Phison 's main business is IC design. Our operational sites in Taiwan include the headquarters in Miaoli, and offices in Hsinchu, Taipei, and Tainan. Only the headquarters in Miaoli is our own factory, which can fully support the implementation of the water resource management plan. Therefore, there is only 1 operational site with a water resource management plan, which accounts for 25% of all sites.

Most of the space in the Miaoli headquarters factory is used for R&D offices and warehouses, with only simple packaging and repair testing processes. There is no process water usage, only domestic water usage, with air conditioning water being the largest component. The offices in Taipei, Hsinchu, and Tainan are all R&D offices, so they only use tap water for general domestic purposes.

According to the World Resources Institute (WRI) Water Risk Tool (Aqueduct Tool), all of our operational sites in Taiwan are located in areas with medium to low water stress (10-20%). Therefore, the proportion of facilities located in water-scarce areas is 0%. Additionally, the company strictly adheres to environmental laws, and there have been no violations of water quality, water withdrawal, or wastewater discharge standards and regulations in the past three years.

Note 1. Water pressure index reference World Resources Institute's Aqueduct Tool.
Note 2. Miaoli headquarters has two sources of tap water, one supplied by the Taiwan Water Corporation and the other supplied by the Kuan-Yuan Science and Technology Park.
Note 3: The calculation methods for water usage and water consumption in the leased office are based on the water bill from the water company or the water bill for the leased office.

Water Resource Risk

Although the WRI Water Risk Tool assesses that the water stress at our operational sites in Taiwan is medium to low (10-20%), the company continues to implement the following measures to reduce the operational risks associated with water resource shortages. These measures are primarily adjustments to internal operational management processes and securing greater contract flexibility with water trucking companies. Currently, the company's costs related to water resource management are 0.

1. Since our Miaoli headquarters is located in the Kuan-Yuan Science and Technology Park, Phison has two water sources, Taiwan Water Corporation's tap water and Kuan-Yuan water, which serve as mutual backups to reduce the impact of water shortages.

2. An internal water situation analysis and water shortage warning system has been established to continuously monitor the water resource status.

3. In 2024, contracts were signed with two water truck companies to provide water sources in case of water shortages.