Sustainability at X-FAB
Balancing environmental health, social equity, and economic vitality
By definition, sustainability presumes that resources are finite, and should be used wisely with a view to long-term priorities and consequences. In simple terms, sustainability is about our children and grandchildren, and the world we will leave them. No matter in which position we are in, everyone can make a contribution to making our planet worth living in also for future generations.
Sustainability embodies many different facets, from environmental care to health and safety, human rights, business ethics and social responsibility.
Semiconductor technologies as provided by X-FAB enable innovative devices that make transportation cleaner, reduce energy consumption and CO2 emissions. Products made with X-FAB technologies are being used in electric and hybrid vehicles (EV, EHV), smart chargers / power adapters, wind turbines and many more applications that contribute to reducing our CO2 footprint. At the same time, X-FAB aims to reduce its environmental footprint by saving energy, water and by reducing its CO2 emissions.
As an employer, X-FAB contributes by providing a safe and positive work environment with fair pay and a company culture that embraces diversity. There are, of course, many more aspects of sustainability to take into account.
On this webpage we have compiled information around the topic of sustainability covering the positive contribution our technologies make, X-FAB’s responsible supply chain management, the environmental awareness and responsibility, the health & safety of our employees as well as the aspect of human rights, ethics and our social commitments.
X-FAB has installed a sustainability management committee overseeing its various sustainability-related activities. These are regularly presented to the company's Board of Directors.
Our key environmental, social and governance (ESG) goals
Sustainability has been a significant driver of our development activities for several years, as X-FAB focuses not only on the broad range of its products but also on various internal and external activities. X-FAB's mission is to contribute to the social, environmental, and economic development of the countries and regions where it operates. In 2022, we took significant steps towards corporate sustainability by setting long-term key ESG objectives and initiatives, as sustainability is a journey that X-FAB is ever-more committed to. These objectives were reviewed in 2023 and remain valid.
X-FAB’s long-term key ESG objectives Innovation goal
X-FAB supports its customers to develop medical applications that meet the needs of growing and aging populations. We want to increase the use of our technologies in medical applications and aim to grow the medical business at an average annual growth rate of 10% until 2030. In 2023 X-FAB recorded a year-on-year growth of 21% in the medical end market, reflecting the increasing use of wearable medical devices as well as the growing demand for testing and point-of-care devices. Among the growth drivers in 2023 were an infrared temperature sensor and a DNA sequencing application.
We recognize the importance of environmental protection for a sustainable future and support our customers in developing green technologies. Energy efficiency can play a critical role in reducing greenhouse gas emissions, conserving natural resources, and promoting sustainable development across a broad range of sectors, such as transportation, industrial, or communication technology. Therefore, we intend to increase the percentage of our technologies that contribute to higher energy efficiency of the products they are used for, from 38% of total revenue in 2021 to 65% in 2030. In 2023, 54% of total revenue (excluding revenue recognized over time according to IFRS 15) has been generated through technologies that contribute to higher energy efficiency. Among the key growth drivers were X-FAB’s popular 180nm automotive technology and silicon carbide.
Diversity and inclusion goal
X-FAB has made a commitment to enhancing diversity and inclusion within the organization and has formed a global Diversity Council comprised of members from Germany, France, Malaysia, and the USA to support these efforts. The Council meets regularly to focus on particular topics and goals, with a specific emphasis on increasing the percentage of women in the organization.
The percentage of women at X-FAB has increased from 27% in 2020 to 28% in 2023, and we intend to continue this positive trend.
As part of its 2023 strategy, the Diversity Council has established these two objectives:- to offer targeted training to managers on diversity and inclusion; and
- to review and further improve equal treatment policies across all sites.
In 2023, several training sessions on diversity and inclusion were held at all locations, e.g. on sexual harassment. In addition, X-FAB launched a dedicated LinkedIn Learning campaign on diversity and inclusion for all employees in March 2023.
