Results | Looking ahead
Some of our key energy-related achievements during the year included:
We also faced ongoing challenges. Like any semiconductor company, we experience variability in orders for our products. Unfortunately, manufacturing tools use nearly the same amount of energy whether they are producing at half or full capacity.
- Surveying all factories to assess their operating specifications and energy consumption. This helped us to identify opportunities for reduction and operational alignment.
- Identifying our top five energy-saving practices in each of six major facilities for implementation in 2012.
- Completing comprehensive energy assessments at four TI sites and identifying several conservation projects. TI engineers performed these assessments in China, Mexico and at two sites in the Philippines.
- Being recognized by the Center for Sustainable Development, in association with Integrate Green Ventures, for adopting and implementing innovative solutions in energy efficiency and renewable energy at our TI India facilities.
- Receiving the second-highest score in the Supplier Energy Conservation and Emission Reduction Competition in Shenzhen, China, by a key customer. TI was recognized for its overall sustainability efforts.
Although TI has engineered improvements to help equalize energy needs and production output, broader changes need to be made in our industry to design more efficient manufacturing equipment and tools.
Another challenge was integrating additional facilities into our production flow. We purchased two existing manufacturing sites in late 2010 (included in metrics data) and three additional sites in late 2011 (not included in metrics data). It takes some time to get these facilities operating at full production and efficiency.
Finally, it is a continuous challenge to ensure that our energy-reduction efforts do not interrupt manufacturing processes.
- TI's 2011 goal was to implement energy-savings projects that reduced utility costs by $5 million. We exceeded that goal and saved $7.1 million through energy efficiency, and another $1.5 million from reduced water consumption. Much of the energy savings that exceed our goal came from our Aizu and Miho sites in Japan, following the March earthquake. These facilities voluntarily joined other businesses in curtailing energy use to help ensure ample supply for local communities.
- Although it takes a fairly small amount of energy to manufacture a single semiconductor chip, TI manufactures billions of chips each year. That's why we set, in 2010, a five-year goal to reduce the energy required to design, market and manufacture a chip by 45 percent. After the first year of working toward this goal, TI's normalized energy use increased by 10.8 percent due to a variety of factors. Even with this temporary increase, we have improved by 33 percent since 2005 and expect to see improvement again in 2012 as our newer factories run more fully loaded.
- TI's overall energy use globally was 10.7 million British thermal units (MMBTUs) or 3,123 million kilowatt hours, which comprised about 62 percent of our carbon footprint. This was an 8 percent increase from 9.9 million MMBTUs or 2,902 million kilowatt hours in 2010. The increase was due primarily to the continued ramp-up of two manufacturing facilities and an assembly/test site.
- We continued sourcing 10 percent of the electric power used by our sites in Texas, including our headquarters, from wind power, which helped reduce our carbon footprint. Our Texas sites account for about 53 percent of our worldwide electricity use. The worldwide renewable energy we purchased was 21 percent of our total electricity purchases and comprised 5 percent purchased renewable energy certificates and 16 percent renewable energy in our grid power mix, primarily from hydroelectric power plants.
TI's biggest plans in 2012 will be to align the energy practices and standards of National Semiconductor (which we acquired late in 2011) with our own. We will integrate National's energy-use data into our systems and begin comparing reduction performance.
Newly assigned energy champions at National sites will assess their facilities against the five best energy-saving practices TI identified in 2011. We plan to conduct our own formal assessments at some of National's facilities as well.
Existing TI site champions also will implement our top five energy-saving practices in each of six major facilities, as feasible.
Finally, our goal is to continue implementing energy-savings projects that will reduce utility costs by $6 million.