Corporate Sustainability

Dear SPIL stakeholders,

In the post-pandemic era, alongside the rise of emerging AI applications, global economic dynamics and human lifestyles have undergone profound changes. The domestic economy has experienced rapid cooling, exacerbated by factors like geopolitical tensions and inflation, which have introduced uncertainties into industrial development. Despite these challenges, SPIL remains steadfast in its customer-centric approach. To meet evolving customer needs, SPIL is expanding its production footprint both domestically and internationally, establishing new facilities in Erlin and Huwei, Taiwan, and in Malaysia. In addition to expansion efforts, SPIL is committed to sustainable development. In 2023, in collaboration with its parent company ASE Technology Holding Co., Ltd., SPIL achieved recognition for the eighth consecutive year as a leader in the "Semiconductors and Semiconductor Equipment Industry" by the Dow Jones Sustainability Indices (DJSI). This accolade underscores SPIL's ongoing commitment to environmental, social, and governance (ESG) principles, positioning it as a leader in sustainable practices within its industry.

Energy Saving and Waste Reduction: Advancing Towards Net Zero

Low-carbon sustainability is a continuous goal for enterprises. In our carbon management strategy, we are committed to reducing greenhouse gas emissions originating from operational activities through energy conservation and sourcing renewable energy. Aligned with the Science-Based Targets initiative (SBTi), our goal is to achieve a 35% reduction in Scope 1 and Scope 2 carbon emissions by 2030 relative to our 2016 baseline, and a 15% reduction in Scope 3 emissions compared to 2020. Ultimately, our aim is to achieve net-zero carbon emissions by 2050. In 2023, SPIL reported a greenhouse gas emission intensity (Scope 1 + Scope 2) of 0.171 tCO2e/K USD. Despite a slight increase due to new factory activations, this represents a 22% reduction from our baseline year, underscoring SPIL's ongoing dedication to energy conservation and carbon reduction efforts.

Addressing water resource scarcity induced by climate change is also a pivotal aspect of our corporate agenda. We have integrated water resource management as a crucial metric for sustainable development, implementing the ISO 46001 Water Efficiency Management System and adopting processes that promote water conservation and enhance water recycling technologies. Consequently, our total water withdrawal in 2023 decreased by 5% compared to the previous year, and we are targeting a 25% reduction in water withdrawal intensity by 2030 compared to 2023 levels.

On the aspect of waste management, by promoting source reduction and the circular economy, we implemented six reduction programs in 2023. These projects included process improvements to reduce the production of waste liquids, introducing resin adsorption methods to recover heavy metals, and using steam heat exchange to recover waste solvents. This circular economy approach aims to achieve environmental sustainability. In 2023, we successfully reduced waste by 3,809 tons, a 9.8% decrease compared to the previous year. The recycling and reuse rate of general waste (including energy recovery) reached 100%, and the resource recovery and recycling rate of hazardous waste increased by 6%.

Social Engagement and Giving Back to Society

Social engagement is a cornerstone of corporate responsibility. SPIL, which has taken root in Taichung over the course of four decades, remains committed to corporate social responsibility, with particular focus on social welfare, community engagement, and supporting arts and culture, aiming to foster societal advancement through concrete action.

The Family Assistance “100-Dollar” Club, initiated by SPIL employees, has amassed over NT$ 90 million in child support funds as of the end of 2023. Each year, more than 31,000 individuals contribute donations, which cover living expenses for over 3,000 children. Additionally, these funds sponsor scholarships; in 2023, 160 outstanding students from Taichung and Changhua received awards. The initiative also supports 302 economically disadvantaged children across Taiwan, facilitating their educational pursuits and promoting values of diligence, familial love, and community solidarity.

In addition to financial contributions, SPIL employees actively participate in voluntary activities through a dedicated volunteer club. In 2023, the club organized 11 events, such as celebrating the Dragon Boat Festival with elderly individuals living alone in partnership with the Huashan Social Welfare Foundation, and supporting the Joyce McMillan Social Welfare Foundation through a group purchase of dumplings. These endeavors raised a total of NT$1,020,013, collected and donated 6,736 items, and engaged 1,482 volunteers in meaningful community service efforts.The number of beneficiaries of our charitable initiatives has exceeded 7,124 to date.

Corporate Governance and Legal Compliance

At SPIL, stringent adherence to corporate governance standards and regulatory compliance is a fundamental commitment, underscored by the Company's steadfast policy of "no compromise on compliance." Every employee is accountable for upholding SPIL's code of conduct and adhering to pertinent laws and regulations.

SPIL prioritizes pro-active management from the source, conducting annual training and advocacy programs to enhance employee awareness of legal requirements and promote compliant behaviors. In 2023, regulatory authorities in environmental protection, occupational safety and health, and labor sectors conducted a total of 90 audits, with no significant violations reported.

Harnessing Industry Insights to Chart Sustainable Development

SPIL remains at the forefront of the industry by advancing AI packaging technologies. In response to the increasing demand for AI chips, SPIL continues to invest heavily in research and development, focusing on cutting-edge CoWoS and Fan-out packaging technologies. By leading in these markets ahead of its competitors, SPIL aims to expand its capabilities to deliver smarter and more competitive product solutions. This initiative not only meets market demands but also fosters economic growth, creating employment opportunities and bolstering local prosperity.

Chairman