Category |
Risk |
Risk Description |
Region |
UMC’s Response |
Policy and Regulation
|
Carbon tax/fee for greenhouse gas emission control |
|
Taiwan, Singapore, China, and Japan |
|
Green energy policy lead to increased investment and operation cost
|
|
Taiwan |
|
|
|
Taiwan, Singapore |
|
||
Uncertainty about infrastructure supply resilience |
|
Taiwan |
|
|
Impose water surcharge during drought seasons |
|
Taiwan |
|
|
Market |
Customers require low-carbon strategies to keep pace with trend |
|
Taiwan, Singapore, China, and Japan |
|
Reputation |
Impact on corporate reputation |
|
Taiwan, Singapore, China, and Japan |
|
Technology |
R & D focus adjustment, towards low energy consumption and low carbon emission products |
|
Taiwan, Singapore, China, and Japan |
|
Category |
Risk |
Risk Description |
Region |
UMC’s Response |
Acute |
Extreme weather increases supply chain scheduling resources and cost. |
|
Taiwan, Singapore, China, and Japan |
|
Acute |
Strong typhoon/ extreme rainfall lead to increase frequency of work suspended and voltage dips |
|
Taiwan |
|
|
Taiwan |
|
||
Chronic |
Dought worsen and affects production |
|
Taiwan |
|
|
Taiwan |
|
||
Chronic |
Increased electricity consumption due to global warming |
|
Taiwan, Singapore, China, and Japan |
|
Type |
Climate-related Opportunities |
UMC’s Response |
Product/ Service |
Increased market demand for environmentally friendly products |
UMC has continued to develop related technologies according to customer and market demands. For example, 22uLP low power consumption technology has been mass production, which provides better low power consumption and power management, it is estimated that compound annual growth rate (CAGR) will maintain double-digit performance from 2022 to 2026. |
Resource Efficiency |
Carbon trade and offset projects opportunity |
Respond to government policies to reduce greenhouse gas emissions, improve overall equipment and fab operation efficiency. It is expected to gain carbon credit in the future. |
Resource Efficiency |
Enhance energy efficiency of facilities |
Replace old air conditioning facilities with high efficiency ones to enhance energy efficiency. |
Operational Resilience |
Strengthening hardware protection to improve climate resilience |
Raised the factory foundation in Southern Taiwan Science Park by about 2 meters relative to surrounding roads under the scenario of over 500-year return period rainfall to avoid flood risk |