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Sustainability Overview

Sustainable Development Commitment

Sustainable Development Strategy

Sustainable Development Commitment

PSMC follows the Sustainable Development Best Practice Principles as the highest guiding principle for sustainable development within the Company. With the vision of Innovation in Technology and Service to Society, the Company aims to use innovative technological advancements to serve society as its mission. In 2023, PSMC continued to implement three major implementation guidelines set by the Sustainable Development Committee, focusing on strengthening corporate governance, pursuing a balanced interest of stakeholders, implementing environmental protection and energy conservation efforts, and contributing to society.

Environmental Sustainability
Social Co-Prosperity
Corporate Perpetuity

Energy Management

Introduce ISO management system, improve energy efficiency through PDCA model, and set up a green energy team to plan the introduction of renewable energy.

  • 2023
    Target and Implementation Results

    • Electricity consumption per unit wafer area of 8,967 kWh/m2, 13% reduction in electricity consumption or a total annual power saving of 11GWh.(base year 2015)
    • Average annual power saving rate more than 1%
  • 2024
    Short-Term Objectives

    • 14% reduction in electricity consumption per unit wafer area or cumulative electricity savings of 99GWh by 2024(base year 2015)
    • Install renewable energy facilities /purchase green electricity ratio exceeding 8%
    • Average annual power saving rate more than 1%
  • 2025
    Mid-Term Objectives

    • 15% reduction in electricity consumption per unit wafer area or cumulative electricity savings of 110 GWh by 2025.(base year 2015)
    • Install renewable energy facilities /purchase green electricity ratio exceeding 8%
    • Average annual power saving rate more than 1%
  • 2030
    Long-Term Objectives

    • 20% reduction in electricity consumption per unit wafer area or cumulative electricity savings of 160 GWh by 2030.(base year 2015)
    • RE30 (renewable energy utilization rate of 30%)
    • Average annual power saving rate more than 1%

Climate Strategy

Establish a “Sustainable Development Committee” that is responsible for formulating climate change strategies and reviewing the compliance and appropriateness of the strategies and objectives. Establish a “Risk Management Committee” that is responsible for identifying and analyzing the organization's climate related risks, and effectively managing the potential risks faced by the organization in the face of climate change.

  • 2023
    Target and Implementation Results

    • Promote energy saving /carbon reduction programs to reduce greenhouse gases by an average of 1% per year.
    • 84% reduction of total perfluorinated compound emissions from the manufacturing process.
  • 2024
    Short-Term Objectives

    • Promote energy saving /carbon reduction programs to reduce greenhouse gases by an average of 1% per year.
    • 84.5% reduction of total perfluorinated compound emissions from the manufacturing process.
  • 2025
    Mid-Term Objectives

    • Promote energy saving /carbon reduction programs to reduce greenhouse gases by an average of 1% per year.
    • 10% reduction in direct greenhouse gases emissions per unit of product (base year 2015)
    • 85% reduction of total perfluorinated compound emissions from the manufacturing process.
  • 2030
    Long-Term Objectives

    • Promote energy saving /carbon reduction programs to reduce greenhouse gases by an average of 1% per year.
    • 30% reduction in greenhouse gases emissions per unit of product (base year 2015)
    • 20% reduction in direct greenhouse gases emissions per unit of product (base year 2015)

Occupational Safety and Health

Carry out daily operation according to the occupational safety and health management system, and review and adjust the overall system operation through regular audits in order to achieve the purpose of continuous improvement.

  • 2023
    Target and Implementation Results

    • Improved the effective number of health proposals by 10% (baseline of 55).
    • Zero cases of occupational illnesses caused by chemical exposure
    • Total health improvement achievement rate of ≥ 55% for key groups
  • 2024
    Short-Term Objectives

    • Improve the effective number of health proposals by 10% (baseline of 55).
    • Zero cases of occupational illnesses caused by chemical exposure
    • Total health improvement achievement rate of ≥ 65% for key groups
  • 2025
    Mid-Term Objectives

    • Improve the effective number of health proposals by 20% (baseline of 60).
    • Zero cases of occupational illnesses caused by chemical exposure
    • Total health improvement achievement rate of ≥ 70% for key groups
  • 2030
    Long-Term Objectives

    • Improve the effective number of health proposals by 50% (baseline of 75).
    • Zero cases of occupational illnesses caused by chemical exposure
    • Total health improvement achievement rate of ≥ 80% for key groups

Talent Attraction and Retention

Establish a perfect communication channel, formulate an education and training plan that meets the development needs of employees, listen to the employees' needs and suggestions, and use them as the basis of reference for system revisions to create a friendly workplace where employees can work with peace of mind.

