Sustainable Development Strategy
Sustainable Development Commitment
The“Code of Practice for Sustainable Development”is the highest guiding principle for sustainable development within the company, and with the vision of “Innovation in Technology and Service to Society”, we expect to serve society with innovative technologies. The company has ingrained the four pillars of its corporate culture into the core of its business philosophy, striving for sound corporate governance, pursuing balanced stakeholder interests, promoting environmental protection and energy conservation, and contributing to society. 2022 saw the Sustainable Development Committee redefine three major implementation guidelines, namely: 1) Aim for low carbon, green energy and net zero emissions; 2) Encourage employees to participate in community building; 3) Recognize diversified values. We are committed to achieving the corresponding SDGs.
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.
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2022
Target and Implementation Results- The 8-inch fab has already implemented the ISO50001 energy management system
- Achieved 1% power saving target
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2023
Short-Term Objectives- 13% reduction in power consumption per wafer area (base year 2015)
- 100% completion of the construction of own solar power plant
- Average annual power saving rate of more than 1%
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2025
Mid-Term Objectives- 15% reduction in power consumption per wafer area (base year 2015)
- Install renewable energy facilities/procure green power by over 8%
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2030
Long-Term Objectives- 20% reduction in electricity consumption per wafer area or cumulative energy savings of 160 million kWh by 2030 (base year 2015)
- RE30 (renewable energy use of 30%)
Climate Strategy
Establish an“ESG 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.
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2022
Target and Implementation Results- Greenhouse gas reduction of 1.20%
- Completed 2023 Green Power Certificatie procurement of 10.5MW
- P1/2, 8A fab 0.5MW solar photovoltaic system setup
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2023
Short-Term Objectives- Promote energy savings/carbon reduction programs to reduce greenhouse gases by an average of 1% per year
- 84% reduction of total fluoride emissions from the manufacturing process
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2025
Mid-Term Objectives- Promote energy saving/carbon reduction programs with an average annual GHG reduction of 1% (YOY)
- 10% reduction indirect greenhouse gas emissions per unit of product (base year 2015)
- 85% reduction of total fluoride emissions from the manufacturing process
- After the approval of the Tongluo Environmental Impact Assessment, the new plant requires 25% green power
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2030
Long-Term Objectives- Promote energy saving/carbon reduction programs with an average annual GHG reduction of 1% (YOY)
- 30% reduction in greenhouse gas emissions per unit of product (base year 2015)
- 20% reduction indirect greenhouse gas emissions per unit of product (base year 2015)
- 90% reduction of total fluoride emissions from themanufacturing process
- RE30(520GWh)
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.
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2022
Target and Implementation Results- Staffing rate of 95.1%
- Completion rate of 94% for training programs
- 100% response rate on“Feedback Corner”employee communication platform
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2023
Short-Term Objectives- Completion rate of ≧ 90% for the training programs
- ≧ 95% response rate on“Feedback Corner”employee communication platform
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2025
Mid-Term Objectives- Compensation and employee performance correlation ≧ 95%
- Completion rate of common mandatory management courses for supervisors ≧ 90%
- ≧ 95% response rate on“Feedback Corner”employee communication platform
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2030
Long-Term Objectives- Compensation and employee performance correlation ≧ 95%
- Completion rate of common mandatory management courses for supervisors ≧ 92%
- ≧ 96% response rate on“Feedback Corner”employee communication platform
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.
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2022
Target and Implementation Results- The number of effective improvement proposals has reached 50
- Zero cases of occupational illnesses caused by chemical exposure
- Total health improvement achievement rate of 55% for key groups
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2023
Short-Term Objectives- Improve the effective number of health proposals by 10% (baseline of 50)
- Zero cases of occupational illnesses caused by chemical exposure
- Total health improvement achievement rate of ≧ 55% for key groups
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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 ≧ 56% for key groups
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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 ≧ 60% for key groups%
Economic Performance
Continuously improve corporate governance scores and participate in international competitions to enhance corporate visibility and economic performance.
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2022
Target and Implementation Results- Development of 3D Interchip samples
- Received a rating of 62 from DJSI
- Awarded Category 1 Silver Grade in the TCSA competition for the Electronic Information Manufacturing Industry
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2023
Short-Term Objectives- Over 110 patent applications per year
- The completion of the construction of Tongluo P5 fab
- Evaluation score target of 90 points or higher, evaluation score in the top 6% ~ 20%
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2025
Mid-Term Objectives- Develop niche products within the market and technology to give back to the society and become a world-class technology company
- Top 5% in Corporate Governance Rating
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2030
Long-Term Objectives- Monthly production capacity of Tongluo P5 fab to reach 100,000 pieces by 2030
- Top 5% in Corporate Governance Rating
Integrity Management
With the belief of “integrity, service, quality, and innovation”, we have 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.
