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Materiality Analysis

Materiality Analysis

In order to achieve effective communication between the Report and stakeholders, and to respond to the impact of the operation process on governance, the environment and society, Unimicron has formulated the Operational Procedure for Preparation of the Sustainability Report, identified the major themes and boundaries data collection of this year's sustainability report, stakeholders, etc., to strengthen the Company's operational resilience and sustainable value.

Identification of Stakeholders7 Key Stakeholders
Unimicron has identified key stakeholders, customers, governments, suppliers/contractors, employees, investors/shareholders, community/NGOs/Non-Profit Organizations and academic institutions, based on the five quantitative aspects of the AA1000 SES: 2015 Stakeholder Engagement Standard, including dependency, responsibility, tension, influence and diverse perspectives.
Collection of Sustainability Issues43 Sustainability Issues
In order to ensure the completeness of the issues covered and to fully understand the issues of concern to our stakeholders, we made reference to international sustainability standards (MSCI, SASB, GRI), SDGs, the issues of concern to Unimicron in the previous year, corporate governance evaluation requirements, and stakeholder feedback, etc., for the relevant responsible unites to conduct discussions and identification of each issue, and consulted with external consultants to identify 43 sustainability issues and summarize them into 18 issues.
Investigate the Concerns of External Stakeholders85 Stakeholders
85 stakeholders' opinions on sustainability issues were collected from online survey as defined in Step 1.
Identify the Impact of Sustainability Issues16 Units Participated in the Internal Impact Assessment
There are 16 units to identify the impact of sustainability issues, the time frame of the impact, and assess the impact boundaries to the degree of involvement in the value chain.
Assess the Significance of the ImpactsAssess the Significance of the Impact of the 18 Material Topics
The 18 Material Topics have assessed the impact on the economic, environment and people (human rights), in terms of "severity" and "frequency of occurrence" by each responsible unit with references such as regulatory/legal requirements, management systems, internal audits, opinions from grievance mechanisms and media.
Prioritize the Most Significant Impacts for Reporting17 GRI Topics, 5 Specific Topics
Based on the impact assessment results, the ESG Committee identified a total of 18 major themes for this year. In accordance with the GRI Universal Standards, the ESG Committee prioritized the major themes and assigned them to 17 GRI standards themes and 5 Unimicron-specific themes to reveal the management approach, mechanism, implementation status and performance results of the major themes.

External Survey on Sustainability Issues and Results of Identification

Unimicron uses the questionnaire on ESG sustainable issues to understand the degree of concern of stakeholders on ESG issues. A total of 85 valid responses were collected in 2022. Analysis shows that the top two issues of concern to external stakeholders are Chemical Safety and Occupational Safety and Health, followed by Product Safety and Quality, Business Ethics, Information Security and Human Rights, and the degree of concern for all issues scored above 3 (on a 4-point scale). In addition, we used the impact assessment table to identify the impact situation and impact time of the 18 issues, and to assess the impact boundary and the degree of involvement of the value chain.

Aspect Topics The Concern of External Stakeholders Impacts Identification Boundaries SDGs
Actual Potential Time Frame Supplier Unimicron Customer Investor/Shareholder Community

Corporate Government 3.28 long-term
Business Ethics 3.45 short-term
Customer Relationship Management 3.36 long-term
Technology and R&D 3.22 medium-term
Product Safety and Quality 3.46 long-term
Sustainable Supply Chain 3.35 short-term
Information Security 3.38 short-term -

Water Resource Management 3.35 long-term
GHG Management 3.31 long-term
Energy Resource Management 3.28 long-term
Waste Management 3.35 medium-term
Chemical Safety 3.47 short-term
Climate Change Risk Management 3.18 long-term

Occupational Safety and Health 3.47 short-term -
Talent Attraction and Retention 3.28 short- and medium-term -
Employee Development and Training 3.31 short-term - - - -
Human Rights 3.38 short-term - - -
Social Engagement/Community Relations 3.07 long-term

Cause impact; Contribute to impact; Being directly linked to impact

Significance and Prioritize of the Material Topics

Each responsible unit evaluates the impact of the issues on the economy, environment and people by taking into account information such as regulatory/legal requirements, management systems, internal audits, opinions from the grievance mechanisms, and media reports to score the degree of impact and frequency of occurrence. At the same time, considering the degree of concern of stakeholders, the assessment results of major impacts, and the "dynamic" nature of sustainable issues, it listed 18 sustainable issues as Material Topics for 2022, and they were confirmed by the ESG Committee.