Carbon footprint reduction goal
Reducing carbon emissions and other greenhouse gases is an important step in mitigating climate change and its negative effects on the environment. We are committed to exploring and implementing sustainable measures to minimize our carbon footprint and seek to actively reduce our direct CO2 emissions rather than artificially improve our CO2 balance by purchasing carbon credits.
We have set a goal to reduce our carbon footprint, measured in carbon emissions per stepped mask layer, by 40% by 2030 compared to 2021. Major initiatives involve shifting towards a low-carbon energy mix, improving the energy efficiency of our equipment, modernizing and extending gas abatements, and adopting low-carbon transportation options.
In 2023, X-FAB’s total CO2 footprint (CO2 equivalents normalized to stepped mask layers) reduced by 23% compared to the baseline value of 2021. This includes the reduction of direct emissions by 43% and an increase of the CO2 footprint related to energy consumption by 1.5% against 2021.
Water consumption goal
Water consumption can have a significant impact on the environment, including the depletion of freshwater resources, water pollution, and damage to aquatic ecosystems. By reducing water consumption, companies can help to conserve this precious resource and ensure that it is available for future generations as well as minimize the impact on the environment.
X-FAB aims to reduce water consumption per stepped mask layer by 20% in 2030 compared to 2021. Major initiatives include a water reduction program in Operations as well as broad investments to increase water reuse by recycling or reclaiming water at all X-FAB sites.
In 2023, X-FAB’s production consumed roughly 226.4 liters of water per stepped mask layer. The majority was used for cooling as well as for the supply and cleaning of production tools. There was a slight increase in consumption due to a changed product mix at some of the production sites compared to 2022. The Group’s total water consumption (normalized to stepped mask layers) increased by 8% compared to 2021. Projects to reduce the total water consumption through increased recycling have been defined and are in execution across all sites.
Our technologies support the transition to greener energy and clean transportation.
Environment
Environmental protection is key for a sustainable future. X-FAB supports its customers to develop green technology contributing to sustainability in various fields, such as mobility, healthcare, and the energy sector. With semiconductor manufacturing being resource-intensive X-FAB has a clear commitment to minimize the use and the impact of those resources, with a particular focus on energy, water, and materials.
- Environmental awareness & responsibility
Sustainability starts with the right mindset. X-FAB therefore regularly trains its employees on various topics to increase individual awareness for the Company’s environmental impact as well as its sustainability efforts.
- annual EHS week organized at all sites to educate employees about topics like energy management, waste and sewage disposal, water balance, CO2 footprint, recycling and of course our environmental goals
X-FAB fulfills its environmental responsibility in many different ways:
- dedicated employees assigned for different environmental topics to ensure compliance with X-FAB’s EHS (Environment Health and Safety) policy
- strictly obeying all environmental local laws
- defining specific environmental goals for each site annually; implemented continuously to reduce the company’s impact on the environment
- tracking the material flow and monitoring material efficiency and use to reach sustained environmental conservation
- impact on biodiversity is minimized as all sites are located in industrial areas; no adjacent nature reserves or similarly classified areas
- Environmental policies and certifications
X-FAB’s environmental activities are handled with an integrated quality management system according to the ISO 14001:2015 standard, complemented by an EHS policy as well as an Energy management system according to ISO 50001:2018.
Environmental, Health and Safety (EHS) policy
- The policy is designed to ensure that all activities within X-FAB Group are performed in a manner that considers the health and safety of our employees, contractors, suppliers, customers, and the general public, with no adverse impact on the environment caused by our manufacturing operations and products.
- The policy complies with the requirements of an Environmental Management System and supports the compliance with legal requirements.
- The policy covers risk reduction as well as incident/accident prevention as continual task of all sites’ EHS committees and the entire X-FAB staff.
- The policy is reviewed and approved regularly (twice a year) by X-FAB’s global management team with feedback from and consultation with various stakeholders (employees, suppliers, contractors, customers, and the general public).
- X-FAB’s EHS objectives and their fulfilment are being reported to and approved by the global management team twice a year.
- The EHS objectives aim at reducing emissions as well as the reduction of waste generation.
