Stakeholder Communications

Material Topics

In order to understand the extent to which stakeholders are concerned with WIN's sustainability issues, we have referenced the GRI Standards guidelines and the criteria for AA1000 stakeholder engagement to compile these issues, so that we can understand their economic, environmental and social (people) impacts. This information serves as the basis for the analysis of material topics. WIN analysis the material topics every year, a total of 13 material topics were identified in the current year, including 14 GRI indicators and 1 customized indicator.

Identification Procedures for Material Sustainability Topics

Result of Analysis of Material Topics

Communication with Stakeholders

This information serves as the basis for the analysis of material topics and the results were reported to the Board of Director at the end of each year. Below please see the stakeholder engagement of the Company:

Stakeholder Issues of Concern Communication Frequency and Method Communication Achievements
Customers 1.Customer privacy
2.Information security
3.Sustainable supply chain management
Irregular:Video conference, visiting customers and on-site audit by customers
Annual:Customer satisfaction questionnaire survey
Contact: Ms. Chen
E-Mail: wincsr@winfoundry.com
1. Customer satisfaction surveys produced an average satisfaction score of 89.2
2. Customer visits and accepting on-site audits by customers
Employees 1.Employment
2.Labor/ management relations
3.Training and education
Irregular:Website portal, project satisfaction survey and sexual harassment grievance hotline & email
Quarterly:Employee/employer meeting, foreign labor seminar and meetings of the Employee Welfare Committee
Contact: Ms. Chen
E-Mail:investigating.office@winfoundry.com
1.Health promotion seminars produced an average satisfaction score of 4.63 (out of 5 points)
2. Annual medical check-ups produced an average satisfaction score of 9.51 (out of 10 points)
Suppliers/contractors 1.Information security
2.Sustainable supply chain management
3.Occupational health and safety
Irregular:On-site audit of suppliers, and communicate with suppliers via telephone or email
Annual:Supplier/contractor assessment on environmental protection and safety and health management systems and performance
Contact: Ms. Chen
E-Mail:wincsr@winfoundry.com
1.Ratio of new suppliers that signed the WIN Supplier Code of Conduct reaches 100%
2. The sustainability self-evaluation questionnaire was distributed to 68 companies with a 93% response rate
3. Number of suppliers with high quality/EHS risk audited: 49
Government authorities 1.Customer health and safety
2.Water and effluents
3.Energy
Irregular:Official documents, and participation in seminars and conferences held by government
Monthly:Reporting required information via the Market Observation Post System (MOPS)
Contact: Ms. Chen
E-Mail:wincsr@winfoundry.com
Participation in government seminars or conferences
Shareholders/investors/
financial institutions/
creditors
1.Employment
2.Economic performance
3.Labor/ management relations
Irregular:Investment institution conference and telephonic response to investor/media questions
Quarterly:Investor conference and financial report
Annual:Annual report and shareholders' Meeting
Contact: Mr. Tsen
E-Mail: ir@winfoundry.com
1. Held 12 investor-related activities, including ones for explaining the Company's operating status
2. Spokesperson responded to shareholders’ questions on an irregular basis
General public/
non-government organizations
1.Forced or compulsory labor
2.Water and effluents
3.Economic performance
Irregular:Participation in charity events and industry-university collaboration
Contact: Ms. Chen
E-Mail:wincsr@winfoundry.com
Held a total of 7 charitable activities and industry-academia collaborations, including environmental protection, talent development, and giving back to the society

