Sustainable Development Strategy

Sustainable Development Commitment

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.

  • 2024
    Target and Implementation Results

    • Electricity consumption per unit wafer area of 12,573kWh/m2, a total annual power saving of 122GWh. (base year 2015)
    • Install renewable energy facilities/ purchase green electricity ratio exceeding 8%
    • Average annual power saving rate more than 1.4%

  • 2025
    Short-Term Objectives

    • 15% reduction in electricity consumption per unit wafer area or cumulative electricity savings of 110GWh by 2025 (base year 2015)
    • Install renewable energy facilities /purchase green electricity ratio exceeding 8%
    • Average annual power saving rate more than 1.5%

  • 2027
    Mid-Term Objectives

    • 17% reduction in electricity consumption per unit wafer area or cumulative electricity savings of 132GWh by 2027 (base year 2015)
    • Install renewable energy facilities /purchase green electricity ratio exceeding 8%
    • Average annual power saving rate more than 1.5%

  • 2030
    Long-Term Objectives

    • 20% reduction in electricity consumption per unit wafer area or cumulative electricity savings of 160GWh by 2030 (base year 2015)
    • RE30 (renewable energy utilization rate of 30%)
    • Average annual power saving rate more than 1.5%

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.

  • 2024
    Target and Implementation Results

    • Average annual reduction rate of greenhouse gases : 1.4%
    • Reduction of total perfluorinated compound emissions from the manufacturing process : 93%

  • 2025
    Short-Term Objectives

    • Average annual reduction rate of greenhouse gases : 1%
    • Reduction of total perfluorinated compound emissions from the manufacturing process : 85%
    • Greenhouse gas direct emissions – Absolute reduction of 10% ; 10tons (base year 2020)

  • 2027
    Mid-Term Objectives

    • Average annual reduction rate of greenhouse gases : 1%
    • Greenhouse gas direct emissions – Absolute reduction of 12% ; 12tons (base year 2020)

  • 2030
    Long-Term Objectives

    • Average annual reduction rate of greenhouse gases : 1%
    • Reduction of total perfluorinated compound emissions from the manufacturing process : 90%
    • Greenhouse gas direct emissions – Absolute reduction of 14% ; 15tons (base year 2020)
    • Greenhouse gas scopes 1 and 2, Absolute reduction: 10% (base year 2020)

Waste Policy and Management

With the goals of increasing waste recycling rates and reducing landfill rates, a multi-layered management strategy and vendor guidance program has been implemented, incorporating ISO evaluations to minimize environmental impact to the greatest extent possible.

  • 2024
    Target and Implementation Results

    • This is a newly added material topic for 2024

  • 2025
    Short-Term Objectives

    • Waste recycling rate : 92%
    • Waste landfill rate less 0.5%
    • Proportion of on-site audits and guidance for key waste disposal vendors: 100%
    • Guidance for waste disposal vendors to obtain ISO 14001 certification or complete compliance evaluations exceeding 60%
    • Waste reduction projects : 40 projects /year

  • 2027
    Mid-Term Objectives

    • Waste recycling rate : 93%
    • Waste landfill rate less 0.4%
    • Proportion of on-site audits and guidance for key waste disposal vendors: 100%
    • Guidance for waste disposal vendors to obtain ISO 14001 certification or complete compliance evaluations exceeding 70%
    • Waste reduction projects : 45 projects /year

  • 2030
    Long-Term Objectives

    • Waste recycling rate : 94%
    • Waste landfill rate less 0.3%
    • Proportion of on-site audits and guidance for key waste disposal vendors: 100%
    • Guidance for waste disposal vendors to obtain ISO 14001 certification or complete compliance evaluations exceeding 80%
    • Waste reduction projects : 50 projects /year

Air Pollution Prevention

Establish target indices for air pollution, with VOCs (volatile organic compounds) as the primary observation category, ensuring effective control of air pollutant emissions during operations and minimizing potential environmental impact.

  • 2024
    Target and Implementation Results

    • This is a newly added material topic for 2024

  • 2025
    Short-Term Objectives

    • Abnormal emission incidents: <1 incident report
    • Efficiency of VOCs treatment facilities for all fabs: >94%
    • VOCs emissions per unit product area: 28% (base year: 2015)
    • Cumulative reduction of total air pollutant emissions: 5.86 tons；15%

  • 2027
    Mid-Term Objectives

    • Abnormal emission incidents: <1 incident report
    • Efficiency of VOCs treatment facilities for all fabs: >95%
    • VOCs emissions per unit product area: 29% (base year: 2015)
    • Cumulative reduction of total air pollutant emissions: 6.65 tons；17%

  • 2030
    Long-Term Objectives

    • Abnormal emission incidents: <1 incident report
    • Efficiency of VOCs treatment facilities for all fabs: >96%
    • VOCs emissions per unit product area: 30% (base year: 2015)
    • Cumulative reduction of total air pollutant emissions: 9.78 tons；25%

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.

