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UMC Strategy and Goals for Sustainable Development
Economics
Environmental
Society

Focus

Employee Professional Ethics

Strategies

Through regular education and training, continue to strengthen supervisors’ and employees’ understanding and knowledge of professional ethics.

Goals for 2020

100% completion rate for annual education and training in professional ethics.

Goals for 2025

100% completion rate for annual education and training in professional ethics.

Risk Management

Strategies

Introduce Business Risk Management Committee and operations throughout the Company to strengthen risk management capabilities.

Introduce the ISO22301 business continuity management system to enhance the Company's Hazard resilience.

Goals for 2020

Major risk vulnerabilities have been identified and countermeasures in place.

Identify crisis events that will have a major impact through the business continuity management system (ISO22301).

All countermeasures are in place and drills conducted as planned.

Goals for 2025

Major risk vulnerabilities have been identified and countermeasures in place.

Identify crisis events that will have a major impact through the business continuity management system (ISO22301).

All countermeasures are in place and drills conducted as planned.

Sustainable Technology

Strategies

Continue to invest in semiconductor process development to maintain leading position in semiconductor process technology.

Continue patent deployment to ensure that the Company's R&D results and intellectual properties are fully protected.

Goals for 2020

Complete 4 green technology platform development.

Complete 3 green chemical development.

Filing more than 200 patent applications worldwide each year.

Goals for 2025

Accumulate more than 20,000 patent applications filed worldwide.

Accumulate more than 14,000 patents granted worldwide.

Sustainable Products

Strategies

Gradually increase proportion of sustainable products.

Goals for 2020

Achieve 56% in product benefits.

Goals for 2025

Achieve 60% in product benefits.

Product Quality

Strategies

Provide customers with good quality, reasonably priced, sound and timely service to enhance their competitiveness.

Uphold principle of continuous improvement, participate in education and training, and strengthen quality awareness. In product manufacture, ensure thorough compliance with quality assurance. In R&D, strive for excellence and enhance technical capabilities. In business promotion, be market-oriented and meet customer needs.

UMC upholds the principle of continuous improvement. Satisfy customer demand for product and service quality through company-wide employee awareness and control and technology improvements in design and production.

Goals for 2020

Zero product recall.

Fabs to achieve 100% certification in the latest version of QC 080000.

Complete mass production of special RFSOI 90nm and 55nm processes, and mass production of standard 22nm advanced process.

Create and improve action efficiency to NT$3 billion per year.

Goals for 2025

Zero product recall.

Fabs to achieve 100% certification in the latest version of QC 080000.

Complete mass production of special RFSOI 90nm and 55nm processes, and mass production of standard 22nm advanced process.

Create and improve action efficiency to NT$3 billion per year.

Customer Relationship Management

Strategies

Provide customers with competitive and superior foundry solutions to enhance Company competitiveness, customer competitiveness and customer satisfaction.

Protect security of customer product information and intellectual property rights by increasing employee awareness of customer intellectual property rights, institutional soundness and systems soundness.

Goals for 2020

Maintain customer satisfaction at 85 points or more.

100% completion rate in employee education and training on customer intellectual property protection.

Maintain zero customer product information security impact in network and information security incidents.

Goals for 2025

Remain within top 3 in customer ranking.

Internal and external audits to find no failing in customer product information protection.

Sustainable Supply Chain Management

Strategies

Establish a supply chain that protects the environment and values social responsibility, labor and human rights, safety, health and sustainable development.

Manage supplier capabilities in product quality, cost leadership, supply delivery, service team and sustainability to ensure consistency with UMC requirements and enhance competitiveness.

Regard suppliers as partners and develop long-term cooperation to jointly establish a stable and sustainable semiconductor supply chain.

Ensure that products and supply chains do not contain conflict minerals.

Assist upstream and downstream vendors in increasing green competitiveness and jointly create sustainable business opportunities.

Goals for 2020

Supplier Sustainability management

- Committed to 100% compliance of RBA requirements with regard to all suppliers in supply chain assessment/ audit / and management.

- Committed to 100% compliance of new suppliers to sign the UMC code of ethics and supplier code of conduct.

- Sustain 100% sourcing of conflict free minerals.

-World sustainability illustration meeting tour covering TW, SG & China (TTL greater than 3 meetings)

Business Continuity management
To reduce natural disaster risk from critical suppliers by establishing a supplier chain risk map and real-time reporting system, which will improve the response time by an estimated 75% to initiate emergency material preparation measures.

Circular economy
Deep-root the Triple - R (reduce, reuse & recycle) DNA into local suppliers, with a target to drive suppliers to achieve a 390,000 ton reduction in carbon emission.

