Environment

For energy and greenhouse gas management, UMC has recently formulated various environmental protection objectives for various phases and dimensions along with actual implementation plans.

UMC established its GHG inventory standard mechanism in accordance with inventory guidelines defined by domestic and international organizations such as the ISO14064-1:2018, World Resources Institute’s Greenhouse Gas Protocol and GHG Inventory Guidance in Taiwan. Since 2006, the Company has inventoried the GHG emissions of all fabs annually to verify the effectiveness of reduction measures. Furthermore, UMC’s all consolidated subsidiaries introduced the GHG inventory mechanism and conduct third-party verification to fully determine the status of GHG emissions.

Through carbon footprint and GHG inventories, the Company learned that the main GHG sources are the fluorinated greenhouse gases (F-GHGs) used in the manufacturing process in Scope 1, and from purchased electricity in Scope 2. These emissions account for about 95% of UMC overall GHG emissions. Therefore, GHG reduction of both F-GHGs and purchased electricity have become the priority for UMC. Through low-carbon production processes, UMC produces products with relatively low carbon footprints. All UMC facilities have implemented reduction plans, and all products use low-carbon processes.

Additionally, UMC continues to develop low-power consumption products through the research and development of energy-saving innovative process platforms, which helps avoid carbon emissions during the product end-use phase.

In 2023, based on actual production capacity, UMC Group's Scope 1 and Scope 2 greenhouse gas emissions presented an absolute reduction of 26% as compared to the base year (2020). Even under full capacity scenarios, a reduction of 12% is still achievable, demonstrating the Group's commitment to decarbonization regardless of capacity fluctuations, and making a tangible contribution to global greenhouse gas reduction.

UUMC established the F-GHGs Reduction Taskforce in 1999 to promote GHG reduction. Moreover, the company set GHG reduction goals for the various phases of the program, and has continually conducted reduction measures such as installing high performance local scrubbers for F-GHGs in all new equipment, and utilizing NF3 gases in new CVD equipment to keep emission intensity in a downward trend.

In addition, based on the Electronic Product Environmental Assessment Tool (EPEAT) 1680.1:2018 standards, jointly created by the US Environmental Protection Agency (EPA) and Institute of Electrical and Electronics Engineers (IEEE), the overall F-GHG reduction rates achieved at all 12-inch wafer fabs of UMC and its subsidiaries were all higher than the standard threshold requirement of 75%.

UMC IEEE F-GHG Reduction Declaration

Intensity of F-GHGs Emissions

In order to lessen environmental impact of greenhouse effect and minimize energy consumption, UMC set company-wide carbon reduction goals and development plans through the Corporate Sustainability Committee, which coordinates and integrates energy saving and carbon reduction strategies and initiatives of various departments. Regular committee meetings are held to review progress. The Company continually introduces energy saving technologies and implements energy efficiency improvement programs in all facilities. In addition to its strategy of energy conservation, increasing energy efficiency, and expanding installation of renewables, UMC also promotes the implementation of energy management in its offices and common areas through activities, education, and training to cultivate a mindset and habit of energy conservation and GHG emission reduction among employees.

Note:

1. The statistics of calculation is based on electricity consumption per unit product by 2015 and the scope includes UMC fabs in Taiwan and Singapore.
2. CO₂ emissions are calculated using the latest local electricity coefficient. Taiwan: 0.495 Kg CO₂e/KWh; Singapore: 0.406 KgCO₂e/KWh
3. The gas conservation amount estimated by the energy conservation measure is a theoretical amount. The CO₂, CH₄, N₂O emission coefficient of the 2006 IPCC fixed and mobile resource (gas) and gas caloric value from the various local fabs are also incorporated into the carbon emission calculation.
4. The newly added improvement item was calculated based only on the 12-month performance. For the cross-year project, only the performance generated in 2023 was counted.

To diversify energy sources, UMC is actively installing renewable energy facilities in fabs. Solar energy system is a standard item that will be included in the design and construction of all new fabs. UMC Group joined RE100 as a member, becoming the second semiconductor wafer foundry in this international renewable energy initiative. The Company is committed to using 100% renewable energy by 2050, and has set progressive mid-/long-term goals. UMC intends to support the low-carbon energy transition through solid actions.

Renewable Energy Usage Target

In 2023, a total of 3,965 kWp of solar PV system was installed as planned. As of the end of 2023, UMC group have completed the installation of over 13,700 kWp of solar energy, which is expected to generate up to 16,000 MWh of electricity each year.

Self-use Solar Power Generation