  • 2023
    Target and Implementation Results

    • Completion rate of 94% for the training programs.
    • 100% response rate on Partner’s Words/ employees care network
    • Employee work engagement survey ≥ 4.5 points(Improvement Plan: Encourage supervisors and team members in each department to communicate and interact more frequently.)
  • 2024
    Short-Term Objectives

    • Connection rate of compensation with employee performance ≥ 90%
    • 100% response rate on Partner’s Words/ employees care network
    • Employee work engagement survey ≥ 4 points
  • 2025
    Mid-Term Objectives

    • Connection rate of compensation with employee performance ≥ 95%
    • 100% response rate on Partner’s Words/ employees care network
    • Employee work engagement survey ≥ 4 points
  • 2030
    Long-Term Objectives

    • Connection rate of compensation with employee performance ≥ 95%
    • 100% response rate on Partner’s Words/ employees care network
    • Employee work engagement survey ≥ 4.5 points

Talent Development

Establish a comprehensive and transparent promotion mechanism, and organize related courses and seminars to assist employees in their career development within the Company.

  • 2023
    Target and Implementation Results

    • Conducted 80 in-person courses, and approximately 18,000 participants in online courses.
  • 2024
    Short-Term Objectives

    • Conduct 2 sessions of senior executive courses and workshops.
    • Establish a mechanism for recommending successor candidates at all levels of management to effectively cultivate and promote suitable candidates.
  • 2025
    Mid-Term Objectives

    • Conduct 2 sessions of senior executive courses and workshops.
    • Succession planning and implementation for managers and supervisors at all levels (including divisions, departments and sections)
  • 2030
    Long-Term Objectives

    • Conduct 2 sessions of senior executive courses and workshops.
    • Succession planning and implementation for managers and supervisors at all levels (including divisions, departments and sections)

Product Liability and Quality

Regularly manage and monitor product quality to ensure customers receive the best quality products.

  • 2023
    Target and Implementation Results

    • Zero recalls have occurred
    • The number of Six Sigma certification holders yearly decreased by 2 to a total of 96(Improvement plan: Promote the Life certification model to enhance employee certification willingness.)
    • CIP competition yearly proposals increased by 40 to a total of 287
  • 2024
    Short-Term Objectives

    • 98% of Stop & Fix registration rate
    • Number of Six Sigma certification holders reaches 93.
    • Total number of entries for the CIP competition reaches 300.
  • 2025
    Mid-Term Objectives

    • 99% of Stop & Fix registration rate
    • Number of Six Sigma certification holders reaches 115.
    • Total number of entries for the CIP competition reaches 310.
  • 2030
    Long-Term Objectives

    • 100% of Stop & Fix registration rate
    • Number of Six Sigma certification holders reaches 140.
    • Total number of entries for the CIP competition reaches 320.

Integrity Management

With the belief of “integrity, service, quality, and innovation”, the company has established the “Integrity Management Code”, “Integrity Management Procedures and Behavior Guidelines” and related regulations, and are committed to building a corporate culture of integrity management.

  • 2023
    Target and Implementation Results

    • Added the Integrity Management Risk Assessment and Management Procedures.
    • Conducted company-wide integrity management compliance audits
    • Maintained a record of zero corruption incident for the entire year and a zero tolerance attitude toward integrity management practices.
  • 2024
    Short-Term Objectives

    • Obtain RBA certification in accordance with the Company’s RBA project.
    • Maintain ranking among the top 6%~20% of listed companies
  • 2025
    Mid-Term Objectives

    • Obtain ISO 37001 certification for bribery prevention management system in accordance with the Company’s policy.
    • Corporate governance assessment score ranks in the top 5%
  • 2030
    Long-Term Objectives

    • Adhere to the law and business ethics to build up the Company’s image of integrity and fulfillment of social responsibility.
    • Corporate governance assessment score ranks in the top 5%

Economic Performance

Continuously improve corporate governance evaluation scores and participate in international competitions to enhance corporate visibility and economic performance.

