# Presentation: 896787

## Scott ZhaoIntel CorporationJanuary 20, 2006

**RoHS: An Industry View**

## Agenda

- Brief Introduction to Intel
- RoHS: In Perspective
- RoHS: Key Principles
- Summary

## Intel Snapshot

**Intel Snapshot**

- Year founded: 1968
- Number of employees: ~100K
- Revenues: ~$39 Billion (2005)
- Over 450 products and services
- 294 offices and facilities in 48 countries

*Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products.*

##  英特尔简述

**公司始创于****: 1968****年**
**员工人数****: ****约 ****100,000****人**
**年销售收入****: ~$390 ****亿美元**** ****(2005)**
**产品和服务****: ****超过****450****种**
**股票代码****: INTC**
**分布于世界各地的办公场地和制造工厂****: ****共计****294****个**

***英特尔公司是世界高端半导体科技的领航者。在过去的******37******年中,始终在计算机和通讯领域保持领先地位***

**Notes:**
Note to presenter:  It is a good idea to check the news headlines the day of your presentation to see if there are newsworthy items that you might be asked about – could be anything from the company’s current stock price, recent product announcements or a myriad of Intel-related topics.   Its also a good idea to contact your local public affairs office – better to be prepared than surprised.

## Intel’s Mission & Strategic Direction

***Do a great job for our customers, employees and ******stockholders by being the preeminent building block ******supplier to the worldwide digital economy.***

*Deliver platforms with more added value **and performance to every end user*

**Notes:**
Intel’s  technology expertise, innovation & leadership continues to provide an unmatched  array of wireless and wired computing and communications capabilities. 
 Enabling architectural flexibility via modular building blocks
 Facilitating interoperability through our role as industry catalyst, driving standards and government policies
 Designing and developing advanced silicon to allow further integration and overall industry innovation 

Intel is pioneering advancements that continually enhance the way we work and live through a commitment to forward-looking innovation.
Intel is the world's leading innovator in advanced silicon technology, with more than 35 years of leadership in computing and communications.  Intel offers a wide range of tools, technologies and products designed to empower people with the benefits brought about through the convergence of computing and communications.

Intel, in conjunction with industry leaders worldwide, is delivering the essential technology ingredients that enable increasingly efficient, accessible, simple, connected experiences in the home, in business and for both the wired and wireless communication infrastructure

Building on the existing billion connected computers and the growing use of personal communication devices, Intel is driving growth through this next wave of technology convergence.   Through Intel’s advanced silicon technology, this convergence of computing and communications will yield new innovations that improve that way people live!

The new business units, which will report to Otellini are:
            The Mobility Group, will develop platforms for notebook PCs and handheld computing and communications devices, and is aimed at making the growing numbers of different mobile devices work together better and easier to use. 
            The Digital Enterprise Group will develop computing and communications infrastructure platforms for end-to-end solutions in businesses.
            The Digital Home Group, will develop computing and communications platforms for use by consumers in the emerging digital home, with emphasis on living room entertainment applications and consumer electronics devices.
            The Digital Health Group, will develop products and explore business opportunities for Intel architecture products in healthcare research, diagnostics and productivity, as well as personal healthcare.
            The Channel Products Group, will seek to expand on Intel’s success in global markets by combining into one organization existing groups focused on developing and selling Intel products to meet the unique needs of local markets worldwide. 

## 英特尔的使命和战略发展方向

***Do a great job for our customers, employees and ******stockholders by being the preeminent building block ******supplier to the worldwide digital economy.***

*为最终用户提供更多附加值和性能的平台*

**Notes:**
Intel’s  technology expertise, innovation & leadership continues to provide an unmatched  array of wireless and wired computing and communications capabilities. 
 Enabling architectural flexibility via modular building blocks
 Facilitating interoperability through our role as industry catalyst, driving standards and government policies
 Designing and developing advanced silicon to allow further integration and overall industry innovation 

Intel is pioneering advancements that continually enhance the way we work and live through a commitment to forward-looking innovation.
Intel is the world's leading innovator in advanced silicon technology, with more than 35 years of leadership in computing and communications.  Intel offers a wide range of tools, technologies and products designed to empower people with the benefits brought about through the convergence of computing and communications.

Intel, in conjunction with industry leaders worldwide, is delivering the essential technology ingredients that enable increasingly efficient, accessible, simple, connected experiences in the home, in business and for both the wired and wireless communication infrastructure

Building on the existing billion connected computers and the growing use of personal communication devices, Intel is driving growth through this next wave of technology convergence.   Through Intel’s advanced silicon technology, this convergence of computing and communications will yield new innovations that improve that way people live!

