recycle

14,580 15,440 14,510 14,910 15,290

3,510 3,290 3,440 3,760 3,590

80.6% 82.4% 80.8% 79.9% 81.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

-

5,000

10,000

15,000

20,000

25,000

2,010 2,011 2,012 2,013 2,014

recycle non-recycle recycling rate

Enterprise wasteK ton/yr

Data source: EPA 2014 Waste-Recycling Annual Report

5

5,312

3,327 1,150

712 672 557 376 297 260 238

28%

46%52%

56%59% 62% 64% 66% 67% 68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000Declaration Cumulative Percentage

Industrial Waste Overview of Taiwan

• According to the EPA, total enterprise waste weighed 18,880

kilotons in 2014, in which 88% was industrial waste.

• The highest industrial waste was slag from steel industry (28%),

and the waste from electronics was 670 kilotons (3.5%).

Data source: EPA 2014 Waste-Recycling Annual Report

6

Electronic Waste Overview of Science Parks

• In 2014, Science Parks generated 630 kilotons of industrial

waste, which was 3.3% of total enterprise waste. Obviously 88%

of them was originated from semiconductor and optoelectronics

manufacturing.

• The waste-recycling rate of optoelectronics was about 80%, and

semiconductor manufacturing was about 92% in recent years.

75.9%

79.9%

92%

90%91.7%

81.0%

85.1%84% 84%

82.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

2010 2011 2012 2013 2014

Semiconductor Optoelectronic

Waste-Recycling Rate

7

Typical Wastes from a Semiconductor Plant

• In Taiwan, semiconductor manufacturing generated 310 kilotons

wastes in 2014.

• The major wastes coming from semiconductor manufacturing

are acid (43%), solvent (25%) and sludge (18%).

Data source: EPA, Industrial Waste Report and Management System

Electronic Industry

192.4 200.9 215.8 239.7 309.8

137.4 130.9 116.6 141.7

142.6 104.3 103.1 139.6 144.6

175.4

31.8 32.0 32.8

34.9

44.1

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

2010 2011 2012 2013 2014

Semiconductor Panel Optoelectronic Packaging

K ton/yr %

132

51

30 30 24

9 7 4

43%

59%

69%

78%86% 89% 92% 93%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

20

40

60

80

100

120

140

160

Qty Cumulative proportion

Semiconductor ManufactureK ton/yr %

8

Category Volume Recycled Products Sell/Pay Status

H2SO4, H3PO4, HF 51% Industrial H2SO4

6% Sell

94% Pay

Thinner, IPA, NMP 14% Industrial Solvent 100% Sell

(NH4)2SO4, TMAH 12%(NH4)2SO4, NH4OH,

/TMAH

21% Sell

79% Pay

CaF2 Sludge 8% Cement Pay

SiO2 Sludge 5% Cement Pay

CuSO4 4% Cu/CuSO4 Sell/Pay

Waste Plastic Mixtures 2% Plastic Barrel Sell

Active Carbon, Non-Toxic Waste

Chemical, Waste Wiper…etc.4% Incineration or Landfill Pay

TOTAL 100%Recycling Rate

95%

~20% Sell

~80% Pay

Typical Waste from a Semiconductor Plant

9

Waste Treatment Industry of Taiwan

Supported by governmental policy with

complete and compulsory regulations.

Government monitor treatment facility and

loading ratio, therefore, to prevent insufficient

treatment capacity.

Wastes sources are stable and sufficient.

Strength

Society distrust waste-treatment industry. The

recycled products has not yet been accepted

by consumers, the market is still restricted.

The waste treatment process involves several

companies in loop and increases possibility of

abuses.

It is difficult to build a new treatment plant.

Once the plants are full loaded, wastes can no

longer be treated.

Threats

It is difficult to trace the reuse status for

recycled products.

The authorities are dispersed in 10 different

administrations such as MOEA and so on.

The penalty of Waste Clearance Regulation is

relatively loose than other environmental

regulations.

