Message from the ESG Committee Chairman

In 2024, the world faced increasing geopolitical conflicts, with the wars in Ukraine and the Middle East continuing, as well as ongoing U.S.-China trade and tariff tensions. The previously efficiency- and cost-driven globalized supply chain has gradually been forced to take sides, posing new challenges for businesses. However, the fluctuations in the operating environment have not affected WIN’s commitment to and achievements in ESG and corporate governance.

Realizing Net Zero Emissions to Improve Climate Resilience

In the World Economic Forum’s Global Risks Report 2024, short- and long-term risks were ranked according to major global events in 2023. Extreme weather events ranked as the second most severe short-term risk and the top long-term risk, demonstrating that mitigating the impacts of climate change is currently a top global priority.

WIN obtained the environmental management system (ISO 14001) and greenhouse gas (ISO 14064) certification to fulfill our commitment to environmental sustainability. The results of the GHG inventory showed that the main source of GHG emissions is electricity use. Therefore, WIN began implementing the ISO 50001 energy management system in each plant in 2023. As of the end of 2024, Fab A and Fab B obtained third-party certification, and continued to improve energy efficiency through energy conservation actions. A total of 41 energy conservation and carbon reduction plans were completed in 2024, which reduced electricity consumption by 1,555,831 kWh and carbon emissions by 3,793 tons CO₂e. Those plans include 323,090 kWh of self-generated renewable energy, demonstrating WIN’s commitment to supporting the government's Renewable Energy Development Act. The Company continues to monitor renewable energy trends and evaluate the adoption of more diverse renewable energy sources to increase the overall usage ratio of green energy in our operations. Meanwhile, in response to the Paris Agreement, WIN implements a net-zero strategy and regularly reviews the alignment of our net-zero roadmap with actual emissions. The Company closely monitors developments in emission reduction technologies and related issues, continuously refining our net-zero planning accordingly.

Extreme climate conditions also impact water resources, with growing variability between wet and dry seasons. Although WIN is located in Taoyuan, an area classified as having low to moderate water stress, the Company is proactively participating in the Water Resources Agency’s Wenqing Water Park Water Recycling Center Water Reclamation Project. The project is scheduled to begin supplying water in 2027. It will diversify water sources to ensure a more stable supply, reduce reliance on raw water from the Shihmen Reservoir, and lower the risk of water shortages during dry seasons. In order to achieve the goal of "sustainable recycling and reuse of water resources", 9 water-saving projects were implemented in 2024, increasing the amount of recycled water by 334,332 metric tons per year, with a recycling rate of 35%. In 2023 and 2024, WIN was awarded "Leadership Level" by CDP for Water Security for two consecutive years.

Friendly Workplace and Social Inclusion

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 2024, NT$39.29 million was issued as childcare subsidies, benefiting 656 employees. Since the implementation of childcare subsidies in 2019, the subsidies have amounted to NT$221.99 million. WIN is also committed to creating a workplace environment with gender equality. In 2024, the Company participated in the TCSA Individual Performance Awards for the first time and was honored with the “Gender Equality Leadership Award”, recognizing our efforts in creating a gender-friendly work environment.

WIN provides a leave system that is superior to statutory requirements. Once new employees pass a review after three months' service, they may enjoy 4 days of new hire leave (superior to provisions in the Labor Standards Act) and 3 days of statuary special leave. At the same time, we support the personal career development of employees and encourage the internal transfer of employees. In 2024, the employee replacement rate for internal vacancies reached 73.44%. WIN has also responded to the government’s policy on continued employment of senior workers by retaining employees approaching the mandatory retirement age of 65. These employees are re-employed for over six months with compensation no lower than their original salary, enabling them to remain in the workforce and contribute their experience and strengths. The Company remains committed to creating a stable and friendly workplace, attracting and retaining top talent across diverse fields to grow together with the company.

WIN is actively committed to cultivating compound semiconductor talent in Taiwan. Building on long-term academic collaboration, the Company has established industry-academia partnerships with National Taiwan University, National Central University, National Yang Ming Chiao Tung University, National Cheng Kung University, Tamkang University, Lunghwa University of Science and Technology, Taipei City University of Science and Technology, and Asia Eastern University of Science and Technology. In 2024, WIN further strengthened its efforts by joining the NTU System-on-Chip Center (SoC), collaborating with industry partners, professors, and students to nurture talent in system-on-chip technologies together.

WIN spares no effort to invest in social welfare and has long supported the "Paper Windmill Anti-Drug Youth Theater Project", becoming an annual sponsor. In 2024, Chairman Dennis Chen served as the Chairman of the "Paper Windmill Foundation" and became the first corporate chairman of the foundation since it was founded. We hope to strengthen the ESG execution of the team through the integration of enterprise, technology, and culture, achieving combined results that are greater than their parts.

Implementation of Sustainable Governance

Transparency of information is a critical part of fulfilling ESG commitments and corporate governance. Despite fluctuations in the business environment, WIN remains steadfast in our ESG and governance efforts, achieving significant recognition in 2024. The Company was honored with the 17th Taiwan Corporate Sustainability Award, ranked in the top 5% of the TPEx-listed companies in the Corporate Governance Evaluation for the tenth consecutive year, and was recognized among the top 10% of benchmark electronics companies with a market capitalization above NT$10 billion. Additionally, WIN was selected for inclusion in the DJSI World Index for the fifth consecutive year and the S&P Sustainability Yearbook for the sixth consecutive year. The Company also received an MSCI ESG rating of ‘A’ and was awarded the ‘Prime’ status in the ISS ESG rating.

Future Prospects

The biggest challenge remains the ongoing global political and economic uncertainty. In response to these shifting conditions, WIN is committed to maintaining operational flexibility by investing in R&D based on mainstream market trends and customer needs. Internally, the Company continues to uphold a culture of accountability and strong corporate governance, while fostering a supportive workplace to retain talent. Externally, WIN remains engaged with society, stays attuned to international ESG initiatives, and strengthens its ability to adapt to risks, thereby advancing its long-term sustainable competitive value.