Message from the ESG Committee Chairman

2023 ended amid global economic downturn and geopolitical risks. Looking back on the whole year, although the pandemic has gradually subsided, the global economy is still shrouded in the haze of inflation. In addition, regional conflicts continue, with the Russia-Ukraine war still raging and the Israeli-Palestinian conflict resurfacing. US-China trade has become increasingly divided, making 2023 a difficult year. WIN Semiconductors Corp. (referred to as "WIN" in this Report) continues to enhance corporate resilience through the practice of ESG. We adhere to the core values of "Integrity and Accountability, Innovation, Customer Satisfaction, and Quality Foremost" to maintain competitiveness within the industry.

Realizing Net Zero Emissions

WIN attaches great importance to the issue of global climate change and is committed to promoting low-carbon transformations. We completed the product life cycle assessment of Fab A and Fab B in 2023. Based on the life cycle assessment results of Fab A and Fab B in 2022, "electricity usage” occupies a significant proportion of a number of environmental indicators, so WIN’s Fab A and Fab B converted coal-fired power generation to other energy sources with lower carbon emissions in 2023. In addition, the ISO 50001 Energy Management System was introduced in Fab A to improve energy efficiency. A total of 20 energy conservation and carbon reduction plans were completed in 2023, which reduced electricity consumption by 1,043,709 kWh and reduced carbon emissions by 738 tonnes CO₂e. The Company invested NT$14.7 million in a 250 kW solar PV system in 2022 and NT$19.8 million in a 314 kW solar PV system in 2023, and the zero carbon renewable energy is supplied to Fab C. Through various energy-saving and carbon-reduction measures and the installation of energy sources with lower carbon emissions, WIN regularly reviews whether the net-zero path is consistent with actual emissions, so as to gradually move towards the net-zero goal.

In extreme climate conditions, water resources are also deeply affected, with the disparity between abundance and scarcity becoming increasingly extreme. Although WIN is located in the Taoyuan area as a low to moderate pressure on water usage, it still regularly tests the effectiveness and training of its contingency plans for natural disasters to enhance climate resilience. In order to achieve the goal of "sustainable recycling and reuse of water resources", 11 water-saving projects were implemented in 2023, increasing the amount of recycled water by 308,055 metric tons per year, with a recycling rate of 33.54%. In 2023, WIN was awarded "Leadership Level" by CDP for Water Security for the first time.

Talent Development and Harmonious Workplace Environments

Talent is the most important asset of WIN and the source of our growth. With the goal of encouraging more employees to build families and have children with the support of the Company's benefits policy, and in response to the government's policy to encourage childbirth, WIN provides monthly subsidies of up to NT$5,000 for each child under the age of 7. In 2023, NT$44.44 million was issued as childcare subsidies, benefiting 716 employees. Since the implementation of childcare subsidies in 2019, the subsidies have amounted to NT$182.69 million. At the same time, we support the personal career development of employees and encourage the internal transfer of employees. In 2023, the employee replacement rate for internal vacancies reached 79.12%, a new high in the past seven years. WIN strives to create a workplace environment with gender equality. WIN Semi has been selected in the GEI for two consecutive years since 2022.

In recent years, amidst a shortage of talent in the semiconductor industry, WIN has been deeply involved in campus activities, collaborating with National Central University, National Yang Ming Chiao Tung University, Tamkang University, and Lunghwa University for industry-academia exchanges. This effort includes establishing the “Joint Research and Development Center”, “NYCU-Win Semiconductor Technology Innovation Center”, and conducting campus lectures to strengthen talent development and nurture future industry professionals.

Implementation of Sustainable Governance

Although 2023 was a tough year, WIN has not forgotten its commitment to ESG and corporate governance. In 2023, WIN once again ranked in the top 5% of listed companies in the Corporate Governance Evaluation for the ninth consecutive year. We were also selected for the fourth consecutive year as a constituent of the DJSI World Index. Additionally, we were honored with the 16th Taiwan Corporate Sustainability Award. R&D expenses accounted for 11.39% of revenue, a new high in five years. It shows that even in the face of operational challenges, WIN continues to invest in R&D to maintain our competitiveness. We constantly encourage ourselves to persist in doing the right thing in the face of adversity.

Future Prospects

WIN established the ESG Committee, continuously promoting corporate governance, developing a sustainable environment, and maintaining social welfare. Internally, WIN not only upholds the spirit of responsibility and corporate governance that we have long promoted but we also need continuous innovation and meet customer needs to create a friendly workplace environment, actively retain talent, and externally, we show our concern for society and the pursuit of environmental sustainability. We continue to promote ESG to achieve the goal of sustainable management.