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

Assessment Item	Implementation Status			Deviation from "Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies" and Reasons
Assessment Item	Yes	No	Summary Description
1. Has the Company established a governance structure to promote sustainable development and set up a full-time (contractor) unit to promote sustainable development, which is authorized by the board of directors to be handled by senior management and supervised by the board of directors of the situation?			The President's Office coordinates the implementation of sustainable development related operations, and the President leads each department to form an executive team to formulate sustainability goals, CSR development strategies and guidelines, and then to cooperate and implement the implementation plan according to the responsibilities of each relevant department, and to report the results at the Board of Directors' meeting.	Compliant with the Code of "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies"
2. Does the Company follow a significant principle to conduct risk assessments on the environment, society, and governance (ESG) related to company operation, as well as setting relevant risk management policy or strategy?			(1) The Company has formulated relevant operating specifications for various risk factors such as "Corporate Governance Best Practice Principles", "Ethical Corporate Management Best Practice Principles", and "Guidelines for the Adoption of Codes of Ethical Conduct". Based on this, implementing risk management and promoting corporate governance proactively to achieve the purpose of enhancing Company’s reputation, strengthening the risk culture, and providing strategic management decision-making advice. (2) The Company has conducted risk assessment on environmental, social and corporate governance issues related to the Company's operations in accordance with the principle of ESG materiality. Based on the results of the questionnaire analysis of ESG issues to stakeholders, the Company have prepared a sequence of material issues and management policies in line with its operational objectives, as described in "Note: CSR Material Issues" at the end of this page.	Compliant with the Code of "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies"
3. Environmental Issues
(1) Has the Company established a suitable environmental management system according to its industrial characteristics?			The Company is committed to implementing and complying with the RBA Code of Conduct, taking responsibility for environmental issues, minimizing adverse impacts on society, the environment, and natural resources during the manufacturing process, and protecting public health and safety. In accordance with the Conflict-Free Mineral Smelter Program (CFSP), the Responsible Business Alliance, (RBA) and the Global Sustainability Initiative (GeSI), we have conducted a survey of conflict minerals starting in 2021 and required our suppliers to submit a "Declaration for the Non-Use Hazardous Substances" to certify that the metals used in their products do not come from conflict areas, in order to support our social responsibility philosophy of not using conflict minerals. The social responsibility concept of not using conflict minerals is supported by real actions. All of our major suppliers have passed 100% of the following environmental related international certification standards and regulations. The Company has disclosed information and policies related to environmental responsibility on its website. (https://www.asmedia.com.tw)	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
(2) Is the Company striving in promoting efficiency of utilizing various resources, as well as regenerated materials that impose low impact to the environment?			In order to fulfill the CSR of the Company and promote economic, social and environmental progress, we have adopted four sustainable strategies: low-carbon mission, recycling, social inclusion and value creation, and sustainable manufacturing principles, and have adopted them as principles to promote environmental protection with our business partners and stakeholders, including suppliers, contractors, customers, joint ventures and communities. In the case of mergers and acquisitions, it is also appropriate to follow the spirit of this policy to perform due diligence and disclose specific environmental commitments on the official website. Improve product eco-efficiency and introduce innovative R&D technologies and management. Control and limit the use of hazardous substances in manufacturing materials and components. Develop recycled materials or extend the product life cycle. To follow the policy of mineral procurement management and green product standard to promote green procurement. To give priority to the use of materials and equipment developed by the upstream/downstream supply chain, taking into account both customer needs and green design, in order to enhance the technology and competitiveness of the overall supply chain. Prioritize the use of recyclable, low environmental impact materials or reusable packaging materials.	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
(3) Does the Company evaluate potential risks and opportunities brought by climate change, and take response measures to climate-related issues?			The Company is committed to responding to the current global trend of energy saving and carbon reduction, in order to fulfill the responsibility of global citizens to protect the environment. In response to the business risks brought about by climate change, each department takes stock of the climate-related risks involved in its own business scope, and then reports and consolidates them to the company president. The Task Force on Climate-related Financial Disclosures (TCFD) framework identifies potential climate change risks and opportunities through the four core elements of "governance," "strategy," "risk management," and "targets and goals," and grasps the impact and influence of climate change on the company's operations, and prepares relevant strategies and measures to prevent risks and harm caused by climate change. (Please refer to CSR report for specific measures and details).	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