The new business units, which will report to Otellini are:
            The Mobility Group, will develop platforms for notebook PCs and handheld computing and communications devices, and is aimed at making the growing numbers of different mobile devices work together better and easier to use. 
            The Digital Enterprise Group will develop computing and communications infrastructure platforms for end-to-end solutions in businesses.
            The Digital Home Group, will develop computing and communications platforms for use by consumers in the emerging digital home, with emphasis on living room entertainment applications and consumer electronics devices.
            The Digital Health Group, will develop products and explore business opportunities for Intel architecture products in healthcare research, diagnostics and productivity, as well as personal healthcare.
            The Channel Products Group, will seek to expand on Intel’s success in global markets by combining into one organization existing groups focused on developing and selling Intel products to meet the unique needs of local markets worldwide. 

## Intel In China

***HK***

**BJ**

**Jinan**

**Nanjing**

**Xian**

**Wuhan**

**CD**

**Chongqing**

**Fuzhou**

**Guangzhou**

**Harbin**** **

**SE**

**Shenyang**

**Presence in China since 1985**
**5000+ employees (excl. HK) in 13 regions on IT development, innovation and sales using global standards to support worldwide.**
**Key business**
**Sales & Marketing**
**Assembly & Test****(****Pudong, Chengdu****)**
**Research & Development****(****Shanghai, Beijing****)**

**SH**
**SHM**
** ****PD**
** ****SHZ**

## 英特尔在中国

***香港***

**北京**

**济南**

**南京**

**西安**

**武汉**

**成都**

**重庆**

**福州**

**Guangzhou**

**哈尔滨**

**深圳**

**沈阳**

**1985****年, 英特尔来到中国**
**共计****5000****多名员工**** ****(****除香港外****)****分布在**** ****13 ****个地区,采用全球化的标准对公司在世界范围内的信息技术研发,创新和销售业务提供支持**** **
**主要经营业务**
**销售和市场推广**
**封装和测试(浦东****,****成都)**
**技术研发(上海****, ****北京)**

**上海**
**上海世贸**
** ****浦东**
** ****紫竹科技园**

## RoHS: In Perspective 

- Lead is by far the most widely used RoHS chemical in electronics.
- Lead is used in 100,000+ different electronic products and components with millions of applications and operating environments (e.g. extreme cold climates, aviation, etc.)
- Electronic products lead use (covered by the RoHS Directive) represents only ~0.5%-0.8% of lead used in the EU and US*
- China’s relative use of lead in electronics is expected to be similar.

********SOURCES:***“Risks to Health and the Environment Related to the Use of Lead in Products”,
- Dr. Arnold Tukker, September 2001 prepared for DG Enterprise
- World Semiconductor Council 2001: Lead-Free White Paper; and Smith, Gerald R., Lead Recycling in the United States in 1998, FLOW STUDIES FOR RECYCLING METAL

## RoHS: In PerspectiveEU Lead Risk Assessments

- The EU conducted a risk assessment for lead.  Key findings:
- In the EU, primary sources of lead:
- To soils:  ammunition and lead sheet corrosion.
- To humans: corrosion from water pipes.
- For electronics, the study assumed WEEE and RoHS were _not_ implemented and concluded “The emissions of lead during the use of alloys are considered to be negligible.”
- Electronics usage of lead solder alloys (assumes no RoHS) is estimated to contribute  0.1% (2000) and 0.2% (2030) of total lead to the environment.

_**Source**_**:  “Risks to Health and the Environment Related to the Use of**
**              ****Lead in Products”,  A. Tukker for DG ENTR, September 2001**

## RoHS: In PerspectiveLead from Electronics – An Unlikely Source 

- 1974

- 1976

- 1978

- 1980

- 1982

- 1984

- 1986

- 1988

- 1990

- 1992

- 2

- 4

- 6

- 8

- 10

- 12

- 14

- 16

- 18

- Blood lead levels (g/dL)

- 0

- 1994

- 1996

- 1998

- 2000

- Blood Lead Levels in the U.S. Population 1976 -2000
- (Data from NHANES II, III, 99+ and PC purchases)

- Year

**Lead in Gasoline at ****ZERO**** from 1988 on**

- 0

- 60

- 55

- 50

- 45

- 40

- 35

- 30

- 25

- 20

- 15

- 10

- 5

- US PC Sales (in millions)

