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.