  • 2024
    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 ≥ 70% for key groups

  • 2025
    Short-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

  • 2027
    Mid-Term Objectives

    • Improve the effective number of health proposals by 30% (baseline of 60).
    • Zero cases of occupational illnesses caused by chemical exposure
    • Total health improvement achievement rate of ≥ 75% 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

 Note: key groups refer to general employees with abnormally high health examinations and special operations level three or above reported by the hospital.

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.

  • 2024
    Target and Implementation Results

    • Connection rate of compensation with employee performance ≥ 90%
    • 100% response rate on Partner’s Words/ employees care network
    • Employee work engagement survey ≥ 3.9 points

  • 2025
    Short-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

  • 2027
    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 ≥ 4.2 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.

  • 2024
    Target and Implementation Results

    • Conduct senior executive courses and workshops: ≧2 sessions
    • Establish succession planning and implementation for managers and supervisors at all levels (including divisions, department and sections) to effectively cultivate and promote suitable candidates.

  • 2025
    Short-Term Objectives

    • Conduct senior executive courses and workshops: ≧2 sessions
    • Mid-level management training program: ≧2 sessions
    • Professional skill lectures and courses (for all employees): ≧2 sessions
    • Establish succession planning and implementation for managers and supervisors at all levels (including divisions, department and sections) to effectively cultivate and promote suitable candidates.
    • MTP training participation rate for succeeding managers at department level and higher: 50%

  • 2027
    Mid-Term Objectives

    • Conduct senior executive courses and workshops: ≧2 sessions
    • Establish succession planning and implementation for managers and supervisors at all levels (including divisions, department and sections) to effectively cultivate and promote suitable candidates.
    • MTP training participation rate for succeeding managers at department level and higher: 80%

  • 2030
    Long-Term Objectives

    • Conduct senior executive courses and workshops: ≧2 sessions
    • Establish succession planning and implementation for managers and supervisors at all levels (including divisions, department and sections) to effectively cultivate and promote suitable candidates.
    • MTP training participation rate for succeeding managers at department level and higher: 90%

Product Liability and Quality

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

  • 2024
    Target and Implementation Results

    • Stop & Fix registration rate: 98%
    • Number of Six Sigma certification holders: 92 persons
    • Total number of entries for the CIP competition: 271 cases

  • 2025
    Short-Term Objectives

    • Implement comprehensive testing or declaration for raw material suppliers and target to achieve 100% Hazardous Substance-Free (HSF) quality
    • 0 cases of products recalled by customers due to safety concerns

  • 2027
    Mid-Term Objectives

    • Implement comprehensive testing or declaration for raw material suppliers and target to achieve 100% Hazardous Substance-Free (HSF) quality
    • 0 cases of products recalled by customers due to safety concerns

  • 2030
    Long-Term Objectives

    • Implement comprehensive testing or declaration for raw material suppliers and target to achieve 100% Hazardous Substance-Free (HSF) quality
    • 0 cases of products recalled by customers due to safety concerns

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.

  • 2024
    Target and Implementation Results

    • Continue promoting the ethical management risk assessment operations

  • 2025
    Short-Term Objectives

    • Continue promoting the ethical management risk assessment operations

  • 2027
    Mid-Term Objectives

    • Continue promoting ethical management, to enhance employees' awareness of anti-bribery measures and deepen their understanding of business ethics.

  • 2030
    Long-Term Objectives

    • Adhere to legal and business ethical standards, to build the Company's reputation for integrity and fulfill our social responsibility.

Economic Performance

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

  • 2024
    Target and Implementation Results

    • Maintain Corporate Governance Evaluation ranking within top 5% among listed companies.
    • TCSA sustainability report assessment ranking in the Category 1 Electronics Manufacturing industry: Platinum Grade
    • DJSI assessment ranking 5th in the Semiconductor industry

  • 2025
    Short-Term Objectives

    • Maintain Corporate Governance Evaluation ranking within top 6%~20% among listed companies.
    • Maintain for the TCSA sustainability report assessment ranking in the Category 1 Electronics Manufacturing industry in Platinum Grade
    • Maintain DJSI assessment ranking in Top 10 in the Semiconductor industry

  • 2027
    Mid-Term Objectives

    • Maintain Corporate Governance Evaluation ranking within top 5% among listed companies.
    • Maintain for the TCSA sustainability report assessment ranking in the Category 1 Electronics Manufacturing industry in Platinum Grade
    • Maintain DJSI assessment ranking in Top 10 in the Semiconductor industry

  • 2030
    Long-Term Objectives

    • Maintain Corporate Governance Evaluation ranking within top 5% among listed companies.
    • Maintain for the TCSA sustainability report assessment ranking in the Category 1 Electronics Manufacturing industry in Platinum Grade
    • Maintain DJSI assessment ranking in 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.

