PSMC's climate policy is centered on achieving net-zero emissions by 2050, has established netzero targets, commitments, and carbon reduction pathways to build a sustainable ecosystem. The Company actively supports national policies and participates in the global low-carbon transition, while ensuring alignment with the goals of the Paris Agreement. PSMC encourages the Company and among our supplier partners to jointly implement energy conservation and carbon reduction. In addition to implementing internal net-zero actions, PSMC has also developed a management system for participating in climate change-related public policy engagement and industry associations. Related departments regularly review and monitor whether the activities and industry associations PSMC participates in align with the Paris Agreement. If any misalignment is identified, PSMC will actively engage in discussions and negotiations to address the issue. If no improvements are made, PSMC will withdraw from the activity or industry association.

Public Affairs Governance Policy  

PSMC adheres to the Sustainable Development Best Practice Principles as the highest guiding principle for corporate sustainability. With the vision of "Innovative Technology, Serving Society", the Company is committed to environmental sustainability, social prosperity, and long-term corporate success as part of its mission to contribute to society. We are dedicated to advancing corporate sustainability while ensuring business operations and protecting shareholder interests. PSMC actively participates in industry unions, associations, and related organizations, engaging in close exchanges with the industry, staying informed on public issues, and contributing to the formulation and promotion of industry-related policies.

• Industry Associations: PSMC's participation in public affairs and public policy through industry associations follows a structured review process. Related departments first evaluate the association's relevance to the Company, its scale and influence, and whether its advocacy aligns with PSMC's development goals. Upon approval by department heads, the final decision to participate is authorized by the President, who designates the appropriate internal unit to engage with the association and support the advancement of public policy initiatives. If, during participation, PSMC finds that the association or its activities deviate from the Company's original intent or stance, an internal meeting will be convened to discuss the issue, clarify concerns, and express the Company's position. If a misalignment with PSMC's principles is confirmed, the Company will withdraw from the relevant association or activity.
• When engaging in advocacy activities and industry associations, related departments are responsible for reviewing and managing different policy discussions to ensure compliance with the Paris Agreement. This is done through meetings or formal approvals, providing timely feedback based on practical considerations and reaching a consensus. The conclusions are then reported to senior management and governance bodies for review.

In 2025, PSMC participated in a total of 24 domestic and international industry associations related to industrial development, among PSMC's position in external associations related to climate change was fully aligned with the Paris Agreement goals, and the Company did not engage in any direct lobbying activities.

The Taiwan Semiconductor Industry Association (TSIA) is a non-profit, industry-representative organization founded on the principle of "caring for industry development." It aims to promote collaboration among members and advance the collective interests and sustainable development of the overall industry.
As one of the Executive Board Directors in TSIA, PSMC participates in and promotes the following initiatives:

• Industrial Decarbonization Declaration: Aiming for an absolute 10% reduction in greenhouse gas emissions by 2030 (compared to the 2020 baseline) and achieving net-zero emissions by 2050.
• High-Tech Industry ESH (Environment, Safety, and Health) Seminar: Sharing insights on net-zero pathways and decarbonization technologies.
• Energy Management and Green Supply Chain: Through the Energy Committee and relevant working groups, TSIA promotes energy efficiency and green procurement. It also provides industry feedback and coordination strategies to the government regarding the "Greenhouse Gas Reduction and Management Act" and other climate-related regulations.
• Voluntary Energy Saving and Carbon Reduction Declaration: Committed to reducing Scope 1 process greenhouse gas emissions, implementing comprehensive energy management systems to lower Scope 2 carbon emissions, and collaborating with suppliers to reduce Scope 3 emissions. The goal is to minimize environmental impact while maintaining world-class innovation and productivity.

In 2025, the association’s climate-related efforts have focused on hosting professional seminars, setting and promoting industry net-zero goals, and deepening green supply chain collaboration to address the challenges of climate change.

