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Materiality Analysis
and Stakeholder Engagement

Materiality Analysis

ESG encompasses diverse and evolving issues. To ensure effective stakeholder communication and reflect the impact on governance, environment, and society, we conduct regular material analyses, update sustainability issues, and address stakeholder feedback annually. We adhere to GRI 2021 (GRI Standards) for identifying material topics, data boundaries, and stakeholders, enhancing operational resilience and sustainable value.

Identification
Step 1 Identify Stakeholders/ 9 Categories of Communication Subjects

Unimicron uses the AA1000 SES (2015) “Stakeholder Engagement Standards” to identify stakeholders based on dependency, responsibility, tension, influence, and diverse perspectives, using a five-point scale. We recognize 9 stakeholder types. The ESG Committee assessed stakeholder significance, identifying customers, government agencies, employees, suppliers/contractors, investors/shareholders, media, community/NGOs/NPOs, industry, and academic institutions.

Step 2 Identify the Actual and Potential Impacts/ 19 Sustainability Issues

To ensure comprehensive issue coverage, Unimicron referenced international sustainability standards (MSCI, SASB, GRI Standards), the UN Sustainable Development Goals (SDGs), corporate governance requirements, last year’s concerns, domestic media issues, 2023 international trends, media and legal incidents, and professional consultants’ input. This process identified 19 key issues relevant to Unimicron for further evaluation.

Analysis
Step 3 Investigate the level of Concern of Stakeholders/ 102 Stakeholders

An online questionnaire was distributed to the stakeholders identified in Step 1 to assess their level of attention to various sustainable issues, and a total of 102 valid questionnaires were collected.

Step 4 Identify the Impact of Sustainability Issues/ 17 Units Participated in the Assessment

17 units reviewed laws and regulations, management systems, internal audits, redress mechanism feedback, and media reports to identify actual and potential impacts—both positive and negative—on sustainability issues to assess the impact boundaries on the value chain and the degree of involvement.

Step 5 Assess the Significance of the Impacts / 19 Sustainability Issues

Based on the “Likelihood” and “Significance” defined by risk management, Unimicron measures the positive/negative impact scores of sustainability issues on the economy, environment, and people (including human rights), respectively, and judges the impact of sustainability issues.

  • The “Likelihood” scale is defined as Never, seldom, sometimes, generally, and always.
  • The “Significance” and “Scale and Scope” are defined as Minor, mild, moderate, major, and extreme.
Confirmation
Step 6 Ranking of Material Topics and Disclosures/ 14 Material Topics, 5 Minor Topics

Based on the above results, the assessment of material issues (including SASB industry-specific standards and external operational concerns), stakeholder concerns (including the level of concern and high concern issues), and level of significance of impact, the ESG Committee’s key policies, are used for determining material topics. After summing up the respective quantitative scores, the ESG Committee confirmed 14 material topics and 5 minor issues in 2023, then prioritized the material topics and described differences from the previous year, as the basis for reporting the policies, mechanisms, implementation, and performance.

Survey for Sustainable Issues and Results of Identification

Unimicron understands the level of stakeholders’ attention to ESG issues by “Unimicron ESG Survey on material topics”. A total of 102 valid feedbacks were collected in 2023. The analysis shows that stakeholders' top two topics of concern are Business Ethics and Chemical Safety, followed by Technology and R&D, Product Safety and Quality, and the level of concern for all issues is higher than 3 points (on a 4-point scale). Unimicron’s 17 units referred to laws and regulations, management systems, internal audits, opinions from the appeal mechanism, and media reports, to identify the actual/potential, positive/negative impacts and timeframe of impacts on sustainability issues, and to assess the impact boundary on the value chain and the degree of involvement.

