Sustainable Development

Performances Highlights

High-Performance Semiconductor Technology Leading the Green Transformation Integration of Sustainability Strategies and Technologies

As a world-class semiconductor silicon wafer supplier, Wafer Works Corporation is committed to providing global customers with high-quality products and services. Based on different component applications and end-use classifications, the Company combines the most suitable wafer materials and manufacturing technologies to deliver customized products and services. Leveraging core technologies accumulated over many years, the Company efficiently advances wafer size migration, shortens the technology development process, and rapidly enters target markets to establish a solid customer base.

Amid rapidly changing global trends and growing sustainability awareness, the Company continues to invest in advanced equipment and process optimization, making energy conservation, carbon reduction, and recycling no longer merely supplementary indicators, but rather natural outcomes derived from its core manufacturing capabilities.

Among its key products, heavily doped N-type silicon substrates are one of Wafer Works' principal offerings, and their quality has reached world-class standards, enabling stable supply to major N-type substrate customers worldwide. The continuous development of low-energy-consumption and higher-efficiency N-type substrates has always been one of the Company's ongoing goals. When the resistivity of N-type silicon substrates becomes lower, it indicates better conductivity, which offers significant

advantages for manufacturing certain types of power devices and high-speed electronic components. This not only helps users improve energy efficiency, but also contributes to environmental sustainability.

ESG Performance: Technological Advantages and Quantifiable Contributions

Wafer Works transforms its leading process technologies into measurable ESG impacts, as illustrated below:

Key Breakthrough: Environmental Leadership Through Ultra-High Doping Technology

Wafer Works has successfully advanced N-type semiconductor substrates from the ultra-low resistivity range (0.001–0.01 Ω·cm) into the ultra-high doping range (< 0.001 Ω·cm), enabling each wafer to further reduce carbon emissions by approximately 30 kg of CO₂. This achievement significantly enhances carbon reduction efficiency per unit.

Carbon Reduction Achievements:

Based on an annual production scale of 100,000 ultra-high-doping wafers, the environmental contributions are as follows:

Total annual carbon reduction: an additional reduction of 3,000 metric tons (3,000,000 kg) of CO2 emissions.
Natural offset value:

。 Equivalent to the annual carbon sequestration effect of planting 250,000 mature trees.

。 Equivalent to the total natural carbon absorption capacity of approximately 8 Daan Forest Park (approximately 130 hectares of green space).

Future Outlook: Five Major Advantages of Low-Resistivity N-Type Silicon Substrates

As a world-class semiconductor silicon wafer supplier, Wafer Works continues to develop materials with even lower resistivity to help users improve energy efficiency:

1. Ultimate Energy Conversion Efficiency: Significantly reduces conduction loss and achieves outstanding conversion efficiency.

2. Superior Thermal Management: Reduces device heat generation and lowers the energy demand of cooling systems.

3. Support for High-Frequency Applications: Optimizes carrier concentration to meet the requirements of 5G and high-speed computing.

4. Extended System Lifespan: Reduces thermal stress and enhances the durability and reliability of end products.

5. Empowering Green Supply Chains: Directly supports performance improvements in electric vehicles and green energy equipment.

Sustainable Development Strategy

Vision for Sustainable Development

Sustainable Development Committee Structure

In order to implement sustainability initiatives and promote progress in corporate governance, the economy, the environment, and society, Wafer Works Corporation has established a Sustainability Development Committee in accordance with the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" issued by the Taipei Exchange. This committee serves as the primary responsible unit for promoting sustainability efforts within the Company, aiming to drive sustainable development and practice across governance, economic, environmental, and social dimensions.

The Sustainable Development Committee is chaired by the Chairman of the Board, with the President serving as the Managing Representative. Vice Presidents, Assistant Vice Presidents, and plant managers and above serve as committee members. The Corporate Services Department acts as the Executive Secretary, responsible for coordinating related tasks. The committee convenes regularly, with two meetings held in 2025, to collectively review the core operational capabilities of the Company and establish short, medium, and long-term sustainable development goals.

To actualize corporate governance, foster sustainable environmental development, and uphold social justice, Wafer Works' Sustainable Development Committee engages in discussions concerning corporate governance, the economy, the environment, and society issues relevant to operational activities, internal and external advocacy messages. It sets sustainable development management plan goals in accordance with legal requirements, stakeholder expectations, etc., and initiates responsibility assignment and action plans. Through annual committee meetings, it examines the performance of sustainable development management plan goals in areas such as corporate governance, the environment, and society (including people and human rights). The managing representative regularly reports sustainable development strategies, management plan goals, and executive performance to the Board of Directors and discloses them in the sustainability report.

The Managing Representative of Wafer Works' Sustainable Development Committee is held by the President, responsible for driving sustainable policies and supervising overall sustainable development affairs. Annually, they report sustainable planning and performance to the Board of Directors, regularly reviewing external trends and emerging issues to transparently address efforts in sustainable development, thereby creating greater value for all stakeholders.