WIN's Strategy and Risk Assessment
Item for Material Topics

Material Topics Risk Assessment Item Importance to WIN’s Operation and Impacts Risk
Level
Management Approach Long-term Objectives
Corporate Governance Economic performance A good business strategy is key to maintaining a healthy capital foundation that maintains investor, creditor, and market confidence, supports future operations and development.
There is a risk that poor operating performance may damage the Company's image and the interests of investors and creditors.
Good economic performance may deepen the confidence of investors, creditors, and the market to support future operational development and provide opportunities for maximizing benefits for customers, suppliers, and employees.
Low 1. Maintain a sound capital base to support future operational development
2. Ensure good corporate governance
3. Expansion of product applications in other sectors
4. Investment of more resources in technology innovation, quality improvement, and reduction of manufacturing cost
Continue to enhance product development, invest in process technologies, and maintain our leadership position
Corporate Governance Sustainable Supplier Management Suppliers are important partners for the sustainable management of WIN Semi. To strengthen cooperation with suppliers, improve quality, and reduce supply chain risks, we help suppliers understand and establish sound sustainable operation. This is crucial to our long-term operation.
Risks that may arise from failure to properly manage social and environmental performance of suppliers:
1. Poor quality of supply resulting from improper management.
2. Inability to stabilize supply resulting from failure to establish climate resilience.
Actively cooperate with local suppliers and improve their development capabilities. In addition to reducing carbon emissions, we also create local employment opportunities, increasing opportunities to contribute to the overall environment and society.
High 1. Set standards: Code of conduct for WIN Semi’s suppliers
2. Assess risks: Conduct risk assessment based on the supplier rating table
3. Evaluate suppliers: Conduct annual supplier performance evaluation
4. Continue to improve management: Require suppliers to continue to improve based on performance evaluation results
1. 100% of materials used for producing wafers is sourced from mines in non-conflict areas
2. Completion of the sustainability management self-assessment by 100% of suppliers of direct materials
Corporate Governance Anti-corruption “Integrity and accountability” constitute one of WIN’s core values. We uphold corporate governance principles and require members of the governance unit and company employees to uphold high moral standards and implement ethical management. We prohibit any behavior that may damage WIN’s reputation or interests in order to achieve sustainable development.
Possible risks caused by corruption incidents:
1. Damage to the Company's interests.
2. Damage to the Company’s reputation.
Possible opportunities created by proper management: A positive company image not only meets the requirements of existing customers, but also attracts opportunities for cooperation with potential customers.
Low 1. Formulated 7 relevant policies and regulations
2. Promote the Company’s core value of “integrity and accountability” during training courses for new employees
3. Promote the policy of integrity to employees at the end of each year
4. Set up an independent mailbox for whistleblowing
1. 0 penalties for violations of the ethical corporate management policy by Company employees
2. Completion of training on the ethical corporate management culture and policy reaches 100%
Corporate Governance Customer Privacy Customer satisfaction is one of the core values of WIN Semi. As a wafer foundry service company, we can only continue to gain customer trust by protecting customer privacy and confidential information.
Possible risks created by improper management:
1. Risks of loss of orders, damage to company reputation, and impact on the company's operations and development.
2. The leak of private information may result in criminal liability and fines.
Possible opportunities created by proper management:
Continuously strengthen information security, aiming to exceed customer requirements and gain customer trust to maintain the company's competitive advantage.
Medium 1. Obtained ISO/IEC 27001 Information Security certification.
2. Continue to strengthen information security awareness among employees.
3. Continue to strengthen system and data security, including establishing a complete anti-virus system, file encryption system and mechanism, and conducting strict access control on customer data and files.
4. Audit prevention: Perform website and server vulnerability scanning.
No leakage of customer privacy incidents
Environment Energy The climate affects the coexistence of humans and other species on Earth, and indirectly affects companies’ sustainable operations and management strategies, impacting operations. WIN has adopted a corporate sustainable development philosophy that supports environmental protection and green production and we continue to supervise or improve emissions reduction measures for energy management, greenhouse gas emissions management, air pollution control, water resource management, and waste management. We implement these measures and work hard to reduce the impact of production on the environment. Possible risks caused by improving energy efficiency and using renewable energy:
1. Purchasing energy-saving machines and implementing various energy-saving measures will increase costs and expenses.
2. Replaced old machines need to be scrapped, causing an increase in greenhouse gases in the process.
3. If solar panels (renewable energy) are installed, due to Taiwan's high risk of natural disasters and the technology for handling damaged solar panels being immature, it may lead to waste that cannot be effectively recycled.
Opportunities that may arise from improving energy efficiency and using renewable energy:
1. Reduces the use of non-renewable energy and the impact on the environment.
2. Process improvement methods to save energy can achieve the highest cost-effectiveness and reduce the need for replacing machines.
Very High 1. Introduced ISO50001 energy management system
2. Prioritize high-efficiency and low-energy consumption models for replacement of equipment
3. Establish annual energy conservation management objectives to review the performance in quarterly management and review meetings
1. Reduce electricity consumption (kWh/6"e wafer) by 12% from 2018 to 458.58
2. Renewable energy use reaches 30%
Environment Water and effluents Risks of water resource management:
1. Extreme climate causes instability in available water resources.
2. The government’s imposition of water consumption fees increases production costs.
3. Adding a water recycling system will increase water costs due to initial construction costs, land use, and operating expenses.
4. Due to the increase in control items for discharged water, additional treatment systems or chemical dosages are required, resulting in an increase in the cost of discharging water.