Contributing to the Impact; Causing to the Impact; Being Directly Linked to Impact

AspectTopicsThe Concerns of StakeholdersImpactsBoundariesSDGs
SignificanceTime FrameSupplierUnimicronCustomerInvestor/ShareholderCommunity
GovernanceCorporate Government3.58Potentiallong-term
Business Ethics3.71Potentialshort-term
Customer Relationship Management3.61Actualshort-term
Technology and R&D3.68Actualmedium-term
Product Safety and Quality3.64Actualshort-term
Sustainable Supply Chain3.57Actualshort-term
Information Security3.61Actualshort-term-
EnvironmentalWater Resource Management3.54Actuallong-term
GHG Management3.50Actuallong-term
Energy Resource Management3.63Potentiallong-term
Waste Management3.60Actualmedium-term
Chemical Safety3.71Actualshort-term
Climate Change Management3.38Actuallong-term
Biodiversity3.31Potentialshort-term
SocialOccupational Safety and Health3.63Actuallong-term
Talent Attraction and Retention3.59Actualshort-term-
Employee Development and Training3.58Actualshort-term----
Human Rights3.63Actualshort-term---
Social Engagement/Community Relations3.16Actualmedium-term

Significance of the Material Issues

Based on the “Likelihood” and “Significance” defined by risk management, Unimicron measures the positive/negative impact scores of sustainability issues on the economy, environment, and people (including human rights), respectively, and judges the impact of sustainability issues.

Ranking of Material Topics and Minor Topics

Based on the results, including SASB industry standards, external concerns, and stakeholder concerns (including the level of concern and high concern issues), impact significance, and the ESG Committee key policies to determine material topics. After summarizing quantitative scores, the Committee identified 14 material topics and 5 minor topics for 2023, prioritized these topics, and noted changes from the previous year to guide reporting on policies, mechanisms, implementation, and performance.

Material Topics GRI Standards/Specific TopicsMaterial sustainable development issuesStakeholders’ concernsSignificance of the impact of sustainability issuesKey policies of the ESG CommitteeSortTypeNotesChapter / Page
GHG ManagementEmissions 1GHG Emission
Waste Management Waste 2Waste Management
Chemical Safety Unimicron Specific 3Green Product
Talent Attraction and Retention Market Presence, Employment, Employee Diversity and Equal Opportunity 4Talent Attraction and Retention
Corporate Government Unimicron Specific-5Corporate Government
Product Safety and Quality Unimicron Specific -6Quality Management
Occupational Safety and HealthOccupational Health and Safety 7OSH Management
Energy Resource Management Energy-8Energy Management
Sustainable Supply ChainProcurement Practices 9Sustainable Supply Chain
Water Resource ManagementWater and Effluents--10Water Management
Climate Change Risk ManagementEconomic Performance--11TCFD Implementation
Human Rights Labor/Management Relations, Non-Discrimination -12Human Rights
Customer Relationship ManagementUnimicron Specific-13Customer Services
Social Engagement/Community RelationsLocal Communities-14Public Welfare Investment
Business EthicsAnti-Corruption and Anti-Competitive Behavior--15Ethics and Integrity
Technology and R&DUnimicron Specific--16Technology and R&D
Employee Development and TrainingTraining and Education--17Career Development
BiodiversityBiodiversity--18Social Participation
Information SecurityCustomer Privacy-19Information Security

Note: Material Topics、 Minor Topics.