The ASIP membership covers six major sectors: "Integrated Circuits, Computer Peripherals, Communications, Optoelectronics, Biotechnology, and Precision Machinery." Through clustering effects, vertical integration, and professional division of labor, the association has established various specialized committees to focus on industry issues and solutions.
In 2025, being one of the Executive Board Directors, PSMC’s participation and advocacy included:

Industrial Safety and Environmental Protection Month Series

• Climate Change Adaptation and Mitigation: Conducting climate risk assessments and developing response measures for high-tech facilities.
• Analysis of Environmental Regulations: Providing guidance and training on the latest carbon fees, carbon taxes, and greenhouse gas reduction regulations.
• Sustainable Technology Exchange: Sharing technologies related to energy saving, water recycling, and waste reduction/reuse.

2050 Net-Zero Emissions and Energy Transition Initiatives

• Carbon Inventory and Decarbonization Pathways: Assisting members in building carbon inventory capabilities and formulating science-based carbon reduction roadmaps.
• Green Energy Adoption: Promoting renewable energy procurement and co-investing in energy storage systems to enhance energy resilience and the proportion of green electricity.
• Policy Participation and Advocacy: Providing recommendations to the government regarding the "Climate Change Response Act" and carbon fee mechanisms to assist with implementation.

Sustainable Development Exhibitions and Seminars

• Showcasing green innovative technologies and exchanging views on global climate trends (e.g., COP30) to seize opportunities for sustainable transformation.

Additionally, the company advisor, Mr. Ding, serves as the General Convener of the Environmental Protection Committee. He represents the association at various workshops and discussion meetings held by the Ministry of Environment, supports the promotion of government policies, and establishes an industry dialogue platform. This platform is used to disseminate information on policy developments and the latest amendments to environmental regulations, helping corporate executives stay updated on regulatory trends, building consensus on future environmental issues, and providing recommendations to serve as a reference for the government’s future environmental policy-making.

GSA serves as a platform for corporations to converge, aiming to build an efficient, profitable, and sustainable global ecosystem for semiconductors and high-tech industries, including semiconductors, software, solutions, systems, and services. It provides a venue for global executives to interact with peers, partners, and customers to drive innovation, not only accelerating industry development but also maximizing the return on investment and intellectual capital.
GSA has also established the Women’s Leadership Initiative (WLI), which aims to increase the participation of women on boards and in leadership positions. Leveraging the influence of female leaders in the semiconductor industry, the GSA advocates for raising awareness in areas such as healthcare, the eradication of extreme poverty, the importance of clean water, climate change mitigation, and equal access to educational opportunities.

In August 2025, the Taiwan Semiconductor Industry Association (TSIA), led by its Chairman, joined forces with major semiconductor companies, including(PSMC, to announce a commitment to climate action. Taking 2020 as the base year, the industry pledged to achieve an absolute reduction in greenhouse gas emissions of 10% by 2030 and to reach net-zero emissions by 2050. The decarbonization roadmap and concrete actions are centered on three core pillars:

• Reduction of Direct Emissions (Scope 1): Dedicated to technological innovation and process improvement to actively lower the emission of greenhouse gases, such as fluorinated compounds (PFCs), in high-temperature manufacturing processes.
• Reduction of Indirect Emissions (Scope 2): Comprehensive implementation of the ISO 50001 energy management system and a significant increase in the proportion of renewable energy usage.
• Supply Chain Decarbonization (Scope 3): Establishing transparent carbon inventory mechanisms and collaborating with upstream and downstream suppliers to develop energy-efficient equipment and low-carbon materials, driving the entire industrial chain toward sustainability goals.

Aligned with the industry’s collective path toward decarbonization, PSMC’s specific strategies and progress are as follows:

