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Lingsen Precision Industries, Ltd.
2013 Corporate Social Responsibility
Report
By: General Manager’s Office
Date: 2014/10/31
Page: 2/74
Contents
OVERVIEW ................................................................................................................................................. 3
1 MANAGEMENT’S COMMITMENT ............................................................................................... 4
1.1 SOME WORDS FROM MANAGEMENT ............................................................................................... 4
1.2 OUR CORPORATE SOCIAL RESPONSIBILITY ..................................................................................... 4
2 COMPANY PROFILE ........................................................................................................................ 5
2.1 ABOUT US ....................................................................................................................................... 5
2.2 PHILOSOPHY ................................................................................................................................... 6
2.3 BUSINESS PROFILE .......................................................................................................................... 7
2.4 MARKET OVERVIEW ..................................................................................................................... 12
3 CORPORATE GOVERNANCE ...................................................................................................... 13
3.1 PRINCIPLES ................................................................................................................................... 13
3.2 PROFILE ........................................................................................................................................ 13
4 INTERACTIONS WITH STAKEHOLDERS ................................................................................ 17
5 PERSONNEL TRAINING AND HARMONY AND SAFETY IN THE WORKPLACE............ 21
5.1 SALARY AND BENEFITS ................................................................................................................. 21
5.2 EQUAL EMPLOYMENT OPPORTUNITIES, LABOR RESTRICTIONS ..................................................... 26
5.3 OCCUPATIONAL SAFETY AND HEALTH .......................................................................................... 30
5.4 EDUCATIONAL TRAINING .............................................................................................................. 32
5.5 LABOR RELATIONS ....................................................................................................................... 34
6 ENVIRONMENTAL PROTECTION.............................................................................................. 36
6.1 ENVIRONMENTAL MANAGEMENT ................................................................................................. 36
6.2 CARBON MANAGEMENT ............................................................................................................... 39
6.3 GREEN PRODUCTS ........................................................................................................................ 46
6.4 THE MANAGEMENT AND PROCUREMENT OF RAW MATERIALS ..................................................... 48
6.5 AIR POLLUTION AND WASTE RECYCLING MANAGEMENT ............................................................. 49
6.6 WATER RESOURCE MANAGEMENT ................................................................................................ 52
7 CUSTOMER SERVICE AND SUPPLIER MANAGEMENT ...................................................... 56
7.1 CUSTOMER SERVICE AND SATISFACTION ....................................................................................... 56
7.2 SUPPLIER MANAGEMENT .............................................................................................................. 57
8 SOCIAL INVOLVEMENT ............................................................................................................... 61
8.1 COOPERATION BETWEEN INDUSTRY AND ACADEMICS .................................................................... 61
APPENDIX ................................................................................................................................................. 64
GLOBAL REPORTING INITIATIVE (GRI) G3.1 ............................................................................................ 64
INDEPENDENT ASSURANCE OPINION STATEMENT ..................................................................................... 73
Page: 3/74
Overview
◆ Scope
This report addresses matters regarding sustainable that are relevant to both our operation
development and stakeholders from 1 January 2013 to 31 December 2013. The discoveries herein
pertain to only our Taichung factory, where our Taiwan headquarters is maintained (any subsidiaries
in Taiwan and China are not included).
Any financial statements herein are expressed in NT dollars. This report represents our first
corporate social responsibility report, which, starting now, will be issued every two years. The next
report will be published in 2016.
The release of the information contained in this report is based on Global Reporting Initiative G3.1
(GRI G3.1). The content and structure of this report has been developed through physical analysis
of the issues concerning stakeholders. Please refer to GRI G3.1 in the appendix for reference.
◆ Assurance
In September 2014, we requested SGS Taiwan Ltd., an independent third party, to provide an assurance
opinion statement in accordance with the GRI G3.1 B+ application level.
◆ Contact us
Lingsen Precision Industries, Ltd.
No. 5-1, South 2nd
Rd., Taichung Export Processing Zone, Taichung City
Tel: +886-4-2533-5120
Fax: +886-4-2532-7904
E-mail: [email protected]
Page: 4/74
1 Management’s Commitment
1.1 Some Words from Management
In addition to steadily growing within our industry and continuously pursuing innovation
and R&D in order to increase operation performance, we believe in building strong
relationships through routine operations with employees, customers, shareholders, investors,
communities, and suppliers. By all cooperating with the philosophy of “Corporate Governance,
Corporate Commitment, Social Involvement, and Environmental Protection”, all of us can
contribute to creating a better life and safe environment for future generations. This year, we
are issuing our first corporate social responsibility report and have shared on our official
website the ways in which we promoted it, thus conveying our and the company’s efforts.
1.2 Our Corporate Social Responsibility
Our corporate social responsibility refers internally to “Corporate Governance”, which
means having the integrity to keep our promises to each stakeholder in the company.
Externally, it refers to being a “Corporate Citizen”, which involves “Corporate Commitment”,
“Environmental Protection”, and “Social Involvement”.
Regarding “Corporate Governance”, we continue to innovate and improve matters within
the company, strengthen communication between employees, and focus on corporate ethics,
employee educational training, and our performance system. With regards to “Environmental
Protection”, we have implemented pollution prevention, energy conservation and carbon
reduction programs, as well as sustainable operations outside of the company. As for “Social
Involvement”, the company and its employees regularly join together to actively participate in
charity events and volunteering. Our “Corporate Commitment” includes personnel training
and care, as well as our dedication to innovation and R&D.
Corporate
Governance
Corporate
Commitment
Environmental
Protection
Social
Involvement
Living Survival Life
Page: 5/74
2 Company Profile
2.1 About us
Established in 1973, our main operations include the “assembly, processing and testing
of integrated circuits and a variety of semiconductor parts”. Both our R&D and manufacturing
teams are renowned for their quality production lines and process reliability. Our sophisticated
assembly ability has been further verified by companies throughout the US, Europe, Japan,
and China.
Currently, the Taichung factory has 111,240 square meters, among which, 60,357 square
meters have been used for the production building of quad flat non-leaded packaging products
since 2013. Furthermore, the Liyuan factory in Ningpo, China has an additional 19,093 square
meters. Our factories have state-of-the–art, high-technology production facilities for advanced
assembly and testing, as well as the full capacity to manufacture such assembly products as
Dual Family, Quad Family, Under Lead Family, Optics Family, Discrete Family, and MEMS
products.
◆ Production and Operation Locations
Based in Taiwan, we have set up customer service locations in both Taichung, Taiwan
and California, US. Our head office is located in theTanzi District of Taichung City and our
production center is located in our Taichung factory.
Taiwan
TAICHUNG
Manufacturing
Customer Support
Head office
California
San Jose
Customer Support
Page: 6/74
◆ Company Profile
Name Lingsen Precision Industries, Ltd.
Establishment Date 1973
Industry Assembly and testing of integrated circuits
Head Office Taichung Export Processing Zone, Taichung
City, Taiwan
Chairman Yeh, Shu-Chuan
General Manager Yang, Shun-Ching
Total Number of
Employees within This
Report
2468 (2013/12/31)
Stock Symbol 2369 (listed on the Taiwan Stock Exchange)
Capital $3,801,023,440
2.2 Philosophy
By practicing the philosophies of “Innovation with a proactive attitude”, “Integrity &
commitment”, and “Excellence & sharing”, the entire company works together to take the
initiative to innovate in this industry, be honest and practical with customers, and promote
excellence among our colleagues, to thus create s win-win-win situation for the company, our
customers, and our employees.
Page: 7/74
2.3 Business Profile
2.3.1 Management Team
◆ Organization
General Manager’s Office: Plan business matters, inter-division operations, and short-, mid-,
and long-term strategies; establish regulations and promote company policies.
Occupational Safety Office: Propose, plan, supervise, and promote management happenings
related to safety and health and educate relevant departments regarding their implementation.
Management Division:
Human Resources Department: establish a safe and comfortable workplace for our
employees; provide personnel, recruitment, and training services; offer employee care;
encourage employees to partake in self-health management; prevent occupational accidents;
obey laws and regulations relevant to labor health; offer a friendly environment that is
conducive to employee health.
Facility Affairs Department: provide such precaution measures as those related to pollution
prevention, energy management, water resource management, and the environmental
management system.
Materials Control Department: develop a supplier management system, manage the
warehouse, and find and evaluate suppliers.
Finance and Information Technology Division
Finance Department: provide annual reports and any information related to the company’s
finances; assume responsibility for business matters related to environmental and charity
expenses.
Information Technology (MIS) Department: develop and utilize a resource planning
system, as well as system integration for the company’s information technology system.
R&D Engineering Division: research and develop innovative products based on eco-friendly
practices, energy conservation, and waste reduction while enhancing the product process and
quality ratio.
Shareholder’s
meeting
Board of Directors Audit Office
Supervisor
Remuneration
Committee
Chairman
General Manager
General Manager’s
Office
Manufacturing
Div
Finance and MIS
Div R&D Engineering
Div.
Business Div. Management Div. Quality Assurance
Div
HR Dept.
Materials Control
Dept.
Facility Dept.
Finance Dept.
MIS Dept.
R&D Dept.
Process Engineering
Dept.
Manufacturing Ⅰ .
Manufacturing Ⅱ
Testing
Manufacturing
Engineering Dept.
Equipment Dept.
Production Planning
Dept.
Business Dept.
Import & Export
Dept.
Quality Assurance
Dept.
Quality Control
Dept.
Occupational Safety
Office
Page: 8/74
Manufacturing Division: manufacture a variety of integrated circuits; assemble and test
optical products; maintain and improve the defect-free rate, offer care and educational training
to our operators.
Business Division: increase the company’s global market; carry out market analysis; maintain
good customer and business relationships.
Quality Assurance Division: plan and implement the company’s quality policy; maintain and
improve quality levels and standards.
2.3.2 Technology and R&D Profile
Beyond the products we have always traditionally assembled, we also mass produce
stack die, multi-chip modules, systems in packages, and MEMS packaging. Of these
additional products, the MEMS component has great potential because it is light, thin, and
compact, with a broad range of applications due to its functions of perception, calculation, and
action. Furthermore, we are currently mass producing MEMS accelerometers, pressure devices,
and microphones, all of which are main products for market growth. In order to respond to the
“Waste Electrical and Electronic Equipment Directive (WEEE Directive)”, the “Restriction of
the use of Hazardous Substance Directive (RoHS Directive)”, and the “Directive of
Eco-design Requirements of Energy-using Products (EuP Directive)” from the European
Commission, green production has also been introduced in our efforts to commit to
eco-friendly assembly.
2.3.3 Product Sales Area
Note: Sales of subsidiaries are not included.
Page: 9/74
2.3.4 Operation Performance
Unit: NT$ thousands
Item / Year 2009 2010 2011 2012 2013
Operating Income 4,916,157 6,373,783 5,821,560 5,802,458 5,528,873
Net income or loss for current period 269,302 788,519 402,995 379,699 361,394
Earnings per share (dollar) 0.79 2.17 1.09 1.01 0.97
Return on shareholders’ equity 5.05 13.37 6.43 6.2 5.74
Total assets 7,219,570 7,707,932 7,334,820 7,669,628 8,187,894
Capital expenditures 304,160 1,035,362 959,646 304,030 846,546
Debt ratio (%) 23.85 18.26 15.03 18.93 22.27
R&D expenses 71,269 75,155 80,402 102,472 136,382
Output (million units) 4,428 5,794 5,441 5,373 5,133
Note: The numbers provided for 2009 to 2011 were calculated according to Taiwanese accounting standards, while the figures
provided for 2012 to 2013 were calculated in accordance with international financial reporting standards.
Unit: NT $ thousands
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
0%
1%
2%
3%
4%
5%
營業收入
研發費用比率%
營業收入 4,916,157 6,373,783 5,821,560 5,802,458 5,528,873
研發費用比率% 1.45% 1.18% 1.38% 1.77% 2.47%
98 99 100 101 102
operating revenue
percentage of R&D expenses
operating revenue
percentage of R&D
expenses
Page: 10/74
2.3.5 Future Development and Competition
Not only do MEMS components allow more new applications for sport and health
management to be developed for handheld and wearable devices, but such MEMS
components as position sensors and acoustic controls have also been applied to the field of
intelligent car design, thus expanding its application and market demand. Furthermore, we
can continue to grow by accelerating the mass production of application components for
optical communications and electric vehicles. Doing so will create more orders from outside
the scope of our existing products to respond to the future market demand. In 2014,
construction on our T6 production building (located in the Chungkang Export Processing
Zone) in the Taichung factory will be completed, following the recovery of the
semiconductor market, to help our company to actively grow and fully satisfy the production
demand of our clients. Therefore, the future is promising regarding our overall operations and
profits.
2.3.6 Involvement with External Organizations
We participate as a general member in the following external organizations:
Organization
Taiwan Semiconductor Industry Association
Taiwan Optoelectronic Semiconductor Industry Association
LED Commercial Lighting Alliance
Photonics Industry & Technology Development Association (PIDA)
Taiwan Electrical and Electronic Manufacturers’ Association
2.3.7 Affiliates
◆ Affiliates Organization Chart
LINGSEN HOLDING
(SAMOA) INC.
(
Lingsen Precision Industries, Ltd.
LI YUAN INVESTMENTS
CO., Ltd.
Ningbo Li Yuan Technology, Ltd.
Nexus Material Corporation
Sooner Power Semiconductor
Co., Ltd.
OXNEY TRADING,
Ltd.
LINGSEN AMERICA INC.
0%
Li Xin Investment Co.,
Ltd.
Panther Technology Co.,
Ltd.
Page: 11/74
◆ Affiliate Profiles
Name Establishment
Date Address
Main Operation or
Production Item
Lingsen America Inc. 3/1998 1914 Junction Ave.
San Jose, CA 95131 Agency business
Li Xin Investment Co.,
Ltd. 9/1998
No. 5-1, South 2nd Rd., Tanzi
Dist., Taichung City General investment
Nexus Material
Corporation 3/2001
5F, No. 32-1, Guangfu Rd.,
Hsinchu Industrial Park, Hukou
Township, Hsinchu County
Production and trade of
electronic materials
Lingsen Holding(Samoa)
Inc. 8/2001
P.O. BOX 1225 Lotemau Centre
Apia Samoa General investment
Li Yuan Investments Co.,
Ltd. 5/2001
4F., Harbour Centre, P.O. BOX
613, George Town, Grand
Cayman, Cayman Islands, British
West Indies
General investment
Ningbo Li Yuan
Technology, Ltd.
