AMD’s manufacturing processes produce a number of waste streams that are classified as hazardous by local and national regulations. While all of this waste is appropriately treated or recycled, it still represents an environmental burden that we are focused on reducing. Hazardous waste reduction is just one element of the pollution prevention and resource conservation programs established at each AMD site to reduce the generation of waste and the consumption of raw materials and natural resources.

Hazardous Waste Reduction Goal Reduce hazardous waste generation (as measured by kilograms / Manufacturing Index) by 10% by 2007 relative to a baseline year of 2002

After a sharp increase in hazardous waste generation in 2004 due to new Spansion facilities and increased production, actual and normalized hazardous waste decreased in 2005. In our accounting of hazardous waste generation, we include chemicals that are sold for reuse as a feedstock in other industrial processes. In 2005, this amounted to 8.6 million kilograms (18.9 million pounds). Therefore more than 65 percent of the hazardous waste generated by AMD in 2005 was recycled. Two sites, Aizu-Wakamatsu and Austin were the primary contributors to the chemical reuse program. Normalized hazardous waste for AMD’s worldwide operations declined seven percent in 2005 compared to 2004.

The following are waste reduction projects recently completed or currently underway:

• Increased efficiency of material inputs to the manufacturing process in Suzhou
• Reduction of a chromium-phosphoric acid waste stream by 10 percent through process optimization in Dresden
• Replacement of a wet-etch process with a dry-etch process, expected to save 650,000 kilograms of hazardous waste per year in Dresden
• Treatment of chromium-phosphoric acid, also expected to save 650,000 kilograms of hazardous waste per year in Dresden