  • 2023
    Target and Implementation Results

    • Obtained the usage license of Tongluo P5 fab.
    • Achieved a target assessment score of 90 or more, ranking among the top 6% to 20%.
    • TCSA sustainability report assessment scores were higher than the previous year
    • DJSI assessment scores were higher than the previous year
  • 2024
    Short-Term Objectives

    • Maintain ranking among the top 6% to 20% among listed companies.
    • Maintain Category 1 Gold Grade for the TCSA sustainability report assessment ranking in the Electronics Manufacturing industry.
    • Maintain DJSI assessment ranking in the top 10 in the Semiconductor industry.
  • 2025
    Mid-Term Objectives

    • Corporate governance assessment score ranks in the top 5%.
    • Maintain Category 1 Gold Grade for the TCSA sustainability report assessment ranking in the Electronics Manufacturing industry.
    • Maintain DJSI assessment ranking in the top 10 in the Semiconductor industry.
  • 2030
    Long-Term Objectives

    • Corporate governance assessment score ranks in the top 5%.
    • Maintain Category 1 Platinum Grade for the TCSA sustainability report assessment ranking in the Electronics Manufacturing industry.
    • Maintain DJSI assessment ranking in the top 10 in the Semiconductor industry.

Information Security

Regularly conduct information security campaigns, purchase additional information security analysis software, and develop communication checking systems to ensure information security is implemented.

  • 2023
    Target and Implementation Results

    • No significant information security incidents occurred.
    • Critical information systems must establish a backup & recovery mechanism and implement backup & recovery exercises.
    • Obtained ISO 27001 certification.
  • 2024
    Short-Term Objectives

    • Continuously enhance employee education and training to improve information. security awareness
    • Strengthen drills to shorten the time required for restoration.
    • Precisely identify and audit trade secrets.
  • 2025
    Mid-Term Objectives

    • Introduce red team drills to enhance defense against hacker attacks.
    • Strengthen trade secret management.
  • 2030
    Long-Term Objectives

    • Cultivate a red team drill team to continuously enhance defense capabilities.
    • Develop a trade secret registration system.

Regulatory Compliance

Establish a clear regulatory compliance and internal audit system to strictly comply with legal requirements in order to avoid potential financial losses that could have an impact on the company's operations.

  • 2023
    Target and Implementation Results

    • Achieved a completion rate of 100% for participation in courses related to regulatory risk.
  • 2024
    Short-Term Objectives

    • Continue to conduct compliance courses and raise awareness, with a 100% participation rate by employees.
  • 2025
    Mid-Term Objectives

    • Continue to conduct compliance courses and raise awareness, with a 100% participation rate by employees.
  • 2030
    Long-Term Objectives

    • Continue to conduct compliance courses and raise awareness, with a 100% participation rate by employees.

Sustainable Supply Chain

Comply with PSMC’s procurement policy to ensure seamless supply from suppliers.

  • 2023
    Target and Implementation Results

    • Achieved a 100% completion rate for Responsible Business Alliance (RBA) Commitment Statement signed by Tier 1critical suppliers, along with a regular semi-annual assessment.
    • Achieved a completion rate of 100% for Tier 1 critical suppliers in conducting the Sustainability Management Self-Assessment Questionnaire and Sustainability Management on-site Audit.
    • Achieved a completion rate of 100% for regular semi-annual assessment of Tier 1 critical suppliers.
  • 2024
    Short-Term Objectives

    • Achieve a completion rate of 100% for CSR questionnaire survey of the Tier 1 suppliers.
    • Select 50 suppliers annually for the Sustainability Management Self-Assessment Questionnaire, with a target completion rate of 100%.
    • Select 50 contractors annually for the Sustainability Management Field Audit, with a target completion rate of 100%.
    • Achieve a completion rate of 100% for regular semi-annual assessment of suppliers.
    • Achieve a completion rate of 100% for regular annual assessment of contractors.
  • 2025
    Mid-Term Objectives

    • Expand to 100% signing of the Responsible Business Alliance (RBA) Commitment Statement by Tier 2 suppliers.
  • 2030
    Long-Term Objectives

    • Expand to 100% completion rate for Tier 2 suppliers to sign the Sustainability Management Self-Assessment Questionnaire.

Corporate Governance

Establish a sound corporate governance structure and culture in accordance with the Code of Corporate Governance Practices to strengthen the functions of the Board of Directors and enhance operational effectiveness.

  • 2023
    Target and Implementation Results

    • Completed the annual self-assessment and external organization’s evaluation of the Board of Directors and functional committees to strengthen the functions of the directors.
  • 2024
    Short-Term Objectives

    • Develop action plans to address ESG evaluation indicators and the latest international sustainability trends.
    • Continuously conduct annual self-assessment of the Board of Directors and functional committees to enhance the functions of the directors.
  • 2025
    Mid-Term Objectives

    • Continuously pay attention to the domestic ESG evaluation indicators, international trends and keep abreast of the changes in regulations, and draw up further training programs for directors and governance staff to enhance their governance capabilities.
    • Continuously conduct annual self-assessment of the Board of Directors and functional committees to enhance the functions of the directors.
  • 2030
    Long-Term Objectives

    • Rolling revision of corporate governance-related regulations and management systems in accordance with ESG evaluation indicators
    • Continuously conduct annual self-assessment of the Board of Directors and functional committees, and entrust external organizations to conduct evaluations every three years to enhance the functions of the directors.

