Recycle and Reuse
Reduction of Material Source
ChipMOS provides complete semiconductor back-end process services. The main raw materials for packaging, testing and materials include Solder Ball, Lead Frame, Substrate, Molding Compound, etc. We continue refining the production process, strive to improve the source, reduce waste, and understand the use of various materials by analyzing the annual material consumption rate. We continued optimizing the use of substrates and lead frames between production machines to reduce the consumption of invalid materials. Through the consolidation and utilization of materials, the switching consumption of molding compound was reduced, and the major raw material consumption was greatly improved.
For the past five years, the consumption rate of resin has shown a decreasing trend year over year. We've continuously optimized the usage efficiency of all other raw materials, striving to meet our consumption targets. 2024 raw material consumption targets are: Solder Ball (3.2%), Lead Frame (2.2%), Substrate (0.7%), and Molding Compound (3.0%). These targets are adjusted annually based on the production plan's product mix. In 2024, solder ball consumption increased due to machine changeover scrap. Substrate consumption also rose due to an increase in urgent customer orders and small-batch production, which made centralized production difficult. To address this, we've initiated a solder ball reduction project for 2025, to lower the consumption rate by adjusting machine changeover timings to reduce solder ball waste during switches.
Reusing of Packaging Materials
To maximize resource utilization and enhance packaging efficiency, we adhere to the principles of Reduce, Reuse, and Recycle. From 2023 to 2024, we proactively collaborated with two major test product customers to explore opportunities for packaging reduction and reusing. This included evaluating alternative specifications and materials, as well as improving packaging processes, to actively reduce carbon emissions and waste, and increase the value of resource reuse.
★The achievements of 2024: Reduce carbon emissions by approximately 20 tons CO2e
■ Return of semi-finished product inner box for reusing, total 6,500 kg, equivalent to a reduction in procurement of about 35,000 paper boxes.
■ Use of ESD shipping boxes instead of inner boxes for outsourced shipments, total 5,000 kg, resulting in a decrease in procurement by approximately 34,000 paper boxes and bubble wrap.
Developing Circular Economy - Turning Wastes into Resources
ChipMOS actively promotes waste reduction initiatives, integrating process and facility units to gradually extend the concepts of "life cycle" and "source management." By seeking reduction and recycling solutions from production processes and equipment in the factory, ChipMOS drives a circular economy within the plant. Through Reduce, Reuse, and Recycle methods, resources are fully utilized while balancing economic development and environmental protection. Furthermore, the company implements "ISO 14051 - Material Flow Cost Accounting" to grasp information for management improvement, enabling waste to become a resource in the circular economy and enhancing the value of resource reuse.
★ [Case Sharing] Circular economy of silica sludge
※ Inorganic Sludge Introduced into Circular Economy Model - Recycled into 'Epoxy, Calcium Silicate Board, Safety Shoes' for In-factory Use
The Tainan fab. will process the cutting and grinding wastewater through a recycling system by the end of 2023, turning the concentrated wastewater into silicon sludge via chemical coagulation sedimentation and plate-and-frame filtration. The silicon sludge will then be regenerated as a silicon raw material and reprocessed into products such as 'Epoxy, calcium silicate board, and safety shoes,' which will be reused within the plant for green building materials and protective equipment. In May 2024, we obtained the 'Recycled Claim Standard (RCS) Certificate' to make the entire recycling process more transparent and credible. We further plan to promote the use of regenerated silicon sludge in 2025-2026 to manufacture anti-static shoes and cleanroom shoes for plant use, striving to maximize resource utilization benefits while successfully establishing a circular economy ecosystem that achieves both economic and environmental sustainability for our company.
【Further Reading】
▪ 2024/7/1 The first in OSAT to be certified by the Recycled Claim Standard
★ [Case Sharing] Recycling Waste Molding Resin
※In 2023, ChipMOS achieved a 90.6% utilization rate for recycled molding compound to manufacture paving bricks, and in 2024, the company reached 100% utilization of recycled resin for producing paving bricks.
The previous disposal methods for "waste molding compound" within the factory were landfilling and incineration. To enhance waste recycling efficiency, ChipMOS began actively seeking ways to recycle waste molding compound in 2018. We entrusted a licensed processor with our process-generated molding compound waste, which was then recycled into paving bricks. These products are primarily sold to stone material companies for use in sidewalks or public/private sector engineering projects.
★ [Case Sharing] Waste Wooden Pallets
In-house transportation of materials generates waste wooden pallets, which are collected by certified recyclers to be remanufactured into second-hand pallets, wooden boxes, and handicraft products; the remaining broken boards and scraps undergo shredding and screening processes before being used as fuel for boilers. In 2023, the reuse rate of waste wooden pallets was 35.22%. In 2024, by increasing the number of certified recycling channels, the overall reuse rate across all branches reached 85.97%, exceeding the preset target (>50%).
★[Case Sharing] Air Pollution Control Equipment Utilizing Regenerative Activated Carbon
The Tainan fab and Hsinchu fab use regenerated activated carbon, which is recognized as a green recycled product by the Ministry of Economic Affairs, totaling 40.95 tons per year in their air pollution control adsorption equipment. This regenerated activated carbon meets certain proportions for recycling and its production process conforms to energy-saving, low-pollution standards, contributing to increased social benefits or reduced social costs. The plants prioritize using resource-recycled green products under appropriate operating conditions to enhance the waste resource regeneration ratio and effectively reduce greenhouse gas emissions.
Waste Management
ChipMOS, in addition to its own operational activities, also reviews the waste-related impacts of upstream and downstream activities in the value chain, comprehensively grasping the environmental impact. ChipMOS annually assesses and manages environmental impacts based on the ISO 14001 Environmental Management System from a product lifecycle perspective, including raw material supply, in-house production, and waste disposal.
Process Control Actions
■ For upstream (raw material stage), ChipMOS uses green materials to ensure products do not contain environmentally hazardous substances.
■ For downstream waste disposal, ChipMOS entrusts qualified companies to handle it in accordance with the law and collaborates with the Green Energy and Environmental Engineering Research Institute of Industrial Technology Research Institute for periodic auditing of some waste disposal companies.
-In 2024, ChipMOS self-conducted on-site audits covered a total of 15 companies, among which 8 were rated as excellent and 7 as average, with no subpar suppliers.
-In Q4 of 2024, actively promote the use of the three-part form APP by downstream waste disposal vendors to reduce paper consumption.
■In order to address the non-hazardous/hazardous waste generated from in-factory production, various waste reduction management initiatives are implemented annually. Additionally, collaborative efforts with suppliers/customers are made to promote waste reduction measures.
Notes: Since 2019, our total waste volume and intensity data have been certified by BSI Taiwan. The verification follows GRI Standards and the AA1000 AS v3 for Type II High assurance level.