(4) Does the Company compile statistics of greenhouse gas emissions, water use, and total weight of waste in the past two years, and does it have strategies for energy conservation & carbon reduction, greenhouse gas emission reduction, water use reduction, and other waste management?			The Company has implemented management policies for energy, greenhouse gases, water resources and waste. Please refer to CSR report for specific measures and details. The Company has followed the "Sustainable Development Guidemap for TWSE/TPEx Listed Companies" plan and approved by the Board of Directors to complete the greenhouse gas inventory and verification planning schedule, and expects to complete the greenhouse gas inventory and verification by 2029.	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
4. Social Issues
(1) Does the Company formulate appropriate management policies and procedures according to relevant regulations and the International Bill of Human Rights?			The Company has followed the relevant content of the "United Nations Universal Declaration of Human Rights," formulated and disclosed its human rights policy statement, and defined its working rules and internal management practices. The Company promises to implement and comply with the RBA's relevant code of conduct, such as the following： Respect for human rights of workers: including respect for freedom of employees, unlimited freedom of assembly, prohibition of any form of forced labor, no child labor, provision of safe and healthy working and living conditions, ensuring the safety and health of employees, prohibition of any form of discrimination, prohibition of any inhumane treatment, and wages, benefits and working hours for workers in accordance with the law. To provide a healthy and safe working environment for workers, including ensuring occupational safety, providing emergency preparedness programs, managing occupational injuries and illnesses, and maintaining public health. Follow the highest standards of ethics, including honesty, integrity, clean operations, no improper earnings or bribery, benefit avoidance, respect for intellectual property rights, an anonymous complaint or whistleblower system to protect the confidentiality of whistleblowers, and prohibition of retaliation. All of our major suppliers have passed 100% of the following socially relevant international certification standards and regulations (please refer to the CSR report).	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
(2) Does the Company have reasonable employee benefit measures (including salaries, leave, and other benefits), and do business performance or results reflect on employee salaries?			In addition to the Company’s leave 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. Other welfare measures: birthday gift vouchers, Labor Day gift vouchers, Mid-Autumn Festival gift vouchers, implementation of employee stock option certificates, and issuance of restricted stocks. There is also a welfare committee that provides subsidies for marriage, funerals, hospitalization, and child birth. In order to promote the physical and mental health of employees, we have created a number of sports-related clubs to alleviate the work pressure of employees, and we have been providing semi-annual subsidies to evaluate the percentage of employees participating in these clubs. The average percentage of employees participating in 2019 was 40%. In order to relieve the heavy pressure of various projects at work and to uphold the spirit of social support, we arrange for visually impaired massage therapists to provide massage services at specific times in the company.	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
(3) Does the Company provide a healthy and safe working environment and organize training on health and safety for its employees on a regular basis?			The Company does not have a factory and the office premises are part of a leased commercial building in the city, and each floor is equipped with a strict security system. In addition to the access control for personnel entering and exiting, we also have a complete fire protection system and conduct regular fire equipment maintenance and drills once a year to maintain the safety of our employees' working environment. We also provide regular health checkups and group insurance for employees every year, and arrange for external lecturers to conduct health or safety courses. In order to implement occupational safety and health management thoroughly and prevent occupational disasters comprehensively, our company will focus on the following 7 major aspects: Safety and health management: access control/visitor control. Safety and health education and training: digital learning platform - disaster prevention and first aid education videos. Standard operating procedures and work safety analysis: for dangerous work, set up hazard work practice guidelines. Safety and health inspection: regular maintenance, inspection and disinfection of office equipment/ environment. Emergency response: Regularly conduct disaster prevention drills. Health management and promotion: health examination and consultation. Safety and health activities: health education and health promotion activities. Please refer to the CSR report for details of the above implementation measures.	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
(4) Does the Company provide its employees with career development and training sessions?			Based on the organization and function of each department, the Company proposes annual education and training requirements and prepares budgets every year, and intermittently hires external lecturers for internal education and training. In 2021, we have launched an e-learning platform, which will be supplemented by external professional training courses according to the characteristics of job duties to enable our employees to achieve organizational performance and functional development.	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
