Corporate Governance

I.     Does the Company establish a governance structure to promote sustainable development, and set up a dedicated (or part-time) unit to promote sustainable development, with senior management authorized by the board of directors to handle, and the situation of the supervision of the board of directors?

V

In 2023, the Company has formally established an ESG sustainable development execution unit to coordinate the implementation of sustainable development-related operations. In addition to formulating sustainable development goals, ESG development strategies and guidelines, the implementation plans are then implemented according to the responsibilities of all relevant departments. Finally, the Sustainability Report is prepared and the implementation results are reported to the Board of Directors at least once a year.

The board uses the management team's reports (including ESG reports) to understand and supervise the implementation of the company's sustainable development, and gives timely recommendations to the management team to achieve various ESG goals.

The company issued its "2023 Sustainability Report" in August 2024. For relevant specific promotion plans and implementation results, please refer to the company's website, where the report can be downloaded for detailed review.

No major difference

II.   Does the Company follow the principle of materiality, conduct risk assessments on environmental, social, and corporate governance issues related to company operations, and formulate relevant risk management policies or strategies?

V

(I) The Company has formulated relevant operating specifications for various risk factors, such as its "Code of Practice on Corporate Governance," "Code of Ethical Management," and "Code of Ethical Conduct for Employees." Based on this, we will implement risk management and actively promote the implementation of corporate governance to achieve the purpose of enhancing the Company’s reputation, strengthening its risk culture, and providing strategic management decision-making recommendations.

(II) In accordance with the principle of materiality for sustainable development, the Company conducts risk assessments on environmental, social and corporate governance issues related to the Company's operations. Based on the results of questionnaire surveys on stakeholders' ESG issues, the order of the issues and the management policy are as follows:

No major difference

III. Environmental issues

(I) Does the company establish an appropriate environmental management system according to its industry characteristics?

V

The Company promises to implement and comply with the relevant codes of conduct of the RBA, to assume environmental responsibilities in terms of environmental issues, to minimize the adverse impact on society, the environment and natural resources during the manufacturing process, while at the same time protect the health and safety of the public.

In accordance with the "CFSP Conflict-Free Minerals Smelter Program," "Responsible Business Alliance (RBA),” and "Global Enabling Sustainability Initiative (GeSI) for digitization", the Company has started to conduct conflict mineral investigations since 2021, and requires suppliers to submit the “non-conflict minerals declaration statement” to certify that the substances used in their products do not come from conflicted areas showing support through actions and the persistence in not using conflicted minerals adhering to the social responsibility concept. Customers in the transaction jointly sign a declaration of non-use of hazardous substances; use safe materials and parts certified by environmental protection specifications; and comply with standards such as RoHS, PFOS, Halogen Free, and REACH SVHC.

The Company has disclosed information and policies regarding environmental responsibility on its official website and in the Sustainability Report.

No major difference

(II) Is the Company committed to improving energy efficiency and using recycled materials with low impact on the environment?

V

(I) The company is dedicated to promoting environmental resource protection. To fulfill its corporate social responsibility and advance economic, social, and environmental progress, it focuses on four major sustainability strategies: low-carbon mission, circular regeneration, social inclusion and value co-creation, and sustainable manufacturing principles. These serve as guidelines for promoting environmental protection with business partners and stakeholders, including suppliers, contractors, customers, affiliated enterprises, and communities.

(II) Striving to pursue sustainable care for the environment and the friendly coexistence of all things, we have incorporated the concept of sustainability from the product design stage, through the upgrade of production processes, specifications, technologies upgrade, and energy-saving management software to achieve our commitment to environmental friendliness. In the design stage for chip circuit, a lower supply voltage is used to reduce chip power consumption, and customized design is used to assist customers in meeting industry standard requirements (e.g. California energy regulations) and compliance with industry power-saving design standards (e.g. Microsoft Modern Standby). Furthermore, the Company has obtained ISO 14001 certification in 2023 and obtain ISO 14064-1 certification in 2024, hoping to achieve the goal of green design through optimization of product manufacturing processes.

(III) Electricity is the main energy source for the Company's offices. The product design process requires extensive use of computers and software testing, as well as other electronic equipment such as emulators and analyzers. Therefore, a high proportion of electricity consumption is used for research and development. The Company continues to promote various measures on energy reduction and lowering environmental impacts. Priority will be given to the purchase of energy-saving certified products to help build a green workplace.

The Company's office energy management is mainly divided into two plans: the office air conditioners and lamps are gradually replaced with energy-saving certified products, and short-medium-term goals are set to track the progress and results.

No major difference

(III) Does the Company evaluate the potential risks and opportunities posed by climate change to the Company at present and in the future, and take relevant countermeasures?

V

The Company is committed to responding to the current global trend of energy conservation and carbon reduction in order to fulfill the responsibility of global citizens to protect the environment. In response to the business risks posed by climate change to the industry, each department will conduct an inventory of the climate-related risks involved in their own business scope, and then report to the President for consolidation. The Company referenced the Task Force on Climate-related Financial Disclosures (TCFD) framework, through the four core elements of "governance," "strategy," "risk management," and "indicators and goals," to identify potential climate change risks and opportunities, and grasp the impact on the company's operations and to formulate relevant strategies and measures in advance to prevent the risks and damages caused by climate change.

Climate change management framework:

No major difference

(IV) Has the Company kept statistics on the amount of greenhouse gas emission, water consumption and total weight of waste in the past two years, and formulated policies for greenhouse gas reduction, reduction of water consumption, or management of other wastes?

V

The Company has implemented management policies for greenhouse gases, water resources, and waste. The detailed measures are as follows:

1. Following the "Listed Companies Sustainability Development Roadmap," the company has completed board approval of greenhouse gas inventory and verification planning schedules, using 2017 as the baseline year to effectively track emission reduction performance and targets. The company has also completed greenhouse gas inventory and verification as scheduled.

2. The company's main water usage is for office life. It implements water conservation measures, including installing water-saving devices in sinks and restrooms, and regularly promoting water conservation awareness to reduce water waste.

3. Striving to achieve the goal of effective waste management and reduction, the Company has formulated an office waste reduction plan and is committed to the reduction of domestic waste. Waste is classified into general waste management and toxic waste management:

Hazardous waste includes batteries, waste chips, test boards, and computer peripherals.

To implement waste management more effectively, professional environmental protection companies are commissioned to dispose the toxic waste generated from operations to reduce direct impact on the environment.

4. The Company encourages the production and use of green products while reducing the negative impact on the environment through the green procurement system. The Company gives priority to the purchase of products with lesser impact on the environment - low energy consumption, non-toxic, recyclable and environmentally certified office supplies, such as energy-saving lamps, Energy Star certified notebook computers, eco-friendly toner cartridges, and eco-friendly photocopy paper.

To strengthen employees' understanding of green products and to consciously give priority to the purchase of green office supplies, the Company has integrated the green procurement system into the EIP system in 2023. When employees submit application requirements, the system will feed back green procurement priorities and related information. It is hoped that through continuous reminders, employees will be more aware of and willing to purchase green products, and everyone can contribute to environmental friendliness.

No major difference

IV. Social issues

(I) Has the Company established related policies and procedures in accordance with applicable legal rules and the International Convention on Human Rights?

V

The company respects human rights and personal privacy, and has established human rights protection and personal data protection management policies with reference to the "United Nations Universal Declaration of Human Rights," "Responsible Business Alliance Code of Conduct," "Labor Standards Act," and "Personal Data Protection Act." Since 2021, the company's RBA Self-Assessment Questionnaire has been reduced to a low-risk level, and the company has planned RBA VAP implementation, demonstrating its determination to fulfill corporate social responsibility.

In terms of policies, the Company has formulated management policies and procedures such as "Employee Work Rules" and "Sexual Harassment Prevention Measures, Complaints and Disciplinary Measures", and is committed to creating a quality work environment to protect the rights and benefits of employees, ensure non-discrimination and prohibit inhumane treatment regardless of race, color, gender, age, disability, marital status, political affiliation or religious belief in the recruitment process, and fair treatment of all employees free from discrimination or harassment.

In terms of implementation, the main concrete measures include: human rights education and training, with 13 training sessions conducted in 2024; the company continues to promote workplace diversity and equal promotion opportunities, creating a gender-friendly workplace; regarding communication mechanisms with employees, the company values the voice of all employees and has established anti-violence management and complaint channels (#asmedia885@asmedia.com.tw) to protect employee rights and strengthen workplace safety.

(II) Has the Company formulated and implemented reasonable employee welfare measures (including salary, vacation, and other benefits, etc.), and appropriately reflects business performance or results in employee compensation?

V

(1) The Company complies with the "Labor Standards Act" and related laws and regulations to establish various employee compensation and benefit measures. In addition to the Company’s vacation system that exceeds the requirements of the Labor Standards Act, it also provides labor and health insurance, appropriation of labor pensions, group accident insurance, and regular health checks for employees in accordance with the law. There are also travel subsidies, employee travel subsidies, year-end celebration parties, and year-end bonuses.

On the other hand, the Company pays out rewards with reference to the market, the government's salary adjustment standards, the Company's overall operational performance, and the performance of departments and individuals. Salaries are adjusted annually based on market mechanisms and the Company's operational performance.

(2) Other welfare measures: birthday money, Labor Day gift certificates, Mid-Autumn Festival gift certificates, implementation of employee stock options, and issuance of restricted employee stock. The company has also established an Employee Welfare Committee that provides subsidies for marriage, bereavement, hospitalization, and childbirth. To promote employee physical and mental health, the company has created various sports-related clubs to reduce employee work pressure, with evaluations and subsidies provided every six months. In 2024, employee participation in clubs reached 44%.

(3) Weekly massage service to relieve the pressure of time pressure for employees to work on various projects. In the spirit of social support, we arrange for the visually impaired to provide massage services at specific time of the company.

No major difference

(III) Has the Company provided a safe and healthy work environment for the employees and related education on occupational safety and health for employees at regular intervals?

V

1. The Company does not have a factory. Its offices comprise floors in a portion of a leased commercial building in an urban area, with each floor having a strict security system. In addition to the access control for personnel entering and exiting, it also has a complete fire protection system. We also conduct regular fire-fighting equipment maintenance and drills once every half a year to maintain the safety of employees' working environment. At the same time, employees’ health checks and group insurance are provided regularly every year, and external lecturers are arranged to give lectures on health or safety courses.

(1) To thoroughly implement occupational safety and health management and comprehensively prevent the occurrence of occupational disasters, the Company will focus its efforts on the following seven major aspects:

(2) Occupational hazard statistics for 2024 are as follows:

(3) Fire incident statistics for 2024 are as follows:

2. The Company attaches great importance to the balance of employees' body and soul, and has adopted the "All-round Health and Well-Being Program" to evaluate the health status of employees and invest resources in comprehensive care for employees. Below are some of the health promotion measures being implemented:

(1) Health protection net:

a. Health checkup and graded management for employees: The Company plans to take health protection measures that go beyond the statutory regulations by organizing a health checkup every year and a physician health consultation every quarter. The Company also promotes health education and various health promotion programs to enhance health awareness of employees. In the past three years, the willingness of employees to participate in health examination has been maintained at 93.5%, and the level 4 health management is reduced year by year to below 2.3%.

b. Employee vaccination: The company has independently implemented an employee vaccination program since 2020. In 2024, the employee influenza vaccination rate was 54%.

(2) Balance of body and mind:

a. Promotes happiness - relaxing massage service by the visually impaired: The Company hires professionals certified by the Chinese Acupressure Promotion Association for the Visually Impaired to perform weekly massages for employees. As of 2024, total service instances reached 3,649.

b. EAP employee assistance program: The EAP employee assistance program was introduced in 2021 to provide employees with consultation in five major areas: legal, financial, psychological, medical, and management. Currently, the current consulting and cooperation unit is Shiuhli Cultural and Educational Foundation. In 2024, the average EAP consultation rate was 17.2%.

c. Unscheduled physical and mental health activities and lectures: The Company will organize health education promotions from time to time to strengthen employees' knowledge on health protection and improve their health status. By 2024, the accumulative number of advocacy sessions was 161 times.

(3) LOHAS Life:

a. Club activities and subsidies: Diversified club activities enable employees to revisit the passionate youth of their student days. Subsidies and evaluations are provided every six months. As of 2024, the company has clubs including yoga club, movie club, jogging club, basketball club, and badminton club. Employee participation in clubs reached 44%, with cumulative subsidies totaling NT$3,028,967.

b. Employee travel: The Company organizes an employee trip every year to build the cohesiveness of the Company's employees. In 2024, the employee travel participation rate was 49%, with family member subsidies accounting for 68.7%.

No major difference

(IV) Has the Company developed an effective career development training program for its employees?

V

The Company attaches great importance to the diversified training of employees. In addition to planning professional courses for employees according to their functions, employees' self-development is also one of the focuses of the Company. Education and training is divided into three aspects. For new employees, the emphasis is on understanding the corporate culture and specific professional courses; the junior team values functional development and LOHAS learning, and offers comprehensive seminars on industry trends, social and corporate responsibility topics to body, mind, and soul, to help colleagues keep abreast of the rapidly changing industry status. In addition, it also helps employees to achieve work-life balance; for the management team, it is to improve management competency training, strengthen the group ability of integration and synergy, and improve management skills to lead the team to achieve operational goals. The annual course content is planned according to the employees' learning needs, and an education and training satisfaction survey is conducted every year to understand the employees' learning status and feedback after the course, so that the employees can grow together with ASMedia.

No major difference

(V) Does the Company comply with relevant laws and regulations and international standards regarding customer health and safety, customer privacy, marketing and labeling of products and services, and establish relevant policies and complaint procedures to protect consumers' or customers' rights and interests?

V

The Company's marketing and labeling of products and services are not only handled in accordance with domestic laws and regulations, but also in accordance with the relevant laws and regulations of the country where the customer is located. This includes environmental protection requirements of various products and compliance with product patent rights. At the same time, the Company has always valued customers' opinions and feedback, and maintained good communication with customers. There are customer communication channels and response methods (including customer satisfaction survey and customer complaint handling) on the Company's official website, as well as a dedicated unit to deal with customer opinions to ensure the best service performance to customers and to achieve the purpose of rights protection.

No major difference

(VI) Has the Company formulated supplier management policies, where suppliers are required to follow relevant regulations on issues such as environmental protection, occupational safety and health or labor, and their implementation?

V

The Company has strict internal evaluation and investigation procedures for suppliers. In addition to listing the existence of records that affect the environment and society as an important inspection item, the provision of all products must comply with laws and environmental protection standards. And in the contract, the product and the production process must meet the requirements of environmental protection regulations, and no harmful substances should be used. If there is a violation of the content of the contract or laws and regulations, and depending on the seriousness of the circumstances, the supplier shall be liable for compensation in order to fulfill corporate social responsibility.

The Company has disclosed the supply chain management policies in the ESG report:

a. According to supplier management procedures, annual evaluations and irregular audits of suppliers are conducted by the Quality Assurance department based on delivery quality, engineering capabilities, ESG sustainability and other selection criteria. In 2024, 100% of all suppliers complied with the company's supplier management policy.

b. We require suppliers not to purchase or use conflict minerals. We have implemented the following principles: The Conflict-Free Smelter Program (CFSP), Responsible Business Alliance (RBA), and Global Enabling Sustainability Initiative (GeSI) for digitization, and conduct conflict mineral surveys to ensure that all suppliers comply with the Company's philosophy of no use of conflict minerals.

No major difference

V.    Does the Company prepare reports disclosing the Company's non-financial information, such as the Sustainability Report, with reference to international reporting standards or guidelines? Did the preliminary report obtain the confidence or assurance opinion of the third-party verification unit?

V

Besides issuing sustainability reports using the Task Force on Climate-related Financial Disclosures (TCFD) framework, the Company also complies with the latest GRI Sustainability Reporting Standards (2021 and 2016 versions), and has advocated for 17 United Nations Sustainable Development Goals (SDGs) promote sustainable corporate management. The report is prepared in accordance with the principles of inclusiveness, sustainability, materiality, and integrity, as well as the quality principles of accuracy, balance, clarity, comparability, and timeliness. So far, this report has not been certified or guaranteed by a third-party verification unit.

No major difference

VI. If the Company has established its own sustainability principles in accordance with the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies", please describe the current practices and any deviations from the Best-Practice Principles: The Company has not yet formulated its own sustainable development best-practice principles. However, the Company is committed to the implementation of corporate social responsibility in its daily operations, including active participation in environmental protection, social emergency relief, social welfare activities, etc. The relevant information of relevant operations is disclosed in the annual report.

VII. Other important information helpful to understand the status of implementation of sustainable development:

(I) Environmental protection:

1. Our Company is a professional IC design firm, with independent research and development and design as its primary operating activities, Our main products are all produced by outsourcing, which falls under the fabless IC design industry. In addition to the working environment and manufacturing process, subcontracted processing plants must meet the requirements of environmental protection laws and regulations. All production materials must comply with the "Product Restricted Substance Control Procedures" stipulated by the Company. In addition to not using hazardous substances, safety materials that meet international standards are specified. In addition, the Company obtains laboratory reports provided by the supplier in a timely manner and checks the supplier on related matters. ASMedia and its suppliers jointly sign "Hazardous Substance Non-Use Declarations," using safety materials and components certified to environmental specifications, and complying with standards such as RoHS, PFOS, Halogen Free, and REACH SVHC.

2. The company has always advocated energy conservation and resource recycling, including implementing garbage sorting, planning to fully adopt energy-saving lighting fixtures by 2026, turning off lights when not in use, controlling air conditioning operating hours, and temperature control measures. Short-, medium-, and long-term goals related to environmental protection policies have been formulated. In addition to strengthening the promotion of energy and water conservation for each employee, reducing office resource consumption is also listed as an important indicator item.

3. The Company continues to promote the paperless movement, and internal procedures and other forms and documents are controlled by online electronic sign-off. This is done to reduce paper waste and to continue to contribute to the environmental protection of the Earth.

4. Environmental protection activities: Earth Hour (lights off for one hour), Sun Moon Lake shoreline cleanup and hiking activities, environmental education, and sponsorship of the "Kuroshio Ocean Education Foundation" for whale and dolphin conservation work.

(II) Social welfare and services:

1. Charity activities: By providing resources and opportunities to work with social welfare organizations and public welfare groups, and planning and executing charity activities, the Company helps disadvantaged or marginalized people to participate in the development of society by enhancing their abilities and confidence, in order to improve their living conditions and environment. 

a. Assisting individuals with disabilities to live independently: The company has long supported organizations for people with disabilities by ordering charity gift boxes, aiming to achieve the dual goals of appreciating employees' hard work while providing disadvantaged groups with job training and employment opportunities. In the "Comprehensive Health and Happiness Plan," the company regularly engages certified visually impaired massage therapists through the Taiwan Association for the Promotion of Visually Impaired Meridian Massage to provide weekly stress relief and relaxation for employees. While employees enjoy professional services, visually impaired massage therapists also have a good working environment, ensuring their work dignity and survival rights.

b. Resource recycling and sharing: The company has long been committed to reducing the digital divide between urban and rural areas in Taiwan by providing second-hand computers to improve the learning quality of students in remote areas. The company participates in the "Old Shoes Save Lives" campaign initiated by the International Christian Care Association, donating second-hand shoes in good condition. It also organizes "Second-hand Markets - Treasure Hunting" to give new life to old items and collaborates with "Taiwan ECPAT x Book Treasure Second-hand Bookstore" to donate second-hand books, supporting girls' independence projects.

2. Cultivating young talent: The company is enthusiastically dedicated to charitable causes, providing research funding to various colleges and universities, charity sports events, and medical institutions each year.

The Company actively negotiates industry-academia cooperation projects with various schools to provide students with the professional technical knowledge of the industry during their studies, and expand the horizons of domestic students by sponsoring overseas competitions and organizing international seminars. The Company hopes to establish a campus in-depth cultivation program so that students can have more relevant experience and give back what they have learned to the workplace after graduation or further education. The company recognizes the importance of expanding students' international perspectives. In addition to valuing science and engineering students' technical knowledge advancement through industry-academia cooperation, it also sponsors the "Overseas Learning Multiplication Plan" of the College of Technology Management at National Tsing Hua University, encouraging students to participate in international exchange learning programs, internships, international competitions, conferences, and volunteer work to develop their international perspective.

3. Medical promotion: Through the sustainable operation of the donation recipient medical institutions and foundations, we will improve the quality and environment of medical care in the society of our country; in order to raise the awareness of cancer prevention and treatment among our citizens, we have been promoting national health education with non-profit medical institutions, and sponsoring the instruments and equipment needed in the promotion of medical research projects to improve the quality and efficiency of medical care.

4. Disaster relief: The Company has been caring for major disasters at home and abroad for many years, and has made timely donations to rescue the injured and their families, and work together to overcome the difficulties.

5. Developing sustainable communities: Connecting hometown identity through innovative education, the company participates in the "Shennong Project" at Pingling Elementary School in the southern district of New Taipei City. With "organic diet, land education, and hometown identity" as the core triangle, this project helps children develop recognition of their hometown's unique agricultural products, starting from organic diet education, leading to a rooted hometown identity and achieving the vision of sustainable urban and rural areas.

(III) Consumer Rights: The Company upholds the principle of honest management and professional services. There is also a service procedure for handling customer opinions with a dedicated unit to ensure the best service performance for customers and to achieve the purpose of protecting rights.

The company has established a stakeholder section on its official website, providing a dedicated email address for communication and contact with stakeholders. For significant issues, including questions, suggestions, or even complaints, there is a reporting system for violations of business ethics, which can be used to report internal and external violations. Good communication and interaction are maintained through the email address announced on the official website.

(IV) Human rights:

1. The Company has formulated and disclosed its human rights policy declaration in accordance with the relevant content of the "United Nations Universal Declaration of Human Rights," and hires labor in accordance with various government regulations such as the Labor Standards Act. It does not force employees to work, prohibits child labor and illegal labor, and provides employees with a healthy and safe working environment to protect their rights and interests.

2. To maintain gender equality at work, in accordance with the "Gender Equality in Employment Act," the company clearly stipulates in its employee work rules the prohibition of sexual harassment in the workplace and has established complaint procedures and disciplinary regulations to protect employee rights.

3. The Company has formulated a maternal health protection plan in the workplace based on Article 31 of the “Occupational Safety and Health Act,” the "Implementation Measures for the Maternal Health Protection of Female Workers," and other maternal labor health protection policies. We provide a safe, hygienic, healthy, and friendly work environment for employees during pregnancy and breastfeeding in the workplace, to ensure the physical and mental health of pregnant, postpartum, and breast-feeding female employees to protect their health.

4. The Company regularly organizes course lectures every year and invites lecturers to teach related courses. These include “Workplace Interpersonal Relations,” “Retirement Pension, Labor Insurance Elderly Benefits and Occupational Disaster Relief,” and so on.

(V) Safety and health:

1. Our company is an IC design company and has not established a factory. The office is a commercial building leased in an urban area. In order to provide a safe working environment for employees, we have established access control at the main entrances and exits as well as elevator access control on each floor. Furthermore, building security staff registers visitors to prevent non-company personnel from entering and leaving at will.

2. The Company has a security system and is connected to the security company 24 hours a day to protect the safety of company personnel and property.

3. The office building where the company is located is equipped with a complete fire safety system and conducts various disaster prevention drills and maintenance of fire equipment regularly once every half a year to enhance personnel disaster response capabilities and reduce disaster losses.

4. In addition to daily cleaning operations, the Company regularly conducts environmental disinfection, water dispenser water quality testing, air conditioning system cleaning and inspection, and places air purifiers in the office to provide employees with a good working environment.

5. There is no smoking in the Company's office area. We are committed to promoting workplace health through active implementation of smoke-free measures, and have obtained the Healthy Workplace Self-certification - Health Promotion Badge issued by the National Health Bureau establishing a working environment without the harm of second-hand smoke.

6. We organize regular health education and publicity lectures every year, and conduct employee health inspections so that employees can develop in a balanced manner in physical and mental health.

(VI) Other social responsibilities: The Company regularly recruits several R&D staff undergoing their alternative national service every year in accordance with the national talent cultivation plan. In addition to reducing expenditures, this also effectively uses the expertise of R&D service staff to make them suitable for their talents.