Enterprise Risk Management

UMC recognizes the issue of business continuity, which means the importance of providing continuous services to strategic customers and stakeholders. UMC each fab has developed its BCP workbook (Business Continuity Plan workbook) since 1999. Hsinchu headquarter, Fab12A, and Fab12i passed ISO 22301:2012 verification sequentially since 2013 and became a leader in the semiconductor industry to receive ISO 22301 Business Continuity Management system verification. Afterward, verification is conducted annually to maintain the certificate effectiveness. Meanwhile, the BCM verification scope is continuous expanded to other UMC FABs to meet stakeholders’ expectation. The target is set by 2024, all fabs of UMC, including its subsidiaries, will be included in the scope of verification.

Policy

• UMC aims to provide customers with excellent and uninterrupted service.
• UMC ensures the effective of its business continuity system by implement system and integrate resources.
• UMC reviews and improves continuously to enhance the resilience of responding to various disasters before/ during/ after the disruption from business impact to ensure the utmost rights and interests of customers and stakeholders.

Objectives

• Personnel safety is the top business continuity objective.
• Base on risk assessment results, the company aims to develop various disaster prevention measures and responses to reduce operational impact and shorten recovery time.
• UMC follows ISO 22301 management system standard and executes BCP drill on a regular basis to review the effectiveness of business continuity plan and make continuous improvements.

UMC follows the ISO22301 standard to establish, implement, monitor and maintain its business continuity management system(BCMs). UMC headquarter in Taiwan  established “Business Continuity Management Committee” which is composed of existing management teams, to integrate company resources and continuously review improvement plans, furthermore, when a disaster happened , ensure rapid restoration of operational goals to protect the best interests of customers and stakeholders.

All fabs and functional departments have deployed emergency response and recovery plans for specific events such as earthquake, fire, chemical spill, power disruption, water shortage and material shortage. BCP Exercise are conducted every year in order to continually improve emergency response and recovery procedures.

In addition, a drill for senior executives is held every 3 years. The drill is convened by President Chien and related executive members including CFO, CHO, manufacturing vice president, manufacturing resource integration vice president, etc. We practice stakeholder’s communication tactics in various aspects, including employees, suppliers, customers and social media, and the production allocation plans between different fabs are fully discussed to demonstrate UMC’s resilience in business continuity.

Control and rescue (hours-days)

Limit the effect of incidents or disasters as per the emergency response plan.

Stabilization & mitigation (days-months)

Communicate with stakeholders and response his/her demands and achieve minimum operational level within the recovery time objective, RTO, as per the business continuity plan.

Back to normal (months-year)

Recovery at the affected fab to restore its production capability back to normal within maximum acceptable downtime as per business recovery plan.

The BCM management review meeting is held annually to review both risks from internal and external and how precisely and effectively BCM system is operated. For possible risks such as earthquake, fire, chemical leakage, utility outage, drought and raw material shortage…etc., UMC conducts risk assessment and improvements in advance. Furthermore, exercises on procedure are held periodically to sharpen response and recovery after incidents.

Remark: Fab12A in Tainan and lithography and furnace areas in 8"Fabs in Hsinchu have completed anti-seismic improvements in succession according to structural technician's advice after Meinong earthquake, 2016.