6/2001
No. 30, Gang East Blvd., East
Area, Ningbo Free Trade Zone,
Zhejiang
Assembly and testing
of a variety of
integrated circuits and
optical products
Oxney Trading Limited 12/2003
3rd Floor, Omar Hodge Building
Wickhams Cay I P.O. Box 362
Road Town, Tortola British
Virgin Islands
Trading
Panther Technology Co.,
Ltd. 5/1997
No. 32-1, Guangfu Rd., Hsinchu
Industrial Park, Hukou Township,
Hsinchu County
Testing of integrated
circuits
Sooner Power
Semiconductor Co., Ltd. 11/2007
5F, No. 32-1, Guangfu Rd.,
Hukou Township, Hsinchu
County
Production of electronic
components
Note: As of 26 August 2014.
Page: 12/74
2.4 Market Overview
Currently, the market demand for smart handheld devices (SHD), tablets, and ultrabooks
has stabilized. With a growing demand for such products as internet of things (IOT), wearable
devices, automobile electronics, and smart homes, the future of the semiconductor industry
appears promising. Therefore, the semiconductor market is expected to continue to grow in
such a way that foundry and assembly houses in Taiwan can share business opportunities.
2.4.1 Future Supply, Demand, and Growth
As the global economy steadily recovers, the demand of the end-consumer market also
increases. Wearable devices are slowly gaining popularity while the demand for handheld
devices has also been maintained. Furthermore, the combination of this year’s continued
improvement of the global economy and replacement wave of mobile devices in China because
of 4G LTE has strengthened the demand for end-electronic products and brightened the future
of the semiconductor industry.
World Semiconductor Trade Statistics (WSTS) predicted that the operating revenue of
the global semiconductor industry in 2014 will achieve USD$314.3 billion, which shows a
growth rate of 3.7% compared with that of USD$303.1 billion last year.
全球半導體產值
0
1,000
2,000
3,000
產值/億美元
成長率%
-30.0%-20.0%-10.0%0.0%10.0%20.0%30.0%40.0%50.0%
資料來源：
TSIA；IEK(2013/03)
全球半導體產值 2263 2970 2995 2899 3031 3143
台灣半導體產值 417 598 528 552 630 699
全球半導體成長率 -9.0% 31.8% 0.9% -3.2% 4.5% 3.7%
台灣半導體成長率 -14.8% 43.5% -11.7% 4.6% 14.0% 11.1%
2009 2010 2011 2012 2013 2014
Business opportunities gradually emerged in 2013 thanks to smart phones, tablets, and
ultrabooks. Looking ahead to 2014, the production value of Taiwan’s IC manufacturing
industry will reach NTD$2,098.1 billion, a growth of 11.1%. Therefore, industry growth
continues to have promising potential.
12,497
17,93216,563
18,88620,981
15,838
-14.8%
43.5%
-11.7%
4.6% 14.0%11.1%
0
5,000
10,000
15,000
20,000
25,000
2009 2010 2011 2012 2013 2014
產值/億新台幣 成長率%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
台灣半導體產值 成長率
Global Semiconductor Output Growth rate (%) Output/US$ 100 millions
Resources :
Global Semiconductor
Taiwan’s Semiconductor
Global Semiconductor
Taiwan’s Semiconductor
Growth rate (%) Growth rate (%)
Output/NT$ 100 millions Taiwan’s Semiconductor Output
Page: 13/74
3 Corporate Governance
3.1 Principles
In accordance with the Company Act, the Securities and Exchange Act, and other related
regulations of the R.O.C. regarding corporate governance, we established the Articles of
Incorporation and our organization’s structure. In addition to adhering to the above regulations
and laws, our corporate governance is based on the following principles:
1. Building an effective corporate governance framework.
2. Protecting shareholders’ rights.
3. Strengthening the functions of the board of directors.
4. Incorporating the functions of the supervisor.
5. Respecting stakeholders’ rights.
6. Improving information transparency.
3.2 Profile
3.2.1 Framework
Our corporate governance is led by shareholders’ meetings and the board of directors. To
protect shareholders’ basic rights and decision participation rights, as well as to treatment
each shareholder fairly, the shareholder can exercise his/her voting rights through
shareholders’ meetings to participate in major operation decisions. Furthermore, with the
board of directors’ strategic plans and effective supervision, we actively work toward the
creation of wealth and jobs through sound finances based on the legal rights and roles of
stakeholders. Meanwhile, we ensure that the appropriateness and transparency of our
financial status, performance, ownership, and other important information areas always
disclosed.
Shareholders’ meeting
Board of Directors Audit Office
Supervisor
Remuneration Committee
Chairman
Management Team
Page: 14/74
3.2.2 The Board of Directors and Supervisors
◆ Members of the Board of Directors and Supervisors
Position Name Gender
Date of
Taking
Office
Term
of
Office
Date of
First
Taking
Office
Major Experiences and Degree Current Adjunct Duty in the Company or
Other Companies
Chairman Yeh,
Shu-Chuan
M 2013.06.18 3Y 1987.4.30 Department of Psychology, National
Taiwan University
Vice President, LPI
Chairman, LPI and subsidiaries
Representative Director, Giga Solution
Tech. Co., Ltd.
Director Yeh,
Ke-Chien
M 2013.06.18 3Y 1989.9.27 Department of Forestry, National Chung
Hsing University
General Manager, Dahsen Electronic,
Ltd. (大生電子公司)
N/A
Director Ku,
Chu-Kuang
M 2013.06.18 3Y 2004.5.20 Department of Electrical Engineering,
National Taipei Institute of Technology
Vice President, LPI
Director Ke,
Tien-Jan
M 2013.06.18 3Y 2007.6.21 Master of Business Administration
Richard Ivey School of Business,
University of Western Ontario, Canada
N/A
Director Yang,
Shun-Ching
M 2013.06.18 3Y 2011.6.15 Department of Optoelectric Physics,
Chinese Culture University
Assistant Vice President, Siliconware
Precision Industries Co., Ltd.
General Manager, LPI
Representative Director, Li Xin Investment
Co., Ltd.(利鑫投資(股)公司), Sooner
Power Semiconductor Co., Ltd., Panther
Technology Co., Ltd.
Supervisor Lo,
Chung-Wei
M 2013.06.18 3Y 1998.3.17 St. Francis Xavier’s College, Hong Kong N/A
Supervisor Tao,
Hung-Wen
M 2013.06.18 3Y 2010.6.4 Department of Accounting, National
Chengchi University
MBA, National Chung Cheng University
Branch Manager, Taichung Branch, BDO
Taiwan Instructor, National Chung Hsing
University
CEO, Financial Regulatory Committee, Taiwan CPA
Member, Remuneration Committee,
Evermore Chemical Industry Co., Ltd.
◆ Responsibilities of the Board of Directors
On 18 June 2013, all of the 17 directors were reelected at the shareholders’ meeting.
Acting with loyalty, precaution, a highly attentive attitude and the best interests of the
company, the Board of the Directors shall evaluate operation strategies, risk management,
the annual budget, and business performance, as well as supervise major capital expenditures,
M&A, and investment disposal. Furthermore, they shall ensure the appropriateness of the
accounting system and financial reports so that no behavior of the members of the Board of
Directors can damage the company or its interest or cause conflicts between shareholders.
The Board of Directors shall exercise prudence in selecting and supervising the management
team, making objective judgments regarding company affairs, and selecting a capable
internal audit officer to guarantee the effectiveness of the internal control process to prevent
malpractice.
A meeting of the Board of Directors is held at least once a quarter, at which the
management team will present reports about operation performance and the board will
decide future operation directions and major policies of the company.
The Audit Office and Remuneration Committee shall review the compensation of the
top members of management under the Board of Directors. Decisions made by the Board of
Directors shall be guided by the reports and suggestions of the Audit Office and
Remuneration Committee.
Page: 15/74
◆ Responsibilities of Supervisors
Supervisors shall perform their duties in accordance with relevant laws to supervise the
company’s business operations and shall also examine a variety of statistical reports that the
Board of Directors submits to shareholders’ meetings.
3.2.3 The Principle of Interests Avoidance for the Board of Directors
We established our “Rules of Procedure for Board of Directors Meetings” to comply
with the “Regulations Governing Procedure for Board of Directors Meetings of Public
Companies”. Members of the board shall avoid discussing and voting on proposals that
intersect with their personal interests.
3.2.4 Remuneration Committee
◆ Members
In accordance with a resolution of the Board of Directors passed on 8 December 2011,
the Remuneration Committee and its regulations were established. A member’s professional
qualifications, performance of duties, establishment of organization regulations, and other
relevant issues shall be based on the “Regulations Governing the Appointment and Exercise
of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the
Stock Exchange or Traded over the Counter”. The two members were reelected on 26 June
2013.
Position Name
Date of
Assuming
Office
Current Primary Position Actual Attendance
Rate in 2013 (%)
Convener Liu,
Hsing-Tsung
2013.6.26 Owner, Sanhe Public
Accounting Firm(三禾會計
師事務所)
100%
Member Huang,
Liang-Chih
2013.6.26 Professor, I-Shou University
Professor, National Chung
Cheng University
Professor, National
Sun-Yat-sen University
100%
Member Li,
Ming-Hsiao
2013.6.26 Accountant, Hong-Zhan
land office 100%
◆ Major Responsibilities
(1) Develop and regularly review policies, systems, standards, and the structure of
performance evaluation and the compensation of directors, supervisors, and
managers.
(2) Periodically evaluate and determine appropriate compensation for directors,
supervisors, and managers.
Page: 16/74
3.2.5 Internal Audit
A comprehensive internal control system will be developed and effectively implemented
in order to improve company operations and aid the Board of Directors and management to
properly perform their duties. The effectiveness of our internal controls will be reviewed to
ensure that our internal audit system properly performs self–evaluations in order to aid the
Board of Directors and management to guarantee the appropriateness, reliability, and
timeliness of financial, management, and operation data. The Board of Directors and
management shall also annually review the self-evaluation of the results from each unit and
the audit reports from the audit unit in order to prepare an internal control statement that will
be periodically reported to the competent authorities. Furthermore, the internal audit unit shall
periodically audit all departments to determine whether they are following the relevant laws
and regulations. Once both routine and periodic audits have been completed, the results shall
be reported to the Board of Directors, which will continue to track any follow-up
improvement measures. 。
The internal audit officer shall regularly and completely share audit results with
supervisors so that they properly understand the daily operations of the company.
3.2.6 Supervisors
Supervisors shall their exercise supervising rights in a timely manner and promote an
efficient supervisor system based on fairness, transparency, and properly defined powers and
responsibilities. A supervisor shall not only oversee financial matters, but shall also invite
professional accountants and lawyer to review relevant matters when appropriate. Supervisors
shall track internal control performances and audits through periodical reviews of internal
audit reports to prevent and deter malpractice.
3.2.7 Respect Stakeholders’ Rights
The company believes in the fair treatment of all shareholders, encourages them to
actively participate in shareholders’ meeting and the election of directors and supervisors, as
well as the revision of the Articles of Incorporation. We further give them the opportunity to
make requests and proposals in order to achieve balance. Furthermore, we actively cooperate
with stakeholders’ rights in our pursuit to create wealth and jobs and establish sound finance.
3.2.8 Improve Information Transparency
We use a spokesman system and the Market Observation Post System (MOPS) to
properly inform shareholders and stakeholders regarding our financial matters and the impact
that the exercise of corporate governance had on shareholders’ equity. Our financial
information is disclosed in accordance with Article 36 of the Securities and Exchange Act.
Regarding material information that has a major impact on shareholders’ equity,
announcements are made through the MOPS in a timely manner to prevent damaging
shareholders’ interests.
Page: 17/74
4 Interactions with Stakeholders
In our pursuit of sustainable development, we have established a variety of effective
communication methods for stakeholders so that we can understand their demands and expectations
as an important reference for developing corporate social responsibility policies and other relevant
programs.
Our stakeholders' management procedure has four steps: identification of stakeholders,
analysis of stakeholders and concerning issues, programs relevant to stakeholders, and interactions
and operations of stakeholders.
◆ Identification of stakeholders:
We define stakeholders as any internal or external group or individual who either impacts
on the company or is affected by the company. Accordingly, we consider the following our
stakeholders: shareholders (investors), customers, suppliers, employees, government agencies,
communities, competitors, media, non-government organizations, and research organizations.
Considering the worldwide trend toward sustainable development and current operation demands,
as well as discussions with related internal units, this report considers shareholders (investors),
customers, suppliers, employees, and communities as our main communicating stakeholders.
◆ Analysis of stakeholders and concerning issues:
After confirming out list of stakeholders, in addition to communities, we have added
stakeholders related to economic, social, and environmental issues. Each internal responsible
unit has developed a communication access system based on their impact on the company and
issues of concern and performs evaluation of materials and analysis of potential impact, which
can be categorized as a major issue, secondary issue, or general issue.
A charity club was established within the company in 2014 to evaluate the communication
access provided for community stakeholders and integrate the issues with which they are
concerned.
Iden
tification o
f stakeh
old
ers
Analysis of stakeholders and concerning
issues
Pro
gram
s relevan
t to stak
ehold
ers
Interactions and operations of stakeholders
Page: 18/74
Materiality Analysis of Issues that Concern Stakeholders
Regulatory compliance
Protection of confidential information Raw material use and
recycled materials
Corporate governance Recruiting and maintaining talent Energy management
Sustainable development policy
Salary and employee benefits Product carbon footprint
Risk management
Human rights related to labor Greenhouse gas management
Product quality and technology
R&D
Career development and educational
training
Green products
Operation performance Occupational safety and health Waste management
Supply chain management
Water resource management Environmental
policy/management system
Community involvement and
charity work
Hazardous substance management
Customer service and satisfaction
Air pollution control
Report contents in response to primary issues
Principal
issue
Relevant report chapter Principal issue Relevant report
chapter
Regulatory
compliance - 3. Corporate
governance
- 5. Personnel
cultivation and
harmony and safety in
the workplace
- 6. Environmental
protection
- 7.2 Supplier
management
Customer services
and satisfaction - 7.1 Customer
services and
satisfaction
Corporate
governance - 3. Corporate
governance
Water resource
management - 6.6 Water resource
management
Product
quality and
technology
R&D
- 2.3.2 Technology and
R&D profile
- 6.3 Green products
Air pollution
control - 6.5 Air pollution
and waste
recycling
management
Operation
performance - 2.3.5 Operation
performance
Greenhouse gas
management - 6.2 Carbon
management
Supply chain
management - 7.2 Supplier
management
1
2
3
4
10
11
12
13
14
15
16
17
5
6
7
19
20
21
22
23
24
25
9
8
18
Page: 19/74
◆Stakeholder-relevant programs:
All of our relevant units are incorporated into our daily work or annual plan through the
aforementioned analysis results to serve as an important reference for sustainable operation
strategies.
