Environment

Recent climate changes have led to severe fluctuations in precipitation with more frequent floods and droughts. External stakeholders are also increasingly concerned about issues related to water resources. To respond to complex water resource issues on a timely basis and effectively integrate prevention, consumption reduction, contingency response, and other management concepts, UMC has successfully completed water risk factor identification and response measures. The UMC Water Resource Management Policy and Commitment was announced in 2015 to serve as our highest guiding principles for water resource management.

Maximize water efficiency, improve the tolerance ability of upstream and downstream value chains to water risks, and promote attention to and conservation of water resources.

1. Introduce water risk management system
2. Develop and utilize diverse water sources
3. Use active management indicators to promote water conservation
4. Cooperate with supply chains to reduce water footprint
5. Provide open and transparent water information
6. Widely promote water education

UMC’s first principle of water consumption is designing a water conserving process, followed by recovering water for reuse and highly efficient water management. To effectively reduce water resource consumption, all three principles must be integrated. In addition to conserving water, the company also actively participates in the Science Park Administration’s water management indicator formulation and annual manufacturer water conservation counseling and technology exchanges. To ensure a secure water supply, the company also participates in the Water Resources Agency’s water shortage contingency measures for water source stabilization and eutrophication. Impacted by global climate change, UMC strives to promote energy conservation and carbon reduction activities, and include them in its management policy. Hence water conservation and improvement activities are ongoing to provide further opportunities for company growth.

1. Develop policy and implement effective water conservation.
2. Recover resource, and curb and reduce resource use.
3. Continue to improve and integrate with environmental protection.
4. Through daily management approaches, achieve management outcome.
5. Divert wastewater, implement multiple re-use and optimize water efficiency.
6. Establish water resources management system, compare with water consumption balance diagram and use water rationally.
7. Integration and sharing of technological resources by the Fab Technical Committee.
8. Directly incorporate water conservation measures into regulations for newly constructed fabs.

With the water-saving, consumption-reduction and recovery measures continuously promoted over the years, UMC's overall water conservation volume in 2022 was 35.13 million tons, which was 1.12 times as much as the storage capacity of the Baoshan II Reservoir in Hsinchu County. In addition, the water recycling rates achieved in UMC fabs' manufacturing processes were all higher than the locally regulated standards, with an overall manufacturing-process water recovery rate reaching 83.1%. Through strategies such as water saving, water recovery and reuse, reduction of ultrapure water consumption in manufacturing processes, UMC Group has successfully reached its interim goal of reducing the water withdrawal of per unit product.

Moreover, in response to climate change and the extreme weather events, UMC has prepared response measures for water-related disasters, such as floods and droughts, to minimize possible impact on the operation.

In addition to internal water resource assessment and management and active promotion of water conservation, UMC also serves as a representative in industrial unions/associations. The company cooperates with the government and industrial peers in water resources communication and exchange counseling through the following mechanisms:

1. Water resources communication meetings convened by the Water Resources Agency and manufacturer's associations.
2. Increased water resources adjustment and coordination by manufacturers and the Water Resources Agency during dry season.
3. In cooperation with the Water Resources Agency's promotion of reclaimed water construction, UMC plans to use reclaimed water.
4. Establish a communication platform meeting with the Water Resources Agency to meet future water supply and demand.

UMC has participated annually in water conservation coaching sessions in the Science Park since 2002. As of 2022, the program has conducted a total of 229 sessions and coached more than 100 companies. Water conservation by companies coached by UMC has reached an accumulated amount of 1.22 million tons over 4 years (2019~2021). Companies counseled by UMC in 2022 are estimated to have potential water conservation of 329,000 tons per year. Tracking the 10 companies which were coached by UMC in 2021, the actual water-saving volume during year 2022 was 324,000 tons of water.

By sharing the Company's valuable experience with peers, it can not only reduce the overall industry's dependence on natural water resources, but also promote regional exchanges and cooperation.

UMC's water pollution prevention includes source reduction, cleaner production and end-of-pipe control technology to reduce wastewater emissions. All fabs have set up wastewater treatment equipment that conforms to emission standards. In order to conduct real-time monitoring, we set up continuous automatic water quality and quantity monitoring systems and enlist a qualified testing company to perform wastewater testing biannually. Test results always meet emission standards.

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