CORPORATE SUSTAINABILITY

Risk Management

UMC has established a comprehensive set of response procedures aimed at addressing the needs of a diverse range of emergency conditions, thus reducing management uncertainty to the lowest achievable level.

Based on the evaluation of the company's operations, UMC classifies risks into:

Operations Risks and Financial Risks Management

UMC holds shareholder meetings and investor conferences regularly to maintain a high-level of financial transparency. The company consistently meets its obligation as corporate citizen by participating in public and social activities

UMC closely monitors the changes of policies and makes proper adjustments in internal systems and business activities accordingly to ensure the smooth operation of the company.

In case of a material shortage due to centralized purchase, low vendor capacity, accidents or natural disasters, UMC has its suppliers store and manage materials in the UMC warehouse to lower the risks of material shortage. Relevant operation guidelines are formulated based on four aspects of "Risk Assessment", "Business Impact Analysis", "Incident Management and Operations Plan" and "Materials Emergency Purchasing".

For further information please click the links below 2017 Annual Report.

Business Continuity Management

UMC recognizes that sustainable business operations have to provide its valued customers and important stakeholders with uninterrupted services. To maintain customer satisfaction in terms of variety, quality and continuity is the biggest objective of the company’s business continuity management. In addition to developing site level-business continuity plan, UMC implements the business continuity management system following ISO 22301 to ensure the highest possible operating level and further protect the interests of customers and stakeholders during a disaster.

In 2013, UMC, a leading global semiconductor foundry, received ISO 22301 certification for the business continuity management system and became the first foundry worldwide to achieve ISO 22301 certification. In 2016, certification was extended to UMC’s Fab 12i in Singapore, achieved the company goal for all of its 12-inch fabs to earn certification, reaffirming to customers UMC’s commitment to providing uninterrupted foundry services.

Business Continuity Policy
  • UMC strives to provide the most competitive wafer foundry services while constantly pursuing co-development partnerships with customers. To provide customers with diversified, quality and uninterrupted foundry manufacturing service is the highest principle of the Company’s business continuity management.
  • UMC will carry out BCM organizational operations, conduct operational impact analysis and risk assessment, and initiate its BC strategy and objective accordingly as the operating environment changes. Necessary resources are then invested for implementation, review and constant improvement.
  • When disasters or events impacting operations occur, UMC will follow its BC strategy and invest in resources to maintain and restore operations to the highest possible level. During incidents, the Company will also maintain open communication with customers and stakeholders and strive for their best interests.
Business Continuity Management Organization

BCM framework
  • UMC follows the ISO22301 standard to establish, implement, monitor and maintain BCMs ,with continual improvement of the system, to ensure that business operations continue during incidents or disasters, and to realize the goal of non-interrupted operation.
  • All UMC fabs and functional departments deployed emergency response and recovery plans for specific events such as earthquake, fire, chemical spill, power disruption, water shortage and material shortage. Table-top drills are conducted every year in order to continually improve emergency response and recovery procedures.

Stage.1 Incident management
Stabilize the effect of incidents or disasters as per the emergency response plan

Stage.2 Business continuity
Achieve minimum operational goals under recover time objective, RTO ,as per the business continuity plan.

Stage.3 Business recovery
Recovery at damaged fab to restore its production capability back to normal within maximum acceptable downtime as per business recovery plan.

Objective of Hazard Risk Management

As a global manufacturing leader, UMC is well aware of the numerous natural and man-made disasters that may affect or impact its operations and employees. UMC‘s approach to hazard risk management is based on precautionary measures. To reach Highly Protected Risk(HPR)UMC follows strict engineering safety procedures, enforces safety codes and standards, and detailed industry safety guidelines.

Hazard Risk Control

UMC's risk control strategy has been implemented in many ways, such as strengthening physical protection standards, enhancing emergency response abilities, and constructing natural hazard early warning systems, etc., to achieve continuous operation promise. The achievements from 2016 to 2018 are as the following:

2018
  • Deploy Earthquake Early Warning System at Fab 12A ,thereby establishing an earthquake safety protection network to improve personnel safety and reduce the risk of earthquake damage to production tools and facilities.
  • Enhance high asset production tools risk protection : conduct risk inspection from three main aspects, including fire , earthquake and leakage.
  • Implement bulk gas dispensing system diagnosis to ensure the reliability and stability of systems.
  • The collaborative robot was tested under magnitude 7 (400 peak ground acceleration) on the shaking platform in the National Center for Research on Earthquake Engineering ; it must not tip over in order to protect operator from the harm of robot.
  • Installing floodgates in specific entrances at FAB12AP5 to upgrade the protection level to a 500-year return period rainfall and Zengwun River dike crashed.
2017
  • Implemented Cyber Risk assessment and developed response and recovery plans for the top 3 Cyber risks to reinforce its cyber-attack response ability and resilience.
  • Launch open house for reinsures to show the effort on risk management.
2016
  • Invite S&A earthquake prevention experts to conduct anti-seismic inspection. Fifteen dimensions of earthquake impact prevention were reinforced.
  • Import seismic isolation platform onto furnace tool.
  • Develop new fire fighting equipment for high technology fab to upgrade the firefighting efficacy for overhead hoist transport& stocker.
  • Collaborate with disaster recovery experts, Belfor, to enhance capabilities in responding to tool decontamination.


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