Chairman's Talk
 
                                                                                                                                                
In the year 2020, the novel coronavirus pneumonia was rampant around the world, changing human habits and making "epidemic prevention" an important issue that must be faced globally. While governments were actively taking measures to prevent the epidemic, Wafer Works Corporation also deployed ahead of schedule in promoting various control measures, treating epidemic prevention like a battle, including daily temperature measurement, elevator shunting, separation of personnel into separate offices, strengthening plant cleaning operations and regular disinfection, strictly controlling the entry and exit of personnel, and keeping department heads concerned about the health status of employees and their families to reduce the risk of cluster infection. We also maintain communication with our customers and suppliers through video conference to make them feel at ease and maintain the normal operation of the plant on the one hand. However, at this time, NASA has seen an unprecedentedly clean Earth from satellites, which shows the importance of human activities on ecological damage and sustainable development. Taiwan is currently facing the most severe drought in 56 years, and all major reservoirs in Taiwan are in dire need of water storage. The importance of water resources is further highlighted by the fact that Shanghai Wafer Works' Songjiang plant was shut down and relocated in the fourth quarter of 2018 in accordance with environmental protection laws because it is located in a water conservation zone. After two years of planning and construction, the new plant of Shanghai Wafer Works will resume mass production in the third quarter of this year, and will take environmental protection as its responsibility while enhancing production capacity. Under the impact of the epidemic, traditional business activities have been drastically reduced and the global economy is in recession of about 4.5%. Only the prevalence of remote work, video conferencing and the Internet economy has led to a significant increase in demand for semiconductors, including silicon wafers and related industries. Wafer Works' annual shipments grew 20% compared to the same period in 2019, with shipments of 8-inch silicon wafers hitting a new high in the fourth quarter, and new products such as 12-inch epi wafers were also certified by customers and officially entered mass production. Although the Group's consolidated revenue was slightly lower than last year due to the decline in average selling prices, rising transportation costs and the significant appreciation of the TWD, there was otherwise significant improvement in quality, technology and cost control. I always say that quality is to meet the present and future needs of our customers, and without quality there is no future. This year, Wafer Works will fully apply big data analysis and automated production to refine product quality, submit the best quality products to customers, and move towards the goal of "becoming a customer-oriented semiconductor material supplier".
 
Wafer Works will continue to cultivate the Taiwan market and expand its global presence, and implement good corporate social responsibility to pursue sustainable growth and become a good corporate citizen. The more influential a company is, the more it should incorporate the concept of sustainable management into its operational goals. With these beliefs, Wafer Works has been promoting environmental protection and energy conservation and green manufacturing to drive progress through innovation. In recent years, in addition to promoting green plants, green manufacturing and green supply chains, Wafer Works has also continued to promote water management and carbon management, pursuing the best efficiency in the use of energy and resources, and actively investing in waste reduction and pollution prevention, transforming traditional cleaning and disposal into effective resource management through recycling and reuse, and implementing sustainable production. In our daily life, waste recycling and environmental protection and energy saving have become habits, so that the environmental impact of our factory and products can be reduced after production. In addition, Wafer Works also effectively combines the company's resources with the spontaneous love and charity of its employees to implement social care and support employees' interaction with society, finding more concrete points to pass love on and give back to society. In addition to continuing to provide resources and care for disadvantaged groups, the company also encourages employees to participate in blood donation, street cleaning, and various social welfare and community activities, so as to unite the strength of all people and exert influence to create value for the environment and society, and to achieve a better and sustainable future.