Survey Shows Concerns Over Copper Usage in Semiconductor Packaging

First Global Study, Conducted by SEMI, of the Semiconductor Industry Into the use of Gold Wire vs. Copper Wire

LONDON, January 25 - World Gold Council (WGC) has welcomed the results of a survey, conducted
by SEMI, the global semiconductor industry association, which shows the
semiconductor industry has serious reservations about the reliability and
yield of copper bonding wire. This global survey does show that an increasing
number of companies are considering using copper for some new products, this
despite continued evidence that gold is more reliable.

SEMI surveyed 46 leading semiconductor companies across the world to
determine the extent of copper bonding wire programs in the industry and to
identify the key issues and considerations related to decisions in selecting
bonding wire material. Companies surveyed included both integrated device
manufacturers (IDMs) and fabless semiconductor companies, with revenues
totalling US$137 billion in 2008, representing of 55% of the global industry,
and included responses from 14 of the top 20 supplier rankings for 2008.

The results show that 59% of the companies surveyed do not use copper
wire technology in their products, 41% use it in some products and none of
the companies use it in the majority of products. Of the companies surveyed,
72% are considering the switch to copper wire for some new products, 13% are
considering it for the majority of products and 15% are not considering
switching. There were serious concerns about the move to copper usage, of
which the main concerns were:

    - In-service product reliability
    - Process yield
    - Unproven historical performance

When asked to expand on these concerns, issues that were highlighted
included performance concerns specific to the automotive market, the
increased costs in having to purchase new equipment, copper's unsuitability
for complex wire loop shapes in advance packages, difference in electrical
performance and comfort with the established supply base for gold bonding
wire.

The principle of design-for-recycling, which is often promoted by
equipment and device manufacturers in the interests of sustainability, does
not yet appear to be an issue of significance to IDMs and fabless companies.
Whilst half the companies surveyed were aware that over 50% of the economic
value of some end-of-life electronic products is derived from the gold
content (which underpins the economic viability of electronics recycling),
the survey also shows that only 21% of companies consider recyclability of
waste electronics when selecting bonding wire material.

Dr Richard Holliday, Director, Industrial at World Gold Council, said:
"The results of this survey show that there are still serious reservations in
the industry over the use of copper wire in packaging technology. It is clear
that gold has proven reliability and a track record - industry professionals
still recognise this. We plan to undertake further research to discover the
extent of the difference in reliability of gold versus copper.

Although end-of-life recyclability of electronic goods is becoming an
increasingly important issue, it is surprising that very few fabless or IDM
companies are influenced by the essential role the value of gold plays in the
economic viability of waste electronics recycling. "

Dr Dan Tracy, Director of Industry Research and Statistics at SEMI added:
"This survey shows that the much talked about switch from gold to copper wire
in the semiconductor industry is being considered for some new products.
However, there are still concerns over copper - both its reliability and its
potential limitations in advanced technologies and key industries such as the
automotive industry."

The full survey can be downloaded from:

www.gold.org/assets/file/rs_archive/semi_survey.pdf or
www.semi.org/wiresurvey

Notes to Editors:

World Gold Council

World Gold Council's mission is to stimulate and sustain the demand for
gold and to create enduring value for its stakeholders. It is funded by the
world's leading gold mining companies. For further information visit
www.gold.org.

For further Information or images, please contact: Matt Graydon, Director - Corporate Communications, World Gold Council, on +44(0)207-826-4716, or matt.graydon at gold.org; Mary Clark, Capital MS&L on +44(0)207-307-5336, or mary.clark at capitalmsl.com; Helen Essex, Capital MS&L on +44(0)207-307-5343, or helen.essex at capitalmsl.com; Dan Tracy, SEMI on +1-408-943-7987 or dtracy at semi.org; Richard Holliday, World Gold Council +44(0)207-826-4712
richard.holliday at gold.org