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 2018 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, constructing natural hazard early warning systems, etc., and develop business continuity plan strategy and crisis response exercise to achieve continuous operation promise. The achievements of disaster risk control in 2019 are as the following:
2019 achievements:
• Improve the ability of water damage protection in clean room: combine with emergency response drill to revisit and upgrade all the water stop, expansion join and liquid piping take off points.
• Upgrade the reliability of power supply system: employ a third party expert to find out opportunities of improvement and fan out to increase the resilience of electricity system supplement. For example, we can discover the abnormal and solve the problem in early stage by on-line partial discharge.
• Update the loss control guideline in line with international standards: Consider other industry’s loss experience, we upgrade the guideline to add environmental sprinklers for new central scrubber.
• Develop climate change assessment tool: We develop the risk assessment tool suitable for semiconductor industry in response to climate change risk. We assess the risk of extreme climate(warming, torrential rain, drought...etc.), and plan the adjustment and response in mid/long term.

Work highlight:UMC climate change risk assessment tool

UMC takes an active part in response and adapt to climate change threat. UMC has constructed the UMC Climate Change Risk Assessment based on multiple data points: the Fifth Assessment Report (AR5) published by the Intergovernmental Panel on Climate Change (IPCC), the government's downscaling scenario projection for identifying potential physical hazards caused by climate change, the ISO 14090 Adaptation to Climate Change and the assessment procedure in the UK Climate Impact Programme (UKCIP). We identify the risks and opportunities of UMC under climate change impacts, and develop the adjustment and migrate strategy in mid/long term. MT level will adjust the business direction and strategy regularly to strengthen our climate resilience and achieve the target of business continuity.

Back to Top
A+ A-
About UMC
Corporate Responsibility
Press Center
Popular Links