Sustainability Partnerships

 

 

Product Safety

To fulfill its social responsibility, Wafer Works observes the Responsible Business Alliance (RBA) Code of Conduct and undergoes RBA-VAP verification by a third party. The Company has also obtained certifications such as ISO 9001:2015、IATF 16949:2016 、ISO 50001:2018、ISO 14001:2015、ISO 14064-1:2006、ISO 14064-1:2018、ISO 45001:2018、ISO 59004:2024、ISO/IEC 27001:2022. Wafer Works identifies and formulates response measures for risks encountered at all levels of its operations, ensuring more stable and smooth business management.

Wafer Works' products comply with regulatory requirements and are clearly labeled with detailed information such as origin, ingredients, and warnings. During the reporting period, there were no instances of violations related to product and service information and labeling, nor were there any breaches of regulations governing product marketing communications (including advertising, promotions, and sponsorships). Consequently, there were no severe penalties or significant fines.

The products provided by Wafer Works have no significant impact on health and safety and meet the needs of customers and other stakeholders. In 2025, the Company achieved a 100% recovery rate from suppliers who submitted RoHS reports and declarations of compliance with the prohibition of hazardous substances.

 

 

List of Products or Services with Safety Certifications

 

 

 

Product Quality

Wafer Works has obtained ISO 9001 : 2015 and IATF 16949 : 2016 certifications for its quality management system. Guided by the principles of these systems, we monitor the performance of our products, processes, and systems using a process-based approach. This involves continuous measurement, analysis, review, and improvement of all processes to ensure effectiveness.

As stated in Wafer Works' quality policy: "Strictly adhere to management procedures and operational standards, enhance the execution of the quality system, implement continuous improvement strategies, pursue optimal quality goals, and strive to meet current and future customer needs to achieve customer satisfaction." Wafer Works is dedicated to promoting continuous improvement activities within the organization, embedding a culture of quality improvement deeply within the Company. To this end, Wafer Works encourages all employees to suggest improvements in their work areas to boost the effectiveness of various processes, including product quality, cost efficiency, and lean production. Through these ongoing improvement initiatives, our objective is to bolster our internal quality capabilities and ethos, thereby delivering consistent, top-tier products to our customers and attaining excellence.

To enhance production quality, specific yield targets were set as KPIs. To meet these targets, the Company not only reviews daily production statistics and provides monthly progress reports during management meetings, but also holds weekly crystal growth technology meetings and engineering technical symposiums. These efforts begin at the product source, aiming to improve technologies and quality while simultaneously achieving energy conservation, carbon reduction, and cost competitiveness.

In addition to internal improvements, the Company also invites external consultants for technical exchanges and training sessions to acquire professional knowledge, enhance product quality, optimize product portfolios and capacity utilization, and develop new products and process technologies to better serve a wider range of customers.

In 2025, 9 Quality Control Circle (QCC) improvement teams were formed by employees at Wafer Works. These team members collaborated to analyze the current situation using quality tools and proposed improvement solutions to optimize existing processes. Throughout the year, they completed 32 improvement projects, which significantly benefited the production line operations.

In addition to the QCC, Wafer Works encourages all employees to participate in the improvement proposal program. Every employee can submit improvement suggestions through the system. We value the wisdom and experience of every employee. If a proposal is deemed feasible after review and evaluation, it is implemented promptly to directly and quickly enhance or optimize current operations. Meanwhile, employees who submit proposals are rewarded accordingly. In 2025, Wafer Works received 161 proposals, with 21 being recognized as highly effective and excellent suggestions.

Continuous Improvement Flowchart

 

 

 

 

 

Intellectual Property

Wafer Works places great importance on its own intellectual property rights and also respects the intellectual property rights of others. Whether in product development, technological R&D, or application, the Company operates on the premise of not infringing upon the intellectual property rights of others, while utilizing various intellectual property protection measures to comprehensively safeguard its own innovations and inventions. In doing so, the Company enables its intangible assets to complement its tangible assets, thereby building the foundation for corporate's sustainable development.

