AMD uses water at all its sites for normal sanitary, cafeteria and facility upkeep. Most of our water use, however, occurs in the wafer fabrication process. While almost all AMD’s water is treated and returned to the local water supply, water use is still considered a burden on local ecosystems, particularly in drier areas.

Water Conservation Goal Reduce water use (as measured by liters / *Manufacturing Index) by 40% by 2007 relative to a baseline year of 2002

*Manufacturing Index is derived from the number of wafers processed in wafer fabs, the complexity of the fabrication process, and the wafer size.

Normalized water use increased 15 percent in 2005 compared to 2004 and we met and exceeded our goal by 28 percent. Water use from startup of AMD Fab 36 offset successful water conservation efforts at most of the sites.

The following are water conservation projects/practices that AMD has implemented to address water efficiency:

• Recycling of condensate from make-up air handlers at Fab 30 is estimated to conserve 250 million liters (66 million gallons) per year. A similar project is planned for AMD Fab 36 in 2006.
• Reclaim and reuse of manufacturing rinse water in Austin’s Fab 25 will conserve 935 million liters of water annually when fully operational in 2006.
• Recycling excess Fab reclaim water back to the ultra-pure water plant in Sunnyvale has the potential to reclaim over 71 million liters (18 million gallons) per year.