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Statement from the Chairman

"While pursuing operational growth, Unimicron deeply recognizes that sustainability is a necessary ingredient for innovation, integrity, and inclusion, as well as a driving force to help stakeholders realize value creation. Therefore, we hope to combine the strengths of our industry chain to jointly face sustainability issues and seek solutions to become a world-class PCB leader."

Dear stakeholders,

The impacts of the COVID-19 pandemic, the China-United States trade war, changes in raw material prices and exchange rate changes in 2020 have added many uncertainties to the global economy, but the booming electronics-related industries with the huge business opportunities of 5G, High Performance Computing (HPC), Artificial Intelligence of Things (AIoT) and big data development continue to drive the growth in the PCB industry. Our operations set new records in 2020 with net income after-tax of NT$5.462 billion, earnings per share of NT$3.74, and a market capitalization of NT$94.6 billion, a record high for years.

In addition to the outstanding operating results, Unimicron has also made some achievements in sustainability. Unimicron has been selected as a constituent stock of the "Taiwan Employment 99 Index" and the "Taiwan Sustainability Index" in 2020, and has become the first PCB manufacturer in Taiwan to achieve platinum certification under the Water Stewardship Standard (AWS Standard). The Company has also been awarded the Gold Award or higher in the Corporate Sustainability Report for seven consecutive years, which is a testament to our efforts and persistence in sustainability.

In addition, we continue to strive for sound governance, environmental sustainability and social inclusion, and attempt to simultaneously disclose industry indicators through the Sustainability Accounting Standards Board (SASB). In terms of R&D innovation, we have increased our R&D expenses year by year in recent years, up 51% from the previous year; the number of patents granted has reached 90, also up from 2019, and we will invest NT$12 million in 2020 to jointly develop new high-frequency and high-speed technologies with ITRI to drive industrial innovation. In terms of environmental sustainability, in addition to achieving AWS Platinum certification, we have introduced Task Force on Climate-related Financial Disclosures (TCFD) to identify the opportunities and risks associated with climate change and to analyze the transformation scenarios and financial impacts. At the same time, wastewater treatment efficiency continued to improve, with discharge intensity per unit of revenue reduced by approximately 2% compared to the previous year. In terms of social inclusion, we continue to invest a lot of resources internally to provide a more satisfying work environment for our employees, and evaluate the return on investment in training resources, while the retention rate of unpaid parental leaves has increased by 4.22% compared to the previous year, and the number of people under ergonomic hazard prevention and control has reached 12,092. We have also received the Sports Enterprise Certification from the Sports Administration and the National Occupational Safety and Health Award - Enterprise Benchmarking Award in 2020.

In order to deepen sustainable development to the core of our operations, we have set long-term goals and defined six SDGs, development strategies and performance indicators related to Unimicron's core competencies. In order to meet the six SDGs, Unimicron will continue to reduce emissions and waste from production and operations to protect the natural ecosystem; establish a climate change adaptation program to help the city adapt to climate change and recover from disasters; develop green and sustainable products to mitigate the impact of climate change, set greenhouse gas reduction targets, improve energy efficiency, and mitigate the negative impact of the greenhouse effect on the ecosystem. We actively work with community partners to reduce the harmful impact of urban areas on the environment, implement green procurement, implement sustainable supply chain management, enhance our ability to negotiate with customers, and assist our suppliers in continuously improving and monitoring operational disruptions that may be caused by climate change risks. We establish long-term partnerships with suppliers with excellent environmental performance, require important suppliers to cooperate with the audits under the RBA Code of Conduct, and provide guidance to suppliers to meet the RBA and other supply chain management requirements.

Note: Unimicron supports Sustainable Development Goals (SDGs) which include SDG 11, SDG 12, SDG 13, SDG 15, SDG 16, SDG 17.

Chairman,Unimicron Tzyy Jang (T. J.) Tseng
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