To protect its proprietary R&D achievements, prevent infringement disputes to reduce operational risks, and enhance competitiveness to establish an industry-leading position, the Company adopts a dual strategy of R&D and patent portfolio deployment. The Company has established comprehensive patent application management and patent incentive measures to encourage employees to innovate. By integrating patent applications with corporate development strategies, the Company aims to increase its patent output. Subsequently, regular patent reviews are conducted to evaluate existing assess patent value, while monitoring competitors' related patents to ensure that the Company is free from patent-related risks. To date, the Company has accumulated a total of 56 patents.

For innovative technologies or non-technical information that are not suitable for patent protection, the Company classifies and protects such information as trade secrets based on factors such as leakage impact and economic value. The Company utilizes an established trade secret management system to store such trade secrets and strictly controls personnel's access. In addition, the Company implements information security management systems and sensitive information protection measures to prevent the leakage of confidential information through digital or physical channels, thereby ensuring the protection of trade secrets.

To protect the brand identity of the products and services provided by the Company, Wafer Works applied for the "Wafer Works" trademark during its early establishment period and subsequently filed additional trademark applications based on product characteristics and business needs. With respect to the use of copyrighted works, the Company respects all products protected by copyright laws. In particular, employees are prohibited from illegally using computer software or downloading any software onto shared computers and are required to comply with the lawful restrictions established by software and database owners.

In summary, the Company's policy direction is to utilize intellectual property rights as a safeguard system for technological innovation, protecting R&D achievements and brand image, preventing external interference, and further creating intellectual property value in order to achieve the goal of corporate's sustainable operations.

Customer Satisfaction

Wafer Works Corporation adheres to a customer-centric approach, striving to meet both current and future customer needs. The Company is committed to maintaining high quality standards to enhance customer satisfaction. In 2025, Wafer Works conducted a customer satisfaction survey targeting its top 30 customers, achieving a score of 84.96. Customers gave high evaluations of the Company's product quality and services, surpassing the annual target of 80 points and showing significant improvement. Moving forward, the Company will continue to manage customer-related issues to meet and exceed customer expectations.

 

Recent Trends in Customer Satisfaction Performance

 

 

 

Customer Privacy

"Honesty and Innovation" is one of Wafer Works' core business principles. Before initiating any business relationship, a Non-Disclosure Agreement (NDA) is signed to ensure the confidentiality of shared information. Internally, employees are required to sign confidentiality agreements and regularly participate in training sessions and awareness programs to emphasize the importance of data protection and confidentiality. To further safeguard Wafer Works' data, USB access on all employee computers is disabled. The legal affairs department conducts educational training to reinforce these measures. Additionally, the Company employs firewalls, electronic file encryption systems, and electronic personal data storage platforms to control and audit the access and usage records of relevant personnel, ensuring robust customer data protection.

 

Wafer Works has established a Code of Ethical Business Conduct to protect the personal data and privacy of all business associates, including suppliers, customers, consumers, and employees. This code ensures compliance with privacy and information security laws and regulatory requirements during the collection, storage, processing, transmission, and sharing of personal data. In 2025, Wafer Works received no complaints regarding customer privacy violations or data loss.

 

In terms of personnel management, Wafer Works raises employees' information security awareness. New hires undergo onboarding training and sign an "Employee Code of Conduct Statement," while current employees receive ongoing information security briefings. Data access is tiered to ensure secure handling, and CRM/ERP system management data is protected at the highest level of confidentiality. Wafer Works has also refined its information security management system, continuously strengthening system and data security. This includes the building of comprehensive gateway control devices, antivirus systems, network access control systems, system vulnerability enhancements, and file encryption systems. Company regulations are established to prevent data leakage incidents.