Aspect Material Topics GRI Standards/Specific Topics Implementation

Corporate Government Unimicron specific Corporate Framework
Business Ethics Anti-corruption and anti-competitive behavior Ethical Corporate
Customer Relationship Management Unimicron specific Customer Services
Technology and R&D Unimicron specific Innovative Technology R&D
Product Safety and Quality Unimicron specific Green Product
Sustainable Supply Chain Procurement practices Supply Chain Overview
Information Security Customer privacy Information Security

Water Resource Management Water and effluents Water Management
GHG Management Emissions GHG Emissions
Energy Resource Management Energy Energy Management
Waste Management Waste Waste Reduction
Chemical Safety Unimicron specific Green Product
Climate Change Risk Management Economic performance Implementing the TCFD

Occupational Safety and Health Occupational health and safety OSH Management
Talent Attraction and Retention Market presence, employment, employee diversity and equal opportunity Talent Attraction and Retention
Employee Development and Training Training and education Career Development
Human Rights Labor/Management relations, Non-discrimination Human Rights
Social Engagement/Community Relations Local communities Public Welfare Investment

Note: Above 21 scores are extremely high risk/opportunity; 13~20 scores are high risk/opportunity; 5~12 scores are medium risk/opportunity; and below 4 scores are low risk/opportunity.

Positive Impacts

Negative Impacts

Risk and Opportunities for Material Topics

We expect our corporate sustainability-related initiatives to have a positive impact not only on society but on revenue, costs, R&D innovation, customer satisfaction, and employee motivation. Therefore, we identify the impacts of each material issue on operations and sustainable development as part of our business decisions to move towards a sustainable future.

Aspect Material Topics Importance to Operations Potential Risk Potential Opportunity Strategies
Revenue Growth Cost Reduction R&D and Innovation Customer’s Satisfaction Employee Coherence

Corporate Government • Lose investors’ trust
• Lose potential customers
• Damage to reputation
• Gain investors’ trust
• Increasing the stability of customer cooperation opportunities
Improve corporate governance efficiency, continue to innovate and adhere to product quality, abide by all relevant regulations, and maintain stakeholders’ loyalty
Business Ethics • Increasing the risk of non-compliance with laws and decreasing stakeholder’s trust • Gain customers’ trust
• Enhance the Company’s positive image
Customer Relationship Management • The decline in customer satisfaction and order volume • Increase customer satisfaction and the order quantity
Technology and R&D • It needs to continuously improve its products, research and innovate product development according to customer needs, otherwise it will lose its competitiveness • Grasp market demand and technical trends, to gain customer trust
Product Safety and Quality • Product quality defects occur, resulting in customer dissatisfaction. If the return of goods resulting in a full refund, it will lead to the loss of orders • Grasp the status of customer satisfaction, gain customer trust, and enhance the positive image of the Company
Sustainable Supply Chain • Affect the goodwill of the Company and customers
• Increase handling costs for abnormal quality
• Delay in delivery time for abnormal processing
• Comply with customer requirements, improve customer satisfaction, and increase cooperation opportunities
• Reduce abnormal handling costs to reduce costs and increase revenue
Information Security • The trust and satisfaction of customers have decreased
• The leak of company and customer information
• Damage to reputation or loss of operations
• Increased customer trust and satisfaction