Goals for 2025

Supplier Sustainability management
- 80% of Tier 2 suppliers are to sign the supplier code of conduct.
- 30% of Tier 2 suppliers will be managed by supply chain assessment/audit/management.

Circular economy
Reach an accumulated NT 664M from the recycling of precious material waste (avg. was NT 100M/year).

Focus

Employee Professional Ethics

Strategies

Through regular education and training, continue to strengthen supervisors’ and employees’ understanding and knowledge of professional ethics.

Goals for 2020

100% completion rate for annual education and training in professional ethics.

Goals for 2025

100% completion rate for annual education and training in professional ethics.

Risk Management

Strategies

Introduce Business Risk Management Committee and operations throughout the Company to strengthen risk management capabilities.

Introduce the ISO22301 business continuity management system to enhance the Company's Hazard resilience.

Goals for 2020

Major risk vulnerabilities have been identified and countermeasures in place.

Identify crisis events that will have a major impact through the business continuity management system (ISO22301).

All countermeasures are in place and drills conducted as planned.

Goals for 2025

Major risk vulnerabilities have been identified and countermeasures in place.

Identify crisis events that will have a major impact through the business continuity management system (ISO22301).

All countermeasures are in place and drills conducted as planned.

Sustainable Technology

Strategies

Continue to invest in semiconductor process development to maintain leading position in semiconductor process technology.

Continue patent deployment to ensure that the Company's R&D results and intellectual properties are fully protected.

Goals for 2020

Complete 4 green technology platform development.

Complete 3 green chemical development.

Filing more than 200 patent applications worldwide each year.

Goals for 2025

Accumulate more than 20,000 patent applications filed worldwide.

Accumulate more than 14,000 patents granted worldwide.

Sustainable Products

Strategies

Gradually increase proportion of sustainable products.

Goals for 2020

Achieve 56% in product benefits.

Goals for 2025

Achieve 60% in product benefits.

Product Quality

Strategies

Provide customers with good quality, reasonably priced, sound and timely service to enhance their competitiveness.

Uphold principle of continuous improvement, participate in education and training, and strengthen quality awareness. In product manufacture, ensure thorough compliance with quality assurance. In R&D, strive for excellence and enhance technical capabilities. In business promotion, be market-oriented and meet customer needs.

UMC upholds the principle of continuous improvement. Satisfy customer demand for product and service quality through company-wide employee awareness and control and technology improvements in design and production.

Goals for 2020

Zero product recall.

Fabs to achieve 100% certification in the latest version of QC 080000.

Complete mass production of special RFSOI 90nm and 55nm processes, and mass production of standard 22nm advanced process.

Create and improve action efficiency to NT$3 billion per year.

Goals for 2025

Zero product recall.

Fabs to achieve 100% certification in the latest version of QC 080000.

Complete mass production of special RFSOI 90nm and 55nm processes, and mass production of standard 22nm advanced process.

Create and improve action efficiency to NT$3 billion per year.

Customer Relationship Management

Strategies

Provide customers with competitive and superior foundry solutions to enhance Company competitiveness, customer competitiveness and customer satisfaction.

Protect security of customer product information and intellectual property rights by increasing employee awareness of customer intellectual property rights, institutional soundness and systems soundness.

Goals for 2020

Maintain customer satisfaction at 85 points or more.

100% completion rate in employee education and training on customer intellectual property protection.

Maintain zero customer product information security impact in network and information security incidents.

Goals for 2025

Remain within top 3 in customer ranking.

Internal and external audits to find no failing in customer product information protection.

Sustainable Supply Chain Management

Strategies

Establish a supply chain that protects the environment and values social responsibility, labor and human rights, safety, health and sustainable development.

Manage supplier capabilities in product quality, cost leadership, supply delivery, service team and sustainability to ensure consistency with UMC requirements and enhance competitiveness.

Regard suppliers as partners and develop long-term cooperation to jointly establish a stable and sustainable semiconductor supply chain.

Ensure that products and supply chains do not contain conflict minerals.

Assist upstream and downstream vendors in increasing green competitiveness and jointly create sustainable business opportunities.

Goals for 2020

Supplier Sustainability management

- Committed to 100% compliance of RBA requirements with regard to all suppliers in supply chain assessment/ audit / and management.

- Committed to 100% compliance of new suppliers to sign the UMC code of ethics and supplier code of conduct.

- Sustain 100% sourcing of conflict free minerals.