- X-FAB promotes environmental awareness of all involved stakeholders and offers regular internal trainings.
- Regular reporting of X-FAB’s environmental, health and safety performance through the Annual Report
Environmental management system (ISO 14001)
- international standard specifying requirements for establishing, implementing, maintaining, and improving an energy management system
- enables an organization to follow a systematic approach in achieving continual improvement of energy performance, including energy efficiency, energy use, and consumption.
Energy management system according to the requirements of ISO 50001:2018 implemented at the sites in Erfurt, Dresden, and Corbeil-Essonnes.
- assessing improvement potentials of the Company’s energy efficiency and their implementation in the daily work
Product declaration
- all purchased materials need to satisfy current government and safety constraints on restricted, toxic and hazardous materials, as well as environmental considerations applicable to the country of manufacture and sale
- X-FAB’s product declaration declares conformity with the REACH and RoHS regulations, freedom of halogen, rare earth elements and conflict minerals in our wafers.
- Energy
At X-FAB, energy is mainly used in the form of electricity with the production department having the highest energy consumption based on the advanced cleanroom conditions as well as the production process itself.
Global energy consumption
In 2023, X-FAB’s global energy consumption was at about 541 GWh, a slight increase due to the increase in production equipment. The share of low-carbon electricity power sources, such as hydro, nuclear, solar, and wind, was at 66%, and the share of high-carbon sources, such as oil, gas, coal, biofuel, etc., was at 34%.
Share of low-carbon and high-carbon electricity power sources (in percent). The split for X-FAB Sarawak is based on data for 2021, as it was the most recent data available from the local electricity provider. An Energy management system according to the requirements of ISO 50001:2018 is implemented at the sites in Erfurt, Dresden, and Corbeil-Essonnes. This helps with
- assessing improvement potentials of the Company’s energy efficiency and their implementation in the daily work.
It is an ongoing objective to improve energy efficiency and to reduce energy consumption at all locations by:
- exchanging old equipment into more energy efficient tools.
- digitalization of energy management software to increase energy efficiency.
- increasing share of renewable energies in the energy mix.
Several projects to improve energy efficiency were completed in 2023, examples of which are:
- replacement of a 7 MW chiller in Corbeil-Essonnes;
- replacement of CDA compressors in Erfurt;
- replacement of recirculating fans in Dresden with an estimated annual energy saving of 80,000 kWh; and
- continued replacement of VLF (vertical laminar flow) recirculating fans in Lubbock with an estimated annual energy saving of 44,000 kWh.
- Water use
Semiconductor manufacturing requires water to rinse and clean the wafers during the manufacturing process to avoid their contamination with particles.
- To date, X-FAB has not been affected by water scarcity at any of its manufacturing sites.
- Water is a valuable resource and X-FAB seeks to reduce its water consumption by means of higher tool efficiency and increased water recycling.
Global water consumption in 2023: ~226.4 liters of water per stepped mask layer
- mainly used for cooling and for the supply and cleaning of production tools
- different sources of water supply: surface water, municipal water, and ground water
There was a slight increase in consumption due to a changed product mix at some of the production sites compared to 2022.
- Materials & waste management
Several types of material are used in semiconductor manufacturing: water, gases as well as chemicals like solvents, resists, acids, or metals. The need to use material that might cause toxic waste in the production of semiconductor products is a special challenge and a key environmental aspect at X-FAB:
- use of those materials is tightly watched by material departments and waste commissioners established at each site
- every waste is separated to reduce the amount of hazardous or non-recyclable waste.
- majority of the waste (hazardous as well as nonhazardous) sent for recycling to recover valuable resources
- pursuing permanent environmental objectives to decrease overall environmental impact with several activities and programs installed to reduce the waste or use of hazardous materials or increase the recycling rate
With 81.5% of waste recovered, the total waste disposal in 2023 was slightly lower compared to 2022 with a waste recovery of 84.1%.