◆Interactions and operations of stakeholders:
When interacting with stakeholders, we employ a performance indictor for different issues
based on different stakeholders in order to regularly review ongoing improvement measures.
We firmly believe that good interaction with stakeholders can help us to overcome
economic, social, and environmental challenges, as well as enhance our operational ability to
establish ourselves as a sustainable company.
(1) Interactions with stakeholders and operation performance indicators
Stakeholder Performance Indicator Review Frequency
Shareholders
(investors)
◎Operation performance
◎Risk management
◎Current status and future development in the
industry
Annual shareholders’ meeting
Customers ◎Customer satisfaction Quarterly
Suppliers ◎Supplier evaluation
◎Supplier audit
◎No hazardous materials
◎Use of conflict-free metals
Monthly/Yearly
Yearly
Yearly
Yearly
Employees ◎ Occupational accident statistics
◎Employee training program satisfaction
Monthly
Every time
Communities In 2014, the company’s charity club was established to provide communication access
for community stakeholders and to integrate the issues that concerned them.
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(2). 2013 Summary of interactions with stakeholders and operations
Stakeholder Issues of Concern Communication Access Relevant Events and Highlights of 2013
Shareholders
(investors)
●Operation
performance
●New product
development and
schedule
●Annual shareholders’
meeting
●Spokesman system
●Provided 2013 operation performance to
investors
●Provided investors with new product
development status
Customers ●Green products
●Conflict-free metal
investigation
●EICC
●Quarterly customer
satisfaction survey
●Quarterly customer
business review meeting
●Periodic customer audit
●Completed top 15 customers satisfaction
surveys
●Ranked number one in the quarterly suppliers’
evaluation of the Microchip
●Audited by renowned global firms, such as IBM
and Continental
Suppliers ●Product
quality/technology
R&D
●Supply chain
management
●Operation
performance
●Hazardous material
management
●Suppliers’ meeting
(monthly)
●Suppliers’ information
investigation (yearly)
●Suppliers’ audit
●Supplier Gesi-CMRT survey
● 2012 operation performance
●Supplier risk management
●Supplier review
●Supplier audit
Employees ●Corporate governance
●Compliance to
regulations
●Labor relations
●Salary and benefits
●Occupational safety
and health
●Company announcement –
immediate announcement of
new policy
●HR representative in each
factory – one HR
representative in each
factory to handle employees’
problems in a timely manner
●Regular / irregular
communication meeting in
each unit
●Diverse employee opinion
portals, such as oral
complaints, written
complaints, mailbox of the
General Manager in each
factory, union, and HR
representative
●Regular labor-management
conference
● One HR representative in each factory to
handle employees’ problems in a timely manner
● Periodic General Manager’s party
● Forum between the General Manager and co-op
students
● Joined the government’s disabled career fair
● “Labor safety and health promotion week”
Communitie
s
In 2014, the company’s charity club was established to provide communication access for community
stakeholders and to integrate the issues that concern them.
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5 Personnel Training and Harmony and Safety in the Workplace
5.1 Salary and Benefits
Our employees are our most important assets. Therefore, we provide our employees with
compensation that is better than the industry standard, with a minimum wage that exceeds that
required by the Labor Standards Act.
◆Performance-oriented compensation system
Outstanding talents deserve first-class compensation. In order to attract, encourage, and
retain superior talents, our company provides impressive and highly competitive compensation
packages that are determined by work importance and difficulty, in addition to offering different
salaries and bonuses based on individual performance. For example, a performance bonus may
be given irregularly depending on the company’s performance, as well as an individual’s
performance. Furthermore, 10% of the company’s earnings will be distributed annually as
employee bonuses to maintain the competitiveness of our talent and show employees our
sincerity in keeping professionals. We not only follow the basic requirements offset forth by
labor laws, but also participate in local salary gatherings to ensure that competitive compensation
is provided. An employee’s compensation is further determined based on his/her education,
experiences, performance, and market standards, without discrimination of gender, race, religion,
political position, or marriage.
◆Comprehensive insurance system
We provide all of our employees with labor insurance, national health insurance and group
insurance starting from the registration day. Overseas travel insurance is further provided for any
employees on business trips in order to protect their work and ensure their safety.
◆Sound retirement system
Since November 1986, we have complied with the Labor Standards Act and established a
Supervisory Committee of Labor Retirement Reserve to allocate retirement reserves to a special
account in the Central Trust of China every month. As of the end of 2013, the balance of this
pension account is $377,191,000. An employee of this company can apply for a pension once
meeting the requirements of retirement; thusly, the rights of employees are protected and they
can be free to work without worries. Thanks to the help of a professional accounting consultant,
we are able to provide our employees actuarial pensions to ensure allocation with full amounts to
protect the rights of employees who apply for their pensions in the future.
Since 1 July 2005, in accordance with the Labor Pension Act, we have offered our
employees a retirement system that complies with the Labor Standards Act, have provided an
actuarial allocation rate of the retirement reserve considering the factors of labor numbers, wage,
years of service, and turnover rate applicable to the years of service prior to the promulgation of
the Labor Pension Act, and have allocated retirement reserves with a full amount every month
within five years. For those to which the Labor Pension Act applies, we contribute 6% of their
monthly employee salary towards their pension in accordance with the Wages Classification List.
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◆Parental leave without payment
The Labor Standards Act dictates all of our leave systems and we fully support the
government policy of parental leave without payment. Since implementing this policy, 92
colleagues have applied for parental leave, of which 6.5% were men and 93.5% were women.
An HR representative interviews the employees applying for the leave in person and then
applies for an allowance relevant to labor insurance on their behalf. Furthermore, employees
can voluntarily reinstate themselves earlier than scheduled, which will be handled on a
case-by-case basis. All of the employees who have taken advantage of this program are very
grateful for this comprehensive measure of parental leave without payment.
Statistics of applying for maternity/paternity/parental leave in 2013
Type of Leave Maternity/Paternity Leave Parental Leave
Category Male – Paternity
Leave
Female – Maternity
Leave
Male Female
Number of
Applicants
47 58 2 24
Total 105 26
Reinstatement and retention rate of parental leave in 2013
Number of employees that applied for parental leave
in 2013
Total M F
26 2 24
Expected reinstatement numbers in 2013 (A) 23 2 21
Actual reinstatement numbers in 2013 (B) 23 2 21
Reinstatement rate (B/A) 100% 100% 100%
Reinstatement numbers in 2012 (C) 16 1 15
Numbers of employees reinstated in 2012 and
retained for at least one year as of 2013 (D) 11 1 10
Retention rate (D/C) 69% 100% 67%
◆Employee Benefits
(1). Listed stock, Employee Stock Ownership Plans Trust (ESOP)
(2). Moon Festival and year-end bonuses
(3). Gift coupons for employee’s birthday, three holidays, wedding, and for condolences
(4). Diverse company trips
(5). Employee check-ups
(6). Nursery room, plant infirmary, field doctor for consultation, and contracted hospital
◆Clubs, work-related learning events, and leisure activities
We have a variety of clubs and work-related learning activities for colleagues to pursue their
various interests and relax outside of work. Family is also one of the company’s priorities so we
try to improve family relationships and encourage togetherness under the company through a
variety of family activities.
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▲Mountaineering Club
▲Softball Club
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▲Cycling Club
▲Badminton Club – friendly competition between LPI and WINTEK
Page: 25/74
▲Bowling Club
▲Family Day Event – BBQ at Flying Cow Ranch
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5.2 Equal Employment Opportunities, Labor Restrictions
◆Recruitment
Our recruitment policies absolutely do not include any discrimination based on an
applicant’s race, age, hierachy, language, beliefs, religion, politcal party, place of origin,
gender, sexual orientation, marital status, appearance, disability, or identity as a union
member. Furthermore, our basic recruitment principles adhere to the idea of open
recruitment, fair selection, and hiring the best.
“Talent” is our most important asset, so we aim to actively recruit, encourage, and retain
talent; this goal guides us most in our recruitment process. Due to a variety of methods for
finding new staff, such as online, introduction by employees, recruitment events, print media,
and industry-university cooperative and internship projects promoted by the Ministry of
Education, we are capable of recruiting the best talents in the world.
Our Recruitment Access
Recruitment Access Method
Online Job bank website
Introduction by
employees
Introduction of relatives and friends can earn employees an
introduction bonus
Recruitment event Cooperation with all local employment service stations for
single or joint recruitment activities to recruit on campus
Print media Place employment advertisements in print media
Industry-university
cooperative project
Activey discuss industry-university cooperation and internship
projects with many universities
◆Talent retention
We aim to cultivate, cherish, and care for our employees so that they will provide us with
their greatest potential; this is what guides us most in our talent retention. With regards to
outstanding colleagues, we develop their career plans and arrange turnover to give them the
space for diverse growth and play.
For employeeswho decide to leave the company, in addition to interviewing them to
comprehend and evaluate their reasons for leaving, the HR Department subsequently works to
resolve the problems that are discovered through resignation reason analysis. A turnover list is
provided weekly to each unit officer to assist him/her to immidiately understand said unit’s
turnover condition. The HR Department also takes the initiative to contact each unit officer
depending on the condition and require each organization to improve abnormal turnover.
◆Current status
Our company currently has 2,468 employees, of which 1,091 (44.2%) employees are
male and 1,377 (55.8%) employees are female. Local employees make up 85% (2,103) and
foreign ones make up 15% (365). All local employees hold full–time positions. 44% of
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employees are less than 30 years old, 50% of them are between the ages of 30-50, and 6% of
them are more than 50 years old. Furthermore, we respect the employment rights of disabled
people, so we actively participate in employment events for the disabled held by the
government. In 2013, we recruited 23 disabled employees.
Employee Age Breakdown in 2013▼ Percentage of Employees’ Age – Below 30▼
Percentage of Employees’ Age – 31-50▼ Percentage of Employees’ Age – Above 50▼
New Employee Statistics in 2013 – by Gender▼
Below 30 30-50
Male Female
Male Female
Male
Female
Male Female
Above50
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New Employee Statistics in 2013 – by Position▼ New Employee Statistics in 2013 – by Age▼
Resigned Employee Statistics in 2013 – by Gender▼ Resigned Employee Statistics in 2013 – by Position▼
Resigned Employee Statistics in 2013 – by Age▼
Indirect Labor
Direct Labor
30-50
Below 30
Male Female Indirect Labor
Direct Labor
30-50
Below 30
Above50
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Disability Level Hired in 2013▼ Gender of Disabled Employees in 2013▼
▲Participation in Job Fair for People with Disabilities in 2014
◆No forced labor
Each labor contract between an employee and the company adheres to the required laws
and regulations.Once a recruitment relationship is established, a written labor contract has to
be signed by law and must be agreed to by both parties, with an opposition to slave labor, as
well as without forced labor or illegal human trafficking. Overtime work is voluntary and
specifically prohibited in our reguations. Furthermore, we have established a reminder about
overtime in our attendance system and the HR Department further inspects and controls
employee schedules every day and then remind each employee not to work overtime.
Mildly
disabled
Moderately
disabled
Severely
disabled
Male Female
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5.3 Occupational Safety and Health
A safe and healthy workplace is the only way to create better products and quality for all
of our stakeholders. In order to provide such a workplace, we comply with local related laws
for the management of a variety of daily operations and have introduced the Occupational
Health and Safety Management System (OHSAS18001, 2007) to continue improving our
workplace through documentation, planning, implementation, auditing, improvement, and
prevention of the management system to satisfy each and every customer.
People, building/machinery/equipment, raw material/waste, and operation environment
were selected as the four focuses in our promotion of the OHSAS. We endeavor to prevent
occupational accidents through the following: controlling hazard identification and risk
evaluation; safe procurement management of machinery, equipment, and materials; safe
management of contractor entrances; safety and health education of employees; providing and
managing protective gear; sampling and testing in the workplace; health promotion of
employee care; emergency management; and project management, as well as the ongoing
improvement of all of the aforementioned matters by the PDCA management cycle.
5.3.1 Organization
A special unit has been established to be responsible for target set up, implementation,
and promotion of safety and health management. Moreover, in order to strengthen
communication between employees, our General Manager acts as a chairperson to convene
cadres, related technical staff, and union representatives to create a safe and health committee;
the number of union representatives must account for 33.3% of the total members to meet
legal requirements. Each quarter, we will propose plans to address occupational safety and
health issues in an effort to continue to construct a safe and healthy workplace through
employee involvement and communication.
5.3.2 Management Procedures
Safe management of machines and equipment: Providing safe and healthy machinery and
equipment for employees to operate and produce is one of our procurement principles.
Therefore, safety and health requirements and standards will be listed before obtaining a new
machine or piece of equipment. Identification, inspection, and acceptance will be performed
when the machine arrives to determine the nature and confirm the safety of the machinery
and equipment.
Safe management of chemicals: Any procurement of chemicals shall be previously evaluated
by the Department of Industrial Safety and Environmental Protection to ensure that we can
control this chemical’s hazardous risks with regards to the law, environment, and employee
health. After procurement, hazard communication, inventory control of public hazardous
substances, routine visits of the storage and use locations, and usage and waste treatment
control shall be performed to reduce the hazards of chemicals into an acceptable range for
both the environment and human health.
Safe management of contractors: Contractors are important partners in assisting us in our
successful operations. Therefore, we have invested many resources to guarantee the work
safety of contractors while in our factory. All contractors will receive any hazard notice
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before entering the factory and are required to fully participate in our safety and health
agreement organization. Our personnel will confirm the risk level of this operation
environment prior to their entrance and proceed with the accident prevention agreement to
avoid operational risks in an unfamiliar environment and together prevent occupational
accidents.
