Governance

Integrate UMC group resources to achieve the most competitive supply chain value through strategic cooperation.

1. Drive suppliers to improve economic, social and environmental performance.
2. Continue to guide suppliers to achieve diversified and localized supply capabilities.
3. Promote suppliers’ moving from energy savings and carbon reduction toward the circular economy.

Proactively implement green procurement while pursuing economic benefits.

Ensure that products and supply chain are free from conflict mineral.

Focus on suppliers' energy resource use and water resources

management to respond to the impact of extreme climate change on the supply chain.

Strengthen recycling of waste resources and strive to reduce the impact of environmental pollution.

• To firmly believe the key point of an enterprises management is to fulfill economic, environmental, and society obligations. To voluntarily reinforce the enterprise's commitment to these obligations, and promote the benefits to customers, employees, suppliers & the community.
• To monitor fire and earthquake damage, security risks & hygiene, environment, and labor rights. Supply chain risk management is also a competitive capability; as such, the company shall focus on supply chain vendors risks and voluntarily provide any assistance, if necessary.
• To ask suppliers to conduct the survey and management of the current business operating status, material sourcing diversification and the geographic dispersion of suppliers' production. To reduce the material shortage risks from extreme climate or serious natural disasters.
• To build up our risk evaluation program for supply chain vendors and establish an eternal evaluation method for them. To regard the method as the risk evaluation element and become one of the most important UMC procurement strategic references with elements of delivery date, quality, finance and business operation.
• UMC requires suppliers to guarantee conducting suppler assessment and obtaining supplier signatures non-conflict minerals and ensure that products from suppliers the use of tin, tantalum and tungsten. UMC shall exercise due diligence in supply chain audits to exclude the use of conflict minerals from the Democratic Republic of Congo (DRC) or Central Africa. UMC encourages suppliers to promote similar management policy. UMC has announced related procurement policy to CSR column in the official website to ensure metal procurement procedure meets social and environmental responsibility.
• To respect and protect the rights of intellectual patent property and conduct fair trade, advertisement and competition.
• To commit to business integrity and forbid any inappropriate profit acceptance, corruption, extortion, or defalcation. To establish an identification and penal security mechanism.

To ensure that labor conditions throughout the supply chain meet international human rights standards and align with the company’s commitment to sustainable development, UMC contractors and partners to make declarations and commitments based on the following standards, in order to protect employees’ fundamental rights and jointly promote fairness and respect in the workplace.

1. Commit to ensuring that employees at all operating locations receive a living wage that meets their basic local needs.*
2. Commit to regularly review and compare wages to ensure that employees’ salaries at all operating locations meet local living standards.
3. Ensure that no forced labor occurs, and all operating locations pay corresponding overtime wages in accordance with local laws. Company policies clearly prohibit excessive working hours.
4. The company actively develops and continuously enhances work time management systems, conducts regular inspections, and reminds managers and employees of relevant rules in labor-management meetings.
5. Ensure that Workweeks are not to exceed the maximum set by local law. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates.
6. The standard weekly working hours is 40 hours; any working hours exceed the standard hours will be considered overtime. Further, a workweek should not be more than 60 hours per week, including overtime, except in emergency or unusual situations.
7. Ensure that workers shall be allowed at least one day off every seven days and not work more than six consecutive days.
8. Commit to provide equal job opportunities and remuneration without discrimination of race, gender, sexual orientation, age, nationality, political orientation, religion, marriage, physical disability, etc.
9. Ensure that compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits, such as paid annual leave.
10. Workers who continue working for a certain period of time are granted paid annual leave each year.
11. Deductions from wages as a disciplinary measure shall not be permitted.
12. Ensure that each employee signs a labor contract with the company in accordance with relevant local laws and regulations. When conducting mass terminations, the notice period will comply with the relevant local labor regulations, and consultation will be initiated before the terminations. We respect employee rights and provide necessary support and assistance.

*note: A living wage refers to earnings during regular working hours, excluding overtime pay and bonuses, and should be sufficient to meet the basic needs of employees and their families in areas such as food, clothing, and housing. Living wage standards are determined based on local laws and publicly available cost-of-living data. The company will regularly review and compare wages to ensure they meet local living standards.

UMC enforces conflict minerals management according to the disclosure rule on conflict minerals released under Rule 13p-1 of the U.S. Securities Exchange Act of 1934 of the U.S. Securities and Exchange Commission (SEC). We have implemented a new supplier evaluation system.  At the new supplier selection stage, we have required the procurement of "conflict-free minerals," which refers to minerals sourced from smelters recognized by the Responsible Minerals Initiative (RMI) or equivalent organizations. Existing suppliers are also required to actively investigate and verify specified materials (gold, tantalum, tin, and tungsten, cobalt, and mica), and sign a Responsible Minerals Declaration. We also conduct due diligence, and through annual supplier audit operations, examine whether suppliers' upstream smelters / refiners use conflict minerals. Adopting a supply chain material traceability and control method to reconfirm the absence of conflict minerals. On the other hand, UMC is also an active participant of global advocacy groups such as RMI of RBA. Through the Responsible Minerals Assurance Process (RMAP), obtain supplier information that complies with conflict mineral requirements as the basis for upstream supply chain management. Require all suppliers to respond to conflict mineral information based on the latest RBA Conflict Minerals Reporting Template (CMRT). UMC's dedicated personnel will then verify whether it complies with RBA-approved smelters to ensure the procurement of conflict-free minerals. If a supplier uses minerals from smelters not listed as qualified under RMAP, UMC will refuse to use the product and request the supplier to submit a plan for improvement within a specified timeframe.

UMC aims to audit all conflict mineral suppliers every three years, having completed audits for all conflict mineral suppliers from 2016 to 2022, and complying with RBA certification, achieving conflict-free supply chain management.

