Corporate Sustainability

Employee Interests

1. High emphasis on labor rights and human rights standards

To maintain each employee's human and labor rights, SPIL referred the Electronics Industry Responsible Business Alliance (RBA) as its internal management principle, and formed a cross-department work team that includes environmental safety and health, human resources, procurement, finance, legal, and audit units fulfills our corporate social responsibility.

SPIL labor and human rights standards are as follows:

2. Promote Good Employer and Employee Relationship

To promote harmonious employer and employee relationship, employment contract are executedbetween SPIL and every employee, and provide various communication channels.

Regular employer and employee meetings are periodically convened. Each facility shall have designated personnel who listen to employees' thoughts and recommendations. Siliconware Technology (SuZhou) Limited employees are 100% guaranteed by collective labor contracts. If major changes occur at work (such as change in facilities and job position) the company will communicate with employees in advance.

3. Convenient and Unimpeded Complaint Channels and Employee Communication

SPIL has sound communication channels to facilitate adequate expression of employee issues and real-time communication with the management level to create a work environment characterized by harmonious labor-management relations. We have designated dedicated liaison personnel who assist employees and listen to their opinions. Utilized feedback channels include the following:

Diversity, Equity and Inclusion Declaration

SPIL provides customers with professional IC packaging and testing services. At the same time, it is committed to pursuing sustainable development and establishing a workplace culture of diversity, equity and inclusion.

SPIL prioritizes professional competence and suitability in recruiting, hiring and career development of its employees, and provides equal employment and learning opportunities to every employee. Regardless of gender, age, appearance, physical or mental disability, nationality, race, ethnicity, religious beliefs, political stance, sexual orientation, or marital status, all employees can develop appropriately in the company, give full play to their strengths, and jointly pursue corporate and personal growth.

SPIL encourages employees of different backgrounds to respect each other, create a diverse and inclusive environment, and prohibit any form of discrimination and harassment. We believe that by injecting innovative thinking into diverse employees and enhancing international vision, we can continue to create competitive advantages for the company. Through research and innovation, we can achieve the goal of value integration and achieve the mission of "winning customer trust and creating a technological future together."

Human Resource Management

1. Training development

A comprehensive training and development system has been established to achieve the Company's talent cultivation goals, and provide abundant and diversified learning opportunities and environments. The goal is to provide all staff members with a better understanding of training concepts and thereby enable them to adapt to future development directions of the Company, and turn them into valuable professional and management talents.

Therefore, SPIL devises comprehensive talent cultivation plans according to department goals, work tasks, and personal development needs. The ultimate goal is to offer adequate training courses that meet the needs of each employee. The training system is divided into the following two dimensions:

(1) Training system for new hires: Standardized training design, implementation of general education courses and orientation training for new hires, strong emphasis on concern and care for newcomers to facilitate their rapid assimilation into the organizational culture.

(2) Training system for current employees: On-the-job training in the seven dimensions of technology, quality, management, production, IT, EHS, production planning/industrial engineering is administered in accordance with the requirements of individual units to ensure that the quality of manpower conforms to job requirements and facilitate personal growth.

2. Employee Career Development

As of 2011, SPIL has identified different focal points of training and competence development in line with managerial and engineering development needs to achieve a perfect synthesis of individual career development and training planning. A training blueprint has been designed for engineering positions to give co-workers a clear understanding of training courses and professional development paths at each stage and thereby realize training cultivation goals.

This training blueprint is revised on a regular basis with a view to optimizing employee career development, special training courses for newly hired engineers and first-line managers. In addition to satisfying the training needs of each unit, all co-workers gain a clear understanding of their future career development paths, and constantly enhance the skills and abilities required for continued employment. This also involves the formulation of lifelong learning plans.

3. Learning International Languages

In line with globalization trends, international language learning and proficiency training is of paramount importance. SPIL has been promoting English learning activities and courses for many years. In addition to existing training courses (Advanced TOEIC course, Practical English), the Company provides a Live ABC online learning platform to enable employees to engage in learning without temporal or spatial limitations. These learning resources are widely promoted through Intranet and bulletin board announcements, event posters, and the online learning platform. The goal is to provide every company member with information on relevant activities with the ultimate goal of enhancing the English proficiency of our staff members.

4. Forming a Learning Environment

SPIL hopes to form a learning environment that can improve employees' voluntary learning space and atmosphere, especially when planning the learning bulletin board in the training space. Main topics include know technical knowledge, activity information, and course information. Employees can use extracurricular time to learn new knowledge naturally. This can intangibly pass down cultural and value perspectives and gradually build value and recognition.

