Green Design

To respond to the sustainability trend and actively guide our internal sustainability programs, the Company announced the new version of "Phison Environmental Protection Policy", which involves our commitments to protect the natural environment in an appropriate way according to environmental legislations and international standards, and to endeavor to achieve the goal of environmental sustainability in the course of our business activities and internal control by devoting to energy conservation and autonomous carbon reduction. The Company continued to obtain ISO 14001 Environmental management systems for the design and assembly processes of our flash memory storage devices and flash memory controller chips. We also focus on recycling and energy conservation policies to reduce the impact of our business activities on the environment.

Green Management Process

The Company is committed to environmental protection. By examining the life cycle of our products, we have been able to understand the actual and potential impacts of our products on the environment at each product stage, and strategies and objectives were planned ahead to reduce the environmental impacts. As a NAND flash total solution provider, according to the model from cradle to gate, the action plans for each product stage are as follows:

In addition, through constantly developing and improving product performance, our R&D team helped reduce the GHG emissions generated by end users, and in doing so contributed our humble effort to alleviate global warming. Taking the critical product lines under R&D as an example, the power performance ratio of the PS5021 chip, the best performing product in 2022, reduced by 37% compared with its baseline product. Since daily users vary in terms of work scenario and transmission volume, we will compare the scenario of daily use of 1GB with the scenario of daily use of 10GB. In the work scenario where a daily user transmits 1GB of data per day, PS5021T is able to reduce electricity consumption by 349 kWh per year (equivalent to 178 kilograms of carbon emissions) compared with PS5013T. In the work scenario where a daily user transmits 10GB of data per day, PS5021T is able to reduce electricity consumption by 3,492 kWh per year (equivalent to 1,777 kilograms of carbon emissions) compared with PS5013T. That is to say, considering the work environment of daily consumers and the Company’s annual shipments, the Company’s PS5021T will help end users save 349kWh to 3,492kWh of electricity per year (equal to 1.26-12.57 gigajoules) compared with PS5013T.

Another pair of products for comparison is presented in the following figure, which indicates that PS5026 at the capacity point of 1TB is roughly the same as PS5018 in terms of power performance ratio. In fact, rules of physics suggest that when capacity increases, power consumption will also increase proportionally due to the increase in flash memory cells. By leveraging its R&D knowledge of and strength in PCIe Gen5 interfaces, the Company was the first in the industry to create the PS5026 chip that possessed roughly 5GB/s of peak performance more than the previous generation. In this way, the Company provides more efficient products while maintaining their power performance ratio, capable of substantively reduce carbon emissions.

Chip Power Performance Ratio