High-risk operation management: To prevent major industrial accidents, we have
specifically categorized certain operations as high-risk operation items, such as hot work,
hanging, overhead, and confined spaces, all of which can cause major injuries and property
damage and require the adoption of critical and special management procedures, including
preapproval, notification of the influenced unit, inspection during operation, and
confirmation after completion.
5.3.3 Educational and Emergency Training
We believe that our labor force has the right to know about safety and health in the
workplace. We will only be able to prevent accidents if our employees have a thorough
understanding of the hazards of operations. Therefore, we have adopted the “we aren’t afraid
that you know, but you don’t want to know” method to edit materials and arrange training
sessions regarding occupational safety and health education. Occupational safety training will
be scheduled for the first day of work for each employee so that they can learn all about
possible hazards of operation before starting. Furthermore, OTJ training for industrial safety
will be regularly held in the workplace, with lectures being held for new employees every
three months to be provided by the educational training unit. Past industrial accidents and
OHSAS will be included in the training to better inform employees and satisfy their basic
right to know.
Emergency response is another part of OHSAS educational trainings. Only proper
knowledge by carrying out drills in advance will reduce accidents in everything from major
to minor events. Therefore, the company has established an emergency response
organization and responsibility chart for each production line with the factory director as the
commander. Notification training, accident reduction, and asylum guidance will be held
annually in each factory location. Furthermore, chemical leaks, fire extinguisher practice,
and crew evacuation are listed among the annual routine exercises.
In 2013, the performances of OHSAS and emergency response training were as follows:
Common occupational safety training lecture before employment for new employees: 40
times
Three-month routine occupational safety training: 12 times
Emergency response notification, accident reduction, asylum guidance, and crew evacuation
exercise: 25 times
Fire extinguisher exercise: 2 times
Response to chemical leak: 2 times
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5.3.4 Statistical Analysis of Occupational Accidents
Our occupational accident analysis includes frequency rate (the number of disabling
injuries of given types resulting from industrial accidents per million man-hours worked, FR),
severity rate (the number of lost work days experienced per million man-hours worked, SR),
and the frequency-severity indicator (FSI) as the primary basis for statistical comparison.
These statistics exclude traffic accidents that occur outside the plant. In 2013, the plant had
three industrial accidents with 32 days lost, 0.59 of FR, 6 of SR, and 0.061 of FSI and without
major occupational accidents. The reasons for injury generally include being jammed or cut by
unsafe behavior from hazard ignorance of machinery and equipment. Due to this, the labor
safety unit associated with the manufacturing unit established an accident reduction project
with the target of listing zero occupational accidents in 2014.
5.3.5 Health Management and Promotion for Employees
Ongoing improvements and societal changes have made recruiting employees more
difficult. If existing employees have any health problems, stable manpower cannot be
provided and HR costs will increase. Therefore, we offer physical examinations, regular health
checkups, and health checkups for special operations or in cooperation with professional
medical and health organizations in order to promote active health management for such
categories as field services. Moreover, we have begun to focus on special groups such as older
employees, disabled employees, and employees with a higher fatigue risk index, abnormal
health checkups, occupational sickness leave, or abnormal sick leave. For such situations, we
offer passive care management, which entails a visit from the factory nurse and includes a
reminder of considerations in daily life, coordination of the appropriateness of work
scheduling, and a field doctor consult in the hopes that all employees can work healthy and
stably here to create a win-win between the company and its work force.
5.4 Educational Training
Since talent is the foundation of our operation, we emphasize employee educational
training in the hopes that their professional skills and quality, as well as our management
structure, can be strengthened through a variety of trainings. Therefore, the educational
training committee, which consists of executives from each department, is responsible for
proposing training focuses for the following year based on the training demand of each unit
and company policy. Furthermore, standard courses that respond to competence and position
have been established to serve as a learning map of talent cultivation with the hope that the
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training outcome and operation vision can be combined.
With regards to employee career development, our educational training is combined with
integrated performance evaluations in which a unit officer annually assesses his/her
employee’s performance and career development to assist said employee in determining areas
of work improvement and provide suggestion for development and appropriate educational
training resources.
5.4.1 Comprehensive Educational Training System
We have developed a comprehensive competence training system to determine
competency requirements for each position and provide the appropriate training courses for
those with insufficient ability. Regardless of position, from general administrative staff to
engineer, any employee can enhance his/her own ability step by step to meet the competency
requirements of said position. Meanwhile, a technical training system was also developed
specifically for engineers to assist them in achieving technical certification at each level
through a variety of professional skill training courses.
5.4.2 Diverse Educational Training System
In order to combine company training and annual target so that employees can
immediately apply what they have learned to the job, we have designed the training systems
below in accordance with employee personality, training location, and learning effectiveness
to quickly teach employees fundamental knowledge, skills, and attitudes that they need to
utilize to work effectively and achieve the company’s targets.
◆ Educational training for new employees:
Pre-employment training and fundamental training are both provided to assist our new
employees in understanding our corporate culture, core values, work environment, and
issues relevant to corporate social responsibility. Furthermore, we offer a comprehensive
mentoring system in which each new employee is assigned a mentor to help him/her fit in
and meet the company’s requirements. In 2013, there were 12 new employee training
courses with 430 participants and a total of 1505 training hours.
◆ On the job training (OJT):
OTJ training is provided to help employees on the production line to learn the knowledge,
skills, and attitude that they need on the job, as well as to assist them in achieving
certification to operate specific machines.
◆ Plant educational training:
This includes quality, process, problem analysis and solution, and management courses,
all of which are aimed at cultivating leadership of management and develop a common
technical language in the plant. In 2013, there were 16 training courses with 804
participants and a total of 2874 training hours.
◆ External educational training:
To encourage employees to pursue learning outside of the company, we send staff to
participate in technical seminars and lecture with special issues held by a variety of
professional organizations. In 2013, 95 employees were trained externally with a total of
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860 training hours. Furthermore, they shared what they learned with relevant employees
in each department through their feedback reports, thus spreading the knowledge.
5.5 Labor Relations
Respecting employees and hearing their opinions can promote their cohesiveness, as well as
their desire to work together with the company. We put a great deal of focus on the opinions and
issues brought by every employee in order to develop relevant regulations to protect their rights and
create a harmonious environment.
◆Respect human rights
We regard employees as our most important assets and partners and we are committed to
giving them hope, providing them with a bright and pleasant workplace, and achieving the
following based on our respect for human rights.
(1) Freedom of assembly and association
Employees have the legal right to organize and associate by his/her freewill to promote
the coordination of labor relations and protect employee rights. A union has been formed by
our employees with a 85% participation rate.
(2) Treatment without discrimination
We have developed a non-discrimination policy to ensure that employees do not
experience any discrimination during recruitment, registration, business execution, promotion,
appointment, reward, or resignation.
(3) Prevention of sexual harassment
We adhere to all laws with regards to specifying and actively promoting the Gender
Equality Act and have introduced a variety of policies relevant to sexual harassment
prevention to promote gender equality in the workplace.
(4) Prohibition of child workers
We comply with all regulations relevant to the Labor Standards Act and prohibit all those
who are under the age of 16 from working for our company.
(5) Work hours
We do not force employees to work beyond the maximum work time regulated by law
each day; furthermore, we follow the wage requests or necessary compensation for overtime
work.
◆Diverse communication methods
We value employees’ opinions and, therefore, provide a forum for employees to exchange
opinions and periodically hold labor relations conferences where they can directly share their
ideas to solve their problems in a timely manner. Furthermore, we regularly participate in labor
relations promotion and related seminars held by government agencies to maintain good labor
relations and promote good interactions between the company and its employees.
(1) Labor relations conference
To improve labor relations, increase the understanding of both parties, promote
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cooperation, and enhance work efficiency, we periodically hold labor relations conferences to
share and discuss issues together to solve problems based on harmony and integrity.
(2) Employee complaint handling system
We provide employee opinion mailboxes and an “employee complaint handling system”
as points of access for employees to provide suggestions to reinforce cooperation. The
employee complaint methods are as follows:
(a). Oral complaint: Oral complaints will be recorded by a responsible person in each
department to be immediately reported and handled.
(b). Written complaint: Employees may submit their complaints through the complaint
form or other written methods by the administrative system if his/her rights were
damaged or he/she has any other opinions. Each unit officer shall investigate and
report immediately and respond to the applicant with the results or handling of the
issue in writing.
(c). Mailbox of the General Manager in each factory and union: An employee’s privacy
is emphasized during communication and subsequent handling processes to provide
employees with a confidential communication method to freely express their
opinions.
(d). HR representative’s e-mail ([email protected]): Employees can fully express
any problem in a timely manner with management to ensure a harmonious
workplace.
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6 Environmental Protection
6.1 Environmental Management
We believe that environmental protection is just as important as product quality. In October
1998, the Environment Management System (ISO-14001) was introduced as the primary form of
environmental management. Yang, Shun-Ching, our General Manager, shortly after determined that
our environmental policy would be based on four features, “manufacturing green and eco-friendly
products; adhering to applicable laws; saving energy, reducing waste, and preventing pollution; and
continuing to improve sustainable development”, to accompany the related ISO-14001 regulations
and further encouraged all employees to manage the environment using PDCA in each factory.
Furthermore, he requested all of us to continue to frequently inspect the impact of air pollutants,
waste water, noise, and waste on the environment and continuously review the resources used in the
production in order to improve the company’s energy saving efforts in the hopes of achieving
balance and co-prosperity between product quality and our surrounding environment.
Our Environmental Policy (Figure 1)
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◆Structure of Environmental Management Committee
Our company has five production buildings and one raw material warehouse. All of the
production buildings are consistently managed by the Environmental Management Committee,
which is chaired by the General Manager and has each unit head as a member. The General
Manager annually convenes all unit heads to an environment target review conference to evaluate
the environmental incidents and the degree of completeness of the previous year’s target, discuss the
impact caused by deficiencies, determine an environmental target for the current year, request
related units and heads to manage the programs with which they are charged, and monitor them
through the quarterly environmental management committee meeting. Furthermore, each unit head
will be held responsible for evaluating environmental hazards and managing the areas with
environmental hazards with special projects to reduce their impact on the environment.
Structure of Environmental Management Committee (Figure 2)
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◆Operation of Environmental Management System
We are committed to communicating the importance of environmental protection to all of our
employees in the hopes that everyone in our company will do their best to protect our environment.
Furthermore, in January every year, the General Manager will convene an environmental
management committee meeting with each unit head to determine environmental goals and
management programs for the current year. Such goals are generally related to waste reduction or
saving energy. Once the goals are determined, each unit head will promote them to his/her
employees and get their feedback to learn how to better improve the environment together in order
to enhance the company’s environmental protection efforts. Environmental
Policy
Orientation
Program
Number
Environmental
Goal Environmental Objective
Environmental Management
Program
Responsible
Unit
Continuous
promotion of
environmental
improvement
0201
Reduce the
electricity
consumption of the
desiccant dryer
10% reduction of annual
electricity consumption of
air compressors
T1, T2, and T5 in the Taichung
factory
Energy-saving desiccant dryer
Factory Affairs
Department
Continuous
promotion of
environmental
improvement
0202 Reduce water
consumption
2,n171 tons of water saved
annually
Reduce water waste and waste
water (save water for soaking
operations) at T4 in the
Taichung factory
The 2nd
Manufacturing
Department,
Plating Section
Overall
reduction of
environmental
impact
0203 Effectively use
silver adhesive
Reduce annual attrition rate
of silver adhesive to 8% or
less
Reduce the scrapping rate of
silver adhesive at T1 in the
Taichung factory
The 2nd
Manufacturing
Department,
Before Works
Overall
reduction of
environmental
impact
0204 Reduce
consumption of
raw materials
Reduce annual loss of 80
kg from mold cleaning
Reduce supplies program of
mold cleaning at T2 in the
Taichung factory
The 1st
Manufacturing
Department,
The 2nd
Section
Overall
reduction of
environmental
impact
0205 Effectively use
mold resin
Reduce attrition rate of
resin to 4.75%
Reduce attrition rate of resin at
T5 in the Taichung factory
The 2nd
Manufacturing
Department,
PDIC
Integration table of our environmental goals, objectives, and management programs in 2013 (Table 1)
We have received ISO-14001 verification every year since 1998. However, in order to prevent
our perceptions of our self-review of the company’s environmental protection measures from
diverging from the truth, we annually invite external verification agencies to assist in our audit and
re-verification process. With different points of view from senior auditors at external verification
companies, we can continue to improve our environmental quality.
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Our ISO14001 Certificate (Figure 3)
6.2 Carbon Management
Because greenhouse gases have caused global warming, they have had a huge impact on
biodiversity and the environment. Based on the sustainable development and the fulfillment of our
corporate social responsibility, we are committed to inspecting and controlling greenhouse gas
emissions to reduce the effects of global warming. We look forward to saving energy to maintain the
sustainability of the global environment. Our current greenhouse gas emission reduction target and
schedule is that by 2020, our emissions will be the same as those of 2005. That is, with strong
economic growth, the Business As Usual (the emission level of freely growing sources without
reduction requirements from the government, BAU) in 2020 needs to be reduced by 45%. With
weak economic growth, it still needs to be reduced by 39%. Therefore, the company officially
established the Greenhouse Gas Inspection and Voluntary Reduction Promotion Organization in
2010 and the General Manager announced the following policy statement:
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Lingsen Precision Industries, Ltd.’s Greenhouse Gas Inspection and
Voluntary Reduction Statement
We recognize that the climate and environment suffer from the negative
impact of greenhouse gases and understand that the capacities of the
earth’s resources are limited. They are not endless and, unfortunately, we
are moving toward the critical point. As a responsible corporate citizen,
we are committed to carrying out the following activities:
Regularly inspect greenhouse gases
Control greenhouse gas emissions
Improve the efficiency of machinery and equipment to lessen
greenhouse gas emissions
Yang, Shun-Ching, General Manager
20 July 2010
Our Greenhouse Gas Inspection and Voluntary Reduction Statement (Figure 4)
The Greenhouse Gas Inspection and Voluntary Reduction Promotion Organization was hereby
founded through the above statement. By combining the competence of this organization with the
Environmental Management Committee, we were able to hold the carbon reduction conference in
July 2010, where we strived to understand our greenhouse gas emissions so that we could proceed
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with our plans for emission reduction. In said conference, the General Manager announced that
greenhouse gas inspections would be performed regularly starting in 2010 in accordance with
ISO14064 verification standards. External verification confirmed the emission volume and primary
source of our greenhouse gases, and we selected appropriate measures to improve our emissions.
