ESG Steering Committee Chairman Message

To those who are concerned about sustainability at UMC:

People around the world are learning to adapt to a new normal shaped by the COVID-19 pandemic, while geopolitical tensions and extreme weather events have added to the complexity of business operations. Despite the challenges, UMC demonstrated resilience and achieved outstanding results, which was made possible by the dedication of every member of our global team. 2021 revenue reached NT$213 billion while profit hit a record high of NT$55.78 billion. Return on shareholders' equity grew to 21.59%. UMC was also ranked no. 1 among semiconductor peers in the 2021 Dow Jones Sustainability Indices (DJSI), recognizing our longstanding commitment to sustainability as a key operating principle.

In the past year, the ESG Steering Committee confirmed our 2030 Sustainability Strategy Blueprint, which will guide us to deepen ESG work in all aspects. In terms of corporate governance, UMC is one of the few listed companies that has been ranked in the top 5% in the Corporate Governance Evaluation conducted by the Taiwan Stock Exchange and Taipei Exchange every year since 2015. Our Board of Directors also recently passed a proposal to link employee rewards and remuneration with ESG performance. On environmental sustainability, we have achieved 100% of the 2021 targets in our "Green 2025” initiative for energy and water conservation, waste reduction, and fluorinated greenhouse gas reduction. Affirming our commitment, UMC gained membership in the global renewable energy initiative RE100, and formally pledged to reach net-zero emissions by 2050. For our employees, we continue to enhance benefits and strive to provide a safe, healthy, and friendly workplace. Last but not least, we contribute to the well-being of our communities and offer assistance for the disadvantaged through the UMC Foundation and volunteer programs. More details can be find in this report.

Semiconductors are indispensable in modern life, and essential in making various applications and products more energy efficient. As a leading foundry player, UMC plays a crucial role in the global economic development and the transformation to a low-carbon future. In the face of a rapidly changing environment, we will continue to prioritize resources on ESG, and demonstrate our commitment to global sustainable development. Together with value chain partners, we strive to fulfil our responsibilities as global corporate citizens, pursue business growth while advancing ESG, and contribute to the positive development of the environment, society, and economy.

We would like to express sincere gratitude to all of you who are concerned about sustainable development, and wish you all peace and good health.