In addition to implementing conflict minerals management according to corporate policy and commitment, UMC also submits Specialized Disclosure (SD) forms to the U.S. SEC while publishing the completed forms on its official website to declare the outcomes of conflict minerals management efforts and demonstrate our commitment to corporate social responsibilities.

UMC has 100% tracked source countries and regions of the minerals used.

UMC follows the OECD's "Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas" and has established a due diligence framework based on its guiding principles. Through this due diligence process, in addition to identifying and assessing UMC's own supplier risks and responding to and mitigating identified risks, it also investigates alternative sources of minerals from conflict-affected and high-risk areas (including alternative suppliers, regions or countries, and alternative raw materials). Alternative suppliers have been found in non-conflict-affected and high-risk areas/countries (e.g., China). Based on the OECD due diligence guidelines, we have designed supplier conflict mineral audit forms and, through on-site and document audits, guide suppliers in establishing management mechanisms that comply with the OECD due diligence guidelines.

The Responsible Supply Chain Team, which integrates MTD, product manufacturing, procurement, and other relevant departments, is responsible for coordinating conflict mineral management practices, with the senior vice president as the highest-ranking official.

Our management procedure includes oversight of our Conflict Minerals and investigation processes by a team made up of representatives from UMC such as:

• MTD & Product manufactory Dept.: to filter out the material suppliers and outsourcing suppliers that were most likely to provide material, products or services containing Conflict Minerals.(Confidential - Internal Nonencrypted)
• Procurement Dept.: sourcing Conflict-Free material suppliers and review supply chain Conflict-Minerals status.
• Quality Insurance Dept.: to design a mechanism to ask for suppliers’ Conflict-Minerals statement announcement in the New Material Evaluation Form.
• Information Technology (IT) Dept.: Coding Conflict Minerals statement announcement in New Material Evaluation Form.

UMC incorporates conflict-minerals requirements into its Supplier Code of Conduct. Before any procurement contract is finalized, both new and existing suppliers are required to sign the Supplier Code of Conduct. Suppliers’ compliance with UMC’s conflict-minerals requirements is a prerequisite for establishing or maintaining a business relationship.

UMC tracks its revenues derived from products containing minerals from conflict-affected and high-risk area.

If you have any suggestions or questions regarding conflict minerals held by United Microelectronics Corporation (UMC), please contact: [email protected]

The latest SD forms may be downloaded as below.

Vision

UMC is committed to responsible procurement of raw materials based on its purpose to respecting human rights, protecting the environment, and complying with all laws and regulations. Amplifying the positive impacts and taking reasonable steps to minimizing the negative impacts that the company operations has on the environment and society.

Strategy

1. Team up with suppliers to trace key raw materials back to their sources. By risk assessment to reduce significant negative environmental or social impacts in the extraction/production of the raw materials.

2. Collaboration and partnership with stakeholders such as industry bodies and nongovernmental organizations as well as the company’s membership of industry groups that clearly aim to create or improve best practice for sustainable raw material.

3. Incorporating sustainable material requirements into supplier management. We are committed to increase the use of third-party verified raw materials and recycled raw materials to promote sustainability.

4. Avoid raw materials from sites containing globally or nationally important biodiversity to avoid habitat destruction, reduce pollution and avoid the over exploitation of natural resources.

   Note : The Policy signed by Chairman

UMC adopts the Scale approach, prioritizing the assessment of raw materials in the product. Through product component analysis, over 99% is silicon, while the rest consists of trace metals, including Al, Ti, Fe, Cu, Ni, and Co. UMC prioritizes the management of these materials to ensure that environmental and social impacts are avoided during the extraction or manufacturing stages.

UMC tracks environmental and social risks in the raw material supply chain through Supplier ESG risk assessment and Screening Process. The screening process includes environmental, social, governance, business closeness, Sector-specific/Country specific, and Commodity-specific risk related suppliers.

At the same time, UMC also requires raw material suppliers to be traced back to the source supplier during the annual ESG risk assessment process, and requires suppliers to be included in the relevant assessment process to reduce social and environmental impacts.

By establishing the "Sustainable Supplier Rating and Response Measures," sustainable management requirements are included in the rating items according to their importance. Every year, UMC sends out an "ESG Risk Assessment Questionnaire" to Tier 1 suppliers supporting production for them to respond to in questionnaire form. The responses are then classified according to the supplier's characteristics and risk level to facilitate graded guidance and improvement during the improvement period. UMC has the "Supplier Sustainable Evaluation and Management Measures" according to the supplier's sustainable risk level.

For significant high-risk suppliers, UMC identifies missing items and assists in guidance to achieve supplier improvement. If improvement cannot be achieved, UMC may continue to provide guidance or temporarily suspend or terminate the business relationship with the supplier. If a supplier cannot meet UMC's requirements even after guidance, UMC will provide continued guidance, place the supplier on an observation list, and conduct a physical audit the following year. If a supplier fails to meet the requirements for two consecutive years, the evaluation results will be communicated to the relevant departments. In the absence of material shortages or production line disruptions, the relevant departments will be required to undergo a replacement process, and measures such as ceasing procurement or revoking the supplier's qualified supplier status will be taken.

Note:

Tier 1 suppliers: Suppliers with direct transactions and more than 2 orders per year, with a transaction amount exceeding NT$2 million. A total of 730 suppliers met the definition in 2025. Significant Tier 1 suppliers: Suppliers accounting for more than 80% of purchase amount. Significant high-risk suppliers: Suppliers whose deficiencies were found during the audit in the previous year and whose improvement plans were proposed but still did not meet UMC's standards. Non-Tier 1 Suppliers: Suppliers that are not Tier 1 suppliers, such as on-site human resource service providers regulated by the Responsible Business Alliance (RBA)