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Incorporating Pollution Taxes and/or Subsidies into Master Planning in Semiconductor Foundry Plants

Chi Chiang


Hui-Lan Hsu

Chi Chiang 1 ,

Hui-Lan Hsu 1 
  1. Department of Management Science, National Chiao Tung University 1001 University Road, Hsinchu, Taiwan, R.O.C. 1

on Google Scholar
on PubMed

Pages: 8-22

DOI: 10.18488/journal.11.2017.61.8.22

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Article History:

Received: 19 October, 2016
Revised: 11 November, 2016
Accepted: 17 February, 2017
Published: 04 April, 2017


The continued development of manufacturing industries along with increasing greenhouse gas emissions has become a critical concern that forces mankind to reduce global warming. Given the long atmospheric lifetimes of Perfluorocarbons (PFCs), it is especially important to reduce the emissions of PFCs which are commonly found in the semiconductor industry. In this study, we propose four master planning models that incorporate pollution taxes, subsidies, and/or progressive pollution taxes into capacity allocation to examine the problem of anthropogenic PFC emissions. The results show that master planning with subsidies and/or progressive taxes provides more flexibility to a foundry plant than that with flat taxes only. Setting emission limits and considering taxation for master planning is the first step toward the success of an environmental policy. 

Contribution/ Originality
This study proposes four master planning models for the semiconductor foundry plants by using ecological taxation methods. The paper’s primary contribution is finding that the master planning models with subsidies and/or progressive taxes provide more flexibility to a foundry plant than the model with flat taxes only.


Master planning, Pollution tax, Subsidy, Environmental, policy, Linear programming, Sustainable supply chain.



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The authors would like to thank the National Science Council of Taiwan for financial support. The Grant No. is NSC 102-2410-H-009-040.

Competing Interests:

The authors declare that they have no competing interests.


Both authors contributed equally to the conception and design of the study.

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