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2011 Corporate Citizenship Report

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Procurement

TI works to maximize the efficiency of the materials we purchase and to reduce environmental impact throughout the product life cycle by purchasing only what sites need, sourcing products responsibly, and reusing and recycling materials where possible.

In 2011, we began evaluating the procurement of the supplies that make up the bulk of our global spend: direct materials, which are used to manufacture our semiconductors and are present in our final products. The fabrication of our education technology products (which accounts for less than 5 percent of our revenue) is outsourced, so we do not track that purchasing information.

Direct materials we purchase include:
  • Chemicals - includes protective overcoat and stress buffer films that protect devices during packaging and encapsulation processes.
  • Silicon - a silicon wafer is the foundation material on which TI creates its semiconductor products.
  • Metals - includes lids, substrates, sputtering targets and lead frames, which form the skeleton of integrated circuits.
  • Packaging materials - includes materials used to house completed semiconductors and to ship final parts, such as mold compounds, bonding wire and die attach, as well as packing materials such as adhesives, bubble wrap and cardboard.
Other materials TI purchases include:
  • Nonrenewable materials - resources that do not renew quickly, such as minerals and natural gas.
  • Indirect materials - materials used in our operations that are not present in the final product, such as manufacturing cleaning agents and laptop computers.