Wafer Works is committed to establishing long-term partnerships with suppliers to ensure supply chain stability. By signing contracts, we secure a better and more stable source of raw materials, thereby enhancing the Company's competitiveness. Additionally, through the establishment of an integrated system, we conduct supplier evaluations considering factors such as "price," "quality," "delivery time," and "sustainable development." This evaluation process ensures that suppliers abide by regulatory and environmental requirements. These measures help us select the most suitable domestic suppliers, strengthening supply chain management and contributing to the sustainable development of the supply chain.

Supply Chain Interaction

By actively investing manpower and resources in the investigation and verification of raw material suppliers, Wafer Works has developed comprehensive supply chain management guidelines and measures to lead suppliers in mutual growth. This includes supplier management, supplier evaluation, supplier audits, and green material requirements, guiding suppliers to meet green supply chain requirements and mitigate supply chain risks.

 

When introducing new suppliers for critical and important raw materials, Wafer Works requires suppliers to sign the "Supplier Evaluation Form" and "RBA Code of Conduct". Additionally, they must provide a "Third-party Quality System Certificate," "Supplier Process/Product Change Notice (PCN) Management Principles," and sign the "Commitment to Prohibit the Use of Hazardous Substances" and "Declaration of Non-Use of Conflict Minerals" before collaboration can commence.To effectively manage internal hazardous substance data, Wafer Works Corporation has incorporated environmental protection principles into its supplier management mechanisms.

 

Since 2018, Wafer Works has referenced the control regulations for prohibited substances under the RoHS directives and customer requirements, requiring all suppliers of critical and important materials to ensure that the raw materials and packaging materials they use comply with environmental protection standards. Wafer Works respects fundamental human rights and rejects the use of minerals obtained through illegal mining practices such as forced labor and child labor. In accordance with conflict minerals regulations, the Company requires suppliers to commit to not using conflict minerals originating from the Democratic Republic of the Congo and its surrounding conflict regions, nor using metal materials produced in the related countries specified under such regulations. Together with supplier partners, the Company seeks and develops greener products with better quality and greater environmental friendliness.

 

Furthermore, Wafer Works contributes to local socio-economic development through procurement practices. To ensure compliance with our requirements, Wafer Works regularly assesses the compliance of suppliers handling critical materials (those directly exposed to the product) and important materials (those posing a risk of appearance difference during manufacturing). This evaluation follows the guidelines of the qualified supplier evaluation and assessment. If any noncompliance issues arise, suppliers are mandated to rectify them promptly.

 

In Response to the Climate Change Response Act, Wafer Works has engaged with suppliers in the field of greenhouse gas verification by reviewing the current status of suppliers' ISO 14064-1:2018 certifications. For those suppliers who have not yet obtained the certification, the Company has initiated guidance and support programs to assist them in compliance.

 

• Upstream and Downstream Relationships

 Supply Chain Organization Structure

The upstream and downstream relationships of Wafer Works in its supply chain are illustrated below. The Company's suppliers mainly consist of raw material suppliers, equipment engineering suppliers, waste disposal firms, on-site contractors (such as security and cleaning personnel), as well as land, sea, and air freight forwarders. These partnerships are predominantly long-term, and we maintain good procurement relationships with our suppliers unless significant changes in demand or supply necessitate seeking new suppliers or adjusting procurement proportions.

  

The Structure and Management Policies of Critical and Important Raw Material Suppliers:

Supplier Management

In terms of risk management measures, the Company has established a comprehensive natural disaster response plan to address potential extreme weather events, earthquakes, and other natural disasters to ensure business continuity. To reduce risks in the supply chain, Wafer Works implements a diversification strategy to minimize reliance on single regions or materials and enhance adaptability. Through material monitoring, the Company sets safety stock levels and follows internal management procedures to coordinate material allocation in case of emergencies.