• 1.5°C Temperature Control Certification: Due to its active commitment and execution of targets aligned with the Paris Agreement, PSMC was awarded the "1.5°C Temperature Control Label" by CommonWealth Magazine.
• Recognition in International ESG Ratings: In the globally recognized S&P Global ESG scores, PSMC was ranked among the top 15% of the most sustainable semiconductor companies in the S&P Global Sustainability Yearbook.
• Low-Carbon Supply Chain Mentorship: PSMC established a supply chain low-carbon transition consulting group, becoming the first company in Miaoli County to promote a "Large-Leading-Small" decarbonization project, assisting upstream and downstream suppliers in carbon inventory, energy conservation, and emission reduction.
• Facility Energy Efficiency and Circular Economy:** Through the implementation of an IPA waste solvent recovery and refining system, as well as unique catalytic treatment for ammonia-nitrogen wastewater, PSMC has significantly reduced energy consumption and water waste, achieving sustainability goals for resource reuse.
• Three Core Decarbonization Pillars:** In line with industry-wide efforts, PSMC is committed to reducing fluorinated greenhouse gases in manufacturing (Scope 1), fully implementing the ISO 50001 energy management system (Scope 2), and promoting supply chain decarbonization (Scope 3).

Facing a surge in electricity demand driven by AI and High-Performance Computing (HPC) in 2025, PSMC, through the influence of the TSIA Energy Committee, worked with fellow member companies to emphasize to the government that energy transition must balance "stable power supply," "net-zero targets," and "industrial international competitiveness." In 2025, the committee proposed policy recommendations in three key areas to address industrial challenges during Taiwan's energy transition:

1. Strengthening Power Supply Stability

   Promoting Smart Grids: Member companies call for the accelerated adoption of AI and sensor technologies for real-time monitoring of power systems.
   Reinforcing Infrastructure: Science parks should establish large-scale energy storage systems (ESS). We recommend the government adopt a "direct power supply" model to ensure the ultra-high power quality and stability required for wafer manufacturing.

2. Enhancing Low-Carbon Energy Supply

   Optimizing Administrative Efficiency. Members jointly advocate for the establishment of an Executive Yuan-level project office to integrate cross-ministerial resources, thereby enhancing the efficiency and speed of energy project reviews.
   Diversified Energy Pathways: We consistently urge the government to map out a clear low-carbon energy roadmap and accelerate the deployment of Carbon Capture and Storage (CCS) facilities to ensure that companies have the technological support needed to meet 2035 decarbonization targets.

3. Reviewing Green Energy Regulatory Restrictions

   Transaction Flexibility: For green energy procurement, we advocate for the allowance of "unbundled renewable energy certificates" (REC) to increase flexibility for companies in executing carbon management.
   Cost Protection: To maintain international supply chain competitiveness, we advocate for adjustments to unreasonable surplus power trading mechanisms and guarantee contract stability to prevent sharp increases in procurement costs due to policy changes.

As a member of the Science Park, PSMC works through the Science Park Industrial Association (ASIP) platform to collectively advance the following three critical processes:

1. Promoting Low-Carbon Transition of Industrial Clusters

   We participate in cross-facility experience exchanges organized by ASIP, promoting "park-level" energy-saving solutions and circular economy models. By engaging in ESG forums hosted by the association, we help standardize carbon inventory procedures within the park and leverage resource-sharing mechanisms to convert manufacturing waste into resources, effectively lowering the carbon footprint of the entire supply chain and enhancing the collective competitiveness of Taiwan's semiconductor industry in global ESG rankings.

2. Strengthening Energy Dispatch and Resilience

   To respond to extreme weather and energy transition needs, PSMC supports ASIP’s call to strengthen the power grid resilience of science parks. Key points of advocacy include:
   Smart Grid Layout: Supporting the construction of regional distributed energy management systems within the parks.
   Transparency in Power Supply: Communicating with government authorities via ASIP to advocate for better disclosure of energy supply information and redundant backup measures to ensure production stability for wafer manufacturing.

3. Policy Research and Regulatory Optimization

   Regarding domestic green energy market mechanisms, ASIP actively consolidates feedback from member companies, including PSMC, to provide constructive policy recommendations to relevant departments. Our key advocacy items include:
   Simplifying Transaction Processes: Calling for the optimization of green power procurement and trading review procedures to lower the threshold for corporate power wheeling.
   Optimizing Energy Structure: Reflecting the industry’s urgent need for diversified low-carbon energy to the government, specifically regarding renewable energy development paths and the introduction of emerging energy technologies (such as hydrogen energy), to ensure the industry maintains strong production momentum while achieving net-zero targets.