**Sources: CDC & IDC**

**RoHS: In Perspective****Lead from Electronics – An Unlikely Source **

## RoHS: In PerspectiveIndustry’s Proactive Response

**Many companies offering lead-free/RoHS compliant products in advance of RoHS deadlines**

- Jan 2003

**RoHS: In Perspective****Industry’s Proactive Response**

**Notes:**
We know what it takes to build a Pb-free PCA.

## RoHS: In PerspectiveIndustry’s Proactive Response

**RoHS: In Perspective****Industry’s Proactive Response**

- _Example: Intel Lead-free Roadmap_

**R&D Efforts Underway**

**Industry Technology Standards Efforts**

**Intel Lead-free Program Initiated**

**First Lead-free product****Introduced (Flash Memory)**

**1999**

**Product Roadmaps In Place to Meet RoHS Requirements**

**RoHS Compliance Management System in Place**

**RoHS Compliant Platforms Introduced**

**EU RoHS Formally Promulgated****(Jan 2003)**

**Lead-free/RoHS Compliant CPU & Chipsets**

**2004**

**2003**

**2002**

**2001**

**2000**

**2006**

**2005**

**EU RoHS In****Effect (Jul 2006)**

**Most MNCs have followed a similar 5+ year commitment to RoHS compliance**

**Notes:**
Intel has been tracking, externally influencing, and preparing internally for RoHS since 1999.
As a company, we responded to the direction EU was headed by working with Industry to shape the regulation with critical exemptions and at the same time driving a technology roadmap that would enable compliance.

## RoHS: In PerspectiveExample: Intel’s Compliance Model

**Most MNCs have similar, well defined compliance assurance programs in place**

## RoHS: Key Principles

- Harmonization
- IT companies build products for the world market
- 5+ years preparing for EU RoHS
- Harmonization of RoHS requirements is of critical importance to industry
- Simplification
- RoHS will soon be “Business as Usual”
- July 1, 2006 – many products sold in China will be RoHS compliant
- Supply chain quickly moving to RoHS-compliant parts; IT industry encouraging this for 3+ years.
- Extensive monitoring, testing and surveillance will likely have a low return on investment (ROI)

## RoHS: Key Principles

- Supplier Declaration of Conformity (SDoC)  is the Preferred Model for Compliance Assurance/Market Surveillance

- Model has long track record of use and success in Europe.

## Summary

- Important to keep RoHS in perspective
- Industry has a 5+ year commitment to RoHS compliant products and processes
- Most MNCs compliance programs are already in place
- Key principles to consider going forward:
- Harmonization
- Simplification
- Use effective compliance assurance models (e.g. SDoC)

## Back-up

## Where’s the Lead in PCBs ?

**Where’s the Lead in PCBs ?**

**FCPGA CPU Package**

**CPU/Chipset Package**

**PC Motherboard**

**Leads or Pins**

**C4 Bumps**

**C4 Bumps**

**(Exempt)**

**(Exempt)**

**Balls**

**1****st**** Level Interconnect (****FLI****)**

**2****nd**** Level Interconnect (****SLI****)**

**3****rd**** Level Interconnect (****TLI****)**

## Lead in Desk-top PCs – Where is it used?

- For comparison:
- House key  = ~0.1-0.3 g
- Car battery = 9000 g (20 lbs)

- Monitor ~900 g (2 lbs)

- Peripherals 2-3 grams

- Printed Circuit Board 5-10 gMicroprocessor ~0.2 g

## Lead Use for EU15 (kilotonnes) 

-    _Product Type_               	_1998_       _  %_  _    _
- Batteries                               	919          58
- Rolled sheet & extruded       	233         15
- Pigments & Compounds      	193          12
- Shot/Ammunition                    59           4
- Alloys (Electronics solder = ~13)  32           2 (0.8%)
- Cable sheathing                      35           2
- Petrol additives                       38           2
- Miscellaneous                    	_65_        _   5_
-                                 TOTAL:  1,574       100

_**Source**_**:****  “Risks to Health and the Environment Related to the Use of**
**              ****Lead in Products”,  A. Tukker for DG ENTR, September 2001**

## Intel Environmental Specification and Material Declarations

- Intel Environmental Product Content Specification for Suppliers:
- _[http://supplier2.intel.com/EHS/environmental.htm](http://supplier2.intel.com/EHS/environmental.htm)_
- Material Declarations:
- _[http://developer.intel.com/design/packtech/packbook.htm](http://developer.intel.com/design/packtech/packbook.htm)_

## RoHS and Material Declaration Example