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Letter from the ESG Committee Chairperson

The year 2021 was a year full of serious challenges, whether it was the COVID-19 pandemic or the issue of net zero carbon emissions to tackle climate change, both posed significant challenges to the operational resilience and sustainability of a Company's operations. In response to the COVID-19 pandemic, Unimicron immediately set up an inter-departmental command center to oversee the disinfection of factories at various locations, the health of employees, the supply of materials and transportation, and to actively adopt effective pandemic prevention measures-such as setting up a mask factory, providing factory cleanroom masks and protective masks for employees, offering incentives and encouragement to employees to get vaccinated, and purchasing rapid antigen tests-to reduce risks to our operations and ensure that operations remain uninterrupted. In the face of climate change and low-carbon transformation, we are challenging ourselves to reduce our carbon emissions by 25% by 2030, we continue to promote the full-scale adoption of LED lighting, energy-efficient motors and waste reduction, and we are planning the use of renewable energy, with the goal of achieving carbon neutrality by 2050. Together with our supplier partners, we pushed for the ESG sustainability activities and are dedicated to becoming a world-class leader in PCB.

With the rapid growth in 5G, artificial intelligence, AIoT and high-speed computing applications, we have continued to invest heavily in the IC carrier industry for three years in advance, and delivered remarkable results in our operating performance, with a net income of NT$13.5 billion, an earnings per share of NT$8.98, and an aggregate market value of NT$197 billion in 2021, setting a new record high. We are gradually implementing our corporate vision of becoming a world-class Company that is characterized by high value-added; high quality; high productivity; innovation and service; pursuit of customer, employee, and shareholder satisfaction; and being responsible.

As a corporate citizen, we know that ESG has become a concern for investors worldwide and the key to sustainable business operations. Looking back at our sustainability performance in 2021 :

In terms of the environment, we continue to use climate-related financial disclosure to manage relevant risks and opportunities in the face of climate change. In addition, we have set clear carbon emission targets, focusing on energy saving and waste reduction in production processes, equipment, and plant operations; we will continue to replace energy-consuming fluorescent lamps and motors, reduce water and electricity consumption, and manage waste; also, we are actively evaluating the introduction of green energy and energy storage facilities to improve electric power quality in our plants and to curb peak electricity consumption. In 2021, total greenhouse gas emissions per unit of revenue were 21% lower than last year. Our performance in water management has also improved significantly, with wastewater discharge intensity decreasing by 18% per unit of revenue and water recovery rate increasing by 4% compared to last year. In addition, we continue to work with multiple stakeholders, including investors, customers, NGOs, government agencies and suppliers, to protect the environment, and we were honored with the Taoyuan Outstanding Company in Green Procurement Award in 2021.

In terms of society, we have placed more emphasis on social issues in our management policies in recent years with the rise of social and human rights awareness. In terms of employee care, we have introduced employee assistance programs and continued to enhance occupational health and safety to proactively protect the physical and mental health of all Unimicron employees. This year, we have invested about 300 million NT dollars in occupational health and safety, and we have been honored as a model business unit by the Taoyuan Municipal Government Maternal Health and Care Alliance.

In terms of social care, we continue to uphold our principle of giving back to society what we take from it, and to promote social welfare and emergency relief programs that focus on three aspects: local participation, care for disadvantaged groups, and diversity and equality. In 2021, we increased our social investment by 60% compared to last year to achieve greater impact.

In terms of driving sustainability governance, we have a review mechanism that regularly examines and reviews our overall sustainability strategy, direction and goals as well as proposes improvement measures for items that have yet to meet standards both domestically and internationally every six months. This is done to strengthen our sustainability strategy in order to ensure that our sustainability foci and commitments are fully implemented. In 2021, we were listed, as we did in the years before, on the MSCI Taiwan Index, the FTSE4Good TIP Taiwan ESG Index, and the TWSE RA Taiwan Employment Creation 99 Index; we have also been given the Gold Award or other awards of higher esteem at the Taiwan Corporate Sustainability Report Awards for eight consecutive years.

In the rapidly changing post-pandemic and net-zero era, we will continue to research and develop blue ocean products, enhance our capabilities for new technologies and development, optimize our product portfolio, promote key smart processes, cultivate talents, integrate ESG into our business policies, maintain good communication with internal and external stakeholders, extensively learn and analyze ESG trends, implement ESG strategic plans, ensure the success of our ESG strategy through the supervision of our board of directors, and fulfill UN sustainable development goals.

By linking all these dots, we will incorporate the DNA of ESG throughout Company, make progress alongside society, exert influence in promoting sustainability, and become a world-class leader in our sector.

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