Philosophy and Goals

Upholding the corporate culture of integrity, excellent service, high quality and innovation, PSMC’s corporate governance framework is consistent with Taiwan's Company Act, Securities and Exchange Act, and other related laws and regulations. PSMC also established our own systematic internal control norms of " Ethical Corporate Management Best Practice Principles”, “Procedures for Ethical Management and Guidelines for Conduct", “Sustainable Development Best Practice Principles”, “Codes of Ethical Conduct of the Company”, “Procedures for Handling Material Inside Information Operations”, and “Procedures for the Prevention of Insider Trading” to strengthen and perfect the internal control system, to enhance information transparency, so as to protect the rights and interests of shareholders, stakeholders and the company.

  • 1/2↑

    Independent Directors

    Ratio of independent dirctors

  • 100 %

    Professional Training

    Executives completes professional training

  • 100 %

    None Violation

    None Violation of Regulations

Corporate
Governance
公司治理

Corporate Governance and Management Policy

Regulatory compliance is the basic criterion for the sustainability of a corporation. Failure in effectively managing regulatory compliance and corruption risks would negatively impact the Company’s image and operation. We have established relevant rules and demand our employees to follow the ethical standards when conducting business; the Company’s stakeholders are also made aware of the standards. Further, information on the corporate governance is disclosed on the Company website. These rules are put in place to help the Company fulfill our social responsibilities and achieve integrity management.

  • Policy
    • Upholding the corporate culture of integrity, excellent service, high quality and innovation, PSMC has established the systematic internal control norms of " Ethical Corporate Management Best Practice Principles”, “Procedures for Ethical Management and Guidelines for Conduct", “Corporate Social Responsibility Best Practice Principles “, “Guidelines for the Adoption of Codes of Ethical Conduct “, “Sustainable Development Best Practice Principles”.
    • The preparation of the financial reports is made in accordance with the accounting policies of the Company - “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, other relevant rules, and regulations, and the Generally Accepted Accounting Principles. The annual financial statements are audited by certified public accountants (CPAs) to ensure their fairness.
    • The TCFD (Task Force on Climate-Related Financial Disclosures) framework is planned to be gradually brought into practice.
  • Commitment & Target
    • Short-term
      1. No cases of corruption
      2. No cases of anti-competitive conduct
      3. No violation of regulations
      4. Introduce TCFD framework
      5. Attend the corporate governance evaluation of domestic listed company. The target evaluation score > 85 points
    • Mid-term
      1. Complete the RBA verification audit of each fab in 2023
      2. Report the climate-related financial information based on TCFD recommendations in 2023
      3. Achieve the evaluation score of 90 points or more on corporate governance evaluation of domestic listed company
    • Long-term
      1. Maintain an evaluation score of 90 points or more on corporate governance evaluation of domestic listed company
  • Management
    • Established Ethical Committee to receive anonymous or signed emails from employees and external parties to handle whistle-blowing cases in violation of the Professional Norms. Both internal and external parties can file complaints anonymously or by name.
    • Used educational trainings and announcements on the website to raise the awareness of employees on anti-corruption and business ethics.
    • There was a "Ethical Reporting /Whistle-blowing System" and a "Reporting Mailbox" in place. Employees need to comply with the "Ethical Corporate Management Best Practice Principles”, and “Procedures for Ethical Management and Guidelines for Conduct". The reported cases are compiled and reported to the President or independent directors by the Ethical Committee members.
    • The Internal Auditing Office conducted audits on the internal control system of various operations on a regular or irregular basis, so as to ensure the effectiveness and the implementation of the internal control design.
  • Mechanism
    • If employees failed to comply with the ethics and integrity principles as required by the Company during the execution of their duties, both internal and external parties can file complaints anonymously or by name, and the Ethical Committee will investigate and report to the President and (or) independent directors by Ethical Committee members., depending on the severity of the circumstances.
    • The Internal Auditing Office reported any deficiencies in the internal control or improvements to deficiencies during routine audits, and the self-evaluation results of the Company’s departments and subsidiaries to the Audit Committee and the BOD on a regular basis.
    • We conduct a self-evaluation on our internal control system at least once a year. The BOD and the President will issue a Statement on the Internal Control System accordingly.
    • The Company’s annual financial reports need to be approved by the BOD through a resolution and audited by CPAs, and then submitted to the Audit Committee for review, by whom a review report will be issued and submitted to the shareholders’ meeting for approval.
    • The Company’s responsible units were responsible for collecting company information and disclosing it on the website.

The Structure of PSMC Corporate Governance

The top corporate governance unit of PSMC is the BOD; all members of the BOD are elected through voting by all shareholders. The directors’ responsibilities are to establish the Company’s vision for the future, strategies, operations, budget planning, as well as plan the Company’s mid-long term development direction while supervising the Company’s operational plans and execution.