Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved energy efficiency and reduced carbon emissions through the adoption of LED lighting and other energy-saving measures in offices.
• Waste reduction and recycling initiatives.

Social Achievements

• Provided information technology equipment to underprivileged students in remote areas to enhance their digital learning opportunities.
• Participation in food bank activities and educational programs.

Governance Achievements

• Established a corporate governance structure including independent directors, an audit committee, and a remuneration committee.
• Implemented a whistleblower system and grievance mechanisms for employees.
• Regularly provided training programs for employees and directors on corporate governance and ethics.

Climate Goals & Targets

Environmental Challenges

• Intense competition in the fingerprint recognition market.
• Talent acquisition and retention in the fingerprint recognition field.
• Intellectual property risks in a rapidly developing market.

Mitigation Strategies

• Continued investment in R&D to maintain a technological edge.
• Strengthening collaboration with clients and providing comprehensive technical support.
• Extensive patent portfolio to protect intellectual property.
• Attracting and retaining talent through competitive compensation and employee benefits.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Rights and Welfare
• Ethical Management

Environmental Achievements

• Implemented measures for resource recovery and power-saving measures in office lightings; effective classification of waste material and resource recycling.

Social Achievements

• Provided various employee benefits including insurance, health checkups, and year-end parties; established a mechanism and channel for employee grievances; provided employees with a safe and healthy working environment; provided diverse training courses for employee development; maintained open communication channels with employees.

Governance Achievements

• Established independent directors, audit committee, and remuneration committee; formulated Code of Practice for Corporate Governance, Integrity Code of Practice, Code of Ethical Conduct, and Guidelines for the Operational Procedures and Conduct of Honest Operations; established a whistleblowing system; implemented measures to prevent conflicts of interest; established an effective accounting system and internal control system; purchased liability insurance for directors and managers.

Climate Goals & Targets

Environmental Challenges

• Rise of 3D Face Recognition, potentially excluding fingerprint identification; difficulty in finding production capacity due to full utilization of fabs; risk of sales concentration in a few major customers.

Mitigation Strategies

• Developed a cost-effective chip solution for 3D face recognition and also provides fingerprint recognition, iris recognition and other programs under the screen; maintained good cooperative relationship with the fab and master production and sales planning; actively acquiring new customers and providing new services to reduce sales concentration.

Supply Chain Management

Responsible Procurement

• Regular examination of product quality and service conditions; actively sourcing out other local and international plants for raw materials.

Climate-Related Risks & Opportunities

Awards & Recognition

• Ranked No.9 in Asia-Pacific area and No.1 in Taiwan among Top 500 high-tech, high-growth companies of Asia-Pacific Deloitte

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Corporate Governance

Environmental Achievements

• Implemented energy-saving measures in office lighting and reduced the number of transaction machines to reduce carbon emissions and energy consumption.
• Implemented waste classification and resource recycling.

Social Achievements

• Provided various employee benefits including labor insurance, national health insurance, life insurance, casualty insurance, medical insurance, cancer insurance, and business travel insurance.
• Organized annual health checkups, overtime dinners, department banquets, year-end company parties and events, lucky draws, employee holiday trips, and festive celebratory events.
• Provided subsidies for weddings and funerals and cash gifts for birthdays.

Governance Achievements

• Established an Audit Committee and a Remuneration Committee.
• Formulated a Code of Corporate Governance Practices.
• Implemented a diversity policy for Board of Directors.
• Established internal operating procedures to deal with shareholder proposals, doubts, disputes, and litigation matters.
• Established a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Concerns about the application of fingerprint recognition in smartphones due to Apple's shift to facial recognition.
• Tight production capacity of wafer foundries.
• Concentration of sales to a single customer (Company A).

Mitigation Strategies

• Continued investment in R&D of optical fingerprint recognition and other biometric technologies.
• Maintained good cooperative relationships with wafer foundries and actively sourced out other plants.
• Developed new products and actively sought new customers to reduce sales concentration.

Supply Chain Management

Responsible Procurement

• Regular examination of product quality and service conditions.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Corporate Governance

Environmental Achievements

• Implemented energy-saving devices in the computer room
• Promotes energy saving and carbon reduction to employees
• Uses recycled paper and improves resource utilization efficiency

Social Achievements

• Provides various employee benefits (labor insurance, health insurance, life insurance, etc.)
• Offers diverse training courses for employee development
• Maintains open communication channels with employees

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and 8-inch chip shortage
• Global mobile phone market facing weak sales and deferred shipments
• Fierce market competition leading to reduced product prices

Mitigation Strategies

• Added a second capacitor foundry and is actively seeking third and fourth foundries
• Actively seeking new customers (including 5G models) and maintaining good relationships with existing customers
• Diversifying product portfolio and strengthening the company's operational physique

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRS)

Third-party Assurance: KPMG Taiwan

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• continued impact of the COVID-19 pandemic on the global market, inflation, geopolitical risks, weakened end-user demand, reduced corporate demand, adjustments in supply chain inventory, decline in revenue and profitability, saturated smartphone market, intense market competition

Mitigation Strategies

• optimizing existing products, actively transforming and striving to develop new products and applications, expanding into non-fingerprint recognition chip businesses and non-smartphone markets, expanding the use of fingerprint recognition chips in mobile phone, notebook brand customers and automotive markets, expanding the product line of non-fingerprint recognition chips, introducing it to notebooks and televisions to save energy, expanding wafer sources, introducing non-Taiwanese wafer foundries, optimizing the cost structure and conducting effective cost control, strengthening inventory management, collaborating with ITRI, investing in the research and development of an AI-based Driving Monitor System (DMS), providing a machine vision DVS sensor, cooperating with investment partners, promoting ESG, developing high-performance and low-power products to contribute to energy conservation and carbon reduction, improving corporate governance, fulfilling corporate responsibilities

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used:

Certifications:

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• high-performance and low-power products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Amendments to the Company’s “Procedures for Ethical Management and Guidelines for Conduct”, including improvements to the whistle-blowing system.

Climate Goals & Targets

Environmental Challenges

• Weak end-market demand due to global macroeconomic factors (inflation, high interest rates, geopolitical risks, supply chain inventory destocking).
• Intense market competition.

Mitigation Strategies

• Optimizing existing fingerprint recognition products and enhancing core technology competitiveness.
• Actively transforming, focusing on new product and application development, expanding into non-fingerprint recognition chip business and applications in non-smartphone markets.
• Collaborative product development and integration within the group, leveraging horizontal and vertical integration in research and development.
• Expanding fingerprint recognition chip business into smartphones, notebook brands, and automotive markets.
• Venturing into non-fingerprint product areas (dToF, Under Display Ambient Light Sensors, Flicker Detection Sensors).
• Expanding wafer supply sources through collaboration with non-Taiwanese foundries.
• Investing in advanced manufacturing processes and developing more IPs (CoWoS, UCIe, D2D).
• Providing customers with diversified solutions through group integration.
• Promoting ESG (Environmental, Social, and Governance).

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used:

Certifications:

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• High-efficiency and low-power consumption products.

Awards & Recognition

• Not disclosed