Weakness

Due to the raise of environmental awareness in

Taiwan. The enterprises are more willing to

invest and develop technologies for waste

treatment and recycling.

To improve waste value through a refined

classification and pretreatment at the sources.

To improve industry’s premium and credibility

of environmental protection.

Opportunities

10

Status of the Polluted Sites under EPA’s

Observation

• According to the EPA, there 19 illegal dumping sites are polluted

and controlled for recovery. The major illegal wastes include

sludge, slags and waste liquid.

• Based on pollution area, 76% of the affected area is polluted by

heavy metal (mercury, nickel, cadmium, chromium, copper, zinc,

lead) and the other 24% is organic solvent (benzene, phenol).

8.8 8.2

0.05.4

0.0

5.0

10.0

15.0

Soil groundwater

he

cta

re (

ha

)

metal solvent

Data source: EPA, Environment Resource Database

11

Establish Waste-Recycling Value

Chain in Semiconductor Plants

12

Waste Management Hierarchy

• Recycling is processing used materials into new, useful products. This is done to reduce the consumption of raw materials that would have been used.

• Recycling also uses less energy and great method of controlling air, water and soil pollution.

VALUE

Buy Recycled

Waste Economics

13

Waste Management Process

• Start from… identifying and quantifying your waste. Organize a

waste management team to drive things forward.

• Generate an waste reducing action plan. Get commitment from

senior management for the action plan.

• Identify the possible disposal options if the waste is

unrecyclable. Select your waste carriers carefully and make sure

that your Duty of Care responsibilities are met.

• Monitor and review your achievements. Communicate your

success to interested stakeholders outside your organization.

14

Recycling – Transform the Value of Waste from

Negative to Positive

• After a proper converting process, to raise the quality and price

value of recycled waste and to compete with new product.

• In Taiwan, Nearly 60% of industries depend on recycling industry to

provide partial raw materials to balance cost with imported

materials. The annual production of recycling industry is growing

doubly in the last decade and reached NT$ 67.8 billion in 2015.

• The steel slags, furnace dust, solvent and metal contribute the

most to the production amount.

38.542

48.2 48.7

54.4

65.8 65.8 65.9 67 67.8

30

35

40

45

50

55

60

65

70

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

billio

n

Data source: IDB, Industrial Waste Clearance, Treatment and Recycling information net

15

Innovation on Waste Recovery

• Since the waste generated by each company is unique, therefore

it is necessary to have professional teams for recycling.

Brainstorm to generate ideas and creative methods of waste

recovering. Only a long-term commitment can increase profits

through reducing waste.

• Generally speaking, the first priority of waste-recycling tasks is

to analyze the ingredients of the wastes, to investigate a proper

classification method for simplifying the complexity of the waste

and to manage the waste according to the recycling structure.

• One of the best strategies is to treat the waste with waste, to

transform it into a useful or valuable material.

16

Waste Sulfuric Acid Recycling –

Electronic Grade

Information source: AUECC (a Linde/LienHua Company)

17

Waste Sulfuric Acid and Ammonia Nitrogen

Recycling – Industrial Grade

Information source: TSMC

18

On-Site Chemical Recycling Facility – TMAH

Information source: TSMC

19

On-Site Electroplating Facility – Copper Sulfate

Information source: TSMC

20

Artificial Fluorite Sintering Facility – Calcium

Fluoride

Information source: CHC Resources (a China Steel Company)

21

Category VolumeRecycled Product

(Present)

Sell/Pay

Status

Recycled Product

(Future)

Sell/Pay

(Future)

H2SO4, H3PO4, HF 51% Industrial H2SO4

6% Sell

94% Pay

EL grade H2SO4,

Na3PO4/CaF2

100% Sell

Thinner, IPA, NMP 14% Industrial Solvent 100% Sell Industrial Solvent 100% Sell

(NH4)2SO4, TMAH 12% (NH4)2SO4/TMAH21% Sell

79% Pay

(NH4)2SO4, NH4OH,

/TMAH

87.5% Sell

12.5% Pay

CaF2 Sludge 8% Cement Pay Fluorite (85% CaF2) 100% Sell

SiO2 Sludge 5% Cement Pay Cement Pay

CuSO4 4%Cu

CuSO4

Sell/Pay Copper Sell

Waste Plastic Mixtures 2% Plastic Barrel Sell Plastic Pellets Sell

Active Carbon, Non-Toxic

Waste Chemical, Waste

Wiper…etc.

