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Business Continuity Management

UMC Business Continuity Management System Development and History

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. In addition, the ISO 22301:2019 transition and FAB12M in Japan first time verification were completed in 2021, and FAB8E first time verification was also accomplished in 2022. The BCM verification scope will be expanded to other 8’FABs continuously to meet stakeholders’ expectation. Composed of the management teams, UMC’s Taiwan headquarter established “Business Continuity Management Committee” to be in charge of resources integration, constant review of improvement plans, and, when risks arise, to ensures making all-out effort to maintain and recover the highest operation objectives and protect the utmost rights and interest of customers and stakeholders.

 

UMC Business Continuity Policy and Objective

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 different 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.

 

 

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 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.

 

 

 

BCM Committee Organization Chart
umc_csr_risk_BCM-Framework_en.jpg

 

 

 

Stage 1. Emergency Response

Control and rescue (hours-days)

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

 

 

Stage 2. Incident Management

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.

 

 

Stage 3. Business Recovery

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.

 

 

Operation of Business Continuity Management

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. Exercises on procedure are held periodically to sharpen response and recovery after incidents. Every fab will conduct BCP exercise at least one time per year, furthermore, we also conduct an MT level drill once 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, investment banks and social media. In addition, production allocation plans between different fabs are also adopted. It demonstrates UMC’s resilience in business continuity. 

 

 

Achievements in 2021

Future goals (to 2024
) Summary

Verifications for BCM system

FAB12M passed ISO 22301:2019 first time verification

Continue to promote the business continuity management system in all UMC fabs :
⦁ 100% for 12-inch fabs
⦁ 100% for 8-inch fabs