 

Currently, Wafer Works predominantly sources materials from Taiwan. To facilitate comprehensive business operations, we partner with procurement entities to actively promote ESG and green procurement initiatives, fostering material localization to bolster the growth of local suppliers. This strategy not only cuts down on unnecessary air and sea freight expenses but also diminishes the carbon footprint associated with material transportation.

 

Wafer Works also implements environmental protection mechanisms. In addition to pallets and PP buffer materials being recycled and reused by warehouse personnel, measures such as using recycled materials for packaging corner paper and recycling shipping boxes have been undertaken to reduce costs and minimize resource waste.

 

 

Furthermore, Wafer Works has introduced Hy-Box pallet logistics containers to reduce the use of cardboard boxes and wooden pallets, thereby minimizing resource waste and promoting environmental sustainability. In 2025, this initiative resulted in savings of 5,064 cardboard boxes and 319 pallets. In addition, the Company continued to expand environmental sustainability projects. Wafer Works is continuously adding environmental sustainability projects. Starting in 2024, the company began recycling empty alcohol drums, achieving a 41% recycling rate for empty alcohol drums in 2025. Wafer Works will continue to promote and implement the alcohol drum recycling program. The Company is also actively involved in green environmental policies. In 2024, it participated in the ESG Green Transportation Program for the Semiconductor Industry, promoting green logistics through the use of electric trucks and precision route planning to realize circular logistics integration.

 

Wafer Works views suppliers as important partners in co-creating value. Together with our brand customers, we aim to influence the supply chain to uphold business ethics and social responsibility, thereby reducing environmental resource consumption and impact. This enhances our ability to create value for the overall economy, environment, and society (including people and human rights), fostering industry growth and sustainable development.

Below is the regional distribution of Wafer Works' suppliers to mitigate concentration risk.

 

We employ a multi-region strategy to develop suppliers:

 

2025 Supplier Distribution by Region (%)

 

 

 

Supplier Management

Wafer Works carries out evaluations of new suppliers based on comprehensive supplier selection, assessment, and sample approval processes to ensure that selected suppliers and materials meet requirements. Upstream suppliers must comply with RoHS standards, national regulations regarding occupational safety qualifications, and ISO certifications. They must label shipments containing hazardous materials, properly recycle containers and loading tools, and adhere to fair trade principles. We are committed to ensuring that trading partners fulfil environmental, occupational safety, and human rights requirements. Failure to comply with regulations will result in rejection and inclusion in the vendor evaluation process.

 

Furthermore, in response to the increasing emphasis on international human rights issues in recent years, when purchasing materials, parts, or products containing metal components, suppliers are required to thoroughly investigate compliance with "conflict-free metals" to ensure that purchased raw materials are obtained through legal channels. We ensure that the working environment is safe, employees' rights are protected and respected, pollution prevention is implemented in processes and products, and social responsibilities are fulfilled.

 

To ensure legal waste management practices, annual on-site audits are performed for all waste disposal providers to verify their proper handling of the waste entrusted to them.

Wafer Works is committed to refining and implementing its supply chain management policies. Looking ahead, the Company will continue to collaborate closely with its suppliers to promote sustainable development strategies and further optimize existing supply chain management practices.

Supplier Management Vision

Wafer Works envisions strengthening product quality through collaboration with suppliers, balancing the effectiveness of supplier management and quality costs, and thereby enhancing customer service efficiency and satisfaction. This aims to build a win-win partnership within the supply chain with customers and suppliers.

Supplier management follows a process of retaining high-performing suppliers and phasing out underperformers. After a supplier is approved, a cross-functional team comprising engineering, procurement, and quality assurance departments conducts annual evaluations based on document submissions, material quality, lead time control, and overall performance. According to the internal supplier audit plan, once any instability is detected, the supplier will be urged to initiate continuous improvement.