4%Incineration or

LandfillPay

Incineration or

LandfillPay

TOTAL 100%Recycling Rate

95%

~20% Sell

~80% Pay

85% Sell

15% Pay

Sustainable Waste-Recycling Index –

Sales Rate

22

Opportunities and Challenges

to Connect the Future

23

Be a Reputable, Licensed, Specialist Company

• A professional, responsible and sustainable waste treatment

industry is essential to success of waste treatment.

• In terms of reliability and credibility, the state-owned treatment

organizations are currently much better than private ones, the

differences of their performance are probably due to their

different business and financial models.

• The waste treatment industry should establish a transparent

management mechanism and information platform, such as

– an open and public logistic information and trading process.

– audit or verification guidelines ensure the sustainable industry.

24

Governance on Waste Management

• If the government is not capable to conduct the waste treatment enterprises, they should consider to transform the industry into state-owned enterprises (monopolistic sale) in order to protect the environment.

• Profits Guarantee: Set a minimum treatment price to avoid price competition. It can assure that the treatment plants gain fair profits, therefore they should be responsible of the legality.

• Responsibility Guarantee: Evaluate the performance of each treatment plant periodically . There should be a disqualification mechanism to assure the quality of treatment plants.

• Administrative Assistance: Amend the regulations to authorize enterprises selling their recycled wastes (B2B), so that the enterprises may dedicate to waste-recycling business.

25

Optimize Waste Management Program

• The first strategy of waste management is reduction, as well as prevention. The second is reuse, the last is recycling. Therefore reducing the usage from the source is the core value of the waste management.

• Bring waste treatment program to senior management level, which means to optimize the program through top-down management, is the opportunity to eliminate waste from the source i.e. reduction or prevention stage.

• Recycling and reuse can be as effective as possible only if the traditional logistic management is transformed. Facility should be requested to take more responsibility of waste reduction program and to dedicate into the new technology development .

• Encourage the suppliers to commit to waste-recycling, help the development of waste-recycling supply chain.

26

Recycle Your Business Waste by Yourself

• The more refined categories of wastes, the easier of recycling

process and higher of recycling rate. One of the most important

strategies of waste recycling is to recycle one’s own waste, so

that the complexity and the process of waste recycling can be

simplified.

• Designing an on-site recycling can reduce the risk of outbound

transportation. When the outbound transportation is eliminated,

not only the transportation can be relieved, but also the risk of

illegal dumping waste can be avoided.

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Summary

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The Opportunities and Challenges of Waste-

Recycling for Semiconductor Plants

• Treat the waste locally and avoid long distance transportation. It

is suggested that the government include the treatment plants

into industrial park or regional management system.

• Integrate the waste treatment plants to achieve better economic

and technical scopes, so that the profits can be ensured and

legal operation can be achieved.

• The waste treatment industry should assure profitability and

prohibit the price competition. The logistic operation should be

transparent, be watched by the society.

• High-tech industry can help to establish structured industrial

chains of waste recycling and final disposal. It is suggested that

the government assist and use this industrial chain to improve

the waste recycling performance of general industrial area.

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The Opportunities and Challenges of Waste-

Recycling for Semiconductor Plants

• Same as green manufacturing and quality improvement

program, each corporation should monitor the waste reduction

outcome of their supply chains and encourage them to develop

the waste recycling techniques and business innovation.

• Facility organizations should invest their resources, take the

responsibility to solve the waste issues and to reduce operating

cost through waste-recycling.

• Waste recycled as raw-materials (cradle to cradle) is happening

now, it deserves effort for the enterprises to evaluate and to

consider their commitments to the waste recycling.

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Thank You