Corporate Sustainable Development

 (1) Does the company have an ethical corporate management policy approved by the Board of Directors, clearly state the policy and procedures in its guidelines and external documents, and demonstrate commitment from the Board of Directors and top management to implement the policy ?

( 1 )UMC has formulated the Code of Ethics for Directors and Officers, the Employee Code of Conduct, and the Ethical Corporate Management Best Practice Principles with approval by the Board of Directors, and the UMC Code of Conduct as regulatory guidelines for all directors, managers and employees of the Company. Please refer to the UMC websites at https://www.umc.com/en/Html/ir_corporate_governance and https://www.umc.com/en/Html/UMC_code_of_conduct. 

(2) Does the company have policies to prevent unethical conduct, analyze and evaluate the risk of unethical conduct in operating scope periodically, at least including appropriate precautions against high-potential unethical conduct or listed activities stated in Article 2, Paragraph 7 of the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies ?

( 2 ) The Employee Code of Conduct and the UMC Ethical Corporate Management Best Practice Principles are provisions for regulating moral integrity, conflict of interest, and business conduct. The Company also establishes a risk assessment mechanism against unethical conduct. Other relevant education, training, or tests are conducted from time to time for employee education.

(3) Does the company have policies to prevent unethical conduct with clear statements regarding relevant procedures, guidelines of conduct, punishment for violation, rules of appeal, and the commitment to implement the policies and review the policies periodically ?

( 3 ) The Employee Code of Conduct and the UMC Ethical Corporate Management Best Practice Principles are provisions for regulating moral integrity, conflict of interest, and business conduct. The Company also establishes a risk assessment mechanism against unethical conduct. Other relevant education, training, or tests are conducted from time to time for employee education.

(1) Does the company evaluate business partners’ ethical records and include ethics-related clauses in business contracts ?

( 1 )All suppliers have signed the Employment Ethics Terms and Conditions Agreement in which policies and reporting channels are clearly stated. Furthermore, to strengthen and implement policies on quality, penalties for violating the above Process Change Notification (PCN) are clearly stated in the purchase order in accordance with the UMC Raw Material Supplier PCN Application Management Method (GG-Q12-008-E).

(2) Does the company have an exclusively (or concurrently) dedicated unit supervised by the Board of Directors to be in charge of corporate integrity, implementation, and regularly reports to the Board, at least once a year ?

( 2 )The ESG Steering Committee is the highest-level corporate social responsibility organization within UMC. The committee formulates the direction and objectives of the Company’s corporate social responsibility and sustainable development, and reports to the Board of Directors annually.（Report Date is Oct. 26, 2022.） Ethical management is only one part of corporate sustainability. For further information, please refer to UMC website at https://www.umc.com/en/Html/UMC_code_of_conduct.

(3) Does the company have policies to prevent conflicts of interest and provide appropriate communication channels ?

( 3 )Please refer to Employee code of conduct at https://www.umc.com/upload/media/08_Investors/Corporate_Governance/Major_Internal_Policies/Employee_Code_of_Conduct-e.pdf for policies and reporting channels.

（4）In order to facilitate ethical corporate management and issue a reliable, transparent and compliant report, UMC established an effective accounting system and designed relevant internal control systems based on evaluation results of risks including unethical conduct, code of conduct and regulations compliance. UMC Audit Division directly under the Board of Directors/Audit Committee performs relevant operation audits according to annual audit plans and regularly reports the audit results and improvement follow-up to the Board of Directors/Audit Committee. And through annual internal control and self-assessment, UMC has also conducted a self-review of all fabs, departments and subsidiaries operation to achieve the effectiveness of internal control systems’design and implementation.In addition, UMC is also listed on the New York Stock Exchange (NYSE) and subject to US regulations for foreign issuers. Since 2006, UMC has complied with the SOX 404 Act and has been audited by the independent auditors implementation performance.

(5) Does the company regularly hold internal and external educational trainings on operational integrity ?

（5）UMC has formulated the Code of Ethics for Directors and Officers, the Employee Code of Conduct, and the Ethical Corporate Management Best Practice Principles as regulatory guidelines for all its directors, managers and employees. These regulations aim to enhance the quality of conduct and professional ethics of the Company and its entire staff. The abovementioned Employee Code of Conduct is implemented in the daily work of all employees through physical and online training courses and tests. In 2022, UMC fabs in Taiwan and Singapore have completed the training courses and passed relevant tests.

(1) Does the company have a system to process complaints and offer reward incentives, a hotline for reporting complaints, and a designated personnel to follow up with complaints ?

（1）Article 6 of the Employee Code of Conduct describes measures to prevent ethics violations, and to protect whistleblowers and to prevent retaliatory action. Employees or any whistleblowers may report violations to relevant management and supervisory units through e-mail or hotlines, and the head of the Audit Division is promptly notified of the report.

(2) Does the company have standard operating procedures for investigating complaints, follow-up actions, and ensuring the complaints are handled in a confidential manner ?

（2）After receiving a complaint, UMC will convene an investigative team to investigate the violation described in the report. Once the investigation results are confirmed, those found violating or breaching the Code of Conduct are to face adequate corrective action by the Company depending on the severity of the incident. The Company will protect any employee reporting ethics violations or frauds, or participating in the investigation, from unfair treatment or retaliation. For details, please refer to Employee code of conduct at https://www.umc.com/upload/media/08_Investors/Corporate_Governance/Major_Internal_Policies/Employee_Code_of_Conduct-e.pdf.

(3) Does the company provide proper whistleblower protection ?

（3）The Company will protect any employee reporting ethics violation or fraud, or participating in the investigation, from unfair treatment or retaliation. For details, please refer to webpage at https://www.umc.com/upload/media/08_Investors/Corporate_Governance/Major_Internal_Policies/Employee_Code_of_Conduct-e.pdf.