PSMC's P1/2 Plant took the lead in undergoing the verification conducted by a third party assigned by the Responsible Business Alliance (RBA) in 2021. The Company also voluntarily adopted a standardized risk assessment template (Self-Assessment Questionnaire, SAQ) designed by RBA to identify its human-rights-related risks (with the scope covering PSMC's own operations, the value chain, and new business partnerships such as merger, acquisition, joint venture, etc.) All Fabs completed the RBA SAQ in 2023, with the scores reaching 85 points or above. In addition to focusing on discrimination, harassment, forced labor, child labor, human trafficking, freedom of association, and other human rights-related issues, emphasis is also placed on the rights of employees, children, women, indigenous people, immigrants, and other related groups. P1/2 Plant successfully passed the RBA Validated Audit Process (VAP) verification in late 2021, and obtained the Gold-level Certificate in Q1 of 2022. P3, 8A, and 8B Plants completed the RBA SAQ in 2022, and underwent the RBA VAP verification in November 2023. P1/2 and 8B Plants have been awarded the Gold-level Certificate, and P3 and 8A Plants awarded Platinum-level Certificate. Moreover, through regular systematic surveys on potential human rights risk issues, the Company can grasp the significant human-rights-related risks of the year, and accordingly develop mitigation and remedial measures and response strategies.

Through the results of human rights risk assessment, PSMC establishes mitigation and improvement measures to continuously reduce risks and avoid incidents that violate human rights.

PSMC has long been concerned about and respects the diverse voices of its employees, and believes that good labor relations can optimize the corporate culture and organizational atmosphere and promote harmonious labor relations. We actively develop various one-way advocacy and two-way communication channels, also hold regular labor-management meetings to discuss issues related to the rights and interests of our employees, such as working hours, leave and benefits, or any opinions and concerns related to the company's operations.

In order to respond to employees' needs and direct them back to the right track in a timely manner, an Employee Relations Department has been established under the Human Resources Division to provide employees with the most appropriate and prompt assistance and consultation/referral services in the shortest possible time. Five free-of-charge psychological consultations are offered each year, and information on mental health, emotional stress management, communication skills and other related information from time to time are also provided to strengthen mental health promotion.

Since the establishment of PSMC, labor relations have been harmonious, thus there has been no labor union established. In 2023, there were also no incidents of labor disputes or violations of freedom of association or group consultation that resulted in penalties imposed by the competent authorities. In addition, in the event that employees are dismissed or discharged as a result of Article 11, 13, or 16 of the Labor Standards Act, the minimum notice period required by law is applied at each plant and the Company will follow up on these matters.

In order to understand employees' perspectives and suggestions on the long-term development of PSMC, we periodically conducted surveys through questionnaires every year to understand employees' concerns regarding the operational aspects and potential problems of the organization, and to plan refined countermeasures to address key aspects and issues, with the goal of building a more resilient operational model that supports the well-being of our employees.

Workplace sexual harassment prevention, complaints and punishment measures  

PSMC is committed to protecting employee rights, personal privacy, prohibiting inappropriate discrimination and sexual harassment, and providing an equal employment opportunity and environment. The recruitment policy is diverse, equal, and inclusive, and the selection of personnel is based solely on their professional ability and suitability for the position, with no differential treatment based on gender, age, race, nationality, marital status, religion, physical or mental disability, political affiliation, or gender orientation. We have clear rules and regulations for promotion, training, employee benefits and performance appraisal, to ensure that every employee enjoys equal opportunities and treatment.

PSMC adopts diversified employee recruitment channels, including participating in large-scale recruitment activities such as campus recruitment and employment fairs, and publishing recruitment information through social media. Personnel interviews are flexibly conducted in both physical and video formats to ensure the annual recruitment goals effectively achieved. In recent years, it has actively participated in the semiconductor college program of top universities, expanded and established close cooperative relations with various universities, and strived to fill the talent gap in the semiconductor industry.

As of the end of 2023, PSMC has 8,164 formal employees, all of whom are permanent and full-time employees. There are no employees with unlimited hours guaranteed. The average age is 39.32 years old and the average seniority is 10.68 years, which can help support the company's rapid growth needs and continue to remain competitive. Informal employees will continue to carry out the pre-recruitment and internship system for current students in 2023, and a total of 21 new interns will be hired to help fresh graduates successfully transition into the workplace.In addition, in order to meet the company's operational needs, contractors are responsible for group catering, environmental cleaning, security and maintenance, machine equipment maintenance, and factory facility repair or expansion. There are a total of 15,938 contractors. The significant increase of the contractors compared with the previous year is due to the related demand derived from new construction, and it has caused the industrial safety unit to expand the issuance of contractor admission permits.

With the aim of practicing the policy of employee diversity, and establishing a work environment of diversity, equality and co-prosperity, PSMC has recruited 15 indigenous employees and 54 employees with disabilities, which has met the regulatory requirement for the employment of people with disabilities. Being directed by the corporate group's global deployment plans, PSMC actively participated in the international talent recruitment activities jointly conducted by Ministry of Economic Affairs, Ministry of Foreign Affairs, and National Yang Ming Chiao Tung University's Office of International Affairs in 2023. Through international talent recruitment, PSMC can continuously increase the percentage of foreign employees in the Company, hoping that through multinational cultural and professional exchanges, more foreign employees can exert their strengths and influence to improve PSMC's overall operational efficiency.

PSMC attaches great importance to the promotion and development of female employees. However, due to the characteristics of the semiconductor industry, the majority of management and professional engineering personnel are male employees, while the majority of technical personnel and administrative personnel are female employees. In order to increase the proportion of female employees participating in decision-making, PSMC promotes communication among female employees from the perspective of career planning and workplace mentality through education, training and themed lectures, comprehensively supports female employees and creates promotion opportunities to promote the innovative value of inclusion. In 2023, we set a goal of reaching 30% of female managerial personnel (including junior-level, middle-level and senior management positions) by 2025.

516 new employees were recruited in 2023, focusing on talents related to equipment, processes, facilities, R&D, and other related fields, and including younger workers, foreign blue-collar workers, and white-collar workers. The average recruitment cost per full-time employee was NT$14,026. The significant increase in recruitment costs has demonstrated PSMC's determined action to accumulate energy for the Company's growth.

PSMC has kept long-term track of employees' resignation statistics. In accordance with turnover rate analysis, the main factors contributing to employees' resignation include remuneration and benefits, work environment, individual career development considerations, and so on. In view of these factors, PSMC has developed a variety of response programs. The overall turnover rate and voluntary turnover rates in 2023 were 6.58% and 6.51%, respectively, showing a significant decrease compared with 2022, and demonstrating the effectiveness of PSMC's programs for workplace environment improvement. To achieve the goal of talent retention, the Human Resources Division has analyzed the reasons for employees' resignation, and provided resignation applicants with reassignment opportunities based on their skills and experiences for them to be reassigned to other positions whose job content, governing department, job location, etc. may suit them.

In terms of the internal rotation mechanism, basically, the staff-requesting unit must submit an internal recruitment request, which shall then be released by the HR unit and be open for current employees' application. After the preliminary review is completed and the qualified candidate is determined, the HR unit shall send the application form to the applicant's home unit and the staff-requesting unit for the form to be signed off. After the consent of the two units are obtained and the form is signed off by the two units, the reassignment can be carried out. In 2023, the internal rotation mechanism was adopted to successfully reduce employee turnover.