Stakeholder Engagement

Customers
To be the best partner, we are committed to delivering high-quality products and services, and fostering satisfactory and trusting customer relationships.
Key IssuesKey Concerns in 2023Engagement Type and Frequency2023 Communication Statistics2023 Performance
Product Safety and Quality
  • Quality Management Process and Testing Methods
  • Quality complaint service handling
  • Quarterly: Review ratings
  • Semi-annual: Satisfaction Survey
  • Aperiodic: Questionnaires, on-site audits, meetings, document
  • Joined 727 quality meetings.
  • 102 Satisfaction Surveys.
  • Replied to 113 questionnaires and participated in 145 audits.
  • The Carrier SBU and PCB SBU have improved production technology and product quality, reducing the number of major defects by 47 cases compared to 2022.
  • Carrier SBU achieved a customer satisfaction score of 4.11,PCB SBU reached 4.62.
  • 0 critical deficiencies in ESG/RBA audits.
Technology and R&D
  • R&D of energy-saving and low-carbon processes and products
  • High-end, high-heat dissipation product technology
  • Periodic, Aperiodic: customer meetings
  • Participate in customer meetings: The frequency of meetings varies by project.
  • The annual R&D expenditure was NT$ 4.92 billion to strengthen environmental protection and high-end processes.
  • In line with next-generation semiconductor advancements, we are advancing Carriers, PCBs, and high-power diodes, developing high-end processes, and collaborating with customers to expand product applications.
  • Low-carbon products developed in collaboration with customers include: dry process R&D, 2.1L embedded circuit substrate carriers, self-adhesive copper foil, high-power product manufacturing processes, embedded high-end components in thin packages, and diode cooling systems.
  • Diode technology: Integrated aluminum surfaces with TBF buildup films and collaborated with customers to create high-end components featuring thinned, embedded packages.
Climate Change Risk, GHG and Energy Resource Management
  • Climate Change Risk and Opportunity Assessment
  • GHG Emission Management
  • Energy Resources Management
  • Aperiodic: Questionnaire, on-site audit, RBA platform, sustainable supply chain platform
  • Replied to 60 questionnaires.
  • Participated in 15 audits.
  • Participated in 15 meetings.
  • Responded to CDP carbon disclosure questionnaire to 8 customers.
  • Completed the installation of the first hydrogen fuel cell.
  • Completed GHG inventory and verification of 11 plants in Taiwan and 5 subsidiaries in China.
  • Committed to energy conservation by introducing energy-saving production facilities, with a power usage intensity of 17.
  • To reduce carbon emissions by 8% in 2025 and by 30% in 2030 from the estimated peak, achieve carbon neutrality by 2050.
Water Resources Management
  • Water Recovery and Recycling
  • Wastewater Treatment and Discharge Management
  • Aperiodic: Questionnaire, audit, sustainable supply chain platform
  • Replied to 60 questionnaires.
  • Participated in 15 audits.
  • Responded to CDP water safety questionnaire to 4 customers.
  • Completed the annual CDP-water disclosure.
Raw Materials
  • Raw Material Recycling
  • Responsible Mineral Purchasing
  • Aperiodic: customer training, regulation updates, questionnaires, audits, sustainable supply chain platform, Conflict Minerals Reporting Template
  • 3 RBA VAP audits.
  • Reported more than 500 data by conflict minerals template to customer.
  • In 2023, the proportion of Potassium Gold Cyanide purchased from recycled gold for the Taiwan factories was 14%.
Risk Management
  • Risk Management and Contingency Plan
  • Aperiodic: Questionnaires, on-site audits
  • Responded to 10 questionnaires and participated in 6 audits.
  • Annual risk assessment was completed, and there is no major risk.
Occupational Safety
  • OSH Management System Certification
  • Accident Prevention and Emergency Response Measures
  • Aperiodic: Questionnaire, on-site audit, RBA platform, sustainable supply chain platform
  • Replied to 48 questionnaires.
  • Participated in 17 audits.
  • Participated in 6 meetings.
  • Maintained the effectiveness of the OSH management system and completed third-party verification.
  • Continued to implement the daily management of industrial safety (three reality principles and project audits), and there are no major deficiencies.
Chemical Safety
  • RoHS/REACH SVHC Regulation
  • Hazardous Substance Free Guarantee
  • Hazardous Substance Disclosure Requirements
  • Hazardous Substance List and Reduction Management
  • Daily: Hazardous Substance Survey Forms
  • Aperiodic: Non-use guarantee letter, meetings, audits, RBA platform, sustainable supply chain platform, third-party testing report, and supplier hazardous substance surveys (RoHS, REACH, CA65, GADSL).
  • Completed 1,319 hazardous substance surveys with 100%.
  • The OSH Division responded to 48 questionnaires and participated in 4 audits and 2 meetings.