Wafer Works has established the "Corporate Governance Best Practice Principles" and the "Procedures for Handling Material Inside Information and Preventing Insider Trading" to fulfill the functions of the corporate governance unit, balance stakeholder interests, and facilitate communication of material information. Departments interact with stakeholders through routine responsibilities. In cases where potential significant negative impacts between stakeholders and the Company arise, relevant departments conduct due diligence investigations. Depending on the specific results and their potential significant harm to the Company's overall operations, these investigations may be reported to the Board of Directors, which then decides on actions to be taken by the responsible departments. If the matter falls within the realm of handling material information, relevant regulations are followed for decision-making and fair disclosure. In 2025, Wafer Works did not encounter any significant negative events with stakeholders, thus no records were reported to the Board of Directors. The 2025 report to the Board of Directors regarding ESG-related information is as follows:

To develop good labor relations and establish a sound and ethical management system, all verified complaints or reports from stakeholders are accepted and investigated. In December 2022, the channels for reporting unethical behavior were consolidated, including email addresses for shareholders, suppliers, customers, and employees (H00, Public, and Public01). These emails are set to be simultaneously forwarded to the independent directors of the Audit Committee and the internal audit supervisor. Physical mailboxes are periodically checked by the HR complaints liaison along with the audit team. If a preliminary investigation substantiates a complaint, a formal investigation is initiated. Progress and results are communicated back to the complainant or whistleblower, and the Audit Committee receives quarterly reports on all accepted cases. Independent directors participate in and oversee the complaints and whistleblowing mechanism to enhance stakeholders' trust in the Company's system and effectively remediate negative impacts of material topics. Furthermore, to protect the rights of complainants and internal or external whistleblowers, a complaint mechanism and an anti-retaliation policy has been established and published in the internal ISO document management system. Annual training sessions on unlawful activities are conducted to promote strict confidentiality and anti-retaliation when handling complaints. The newly established complaint and whistleblowing mechanism is posted on the Company's website, demonstrating a commitment to ethical operations and collaborative mitigation of negative impacts with stakeholders.

Sustainability Policy

Sustainability Education and Training

Wafer Works places a premium on promoting sustainable development and enhancing collective knowledge in this area. Board members attend annual courses on relevant topics such as sustainable governance, climate change, and net-zero carbon emissions. For details on board continuing education in 2025, please refer to the Wafer Works Annual Reports. The Company conducts regular education and training sessions to ensure employees fully understand Wafer Works' sustainability policy, the structure of the Sustainable Development Committee, and various charity activities. There is also a dedicated ESG section on the website, which includes a section for stakeholders, to disclose the implementation of Wafer Works' sustainable development. In 2025, a total of 786 participants attended education and training courses related to sustainable development.

Stakeholders

Stakeholder Identification

The identification of and communication with stakeholders constitute the core foundation of Wafer Works's sustainable development efforts. The Sustainable Development Committee oversees the related management activities and regularly evaluates global sustainability trends, customer requirements, and the Company's medium- and long-term operational objectives. From the perspectives of corporate governance, economic performance, environmental protection, and social responsibility (including human rights), the Company analyzes issues closely related to its operational activities and conducts stakeholder identification through a cross departmental collaboration mechanism.

In the stakeholder identification process, Wafer Works follows the five principles proposed by AA1000 SES (AA1000 Stakeholder Engagement Standards), namely Dependency, Responsibility, Tension, Influence, and Diverse Perspectives, as the basis for systematic screening and evaluation. Through these principles, the Company analyzes the relationship attributes and degree of influence between various stakeholders and Wafer Works, and conducts corresponding assessments and prioritization.

According to the analysis of these principles, the main stakeholders identified in 2025 fell into six categories: customers, employees, shareholders/investors, suppliers/contractors, government authorities, and financial institutions.

Stakeholder Communication

Wafer Works values the rights and opinions of its stakeholders and fully recognizes that all categories of stakeholders play key roles in the Company's sustainable development and may directly or indirectly affect the achievement of organizational objectives. Therefore, the Company adheres to the principles of integrity, transparency, and two-way communication, proactively establishing open and diversified communication mechanisms to ensure that stakeholders may express their expectations and opinions through appropriate channels.

The communication channels and frequencies for each stakeholder group are as follows:

Identification of Material Topics

Process for Identifying Material Topics

Wafer Works adheres to the principle of transparent communication and engages deeply with stakeholders through diverse daily communication channels to understand their key concerns. In addition, the Company regularly conducts materiality analysis questionnaire surveys on issues related to corporate governance, economic performance, environmental protection, and social responsibility (including human rights) in accordance with the GRI Sustainability Reporting Standards and SASB industry sustainability indicators, thereby ensuring that sustainability information disclosure is properly implemented and responsive to stakeholder expectations.

Material Topic Identification

Wafer Works identifies its material topics through communication and engagement with stakeholders via diverse daily channels, assessing stakeholder impacts and sustainability topics significantly related to the Company's sustainable operations in the areas of corporate governance, economic performance, environmental protection, and social responsibility (including human rights). These results serve as the basis for information disclosure in the sustainability report.

Wafer Works conducts materiality analysis once every two years. Among the 16 sustainability topics evaluated, the top 7 topics based on product ranking results, together with issues consolidated from daily stakeholder communication and engagement, were reviewed and resolved by the Sustainable Development Committee.

"Pollution Prevention and Management" was classified as a non-material topic, while "Climate Change and Carbon Emissions" was classified as a material topic. The Company further assessed the degree of impact (both positive and negative) and likelihood of occurrence for these seven material topics, and the final material topic ranking results were used as the basis for disclosures in the 2025 Sustainability Report.

Material Topic Matrix

Analysis Results of Material Topic Impact Ranking

Changes in Material Topics

Compared with the material topics identified in 2024, the 2025 material topics newly added "Sustainable Supply Chain Management," while the newly added non-material topic was "Circular Economy and Waste Management."

Value Chain Boundaries of Material Topics

This report categorizes the identified material topics into four dimensions: "Corporate Sustainability," "Partner Sustainability," "Environmental Sustainability," and "Social Sustainability." Using the value chain as a boundary analysis element, we regularly discuss material topics in each dimension, review the implementation of management plan targets, and outline future sustainability directions. We also compile related performance data, stakeholder engagement results, and recommendations from sustainability discussions. The Sustainable Development Committee manages these aspects continuously and discloses relevant information in the Wafer Works Sustainability Report.