Supplier Management

All of our suppliers have completed relevant evaluations and are continuously monitored. To track the implementation of corporate social responsibility by our suppliers, new suppliers in Taiwan are selected based on criteria that prioritize not only product quality, delivery compliance, and quality control capabilities, but also those with quality certifications (ISO 9001), environmental certifications (ISO 14001, carbon footprint, water footprint, etc.), occupational health and safety certifications (ISO 45001), and information security and privacy protection certifications (ISO 27001). Since 2018, the Company has included four major issues—environment, labor conditions, human rights, and society—as core selection criteria. As of November 2020, the "Supplier Code of Conduct" has been added as a mandatory evaluation item, and a self-assessment survey for suppliers in Taiwan has been implemented. Any supplier found to be in violation of environmental, labor, human rights, or social regulations will lose their qualified supplier status. By identifying and managing significant actual and potential negative impacts within the supply chain, we aim to achieve sustainable development in partnership with our suppliers. In 2025, there were 37 suppliers who met the aforementioned evaluation criteria and signed long-term procurement contracts with the Company.

The Company's procurement unit has established a conflict minerals management policy. The Company commits not to directly or indirectly purchase conflict minerals from conflict-affected areas and does not support or finance armed groups or supply chain practices involving human rights abuses. The Company also seeks to establish an ethical, transparent, traceable, and responsible supply chain. New suppliers are required to complete the "Supplier Evaluation Questionnaire and Audit Form" and the "Conflict Mineral Statement" The Company assesses whether new suppliers have committed any material violations related to environmental protection, labor conditions, human rights, social issues, intellectual property rights, and other areas, as described below. A supplier with any such violation cannot qualify as an approved supplier. Each year, the Company conducts on-site spot checks of one to three carbon material suppliers to understand actual implementation.

I. Environmental Issues

Air pollution, effluents, waste, toxic chemicals, noise, soil, groundwater, energy consumption, etc.

II. Labor and Human Rights

Prohibit forced labor and child labor; provide appropriate wages and benefits; protect working hours and occupational injury compensation; eliminate workplace sexual harassment, bullying, and discrimination; uphold freedom of association; and support the non-use of conflict minerals

III. Health and Safety

Comply with occupational safety and health regulations; provide employees with information on safety, emergency response, industrial hygiene, machine guarding, public health, and health and safety

IV. Code of Ethics

Operate with integrity; respect intellectual property rights; comply with relevant confidentiality agreements; protect privacy; avoid conflicts of interest; firmly oppose money laundering, bribery, and monopolistic practices; and comply with laws and regulations

V. Respect for intellectual property rights

Including patent rights, trademark rights, copyrights, and trade secrets

VI. Information Security

Ensure data confidentiality, integrity, and availability through well-defined information security management, regular backups, employee anti-fraud drills, compliance, and risk disclosures.

VII. Privacy Protection

Implement privacy and personal data protection through compliance declarations, access controls, system safeguards, and employee training.

The Company established and implemented the Due Diligence Guidelines in 2024 to ensure that suppliers comply with the Supplier Code of Conduct, covering labor and human rights, health and safety, environmental issues, ethical standards, management systems, and the non-use of conflict minerals (CSCC Conflict Minerals Policy). The Company's human rights due diligence process and implementation status for 2025 are as follows:

Continuously incorporate ESG supplier due diligence issues, environmental issues, labor conditions, human rights issues, non-use of conflict minerals, and supplier code of social conduct as new supplier evaluation items.
In 2025, 37 suppliers met the evaluation criteria and entered into long-term contracts with the Company. Of the 12 designated suppliers subject to due diligence, the Company conducted site visits to five suppliers in 2025, bringing the cumulative total for 2024 to 2025 to 11. No high-risk cases were identified in the assessments.