Sustainability as applied to building design is something TI takes seriously. In the realm of construction, sustainability is more than just a philosophy that acknowledges the need to balance the requirements of people, profit, product and the planet. The act of creating a sustainable building represents a very practical and systematic application of modern technology.

In the U.S. alone, according to the U.S. Green Building Council, buildings consume 12 percent of the potable water, 30 percent of raw materials, 39 percent of all primary energy generation, 71 percent of electric consumption and produce 39 percent of carbon emissions. Sustainable buildings are conceived with particular emphasis placed on environmental and economic considerations to help minimize these impacts.

A central plank in TI's green building strategy is our embrace of principles defined by the U.S. Green Building Council, which is the central advocate of the Leadership in Energy and Environmental Design (LEED) system. LEED standards go beyond simple regulatory standards and deliver state-of-the-art systems, which push TI facilities closer to our corporate goal of zero wasted resources.

We chose LEED for its overall credibility, high level of adoption and rigorous standards. TI is seeking LEED certification for both new construction (LEED-NC) and for existing buildings (LEED-EB).

TI became the first semiconductor manufacturer to comply with LEED standards when we registered our Richardson, Texas, facility, known as RFAB, in 2004. By 2007, TI had registered five buildings with LEED, and plans to certify existing buildings at all major TI sites by 2011. TI will incorporate LEED construction principles in all new building construction moving forward.

Benefits of sustainable design

TI seeks to incorporate green building concepts that holistically acknowledge five target areas: sustainable sites, water efficiency, energy and the atmosphere, materials and resources, and indoor environmental quality.

Sustainable building design improves the energy and water efficiency of TI facilities, significantly reduces energy consumption from lighting, diminishes rain runoff, and reduces the urban heat island effect. It also reduces our direct and indirect waste emissions and lightens our footprint on the planet.

For example, when installing building water systems, TI observes three "Rs" that are fundamental to effective sustainability: reduce, reuse and recycle. Water need is reduced by utilizing native landscaping and waterless urinals. Energy use reduction also reduces the amount of water used for cooling.

Water reuse and recycling is employed in a number of areas to further reduce the need. Some of these areas include capturing rainwater and air-conditioning condensate for irrigation, reclaiming water from manufacturing tools, and wastewater used in scrubbers and cooling towers.

Some of the benefits from the sustainable design of RFAB include:

• Recycling 90 percent of the construction waste
• Cutting office lighting energy 80 percent by using natural daylight and responsive lighting
• Reducing overall site energy use by more than 20 percent and water use by more than 35 percent compared to a traditional fab design
• Eliminating most of the natural gas boilers by employing energy recovery from air compressors and chillers, resulting in significant site emissions reductions
• A projected utility cost savings of $1 million in the first year, which will increase to $4 million a year when the building is fully operational

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Performance

TI completed the world's first state-of-the-art new construction "green" semiconductor manufacturing facility for about 30 percent less per square foot than our previous facility, which is 10 years old and situated nearby.

In 2007, TI assessed other new construction activities for LEED-based design. We are currently building two new green facilities in the Philippines, one of which is slated to become the country's first LEED-certified building. It was challenging to apply LEED standards overseas, as designers and suppliers were unfamiliar with the system. However, the teams have made up for some of their lack of familiarity with a willingness to embrace the concept, and are progressing on both projects.

For existing buildings, TI facilities personnel formed a Green Solutions Team to extend LEED standards. TI also registered an office complex with LEED for Existing Buildings (LEED-EB). See chart below for progress details on reduced energy use.

We also are growing LEED expertise internally. Two additional TIers passed the exam in 2007 to become LEED-accredited professionals — one for new construction and one for existing buildings.

In 2008, TI will continue assessing how we can make our existing buildings more sustainable and advance green building activities in additional buildings.

Current LEED registered/certified projects

Certified projects:
RFAB Admin building – Richardson, Texas, LEED-NC 2.1, 2004
RFAB wafer fab – Richardson, Texas, LEED-NC 2.1, 2004

Registered projects:
TIPI Phase V assembly/test – Baguio, Philippines, LEED-NC 2.2, 2006
TI Clark assembly/test – Clark, Philippines, LEED-NC 2.2, 2007
TI Spring Creek site – Plano, Texas, LEED-EB O&M, 2007

Although we have only recently begun our official LEED efforts, we have worked to reduce energy consumption in our facilities. This chart shows progress made over the past four years at our first LEED-EB registered site. Adding variable speed drives, upgrading lighting systems and adding demand-controlled ventilation have already greatly improved our energy efficiency.

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