 

 

Supplier Evaluation and Audit

According to the "Qualified Supplier Evaluation and Assessment Regulations," Wafer Works conducts assessments of suppliers in terms of quality, delivery, pricing, cooperation, and sustainability every six months. Additionally, annual supplier audits are carried out to ensure that supplier performance meets the required standards. In the 2025 annual supplier evaluation, a total of 119 critical and important material suppliers were evaluated.

 

The results showed that 100% of supplier evaluation results were rated Grade B or above, meeting expectations. Suppliers failing to meet the target are required to implement continuous improvement activities, and the effectiveness of such improvements is monitored. These suppliers are also included as targets in the following year's audit plan. The number of suppliers rated below Grade B was zero in 2024, and likewise zero in 2025, continuously achieving the target.

 

2025 Supplier Evaluation Results

 

 

 

 

Green Product

To uphold sustainable development and fulfill social responsibility, Wafer Works has established a green material management mechanism. In accordance with the "Green Product-Related Substance Management Guidelines," relevant regulations such as RoHS , REACH/SVHC, and customer requirements, suppliers are requested each year to provide third-party laboratory test reports, commitments, or warranty letters to confirm that the related materials conform to RoHS and REACH/SVHC. The test results for heavy metals, and other harmful chemicals are all found to be "Not detected," ensuring that the Company's products are safe for both humans and the environment.

 

Wafer Works consistently promotes green procurement, mandating suppliers of raw materials and packaging materials to provide certificates guaranteeing that their products do not contain environmentally harmful substances. Additionally, they are requested to provide test reports to ensure compliance with customer requirements and relevant regulations, as well as to confirm that materials from conflict areas are not used. Suppliers of raw materials and packaging materials are also obligated to provide commitments pledging not to use any materials from conflict areas. Wafer Works has drawn up the "Green Product-Related Substance Management Guidelines," which cover supplier management, raw materials, packaging material inspection, product verification, internal audits, and customer inquiries. Regarding regulations or directives governing harmful substances, such as RoHS and SONY SS-00259, which customers are concerned about, the official instructions are disseminated to company employees through the Knowledge Management System (KMS).

 

Wafer Works undertakes product compliance assessments in accordance with regulations or directives to ensure that all relevant substances are regulated and compliant with RoHS , REACH/SVHC, and customer requirements. This effort aims to meet the standards for green products and minimize the impact of products on the natural environment.

 

Green Product-Related Substance Management Procedure

 

 

Green Procurement

Using products with environmental labels can reduce resource consumption, minimize environmental pollution, and lessen the impact on the planet. As a responsible global citizen, Wafer Works actively advocates for the procurement of green products to fulfill its corporate social responsibility, preserve the Earth's environment, and enforce green product policies. Furthermore, material suppliers are required to submit inspection reports batch by batch or on a periodic basis to prove compliance with diverse international environmental regulations on prohibited and restricted substances and to fulfill customer requirements, thereby endorsing the principles and dedication of green supply chain management.

  

Conflict Minerals

Wafer Works has incorporated the prohibition of "conflict minerals" into its supplier management policy. As a global citizen, we declare and pledge not to accept metals sourced from conflict areas. Furthermore, suppliers are obliged to commit to not using metals from such conflict areas in their products, thus leveraging market mechanisms to eliminate such practices.

  

Human Rights Related Issues

Wafer Works Corporation requires suppliers to sign the Supplier Evaluation Form and the Wafer Works Supplier Code of Conduct. Suppliers must also complete a self-assessment questionnaire as requested by the Company to ensure that they do not employ forced labor (including bonded labor, involuntary prison labor, or slavery), and do not engage in discriminatory practices in recruitment or employment activities (such as promotion and compensation) based on race, color, age, gender, sexual orientation, disability, pregnancy, religion, political affiliation, union membership, or marital status. Additionally, suppliers must not violate child labor laws or corporate social responsibility standards. In the event of any deviations found at a supplier's operational site, the Company will initiate corresponding corrective actions.

 

Supplier Management Procedures