Powerchip Semiconductor Manufacturing Corp.(PSMC) is a professional wafer manufacturing company, adhering to the business philosophy of all-round safety, health and environmental protection management and sharing profits with its employees, customers and the society; while continuing environmental protection, green production, circular economy promotion, and continuous employee safety and health improvement. A safe working environment and the prevention of occupational injury and disease is applied to all aspects of the company, including but not limited to design, research and development, procurement, production and operation, equipment component maintenance and development, facility construction, logistics and distribution, and product service processes. This has become a part of the company's corporate social responsibility.

We firmly believe that through the implementation of the environmental safety and health management system, we can continue to communicate and negotiate with stakeholders such as employees, customers, contractors, suppliers, outsourcers and the general public to jointly promote zero-disaster, environmentally sustainable development, and achieve corporate goals: with the ultimate goal of sustainable operation.

PSMC promises to abide by the following concepts and guidelines to create a better environment for employees and the society:

• All managers are committed to providing the necessary resources and implementing and improving daily safety management practices to ensure the suitability, adequacy and effectiveness of the management system; thus, comply with or even exceed domestic environmental protection, safety and health regulations and other relevant international norms.
• The protection of the environment, promotion of physical and mental health, prevention of foreseeable danger, and control of losses are the direct responsibilities of all employees.
• In response to the issues of climate change mitigation and adaptation and sustainable resource use, we will assess related risks and opportunities, implement energy conservation and carbon reduction, improve water resources and waste management performance, and reduce impacts related to extreme climate, environmental safety and health.
• Actively participate in environmental and ecological conservation activities for the sustainable development and protection of biodiversity.
• Conduct due diligence on environment-related issues and fully disclose them before investment decisions such as mergers and acquisitions.
• Promote EHS education and advocacy to ensure employees understand the impact of their work activities on EHS.
• Continually review and enhance the effectiveness of environmental safety and health management.

Since 1998, PSMC has managed to complete the certification of ISO 14001 and ISO45001. Further, since 2003, the management system has been integrated into one internal ESH Management System to promote environmental management and other relevant management activities for occupational safety and health, hence consistently enhancing and aligning PSMC’s occupational safety and health level with international standards. We’ve completed the three-year renewal of the environmental safety and health management system to ensure the validity of the ISO 14001 and ISO45001 certificates. The validity period of the ISO 14001 certificate is 2023/8/25-2026/8/24, and the validity period of the ISO45001 certificate is 2023/8/6-2026/8/5.

The operation of the ESH Management System of PSMC follows the Environmental Safety and Security Policy announced by the President. The environmental, health and safety unit is responsible for the planning and execution of the activities. Every year, the President establishes the measures for tackling the environmental, health and safety issues for the year, and each department will, according to their risk and opportunity assessment results, prepare for their concrete and practicable working targets.

Led by the President, the Environmental and Safety Management Committee is composed according to the regulations, and is the highest review unit of the ESH management system. The ESH audit team performs internal audits on the effectiveness of system operation.

The ESH auditors review the achievement rate of the execution of the environmental safety and health goals quarterly; perform internal audits of environmental safety and health every six months; and appoint Lowe's Companies, Inc. to certify that the operation and implementation records of PSMC’s overall environmental safety and health management system complies with the provisions. The President and the committee members work together to review and make corrections, achieving the goal of making consistent improvements.

Since its establishment in 1995, PSMC has successively won the Enterprise Environmental Protection Award and the Golden Dragon Award, the National Excellent Promotion of Labor Safety and Health Excellence Unit, the Excellent Safety and Health Unit of the Science and Technology Bureau, the Good Practice Workplace Pilot Award, the Excellent Workplace Health Management Award, the Park Green Beauty Environmental Maintenance Competition Excellent Manufacturers, Energy Conservation and Carbon Reduction Action Labels, Science and Industry Park Water Conservation Excellence Awards, Ammonia Nitrogen Wastewater Reduction Excellence Enterprise Award, EPD's Poison Operation Management Excellence Unit, and Waste Reduction and Resource Recycling Excellence Enterprise Awards.

For various business operations, customer service and products, PSMC takes the environmental, occupational injury and health factors into consideration. PSMC gathers a wide variety of issues that internal and external stakeholders are concerned with; identifies the environmental, health and safety risks and opportunities to prepare for the corresponding measures; and establishes the environmental, health and safety policies and goals for the employees to comply with.

