Corporate Environmental Report

ST in the community

We take our impact on the economy, employment and on the social structure of the communities in which we operate very seriously. This is especially true in places where we are a significant presence. Over the years our considerable capital investment on five continents has created many thousands of jobs and significantly contributed to the growth of local economies.

	In Malaysia ST is the 5th largest employer in the semiconductor sector. Our Muar site is the largest employer in the state of Johor.
	In Malta we are the largest private employer.
	In Morocco we are amongst the Top Three and the largest foreign employer in the country.
	In southern Italy our Catania site is the largest industrial employer in the region.
	In Singapore ST is listed in the country’s Top Ten Companies.

On a practical level, there is much we can do to support the communities that host our sites, both on a daily basis and in times of crisis. Our contribution is expressed through a wide range of small, but relevant partnership projects focusing on some of the pressing needs of local people. Besides providing jobs, we contribute to communities through countless local activities in the form of donations of cash, products and a broad range of activities where ST employees volunteer their personal time to helping the community.

Some examples common to all sites include:

	support for local medical initiatives;
	donations of supplies and computers to schools and universities;
	help for underprivileged children;
	sponsorship of the arts and local culture;
	a broad range of environmental initiatives;
	community and national education.

In China, for example, where ST has been present since 1995 as a joint venture partner with the Shenzhen SEG Hi-Tech Industrial Co., Ltd., known as STS Microelectronics, we participate in the Hope Project, a nationwide charity for building primary schools and will donate US$16,000 during 2002. STS also gives computer equipment to universities and offers tuition scholarships to university students. To date, STS capital investments in China total US$238 million.

In France, ST and other major companies support the ‘Fondation de la Deuxième Chance’ (the Foundation for a Second Chance) which provides financial aid to individuals in difficulty to help them to a second chance in life through setting up their own business or commerce. A pilot project is being established at ST’s site in Rousset, near Aix-en-Provence in France.

Our charitable work is increasingly being co-ordinated by the ST Foundation, established in 2001 and described on page 16. The Foundation, for example, co-ordinated our contribution to disaster relief after the Gujarat earthquake in India in 2001. US$100,000 was donated by the Company and local employees donated a further US$14,600.