Innovation and Intellectual Property Management

In accordance with the Patent Management Regulations and following the TIPS Intellectual Property Management System, the company operate in alignment with the Company’s intellectual property strategy to ensure the protection of R&D achievements and gradually achieve short, medium, and long-term intellectual property goals.

  • 2023
    Target and Implementation Results

    • Introduced the TIPS Intellectual Property Management System.
  • 2024
    Short-Term Objectives

    • Develop product and technology blueprints and collaborate on industry-academia projects, proposing complementary technological improvements and innovations through relevant patent applications.
    • Dynamically adjust the countries and numbers of annual patent applications, and create patent maps for key technologies
    • Maintain Taiwan Intellectual Property Management System (TIPS) A-level certification.
    • Achieve a total of 120 patents.
  • 2025
    Mid-Term Objectives

    • In alignment with the company's intellectual property strategy, the company continue to optimize the company's intellectual property management capabilities, achieve the company's operating goals and improve R&D innovation efficiency through risk management thinking
  • 2030
    Long-Term Objectives

    • Enhance the management of the Company’s R&D achievements and the results of industry-academia collaborative projects. Integrate global patent strategies to avoid patent infringement litigation, ensure comprehensive intellectual property protection for R&D achievements, and provide customers with more advanced and complete foundry services.

Risk Management

Following the "Risk Management Policies and Procedures" and through a comprehensive risk management structure, the company consider and manage various risks that may affect the achievement of goals to achieve corporate goals, improve management efficiency, provide reliable information and effectively allocate resources

  • 2023
    Target and Implementation Results

    • The Risk Management Policies and Procedures have been approved and implemented by the Board of Directors as the highest guiding principle for risk management.
    • The Risk Management Committee has been established to formulate risk control mechanisms, monitoring systems, early warning systems, and stop-loss mechanisms, and identify potential improvement opportunities.
    • Operational and implementation status of risk management: Completed the risk knowledge base - identified 165 risks and 762 risk scenarios, completed the risk map, and reported the 2023 risk report to the Audit Committee and the Board of Directors.
  • 2024
    Short-Term Objectives

    • Implement the risk management system, and continuously nurture the concept of risk management.
    • Integrate the risk management process of P5 fab.
    • Implementation and execution of risk management:Focus on 2024 risk issues, conduct risk identification, analysis, assessment, and develop response action plans.
    • Convene the Risk Management Committee meetings every semi-year to consolidate and report on the Company’s risk management implementation status.
    • Report the annual risk management implementation results to the Board of Directors for the year in the fourth quarter.
  • 2025
    Mid-Term Objectives

    • Continuously follow up on the medium-term action plans related to risk management issues.
    • Continuously improve processes and update the risk database to enhance risk awareness among employees of the Company.
    • Regularly review the effectiveness of the risk management mechanism, identify deficiencies, and continue to strengthen and enhance it.
    • Continuously cultivate more employees with correct risk management knowledge and concepts.
    • Implementation and execution of risk management: Continuously monitor annual risk issues, conduct risk identification, analysis, assessment, and develop response action plans, consolidate and report on the Company’s risk management implementation status.
    • Report the annual risk management implementation results to the Board of Directors for the year in the fourth quarter.
  • 2030
    Long-Term Objectives

    • Continuously improve processes and update the risk database to enhance risk awareness among employees of the Company.
    • Systematic management approach to enhance operational efficiency.
    • Implementation and execution of risk management: Continuously monitor annual risk issues, conduct risk identification, analysis, assessment, and develop response action plans, consolidate and report on the Company’s risk management implementation status.
    • Report the annual risk management implementation results to the Board of Directors for the year in the fourth quarter.

Customer Relationship Management

Communicate with customers regarding services, product information, and the service market to understand their needs, thereby maintaining customer relationships and enhancing customer satisfaction.

  • 2023
    Target and Implementation Results

    • Achieved an average customer satisfaction score of over 88.
  • 2024
    Short-Term Objectives

    • Maintained a total average customer satisfaction score of 88.
  • 2025
    Mid-Term Objectives

    • Maintained a total average customer satisfaction score of 90.
  • 2030
    Long-Term Objectives

    • Maintained a total average customer satisfaction score of 92.
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