- Greenhouse gases
Global climate change is an important challenge to all industrial players worldwide. X-FAB understands the climate impact from its operations on society and the global economy. Nevertheless, the use of greenhouse gases is inevitable for the production of microchips and all types of semiconductors.
It is X-FAB’s intention to minimize the output of greenhouse gases:
- each production site equipped with state-of-the-art cleaning systems linked to the production equipment using greenhouse gases
- additional measures at every site to ensure all regulations are followed
- monitoring gas usage to ensure no wastages are occurring
- no significant spills of hazardous substances and greenhouse gases in 2023
In 2023, there was a significant decrease in Perfluorinated Carbons (PFC) gas consumption due to replacements of old technology systems and energy efficiency programs.
Gas emissions by ton CO2 equivalent 
Three-year comparison of PFC gas consumption (all gases ≥10 ton CO2 per million stepped mask layers)
Our efforts to minimize the environmental impact and to ensure the health and safety of people do not stop at the factory gate, it rather is a key aspect throughout the entire supply chain. Carefully selecting and monitoring suppliers according to international standards as well as responsible sourcing from conflict-free areas are non-negotiable for us.
Sophie Le-Guyadec, VP Procurement, X-FAB Group
Sustainable supply
X-FAB, as a manufacturer of a large variety of products, relies on a number of suppliers. It is key for us to ensure the reliable and responsible supply with all raw materials. For this, X-FAB carefully selects and monitors its suppliers striving for sustainable long-term partnerships while setting high standards in terms of quality, environmental and social aspects.
Supplier selection
The X-FAB Group has a global supplier selection and monitoring process in place complying with:
- quality management system standards ISO 9001 and IATF 16949
- environmental management system standard ISO 14001
New suppliers are required to pass a process audit according to the automotive standard VDA 6.3 and need to answer a survey on various topics. Important criteria are:
- existence of an environmental management system and an environmental policy
- compliance with RoHS and REACH
Suppliers of strategic materials are requested to confirm compliance with X-FAB’s list of banned substances, provide transparent information regarding their quality and environmental management systems and transparent information with respect to the composition of the supplied materials.
Our requirements to qualify as strategic supplier are:
- certified quality management system according to ISO 9001
- certified environmental management system according to ISO 14001
- demonstrated compliance of quality management system according to IATF 16949
- commitment to a code of conduct, e. g. ZVEI Code of Conduct or equivalent
- conflict minerals reporting (if applicable)
Intense checks and validation by X-FAB’s supplier quality management and procurement organization is a prerequisite before initially releasing a new material and/or supplier, including on-site audits and contractual agreements.
Supplier monitoring
Continual supplier monitoring process to ensure compliance with all requirements:
- major suppliers are subject to supplier assessment once a year
- if requirements are not met by at least 85%, the supplier is requested to submit improvement proposals to stay under contract with X-FAB
- regular audits verify the compliance to the requirements of X-FAB
- active engagement with non-compliant suppliers to reach compliance
Responsible sourcing & handling of conflict minerals
X-FAB requests all suppliers to source minerals from conflict-free regions:
All strategic suppliers for materials containing tungsten, tantalum, tin, or gold (3TG) must ensure that these materials are sourced from certified conflict-free smelters and provide X-FAB with the latest 3TG Conflict-Free Smelter List according to an industry benchmark reporting format, e.g. Conflict Minerals Reporting Template (CRMT) of the Responsible Minerals Initiative (RMI)
Other mineral disclosures include cobalt and mica:
- While X-FAB products do not contain mica, X-FAB is working with suppliers to ensure they source from conflict-free cobalt smelters.
Our technologies enable novel and smart solutions for reliable and life-saving healthcare applications.
Employees’ Health & Safety
We take our responsibility as an employer to make working for X-FAB safe and rewarding seriously and this includes a variety of measures and activities relating to work environment, safety in operations, education as well as rewarding efforts.
- Environmental, Health and Safety policy
Our Environmental, Health and Safety (EHS) policy is designed to ensure that all activities within the X-FAB Group are performed in a manner that considers the health and safety of our employees, contractors, suppliers, customers and the general public, with no adverse impact on the environment caused by our manufacturing operations and products. We operate an EHS management system that meets the needs of our stakeholders and the requirements of ISO 14001:2015.