  • 100% of products meet the customer’s hazardous substance management requirements.
  • Conducted 4,664 finished product XRF inspections with a pass rate of 100%.
  • Customer satisfaction with HSF quality higher than the target of 4.4 points, reaching 4.7 points.
Information Security
  • Information Security and Privacy Protection
  • Information Security Drill
  • Aperiodic: Customer audit and security evaluation
  • Participation in 29 audits.
  • The average of key customers in information security maturity evaluation was 99 points.
  • Enhanced protection for 823 high-risk machines, implemented email encryption for 326 key suppliers, adjusted vulnerability scanning to a monthly cycle, and reported to the chairperson.
Government
Unimicron complies with the government's environmental regulations and implements them in its operations.
Key Issues Key Concerns in 2023Engagement Type and Frequency2023 Communication Statistics2023 Performance
Corporate Governance
  • Ethical Corporate Management and Compliance With Laws and Regulations
  • Strengthened the Disclosure of Sustainability-Related Financial Information
  • Aperiodic: Official documents, seminars
  • Annual: Corporate Governance Evaluation
  • No penalization for violations.
  • Corporate government evaluation 6%~20%.
  • No major penalties from competent authorities for violation of laws and regulations (over NT$ 1 million).
  • No incidents of corruption and anti-competitive practices.
Occupational Safety
  • Compliance With Fire and OSH Laws
  • Critical Occupational Safety or Fire Incidents
  • Attended OSH Seminars
  • Aperiodic: On-site audits, official documents, and seminars
  • Annual: Reporting, filing, and notification
  • Participated in 30 government seminars.
  • Completed 100% reporting and verification of occupational accident reports under regulations.
  • Completed 100% declaration and verification of priority chemical declarations under regulations.
  • Completed 100% factory declaration and verification of dangerous goods declaration under regulations.
  • The inspection, declaration, and verification of occupational safety and health, fire protection, and buildings are carried out by the regulations, and there are no illegal activities.
Climate Change Risk, GHG and Energy Resource Management
  • GHG Inventory
  • Enhanced Energy Usage Efficiency
  • Responded to the New/Amended Act of the Environment and Energy Resources
  • Aperiodic: Field audits, official documents, and seminars
  • Annual: Reporting, filing, and notification
  • Participated in 3 government seminars.
  • Completed 100% of the reporting and verification of energy efficiency indicators, and GHG inventory by regulations.
  • 12 plants completed the declaration of energy and energy efficiency indicators.
  • 9 plants completed the GHG inventory and registration.
Information Security
  • Improve Information Security Protection
  • Implementation of ISO 27001
  • Aperiodic: Official documents and seminars
  • Annual: System audit
  • Participated in 12 government and industry seminars.
  • Convened 24 Information Security Committee discussion meetings, producing 6 committee reports for presentation to the business group executives and the chairperson.
Water Resources Management
  • Water Recovery and Recycling
  • Wastewater Discharge Management
  • Aperiodic: Field audits, official documents, and seminars
  • Annual: Reporting, filing, and notification
  • Participated in 2 government seminars.
  • Complete 100% of the reporting and verification of production capacity and temporary storage by regulations.
  • The water recycling rate is 29%, and the annual water conservation rate is 6,538 million liters.
  • The discharge water is below the approved standard of local laws and regulations.
Waste Management
  • Waste management and improved resource utilization
  • Recycling
  • Aperiodic: Field audits, official documents, and seminars
  • Annual: Reporting, filing, and notification
  • Participated in 2 government seminars.
  • Complete 100% of the reporting and verification of production capacity and temporary storage by regulations.
  • Waste Generation Intensity is 0.91.
  • Waste recycling rate of 90%.
  • No waste leakage incidents occurred.
Employees
Talent is the foundation of Unimicron's sustainable development and one of our most important assets.
Key Issues Key Concerns in 2023Engagement Type and Frequency2023 Communication Statistics2023 Performance
Human Rights
  • Work Hour Management
  • Smooth Communication
  • Aperiodic: Internal supervisor, physical mailbox, Email box, training courses, satisfaction survey, website/bulletin board, complaint mailbox/lines, health management center, and health promotion activities
  • Quarterly: Labor-management meetings, welfare committee, training committee
  • A total of 834 cases reported from employees were received in Taiwan and Mainland China, of which 100% of the cases were handled, responded to, and closed.
  • Completed the annual human rights risk assessment.