-World sustainability illustration meeting tour covering TW, SG & China (TTL greater than 3 meetings)

Business Continuity management
To reduce natural disaster risk from critical suppliers by establishing a supplier chain risk map and real-time reporting system, which will improve the response time by an estimated 75% to initiate emergency material preparation measures.

Circular economy
Deep-root the Triple - R (reduce, reuse & recycle) DNA into local suppliers, with a target to drive suppliers to achieve a 390,000 ton reduction in carbon emission.

Goals for 2025

Supplier Sustainability management
- 80% of Tier 2 suppliers are to sign the supplier code of conduct.
- 30% of Tier 2 suppliers will be managed by supply chain assessment/audit/management.

Circular economy
Reach an accumulated NT 664M from the recycling of precious material waste (avg. was NT 100M/year).

Focus

Climate Change

Strategies

Introduce low-carbon design into production processes for source replacement and reduction of process greenhouse gas. Use the best available technologies to reduce greenhouse gas emissions.

Goals for 2020

Reduce fluorinated greenhouse gas (F-GHG) emissions per unit of product by 36% compared to 2010.

Goals for 2025

30% absolute reduction of fluorinated greenhouse gas (F-GHG) emissions compared to 2010.

Reduce total greenhouse gas emissions per unit of product by 5% compared to 2010.
- Reduce Scope 1 greenhouse gas (Scope-1 GHG) emission per unit of product by 40%.
- Reduce fluorinated greenhouse gas (F-GHG) emissions per unit of product by 55%.

Energy Management

Strategies

Promote various types of reduction measures to optimize energy efficiency. Construct green buildings and increase use of renewable energy.

Goals for 2020

Reduce electricity consumption per unit of product by 10% compared to 2015.

Goals for 2025

Reduce electricity consumption per unit of product by 15% compared to 2015.

Air Pollution Control

Strategies

Introduce and develop eco-friendly technologies to strengthen source reduction and prevent pollution.

Goals for 2020

Volatile organic gas reduction rate >92%.

Goals for 2025

Volatile organic gas reduction rate >92%.

Water Source Management

Strategies

Introduce water risk management system, develop and adopt diversified water sources. Promote water conservation and maximize water efficiency.

Goals for 2020

Reduce water consumption per unit of product by 10% compared to 2015.

Goals for 2025

Reduce water consumption per unit of product by 15% compared to 2015.

Waste Management

Strategies

Improve process technology and source management measures to reduce raw material use and waste output. Cooperate with global operating partners to recycle and reuse waste resources.

Goals for 2020

Reduce waste per unit of product by 10% compared to 2015.

Landfill rate of less than 1%.

Greater than 98% recycling for liquid waste.

100% resource recycling for acid-base liquid waste.

Goals for 2025

Landfill rate of less than 1%.

Greater than 98% recycling for liquid waste.

100% resource recycling for acid-base liquid waste.

Ultrapure Water Utilization

Strategies

Uphold the principle of continuous improvement by participating in education and training and strengthening environmental awareness. In product manufacturing, thoroughly implement environmental goals. In R&D, strive for excellence and improve technology capabilities to reduce the need for Ultrapure water (UPW) process.

In line with UMC's commitment to continuous improvement, establish company-wide awareness and implement production control and technology improvement to reduce yearly demand for UPW per unit wafer for each respective area.

Goals for 2020

Through production control and technology improvement, reduce yearly demand for UPW per unit product.

Improve action efficiency and save UPW by 0.3%/year.

Goals for 2025

Through production control and technology improvement, reduce yearly demand for UPW per unit product.

Improve action efficiency and save UPW by 0.2%/year.

Focus

Climate Change

Strategies

Introduce low-carbon design into production processes for source replacement and reduction of process greenhouse gas. Use the best available technologies to reduce greenhouse gas emissions.

Goals for 2020

Reduce fluorinated greenhouse gas (F-GHG) emissions per unit of product by 36% compared to 2010.

Goals for 2025

30% absolute reduction of fluorinated greenhouse gas (F-GHG) emissions compared to 2010.

Reduce total greenhouse gas emissions per unit of product by 5% compared to 2010.
- Reduce Scope 1 greenhouse gas (Scope-1 GHG) emission per unit of product by 40%.
- Reduce fluorinated greenhouse gas (F-GHG) emissions per unit of product by 55%.

Energy Management

Strategies

Promote various types of reduction measures to optimize energy efficiency. Construct green buildings and increase use of renewable energy.

Goals for 2020

Reduce electricity consumption per unit of product by 10% compared to 2015.

Goals for 2025

Reduce electricity consumption per unit of product by 15% compared to 2015.

Air Pollution Control

Strategies

Introduce and develop eco-friendly technologies to strengthen source reduction and prevent pollution.

