The company collects issues based on the sources of risks that the company may encounter in its daily operations, examines the industries to which it belongs, and weighs relevant domestic and foreign information, identifies the company's main risks, and implements risk management response measures to strengthen control：
risk management process：Risk management knowledge ->risk measurement -> Risk management execution
| ESG | Risk projects | Risk statement | Countermeasures |
|---|---|---|---|
| governance | financial risk | Market risk (exchange rate and price risk), credit risk and liquidity risk, etc. | As financial interest rates change, the company adjusts its capital utilization in a timely manner. In response to the financial risks that may arise from changes in interest rates, future capital planning will still be based on prudent principles, and capital allocation will be safely controlled. Taking into account the company's future operating scale and profitability improvement, in addition to continuing Maintain good relationships with financial institutions and strive for the best interest rates in a timely manner to reduce interest expenses and respond to financial risks arising from interest rate changes. |
| governance | operational risk | Competitive Risks in China’s Semiconductor Industry | The company strengthens its engineering capabilities for new products and provides advanced testing and packaging services. In terms of quality, delivery time, efficiency and flexible service content, the company differentiates itself from mainland Chinese manufacturers and obtains more opportunities for long-term cooperation with Taiwanese and foreign customers. |
| governance | operational risk | Fluctuations in the semiconductor market affect operations | In response to the continuous changes in the semiconductor industry market and its technology, the company continues to develop new products, establish long-term cooperative relationships with customers, and provide customers with high value-added foundry services. As markets such as high-performance computing, 5G, Internet of Things and automotive electronics continue to expand, the company's customers have deployed various products to reduce operational risks caused by weakening market demand for mature products. In the future, the company will continue to cooperate with customers and use various OEM processes and machine improvement technologies to strengthen its advantages in quality, cost and delivery time to cope with rapid market changes and competition among peers. |
| governance | operational risk | Information security risks | In terms of information security risk control, the company has formulated a "computer work cycle" to standardize the company's information security, establish and maintain a safe information system environment, and has also developed a comprehensive system for Internet and email use, password settings, Develop relevant information security management policies for software downloads, storage media, file backups, etc., actively monitor network traffic, and handle abnormal situations immediately. Information security education and training for employees are also conducted from time to time to promote and build crisis awareness. |
| environment | climate change risks | Climate change issues and related laws and regulations | In response to the increasing external emphasis on how companies manage sustainable development issues and their ability to respond to climate change, and in addition to regulatory requirements, the company established an ESG sustainable management team in 2023, which includes corporate governance, customer care, employee care, and environmental sustainability. Five groups on sustainability and social welfare formulate the company's sustainability strategy blueprint, promote corporate ESG sustainability affairs, and gradually achieve the company's sustainability goals. In addition, the company assesses the scope of the climate change issue and conducts a greenhouse gas inventory in 2023 in accordance with the GHG protocol. It will plan related management and reduction work in the future, hoping to effectively reduce greenhouse gas emissions and reduce the impact of climate change on the environment. |
| society | Brain drain risk | Domestic and foreign semiconductor companies have increased demand for talents, resulting in the risk of brain drain | Through the technical inheritance of senior technical personnel, case studies and internal education and training, the company has established a technical personnel training mechanism to reduce the impact of personnel changes, while recruiting outstanding talents to build a strong technical team. We are committed to providing a good working environment and enhancing employees' centripetal force. |
