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Letter from the Chairperson

Unimicron deeply recognizes that sustainability is a necessary ingredient for innovation, integrity and inclusion, and a driving force to help stakeholders create value. By actively integrating the strengths of the industry chain and aiming to solve sustainability issues, we are committed to becoming a World-Class PCB Leader.

Looking back to 2022, the environment is full of changes and challenges that will test the resilience of enterprises’ operations and capabilities to manage sustainability. In the face of challenges such as interest rate hikes, inventory adjustments, the Russia-Ukraine war, inflation and geopolitics, we continue to work with our customers in the area of high-end carrier technology and production expansion, and continue to refine our product portfolio and improve yields. With the concerted efforts of all employees, we will achieve remarkable operating results in 2022, with the consolidated revenue of NT$140.489 billion, an increase of 34% over 2021, and the consolidated net income of NT$31.226 billion, an increase of 131% over 2021. The total market capitalization reached NT$260.9 billion, a 32% increase over 2021, setting a new record for the Company. Over the years, Unimicron has been operating in a stable and solid manner, emphasizing communication with stakeholders and contributing to the environment and society, and has established a Corporate Social Responsibility Committee (CSR Committee) since 2011 to take root in sustainable actions. In recent years, ESG has become an important topic in the field of social responsibility and in the capital market. Therefore, Compay renamed the CSR Committee to ESG Committee in 2021, continuing to adopt a sustainable and innovative mindset to focus on social responsibility, corporate governance, and possible risks and opportunities in response to the love of the Earth, employees, and shareholders.
Due to the impact of long-term carbon emissions on the Earth's extreme climate and the unstable domestic supply of water and electricity in Taiwan, it is very important for companies to show their green power by reducing carbon, mitigating climate change, and integrating sustainability issues in their business strategies, finding a balance between humans and nature. In order to pursue the goals of stable power supply, diversified power sources, and energy saving and carbon reduction, the Board of Directors of Unimicron approved the establishment of an innovative energy project of "hydrogen fuel cell" in 2022, together with the plans of "improving energy efficiency" and "installing energy storage and solar photovoltaic" to reduce the greenhouse gas emissions caused by operations. In addition, in line with the government's policy, Unimicron is doing its best to create a green environment and has been awarded the "Taoyuan Green Procurement Outstanding Enterprise". In the future, the Company will continue to work together with suppliers to build a strong competitive supply chain and encourage its employees to participate in energy saving, mitigation, waste reduction, tree planting, and beach cleaning activities, in order to move towards the goal of "carbon neutrality by 2050." Employees are the backbone of enterprises. For our employees, we provide excellent compensation and benefits (e.g. 2022 salary increase and bonus), the principle of equal employment, a safe workplace environment, care for employees' physical and mental health, and career development opportunities to build a harmonious employee relationship so that employees can grow together with the company. In recent years, the declining labor force due to the low birth rate and aging has highlighted the importance of maternal health protection. In 2022, Unimicron received the "National Healthy Workplace - Maternal Health Friendly Award" for implementing comprehensive maternity protection measures. In addition, Unimicron promotes social welfare, emergency relief activities and various public welfare activities with the concept of "what is taken from the community and what is used in the community". At the same time, the paid volunteer leave mechanism encourages employees to engage in community care and participate in public welfare activities, so that each employee can realize the essence of CSR in a natural way in their daily work, building an ESG culture together.

In terms of corporate governance, we have been upholding the corporate vision of “a world-class high-tech company with high added value, high quality, high productivity, and a focus on innovation and service” and “pursuing the satisfaction of customers, employees and shareholders and responsibility”. In the process of becoming a “world-class manufacturer leader”, we are committed to corporate citizenship, integrating CSR with our business strategy from our core values, enhancing our sustainable competitiveness, and continuously strengthening information transparency. The Company has also been recognized by the outside world and has been selected as a constituent of the MSCI Taiwan Index, the FTSE4Good TIP Taiwan ESG Index, TWSE Corporate Governance 100 Index, the TIP Taiwan Environmental Sustainability 50 Index, and the FTSE TWSE Taiwan 50 Index, etc. In addition, the Company has received five gold awards and two platinum awards from the Taiwan Corporate Sustainability Report Awards for the electronic manufacturing industry from 2016 to 2022, and our sustainability achievements have been repeatedly recognized by various sectors.

We continue to listen to the voices of our shareholders, customers, suppliers, employees, and other stakeholders and have included ESG in our business strategy. We have set five major goals for the period 2024 to 2026, including " Collaborate with customers to create blue ocean markets and products", " Establish A+ management team to build world-class competitiveness", " Make good use of digital operations to establish efficient and intelligent operations and services", "Agile Risk Management", and " Press ahead on ESG, care for the earth and company sustainability". The entire company is committed to breaking through the existing action plans and responding to the expectations of all sectors by strengthening the fulfillment of corporate social responsibility while the company continues to grow.

Facing a future full of opportunities and challenges, Unimicron will continue to be innovative and pragmatic, implement our ESG strategy, work together with our employees and upstream and downstream partners, respond promptly to the needs of our customers and the market, work together with the environment, and continue to achieve operational success, take care of our employees, give back to our shareholders and society, and make a positive impact! We expect to consolidate our competitive advantage and leading position in the industry.

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