Goals for 2020

Volatile organic gas reduction rate >92%.

Goals for 2025

Volatile organic gas reduction rate >92%.

Water Source Management

Strategies

Introduce water risk management system, develop and adopt diversified water sources. Promote water conservation and maximize water efficiency.

Goals for 2020

Reduce water consumption per unit of product by 10% compared to 2015.

Goals for 2025

Reduce water consumption per unit of product by 15% compared to 2015.

Waste Management

Strategies

Improve process technology and source management measures to reduce raw material use and waste output. Cooperate with global operating partners to recycle and reuse waste resources.

Goals for 2020

Reduce waste per unit of product by 10% compared to 2015.

Landfill rate of less than 1%.

Greater than 98% recycling for liquid waste.

100% resource recycling for acid-base liquid waste.

Goals for 2025

Landfill rate of less than 1%.

Greater than 98% recycling for liquid waste.

100% resource recycling for acid-base liquid waste.

Ultrapure Water Utilization

Strategies

Uphold the principle of continuous improvement by participating in education and training and strengthening environmental awareness. In product manufacturing, thoroughly implement environmental goals. In R&D, strive for excellence and improve technology capabilities to reduce the need for Ultrapure water (UPW) process.

In line with UMC's commitment to continuous improvement, establish company-wide awareness and implement production control and technology improvement to reduce yearly demand for UPW per unit wafer for each respective area.

Goals for 2020

Through production control and technology improvement, reduce yearly demand for UPW per unit product.

Improve action efficiency and save UPW by 0.3%/year.

Goals for 2025

Through production control and technology improvement, reduce yearly demand for UPW per unit product.

Improve action efficiency and save UPW by 0.2%/year.

Focus

Occupational Safety and Health

Strategy

Adopt advanced security, risk and disaster relief technologies to eliminate hazard factors. Promote a culture of occupational safety for every worker, increase safety awareness and implement preventive management.

Goals for 2020

Reduce number of incidents by 67% compared to 2011.

Base on the Occupational and Health Administration statistical model,

  1. Perform better than the 3-year average Disabling Frequency Rate (FR) for semiconductor manufacturing (2016-2018=0.58).
  2. Perform better than the 3-year average Disabling Severity Rate (SR) for semiconductor manufacturing (2016-2018=13).

Goals for 2025

Reduce the number of incidents by 88% compared to 2011. Base on the Occupational Safety and Health Administration statistical model,

  1. Perform better than the 3-year average Disabling Frequency Rate (FR) for semiconductor manufacturing, and reduce by 25% compared to 2020 goal.
  2. Perform better than the 3-year average Disabling Severity Rate (SR) for semiconductor manufacturing, and reduce by 25% compared to 2020 goal.

Human Rights

Strategy

Ensure that the formulation and implementation of remunerations are free from gender, race, religion, political position, marital status discrimination.

Conduct employee engagement surveys.

Review and ensure that internal regulations are consistent with the Labor Standards Act.

Comply with RBA and implement the Company's human rihts policies.

Goals for 2020

Continue to ensure fair treatment of employees and compliance with laws and regulations.

70% coverage in employee engagement surveys.

Review compliance with relevant labor laws each quarter.

Each fab completes and scores more than 90 points on the Responsible Business Alliance Code of Conduct assessment survey.

Goals for 2025

Continue to ensure that employees receive fair and reasonable remunerations.

80% coverage in employee engagement surveys.

Continue to review compliance with relevant labor laws each quarter.

Each fab completes and scores more than 90 points on the Responsible Business Alliance Code of Conduct assessment survey.

Attract and Retain Talent

Strategy

Enhance employee performance effectiveness through regular education and training.

Keep abreast of market pay information to ensure market competitiveness in overall remuneration.

Introduce engagement surveys to understand employee needs.

Goals for 2020

Provide comprehensive training program to attract and retain talents. Achieve retention rate of 91.3% for medium and high performing talents.

In annual salary adjustment, reach for middle and upper market standard as allowed by profit in the Company's operations.

Scores of up to 70 in employee engagement surveys.

Goals for 2025

Provide comprehensive training program to attract and retain talents. Achieve retention rate of 91.5% for medium and high performing talents.

In annual salary adjustment, reach for middle and upper market standard as allowed by profit in the Company's operations.

Scores of up to 75 in employee engagement surveys.

Talent Development

Strategy

Strengthen effective differentiation of target talents, talent supply and demand, and quantity and capability planning. Introduce talents that fit operational demand.

Develop yearly performance improvement plan for low-performing employees to coach and improve operations.

