Stakeholders

Customer-oriented new product development with specifications leading the industry

Short-term goals:

Improve products’ overvoltage resistance, reduce the product return rate, and help customers increase product quality for a win-win outcome.

Medium and long-term goals:

Through innovative component and circuit design, develop products with industry-leading specifications and become a role model in the industry for sustainable growth.

• With the growing importance of ESD in the industry in recent years, the overvoltage resistance of new products developed in 2022 has increased from 22.5kV to 25.56kV, lowering the aftersales damage rate of customer products.
• For protection components for high-speed applications, the clamping voltage of the new products developed in 2022 has been further reduced from 10.61V to 8.46V, which can more efficiently protect the master chips using advanced processes in the circuit.
• Six low-leakage current products developed in 2022 can further reduce the system energy consumption to 10%.

Continuous evaluation of business performance with various financial indicators

Short-term goals:

• Maintain a constant profitable growth.
• Set reasonable revenue goals, based on industry trends, market conditions, and competition and put in great effort to achieve them.

Medium and long-term goals:

• Increase revenue and gross profit margin for long-term success.
• Continue to explore new business and new investment opportunities.
• Improve long-term investment value for the company.

• In 2022, we have achieved an operating profit of 43 billion NT dollars with constant profitable growth.

Promote the core values of business integrity within the company regularly and conduct relevant internal training courses, such as insider trading prevention, trade secret infringement & defenses, etc., to enhance employee awareness of business integrity and legal compliance and strengthen corporate governance.

Short-term goals:

• Implement relevant education and training courses for all employees annually, with a 100% course completion rate.
• No significant fines (exceeding 1 million NT dollars) are imposed for violating laws or regulations.

Medium and long-term goals:

Continue to improve Board operations per corporate governance-related suggestions made by the competent authorities, actively involved in the corporate governance evaluation, and improve disclosure of corporate information.

• In 2022, there were no significant fines and penalties in 2022 for violating and non-compliance with relevant social, economic, and environmental laws or regulations.
• No grievances or reports were received for any operations, employee integrity, ethics, and compliance violations.
• Our 2022 Corporate Governance Evaluation results accounted for 21% to 35% of listed companies.

Establish a dedicated team for enterprise risk management to quickly respond to all risk events and continuously improve potential risk values for sustainable operations, which is the ultimate goal of corporate operations.

Short-term goals:

Periodically monitor and review risks on a rolling basis to ensure the effectiveness of risk management plans and related control measures.

Medium and long-term goals:

Each unit conducts risk analysis, identification, evaluation, and response to medium and long-term internal changes within the company to reduce corporate risks and achieve corporate goals.

• The COVID-19 emergency response measures and procedures were activated immediately. The epidemic control and prevention measures were dynamically adjusted as well. The company maintained normal operations during the COVID-19 pandemic.
• Improved regulations and protection mechanisms related to trade secrets protected the company’s valuable R&D assets.

• Promote the Supplier Code of Conduct.
• Include more items in the supplier ESG assessment and audit.
• Enforce the conflict-free mineral sourcing policy.

Short-term goals:

• Ensure that 100% of our suppliers have signed the Supplier Code of Conduct.
• Ensure that 100% of our suppliers have completed assessments and audits with ESG-related items.。

Medium and long-term goals:

• Encourage suppliers to be actively concerned about global ESG issues and respond to them.
• Execute the conflict-free mineral sourcing policy
• Conduct periodic supplier assessments and hold regular meetings.
• Remain a local sourcing rate above 25%.

• 100% execution rate of conflict-free mineral policy
• Implemented the hazardous materials management.
• Remained a local sourcing rate above 25%.

• Develop and implement environmental safety and health policies.
• Continue to execute GHG emission inventory and management. Actively promote GHG emission reduction measures.
• Implement hazardous materials management. All the materials used shall comply with RoHS, halogen-free, and REACH requirements.

Short-term goals:

• Motivate staff to participate in EHS education and training. Encourage them to recognize the earth and our environment and cherish natural resources by reducing resource and energy usage, recycling, and reusing.
• Execute energy-efficiency improvement project for office lighting
• 100% completion rate of hazardous materials investigation
• Ensure that 100% of our suppliers have obtained ISO 14001 Environmental Management Systems certification.

Medium and long-term goals:

• Set up EV charging ports for low-carbon electric vehicles in the company’s parking lot to promote electric vehicle adoption among employees.
• Install a rooftop solar PV system on the office building in Hsinchu to expand the use of green energy.
• Obtain ISO 14064-1 certification through external verification.
• Keep annual energy intensity or electricity consumption per capita declining by at least 2% compared with the previous year.
• Encourage suppliers to acquire the QC 080000 hazardous substance process management system certification.
• Persist in RoHS, halogen-free, and REACH compliances.

• Used 100% lead-free materials.
• Used 100% halogen-free materials.
• Used 100% RoHS-compliant materials.
• In 2022, the annual electricity usage and consumption per capita declined by 1% and 4%, respectively, compared with 2021.

• Increase company exposure. Provide employees with a challenging, innovative environment and an excellent employee welfare program.
• Create a friendly workplace and a sustainable employee recognition program to retain talent. Also, look after employee physical and mental health and offer support.

Short-term goals:

Fill open positions in each unit to facilitate the progress of subsequent new product development and related operations.

Medium and long-term goals:

Enhance talent retention through the employee rewards and recognition program and the comprehensive education and training program for a better workplace.

• A vacation policy better than the Labor Standards Act.
• Each employee received an average of 15.26 hours of training.
• In 2022, the average salary of nonmanagerial employees was in the top 20% among the listed semiconductor companies.

According to the ISO/IEC 27001:2013 Information Security Management System and with reference to information security trends, select key control items for information security from operational compliance, data protection, hacker attacks, incident management, and supply chain. Establish and implement corresponding measures to continuously reduce information security risks.

Short-term goals:

Ensure that 100% of employees have completed information security education and training.

Medium and long-term goals:

Protect the security of essential business information within the industrial chain’s upstream and downstream. Boost operational efficiency and productivity of the company.

• The load capacity of the remote access system was increased to support WFH properly during COVID-19.
• Optimized the system-wide protection mechanism for trade secrets to protect the company’s valuable R&D assets.
• No significant information security incidents occurred in 2022 that caused operational disruption.
• ISO/IEC 27001:2013 ISMS (Information Security Management System) certification was obtained in 2022.