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 Posterity

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.

  • 2025
    Implementation Results

    • -15%（11,817 kWh/m2） reduction in electricity consumption per unit wafer area or improve the average annual electricity saving of 120.8GWH (base year 2015)
    • Improve the average annual electricity saving rate 1.57%
    • Install renewable energy facilities/purchase green electricity rate 2.0%

  • 2026~2028
    Short-Term Objectives

    • 15% reduction in electricity consumption per unit wafer area or improve the average annual electricity saving of 121~143GWH (base year 2015)
    • Improve the average annual electricity saving rate ≧1.5%
    • Install renewable energy facilities/purchase green electricity rate 2.7%(2026), 4.5%(2027), 8.1%(2028)

  • >2031
    Long-Term Objectives

    • 20% reduction in electricity consumption per unit wafer area or improve the average annual electricity saving of 165GWH (base year 2015)
    • Improve the average annual electricity saving rate ≧1.5%
    • Install renewable energy facilities/purchase green electricity rate ≧30%

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.

  • 2025
    Implementation Results

    • Average annual reduction rate of greenhouse gases : ≧1.0%
    • Greenhouse gas direct emissions – Absolute reduction ≧ 10% (≧ 10,000 tons）(base year 2020)

  • 2026~2028
    Short-Term Objectives

    • Average annual reduction rate of greenhouse gases : 1.0%
    • Greenhouse gas direct emissions – Absolute reduction 10% (10,000 tons）(base year 2020)

  • >2031
    Long-Term Objectives

    • Average annual reduction rate of greenhouse gases : 1.0%
    • Greenhouse gas direct emissions – Absolute reduction 14% (15,000 tons）(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.

  • 2025
    Implementation Results

    • Waste recycling rate: 94.97%
    • Waste landfill rate: 0.1%
    • 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 evaluation rate: 66.7%
    • Waste reduction projects : 47 projects /year

  • 2026~2028
    Short-Term Objectives

    • Waste recycling rate ≥93%
    • Waste landfill rate: ≤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 evaluation rate: ≥60%
    • Waste reduction projects : 43 projects /year

  • >2031
    Long-Term Objectives

    • Waste recycling rate ≥94
    • Waste landfill rate: ≤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 evaluation rate: ≥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.

  • 2025
    Implementation Results

    • Abnormal emission incidents: <1 incident
    • Efficiency of VOCs treatment facilities for all Fabs: 97.8%
    • VOCs emissions per unit product area: 31.27% (base year: 2015)
    • Cumulative reduction of total air pollutant emissions: 14.766tons (37.75%)

  • 2026~2028
    Short-Term Objectives

    • Abnormal emission incidents: <1 incident
    • 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%)

  • >2031
    Long-Term Objectives

    • Abnormal emission incidents: <1 incident
    • 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%)

Water Resource Management

Establish a water resource management platform, and share experiences through group meetings, to achieve ongoing water resource management.

  • 2025
    Implementation Results

    • Manufacturing process water recycling rate 88%
    • Water recycling rate for all fabs 79%
    • Each fab is to implement a package of water conservation measures, with 1 effective package each, for a total of 5 packages, water-saving 818,877 tons

  • 2026~2028
    Short-Term Objectives

    • Manufacturing process water recycling rate ＞85%
    • Water recycling rate for all fabs ＞70%
    • Each fab is to implement a package of water conservation measures, with 1 effective package each, for a total of 5 packages, water-saving 132,000 tons

  • >2031
    Long-Term Objectives

    • Manufacturing process water recycling rate ＞85%
    • Water recycling rate for all fabs ＞70%
    • Each fab is to implement a package of water conservation measures, with 1 effective package each, for a total of 5 packages, water-saving 241,000 tons

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.

  • 2025
    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(Note)

  • 2026~2028
    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(Note)

  • >2031
    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)

 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.