Through the Company's Education Committee, conduct regular meetings and annual performance review to ensure completion rate in company-wide training programs.

Above average pay adjustment for high-performing employees, and measures for differentiated rewards.

Goals for 2020

Improve quality and quantity of human resources supply, develop market competitiveness of talents, and achieve talent fit rate* of 80%.

100% completion rate in improvement programs for low-performance employees.

95% completion rate in annual training programs.

Above average pay adjustment for high-performing employees, and measures for differentiated rewards.

Goals for 2025

Improve quality and quantity of human resources supply, develop market competitiveness of talents, and achieve talent fit rate* of 85%.

100% completion rate in improvement programs for low-performance employees.

100% completion rate in annual training programs.

Continue with above average pay adjustment for high-performing employees, and measures for differentiated rewards.

 

(Fit rate* = Total number of accepted target talents / Total number of approved posts for talents)

Focus

Occupational Safety and Health

Strategy

Adopt advanced security, risk and disaster relief technologies to eliminate hazard factors. Promote a culture of occupational safety for every worker, increase safety awareness and implement preventive management.

Goals for 2020

Reduce number of incidents by 67% compared to 2011.

Base on the Occupational and Health Administration statistical model,

  1. Perform better than the 3-year average Disabling Frequency Rate (FR) for semiconductor manufacturing (2016-2018=0.58).
  2. Perform better than the 3-year average Disabling Severity Rate (SR) for semiconductor manufacturing (2016-2018=13).

Goals for 2025

Reduce the number of incidents by 88% compared to 2011. Base on the Occupational Safety and Health Administration statistical model,

  1. Perform better than the 3-year average Disabling Frequency Rate (FR) for semiconductor manufacturing, and reduce by 25% compared to 2020 goal.
  2. Perform better than the 3-year average Disabling Severity Rate (SR) for semiconductor manufacturing, and reduce by 25% compared to 2020 goal.

Human Rights

Strategy

Ensure that the formulation and implementation of remunerations are free from gender, race, religion, political position, marital status discrimination.

Conduct employee engagement surveys.

Review and ensure that internal regulations are consistent with the Labor Standards Act.

Comply with RBA and implement the Company's human rihts policies.

Goals for 2020

Continue to ensure fair treatment of employees and compliance with laws and regulations.

70% coverage in employee engagement surveys.

Review compliance with relevant labor laws each quarter.

Each fab completes and scores more than 90 points on the Responsible Business Alliance Code of Conduct assessment survey.

Goals for 2025

Continue to ensure that employees receive fair and reasonable remunerations.

80% coverage in employee engagement surveys.

Continue to review compliance with relevant labor laws each quarter.

Each fab completes and scores more than 90 points on the Responsible Business Alliance Code of Conduct assessment survey.

Attract and Retain Talent

Strategy

Enhance employee performance effectiveness through regular education and training.

Keep abreast of market pay information to ensure market competitiveness in overall remuneration.

Introduce engagement surveys to understand employee needs.

Goals for 2020

Provide comprehensive training program to attract and retain talents. Achieve retention rate of 91.3% for medium and high performing talents.

In annual salary adjustment, reach for middle and upper market standard as allowed by profit in the Company's operations.

Scores of up to 70 in employee engagement surveys.

Goals for 2025

Provide comprehensive training program to attract and retain talents. Achieve retention rate of 91.5% for medium and high performing talents.

In annual salary adjustment, reach for middle and upper market standard as allowed by profit in the Company's operations.

Scores of up to 75 in employee engagement surveys.

Talent Development

Strategy

Strengthen effective differentiation of target talents, talent supply and demand, and quantity and capability planning. Introduce talents that fit operational demand.

Develop yearly performance improvement plan for low-performing employees to coach and improve operations.

Through the Company's Education Committee, conduct regular meetings and annual performance review to ensure completion rate in company-wide training programs.

Above average pay adjustment for high-performing employees, and measures for differentiated rewards.

Goals for 2020

Improve quality and quantity of human resources supply, develop market competitiveness of talents, and achieve talent fit rate* of 80%.

100% completion rate in improvement programs for low-performance employees.

95% completion rate in annual training programs.

Above average pay adjustment for high-performing employees, and measures for differentiated rewards.

Goals for 2025

Improve quality and quantity of human resources supply, develop market competitiveness of talents, and achieve talent fit rate* of 85%.

100% completion rate in improvement programs for low-performance employees.

100% completion rate in annual training programs.

Continue with above average pay adjustment for high-performing employees, and measures for differentiated rewards.

 

(Fit rate* = Total number of accepted target talents / Total number of approved posts for talents)

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