Regarding our carbon footprint, we have gradually began implementing such measures as providing
clients with carbon emission information for all raw materials during the assembly process and
investigating our carbon footprint for individual products to help clients understand manufacturing
information.
Our Carbon Management (Figure 5)
◆Greenhouse gas inspection
With the help of the Export Processing Zone Administration and the Industrial Technology
Research Institute, the company had an inspection of its greenhouse gas emissions. During the
consultation process, the Industrial Technology Research Institute team utilized the coefficient
announced by the World Business Council for Sustainable Development (WBCSD) and the
Intergovernmental Panel on Climate Change (IPCC) associated with our consumption of
equipment and raw materials to develop a custom procedure and system to aid in our greenhouse
gas inspection. Our inspection scope currently covers the T1, T2, T4, and T5 production
buildings and the T3 raw material warehouse in Taichung. In 2015, the inspection will also
include the T6 production building in Taichung. The internal greenhouse gas inspection and
internal document audit for the previous year must be completed before May each year, while the
external verification must be completed by July each year. Our annual greenhouse gas inspection
information since 2009 can be found in the chart below:
Carbon
management
Greenhouse
gas inspection
Carbon
footprint
Carbon reduction
program
Carbon
disclosure
Inspect the carbon footprint of
certain products according to
customer demand
Inspect greenhouse gas
emissions annually
Use of low carbon
materials
Propose annual energy-saving
and carbon-reducing plans
Post the annual report regarding
the greenhouse gas inspections on
the company’s website each year
Have the Procurement Department choose
low carbon materials as the priority
material when meeting the same
requirements as other available materials
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Annual greenhouse gas emissions from 2009 to 2013 (Table 2)
Scope 1 refers to the direct emission of greenhouse gases, which includes fixed combustion
sources (fuel combustion of fixed equipment), process emission sources (self-owned or
controlled), mobile combustion sources (fuel combustion of transportation equipment under
control, such as cars, trucks, trains, airplanes, and boats), and fugitive greenhouse gas emission
sources (intentional and unintentional). Scope 2 refers to indirect areas, including input of
electricity, heat, steam, or other derivative energies such as fossil fuel. Scope 3 refers to other
indirect areas, which, as of now, is not managed.
The inspection revealed that the main sources of Scope 1 are refrigerants, gas, and diesel
(direct-use energy). In 2013, the company’s consumption of refrigerant was 1.5738 tons, gas was
15.329 kiloliters (147,328.72 kwh), and diesel was 39.099 kiloliters (420,314.25 kwh). The
greenhouse gas volume generated from Scope 1 in 2013 was 535.66 tons. The main source of
Scope 2 is electricity consumption, which was 101,249,089 kwh in 2013. The greenhouse gas
volume generated from Scope 2 in 2013 was around 53,864.52 tons. Once we understood that
the main source of our greenhouse gas emissions is electricity consumption, we were able to start
many energy saving improvements since 2010 to reduce electricity consumption to decrease
emissions. From 2009 to 2012, the primary reason for the fluctuation in our emissions was the
recovering economy. Our increased production caused higher emissions from 2011 to 2012. The
volume decreased in 2013 thanks to our emission reduction programs.
Year 2009 2010 2011 2012 2013
Total electricity
consumption
(kwh) 94,866,985 104,636,351 106,677,413 102,539,382 101,249,089
Our Annual Electricity Consumption from 2009 to 2013 (Table 3)
Because the emission of greenhouse gases is closely related to energy consumption, we
introduced Energy Management System (ISO50001) verification in order to more efficiently
manage our energy consumption. Many employees have been sent to educational training to
become energy managers and obtain certification. Our goals are to better plan our energy
Year Scope 1 Scope 2 Total volume of
greenhouse gases (ton)
2009 694.02 59,102.13 59,796.15
2010 776.93 64,037.45 64,814.38
2011 587.26 65,925.69 66,512.95
2012 537.37 54,961.11 55,498.48
2013 535.66 53,864.52 54,400.18
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consumption, determine a consumption standard, develop a consumption policy, and promote
improvement measures and thus continuously improve under PDCA, ISO’s management core.
� �
Our 2013 ISO14064 Verification Statement of Greenhouse Gas Assertions (Figure 5)
◆Energy Saving and Emission Reduction Program
In 2010, this company began having greenhouse gas inspections (for 2009) and
subsequently implementing energy saving and emission reduction programs, as well as requested
professionals of the Industrial Technology Research Institute to serve as internal energy saving
consultants. According to them, our actual operations produce no major waste. Furthermore,
prior to inspection, we had already implemented several energy saving measures, such as LED
lamp replacement and effective adjustment of the temperature of the air-conditioning system.
After discussions with the Factory Affairs Department, we submitted a number of energy saving
improvement measures, implemented them, and annually reviewed our progress in the hope that
we can provide help slow the effects of global warming even more.
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Starting year
of the
program
Energy saving
program Description
Average efficiency of
energy saving measure Electricity
consumption
saved
(kwh/year)
CO2
reduction
(ton/year)
2012
Reduction of the
maximum
operating
pressure of the air
compressor to
reduce electricity
consumption
In order to reduce the electricity
consumption of the air
compressor, we shall inspect the
pressure and air volume required
by the user side and then control
the total pressure of the
compressed air system within 1
kg/cm2.
About
130,000 69.16
Build an
optimized
operation
management of
the air pressure
system to reduce
electricity
consumption
Ensure the multi-machine chain
control system in the air
compressor, whose supply is
adjusted by one inverter air
compressor and that other
machines are operated at full load.
About 40,000 21.28
Update the heat
sink of the
cooling tower and
clean the
condenser
pipeline
Update the heat sink of the cooling
tower to reduce water
temperatures and clean the
condenser copper pipe to enhance
its heat transfer effect.
About
412,000 219.184
Clean
accumulated oil
and dust in the
chiller to enhance
heat transfer
efficiency
The accumulated oil in the chiller
may be excessive or the tube wall
may be dirty so pumping down is
necessary to extract excess oil and
clean the brass tube wall of the
heat exchanger.
About
247,000 131.404
2013
(Air conditioning
heat recovery
system) wasted
heat recovery of
the air
compressor
Recycle wasted heat of the air
compressor to the air-conditioning
system to maintain the
temperature of the hot water and
reduce operations of the heat
pump to decrease electricity
consumption
About
3,990,000 2082.78
Optimize old
dryer
Replace the old dryer with a
heated dessicant dryer with less air
consumption to reduce electricity
consumption
About
1,700,000 887.4
Energy Saving and Emission Reduction Programs (Table 4)
Six energy saving and emission reduction programs have been implemented in 2012 and
2013. These programs include improvements that are primarily aimed at high electricity
consumption systems, such as air-conditioning and air pressure so that we could reduce 829,000
kwh (441.028 CO2 tons/annual emissions) and 5,690,000 kwh (2970.18 CO2 tons/annual
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emissions) of electricity consumption in 2012 and 2013, respectively. We will continue to apply
these already existing programs on other equipment that needs improvement and will invest
more than $30,000,000 into a solar power system, which is expected to generate around 510,000
kwh of pollution-free electricity annually.
Energy Saving Program of Air-conditioning Heat Recovery System (Figure 6)
Energy Saving Program of Old Dryer Optimization (Figure 7)
Energy Saving Program of Heat-sink Replacement in the Cooling Tower (Figure 8)
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6.3 Green Products
In response to global trends and the widespread demand for environmental protection, we are
committed to providing excellent solutions to protect the environment, promote safety, and
encourage health. During our manufacturing processes, we do not use hazardous materials, but only
materials that meet the RoHS and also send product samples to SGS for testing to meet the
halogen-free limits set by the RoHS.
We not only assemble traditional products, but also mass produce stack die, multi-chip
modules, systems in packages, and MEMS packaging. Of these, the MEMS components have great
potential in the market because they are light, thin, and small and have widespread applications for
their perception, calculation, and action functions. We are currently mass producing MEMS
accelerometers, gyroscopes, pressure devices, and MEMS microphones, all of which are main
products for market growth. Furthermore, in response to the “Waste Electrical and Electronic
Equipment Directive (WEEE Directive)”, the “Restriction of the use of Hazardous Substance
(RoHS Directive)”, and the “Directive of Eco-design Requirements of Energy-using Products (EuP
Directive)” from the European Commission, our company has also introduced green production in
an effort to commit to eco-friendly assembly. Green products have entered our standard BOM of
products (excluding custom-made products), of which the substrates and resins also use
halogen-free materials.
The most recent annual R&D topics are as follows:
(1) .Power module assembly and testing, Al wedge and thin bonding wire and clip bonding
included
(2) .Assembly and testing of environmental optical sensing module for phone/mobile
devices
(3) .MEMS sensing module assembly
(4) .TO-277 assembly and testing
Recently, the increasingly serious damage on the environment has caused people to pay
more attention to environmental protection worldwide. Reducing carbon emissions has become a
focus for all countries. Carbon dioxide, such as exhaust from vehicles, is the main cause for the
greenhouse effect. Moreover, the excessive exploitation of oil has caused a global energy problem
due to its limited inventory. Therefore, the development of electric vehicles has also become a key
global issue. Since September 2012, we have become involved in the industrial technology
development program (TDP) of the Ministry of Economic Affairs and the Automotive High Current
IGBT Power Module Assembly Technology Development Program and have begun cooperating
with the Industrial Technology Research Institute (ITRI). This program has been developed for
product system application that can be applied to field tests of the electric vehicle program by the
Mechanical and Systems Research Laboratories of the Industrial Technology Research Institute.
Furthermore, we will engage all local electric vehicle firms to build critical parts for this product.
We believe that, together, a new world can be created for the local vehicle industry.
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(Table Above: Green products currently being developed)
Automotive power module
Low power module
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6.4 The Management and Procurement of Raw Materials
When our company wants to procure a qualified primary raw material (e.g., silver adhesive,
gold wire, copper wire, substrate, lead frame, resin, and covers), a Material Safety Data Sheet or
ingredient list must be attached to the application, which must be approved by our Environmental
Management Committee through a sampling recognition procedure after verifying that it meets
client demands. Upon arrival at our company, X-ray fluorescence is also used to monitor and ensure
that no environmental controlled substance is present. Furthermore, we request that a supplier’s
shipment guarantee specifies that “it meets LPI’s requirements for environmental substance control”.
Suppliers who have obtained ISO17025 certification are requested to provide an ICP test report
from a third-party certification agency to guarantee that their raw materials do not contain
environmental controlled substances. We manage the timeliness of materials through the “Supplier
Certification Information System”.
XRF test items Silver
adhesive
Gold/copper
wire
Substrate Lead
frame
Resin Ink Film
forming
agent
2013 batch 208 287 245 3632 785 6 30
Source: Monthly Incoming Quality Report, LPI, 2013 – All test results in 2013 met our
environmental substance control requirements.
Meanwhile, we regularly audit our system and review our management to ensure that we
continue to adhere to international laws, as well as clients’ non-hazardous substance requirements.
We also regularly research, follow and identify global, national, and local non-hazardous substance
directives relevant to our products, such as RoHS and REACH SVHC, to carry out a survey of our
suppliers and production units to ensure that products from the suppliers meet related requirements.
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6.5 Air Pollution and Waste Recycling Management
Our manufacturing processes generally refer to semiconductor assembly and testing, in which
the raw materials primarily used are wafers, lead frames, and epoxy. To prevent pollution during
manufacturing, we installed a carbon absorption tower and scrubber to handle the air pollution
problem. For wastewater, water is continuously recycled until it can no longer be used and is then
discharged to the wastewater treatment plant. Through resource recovery, the recoverable parts will
be recycled and non-recoverable parts will be sent to legal treatment firms to be handled
appropriately in an attempt to effectively reduce pollution and best use resources.
◆Air Pollution Management
The air pollutants created by our manufacturing process are mainly volatile organic
compounds and acid gas. To effectively reduce our production of air pollutants, we have adopted
the Best Available Control Technology (BACT). Our main air pollution control equipment
includes the carbon absorption tower and the scrubber. We also were granted an Operation
Permit of Stationary Pollution Source by the local environmental protection agency to meet the
requirements of relevant environmental protection laws.
Inspected
Production
Building
Inspected air pollutant Standard
THC
Sulfuric acid
droplet
Nitrate Ammonia THC Sulfuric acid
droplet Nitrate Ammonia
T1 0.0298kg/hr - - 7.9*10-4g/s
0.6 kg/hr 200mg/ Nm3 7.175*10
-3 0.2g/s
T2 0.0497kg/hr - - -
T4A 0.0723kg/hr 0.009mg/nm3 2.9*10
-5g/s -
T4B 0.0723kg/hr 0.008mg/nm3 4.4*10
-5g/s -
T5 0.0371kg/hr - - -
Our 2013 regulatory compliance and self-evaluation with regards to air pollution (Table 5)
The regular air pollutant inspection items in 2013 included THC for the T2 production
building and sulfuric acid droplet and nitrate for the T4 production building, among other
self-reinforcement items. Compared with the emission standards of stationary pollution sources
and semiconductor volatile organics, even the highest values of our volatile organic substances
were eight times lower than those of emission standards; the pollutants from acid gas (sulfuric
acid droplet and nitrate) and alkaline gas (ammonia) were one hundred times lower than that of
the legal emission standards. Clearly, we are committed to maintaining air quality.
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Our Air Pollution Control Equipment (Figure 9)
◆Waste Recycling and Treatment
With regards to waste management, we have abandoned the traditional approach of a
company sending waste to a treatment firm since it was unable to reduce its waste volume by
recycling. Instead, we firmly believe that waste reduction must start from the beginning with the
proper management of raw materials. Therefore, at the environmental management conference,
we requested that the production unit submit an improvement proposal for site production to
reduce the volume of raw materials, thus reducing waste.