- Work environment
X-FAB is dedicated to providing a good working atmosphere as well as a pleasant and inspiring working environment for its employees:
- cafeterias, lunchrooms, and subsidized meals offered to employees
- chill-out rooms and staff rooms with journals, internet access, and free nonalcoholic drinks for better work breaks
- cafeteria and breakout rooms also available for night and weekend shifts
- Education & training
The success of X-FAB depends on whether our employees are able to optimally contribute their individual strengths, which consequently need to be identified and individually developed. This includes:
- introductory training plan for new employees for solid knowledge and understanding of X-FAB’s internal procedures and production processes as well as job specific knowledge
- Performance Management Process (PMP) to strengthen individual development and drive performance improvement based on constant feedback from supervisor to employee
- various training and event formats for continual development and to ensure global knowledge transfer among X-FAB employees, such as internal workshops, Lunch & Learn sessions, knowledge networks, and webinars on a broad range of technical topics
- dual study programs combining theoretical sessions and practical work in addition to apprenticeships for commercial as well as technical careers providing opportunities for the young
- incentivizing publications in international journals and filed patents to encourage innovation
- Rewarding efforts
As an international company, X-FAB employs people from many different regions around the world with different ethnic origins and social backgrounds, resulting in a broad range of individual needs. Nowadays, the modern world of employment demands a high level of self-responsibility and flexibility, especially for working parents and those with responsibilities for people in need of care. Therefore, X-FAB offers flexible working time models and strives to find individual working time solutions for its employees. Other measures include:
- granting leisure time for private matters, such as moving and marriage
- supporting working parents financially in case of their children’s illness
- as part of collective bargaining agreements, German employees above a certain age are offered the possibility to reduce their weekly working hours
- rewarding outstanding employee performance with incentive cash payments during the year and in the form of bonuses
- individual employees or teams undertaking extraordinary efforts for X-FAB’s benefit are acknowledged by the Company’s corporate management
- company pension scheme to support employees financially after transition to retirement
- Safety in operations
The safety and well-being of our employees is of paramount importance for X-FAB. The company offers regular safety-related trainings and periodic safety briefings to avoid accidents and injuries. Each location has an associated company doctor performing routine medical examinations, such as eye examinations, vaccinations, travel-related medical consultations, etc.
At the annual EHS week, information about health protection, safety, sustainability, and environmental topics is offered to all employees via information desks, posters, and other events. Company tours offered by coworkers are designed to increase employees’ awareness of hazards in the workplace and several training sessions are offered to improve their skills in first aid and firefighting.
Hygiene concepts for cleanrooms to maintain a high level of hygiene and health including specific protection plans, such as:
- rubber gloves, special clothes, and shoes to avoid particle and ion contamination or electrostatic discharge
- skin protection plan with skin care products available at any time for each employee
- individualized and ergonomic cleanroom shoes
- ear plugs for noise protection
Preventive maintenance as basis for the safe operation of equipment and tools. To prevent equipment malfunctions and failures:
- use of a global procedure to manage a preventive maintenance system
- local instructions to manage the preventive maintenance regime for each production site
- maintenance instructions and schedule include information based on vendor manuals, experiences during operation, tool performance parameters, major incidents, product quality, and audit findings
There are two types of preventive maintenance activities: actions triggered by a time interval, and actions triggered by reaching specific tool parameters describing the current tool wear.
All this helps to ensure that the overall tool status remains excellent and to prevent accidents caused by machine malfunctions such as electrical hazards, leakage of dangerous materials, or mechanical issues.
“Our responsibility as a company towards people cannot be underestimated and it is a must for X-FAB to consequently follow international human rights and ethics standards and to constantly fulfill all local legislations in the communities we operate. We want our employees to feel safe and happy at work and to have the necessary flexibility to balance work and private life. Specific regulations we had implemented during the demanding times of the pandemic have meanwhile become standards at X-FAB.”