  • 2024
    Target and Implementation Results

    • Enhance employee education and training to improve information security awareness
    • Strengthen drills to shorten the time required for restoration
    • Identify and audit trade secrets Enhance defense against hacker attacks

  • 2025
    Short-Term Objectives

    • Continue to enhance employee education and training to improve information security awareness
    • Continue to strengthen drills to shorten the time required for restoration
    • Continue to identify and audit trade secrets Enhance defense against hacker attacks

  • 2027
    Mid-Term Objectives

    • Continue to enhance employee education and training to improve information security awareness
    • Strengthen trade secret management
    • Introduce Red Team Drills to enhance defense against hacker attacks

  • 2030
    Long-Term Objectives

    • Continue to enhance employee education and training to improve information security awareness
    • Develop a trade secret registration system
    • Cultivate a group of Red Team Drills to enhance defense against hacker attacks

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.

  • 2024
    Target and Implementation Results

    • Achieved a completion rate of 100% for participation in courses related to regulatory risk

  • 2025
    Short-Term Objectives

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

  • 2027
    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.

  • 2024
    Target and Implementation Results

    • Achieve 100% completion rate for CSR questionnaire survey of the Tier 1 suppliers
    • Select 50 suppliers annually for the Sustainability Management Self-Assessment Questionnaire, with an achievement of 100% completion rate
    • Select 50 contractors annually for the Sustainability Management Field Audit, with an achievement of 100% completion rate
    • Achieve 100% completion rate for regular semi-annual assessment of suppliers
    • Achieve 100% completion rate for regular annual assessment of Contractors

  • 2025
    Short-Term Objectives

    • For the RBA project plan for Tier-1 critical suppliers and their critical suppliers (Tier-2 critical suppliers), conduct the RBA awareness promotion with 100% target completion rate.
    • Achieve 100% completion rate for supplier qualification reassessments, based on major ESH violations.

  • 2027
    Mid-Term Objectives

    • For the RBA project plan for Tier-1 critical suppliers and their critical suppliers (Tier-2 critical suppliers), obtain signed RBA pledge based on the target number of suppliers with 100% target completion rate.
    • Achieve 100% completion rate for supplier qualification reassessments, based on major ESH violations.

  • 2030
    Long-Term Objectives

    • For the RBA project plan for Tier-1 critical suppliers and their critical suppliers (Tier-2 critical suppliers), conduct CSR self-assessments based on the target number of suppliers with 100% target completion rate.
    • Achieve 100% completion rate for supplier qualification reassessments, based on major ESH violations.

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.

  • 2024
    Target and Implementation Results

    • Develop action plans to address ESG evaluation indicators and the latest international sustainability trends
    • Conduct annual Board of Directors meetings, director self-assessments, and functional committee performance evaluations to strengthen board functions

  • 2025
    Short-Term Objectives

    • Continuous tracking and draw up further training programs for directors and governance staff to enhance their governance capabilities.
    • Continue to conduct annual Board of Directors meetings, director self-assessments, and functional committee performance evaluations to strengthen board functions

  • 2027
    Mid-Term Objectives

    • Rolling revision of corporate governance-related regulations and management systems in accordance with ESG evaluation indicators
    • Continue to complete internal evaluations and engage external institutions for assessments every three years.

  • 2030
    Long-Term Objectives

    • Rolling revision of corporate governance-related regulations and management systems in accordance with ESG evaluation indicators
    • Continue to complete internal evaluations and engage external institutions for assessments every three years.

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.

  • 2024
    Target and Implementation Results

    • Customer satisfaction score: Average score 95, 93%

  • 2025
    Short-Term Objectives

    • Customer satisfaction score: Average score ≧ 90, ≧ 92%

  • 2027
    Mid-Term Objectives

    • Customer satisfaction score: Average score ≧ 90, ≧ 92%

  • 2030
    Long-Term Objectives

    • Customer satisfaction score: Average score ≧ 90, ≧ 92%