Message from the ESG Committee Chairman

Implementation of Sustainable Governance

Looking back at 2022, the Russo-Ukrainian War was still ongoing, COVID-19 continued to spread, and the US-China trade conflict continued to escalate, which disrupted the global division of labor in supply chains. Compounded with inflation, all of the issues impacted consumer demand. Due to the many negative factors, WIN Semi.'s consolidated revenue in 2022 dropped 30% compared with the previous year, and operations faced headwinds that have been rare in recent years. WIN continues to invest resources into the development of new technologies. Aside from developing new next generation process technology to enhance customers' competitiveness, we also focus on technological development for potential markets and new applications. For example, WIN has accumulated considerable mass production experience for 3D sensor applications of smartphones in facial recognition, and similar technologies and principles can be extended to AR and VR, and even be applied to LiDAR.

Concern About Environmental Issues

WIN is concerned about climate and environmental protection issues, and formulated carbon emission reduction plans according to regulatory requirements to reduce the Company's impact on the environment. We implemented 24 energy conservation and carbon reduction plans in 2022, which reduced electricity consumption by 1,558,555 kWh and reduced carbon emissions by 1,266 ton CO2e; implemented 12 water conservation projects and recycled 288,090 tonnes of water; received a "Leadership Level" rating from the CDP for the first time. WIN established an Energy Conservation and Carbon Reduction Task Force in 2021 to fully drive GHG and energy reduction plans, set goals to achieve net zero emissions according to the SBTi, and implement net zero emission plans.

Creating a Harmonious Workplace

Talent is WIN's most important asset and also the source of growth momentum. To encourage employees to build families and careers without any worries at WIN, WIN provides monthly subsidies of up to NT$5,000 for each child under the age of 7. In 2022, WIN provided over NT$49.75 million in childcare subsidies to 782 employees. Since we began providing childcare subsidies in 2019, the amount of subsidies reached NT$138.25 million. The number of employees we had at the end of 2022 was 3,349. We look forward to building a harmonious, inclusive, safe, and healthy workplace, establishing a talent training system, formulating human rights policies, setting up employee communication channels, and pursuing the goal of zero occupational disasters.

Future Prospects

WIN faced many challenges and changes in the external environment in 2023, and will abide by the law and implement corporate governance with the mission to achieve sustainable operation. WIN cares about society and continues to enhance its competitive advantage and leadership in wireless communications foundry service.