5. Comprehensive Performance Management System

Performance appraisals are conducted on an annual basis to facilitate the achievement of the company, departmental, and individual goals and gain a full understanding of employee work performance. Upon self-assessment and soliciting the opinions of indirect/backup or project supervisors by the immediate supervisor, performance-related interviews are conducted with subordinates to enhance work performance and provide career planning counseling. Appraisal items include work task execution results, moral character, and continued improvements. Appraisal results serve as a key reference for the award of performance-related bonuses, employee remuneration, promotions, salary increments, and talent training. In addition, supervisors assist employees with unsatisfactory performance in the formulation of guidance plans. Work instructions and training are provided and job transfers are arranged if deemed necessary to enhance employee skills and performance.

Talent Attraction and Retention

Our continued growth relies on the ongoing contributions of our employees. "Talent" is therefore, our most important asset. Active hiring, incentives, and retention are the highest guiding principles of talent recruitment. Talent attraction methods including the encouraged pursuit of advanced training, provision of a safe and healthy environment, supportive and harmonious labor-management relations, a compensation system characterized by profit sharing, and family-friendly measures and subsidies are paired with lawful, transparent, and fair talent selection to ensure optimal utilization of talent for suitable positions and thereby enable the Company to maintain its competitive edge in the face of global challenges and competition.

SPIL complies with the Labor Standards Act, the Act of Gender Equality in Employment, the Employment Service Act and other applicable laws and regulations. Local residents in the operating area are the priority target for recruitment. By expanding the scope of industry-academy cooperation, SPIL promotes internship programs, industry-academy collaboration classes, scholarships for potential talents, and expanded employment of foreign students for targeted core groups. SPIL has also established a long-term stable and quality talent network, and regularly reviews the salary standards in the market to ensure competitive salaries. In addition, we continue to develop in overseas English-speaking talent market to enhance the diversity of our recruitment targets and our ability to compete internationally.

1. Hiring and assistance for physically disabled employees

SPIL has placed high emphasis on the employment of individuals with mental or physical disabilities over many years. The Company cooperates with local employment service stations and  Shenghui Competency Development Center in an effort to provide full assistance for such job seekers and help them find the most suitable position in the Company. The People with Disabilities Rights Protection Act stipulates that one disabled person must be hired per 100 employees. Top executives have issued instructions that the target must be set at 10%, which exceeds the aforementioned legally prescribed quota for the employment of disabled persons (not applicable to the Siliconware Technology Limited). Over the past five years, this quota has been constantly exceeded with the goal of fulfilling the Company’s corporate social responsibility by looking after the families of disabled workers and providing job opportunities for them. In 2023, the hiring ratios for individuals with disabilities were as follows: 45% with physical disabilities, 31% with visual, hearing, or speech impairments, 10% with major organ disabilities, and 14% with other types of disabilities. At the same time, the Company has implemented a mutual care system and offers monthly disability allowances for employees who hold disability cards to ignite their passion for their work.

2. Thoughtful unpaid parental leave measures

SPIL actively supports the unpaid parental leave policy of the government through the adoption of the following five major measures: "job guarantee", "substitute manpower", "application for labor insurance allowances", "resumption & handover period" and "early application for resumption of duties". Since the official promulgation and enforcement of the unpaid parental leave system on March 8, 2002, the number of applicants has gradually increased. As of the end of 2023, over 3,000 employees have applied for unpaid parental leaves, which represents a top ranking among domestic enterprises.

3. Remuneration and welfares

(1) Market-oriented compensation system

The compensation package includes the base salary, allowances, bonuses, and employee remuneration. Market-oriented compensation standards are adopted based on factors such as job descriptions, core skills, educational and professional background, performance, market conditions, the future development direction of the Company, retention of outstanding employees, and shareholder rights and interests. The Company strictly prohibits disparate treatment based on gender, age, ethnicity, religion, political beliefs, and marital status. Employee compensation in Taiwan conforms to or exceeds minimum wage standards set forth in the Labor Standards Act, whereas salaries and benefit packages for employees in overseas locations conform to local laws and regulations.

(2) All-inclusive insurance policy

SPIL provides every employee with insurance pursuant to local laws and regulations. In Taiwan, the Company not only provides labor and national health insurance for every employee pursuant to the relevant laws but also offers a group insurance option. Group insurance encompasses life insurance, accident insurance, medical insurance, occupational accident insurance, and cancer insurance. Family members of employees are eligible to participate in group insurance plans at discounted premiums significantly lower than the market rate. The goal is to extend care to the family members of employees and provide insurance coverage for Caesarian sections and hospital stays of female employees.  In response to the COVID-19 epidemic, the Company also covered its employees under the COVID-19 Prevention insurance. All employees enjoy full coverage and can focus on their work without any worries or concerns.

(3) Sound pension system

Taiwan has a new and old retirement system. For colleagues that chose the new system, 6% of their salaries are saved in an individual account at Bureau of Labor insurance. For employees under the old system, and for employees that chose the new system but has seniority from the old system, a pension fund supervisory committee was established according to law to see to it that a 2% labor retirement fund is saved to ensure colleagues' retirement life.