(5) Does the Company comply with relevant regulations and international standards information of customer health and safety, customer privacy, and marketing and labeling its goods and services, and has it established consumer rights protection policies and complaint procedures?			The marketing and labeling of our products and services are handled in accordance with domestic laws and regulations, as well as the relevant laws and regulations of the countries in which our customers are located, including the environmental requirements of each product and the compliance with product patents. In addition, the Company has always attached importance to customer feedback and maintains good communication with customers. We have also set up customer communication channels and response methods on the company's official website, as well dedicated service procedures for handling customer feedback to ensure the best service performance for our customers and to achieve the purpose of protecting their rights and interests.	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
(6) Does the Company have a supplier management policy, require suppliers to comply with regulations on environmental protection, occupational safety and health, and labor rights, and what is its implementation status?			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. The contract stated 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 its supply chain management policy in the CSR report: Suppliers will be evaluated annually and audited from time to time according to the supplier management procedures, and the Quality Assurance department will conduct the evaluation according to the evaluation criteria of delivery quality, engineering capability, and ESG sustainability, etc. 100% of the suppliers have complied with our supplier management policy in 2021. Suppliers are required not to purchase and not to use Conflict Minerals. We have conducted Conflict Minerals surveys and investigations in accordance with the Conflict Free Smelter Program (CFSP), the RBA Code of Conduct, and the Global Sustainability Initiative (GeSI) to ensure that suppliers comply with the Company philosophy of not using Conflict Minerals. All major suppliers have passed various international certification standards and regulations.	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
5. Does the Company reference internationally accepted reporting standards or guidelines, and prepare reports that disclose non-financial information of the Company, such as sustainability development report? Do the reports above obtain assurance from a third party verification unit?			The Company has published its Corporate Sustainability Report in 2021 with reference to international standards such as the Climate Relevant Financial Disclosure Framework (TCFD). The report was prepared in accordance with the principles of inclusiveness, sustainability, materiality and completeness of reporting, as well as the quality principles of accuracy, balance, clarity, comparability and timeliness. This report has not yet received confirmation or assurance from a third party verifier. In addition to adopting the TCFD disclosure framework, the 2021 CSR report will incorporate the Sustainability Accounting Standards Board (SASB) and GRI Standards 2021.	Compliant with the Code of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"
6. If the Company has its own code of practice for sustainable development based on “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, please describe any discrepancy between the Code and its implementation: The Company currently does not have a code of practice for sustainable development. However, in daily company operations, we are committed to fulfilling corporate social responsibility, including active participation in environmental protection, social emergency relief, social welfare, and other activities. Relevant operating conditions are disclosed in the annual report.
7. Other important information to facilitate better understanding of the Company’s corporate social responsibility practices: (1) Environmental protection: Our Company is a professional IC design company with independent research and development and design as its primary operating activities. Our main products are produced by outsourcing which belonged to the fabless IC design industry (no fab). 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 "Restricted Product Substances Control Procedures" stipulated by the Company. Besides not using hazardous substances, we also specify the use of safety materials that meet international standards. In addition, the Company obtains laboratory reports provided by the supplier in a timely manner and conduct audits on the suppliers on related matters. We have signed a declaration of non-use of hazardous substances with each of our suppliers and use safe materials and parts that are certified by environmental standards and complied with RoHS, PFOS, Halogen Free, and REACH SVHC standards. Our Company have been promoting energy conservation and resource recycling, including practical measures such as waste separation, full adoption of energy-efficient lamps, lighting saving, air conditioning usage hours control and temperature control. We have set short/medium/long-term goals related to environmental policies, including 2% per capita electricity and 1% per capita water savings per year, as well as the reduction of resource consumption in the office as an important indicator. Our Company continues to implement paperless campaigns and uses online electronic signature control for internal processes and other form documents to reduce paper waste and contribute to the global environment. Respond to environmental protection activities: Do One Thing for the Tamsui River, Earth Hour. (2) Social welfare and services: Medical support: To improve the quality and environment of medical care in the country through the sustainable operation of donated medical institutions and foundations. Social welfare: a. Emergency relief. b. Education in rural areas: Support children in rural areas to participate in relevant camp activities. c. Resource recycling: recycling of used computer resources to reduce digital gap and disparity. d. Donation and support from public welfare organizations. Foster and cultivate: Our Company is dedicated to public welfare and sponsors research funds for various universities and medical institutions every year. We actively negotiate with various universities on industry-academia cooperation programs, sponsor overseas competitions and support international seminars. Through the sharing of practical experience by industry professionals, we provide students with the opportunity to familiarize themselves with the industry's technical expertise during their studies, and expand the horizons of domestic students through sponsoring overseas competitions and organizing international seminars. We hope to establish a campus development program so that students can gain more relevant experience after graduation or further training and give back what they have learned in the workplace. The Company not only selflessly shares to cultivate talents for the industry, but also hopes to improve the employment rate of young people through campus recruitment. (3) Consumer rights: The Company upholds the principle of integrity and professional services, and has a dedicated unit to handle customer feedback to ensure the best service performance and achieve the purpose of protecting the rights and interests of customers. The Company has set up a stakeholder section on the official website to provide a dedicated email address for communication and contact with stakeholders. For any questions, suggestions or even complaints on material issues, the Company can maintain a smooth and good interaction through the email address announced on the official website. (4) Human rights: 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. 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. 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. 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. (5) Safety and health: Our Company is an IC design company and have not set up 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. 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. 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 every quarter to enhance personnel disaster response capabilities and reduce disaster losses. 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. The Company’s office area is completely smoke-free. We are committed to promoting workplace smoke prevention and proactively implementing workplace smoke-free measures. We have obtained the Healthy Workplace Self-certification-Smoke Harm Prevention Standard issued by the National Health Bureau, establishing a working environment free from second-hand smoke. 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. (6) 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.

Note：CSR Material Issues

Risk Assessment Items / Issues	Risk Management Strategies or Policies
Legal Compliance	Based on the philosophy of honesty, transparency and responsibility, we will establish management policies based on integrity and sound corporate governance and risk control mechanisms with reference to the “Company Act”, the “Securities and Exchange Act”, the “Business Entity Accounting Act”, the “Political Donations Act” and the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” or other business practices, in order to achieve the goal of sustainable corporate development.
Innovative R&D and Product Competitiveness	• We will continue to invest in nurturing our R&D professionals to innovate and advance in high-speed technology products, and maintain close cooperation with major international manufacturers and related supply chains. • As a leader in high-speed interfaces, we not only focus on innovative research and development to keep abreast of each generation's specification changes, but also actively expand our markets, focusing on custom product partnerships and market development beyond personal computers.
Operational Performance	• Maintain close cooperation with international manufacturers and related supply chains to enable the Company to outperform in its operations and product development and applications. • Improve operational performance and pursue sustainable development goals.
Corporate Governance	• Enhance the functions of the Board of Directors to enhance the company's reputation, strengthen the risk culture, and provide strategic management decisions. • Rationalize and allocate the rights and responsibilities of all shareholders, management team, and stakeholders.
Risk Management	• The Company maintains conservative and prudent management principles and does not engage in high-risk and speculative activities. • Identify common risks and develop strategies to manage them to avoid losses to the Company.
Nurturing Talents	• In collaboration with major universities, we develop projects and provide research funding, and sponsor overseas competitions to broaden the horizons of domestic students and nurture future young talents. • Through the sharing of practical experience with industry professionals, we provide students with the opportunity to familiarize themselves with the professional technology and knowledge of the industry and nurture professional talents for the industry.
Supply Chain Management	• In addition to the important inspection of our suppliers' records of environmental and social impacts, all products must be provided in compliance with environmental standards. • If there is any violation of the contract or the law, we shall be liable for compensation depending on the severity of the situation.
Customer Satisfaction	• We provide high quality products to our customers and maintain good customer relations in accordance with our management philosophy.
Environmental Sustainability	• In addition to the environmental protection laws and regulations, the production materials of the outsourced factories must comply with the "Restricted Product Substances Control Procedures" stipulated by the company. • We continue to promote energy conservation and resource recycling, including the implementation of practical measures such as garbage sorting, full adoption of energy-saving lamps, light saving, control of air-conditioning usage hours and temperature control, and paperless campaigns. • The Company President convenes relevant units to jointly formulate sustainability goals, CSR development strategies and guidelines, and reports the results of implementation at the Board of Directors' meeting.