Master of Industrial Management from Chung Hua University

Director of Moores Rowland CPAs

Associate Vice President for Academic Affairs

Director, Center for Teaching and Learning Development

Director, Center for Continuing Education and Training

Associate Professor, Department of Electrical and Computer Engineering

Master of Risk Management, National Chengchi University

Legal supervisor, United Epitaxy Company

Legal manager, Phison Electronics Corp.

Spokesman, Phison Electronics Corp.

Senior special assistant, Phison Electronics Corp.

Dimension

Material topic

Risk management policy/Mitigation measures

Corporate Governance

Economic Performance

1. Continue to invest R&D resources to strengthen competitiveness.
2. Provide high-quality products and services to deepen customer relationships.

Ethical Corporate Management

1. Disseminate information on "Insider Trading Prevention" and related laws and regulations to incumbent directors, managers, and employees at least annually; dissemination of such information to new employees will be made by the Human Resource Department at the orientation training.
2. The Corporate Sustainable Development Committee summarizes the implementation status of ethical corporate management within the Company and regularly (at least annually) reports to the Board of Directors.

Risk Management

1. The Risk Management Committee will be responsible for identifying and managing emerging risks every year according to risk identification procedures and is obliged to periodically report its operation status to the Board of Directors.
2. To conduct inventory of raw material sources for materials used in key products and find substitute materials.
3. To analyze the impact of a water shortage on operations, establish a water level forecast system, and install an additional backup pipeline.
4. To analyze the impact of electricity shortage on operations. Aside from testing the stationary diesel generator and UPS, we purchase empty diesel barrels and oil dispensing pumps, which can be replenished with self-purchased diesel in case of emergency in order to keep the generators operating.
5. To continue to implement the social engineering project and penetration test project, and conduct education and training to cultivate the habit of employees using emails carefully; to use Panorays - a third-party security risk analysis platform and web vulnerability scanning to strengthen external vulnerabilities.
6. To demand that employees complete the business continuity management courses.

Innovation Management

1. Continue inputting R&D resources. The annual R&D expenses topped NTD10.3 billion, accounting for 83% of total operating expenditure.

Supply Chain Management

1. Based on procurement value, we divided our suppliers into critical suppliers  and general suppliers for differentiated management, thereby ensuring the efficiency of our invested management resources.
2. Utilize SAMP Online, the supply chain management platform, to convey the Company's important policy to suppliers along the supply chain.
3. Add the aspect of sustainability risk to the supplier assessment aspects. A supplier is graded based on the Sustainable Risk Assessment Questionnaire filled out each year, and accounts for 5% of total assessment scores, which is expected to be adjusted to 10% in 2024.
4. Establish the "RBA Vendor Management Policy", demanding that suppliers fill out and send back the RBA Self-assessment Questionnaire, and that suppliers found of any deficiency submit an improvement plan containing corrective measures within a week.
5. Held the first session of supplier meeting and provided RBA and ESG trainings in 2023. Training courses will be held every year in the future to enhance suppliers' understanding of the RBA Responsible Business Alliance Code of Conduct and Phison Supplier Code of Conduct, and to assist suppliers in reviewing their own compliance.

Environment Protection

Green Product

1. Develop more energy-saving and more compact products, thereby helping end users reduce their greenhouse gas emissions.
2. Adopt a simplified packaging strategy when designing product packaging for customers, so as to reduce the amount of waste generation at the back end.

Social Participation

Talent Attraction and Retention

1. Refer to industry salary survey information and evaluate salary increases every year based on operating conditions to constantly improve the attractiveness of employee welfare and salary.
2. Launch improvement projects based on the results of the employee opinion survey; maintain clear and effective labor-management communication channels; create an inclusive, friendly, and healthy workplace, so as to enhance employees' recognition for the Company.
3. Join the “TALENT, in Taiwan”, a Taiwanese talent sustainability action alliance, and jointly proposed the initiative that “enterprises take hold of talents and export future skills to universities.”

Talent Development and Training

1. We understand the gap between expected goals and actual performance through gap analysis, and plan the annual training program and the department-specific training program (including new employee training) according to the specialized requirements of the organization and individual departments. Through continuous training in employees' professional competencies, we create employees' value in the workplace and raise their individual competitiveness.
2. Enrich online courses to improve employees motivation to take the continuing education.

Education institution

Course name

Training hour

Taiwan Academy of Banking and Finance (TABF)

Corporate Governance and Sustainability Development Workshop

3

Taiwan Corporate Governance Association

Succession plan launched-employee reward plan and equity inheritance

3

Taiwan Corporate Governance Association

Insider Trading Prevention: Latest Compliance and Enforcement News

3

Taiwan Corporate Governance Association

Merger reporting under the Fair Trading Act-News on recent cases

3

Total

12