Powerchip Semiconductor Manufacturing Corp.(PSMC) is a professional wafer manufacturing company that upholds the business philosophies of comprehensive safety, health and environmental protection management, and sharing results with employees, customers, suppliers, contractors, outsourcers and other stakeholders . PSMC is committed to complying with the following concepts and standards of occupational safety, health, and environmental protection in order to create living environments with better qualities for the workers and the society; it will integrate environmental protection, green production, the promotion of circular economy, work environments with improved safety and health, prevention of occupational injuries, and the improvement of physical and mental health into the design, R&D, procurement, production and operation, maintenance and development of equipments and components, facility construction, logistics, delivery and product service processes to fulfill its corporate social responsibilities.

PSMC has formulated an "Environmental Safety and Health Policy" signed by the Present as the highest guiding principle for environmental, safety and health management. The company has reported it to the Sustainability Development Committee and disclosed it in the Sustainability Report which has been approved by the Audit Committee and the Board of Directors.

1. Comply or exceed the laws, regulations and relevant international specifications of occupational health and safety to achieve the ultimate goal of zero disaster and healthy workplace.
2. Supervisors of all levels shall commit to providing the necessary resources and implementing routine health and safety management, and personnel of all levels shall fulfill their health and safety responsibilities to ensure the suitability, adequacy and effectiveness of the management system in order to build an intrinsically safe and excellent work environment.
3. Formulate quantitative goals and plans by assessing the risks and opportunities related to safety and health, and adopting advanced technologies related to safety and health, then continually review and reduce the risk impact caused by various operations or activities, in order to improve the physical and mental health of workers and eliminate foreseeable dangers and losses
4. Actively participate in the communication, negotiation, consultation and decision-making with the employees, customers, contractors, suppliers, outsourcers and other stakeholders, and continuously review and improve in order to improve the safety and health management performance within the company and the supply chain.
5. Promote safety and health education and promotion, and encourage active participation in related activities to deepen workers’ awareness, responsibilities and habits of safety and health, in order to establish a safety culture for all employees.

1. Comply or exceed the requirements of environmental protection laws and international conventions, and commit to becoming a low-carbon, green energy and green operation enterprise that is moving towards net-zero emissions.
2. Supervisors of all levels shall commit to providing the required resources and implement environmental management, ensure that the environmental management system is integrated into related company operations, and control environmental risks in order to establish an environmentally friendly corporate culture.
3. In response to climate change mitigation and adaptation issues, assess related risks and opportunities and implement energy-saving, carbon-reduction, water-saving and other control measures to reduce the impact of extreme climate environments.
4. Formulate proactive environmental management goals, continue to improve the performance of energy resource consumption, waste management, cycle economy, pollution prevention and biodiversity, and actively cooperate with customers and suppliers/contractors to establish green supply chains together from design, manufacturing to products and services, in order to reduce the negative impacts of operations on the environment.
5. Introduce environmentally-friendly technologies and apply them on R&D, procurement, production operation, business facilities, logistics, delivery and product service processes to reduce environmental loads at each life cycle stage and achieve green design, production and operation.
6. Before establishing subsidiaries and making investment decisions such as mergers and acquisitions, due diligence should be performed for issues related to the environment and fully disclosed to raise the awareness of internal and external stakeholders on environmental impacts.
7. Promote environmental risk assessment and management training to ensure that employees understand the impact their job activities have to environmental safety and health, and improve employees’ awareness on environmental protection to take actions and fulfill their responsibilities.
8. Share and promote knowledge and experience among all employees and stakeholders, and work hand-in-hand to respond to the rigorous challenges of environmental protection and climate change by cooperating with business partners, industries, governments, academia and the general public, to improve their understanding on the impact that the environmental management policies and operations have on the environment.

PSMC is committed to creating a safe, healthy and friendly workplace environment for our employees, suppliers/contractors and other business partners, and strictly complies with international standards and regulations related to occupational safety and health. PSMC has established an inhouse ESH Management System in accordance with the ISO 14001 Environmental Management System and the ISO 45001 Occupational Safety and Health Management System, covering all of the Group's plants, which includes all 8,164 employees and 15938 non-employee workers, with a coverage rate of 100% (33.78% and 66.22% of total workers for employees and non-employee workers respectively).

PSMC has formulated an "Environmental Safety and Health Policy" signed by the President in 2022 as the highest guiding principle for environmental, safety and health management. The Safety, Health and Environmental Protection Committee, led by the g President and composed of legally constituted personnel, serves as the highest review body of the environmental, safety and health management system. The environmental safety and health audit team composed of internal environmental, safety and health auditors in each factory conducts internal environmental, safety and health audits every six months with reference to the "Environmental, Safety and Health Internal Audit Operation Management Measures" and "Internal Environmental, Safety and Health Auditor Recognition and Registration Rules" and other procedures. activities, and at the same time entrust an external Lloyd's Register Verification Company (LRQA) to verify the overall environmental, safety and health management system operation and execution records in compliance with the provisions of the validity, and convene the Safety, Health and Environmental Protection Committee every quarter to review, amend the management plan, and evaluate prevention / Reduce health and track the achievement of safety and health hazard risks for the purpose of continuous improvement. In August 2023, the three-year re-verification of the environmental and occupational safety and health management system has been completed to continue the effectiveness of the management system.

The Risk Management Department and the Risk and Environmental Safety Department of each plant at PSMC are in charge of the overall environmental safety and health related business, and have established the head office and the Safety, Health and Environmental Protection Committee at each plant respectively, which are responsible for planning and promoting the auditing, verification, risk assessment and education and training related to environmental safety and health. Regular safety, health and environmental management review meetings are held to discuss environmental safety and health-related issues, and labor representatives are elected to participate in the meetings in accordance with the law, so that employees can fully understand the company's safety, environmental safety and health operation model and provide a formal channel for discussion and debate.

In order to control the possible environmental, safety and health risks existing in business activities or product production processes, through process/activity hazard identification and risk assessment, PSMC has identified related environmental safety and health risks and formulated countermeasures in advance to effectively reduce the risks caused by a variety of operations or activities. Individual departments must examine the contents of their operations or information about the activities they are engaged in based on the scope and procedures of related processes/activities, including activities of contractors and visitors in plant areas, and EHS issues arising in the process when products are delivered to customers. Next, the departments must take inventory of the raw materials, parts, cleaning supplies, and personal protective equipment they use, summarize the information about the wastewater/exhaust/waste, etc. they produce, and fill out the Department Process/Activity Step List, which shall serve as a basis for subsequent EHS risk assessments.

PSMC's environmental safety and health policies, and management objectives are formulated based on the specific risks and opportunities identified through SWOT analysis at the corporate and departmental levels. The management objectives and implementation plans are discussed through the environmental safety and health representatives at each plant, and then implemented after the results are reported upward by the management audit committee.

PSMC has formulated the Contractor Safety, Health and Environment Regulations to ensure that contractors can implement safety management mechanisms when working in the Company's plant areas to achieve the goal of Zero Work-Related Injuries. Currently, PSMC's two 8-inch fabs and three 12-inch fabs in operation all follow the principle of "one work permit, one access card" to control contractor personnel's movements and activities within PSMC's plant areas. A contractor will be given one exclusive contracting work permit and one magnetic access card after passing required course tests. The work permit and access card must be used together with the Contractor Operation Permission Form issued by PSMC's implementation unit for the contractor's personnel to enter/exit the plant area and the job-site of the operation. The implementation of dual control measures through contracting work permit and magnetic access card can more effectively control activities performed in plant areas. Implementation units will receive information released through the Contractor Management Monthly Report on a regular basis. By analyzing the statistics indicated in the report, implementation units will formulate items for further management, and will supervise the contracts with more violations carrying out self-management measures. The contractors' performance shall be reviewed in the quarterly Safety, Health and Environment Committee meetings, and the violation records shall be listed as an important indicator and basis for contractor evaluation.

Contractor evaluation and audit is also an important part of the management mechanism. Through the company's contractor management system, the occupational safety and health-related requirements and specifications are included in the procurement contracts, and we assure that persons of all suppliers, subcontractors and contractors are informed of the PSMC's enforcement requirements related to operational regulations and environmental safety and health laws. To establish a unified standard of contractor evaluation, the risk safety and environmental department of each plant would then cooperate with the procurement department to conduct regular evaluation of contractors, so as to select companies with excellent performance and ensure the engineering quality meets the relevant requirements of the user as well as environmental safety and health. Regarding the deficiencies on the part of vendors, we also require them to reply with improvement measures and conduct follow-up reviews, and the evaluation results will also be included as a basis of reference for subsequent contract renewals. 176 contractors were selected for evaluation in 2023, and all of them passed the evaluation and maintained a sustainable cooperative relationship. We will continue to review the excellent vendor evaluation system in the future according to the content of operations and types of violations, so as to encourage contractors to deepen the concept of safe operations and improve their awareness for autonomous management.

In order to effectively control the activities, products, services, and internal and external issues related to the environmental safety and health operations at the plant site, PSMC has established the "Environmental Safety and Health Management Manual", which covers all stakeholders related to the company's operations, including all employees, customers, contractors, suppliers, subcontractors, environmental safety and health authorities, and nongovernmental organizations.

In terms of implementation, supervisors at all levels provide adequate resources and support according to their duties, and encourage departmental colleagues to actively participate in proposals for improvement and training discussions to enhance the vigilance of business execution and the safety of the working environment, and to strengthen the overall environmental safety and health quality, with “proactive, safe and immediate” as the starting point. In terms of supervision and management, we regularly review the level of compliance of the operation of the environmental safety and health management system in accordance with the Environmental Safety and Health Management Review Regulations and Abnormal Incident Investigation Practice on a quarterly basis, evaluate the progress and results of achieving the goals of preventing and reducing risks of health and safety hazards and deliver the audit results to the management and stakeholders as a point of reference for the improvement and adjustment of the management system. In addition, PSMC has established abnormal event investigation procedures, which include investigation of occupational disasters (including traffic accidents) and abnormal events, hazard identification, safety inspections, and on-site audits to confirm the causes of accidents and propose measures to prevent accidents and correct and prevent their recurrence.

In accordance with the operating environment monitoring plan, PSMC determines the monitoring locations and sampling plans based on the identification of hazards and risks that have occurred or are potentially present in the workplace. The results of the operating environment monitoring cannot exceed the requirements of the Allowable Exposure Standards for Labor Workplaces as announced by the Ministry of Labor, and if they do, improvement measures must be immediately formulated in accordance with the control measures of the Environmental Safety and Health Risk Assessment Practice, and the effectiveness will be evaluated again and records kept.

In order to grasp the actual working environment of employees and evaluate the exposure of hazardous factors, PSMC performs semi-annual monitoring of items required by law, including chemical hazards (including organic solvents and specific chemical substances), physical hazards, and bacteria testing, in accordance with the Regulations on Implementation of Labor Environment Monitoring. It also commissions an operating environment monitoring organization approved by the Ministry of Labor to perform various environmental testing tasks, review the data of operating environment monitoring results, quantify the variation characteristics of the data distribution, and provide feedback to the next sampling strategy planning for reference, and conduct follow up operating environment monitoring plans and notification of monitoring results.

The operating environment monitoring results and improvement measures are all described in the Safety, Health and Environment Committee meetings to labor representatives and meeting participants for related employees to be well aware of relevant issues and build up good safety and health protection concepts. The 2023 monitoring results all met regulatory requirements.

In accordance with the Environmental Safety and Health Education and Training Regulations and the Employee Education and Training Procedures, PSMC has designed occupational safety and health general education courses and departmental/plant-organized courses to train all employees to understand the operation model of the PSMC's environmental safety and health system and to possess the necessary knowledge and skills for workplace safety and disaster prevention. To effectively enhance the professionalism of our personnel and their ability to respond to crises is the focus of PSMC's occupational safety and health education and training.

PSMC's environmental safety and health education and training is divided into three major categories, including “environmental safety and health management system, legal license, and operational control”. Each department conducts the suitability assessment of personnel who may affect the performance of environmental safety and health and compliance obligations in order to plan the required education and training categories, and formulates the "departmental environmental safety and health education and training plan". 159 education and training plans were completed in 2023 and were included in each department's target. The achievement rate is confirmed to be 100% on a quarterly basis, and the electronic environmental safety and health education and training plan system was used to provide departments with updates and inquiries on safety and health training results, making the control and verification of environmental safety and health training more effective.

In 2023, a total of 192 training sessions were conducted, with 29,440 trainees, including 36 sessions for new personnel training, with 1,394 trainees. As of the end of 2023, there are 1,052 people holding various environmental safety and health positions, all of whom are licensed in accordance with the regulations.

The fire safety training and practical drill programs held in 2023 were divided into ERT (Emergency Response Team) training and ERT drill. Training sessions related to how to wear personal protective equipment and how to use a variety of response equipment are organized every year to help personnel skillfully, correctly and effectively use response equipment in emergencies and avoid ERT personnel injuries during accident rescue. PSMC conducted 117 ERT training sessions in 2023, with 1,151 qualified ERT rescue team members being trained, and 74 members completing the ERT first aid team training (online CPR and AED courses). In addition, PSMC has formulated the Plant Area Disaster Emergency Response Regulations to ensure that in the event of emergencies, the personal injuries, property losses and environmental damage caused by accidents and the degree of impact on the environment can be mitigated through correct, effective, and systematic response procedures. 269 ERT drills were conducted in 2023, including cleanroom evacuation drills, department's self-directed response drills, interdepartmental joint drills, etc.

PSMC continued to implement operations related to contractor work permits in 2023 by providing contractors with course materials focusing on safety, health, and environmental regulations. 7,525 contractor personnel completed the self-directed contractor training sessions, which helped ensure that contractors can have a comprehensive understanding of PSMC's a variety of contracting management regulations before plant-entry. In addition, contractors are required to undergo construction capability certification before plant-entry. 890 contractors have been certified by a variety of consultative organizations. The capability certification system can not only effectively ensure operating personnel's ability to identify hazards, but can also reduce the probability of occupational accident occurrence. Long-term in-plant service providing contractor personnel such as staff canteen workers, security personnel, cleaners, cylinder-replacing operators, etc. are required to receive at least 1 hour of safety-health-related educational training every year. There were 391 contractor plant-entry training sessions conducted in 2023 with 4,493 participants.

In the event of occupational accidents, the accident investigation procedures must be followed to give feedback to the management system, through which the accident source can be controlled and improvement measures can be parallelly implemented to avoid the recurrence of same problems. In addition, PSMC has taken into consideration the recommendations of experts and scholars to consolidate the business operations of the plants and to specify the implementation of occupational illness prevention and management measures at the company to achieve the ultimate goal of "zero illness at work and a healthy life" through three approaches: prevention, return to work, and compensation (PRC). Moreover, screening of potentially hazardous operations and near miss improvement and tracking have also been conducted, and the List of Potentially Hazardous Operations has been updated and incorporated into in-plant monitoring and management systems.