  • 2025
    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

  • 2026~2028
    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 ≥ 4.0 points

  • >2031
    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

 Performance Review:
 Employee engagement survey scores were lower, primarily in the areas of work engagement and salary satisfaction.
 1. Work Engagement: Supervisors will be encouraged to communicate and interact more with their team members, understand their work challenges, and provide timely support and training. This will help enhance employees' sense of achievement, thereby improving work engagement and satisfaction.
 2. Salary Satisfaction: Due to the Company's less-than-ideal operational performance 2025 year, salary satisfaction was affected.

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.

  • 2025
    Implementation Results

    • Conduct senior executive courses and workshops: ≧2 sessions
    • Mid-level management training program: 4 sessions
    • Professional skill lectures and courses (for all employees): 4 sessions
    • Continuously 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:83.8%

  • 2026~2028
    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
    • Continuously 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%

  • >2031
    Long-Term Objectives

    • Conduct senior executive courses and workshops: ≧2 sessions
    • Continuously 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.

  • 2025
    Implementation Results

    • Creating NT$640M financial benefits from continuous improvement activities
    • Implement comprehensive testing or declaration for raw material suppliers: 116 cases
    • Zero case of products recalled by customers due to safety concerns

  • 2026~2028
    Short-Term Objectives

    • Creating NT$150M financial benefits from continuous improvement activities
    • Achieve 100% Hazardous Substance-Free (HSF) quality target
    • Zero case of products recalled by customers due to safety concerns

  • >2031
    Long-Term Objectives

    • Creating NT$250M financial benefits from continuous improvement activities
    • Achieve 100% Hazardous Substance-Free (HSF) quality target
    • Zero case 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.

  • 2025
    Implementation Results

    • Continue promoting the ethical management risk assessment operations

  • 2026~2028
    Short-Term Objectives

    • Continue promoting the ethical management risk assessment operations

  • >2031
    Long-Term Objectives

    • Continue promoting the ethical management risk assessment operations
    • 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.

  • 2025
    Implementation Results

    • Corporate Governance Evaluation ranking top 5% among listed companies.
    • TCSA sustainability report assessment ranking in the Category 1 Electronics Manufacturing industry: Platinum Grade
    • DJSI assessment ranking 7th in the Semiconductor industry

  • 2026~2028
    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

  • >2031
    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.

  • 2025
    Implementation Results

    • Continuously enhance employee education and training to improve information security awareness
    • Continuously strengthen drills on how to shorten the required restoration time.
    • Continuously carry out precise identification and audit of trade secrets

  • 2026~2028
    Short-Term Objectives

    • Continuously enhance employee education and training to improve information security awareness
    • Continuously strengthen drills on how to shorten the required restoration time.
    • Continuously carry out precise identification and audit of trade secret

  • >2031
    Long-Term Objectives

    • Continuously enhance employee education and training to improve information security awareness
    • Continuously strengthen drills on how to shorten the required restoration time.
    • Continuously carry out precise identification and audit of trade secret
    • 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.

  • 2025
    Implementation Results

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

  • 2026~2028
    Short-Term Objectives

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

  • >2031
    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.

  • 2025
    Implementation Results

    • Achieve 100% completion rate for CSR questionnaire survey of the Tier 1 suppliers
    • Select 25 suppliers annually for the Sustainability Management Self-Assessment Questionnaire, with an achievement of 100% completion rate
    • Select 25 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
    • Achieve 100% completion rate for supplier qualification reassessments, based on major ESH violations

  • 2026~2028
    Short-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.

  • >2031
    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.

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.

  • 2025
    Implementation Results

    • Customer satisfaction score: Average score 96.1, 100%

  • 2026~2028
    Short-Term Objectives

    • Customer satisfaction score(NOTE): Average score ≧ 3.5, ≧ 90%

  • >2031
    Long-Term Objectives

    • Customer satisfaction score(NOTE): Average score ≧ 3.5, ≧ 90%

 Note: In consideration of industry practice (ISO 9001/IATF 16949) and IFRS consultant guidance, client satisfaction assessment are changed to client satisfaction survey results. This will faithfully reflect clients' objective feelings and allow discovering potential problems sooner rather than later, thus allowing us to formulate improvement actions as early as possible, and continually improving client satisfaction and loyalty.