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 2024, with the scores reaching 85 points or above. In addition, in response to the RBA 8.0 revision and the mass production of the new P5 Fab, consultants were commissioned to provide guidance to meet the new version requirements. 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. 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 2024, 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 2024, PSMC had a total of 8,387 full-time permanent (formal) employees, with no part-time or non-guaranteed hours employees. The average employee age was 39 years old, and the average tenure was 10.9 years. Due to the completion and operational launch of the P5 fab, the total number of employees increased by 2.73% compared to the previous year. For non-permanent (temporary) employees, PSMC continued its pre-employment student recruitment and internship programs in 2024, hiring 29 new interns to help graduates transition smoothly into the workforce.

In addition, to meet operational needs, PSMC outsourced services including corporate catering, environmental cleaning, security, equipment maintenance, and facility repair/expansion to external contractors. The total number of outsourced personnel reached 18,975, a significant increase compared to the previous year, primarily due to the launch of the P5 fab and its related operational demands.

To help create a diverse, equal, and inclusive workplace, PSMC has hired 17 employees of Indigenous descent and 55 employees with disabilities, meeting the government-mandated employment ratio for persons with disabilities. As part of its global expansion strategy, PSMC actively participated in international talent recruitment events organized by regulatory authorities and universities in 2024. The Company continues to increase the proportion of foreign employees, aiming to foster cross-cultural and professional exchanges that enable international employees to maximize their strengths and influence.

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.

916 new employees were recruited in 2024, 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.

PSMC continuously tracks employee turnover trends. In 2024, the overall turnover rate was 8.26%, while the voluntary turnover rate was 8.11%, both showing slight increases over 2023. Through turnover rate analysis, PSMC has identified that employee departures are primarily influenced by salary and benefits, work environment, and personal career development considerations. To enhance employee retention, the Human Resources Department conducts exit reason analyses for departing employees. Based on their skills and experience, PSMC offers job adjustments, including changes in job responsibilities, department transfers, or relocation opportunities, to encourage internal rotation and career development.

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.