The Group generates hazardous industrial waste primarily from product testing activities, mainly classified as E0217 (waste electronic components, scraps, and defective products). All hazardous industrial waste is entrusted to qualified licensed waste removal and treatment contractors for disposal. The waste is subsequently processed by professional electronic waste recycling facilities through physicochemical treatment. After shredding, part of the waste is subjected to metal recovery through refining processes, while non-recyclable portions are treated via incineration. To ensure proper handling of hazardous industrial waste by outsourced contractors, the ESH Department conducts regular inspections of their operations, including on-site audits or accompanying waste transportation processes. This ensures compliance with proper treatment procedures and minimizes environmental risks and impacts associated with hazardous industrial waste. In 2025, a total of 4 waste transportation tracking operations and 2 on-site audits were conducted, with a 100% compliance rate of contractor operations.

In 2025, the Group’s total waste generation was 441.342 metric tons, of which hazardous industrial waste accounted for 33.483 metric tons (7.6%), and non-hazardous industrial waste accounted for 407.859 metric tons (92.4%). The decrease in hazardous industrial waste in the current year despite an increase in revenue is mainly due to the fact that in 2024, a larger amount of inventory was scrapped following management approval. In the current year, the inclusion of SStek resulted in total waste generation remaining roughly comparable to the previous year. Excluding SStek, Phison Electronics alone reduced waste generation by 8.37% compared to 2024, indicating initial effectiveness of internal waste reduction initiatives.