PSMC adopted a standardized risk assessment template (Self-Assessment Questionnaire, SAQ), designed by RBA, ever year identify its human-rights-related risks by PSMC (with the scope covering PSMC's own operations, the value chain, and new business partnerships such as merger, acquisition, joint venture, etc.), in two year implement external verification. 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. The P1/2 fabs successfully passed the RBA Validated Audit Process (VAP) veri¬fication in late 2021 and obtained the Gold-level Certificate in Q1 of 2022. The P3, 8A, and 8B fabs completed the RBA SAQ in 2022 and underwent the RBA VAP veri¬fication in November 2023. The P1/2 and 8B fabs were awarded the Gold-level Certi¬ficate, while fabs P3 and 8A received the Platinum-level Certi¬ficate. In the same year, the P3, 8A, and 8B fabs conducted an independent RBA self-assessment. In early October 2024, PSMC completed an internal RBA audit across all facilities and held the RBA Corporate Social Responsibility Management Review Meeting at the end of the month. No business ethics violations were identi¬fied in the audit. By the end of 2025, a third-party veri¬fication of the entire plant (including the new P5 plant) was conducted, and a silver-level certi¬ficate was obtained.
In addition, through a systematic investigation process conducted regularly on potential human rights risk issues, PSMC can promptly identify major human rights-related risks for the year and formulate mitigation, remediation measures, and response strategies accordingly. Based on the results of the 2025 Human Rights Risk Assessment, mitigation and remedial measures will be established for speci¬fic target audiences to reduce the likelihood of risk occurrence in order to avoid the occurrence of human rights abuse.

PSMC to protect the individual and group negotiation rights of employees, actively develop various one-way advocacy and two-way communication channels, also hold through quarterly statistics labor-management meetings to discuss issues related to the rights and interests of our employees, such as working hours, leave and benefi¬ts, or any opinions and concerns related to the company's operations, and the results of the agreement apply to all workers. 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, also no collective agreement signed with employees. However, the company is committed to safeguarding the rights of workers and ensuring that employees can express their opinions and receive fair treatment by holding regular labor-management meetings, setting up complaint channels and employee care mechanisms. In 2025, 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, all factories in Taiwan follow the minimum notice period stipulated by law; overseas locations follow the relevant procedures stipulated by local labor laws.

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 human rights and privacy, and comprehensively eliminates and prohibits any form of misconduct, including non-sexual harassment such as sexual harassment, bullying, discrimination, threats, and violence, as well as other behaviors that create a hostile work environment. We provide a safe, respectful, and equal employment environment. In talent recruitment, we adhere to the principles of fairness, impartiality, and integrity in formulating our recruitment policies, embodying a spirit of diversity, equality, and inclusivity. Talent selection is based on individual professional abilities and job suitability, without discrimination based on gender, age, race, nationality, marital status, religion, physical or mental disability, political stance, or gender bias. After being hired, employees have clear rules and regulations regarding promotion, education and training, employee benefi¬ts, and performance evaluations, ensuring that every colleague enjoys equal development opportunities and reasonable compensation. To implement talent management and protect workers' rights, PSMC has formulated the "PSMC Labor and Human Rights Policy," which clearly discloses the international human rights conventions and relevant domestic regulations that the company follows, and includes the prohibition of sexual harassment and various non-sexual harassment misconduct within its management scope. The company comprehensively protects employee rights through a number of practical measures:

• Adjust salaries by comprehensively considering the price index, industry salary levels, and company operating conditions, ensuring that fixed salaries comply with the minimum wage stipulated in the Labor Standards Act, which is also the internationally recognized living wage;
• PSMC reasonably manage working hours, avoid excessive overtime, and ensure that the normal weekly working hours do not exceed 40 hours;
• Implement gender equality to ensure that there are no differences in starting salaries based on gender;
• In the event of signifi¬cant personnel changes, the company is legally required to notify the competent authority and affected employees 60 days in advance to protect their employment and reassignment rights.

In its recruitment and human resource development e orts, PSMC employs diverse recruitment channels, including participation in large-scale recruitment events such as campus recruitment fairs and job fairs, and dissemination of job openings through social media. Interviews are conducted flexibly using both in-person and video methods to improve recruitment efficiency and ensure the achievement of annual manpower needs. In recent years, PSMC has also actively participated in semiconductor-related programs at top universities, continuously deepening its partnerships with educational institutions to cultivate key future talent.

As of the end of 2025, PSMC had a total of 8,361 full-time permanent (formal) employees, with no part-time or nonguaranteed hours employees. The average employee age was 39.5 years old, and the average tenure was 11.4 years. For non-permanent (temporary) employees, PSMC continued its pre-employment student recruitment and internship programs in 2025, hiring 18 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 10,212, the number of people decreased compared to the previous year. The primary reason for this was that in 2025, the Company initiated the Contractor In-Service Retraining Program; reexamined the necessity of contracted workers’ eligibility to enter the fabs; and strengthened safety management requirements for personnel entering fabs. For workers who still had a real task-based need, they were required to complete training related to hazard prevention and pass an eligibility review; only then were they approved for work permits. Because the eligibility review standards are stringent, the number of quali¬fied workers in 2025 was signifi¬cantly lower than that in 2024. These measures were to enhance contractors’ safety management standards, and to ensure that all personnel entering fabs are equipped with the necessary safety knowledge and operating abilities; the reductions were not as a result of operating scale reductions.
To help create a diverse, equal, and inclusive workplace, PSMC has hired 22 employees of Indigenous descent and 59 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. 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. However, as a result of the pace of organizational development and the effects of labor assignment time points in 2025, the proportion of female managers was 28.40%, not yet reaching the target. This disparity has been included within human resources and sustainable governance mechanisms for ongoing tracking.

The new hired employees in 2025 were focusing on those talents who are related to equipment, processes, facilities, R&D, and other related fields, which including younger workers, foreign blue-collar workers, and white-collar workers.

PSMC continuously tracks employee turnover trends. In 2025, the turnover rate was 9.93%, while the voluntary turnover rate was 9.60%, both showing slight increases over 2024. From a gender perspective, the semiconductor industry has a high proportion of male employees, and the number of departures is still mainly male. From an age perspective, departures are mainly concentrated among employees in the middle and lower age groups, reflecting multiple factors such as changes in industry prosperity, salary and bene¬fits competition, work environment adaptability, and personal career development considerations. For employees who submit resignation applications, the Human Resources Department conducts a resignation reason analysis and, based on their expertise, experience, and wishes, assesses and offers retention options such as adjustments to job content, department, or work location to reduce the risk of unexpected turnover. Meanwhile, PSMC continues to strengthen its key talent retention mechanisms through salary system reviews, work environment optimization, and career development planning.

In terms of the internal rotation mechanism, PSMC has established a clear internal recruitment and transfer mechanism. After employing units submit their personnel needs, the HR department announces the requirements and opens applications to employees. After quali¬fication review and mutual agreement, transfers are processed, promoting the matching of talent to suitable positions and organizational flexibility. This internal transfer mechanism provides employees with diverse career development and skills growth opportunities, serving as an important management tool for maintaining a healthy turnover rate and improving medium- to long-term talent retention. In the future, the company will continue to track the changing trends in turnover rates based on gender and age structure and adjust relevant human resource strategies accordingly.