Employee caring

1. Health care

A healthy workforce is the most valuable asset of each enterprise. Healthy and happy employees bring creativity, efficiency, productivity, and profitability to the Company. SPIL has therefore made an ongoing commitment to protecting the health of its employees.

2. Health promotion

Annual health promotion activities are planned in coordination with NPOs mainly based on employee health check analysis results and employee demand survey results pursuant to the Occupational Safety and Health Act. The main benefit lies in the provision of health information and promotion of healthy behavior and thereby achieve the goal of disease prevention.

3. Promotion of work-life balance

SPIL is firmly committed to providing its employees with various convenient services and organizing diversified activities including get-togethers, seminars & lectures, outdoor activities, movie appreciation events, and environmental protection and charity events to enhance their work efficiency and results, allow them to share more time with their families, and enable them to participate in social and exercise activities. The ultimate goal lies in the maintenance of work-life balance and protection of the physical health of employees in their spare time.

Safe work environment

Silicon Precision Industries acquired the certification of new “ISO 45001 occupational health and safety management systems” standards. The management scope thereof includes all workers controlled by the organization, implementation works or operation related activities as described in the following Table. The Company has, according to the spirit of new ISO 45001 standards, established occupational safety and health management rules in order to minimize the occurrence of occupational injury through continuous improvements and establishment of projects. Besides, SPIL also hold occupational safety and health facilitation activities, educational trainings and emergency response drills, hoping to ducate all workers the right safety and health concepts and knowledge. The purposes of above measures are to reduce employees' operating risks; implement environmental safety and health management; and create a quality workplace in order to create safety awareness and culture, enhance employees' work efficiency and quality and fulfill the Company's corporate social responsibilities.

1. Reducing work-related injuries

SPIL's production units have collectively formed a project team designated to lowerwork-relatedinjuries in facilities through themed routine inspections.

The teamwouldannounceenvironmental safety and health requirements and carry out themed audits toreview,discuss,and fan-out the issues on a monthly basis.

2. Emergency Responses

SPIL has already established the relevant emergency plans for possible disasters (such as earthquakes, typhoons, floods, fires, or chemical spills) as well as emergency response teams at each plant. To enable the response team members to become familiarized with the emergency response procedures and the relevant equipment use methods, and emergency team training is held once every six months.

To enhance the response capacities, the regional teams shall identify possible emergencies that may occur on an annual basis and conduct scenario drills (firefighting, chemical spill rescue, etc.). The subjects of the drills include stakeholders such as visitors, contractors, and the clients' personnel stationed at the plant. To enhance the colleagues' emergency refuge familiarity and hasten evacuations during earthquakes, fires, and other disasters; SPIL has started to implement employee evacuation drills for the respective plant buildings, levels, and rooms.

3. Chemicals management

(1) Cloud management system for chemicals

In 2019, we have introduced a cloud management system for chemicals. With over 1,000 safety data sheets (SDSs), this system has a complete database that is managed by dedicated personnel and connected to the list of chemicals and the floor plans of our production facilities. In the meanwhile, chemical control banding (CCB) is also included in the systematic management that fulfill the chemical management requirements of Occupational Safety and Health Administration (OSHA), National Fire Agency (NFA) and Ministry of Economic Affairs (MOEA).

The system also has the function of “automatic classification of controlled substances”, allowing the Company to precisely determine controlled substances that are listed by the customers in order to fulfill their respective expectations and demands.

Apart from reducing at least 50% of the time required by manual works, the system has, in overall, obviously enhanced the management of chemical data with respect to their compliance with regulations, immediacy and integrity.

(2) Audit of chemical SDS

In 2019, through the audit mechanism of Green product Management (GPM), SPIL has requested suppliers to ensure the compliance of SDS with relevant decrees and regulations. It is especially so for the CAS No. Exposure Limit of hazardous substances, which is one of the key points of review. It is our expectation that we will be able to minimize potential risks derived from unknown objects and further enhance our chemical management.

(3) Registration of chemical substances

Controlled and priority management chemicals: SPIL does not use any highly hazardous, controlled chemicals. The declaration of first and second stage designated lists of priority management chemicals was finalized in September 2020.

4. Monitoring of the operating environment and exposure assessment

With the assistance of industrial and mining technicians, the Company already drafted the sampling strategy and plan by laws. In 2023, the Company's operating environmentassessment result was < 1/2 PEL (including operations of special health hazards: Operationsrelated to chemicals classified as hexane, arsenic, manganese and its compounds, chromic acidand its salts, nickel and its compounds, mercury and inorganic compounds), which is consideredas the level-1 management(< 1/2PEL). The Company therefore continue to maintain currentcontrol and management measures to ensure that all of our employees work in a healthy and safe environment. All of the chemical classification records will be successively establishedin the chemical cloud system to implement control banding.