Water Resource Management
Water Resource Management • Increase the risk of non-compliance with laws and decrease stakeholder’s trust
• Fined by the authorities
• Reduce environmental pollution
• Enhancing corporate image
• Improve customers’ satisfaction
From the perspective of the whole life cycle, assess the impact of the operation process on the environment. Committed to slowing down the generation of pollutants in the value chain, optimizing the effective use of resources, and developing green products
GHG Management
Energy Resource Management
Waste Management • If there is no regular inspection of the outsourced removal/disposal firms, in case of violation of waste related regulations, not only the offending firm will be punished, but also the responsible person of the business, which is the source of generation, may also be at risk of being punished • Grasp and classify the waste generated in the production process, confirm the possibility of reuse in the factory, promote the sustainable circulation of materials, and reduce the cost of material purchase
Chemical Safety • Violate customer rules and regulations, resulting in a decrease in customer satisfaction and risk of compensation • Increase customer trust and satisfaction
• Enhance the positive image of the Company
Climate Change Risk Management • The government has announced the 2050 net-zero emission target. The Company needs to invest in the purchase of green electricity and other costs in response to low-carbon transformation, which will affect profits • Responding to the government's request that users with a contracted capacity of 800kW or more should have an annual electricity saving rate of 1%, achieve carbon emission reduction through the environmental and energy management system to reduce operating costs

Occupational Safety and Health • Affects customer orders
• Fined by the authorities
• Employees or contractors injured on the job
• Production interruptions due to fire or chemical accidents
• Gaining customers' trust
• Good corporate image
• Influence the performance of the industry in occupational safety and security
• Improving employee centripetal force and retention
Continue to interact with employees, provide a caring working environment, establish a complete and transparent training and retention system, and extend the concept of human rights to the entire Company
Talent Attraction and Retention • Operations were affected as production capacity could not meet customer demands
• Increased workload due to high turnover rate
• Knowledge and experience could be transferred effectively
• Improve employee engagement and promote operational growth
• Retained outstanding talents, creating more productivity and value
Employee Development and Training • Work efficiency cannot be improved
• Increase in a quality abnormal rate
• Loss of competitiveness in product technology
• The ability of talents can be enhanced to obtain leading opportunities and strengthen the Company's body
• Employees with Career Development and work quality can be continuously enhanced so that they could obtain the best functions to enhance personal and corporate productivity
Human Rights • Risk of non-compliance leading to fines and business interruption
• Decrease in corporate image
• Illegal violations occur
• Increased employee satisfaction and reduced turnover rate
• Improved corporate image
• Meeting customer expectations
• Increased employee motivation
Social Engagement/Community Relations • Impact on corporate image • The factory and community continue to engage in welfare activities to show our influence

