ESG Steering Committee Chairman Message

While the global economy gradually recovered from the pandemic, 2024 presented different challenges, including geopolitical shifts, inflation, inventory adjustments, and industry overcapacity. Despite these headwinds, our management team demonstrated strong leadership, achieving notable progress in technology development, manufacturing diversification, and positioning for future AI-driven growth. We also made important breakthroughs in ESG, driving sustainable growth and positive environmental and social impact while maintaining stable profitability.

In 2024, we advanced towards our environmental, social, and governance goals. The appointment of our first lead independent director has strengthened communication between the board and our management team, and will play a crucial role in safeguarding shareholder interests and advancing corporate sustainability. We remain committed to enhancing benefits for employees, as demonstrated by the early implementation of an employee stock ownership plan in Taiwan. This initiative enables employees to share in the company’s success and fosters a stronger sense of belonging.

Striving towards our net zero greenhouse gas emissions by 2050 and RE100 goals, we have taken decisive climate actions. We introduced internal carbon pricing to incentivize carbon reduction initiatives, and signed an offshore wind purchase agreement for over 30 billion kilowatt-hours (kWh) of power. As of 2024, we have achieved a 31% reduction in Scope 1 and 2 emissions – one-third of the way toward our 2050 net zero target. Group-wide green electricity usage has reached 17%, with subsidiaries HJ and USCXM already fully powered by green energy. Furthermore, we have incorporated reduction targets into the performance indicators for new restricted stock awards, directly linking management compensation to ESG performance.

Our dedication to sustainability has been widely recognized. In 2024, UMC was again selected as a component of the DJSI World Index and received an AA rating in the MSCI ESG assessment. UMC remain the only semiconductor company globally to achieve Double A in CDP disclosures for three consecutive years and are among the few listed companies to maintain a top 5% ranking in the Taiwan Stock Exchange’s Corporate Governance Evaluation for ten consecutive years. Additionally, our digital transformation efforts over the years have yielded outstanding results, with our flagship Fab 12A named to the World Economic Forum’s Global Lighthouse Network—the first semiconductor foundry worldwide to receive this distinction.

Looking ahead, UMC will continue to invest in technological innovation and develop forward-looking solutions to maintain our competitive edge. We will deepen digital transformation and sustainable governance, strengthen value chain collaboration and climate resilience, and work alongside global customers, employees, and partners to harness the pervasive power of technology for a better world.