PSMC has always paid close attention to occupational safety and health, and environmental protection. To conform to governmental regulations, ensure the safety and health of workers, and reduce the impact on the environment and energy conservation, the Company not only has established a comprehensive safety and health system and environmental protection organization, along with designated personnel, but also has regulatory requirements in place. Meanwhile, to ensure various suppliers, contract manufacturers and contractors fully comprehend the operating regulations and the execution requirements for the environmental, safety and health aspect, the Risk, Safety and Environmental Protection Department will, in accordance with the content of the Environmental, Safety and Health Assessment List and matters regarding the environmental, safety and health audit on vendors, request the contractors to make clarifications on issues that have arisen. The department will check on the improvement measures provided by the contractors in the following audit.

PSMC has established the “Manual on ESH Management” to govern the local activities of the fabs, products and services, and the internal and external environmental, safety and health issues of the fabs. Stakeholders include all employees, customers, contractors, suppliers, contract manufacturers, the competent authority of the environment, safety and health, and NGOs.

The President leads and is committed to various environmental, safety and health operations to ensure the ESH Management System can achieve its expected performance. Supervisors at different levels provide sufficient resources and support, encourage their departments to actively participate, offer improvement measures and training, and take part in discussions. Their initiation is pro-active, prompt, and increases awareness on personal well-being, the environment, the machinery, products and construction; thus strengthening the attention to the overall environmental, safety and health aspect for themselves, their colleagues, vendors and visitors.

According to “Procedures for Environmental, Safety and Health Management Review” and “Operating Instructions for Investigation of Abnormal Incidents,” the designated management and stakeholders are required to review the compliance of the EHS Management System on a quarterly basis and establish the operating procedures for investigations of abnormal incidents (e.g., occupational hazards (including road traffic accidents), abnormal accidents, hazard identification, safety patrol, on-site audit, etc.), to find out the actual causes of the incidents, make corrections, and provide preventive strategy for future occurrences.

In accordance with the relevant occupational safety and health regulations, employees who engage in special operations are subjected to special medical examinations every year. Medical professionals and specialists will be arranged on a regular basis to go to the sites and collaborate with supervisors, employees, nurses and safety and health personnel to assess the relevance between the work on-site and the health of the employees engaging in special operations; they are required to undertake preventive measures or make assessments regarding the competence of the employees depending on circumstances.

PSMC appoints a qualified operating environment monitoring institution to survey the fabs every six months. Over the years, the test results of chemical detection in the work environment obtained by monitoring personnel are lower than the national and international permitted level of exposure. Further, pertaining to the operation type, regular monitoring is also conducted on the laser machinery and central ventilation system: both results are compliant with the regulations.

To ensure the safety and health of employees and reduce their exposure to hazard factors during hazardous operations, PSMC provides workers with pre-operation assessment, and require them to put on appropriate personal protective equipment before performing hazardous work to prevent themselves from direct exposure to hazards. We have also formulated examples of suggested use of personal protective equipment for all types of operations, so that employees can follow them to avoid occupational injuries during operations.

PSMC has installed a gas detector system in the chemical storage area, equipment supply and manufacturing equipment areas to prevent chemical hazards and to further protect the operators’ safety.

IR inspection is performed at least once a year for power supply equipment and contacts among each fabs. If there is any abnormal case, it will be improved and tracked immediately.

In accordance with “Instructions on Environmental, Safety and Health Training” and “SOP for Employee Education and Training,” PSMC imparts the relevant knowledge and skill on the ESH Management System to employees. The goal of the environmental, safety and health training is to effectively enhance their professionalism and capability in crisis response.

When an emergency occurs, to familiarize the Emergency Response Team (ERT) with the emergency equipment so that they can correctly and effectively use it and avoid injury, the ERT regularly receives training on how to wear protective equipment and use the emergency equipment.

The operational sites in the park are adjacent to each other. In the event of an emergency, it may affect the companies nearby. Therefore, in addition to the 24-hour operation of the security system and monitoring in the plants, we need to strengthen our emergency response capabilities. We participate in the Hsinchu City Hazardous Chemical Disaster Joint Defense Organization and the Hsinchu Science Park Joint Defense Organization. When a disaster occurs, we can launch a joint defense mechanism as soon as possible to assist the companies nearby. In addition to providing adequate emergency response equipment, we are also able to provide some equipment to support disaster rescue efforts outside the Company.

Our regular training aims to improve our personnel’s response ability and to improve the efficiency of notification and support so they will become familiar with disaster response skills and improve such skills to avoid the expansion of disasters. Therefore, besides regular drills regarding notification for support between plants, the Administration and the Environmental Protection Bureau holds large disaster emergency response drills to allow joint defense teams to train.

PSMC provides an excellent and safe working environment and mechanical equipment in accordance with the relevant laws. We adhere to the spirit of "continuous improvement", create a safe and healthy working environment for employees, aim to prevent occupational injuries and diseases, and are committed to ensuring the safety and health of employees as our greatest endeavor.