:Highly Connected; :Moderately Connected

Stakeholder Communication

Issues Main Content in 2022 Possible Human Rights Impact Engagement Responses from Unimicron
Participation Consultation Information
Customers To become the best business partner for our customers, Unimicron strives to provide high-quality products and services to build a satisfactory and trusting relationship with our customers.
• Corporate Governance
• Risk Management
• GHG Management
• Occupational Safety and Health
• Energy Resource Management
• Water Management
• Human Rights
• Information Security
• Climate Change Risk Management
• Chemical Safety
• Risk management & contingency plan
• Requirements of RoHS/REACH SVHC
• Hazardous substances free guarantee for products
• Requirements for disclosure of hazardous substances in products
• Obtain OSH Management System certificate by third party
• Implement disaster prevention and emergency response measures
• GHG emission management measures
• Energy resource management measures
• The impact of the revised Environmental and Energy Resources Act on us
• Failure to properly manage commercial information and personal data and information of customers when dealing with customers. • Audit (As needed)
• Hazardous Substance Questionnaire from Customers (GM system, E-mail, daily)
• Certificate of Non-use for Hazardous Substances (GM system, E-mail, irregularly)
• Questionnaire Survey (As needed)
• Information Security Industry Association
• Information Security Assessment from Customer (As needed)
• Telephone /E-mail (Aperiodic) • RBA Platform (Annually)
• Documents Reviewed by Customers (As needed)
• Assess risk by following the "Risk Management Operating Procedures".
• Reply to customer survey form (regarding REACH) twice a year.
• Confirm the materials test report from 3rd party’s lab.
• Provide certification of Non-use for Hazardous Substances.
• Maintain the verification of the OSH management by 3rd party.
• Maintain regular operation of Fire-protection, life safety systems, and fire drills.
• Continue to implement occupational safety and project audits.
• Set GHG reduction plans and targets.
• Set energy resource management targets.
• Through industry exchanges and sharing, strengthen the blind spots of the Company's internal protection mechanism, and improve the level of information security assessment to meet customer requirements.
Government Unimicron complies with the environmental and corporate governance regulations issued by the Government and implements them in its operations.
• Corporate Governance
• Occupational Safety and Health
• Energy Resource Management
• Water Resources Management
• Human Rights
• Information Security
• Climate Change Risk Management
• Compliance with fire and OSH laws
• Critical occupational safety or fire incidents
• Participate in OSH seminars
• Reduce water usage
• Reduce energy consumption
• The occurrence of major OSH hazards will affect the physical and mental health of workers. • On-site Audit (As needed)
• Regular Reporting and Notification (As needed, annually)
• The Official Document (As needed) • Continue to operate and improve the occupational safety management system.
• Maintain regular operation of Fire-protection, life safety systems, and fire drills.
• Implementing inspection, registration and reporting of OSH, fire prevention, and buildings by following the regulations. Participate in seminars to understand the key of the law changes and revise the SOP.
• Conduct annual internal audits in each Plant, including occupational safety, fire safety, and accident audits, and correct deficiencies.
• Increasing water and energy efficiency and reduce consumption.
• Established in the 2nd quarter of 2022 with a Chief Information Security Officer and a dedicated information security unit (at least 2 personnel).
Suppliers/Contractors Collaborate with suppliers to promote ESG and enhance supply chain value.
• Corporate Governance
• Waste Management
• Occupational Safety and Health
• Human Rights
• Sustainable Supply Chain
• Climate Change Risk Management
• Chemical Safety
• Understand Unimicron’s requirement for hazardous substance free management
• Supplier compliance with customer or RBA code of conduct
• Fined for violating OSH laws
• If the supplier does not pay attention to labor human rights, it may cause illegal incidents, which will indirectly affect the goodwill of Unimicron, and affect the willingness of customers to place orders. • Supplier Management Platform (As needed)
• E-mail (As needed)
• Training Course (As needed)
• Audit (As needed)
• Promote suppliers to meet the requirements of the customer's or RBA Code of Conduct by Supplier Management Platform.
• Strengthen the control of hot work, increase the protection requirements according to the risk classification, and reduce the risk before/during/after the operation.
• Arrange to perform supplier RBA audit every year and track supplier improvement measures.
• Supplier Response to Hazardous Substance Survey Statement/REACH Compliance Statement.
• Chemical suppliers are required to provide SDS and GHS materials in Chinese and English, and contractors are required to participate in hazard notification training and agreement organization to reduce the risk of OSH.
Employees Talent is the foundation of Unimicron's sustainable development and one of our most important assets.
• Corporate Governance
• Occupational Safety and Health
• Water Resources Management
• Human Right
• Talent Attraction and Retention
• Employee Development and Training
• Comprehensive health management
• Whether the concentration of hazardous chemicals is harmful to health
• No occupational injured
• The actual implementation of accident response and evacuation
• Water risk management
• Chemicals leak, causing harm to employees’ health.
• Sexual harassment or workplace bullying.
• If overtime is not paid on time, it will affect labor rights and benefits.
• Health Management Center (Quarterly)
• Supervisors (Aperiodic)
• Employee Opinion Box(As needed)
• Website & Notice Board (As needed)
• Labor-Management Meetings (Quarterly)
• Welfare Committee (Quarterly)
• Training Course (As needed)
• Through various health promotion events and services, the physical and mental health of each employee is cared for, creating a friendly and safe workplace.
• Implement human rights management measures and related education and training, and provide diversified communication channels for employees.
• Increase requirements for high-risk facilities, machines, environment and operation inspections, to prevent machine operations, human operations and site setting errors.
• Have inter-departmental cooperation to strengthen the acceptance mechanism of new equipment to enhance the intrinsic safety of the machine.
• Add courses on professional and personnel dangerous operations, strengthen skill certification and operation qualification license operations.
• Establish an occupational safety news column and a proposal improvement system, so that employees can receive and brainstorm about occupational safety and health related issues anywhere, and enhance safety awareness.
• Optimize fire protection system and emergency response facilities, and implement maintenance management mechanism.
• Strengthen professional knowledge and capability training, improve the ability to respond to accidents, and reduce direct and indirect losses.
• Planning and conducting the environmental testing strategy regularly.
• Formulate water resources management plans and goals to strengthen water efficiency and cost down.
Shareholders/Investors Investors and shareholders provide capital, which is the strength of Unimicron's steady growth.
• Corporate Governance
• Water Resources Management
• Talent Attraction and Retention
• Climate Change Risk Management
• Chemical Safety
• Disclose information to external investors to understand the operation
• The impact of climate change and water risks on operations and related mitigation strategies
• Critical occupational safety incidents
• Major ticket violation
• The impact of carbon emissions and water risks on operations and related mitigation strategies
• If the information is not disclosed in accordance with the law, it will affect the investor's judgment and cause losses, and the investment rights and interests will be damaged.
• Failure to actively address environmental-related issues may affect people's basic human rights such as the right to work, the right to health, and the environmental right.
• Investment Forum (As needed) • Telephone /E-mail (As needed) • Shareholders’ Meetings (Annually)
• Institutional Investor Conferences (Half year)
• Annual Reports (Annually)
• Market Observation Post System (As needed)
• Self-organize institutional investor conferences twice a year and participate in public forum per year.
• Continue to implement and improve the OSH system.
• Disclose CDP's climate change/water information annually and manage the risks of carbon emissions and water use.
Community/NGOs/Non-Profit Organizations Based on the concept of "taking from society and giving back to society", we listen and respond to the community and cooperate with NGOs to contribute to the community and enhance social influence.
• Business Ethics
• GHG Management
• Human Rights
• Social Engagement/Community Relations
• Support the development of OSH in the industry
• Participate in OSH seminars
• Join regional prevention organizations
• Reduce GHG emissions
• Accidents or violations of environmental protection issues in the Company will affect the quality of life of local residents. • Seminar (As needed)
• Participate in Prevention Organizations (As needed)
• Telephone (As needed) • The Official Document (As needed)
• Unimicron Website (Periodic, Aperiodic)
• Continuous operation, effectiveness, and improvement of OSH management system.
• Participate in the activities of industry organizations.
• Participate in seminars related to OSH issues.
• Participate in regional prevention organizations.
• Implement and disclose GHG reduction measures.
• Continuously conduct environmental protection activities in each plant to maintain the relationship with the community.
Academic Institutions We collaborate with academic institutions to develop new technologies, and through industry-academia cooperation to strengthen our patent and nurture R&D talents
• Technology and R&D
• Talent Attraction and Retention
• Industry-Academia Collaborative Research Project
• Cooperative Education Program
• Summer Internship Program
• Failure to provide sound workplace education and training will cause students to lose confidence. • Campus Recruiting Events (Periodic) • Telephone /E-mail (As needed) • The Official Document (As needed)
• Unimicron Website (Aperiodic)
• Build long-term partnerships with universities.
• Annual Cooperative Education Program, with a total of 12 schools and 110 students in 2022.

”Note: The communication situation with each stakeholder is reported to the board of directors regularly every year. The communication situation with each stakeholder in 2022 has been reported to the board of directors on June 13, 2023.”

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