Possible opportunities created by proper management:
1. Implement reduction strategies at the source to reduce production costs, reduce wastewater volume, and reduce the occurrence of environmental pollution.
2. Promote the recycling and reuse of water resources and reduce the discharge of waste water.
3. Participate in the "Forward-thinking Infrastructure for Wastewater Recycling and Reuse Project" and use the Taoyuan City Government's stable water production from the recycled water project to reduce the demand for raw water and reduce the collection of water fees.
Medium 1. Source reduction
2. Water recycling and reuse
3. Water pollution control
4. Management of recycling system for acid and alkali wastewater generates during process.
5. Management of recycling system for chemical mechanical polishing wastewater generates during process
Reduce water withdrawal (m3/6"e wafer) by 12% from 2018 to 3.03
Environment Emissions Possible risks of greenhouse gas emissions:
1. Increased risk of extreme climate and company disasters.
2. The government imposes a carbon fee, which increases production costs.
Possible opportunities arising from properly managing and reducing greenhouse gas emissions:
1. Reduce environmental impact.
2. Strengthen climate disaster resilience and maintain operational stability.
Very High 1. Establish annual PFCs management objectives and review performance in quarterly management and review meetings
2. In the future, the local scrubbers for PFC emissions removal in new production lines will gradually be equipped with models that achieve 90% or higher PFCs removal efficiency. Existing production lines will undergo assessment and be gradually replaced or upgraded.
1. Reduce PFCs emissions (ton CO2e /6”e wafer) by 50% from 2018 to 0.114
2. VOC emission removal efficiency > 92%
Environment Waste Possible risks caused by the generation of large amounts of waste:
1. Increases the cost of waste disposal and the possibility of improper handling, which will lead to legal risks.
2. The materials used in the manufacturing process are not fully recycled, which not only leads to wasted resources, but also impacts the environment.
Possible opportunities created by proper management:
1. Implement reduction strategies at the source to minimize resource use at the source of production, reduce production costs, reduce waste generation, and reduce the occurrence of environmental pollution.
2. Maximize the utilization of waste resources produced and reduce the energy consumption and cost of waste treatment, while improving the benefits of waste recycling and renewable resources.
Low 1. Reduce the use of raw materials in production
2. Increase the recycling rate of waste solvents
Reduce waste solvent volume (kg/6"e wafer) by 24% from 2018 to 12.51
Society Employment Human resources are our most important asset, as well as the driving force behind our growth. To fulfill our CSR and reduce human rights risks, we provide employees with a friendly workplace. We attach importance to employee benefits, provide employees with communication and complaint channels, and are actively improving the work environment. Possible risks caused by improper management:
The severe problem of declining birth rates has led to a worsening shortage of workers, with the labor gap expanding every day. This intensifies the competition for talent in the industry, raising concerns about the inability to recruit or retain many excellent talents when needed.
Possible opportunities created by proper management:
Convey that we value their development needs, build an internal talent pool, and understand each person's strengths so that they can better utilize their strengths and increase the company's competitiveness.
Low 1. Offers competitive salaries, training programs, and incentives
2. Remuneration policy: No different treatment on the basis of such factors as gender, age, race, religion, political affiliation, marital status
3. Establishment and implement human rights management guidelines: Prohibit forced labor, ban child labor, non-discrimination, respect for freedom of association, respect for privacy, pay attention to employee health, balance safety and work
A 5% to 10% employee turnover rate
Society Employee diversity and equal opportunity Possible risks caused by improper management:
If there are various biases in the workplace, they will lead to wrong judgments and may prevent talents from realizing their potential.
Possible opportunities created by proper management:
Create an equal working environment and realize the corporate vision and core values.
Low Ratio of female senior managers: 15%
Society Human rights assessment Possible risks caused by improper management:
Human rights are fundamental principles. The inability to protect the basic human rights of employees and suppliers will have a significant negative impact on the employer’s brand.
Possible opportunities created by proper management:
The company is committed to creating a friendly workplace that values human rights, which will optimize the overall employee experience and enhance the company's image.
Low No serious law violations (fines higher than NT$1 million)
Society Training and education We established a comprehensive training and development system to improve employees’ professional skills and satisfy requirements for growth.
Possible risks caused by improper management:
Results in a talent gap, an inability to respond to rapidly changing talent risks, and the inability of employee capabilities to keep pace with the times.
Possible opportunities created by proper management:
The cultivation of talents improves the competitiveness of enterprises in response to external competitive demands, as well as changes in technology and policies.
Low 1. Formulated the Education and Training Procedures and systematically integrate internal and external resources
2. Implement the performance management and development system to review and measure employees’ skill development and create the optimal organization and personal performance
1. A 100% completion rate for learners of the engineering training roadmap
2. A 60% usage rate of the non-compulsory resources of the WIN Learning platform
Society Occupational health and safety In the semiconductor manufacturing process, a large number of chemicals and high-risk machines are used, so safety and health management is very important. Occupational safety and health management is properly carried out through the operation and promotion of the management system.
Possible risks created by improper management:
1. Personnel injury.
2. Asset loss.
3. Legal violation.
Possible opportunities created by proper management:
1. Maintain the physical and mental health of workers.
2. Protect company assets and operations.
3. Effectively reduce potential harms.
High 1. Use education materials to strengthen employees’ awareness of correct and safe conduct at work
2. Convene quarterly meetings of the Occupational Safety Management Committee to discuss and review related issues in order to prevent from accidents and promote health.
3. Implement occupational health and safety policy
Zero significant occupational disasters

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