New Study Shows Chips Can Substantially Reduce Electricity Consumption

SAN JOSE, CA – May 13, 2009 – Aggressive adoption of new technologies for the production, distribution and use of electricity could lower total U.S. energy consumption by 2030, according to a study released today by the American Council for an Energy Efficient Economy (ACEEE). The study was commissioned by the Semiconductor Industry Association (SIA).

“Technology currently available and under development has the potential to revolutionize America’s energy picture on a scale comparable to the way the Internet is revolutionizing commerce,” said Brian Halla, chairman and chief executive officer of National Semiconductor and member of the SIA board of directors. “Chip-enabled technologies will soon deliver solutions to the complex problems involved in harnessing solar and wind power and integrating electricity from these sources into the nation’s distribution grid. New technologies can also achieve dramatic efficiencies in the use of energy in homes, factories, commercial buildings, and all modes of transportation. With smart policies and aggressive adoption of new technologies, the grim scenarios of living in an energy-starved world will not come to pass,” Halla concluded.

The ACEEE study reported that adoption of semiconductor-enabled technologies could lower electricity demand by 1.2 trillion kilowatt hours in 2030, a consumption level that is 22% less then the Department of Energy’s base case and 11% less than today, even though the economy is about 70 percent larger. Without such technologies, the U.S. would need an additional 296 large electric power plants, and consumers and businesses would need to spend an additional $126 billion.

SIA has proposed a number of public policies to accelerate adoption of technologies that would achieve the energy savings identified in the ACEEE report. These recommendations include tax incentives for adoption of energy-efficient products and components, federal support for research and development, and new energy-efficiency standards.

The complete ACEEE report and a one-page summary of SIA policy recommendations are available at:www.sia-online.org.

About the SIA

The SIA is the leading voice for the semiconductor industry and has represented U.S. semiconductor companies since 1977. Collectively, the chip industry employs a domestic workforce of approximately 200,000 people. The semiconductor industry is America’s second-largest exporting industry. More information about the SIA can be found at www.sia-online.org.

About ACEEE

The American Council for an Energy-Efficient Economy (ACEEE) is an independent, nonprofit organization dedicated to advancing energy efficiency as a means of promoting economic prosperity, energy security, and environmental protection. ACEEE fulfills its mission by conducting technical and policy assessments; working collaboratively with policymakers, businesses, and public interest groups; organizing conferences; publishing reports, conference proceedings, and consumer guides; and educating consumers.