Year Waste Reduction Program Achievement
2012
Reduce the resin consumption rate of the automated
molding press
31 tons of resin consumption
reduced per year
Reduce water consumption of cutting 5% reduction of cutting water
Reduce general waste and improve recycling More than 25% reduction of waste
Recycle plastic bags of molded resin 200 plastic bags recycled per year
Reduce the attrition rate of silver adhesive Attrition rate of silver adhesive
reduced to less than 2%
2013
Reduce the scrapping rate of silver adhesive Scrapped rate of silver adhesive
reduced to less than 8%
Reduce the supplies program of the cleaning mold 80 kg loss of cleaning mold
reduced per year
Reduce water waste and wastewater (soaking operation) 2171 tons of water saved per year
Reduce the attrition rate of resin Attrition rate of resin reduced to
4.75%
Our 2012-2013 Waste Reduction Programs (Table 6)
Since the waste that the manufacturing process generates may impact the environment, we
cooperate with recycling firms as much as possible in an attempt to at least maintain the residual
value of waste to reduce pollution. We schedule at least two audits annually of our treatment
firms by environmental protection professionals to ensure that we are reducing pollution and not
participating in inappropriate waste treatment.
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Our 2013 waste production and recycling (Figure 10)
Our Internal Recycling Car (Figure 11)
In 2013, we produced 994.7 tons of waste, of which 482.722 tons, 48.53% of the total waste,
underwent resource recovery. We are clearly committed to resource recovery. To further
strengthen our resource recovery rate, we even have a special recycling car (Figure 11) in which
common resource wastes, such as paper, iron and aluminum, and plastic, are recycled every day
directly in the factory.
Paper
Iron, aluminum
Plastic
Waste retort
pouches
Kitchen waste
Recycling firm
416.91 tons of resin scraps
63.17 tons of garbage
27.24 tons of organic waste
4.66 tons of sand blasting waste
Waste treatment (legal treatment)
Send waste to incinerator to produce
heat for electricity generation
Send waste to incinerator to produce
heat for electricity generation
Bury the residual waste after heat treatment
Bury
511.98 tons of do not recover
resources waste generated in
2013 with 51.47% of total
waste
51.47%
Waste treatment
(including
recovery of
resources)
482.72 tons of recovered resources waste generated in 2013 with 48.53% of total waste
253.54 tons of lead
frame scraps
0.1443 tons of silver
adhesive scraps
88.755 tons of waste
containing copper
0.1492 tons of ethanol and acetone waste
1.89 tons of lubricant waste
Recycle materials after physical
treatment and screening
Recycle valuable materials such as
silver through physical treatment
Recycle copper by treating it with
heat and then burying the residual
Distill ethanol and acetone for recycling
Refine lubricants for repeated use
Sort waste and recover the resources for re-use
138.244 tons of resource waste
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6.6 Water Resource Management
Research has indicated that the average temperature of Taiwan has increased around 1.4
degrees in the past 100 years due to the recent global climate change. Global warming has also
brought heavier and more concentrated rain and has increased the frequency of droughts in Taiwan.
According to the simulated data of Academia Sinica, every one-degree increase will result in 20
more non-raining days in Taiwan. Although Taiwan’s annual average rainfall is around 2,500 mm,
which is three times the global average rainfall of 880 mm, the actual rainfall utilization rate is less
than 20%. Therefore, water recycling is one of the challenges that the Taiwanese government
currently needs to face. This is a sensitive issue for us so we had our overall water resource
inspected and have implemented many water saving measures in the hope of reducing our impact on
Taiwan’s water resources.
◆Wastewater Treatment
The company produced 334,732 tons of wastewater annually, which were mainly the result of
the manufacturing process and were discharged into ditches in Taichung Export Processing Zone.
Our policy is to recycle as much wastewater as possible and discharge the rest to a wastewater
treatment plant. The primary pollutants in our wastewater are SS, COD, and some heavy metal
substances. Therefore, to treat our wastewater, we use chemical coagulation. The related treatment
procedure and subsequent inspection results are as follows:
Our wastewater treatment process (Figure 12)
Coagulation
tank PH adjustment
tank Slow mixing
tank Sludge settling
tank
Wastewater
Neutralization
tank
Sludge thickening
tank
Supernatant
Supern
atant
Sludge
pressure filter
Sand filtration or
carbon tower
Sludge drying
Effluent
Sludge
Effluent
Waste
treatment
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Inspected Production
building
Regular inspection item of effluent
PH SS COD F Pb Cu Nitrate Ammonia TTO Ag
T1 8.3 <1.3mg/L ND <0.1mg/L ND ND 1.67mg/L <0.04mg/L ND -
T2 7.9 2.3mg/L 29.6 mg/L <0.1 mg/L ND <0.05 mg/L 1.03 mg/L ND ND -
T4 7.4 13.5mg/L 56.5 mg/L 2.72 mg/L ND 0.45 mg/L 6.77 mg/L 1.51 mg/L <0.0193 mg/L <0.05 mg/L
T5 7.5 4.3 mg/L 5.7 mg/L <0.1 mg/L ND <0.05 mg/L 3.33 mg/L <0.04 mg/L ND -
Effluent standard
6~9 30 mg/L 100 mg/L 15 mg/L 1 mg/L 3 mg/L 50 mg/L 30mg/L 1.37mg/L 0.5mg/L
Our 2013 wastewater inspection results (Table 7)
◆Recycling of Wastewater from the Manufacturing Process
In order to effectively use water, we need to re-use wastewater generated in the
manufacturing process. In 2013, our underground water consumption was 736,794 tons, which
came mainly from the cutting, grinding, and forming of wafers. Repeated experiments and
testing led us to use a UF membrane to introduce recycled wastewater to the site process for
re-use in order to reduce the attrition of water. As of now, three UF membrane recycling systems
have been set up in the T2 production building, which has the highest water consumption. In
2013, 334,835 tons of wastewater was recycled, resulting in more than an 83% recycling
efficiency. Since the UF membrane system has so effectively recycled the wastewater, this
system is expected to be introduced to the T6 production building, which was completed in 2014,
to also enhance the water recycling rate here during the manufacturing process.
Our UF Wastewater Recycling System (Figure 13)
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Year 2011 2012 2013
Wastewater saved from
the manufacturing
process (ton) Approx. 240,000 Approx. 290,000 334,835
Recycling efficiency % 80 82 83
Wastewater recycled volume and efficiency of the T2 production building from 2011 to 2013 (Table
8)
◆Other water saving methods
Not only do we recycle wastewater, but we are also committed to reinforce water saving
principles through other methods. The RO drainage and backwash drainage from the water
purification system do not directly run to a wastewater treatment plant, but the underground
storage tank and pump to the cooling tower reduce water consumption. After concentrated
cooling occurs in the cooling tower, such water will not be discharged to a wastewater treatment
plant until it becomes unusable. In this case, around 49,831 tons of water can be saved each year.
Recycled water used in the cooling tower (Figure 14)
When the T6 production building was built in 2014, a rainfall recycling system and domestic
wastewater filtration system were incorporated in the hopes that this new water recycling system
can plan and develop new water resources. Furthermore, in order to effectively and reasonably use
and control water resources, we have incorporated a water resource monitor system into the
fundamental equipment of the new plant to effectively allocate rainfall and reduce water waste with
reasonable controls.
Rainwater Tank and Sewage Recycling System (Figure 15)
Water storage
tank For tower
cooling
RO and backwash drainage
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Our water resource management and control system (Figure 16)
空壓系統 Pneumatic system
氦氫混合系統 Hybrid helium-hydrogen system
空污系統 Air pollution system
原水槽 Raw water tank
使用點 Usage point
DI 輸送增壓 DI to convey supercharge
前處理 x3 套 Pre-treatment x 3 sets
前現場水質 Previous site water quality
後現場水質 Post site water quality
DI 供水系統 DI water supply system
軟水桶 Soft tank
UF 產水桶 UF water tank
ROR 產水桶 ROR water tank
UF 系統 x 2 套UF system x 2 sets
ROR 系統 x 2 套 ROR system x 2 sets
預過濾器 x 2 套 Pre-filter x 2 sets
電鍍水輸送 Electroplating water transport
EDI 產水桶 x2 EDI water tank x 2
RO 系統 x2 套 RO system x 2 sets
RO 排水槽 RO drainage channel
ROR 原水桶 ROR raw water tank
UF 廢水收集桶 x2 UF wastewater collection tank x
2
C 棟使用點 Usage point in building C
EDI 系統 x2 套 EDI system x 2 sets
RO 產水桶 x3 RO water tank x 3
切單/冷卻送水系統 Forming/cooling water supply
system
廢水前處理 x 2 套Wastewater pre-treatment x 2 sets
廢水暫存桶 x 6 Wastewater surge tank
現場水質 Site water quality
切單溫度 Forming temperature
切單壓力 Forming pressure
冷卻壓力 Cooling pressure
切單/冷卻增壓系統 Forming/cooling pressurization
system
電鍍廢水槽 Electroplating wastewater tank
系統累積流量 System accumulated flow
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7 Customer Service and Supplier Management
7.1 Customer Service and Satisfaction
We are committed to providing our clients with the best services and truly believe that
customer service is the key to maintaining customer loyalty. Customer loyalty can help improve
customer relationships and expand business. Our goal is maintaining our status as a professional
integrated circuit assembly and testing facility, and we believe that the aforementioned goal can be
achieved to build a strong relationship between existing customers, attract potential customers, and
enhance everyone’s trust.
To enhance customer satisfaction, we issue a customer satisfaction survey every quarter to
guarantee that customers’ demands are heard and properly handled. Customer feedback is also an
important basis for improving our ongoing operation procedures. Therefore, we provide our
customers with a customer satisfaction survey so that we can understand their specific demands and
expectations, as well as receive an official and direct response with which to measure our
performance and identify our deficiencies as a basis for our improvement strategies.
Thanks to the efforts of our business units, the average grades of each item on the 2013
customer satisfaction surveys were between 7.4 and 8.4. The total survey grades for each
quarterseason were all above 7.6 (out of 10 points).
◆Customer Privacy:
We consider customers’ confidential information and privacy as their exclusive rights. Their
exclusive technology, business secrets, the personal information of employees, and other
confidential or sensitive information will be kept confidential and protected by all of our colleagues
in accordance with our internal guidelines.
As part of our management system, we sign a non-disclosure agreement with all of our clients
to inform them of our guarantee to protect their confidential information and establish an internal
document management center that will allow customers’ confidential information to be used
internally only according to its level of confidentiality. Moreover, we strictly control the providing
and printing of files to prevent customers’ confidential information from being divulged. Due to
these strict control mechanisms, we did not receive any complaints related to customer privacy or
lost information in 2013.
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7.2 Supplier Management
Our suppliers are an important part of our operations. To ensure that raw material suppliers can
satisfy our operation strategies and demands, we regularly review their quality, price, delivery, and
services, as well as their related policies. We are committed to maintaining long-term relationships
with domestic and foreign suppliers to develop a steady and sustainable supply chain together.
Moreover, we encourage our suppliers to implement environmental protection measures, regard
employees’ safety and health, fulfill their corporate social responsibility and properly manage their
risk and sustainable development plans. We also promote local production and prioritize local
suppliers’ development in order to reduce our transportation costs and thus carbon emissions and
risks, as well. In 2013, the percentage of suppliers in Taiwan increased from 56.43% to 60.50% and
the percentage of procurement amount increased from 42.48% to 47.36% (compared to 52.64% of
foreign procurement). We will continue to support local suppliers and encourage foreign suppliers to
establish factories in Taiwan in order to both reduce production costs and risks and enhance the
company’s competitiveness.
◆Percentage of supplier numbers:
◆Percentage of procurement amount:
◆Risk management of supply chain:
To reduce the risk of interruption to the supply chain, we request that suppliers establish an
ongoing operation program to prevent closures without warning, natural disasters, or accidents
that could impact shipment, endanger our operations or affect stakeholders.
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For principal raw materials, such as silver adhesive, Au wire, Cu wire, substrate, lead frame,
and resin, we have constructed source locations to rapidly control the potential impact that a
local natural disaster could have on the supply of raw materials and we have at least two
replaceable manufacturers or origins at any given time.
Material /
origin
Taiwan Japan Korea Malaysia Singapore Other
Silver adhesive ˇ ◎ ˇ
Au/cu wire ˇ ◎ ˇ
Substrate ˇ ◎ ˇ
Lead frame ◎(stamping
work)
ˇ(etching
work)
ˇ(etching
work)
◎(etching
work)
ˇ(stamping
work)
Resin ◎ ˇ ˇ
◎: Primary origin; ˇ: secondary origin
◆Supplier Management Requirements
We request that all of our suppliers follow local laws, social norms, and environmental
protection regulations, pass our supplier review and approval operation, which includes a
supplier’s basic information, products, information regarding manufacturing and inspection
equipment, major clients, financial situation, certificate of non-use environmental managed
substances, quality control program, and procurement responsibilities and obligations, Suppliers
must also fill out a survey regarding their corporate social responsibility, safety and health,
regulations for labor human rights and conditions to fulfill environmental and societal
requirements. Details are as follows:
Perspective Management Item Basis of Standard
Management Quality, price, delivery, technology, and
service
ISO9001 2008 and TS16949;
2009 Quality System
Environment Prohibited and controlled substances SS-00259/RoHS/REACH,
ISO14001 and local laws
Society Labor safety and health, ethical norms OHSAS18000, Electronic
Industry Citizenship Coalition
(EICC)
To improve the overall competitiveness of the supply chain, we perform a monthly review
of suppliers in terms of their quality, delivery, price, and service and hold a review conference
based on the suppliers’ annual reviews to organize an audit program to ensure that they meet our
requirements.
According to clients’ requirements, as well as international non-hazard standards such as
RoHS and REACH SVHC, we have created the Environmental Substance Management
Guidelines, request that suppliers submit their green procurement policy based on environmental
protection, request that raw material suppliers sign a “Certification of Non-use of Environmental
Managed Substances” and provide a test report from a third-party certification agency. We
Page: 59/74
further feel that it is our responsibility to remind suppliers to provide their latest test reports
through the “Supplier Certification Information System” to achieve the goal of complete non-use
of environmental prohibited substances.
