To meet the international environmental regulations and to provide clients/customers with innocuous products, PSMC has established a hazardous-substance management system, both of which ensure that no prohibited substances are used in or mixed with our products and that no products are polluted by hazardous substances. All these efforts are made to reduce the possible impacts of our products on the environment, and, furthermore, to fulfill our corporate social responsibility.

PSMC not only implements the control of hazardous substances in the purchase of raw materials, product manufacturing and transportation, but also guides suppliers and outsourced processors to join in on the implementation, and work together to create a green product supply chain.

Air pollutants produced by the semiconductor manufacturing industry are divided into two categories: acid/alkaline gases, and VOCs gases. Acid/alkaline waste gases are treated through wet scrubbers and then released. VOCs gases, after being adsorbed and concentrated through a zeolite rotor concentrator, are thermally incinerated and then discharged into the atmosphere. The Company adopts the best technologies to prevent pollution, in order to ensure that discharged pollutant content will meet or exceed regulatory requirements.

The volatile organic waste gas systems in all factories of PSMC are equipped with zeolite runner treatment equipment. Fab P1/2, P3, P5, 8Aand 8B also each have a set of volatile organic compound treatment and control equipment, so that the removal rate can be more effectively controlled. In 2025, the overall average volatile organic waste gas (VOCs) removal rate of PSMC has reached 97.80%, which is better than the best control technology conditions for semiconductor manufacturing processes in the "Best Available Control Technology for Stationary Pollution Sources" ( ≧ 92%). The Zeolite concentration conversion wheel system reduction rate has also increased year by year.

In addition to taking measures to strengthen in-factory air pollution control equipment against possible polluting species, PSMC also rolling assessment whether to add or improve control equipment for the manufacturing process, including such as Local Scrubber (L/S) operation optimization and treatment efficiency verifi¬cation, Central Scrubber (C/S) treatment efficiency veri¬fication, efficiency improvement, addition or replacement of control equipment, and white smoke improvement projects, etc. The air pollution improvement projects and results in 2025 are as follows:

PSMC has designated personnel at each fab to manage waste disposal, and the Company continued to reduce waste generation through monitoring, veri¬fication, and equipment upgrades, such as replacing outdated machines and pipeline valves. In 2025, the waste disposal cost was approximately NT$143 million, while the total waste generated reached 19,062.57 metric tons, representing a 0.88% increase compared to 2024. The overall waste recycling rate was 94.97%, successfully achieving the 2025 target of ≧ 92%.
PSMC continues to hire legal, local government-certifi¬ed disposal, treatment, and recycling enterprises to perform waste disposal. Through our contracts with them, we confi¬rm that quantity data for the waste transfer process undergoes third-party veri¬fication. This helps achieve the benefi¬t of lessening landfi¬ll burial, and enhances waste recycling and reuse rates. In 2025, the waste land¬fill rate was 0.1%, better than the target of ≦0.5% burial rate.

PSMC adopts reduction, recycling, and reuse as its core waste management philosophy. Through process improvement, it seeks opportunities to reduce waste and conducts waste reduction training to ensure employees can properly handle waste generated in the plant area. This reduces waste generation and effectively mitigates potential environmental risks. The Plant Safety, Health and Environmental Protection Committee compares the rationality of waste output each quarter, confi¬rming management effectiveness through comparative analysis of raw material usage and waste generation. Internal management audits are conducted in accordance with ISO 14001 environmental management system requirements to assess the effectiveness of waste generation and management measures within the PDCA management cycle.
Overall management operations are primarily aligned with PSMC 's four main objectives: source reduction, end-of-pipe waste reduction, increasing the value of waste reuse, and proper waste disposal and tracking. These objectives guide the planning and implementation of various waste reduction plans.

PSMC develops a waste manufacturer audit plan every year, cooperates with industry associations and its own factory audit schedules, and regularly visits industrial waste removal and treatment vendors, and waste treatment compliance as the primary audit items. For deficiencies identi¬fied during audits, PSMC utilizes its electronic auditing system (E-Auditing) to issue audit reports and track improvements. All corrective actions are completed within the specifi¬ed deadline, and vendors are required to strengthen the implementation and management of environmental, safety and health/¬re protection regulations to avoid the risk of illegal cooperation by cooperative vendors. In addition, the annual audit results are provided to the procurement department as a reference for the following year's purchasing allocation decisions.

PSMC has signed the "High-tech Industry Waste Cleanup and Self-Discipline Convention" initiated by the Taiwan Semiconductor Association since 2017, and continues to cooperate with the association in implementing the "Waste Processing Agents" "Counseling, Assessment and Promotion Plan" to implement conduct audits of waste vendors to confi¬rm that management and operations comply with the requirements of the self-discipline convention. In recent years, PSMC have not been punished by relevant authority units due to environmental pollution incidents and have not suffered any losses, and there have been no pollution disputes since its establishment.

Being a green enterprise is one of PSMC's goals. The Company conforms to the hazardous substance management policy, from obeying the law to mitigating risks, in hopes of improving its Hazardous Substance Process Management (HSPM) and satisfying the needs and expectations of its stakeholders. As such, the Company has attained the certification of IECQ QC080000, and on the existing basis of ISO9001, constructed the technological management process of QC080000 to control hazardous substances. These measures ensure legal compliance and satisfy its customers, proving it prioritized and committed to the systematic management of hazardous substances. In the second quarter of 2020, all five plants of the Company passed the IECQ QC080000 certification.

PSMC is committed in its social responsibility in environmental protection, thus pledges that its manufacturing facility and process has complied with international standards and regulations on environmental protection issues, which means meeting customer requirements on environmental protection specifications for products without the expense on the environment. Since 2003, PSMC has been actively promoting green design, green procurement, green manufacturing, and green packaging. Also, the Company has been approved by all customers and has obtained the certification of SONY to become a Green Partner. The company's products are in compliance with the requirements of relevant international regulations listed in the IEC62474 material declaration list. Through customer's investigation, the proportion of PSMC’s product containing IEC 62474 substances is 0%.

To ensure the sustainable development of the environment and society, governments from various countries and environmental groups (e.g. the EC member states) have constructed related regulations for environmental protection. The governments then enact laws and impose penalties in ways that corporations and non-governmental environmental groups can practice. Below is a table with summarized common international regulations: