Corporate Governance

Company Practice

Fulfilling Corporate Social Responsibility Standards
Communication Between Independent Directors And Internal Auditors
Communication Between Independent Directors And Independent Auditors
Internal Audit Organization and Operation Status

Items to be promoted

Implementation Status

Deviation from "Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies" and Reasons

Yes

Summary Description

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?

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 has published the "2022 Sustainability Report" in September 2023. Please refer to the Company's website for the related specific promotion plans and implementation results. You can also download the Chinese/English version of the report as a PDF file for viewing.

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?

(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:


Risk Assessment Items/Topics	Risk management policy or strategy
Corporate governance	Improve the function of the board of directors, in order to achieve the purpose of improving the company's reputation, strengthening the risk culture, and providing strategic management and decision-making suggestions. Reasonably define and allocate the rights and responsibilities of all shareholders,management team, and stakeholders.
Innovative R&D and Product Competitivene ss	ASMedia will continue to invest in cultivating professional R&D technical talents to strive for innovation and progress in high-speed technological products, and maintain close cooperation with international big firms and related supply chains. As a leader in high-speed interfaces, apart from focusing on innovative R&D and grasping the specifications of each generation, we are also actively expanding the market, focusing on the cooperation and development of customized products and the development of markets other than personal computers.
Customer satisfaction	The Company provides customers with high-quality products according to its business philosophy, and maintains good customer relationships.
Risk management	The Company operates in a conservative and prudent manner and does not engage in high-risk and speculative behaviors. Identify common risks and formulate risk management strategies to avoid losses to the Company.
Business performance	Maintain close cooperation with international big firms and related supply chains to enable the Company to perform more outstandingly in business operations, product development and application. Improve operational performance and pursue sustainable development goals.
Supply chain management	On the business dealings with the 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. In case of violation of the contract or the laws and regulations, the Company will be liable for compensation depending on the severity of the circumstances.
Legal compliance	Based on the concept of integrity, transparency, and responsibility, considering the Company Act, Securities and Exchange Act, Business Entity Accounting Act, Political Donations Act, and relevant regulations for listing on the TWSE or OTC, or other relevant laws and regulations such as business practices. In this way, it establishes a management policy based on integrity and perfects corporate governance and risk control mechanisms to achieve the goal of sustainable development of the Company.
Talent Cultivation	Carry out industry-academia cooperation with major colleges and universities, formulate various projects and provide research funds, and expand the horizons of domestic students by sponsoring overseas competitions and strive to cultivate future young talents. Actively negotiate industry-academia cooperation projects with various schools, and provide opportunities for students to familiarize with industry professional technology and knowledge through practical experience sharing with industry professionals, and train professional talents for the industry.
Environmental Sustainability	In terms of working environment and manufacturing processes, outsourced factories must comply with environmental protection laws and regulations. Materials produced must also comply with the "Procedures for Control of Restricted Substances in Products" stipulated by the Company. Continue to advocate energy conservation and resource recovery. This includes practical measures such as the implementation of garbage classification, the full use of energy- saving lamps, savings from turning off lights, air-conditioning timing and temperature controls, and paperless actions. The President will convene relevant units to jointly formulate sustainability goals and ESG development strategies and guidelines, and report the implementation results to the Board of Directors.

No major difference

3. Environmental Issues

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

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?

(I)    The Company spares no effort to promote the protection of environmental resources, and to fulfill its corporate social responsibility and promote economic, social and environmental progress, the four major sustainability strategies are: low-carbon mission, recycling, social inclusion and value co-creation, and principle of sustainable manufacturing. ASMedia jointly promotes the principle of promoting environmental protection affairs with business partners and stakeholders, including suppliers, contractors, customers, related parties 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 is expected to 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?

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 general manager 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:

Governance：
Board of Directors: Supervises the sustainable development of economy,environment and society.
All departments: Inventory the climate-related risks and opportunities in the scope of power and responsibility, and report the relevant implementation results.

Strategy：
Climate-related risks and opportunities, strategies and financial plans are summarized in the tables "TCFD Climate-related Risks and Financial Impacts (Transition Risk)," "TCFD Climate-Related Risks and Financial Impacts (Physical Risks)" and "TCFD Climate-Related Opportunities and Financial Impacts" .
The Company will consider the identified risks: physical (immediate, long-term), transition risks (policy and laws and regulations, technology, market, reputation), and formulate relevant response strategies and measures in advance.

Risk management：
In accordance with the risk management procedures, each responsible unit shall review the process every year and perform data analysis to determine the priority of project risks and propose a management plan. The Company has also formulated a business continuity plan to protect its operations from diSATAters and accidents.

Indicators and Targets：
At present, the Company uses greenhouse gas emission, energy management, water resource management and waste management as the indicators of climate change risk, and actively cooperates with the government to achieve the policy of net zero emissions by 2050. Please refer to the Sustainability Report for the greenhouse gas emissions.

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?

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

1.The Company has approved the timetable for the completion of greenhouse gas inventory and verification at the board meeting in accordance with the "Roadmap for Sustainable Development for Listed Companies". The Company has also used 2017 as the benchmark to effectively track the emissions reduction performance and targets, and has planned to complete the greenhouse gas inventory and verification before the end of 2024.

2.The Company mainly uses water for office use and water for employees' livelihood. The Company has implemented water-saving measures, including installing water-saving devices in the basins and toilets, and regularly promoting water-saving measures, in order to reduce the wastage of water resources.

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:


Year	Hazardous waste	General waste	Total (tons)
111	3.053	16.817	19.87
112	0.016	22.151	22.167

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

4. Social Issues

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

The Company respects human rights and personal privacy, and has formulated human rights protection policies 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 RBA corporate self-assessment questionnaire has reduced the risk to a low level, demonstrating the Company's determination to fulfill its 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 specific measures include the following: 27 training sessions have been conducted to advocate illegal abuse in the workplace; the Company continues to promote workplace diversity and equal opportunities for promotion, and build a gender-friendly workplace. In addition, in terms of communication mechanism with the employees, the Company values the voices of all employees and has established management and complaint channels to prevent violence. A complaint channel (#asmedia885@asmedia.com.tw) has also been established to protect employees' rights and interests and enhance workplace safety.

No major difference

(II) Has the Company formulated and implemented reasonable employee welfare measures (including salary, vacation, and Items to be promoted

(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 gifts, Labor Day gift certificates, Mid-Autumn Festival gift certificates, implementation of employee stock option certificates, and issuance of new employee restricted shares. There is also a welfare committee that provides subsidies for marriage, funerals, hospitalization, and childbirth. To promote the physical and mental health of employees, a number of sports-related clubs have been created to reduce employees' work pressure. Subsidies are awarded every six months. In 2023, the proportion of employees participating in clubs accounted for 62%.
(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?

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


7 Aspects of Occupational Health and Safety Management	Managed items
Safety and Health Management	Main entrance and elevator are equipped with access control Implement visitor registration 24-hour security system Comprehensive fire safety system Smoke-free environment
Health and safety education and training	Online education platform - DiSATAter prevention/first aid videos
Standard operating procedures and work safety analysis	1.Test board welding: Exhaust equipment: Air purifier Annual lead health examination for welding personnel Welding SOP 2.ESD test work: Ground wire according to JEDEC JESD 625 Testing personnel wear electrostatic wristbands SOP for EMS testing
Safety and health inspection	Escherichia coli inspection for water dispensers: Once every 3 months Concentration of carbon dioxide in inter-office space: Once every six months Air conditioning maintenance: Once a year Fire safety inspection: Once a year Infrared thermal imager detection of switchboard: Once a year Office cleaning and disinfection: Insect removal and disinfection every six months During the pandemic, sterilization will be conducted once every 2 months, and once a week for pandemic status Level 3 and above.
Emergency Response	Established ASMedia Self-defense Fire Brigade DiSATAter prevention drill once every six
Health management and promotion	Employee health examination once a year EAP Employee Assistance Program Massage Services by the Blind and Visually Impaired Health consultation with a nurse, 3 times a month for 2 hours Physician health consultation once per quarter for 2 hours
Safety and Health Activities	Advocacy on health education from time to time Unscheduled health promotion activities

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 90%, and the level 4 health management is reduced year by year to below 2%.
b.    Employee vaccination: The Company has introduced an employee vaccination program independently since 2020. The influenza vaccination rate among employees in 2023 was 56%.

(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. By the end of 2023, the program had served a total of 2,935 employees.
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. The average number of EAP inquiries in 2023 was 31%.
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 2023, the accumulative number of advocacy sessions was 113 times.

(3)    LOHAS Life:
a.    Club activities and subsidies: Diversified club activities enable employees to revisit the passionate youth of their student days. Subsidies are awarded every six months. As of 2023, 62% of the Company's employees have participated in the clubs, including the Yoga Club, Movie Club, Jogging Club, Basketball Club, Softball Club, and Badminton Club. The accumulated subsidies amounted to NT$2,749,169.
b.    Employee travel: The Company organizes an employee trip every year to build the cohesiveness of the Company's employees. In 2023, the employee travel participation rate was 60.2%, and allowances for employees' dependents accounted for 83.6%.

No major difference

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

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?

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?

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. Suppliers are evaluated annually and audited from time to time in accordance with the supplier management procedures. The Quality Assurance department conducts evaluations and audits based on delivery quality, engineering capability, and ESG sustainability criteria. All suppliers in 2023 are of 100% compliance 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?

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 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.
2.    The company has always advocated energy conservation and resource recovery. This includes practical measures such as the implementation of garbage classification, the full use of energy-saving lamps, savings from turning off lights, and air-conditioning timing and temperature controls expected in 2026. 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.    Responding to environmental protection activities: Turn off the lights for one hour, Kenting Manzhou Beach cleaning activity and sponsor the "Kuroshio Ocean Education Foundation" to carry out cetacean 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.    Improving the quality of life of the elders in remote villages: The Company joins hands with elder care groups to protect the happy retirement of the elders in remote villages. Through the concern and support of the company, the social welfare organizations help the elders to obtain daily life care and nutrition consultation services, improve the elder's physical and mental health, and delay the aging process, so that each elder can live with dignity and hope.
b.    Assisting people with disabilities to live independent lives: The Company has been supporting organizations for persons with disabilities in ordering charity gift boxes for a long time, hoping to provide condolences to employees for their hard work, while at the same time providing work training and employment opportunities for the disadvantaged.
c.    Resource recycling, sharing and common good: The Company has long been committed to bridging the digital gap between urban and rural areas in Taiwan, providing second-hand computers to help students in rural areas learn; participating in the "used shoes to save lives" campaign launched by Care Ministries International and donating second-hand shoes in good condition; The Company held the "Second-hand Market - Treasure Digging" at the end of the year to give new life to old items.
2.    Industry-academia cooperation: The Company is enthusiastic about public welfare and spares no effort. Every year, the Company sponsors research funds for unspecified colleges and universities, charity ball games, and medical institutions.
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 is well aware of the importance of broadening students' international horizons. Apart from emphasizing how science and engineering students can improve their technical knowledge through industry-academia collaboration, the Company has also sponsored the "Overseas Study Multiplier Program" offered by the School of Science and Management, Tsinghua University to encourage students to participate in international exchange studies projects, internships, international competitions, seminars and volunteer work to cultivate students' international outlook.
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.    DiSATAter relief: The Company has been caring for major diSATAters 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.
(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 set up a Stakeholders Section on its official website and provides an exclusive e-mail address for communication and contact with stakeholders. Regarding major issues, if you have any questions, suggestions or even complaints, there is a violation of business ethics reporting system in place for report by internal and external persons. All violations may be reported, and the mailbox announced on the official website is maintained to facilitate smooth and good interactions.
(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.    In order to maintain gender equality at work, the Company follows the "Act of Gender Equality in Employment." It clearly stipulates that sexual harassment in the workplace is strictly prohibited in the employee’s work rules, and there are appeal procedures and disciplinary regulations to protect the rights and interests of employees.
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 DiSATAter 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 diSATAter prevention drills and maintenance of fire equipment regularly once every half a year to enhance personnel diSATAter response capabilities and reduce diSATAter 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.

(VI) The Company's performance of ethical management and the differences between the Company and the listed company ethical management code and the reasons for these departures The management team is based on the concept of integrity, transparency, and responsibility, considering the Company Act, Securities and Exchange Act, Commercial Accounting Act, Political Contribution Act, and relevant regulations for listing on the TWSE or OTC, or other relevant laws and regulations such as business practices. In this way, it establishes a management policy based on integrity and perfects corporate governance and risk control mechanisms to achieve the goal of sustainable development of the Company. At the same time, through the construction of an honest and conservative corporate culture, internal audit, and internal control and risk management implementation, we ensure that directors, supervisors and employees can comply with relevant laws and regulations when performing business.

Assessment Items	Operating status			Deviation from Ethical Management Best-Practice Principles for TWSE/TPEX Listed Companies and causes thereof
Assessment Items	Yes	No	Summary description
I. Formulate honest management policies and plans (I) Has the Company specified its policy and method for the implementation of ethical corporate management in its internal rules and regulations and external documents, and have the Board and the management of the Company promised to pursue the policy of ethical corporate management?			(I) The Company has formulated the "Ethical Management Code" and the "Ethical Management Operation Procedures and Behavior Guidelines," and the audit unit regularly checks the compliance with the preceding system and reports to the board of directors.	No major difference
(II) Has the company established an assessment mechanism for the risk of dishonesty, regularly analyzing and evaluating business activities with a high risk of dishonesty in the business scope, and formulated a plan to prevent dishonesty, and cover at a minimum the preventive measures for various acts under Article 7, Paragraph 2 of "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies?"			(II) The Company has set forth its "Guidelines for Ethical Operation Procedures and Behavior" to serve as procedures for handling dishonest behavior and improper interests and promotes the ethical management policy through conferences and educational training. it is included in employee performance appraisals, setting up a clear and effective reward, punishment, and appeal system.	No major difference
(III) Does the company specify the operating procedures, behavior guidelines, disciplinary penalties, and grievance system in the plan to prevent dishonesty, and implement it, and regularly review and revise the pre-disclosure plan?			(III) The Company has formulated various preventive measures in accordance with the ethical management operating procedures and behavior guidelines and has a dedicated unit for implementation and supervision. At the same time, there is a reward, punishment, and appeal system. Any violation of regulations shall be handled by the human resources, legal affairs and other relevant units in accordance with the law.	No major difference
II. Implementation of Ethical Management (I) Does the Company assess a trading counterpart’s ethical management record and expressly state the ethical management clause in the contract to be signed with the trading counterpart?			(I) Rigorous evaluation mechanisms and procedures are put in place before establishing a business relationship between the Company and its counterparties. Furthermore, it considers the legality of the target and whether there is a record of dishonest behavior. At the same time, when signing the contract, its content includes compliance with the ethical management policy, Afterward, when business dealings or cooperation partners are found to have dishonest behavior, they immediately stop business dealings with them and list them as objects of refusal.	No major difference
(II) Has the Company set up a special unit under the board of directors to promote corporate ethical management, and regularly reports (at least once a year) to the board of directors on its ethical management policies and plans to prevent dishonesty and supervision and implementation?			(II) The Company's human resources unit is responsible for the formulation and supervision of the ethical management policy and prevention plan, ensuring the implementation of the ethical management code, and reporting to the board of directors once a year.	No major difference
(III) Has the Company made policies for the prevention of the conflict of interest, and provided the channels for expressions, and has it properly implemented this system?			(III) The company has formulated its "Ethical Operation Procedures and Guidelines." Among directors, managers, and other interested parties who are present or attend as non-voting delegates to the board of directors, when they have an interest themselves or the juristic persons they represent, they may state opinions and answer queries but shall not participate in discussions and voting.	No major difference
(IV) Has the Company established an effective accounting system for the implementation of ethical management, internal control system, and the evaluation result of the risk of dishonesty by the internal audit unit, to formulate relevant audit plans, and check the compliance with the plan to prevent dishonesty, or entrusted an accountant to perform the audit?			(IV) The Company has established an effective "Accounting System" and "Internal Control System." Auditors regularly check compliance with the internal control system in accordance with the annual audit plan and prepare an audit report for the board of directors.	No major difference
(V) Has the Company provided internal and external training on topics of ethical corporate management at regular intervals?			(V) The Company organizes education and training on integrity management at least once a year or sends promotional materials through email to allow recipients to fully understand the Company’s integrity management policies, preventive plans, and the consequences of violations of dishonest behavior. Simultaneously, through the course arrangement of the training department, all employees are selected at irregular intervals for guidance on relevant laws and regulations.	No major difference
III. Operation of the Company's reporting system (I) Has the Company established substantive systems for reporting and rewards for facilitating the reporting of unethical practices and appointed designated persons for dealing with the persons being reported?			The Company has formulated specific reporting and reward systems in the "Work Rules,” "Code of Ethical Conduct for Employees," and "Code of Ethical Management," and established convenient reporting channels. Furthermore, depending on the circumstances of the report, management will assign a special unit to handle it.	No major difference
(II) Has the Company established standard operating procedures for the investigation of the reported matters, follow-up measures to be taken after the investigation is complete			The Company has specified operating procedures and related confidentiality mechanisms in the "Code of Ethical Conduct for Employees" and "Code of Ethical Management."	No major difference
(III) Has the Company taken measures to protect whistle-blowers from retaliation due to reporting?			The Company prudently handles the identity of the informant and the content of the report and keeps it confidential.	No major difference
IV. Strengthening Information Disclosures (I) Has the Company disclosed the contents and implementation effectiveness of the Ethical Corporate Management Best Practice Principles on its website and the Market Observation Post System?			The Company has formulated a code of practice for ethical management and discloses the job title, name date of violation, the content of violation, and handling of violations on the Company's internal website.	No major difference
V. If the Company has established its own ethical corporate management best-practice principles in accordance with the "Ethical Corporate Management Best-Practice Principles for TWSE/TPEX Listed Companies," please describe its current practices and any deviations from the Best Practice Principles: No major differences.
VI. Other information that enables a better understanding of the Company's ethical corporate management: (e.g. review and amendments on the ethical corporate management best- practice principles established by itself): None.