◆Supplier Evaluation
(1). Object: main raw material suppliers (e.g., silver adhesive, Au wire, Cu wire, substrate, lead
frame, resin, and solder products)
(2). Management unit: Procurement Section, Materials Department
(3). Implementation:
The ERP system will collect information on a monthly basis regarding the actual
performance of suppliers (quality, delivery, and price) that was evaluated by procurement
employees based on feedback from the using units and cooperation of suppliers and will then
notify the supplier as a reference for the procurement policy. Furthermore, an annual supplier
audit program will be proposed based on their annual quality evaluation results. The
implementation record is as follows:
Procurement Policy 2012 2013
1st priority 37 34
2nd
priority 7 7
Decrease purchasing 1 2
Limited purchasing and improvements required 0 0
Stop purchasing 0 0
Source: Supplier evaluations in 2012 and 2013
◆Supplier Audit
Our annual supplier audit program and the TS16949:2009 quality system/environmental
management system are expected to be listed among our corporate social responsibility in 2014.
The annual supplier audit program in 2013 is presented below. After performing a field audit, our
requirements for quality and an environmental management system were all met.
2013 Audit
program
Lead frame Substrate Cover Packaging
material
Number of
suppliers 4 2 2 2
◆Conflict-free Metal Guarantee
In response to global control measures regarding conflict minerals, we strongly request that
suppliers of such materials as Au, Sn, Ta, and Wu do not get their supplies directly or indirectly
from areas of conflict (including the Democratic Republic of Congo (DRC), Rwanda, Uganda,
Burundi, Tanzania, and Kenya) as such countries were identified as countries with minerals from
the DRC by the United Nations Security Council. Furthermore, we request that suppliers sign the
“Promise of Conflict-free Metals” and list it as one of their necessary conditions for supplier
approval in their procurement operations. In 2013, a survey (GeSI_CMRT R.2.03a) showed that
21 suppliers whose processes, packaging, or products contained Au, Sn, Ta, and Wu stated that
they did not use conflict metals directly or indirectly. We will continue to ask both our existing
and new suppliers to follow the non-use of conflict metals policy.
Page: 60/74
Material Sn Au Ta Wu Number of suppliers
Substrate ˇ 7
Solder Ball ˇ 3
Solder Paste ˇ 1
Solder Wire ˇ 1
Lead Frame ˇ 5
Au Wire ˇ 3
Passive components ˇ 0
Plating chemicals ˇ 1
Our materials that contain Au, Sn, Ta, and Wu (all are conflict-free metals)
Page: 61/74
8 Social Involvement
In our pursuit of sustainable operation, we also look forward to fulfilling our corporate social
responsibility. We encourage all of our employees to get involved in a variety of charities and
volunteer events (e.g., Mercy Association at Export Processing Zone), as well as participate in
disaster relief and make donations, in order to help those in need. In 2014, the company’s charity
club was established to promote participation in community development and charity events and
encourage our employees to contribute to society. Furthermore, since 2006, we have been involved
in our industry-university cooperative project.
8.1 Cooperation between industry and academics
◆Origin
In response to the manpower shortage in the advanced mechanical, electrical, optical, and
information fields and in order to realize our corporate social responsibility to care for children
who want to pursue higher education, but come from disadvantaged families, we have actively
participated in the industry-university cooperative project since 2006.
▲Interview from Issue 90 of the Higher Technical and Vocational Education Newsletter – with the
Director and Faculties of the Department of Electrical Engineering, National Chin-Yi University of
Technology
◆Current Status
Since the program’s beginning, we have enthusiastically promoted the industry-university
cooperative project, which has included collaboration with such institutions as Hsiuping
University of Science and Technology, Overseas Chinese University, National Chi-Yi University
of Technology, and Ta Hwa University of Science and Technology. We have maintained a close
relationship with the above schools in order to successfully share our image, effectively
contribute to the local community, develop a talent database, and cultivate superior management
associates that can grow with us as a company.
Due to the Ministry of Education’s Model University of Technology Development Program,
Page: 62/74
internship courses have become mandatory courses. Since 2012, we have coordinated with such
schools as Overseas Chinese University and National Chi-Yi University of Technology to accept
their students as interns. Recently, we have experienced a great demand for cadre at the basic
level due to our annually expanding operations. Through the internship program, students can
learn workplace skills and management knowledge to ensure that a manpower shortage will not
arise.
Our industry-university cooperation and campus events
Item School/Object Content
Industry-university
cooperation
National Chung
Hsing University
Develop a special class for semiconductor testing
and R&D
Hsiuping
University of
Science and
Technology
Develop a special class for industry-university
cooperation
Overseas
Chinese
University
Develop a special class for industry-university
cooperation
National Chi-Yi
University of
Technology
Develop a special class for industry-university
cooperation
Ta Hwa
University of
Science and
Technology
Develop a course that offers credits
Feng Chia
University
Industry-university cooperative project
Campus events
Campus
recruitment
Participate in campus recruitment events at each
school
Campus seminar Position internal head to share our philosophy and
semiconductor related career development
opportunities in the school
Interview with
faculty and
students
Make domestic and foreign students understand
the working environment of the semiconductor
field at an early age and promote interactions
between industry and academics
Offer part-time
job opportunities
Provide a part-time job program so that students
can experience actual work in the company and
reduce the difference between academics and
practice
Page: 63/74
▲Certificate of Appreciation from the Faculties and Students of National Chin-Yi University of
Technology
Page: 64/74
Appendix
Global Reporting Initiative (GRI) G3.1
GRI Guidelines Type Relevant chapter in this report Page Notes
1.Strategy and Analysis
1.1 Statement from the most senior
decision maker of the organization
(e.g., CEO, chair, or equivalent
senior position) about the
relevance of sustainability to the
organization and its strategy.
Strategy and
overview
1.1 Some Words from Management 4
1.2 Description of major impacts,
risks, and opportunities.
Strategy and
overview
2.3 Business Profile
2.4 Market Overview 10
12
2. Organizational Profile
2.1 Name of the organization. Strategy and
overview
2.1 About us 5,6
2.2 Primary brands, products, and/or
services.
Strategy and
overview
2.1 About us 5
2.3 Operational structure of the
organization,
including main divisions,
operating companies,
subsidiaries, and joint ventures.
Strategy and
overview
2.3 Business Profile 7,10
2.4 Location of organization’s
headquarters.
Strategy and
overview
2.1 About us 5,6
2.5 Number of countries where the
organization operates, and names
of countries with either major
operations or that are specifically
relevant to the sustainability issues
covered in this report.
Strategy and
overview
2.1 About us 5
2.6 Nature of ownership and legal
form.
Strategy and
overview
2.1 About us 6
2.7 Markets served (including
geographic breakdown, sectors
served, and types of
customers/beneficiaries).
Strategy and
overview
2.1 About us
2.3 Business Profile 5,8
2.8 Scale of the reporting
organization, including:
• Number of employees;
• Number of operations;
• Net sales (for private sector
organizations) or net revenues (for
public sector organizations);
• Total capitalization broken
down in terms
of debt and equity (for private
sector
organizations); and
• Quantity of products or services
provided.
Strategy and
overview
2. Company Profile 6,8,9
2.9 Significant changes during the
reporting period regarding size,
structure, or ownership
Strategy and
overview
Appendix – Global Reporting
Initiative G3.1 64 New production
building built at
TEPZ in 2013 and
began operating in
2014.
2.10 Awards received in the reporting
period.
Strategy and
overview
Appendix – Global Reporting
Initiative G3.1 64 No awards were
received during the
reporting period.
3. Report Profile 3.1 Reporting period (e.g.,
fiscal/calendar year) for the
information provided.
Strategy and
overview
OVERVIEW 3
3.2 Date of the most recent previous
report (if any).
Strategy and
overview
OVERVIEW 3 This report is the
company’s first.
3.3 Reporting cycle (annual, biennial,
etc.)
Strategy and
overview
OVERVIEW 3 A report will be
published every two
years.
3.4 Contact for questions regarding
the report or its contents.
Strategy and
overview
OVERVIEW 3
Page: 65/74
GRI Guidelines Type Relevant chapter in this report Page Notes
3.5 Process for defining report content,
including:
• Determining materiality;
• Prioritizing topics within the
report; and
• Identifying the stakeholders that
the organization expects to use the
report.
Strategy and
overview
4. Interactions with stakeholders 17
3.6 Scope of the report Strategy and
overview
OVERVIEW 3
3.7 State any specific limitations on the
scope or boundary of the report.
Strategy and
overview
OVERVIEW 3
3.8 Basis for reporting on joint
ventures, subsidiaries, leased
facilities, outsourced operations,
and other entities that could
significantly affect comparability
from period to period and/or
between organizations.
Strategy and
overview
Appendix – Global Reporting
Initiative G3.1 65 N/A
3.9 Data measurement techniques and
the bases of calculations, including
assumptions and techniques that are
fundamental to estimations applied
to the compilation of the Indicators
and other information in this report.
Strategy and
overview
Appendix – Global Reporting
Initiative G3.1 65 A description is
provided in each
chapter.
3.10 Explanation of the effect of any
re-statements of information
provided in earlier reports, and the
reasons for such re-statements (e.g.,
mergers/acquisitions, change of
base years/periods, nature of
business, measurement methods).
Strategy and
overview
Appendix – Global Reporting
Initiative G3.1 65 This is the company’s
first.
3.11 Significant changes from previous
reporting periods in the scope,
boundary, or measurement methods
applied in the report.
Strategy and
overview
Appendix – Global Reporting
Initiative G3.1 65 This is the company’s
first.
3.12 Table identifying the location of the
Standard Disclosures in this report.
Identify the page numbers or web
pages where the above can be
found.
Strategy and
overview
Appendix – Global Reporting
Initiative G3.1 64
3.13 Policies and current practices with
regards to seeking external
assurance for this report.
Strategy and
overview
Report Summary, Appendix -
Independent Assurance Opinion
Statement
3,73
4. Governance, Commitments, and Engagement
4.1 Governance structure of the
organization, including committees
under the highest governance body
responsible for specific tasks, such
as planning strategy or
organizational oversight.
Strategy and
overview
3.2 Profile of Corporate
Governance 13
4.2 Indicate whether the Chair of the
highest governance body is also an
executive officer.
Strategy and
overview
3.2 Profile of Corporate
Governance 14
4.3 For organizations that have a
unitary board structure, state the
number and gender of members of
the highest governance body that
are independent and/or
non-executive members.
Strategy and
overview
3.2 Profile of Corporate
Governance 14
4.4 Mechanisms for shareholders and
employees to provide suggestions
or direction to the highest
governance body.
Strategy and
overview
3.2 Profile of Corporate
Governance, 4. Interactions with
Stakeholders
16,18,
19
4.5 Link between compensation for
members of the highest governance
body, senior managers, and
executives.
Strategy and
overview
3.2 Profile of Corporate
Governance 14
4.6 Processes in place for the highest
governance body to ensure that
conflicts of interest are avoided.
Strategy and
overview
3.2 Profile of Corporate
Governance 15
Page: 66/74
GRI Guidelines Type Relevant chapter in this report Page Notes
4.7 Process for determining the
composition, qualifications, and
expertise of the members of the
highest governance body and its
committees, including any
consideration of gender and other
indicators of diversity.
Strategy and
overview
3.2 Profile of Corporate
Governance 14
4.8 Internally developed statements of
mission or values, codes of conduct,
and principles relevant to economic,
environmental, and social
performance and the status of their
implementation.
Strategy and
overview
1.1 Words from Management,
1.2 Our Corporate Social
Responsibility,
3.1 Principle of Corporate
Governance,
3.2 Profile of Corporate
Governance
4,13
4.9 Procedures of the highest
governance body for overseeing the
organization’s identification and
management of economic,
environmental, and social
performance, including relevant
risks and opportunities, and
adherence or compliance with
international standards, codes of
conduct, and principles.
Strategy and
overview
3.2 Profile of Corporate
Governance 13
4.10 Processes for evaluating the highest
governance body’s own
performance, particularly with
respect to economic, environmental,
and social performance.
Strategy and
overview
3.2 Profile of Corporate
Governance 13
4.11 Explanation of whether and how the
company’s precautionary approach
or principle is addressed by the
organization.
Strategy and
overview
3.2 Profile of Corporate
Governance,
6.3 Green Products
13~16,
46
4.12 Externally developed economic,
environmental, and social charters,
principles, or other initiatives to
which the organization subscribes
or endorses.
Strategy and
overview
1.2 Our Social Corporate
Responsibility,
3 Corporate Governance,
5 Personnel Training and Harmony
and Safety in the Workplace,
6 Environmental Protection,
7.2 Supplier Management
4,13,
21,36,
57~60
4.13 Memberships in associations (such
as industry associations) and/or
national/international advocacy
organizations.
Strategy and
overview
2.3 Business Profile 10
4.14 List of stakeholder groups engaged
by the organization.
Examples of stakeholder groups
are:
• Civil society;
• Customers;
• Local communities;
• Shareholders and providers of
capital.
Strategy and
overview
4. Interactions with Stakeholders 17
4.15 Basis for identification and
selection of stakeholders with
whom to engage.
Strategy and
overview
4. Interactions with Stakeholders 17
4.16 Approaches to stakeholder
engagement, including frequency of
engagement by type and by
stakeholder group.
Strategy and
overview
4. Interactions with Stakeholders 17,19,
20
4.17 Key topics and concerns that have
been raised through stakeholder
engagement, and how the
organization has responded to those
key topics and concerns, including
through its reporting.
Strategy and
overview
4. Interactions with Stakeholders 17~20
Page: 67/74
GRI Guidelines Type Relevant chapter in this report Page Notes
5. Management Approach and Performance Indicators
Economic
DMA Disclosure on Management
Approach 2. Company Profile 5
EC1 Direct economic value generated
and distributed, including revenues,
operating costs, employee
compensation, donations and other
community investments, retained
earnings, and payments to capital
providers and governments.
Core guidance 2.3 Business Profile 9
EC2 Financial implications and other
risks and opportunities for the
organization’s activities due to
climate change.
Core guidance 6.2 Carbon Management 39
EC3 Coverage of the organization’s
defined benefit plan obligations. Core guidance 5.1 Salary and Benefits 21
EC4 Significant financial assistance
received from the government. Core guidance N/A -
EC5 Range of ratios of standard entry
level wage by gender compared to
local minimum wage at significant
locations of operation.
Additional
guidance
N/A -
EC6 Policy, practices, and proportion of
spending on locally-based suppliers
at significant locations of operation.
Core guidance 7.2 Supplier Management 57
EC7 Procedures for local hiring and
proportion of senior management
hired from the local community at
locations of significant operation.