  • 12,927 employees participated in human rights-related training.
  • No occurrence of incidents endangering human rights.
Talent Attraction and Retention
  • Diversified Benefits
  • Compensation and Performance
  • Held 77 labor-management meetings in Taiwan and Mainland China.
  • 3,741 employees of Unimicron responded to the engagement survey, with a response rate of 88%.
  • The retention rate of outstanding engineers in Taiwan and Mainland China is 92%.
  • The Company values employee diversity, and has hired 170 people with disabilities in Taiwan.
Employee Development and Training
  • Comprehensive Training System
  • Diversified Training Programs
  • Unimicron organized a total of 26 education and training sessions, with 990 participants.
  • Overall satisfaction of Unimicron education and training courses have a 90.34% overall satisfaction.
Occupational Safety
  • Disaster Prevention and Management
  • 48,515 people from all plants of Unimicron participated in the safety awareness campaign, and NT$ 298,000 gift vouchers were awarded.
  • In the second phase of safety and health proposal improvements, 33 cases were received, and NT$ 90,000 in gift certificates were awarded. The third phase received 30 cases, with NT$ 87,000 in gift certificates granted.
  • Awarded as an excellent company in the “2023 Healthy Workforce Sustainability Pioneer Enterprise” by the OSH Administration, Ministry of Labor.
Suppliers / Contractors
Collaborate with suppliers to promote ESG and enhance supply chain value.
Key Issues Key Concerns in 2023Engagement Type and Frequency2023 Communication Statistics2023 Performance
Occupational Safety
  • OSH Management Measure and Regulations for Contractors
  • Fined for Violation of OSH Regulations
  • Aperiodic: Audit and training
  • Organized 302 supplier/contractor education and training sessions, trained 11,180 participants.
  • We joined the project from OSH Admin., Ministry of Labor and invited 61 suppliers to self-assess health and safety performance. To support suppliers in recognizing their positioning, advantages, and risks for fostering long-term cooperation strategies.
Sustainable Supply Chain
  • Suppliers Must Ensure the Compliance of RBA CoC and Customer Requirements
  • Aperiodic: Supplier management platform, signing of Supplier Corporate Social Responsibility Letter of Commitment
  • Periodic: Training and sustainability audit
  • Conducted sustainability audits on 64 suppliers in Taiwan and Mainland China, and tracked the implementation of supplier improvement plans.
  • When products shipped in Taiwan contain conflict minerals (3TGs), suppliers must provide conflict mineral templates compliant with RMAP or obtain certification from a third party. By 2023, 15 conflict mineral smelting plants met our conflict mineral management requirements.
  • 97% of suppliers from Taiwan and Mainland China have signed Corporate Social Responsibility Commitment.
  • All smelters and refineries of 3TGs used in Taiwan have obtained RMAP certification and meet RBA requirements.
Chemical Safety
  • Raw Material Quality Requirements
  • Unimicron's HSF Requirements
  • Periodic: Supplier management platform
  • Aperiodic: Non-use (banned/restricted substances) guarantee letter, third-party testing report, supplier hazardous substance survey (RoHS, REACH, CA65, GADSL, etc.)
  • Managed and reviewed 2,030 supplier RoHS reports in Taiwan.
  • The Taiwan PCB and Carrier SBU cooperated with customers in hazardous substance surveys and conducted 732 supplier surveys with a response rate of 100%.
  • Declaration of 100% response to the Hazardous Substances Questionnaire/REACH Declaration of Conformity.
  • 100% pass rate of suppliers’ third-party testing report.
Shareholders/Investors
Investors and shareholders provide capital, which is the strength of Unimicron's steady growth.
Key Issues Key Concerns in 2023Engagement Type and Frequency2023 Communication Statistics2023 Performance
Corporate Governance
  • Information Disclosure: Enhancing Investors’ Insight into Company Operations
  • Major Violations
  • Aperiodic: Investment forums, market observation post system, conferences
  • Annually: Shareholders' meeting, annual report, ESG report
  • Semi-annually: Institutional Investor Conference
  • Quarterly: Financial reports
  • Participated in 22 external meetings or self-regulation briefings, plus interviews with investment companies, totaling more than 200 meetings.
  • Held 1 shareholders annual general meeting.
  • Corporate government evaluation 6%~20%.
  • Continues to be a constituent of the TWSE Corporate Governance 100 Index, the MSCI Taiwan Index, and the TWSI Taiwan Sustainability Index.
Climate Change Risk, GHG and Energy Resource Management
  • Climate Change and Carbon Emission Impacts on Operations and Strategy
  • Market Observation Post System, Annual Report, ESG Report.
  • Completed CDP climate change information disclosure on the Market Observation Post System, Annual Report, and ESG Report.
Water Resources Management