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2022
Target and Implementation Results- Zero corruption incidents
- Zero anti-competitive behavior incidents
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2023
Short-Term Objectives- Maintain a record of zero corruption cases for the entire year and a zero tolerance attitude towards dishonest management practices
- Perform company-wide integrity management compliance checks
- Plans for P1/2, P3, 8A, 8B fabs to pass RBA verification simultaneously
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2025
Mid-Term Objectives- Obtain ISO 37001 certification for bribery prevention management system in accordance with company policy
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2030
Long-Term Objectives- Adhering to the law and business ethics to build up the company's image of integrity and fulfillment of social responsibility
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.
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2022
Target and Implementation Results- There were no major incidents that were in violation of laws and regulations
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2023
Short-Term Objectives- Continue to conduct compliance courses and raise awareness, with a 100% participation rate by employees
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2025
Mid-Term Objectives- Continue to conduct compliance courses and raise awareness, with a 100% participation rate by employees
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2030
Long-Term Objectives- Continue to conduct compliance courses and raise awareness, with a 100% participation rate by employees
Product Liability and Quality
Regularly manage and monitor product quality to ensure customers receive the best quality products.
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2022
Target and Implementation Results- Zero recalls have occurred
- The number of certified Six Sigma students increased by 5 to a total of 98
- CIP competition yearly proposals increased by 68 to a total of 234
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2023
Short-Term Objectives- Achievement rate for improvement measures is 100%
- The number of people who passed the Six Sigma Certification is 103
- The total number of entries for the CIP competition is 250
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2025
Mid-Term Objectives- Achievement rate for improvement measures is 100%
- The number of people who passed the Six Sigma Certification is 125
- The total number of entries for the CIP competition is 275
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2030
Long-Term Objectives- Achievement rate for improvement measures is 100%
- The number of people who passed the Six Sigma Certification is 150
- The total number of entries for the CIP competition is 320
Information Security
Regularly conduct information security campaigns, purchase additional information security analysis software, and develop communication checking systems to ensure information security is implemented.
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2022
Target and Implementation Results- There were no information security incidents
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2023
Short-Term Objectives- No major information security and data leakage incidents
- Critical information systems must establish a backup recovery mechanism and implement backup recovery exercises
- Obtain ISO27001 certification
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2025
Mid-Term Objectives- Introduction of red team drills to refine hacker attack defense capabilities
- Development of trade secret registration system
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2030
Long-Term Objectives- Cultivate red drill team to continuously strengthen defense capabilities
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.
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2022
Target and Implementation Results- Completed the annual performance evaluation of the Board of Directors and functional committees to strengthen the functions of the directors
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2023
Short-Term Objectives- Develop action plans in response to the first ESG assessment indicators and the latest international sustainability trends
- Ongoing annual performance evaluation of the Board of Directors and functional committees to strengthen the functions of the Directors
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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
- Ongoing annual performance evaluation of the Board of Directors and functional committees to strengthen the functions of the Directors
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2030
Long-Term Objectives- Rolling revision of corporate governance-related regulations and management systems in accordance with ESG evaluation indicators
- Ongoing annual performance evaluation of the Board of Directors and functional committees to strengthen the functions of the Directors
Sustainable Supply Chain
Comply with PSMC's procurement policy to ensure seamless supply from suppliers.
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2022
Target and Implementation Results- Signed Responsible Business Alliance (RBA) pledge and completed all of the semi-annual periodic evaluations by first-tier key suppliers
- 14 first-tier suppliers were selected each year for the “Sustainability Management Self-Assessment Questionnaire”, and the completion rate reached 100%
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2023
Short-Term Objectives- Have first-tier suppliers sign the Responsible Business Alliance (RBA) pledge and achieve a 100% completion rate for semi-annual periodic reviews
- Completion rate of“Sustainability Management Self-Assessment Questionnaire”and“Sustainability Management Field Audit”to reach 100% for 14 first-tier suppliers selected every year
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2025
Mid-Term Objectives- Expand to all second-tier suppliers signing 100 the Responsible Business Alliance (RBA) pledge
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2030
Long-Term Objectives- Expand to the second-tier suppliers to sign the“Sustainability Management Self-Assessment Questionnaire”with a 100% completion rate
Customer Relationship Management
Communicate with customers about services, product information and service markets to understand their needs, in order to maintain customer relationships and enhance customer satisfaction.
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2022
Target and Implementation Results- Customer satisfaction score of 94
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2023
Short-Term Objectives- Maintain an overall average customer satisfaction score of 88
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2025
Mid-Term Objectives- Maintain an overall average customer satisfaction score of 90
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2030
Long-Term Objectives- Maintain an overall average customer satisfaction score of 92