Core guidance 5.2 Equal Employment
Opportunity, Labor Restrictions,
Appendix – Global Reporting
Initiative G3.1
26,67 All senior
management
positions are held by
local employees of
Taiwan. EC8 Development and impact of
infrastructure investments and
services provided primarily for
public benefit through commercial,
in-kind, or pro bono engagement.
Core guidance 8 Social Involvement 61
EC9 Understanding and describing
significant indirect economic
impacts, including the extent of said
impacts.
Additional
guidance
8.1 Cooperation between Industry
and Academics 61
Environmental DMA Disclosure on Management
Approach 6 Environmental Protection 36
EN1 Materials used by weight or
volume. Core guidance N/A -
EN2 Percentage of materials used that
are recycled input materials. Core guidance Appendix – Global Reporting
Initiative G3.1 67 We do not use
recycled materials in
our manufacturing
process.
EN3 Direct energy consumption by
primary energy source. Core guidance 6.2 Carbon Management –
Greenhouse gas inspection 41~42
EN4 Indirect energy consumption by
primary source. Core guidance 6.2 Carbon Management –
Greenhouse gas inspection 41~42
EN5 Energy saved due to conservation
and efficiency improvements.
Additional
guidance
6.2 Carbon Management – Energy
saving and emission reduction
program
43~44
EN6 Initiatives to provide
energy-efficient or renewable
energy based products and services,
and reductions in energy
requirements as a result of these
initiatives.
Additional
guidance
6.2 Carbon Management – Energy
saving and emission reduction
program
6.3 Green Products
43~45,
46
EN7 Initiatives to reduce indirect energy
consumption and the reductions
achieved.
Additional
guidance
N/A
-
EN8 Total water withdrawal by source. Core guidance 6.6 Water Resource Management 52
EN9 Water sources significantly affected
by withdrawal of water.
Additional
guidance
N/A -
EN10 Percentage and total volume of
water recycled and reused.
Additional
guidance
6.6 Water Resource Management 53~54
Page: 68/74
GRI Guidelines Type Relevant chapter in this report Page Notes
EN11 Location and size of land owned,
leased, managed in, or adjacent to,
protected areas and areas of high
biodiversity value outside protected
areas.
Core guidance Appendix – Global Reporting
Initiative G3.1 68 Our five production
buildings and one
raw material
warehouse are not
located in preserved
areas, but
nevertheless we have
adopted relevant
environmental
protection measures.
EN12 Description of significant impacts
of activities, products, and services
on biodiversity in protected areas
and areas of high biodiversity value
outside protected areas.
Core guidance
EN13 Habitats protected or restored. Additional
guidance
EN14 Strategies, current actions, and
future plans for managing the
company’s impact on biodiversity.
Additional
guidance
EN15 Number of IUCN Red List species
and national conservation list
species with habitats in areas
affected by operations, by level of
extinction risk.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 68 Species listed in the
IUCN Red List and
national conservation
are not located in our
business operation
area.
EN16 Total direct and indirect greenhouse
gas emissions by weight.
Core guidance 6.2 Carbon Management 41~42
EN17 Other relevant indirect greenhouse
gas emissions by weight.
Core guidance 6.2 Carbon Management 42
EN18 Initiatives to reduce greenhouse gas
emissions and the reductions
achieved.
Additional
guidance
6.2 Carbon Management – Energy
saving and emission reduction
program
43~44
EN19 Emissions of ozone-depleting
substances by weight.
Core guidance N/A -
EN20 NO, SO, and other significant air
emissions by type and weight.
Core guidance 6.5 Air Pollution and Waste
Recycling Management – Air
pollution management
49
EN21 Total water discharge by quality and
destination.
Core guidance 6.6 Water Resource Management 52
EN22 Total weight of waste by type and
disposal method.
Core guidance 6.5 Air Pollution and Waste
Recycling Management – Waste
recycling and treatment
50~51
EN23 Total number and volume of
significant spills.
Core guidance Appendix – Global Reporting
Initiative G3.1 68 The company had no
environmental
tribunals in 2013.
EN24 Weight of transported, imported,
exported, or treated waste deemed
hazardous under the terms of the
Basel Convention Annex I, II, III,
and VIII, and the percentage of
transported waste shipped
internationally.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 68 The company had no
relevant
circumstances.
EN25 Identity, size, protected status, and
biodiversity value of bodies of
water and related habitats
significantly affected by the
reporting organization’s discharges
of water and runoff.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 68 The company had no
significant impact on
the ecology or
environment.
EN26 Initiatives to mitigate
environmental impacts of products
and services, and the extent of
impact mitigation.
Core guidance 6.3 Green Products 46
EN27 Percentage of products sold and
their packaging materials that are
reclaimed by category.
Core guidance N/A -
EN28 Monetary value of significant fines
and total number of non-monetary
sanctions for noncompliance with
environmental laws and regulations.
Core guidance Appendix – Global Reporting
Initiative G3.1 68 The company had no
environmental
tribunals in 2013.
EN29 Significant environmental impacts
of transporting products and other
goods and materials used for the
organization’s operations and
transporting members of its
workforce.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 68 The company had no
significant impact on
the environment.
Page: 69/74
GRI Guidelines Type Relevant chapter in this report Page Notes
EN30 Total environmental protection
expenditures and investments by
type.
Additional
guidance
N/A -
Labor Practices and Decent Work DMA Disclosure on Management
Approach 5 Personnel Training and Harmony
and Safety in the Workplace 21
LA1 Total workforce by employment
type, employment contract, and
region, broken down by gender.
Core guidance N/A -
LA2 Total number and rate of new
employee hires and employee
turnover by age group, gender, and
region.
Core guidance N/A -
LA3 Benefits provided to full-time
employees that are not provided to
temporary or part-time employees,
by significant locations of
operation.
Additional
guidance
5.1 Salary and Benefits 21
LA4 Percentage of employees covered
by collective bargaining
agreements.
Core guidance 5.5 Labor Relation, Appendix –
Global Reporting Initiative G3.1 34,69 All of our employees
are permitted to join a
union.
Labor-management
meetings are held
regularly.
LA5 Minimum notice period(s)
regarding operational changes,
including whether it is specified in
the collective agreements.
Core guidance Appendix – Global Reporting
Initiative G3.1 69 We follow internal
operation regulations
to meet legal
requirements. For
example, pre-notice
of severance shall be
made 10 days in
advance for those
who have worked for
the company more
than three months but
less than one year.
LA6 Percentage of total workforce
represented in formal joint
management–worker health and
safety committees that help monitor
and advise on occupational health
and safety programs.
Additional
guidance
5.3 Occupational Safety and Health 29
LA7 Rates of injury, occupational
diseases, lost days, and
absenteeism, and total number of
work-related fatalities, by region
and by gender.
Core guidance 5.3 Occupational Safety and Health 32
LA8 Education, training, counseling,
prevention, and risk-control
programs in place to assist
workforce members, their families,
or community members regarding
serious diseases.
Core guidance 5.3 Occupational Safety and Health 31
LA9 Health and safety topics covered in
formal agreements with trade
unions.
Additional
guidance
N/A -
LA10 Average hours of training per year
per employee by gender, and by
employee category.
Core guidance 5.4 Educational Training 32~34
LA11 Programs for skills management
and lifelong learning that support
the continued employability of
employees and assist them in
managing career endings.
Additional
guidance
5.4 Educational Training 32
LA12 Percentage of employees receiving
regular performance and career
development reviews, by gender.
Additional
guidance
5.4 Educational Training 32
Page: 70/74
GRI Guidelines Type Relevant chapter in this report Page Notes
LA13 Composition of governance bodies
and breakdown of employees per
employee category according to
gender, age group, minority group
membership, and other indicators of
diversity.
Core
guidance
5.2 Equal Employment Opportunity,
Labor Restrictions 26
LA14 Ratio of basic salary and
remuneration of women to men by
employee category, by significant
locations of operation.
Core
guidance
N/A -
LA15 Return to work and retention rates
after parental leave, by gender.
Core
guidance
5.1 Salary and Benefits 22
Human Rights
DMA Disclosure on Management
Approach 5 Personnel Training and Harmony
and Safety in the Workplace 21
HR1 Percentage and total number of
significant investment agreements
and contracts that include clauses
that incorporate human rights
concerns or have undergone human
rights screening.
Core
guidance
Appendix – Global Reporting
Initiative G3.1 70 This report contains
no human right
provisions or human
rights review. Once
planned, human
rights provisions will
be exercised and
disclosed.
HR2 Percentage of significant suppliers,
contractors, and other business
partners that have undergone human
rights screening, and subsequent
actions taken.
Core
guidance
N/A -
HR3 Total hours of employee training on
policies and procedures concerning
aspects of human rights that are
relevant to operations, including the
percentage of employees trained.
Core
guidance
5.4 Educational Training,
Appendix – Global Reporting
Initiative G3.1
32,70 Human rights
training courses were
included in the new
employee educational
training.
HR4 Total number of incidents of
discrimination and corrective
actions taken.
Core
guidance
Appendix – Global Reporting
Initiative G3.1 70 The company had no
relevant
circumstances.
HR5 Operations and significant suppliers
identified in which the right to
exercise freedom of association and
collective bargaining may be
violated or at significant risk, and
actions taken to support these
rights.
Core
guidance
5.5 Labor Relations,
7.2 Supplier Management 34,
57~59
HR6 Operations and significant suppliers
identified as having significant risk
for incidents of child labor, and
measures taken to contribute to the
effective abolition of child labor.
Core
guidance
5.5 Labor Relations,
7.2 Supplier Management 34,
58~59
HR7 Operations and significant suppliers
identified as having significant risk
for incidents of forced or
compulsory labor, and measures to
contribute to the elimination of all
forms of forced or compulsory
labor.
Core
guidance
5.2 Equal Employment Opportunity,
Labor Restrictions,
5.5 Labor Relations,
7.2 Supplier Management
29,34,
58~59
HR8 Percentage of security personnel
trained in the organization’s policies
or procedures concerning aspects of
human rights that are relevant to
operations.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 70 Security personnel
were trained with
regards to human
rights when taking
office.
HR9 Total number of incidents of
violations involving rights of
indigenous people and actions
taken.
Additional
guidance
N/A -
HR10 Percentage and total number of
operations that have been subject to
human rights reviews and/or impact
assessments.
Core
guidance
N/A -
Page: 71/74
GRI Guidelines Type Relevant chapter in this report Page Notes
HR11 Number of grievances related to
human rights filed, addressed and
resolved through formal
grievance mechanisms.
Core guidance N/A -
Society
DMA Disclosure on Management
Approach 8 Social Involvement 61
SO1 Percentage of operations with
implemented local community
engagement, impact assessments,
and development programs.
Core guidance 8.1 Cooperation between Industry and
Academics 61
SO2 Percentage and total number of
business units analyzed for risks
related to corruption.
Core guidance N/A -
SO3 Percentage of employees trained
in the organization’s
anti-corruption policies and
procedures.
Core guidance 5.4 Educational Training,
Appendix – Global Reporting
Initiative G3.1
32,71 Anti-corruption
courses were
included in the new
employee
educational
training.
SO4 Actions taken in response to
incidents of corruption.
Core guidance Appendix – Global Reporting
Initiative G3.1 71 The company had no
corruption
incidents in 2013.
SO5 Public policy positions and
participation in public policy
development and lobbying.
Core guidance Appendix – Global Reporting
Initiative G3.1 71 We support public
policy without
lobbying.
SO6 Total value of financial and
in-kind contributions to political
parties, politicians, and related
institutions by country.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 71 The company made no
political donations
in 2013.
SO7 Total number of legal actions for
anticompetitive behavior,
anti-trust, and monopoly practices
and their outcomes.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 71 The company had no
relevant
circumstances.
SO8 Monetary value of significant
fines and total number of
non-monetary sanctions for
noncompliance with laws and
regulations.
Core guidance Appendix – Global Reporting
Initiative G3.1 71 The company had no
penalties in 2013.
SO9 Operations with significant
potential or actual negative
impacts on local communities.
Core guidance Appendix – Global Reporting
Initiative G3.1 71 No operation
activity had a
significantly
potential or actual
negative impact on
the local community.
SO10 Prevention and mitigation
measures implemented in
operations with significant
potential or actual negative
impacts on local communities.
Core guidance Appendix – Global Reporting
Initiative G3.1 71 The company had no
relevant
circumstances.
Product Responsibility DMA Disclosure on Management
Approach 6.3 Green Products 46
PR1 Life cycle stages in which health
and safety impacts of products
and services are assessed for
improvement, and percentage of
significant products and services
categories subject to such
procedures.
Core guidance N/A -
PR2 Total number of incidents of
noncompliance with regulations
and voluntary codes concerning
health and safety impacts of
products and services during their
life cycle, by type of outcome.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 71 The company had no
violation of any
product or service
against health and
safety laws.
Page: 72/74
GRI Guidelines Type Relevant chapter in this report Page Notes
PR3 Type of product and service
information required by
procedures, and the percentage of
significant products and services
subject to such information
requirements.
Core guidance N/A -
PR4 Total number of incidents of
noncompliance with regulations
and voluntary codes concerning
product and service information
and labeling, by type of outcome.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 72 The company had no
violation of any
product or service
against information and
indication laws.
PR5 Practices related to customer
satisfaction, including results of
surveys measuring customer
satisfaction.
Additional
guidance
7.1 Customer Service and Satisfaction 56
PR6 Programs for adherence to laws,
standards, and voluntary codes
related to marketing
communications, including
advertising, promotion, and
sponsorship.
Core guidance Appendix – Global Reporting
Initiative G3.1 72 We are a professional
assembly and testing
organization That does
not publicly sell
products.
PR7 Total number of incidents of
non-compliance with regulations
and voluntary codes concerning
marketing communications,
including advertising, promotion,
and sponsorship, by type of
outcome.
Additional
guidance
Appendix – Global Reporting
Initiative G3.1 72 The company had no
violation against
marketing and
communication laws.
PR8 Total number of substantiated
complaints regarding breaches of
customer privacy and loss of
customer data.
Additional
guidance
7.1 Customer Service and Satisfaction 56
PR9 Monetary value of significant
fines for noncompliance with
laws and regulations concerning
the provision and use of products
and services.
Core guidance N/A -
Page: 73/74
Independent Assurance Opinion Statement
Page: 74/74