  • Water Risk Management
  • Market Observation Post System, Annual Report, ESG Report.
  • Completed CDP climate change information disclosure on the Market Observation Post System, Annual Report, and ESG Report.
Community/NGOs/NPOs
Based on the concept of "taking from society and giving back to society", we listen and respond to the community and cooperate with NGOs/NPOs to contribute to the community and enhance social influence.
Key Issues Key Concerns in 2023Engagement Type and Frequency2023 Communication Statistics2023 Performance
Climate Change Risk, GHG and Energy Resource Management
  • GHG Inventory and Verification
  • Planning for Renewable Energy Use
  • Aperiodic: Official documents, questionnaires, meetings (e.g., briefings, workshops, seminars, etc.)
  • Participated in 6 seminars.
  • Completed GHG inventory check-related operations as scheduled, such as inventory result registration, CDP climate change information disclosure, and more.
Occupational Safety
  • Accident Prevention Management
  • Participated in 5 sessions of occupational safety-related meetings of TPCA.
  • Participated in 6 meetings of the Taiwan OHSMS Northern Promotion Association.
  • Serve as the convener of the EHS Committee of TPCA, discussing and implementing OSH guidelines and projects for the PCB industry.
  • Assisted TOSHMS Northern Promotion Association with project execution and joined observation activities.
  • Published one article on OSH in the monthly industrial safety and health magazine.
Social Engagement/ Community Relations
  • ESG Information Exchange
  • Public Service Activities
  • Charitable Donations, Meal Delivery for the Underprivileged, Volunteers for Repair, Food and Agriculture Education
  • Aperiodic: ESG committee mailbox, association meeting, official documents/questionnaires, Unimicron ESG website
  • 3 meetings with the community/NGO/NPO.
  • Organized and maintained 40 community relations.
  • Organized and participated in internal and external environmental education activities.
  • Volunteer services totaled 10,873 man-hours, with 32,889 beneficiaries from welfare activities.
Industry
Keep track of new strategies of peers, identify external opportunities and risks, and jointly enhance overall industrial competitiveness.
Key Issues Key Concerns in 2023Engagement Type and Frequency2023 Communication Statistics2023 Performance
Business Development
  • Many PCB Manufacturers Have Set up Plants in Thailand
  • Periodic: Participate in Association meetings and events
  • Joined 27 associations and organizations.
  • During the conference, participants will gain experience, keep abreast of industry trends, and understand the innovative application of future technology and economic development. This will s the Company’s management policy in the future.
Media
Establish a good relationship with the media, report the Company’s information in a balanced manner, and build a good organizational image.
Key Issues Key Concerns in 2023Engagement Type and Frequency2023 Communication Statistics2023 Performance
Corporate Governance
  • Operational Performance
  • Major Events
  • Periodic: Release of Revenue Information
  • Aperiodic: Release of significant operational information
  • Aperiodic: Respond to media
  • Revenue information release: 12 times.
  • Release of material operational information: 104 times.
  • ESG news released: 45 articles.
  • Regularly and irregularly issuing press releases on the Company’s website to explain the current status and future development of the Company’s operations.
Academic Institutions
We collaborate with academic institutions to develop new technologies, and through industry-academia cooperation strengthen our patent and nurture R&D talents.
Key Issues Key Concerns in 2023Engagement Type and Frequency2023 Communication Statistics2023 Performance
Technology and R&D
  • Low Carbon Innovative Technologies
  • Aperiodic: Seminars
  • Monthly: Collaborative Project Meetings
  • Quarterly: Collaborative Project Meetings
  • 7 conferences held at National Tsing Hua University.
  • 12 National Taiwan University collaboration project meetings.
  • 4 Yuan Ze University collaboration project meetings.
  • Develop long-term research collaborations with National Taiwan University, National Tsing Hua University, and Yuan Ze University, with a total investment of NT$ 17.55 million.
Talent Attraction and Retention
  • Industry-Academia Collaborative Research Project
  • Cooperative Education Program
  • Summer Internship Program
  • As needed: Unimicron Website
  • Annually: Campus Recruiting Events, Industry-Academia Cooperation Program, Summer Internship Program
  • Unimicron organized 11 campus talent exposition.
  • Unimicron organized 4 industry academia collaboration projects, partnering with 12 institutions and engaging 108 students.
  • Actively participate in applied research in academia to cultivate corporate research and development potential and talents.
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