Henryk Schoder, VP People & Culture, X-FAB Group
Human rights & ethics
Our company ethics are based on universally held ethical values and principles, including respect of human dignity, openness, and non-discrimination according to the ZVEI Code of Conduct (2019). Consequently, X-FAB stands up for human rights as stated in the Charter of the United Nations, especially the protection from harassment, the prohibition of child and forced labor, the prohibition of discrimination, fair working standards and compensation, and freedom of thought, expression, association, and assembly, as well as collective bargaining.
Corporate values
X-FAB’s company values set the framework for our corporate culture. They provide guidance for our daily work, on how we interact with our colleagues and how we work with our business partners. The values that our management and the entire organization is committed to are:
- Integrity & respect
- Teamwork
- Commitment
- Innovation
- Customer orientation
Diversity & Inclusion
We believe that a great variety of cultural, educational and social backgrounds fosters a climate of innovation. People that do not all think alike bring in different perspectives. That’s why we believe in diversity and its invigorating power for a high-tech company like X-FAB.
- at the end of 2023, around 4,500 employees from over 45 different nationalities worked on three continents, many of them as part of global teams and departments
- encouraging the hiring of disabled or handicapped persons; more than 120 employees are officially registered with disabilities and well-integrated into the daily work process
- increasing proportion of women within the company: from 27% in 2020 to 28% in 2023 for the entire Group
Anti-discrimination
Any form of discrimination is not tolerated at X-FAB. We thrive on creating a work environment based on equal opportunities, independent of age, gender, disability, ethnic-cultural background, sexual orientation or religion.
- encouraging employees to report incidents related to discrimination to the HR department or, where available, the workers council and the equal opportunities officer.
- new employees undergo mandatory employee orientation of which human rights policies are a crucial focus point
- local employee handbooks include strong regulations and guidelines
- regular trainings
- hiring policy based on qualifications required for specific positions and independent from gender or family status.
- commitment to equal pay adhering to specific local laws and regulations; collective bargaining agreements at the company’s European sites contribute to ensure equal pay.
- for better transparency: employees have the opportunity to inform themselves about the equal pay policy of X-FAB by benchmarking their payment against a relevant group of employees
In 2023, a global equal treatment policy was created by reviewing local policies and establishing a global approach to be rolled out in 2024.
Anti-corruption
X-FAB’s business practices follow the principles of fair competition with particular focus on professional behavior.
- respecting consumer interests by abiding by regulations that protect consumers
- using appropriate sales, marketing, and information practices in accordance with the ICC International Code of Advertising Practice and the OECD Guidelines for Multinational Enterprises
- not influencing politics, neither by participating in political activities nor by donating or supporting parties in elections
- explicit gift policy in place as part of the employee handbook followed through by the compliance officer
In order to prevent corruption, X-FAB is aiming for an increased awareness from its employees through comprehensive and repetitive sessions on the company values and strict regulations as outlined in the company handbook. These sessions are attended by all employees and emphasize the corporate values, such as integrity and respect, as well as X-FAB’s code of conduct. Training is organized at least once every two years, and every employee is required to attend. New employees are provided with special initial training during their on-boarding. An Ethics and Conflict of Interest policy is part of X-FAB’s code of conduct.
Freedom of Association
X-FAB respects the right of employees to join associations and unions as well as the right to collective bargaining. The company and the employee associations work together constructively and respectfully. Approximately 98% of our employees in Europe are organized under the regulation of local and national collective bargaining agreements.
In 2023, X-FAB established one common collective bargaining agreement for all German sites. At X-FAB France, a new collective bargaining agreement was implemented and became effective in January 2024.
Whistleblower policy
As an alert system to confidentially report any violation, in 2018, X-FAB installed a Whistle Blower Policy, which was disclosed to all employees globally.
All employees worldwide can report incidents anonymously in their native language. All reports are treated confidentially, and there is a strict no-retaliation policy.
Social commitment
Contact
For more information, please contact us: