The intensification of climate-change impacts has reinforced our belief that carbon reduction can no longer be a possible scenario discussed on paper, but rather a necessity for our present survival. In September 2023, we alongside members of the Taiwan Semiconductor Industry Association declared our medium to long-term climate goals: Aiming to achieve a 10% absolute reduction in greenhouse gas emissions by 2030 as compared to our 2020 baseline (a 40% reduction over baseline (BAU, Business As Usual) emissions), and reach net-zero emissions by 2050. In the future, we will combine industry-government-academia technical resources to jointly promote carbon reduction efforts toward achieving the net-zero goal. We are also actively increasing our use of renewable energy. Through self-generated, self-used renewable energy, green energy wheeling, and purchasing renewable energy certificates (RECs), our renewable energy utilization rate increased in 2023 from zero to 1.75%, indicating steady progress toward our RE30 goal. In the process of low-carbon transformation, we have implemented a comprehensive product life cycle assessment (LCA) mechanism to deeply understand the environmental impacts of every stages of manufacturing. We have also verified the carbon and water footprints of our 12-inch wafer foundry products. Each fab has proposed energy-saving and -reduction plans for resource utilization hotspots in the production process. We provide necessary resources for all research projects that contribute to process improvements, continuously delivering high-added-value and environmentally-friendly green manufacturing and services to our customers. These efforts and initiatives have led us to participate in CDP’s Climate Change and Water Security questionnaires for the first time, for which we received the honor of an A- (Leadership level) rating.
computational efficiency. This technology will greatly improve display resolution for virtual reality applications. Second, the logic and DRAM wafer stacking (3D wafer on wafer, WoW) technology offers advantages such as increased bandwidth, reduced latency, high performance, and low power consumption, meeting the requirements of AI chips. Last, we are focusing on automotive electronic chips, including gallium nitride (GaN), silicon carbide (SiC), and power management integrated circuits (PMIC), targeting the electric vehicle consumer market that has rapidly grown in recent years to create competitive advantages in the industry.

Sustainable business operations depend on long-term support from the local community to create flourishing of corporate social responsibility initiatives. In order to demonstrate our appreciation for the land that nurtured PSMC’s growth, we have established a Public Welfare Committee. This committee integrates internal and external resources and influences in collaboration with the Powerchip Cultural Foundation to focus on the core strategies of “Environmental Conservation”, “Philanthropic Investment”, and “Arts & Cultural Feasts” for social prosperity. We continue to deepen our efforts in environmental conservation, community revitalization, and arts & cultural industry development, ensuring the continuity of our social investment programs. To enhance the effectiveness and impact of our social investments, we have chosen to collaborate with non-profit organizations. In our collaborations, PSMC provides funding and volunteers, combining our resources with the environmental conservation expertise of external organizations. This year, we and our partners have jointly invested in the restoration of the Gaoping River artificial wetlands and forest conservation tree-planting efforts in Houlong, Miaoli. Through division of specialized labor, we aim to maximize capacity in conservation and cultivation of ecological species. Additionally, in anticipation of the completion of our new Tongluo fab in 2024 and considering its potential impacts on the local environment when it goes into full production, we have conducted in-person mountain cleaning education activities. Through these activities, we inform stakeholders about our rigorous monitoring of ecological impacts as part of environmental assessments and our conservation measures for leopard cat habitats. This demonstrates PSMC’s commitment to biodiversity conservation; we actively seek a balance between corporate operations and social-environmental development through tangible actions. In addition, by providing paid volunteer leave to all employees, we aim to inspire more employees and the general public to actively engage in charitable activities, becoming a significant force for driving social advancement and development.

At PSMC, every transformation relies significantly on the contributions of our employees. They will play crucial roles in the next stage of our sustainability transformation. Guided by the PSMC Labor and Human Rights Policy, we are committed to creating a diverse, open, equal, non-infringing-of-human-rights, and right-talent workplace environment. To enhance employee welfare, we provide maternity leave that, both in terms of number of days and type, exceeds legal requirements; we have established a flexible work hour system; and have introduced an electronic voucher platform for diverse festival gift options. This creates a welfare system that better meets employee needs. Additionally, in 2023, after approval by the Board of Directors, we implemented an employee stock ownership plan to share in the Company’s growth with all employees. PSMC has also been honored with a 2023 Happy Enterprise Gold Award by 1111 Job Bank, recognizing our comprehensive welfare system. As part of our strategic global development, we continue to actively attract international semiconductor specialists through diverse recruitment channels such as the Pre-Employment Program and Semiconductor Academy Program. We hope to stimulate innovative energy and shape a diverse and inclusive workplace culture through professional exchanges among multinational talents.