Winbond Electronics : CSR Report

Contents

Preamble

Message from the Chairman and CEO	04
2021 Awards and Recognition	06
Annual Performance Overview	07
Digital Transformation - Raising	08
Productive Creativity
Value Creation - Product Innovation and	11
Quality Improvement

01		02		03
Sustainability Philosophy	Vision and Value		Greening the Environment
Taking the Lead					Committed to Environmental Protection
1.1	Introduction to Winbond	17	2.1	Innovation and Research and Development	41	3.1	Green Manufacturing	83
1.2	Sustainable Development Strategy	23	2.2	Quality Management for Products and Services	51	3.2	Energy and Carbon Management	84
1.3	Materiality Analysis and Stakeholder	28	2.3	Risk Management	58	3.3	Resource Management	88
	Engagement		2.4	Information Security Management	65	3.4	Waste Management	93
			2.5	Customer Relationship Management	70	3.5	Emissions Management	95
			2.6	Sustainable Supply Chain	73	3.6	Hazardous Substance Management	96

04	05	06
Harmony and Inclusion	Integrity and Stability	Appendix

4.1	Talent Recruitment, Development and Retention	100	5.1	Corporate Governance
4.2	Employer-employee relations	119	5.2	Transparency and Integrity
4.3	Occupational Safety and Health	120
4.4	Community and Social Participation	126

134	Appendix A About This Report	141
137	Appendix B GRI Content Index	143
	Appendix C Sustainability Accounting Standards Board (SASB) Index	147
	Appendix D Third-Party Assurance Statement	148

Product Innovation and Quality Improvement

Productivity and Creativity Enhancement

Preamble

Message from the Chairman and CEO 2021 Awards and Recognition Annual Performance Overview Digital Transformation -

Value Creation -

Yu-Cheng Chiao

Chairman & CEO

Message from the Chairman and CEO

Due to the impact of the COVID-19 pandemic in 2021, the ways of life and working methods in the world have undergone tremendous changes. Taiwanese businesses face on not only international challenges but also domestic challenges, such as the disruption of supply chains, delays in sea and air transportation, and water and electricity shortages. In the coming year, global business operations are still facing challenges such as bottlenecks in the supply chains, inflation, global warming, technological advancement, information security threats, and the COVID-19 pandemic. These challenges have been examining our crisis management and business continuity. Winbond will continue to innovate and strengthen the core competitiveness of our products, as well as endeavor to implement digital transformation to optimize operations, enhance our information security framework to address cyber risks, and integrate group resources to achieve operating synergy.

Steady Progress towards Sustainability

Over the years, Winbond has been fully committed to corporate sustainability, creating sustainable values and market competitiveness for our products and services. In 2021, we introduced the Task Force on Climate-related Financial Disclosures (TCFD) framework, thus identifying risks and opportunities brought by climate change, such as the use of renewable energy, improvement in water use efficiency, and transition into low-carbon investments. We also have completed inventories of our wafer products' water footprint and carbon footprint in accordance with international standards (ISO 14046 and ISO 14067, respectively). We also introduced the energy management system (ISO 50001) to optimize our process and reduce energy resource consumption comprehensively. In 2021, we reduced our greenhouse gas emissions by 229,245 metric tons of CO2e, an improvement of 8% compared to 2020. The 499-kW rooftop renewable energy generation equipment built by our Central Taiwan Science Park (CTSP) Facility generated a power of 720,000 kWh in total in 2021, and the generated power was continually sold to Taiwan Power Company. Winbond has also established a cross-departmental taskforce on reducing carbon emissions from our manufacturing process to develop relevant technologies to reduce carbon emissions from manufacturing processes, thereby making contributions to our common environment.

Winbond has been recognized for our efforts and achievements in our sustainability performance by external ratings and investment organizations. We won four awards from the 2021 Taiwan Corporate Sustainability Awards (TCSA) organized by the TAISE, including the consecutive win of "Corporate Sustainability Overall Performance

• Top 50 Sustainable Enterprise" and "Corporate Sustainability Report Platinum Award", and the first-time win of "Sustainability Individual Category Performance
• Talent Development Leadership Award" and "Sustainability Individual Category Performance - Innovative Growth Leadership Award". In 2021, Winbond was selected in FTSE4Good Emerging Index and FTSE4Good TIP Taiwan ESG index and as a constituent stock in the TWSE Taiwan Corporate Governance 100 Index. In addition, we have been ranked top 6-20% in the TWSE Corporate Governance Evaluation for many years consecutively.

Preamble

4

Sustainability	Vision and Value	Greening the	Harmony and	Integrity and	Appendix
Philosophy	Environment	Inclusion	Stability

Green Research and Development

and Digital Innovation

Winbond proactively exerts our influence on corporate sustainability through innovative research and development. Regarding our products, Winbond integrates optimized design frameworks and compacted circuit design to reduce the product size, reduce power consumption and optimize its standby power consumption while pursuing the development of high-performance products. In 2021, the power consumption of the new generation of products was reduced by more than 20% compared with the previous generation. Regarding the manufacturing process, the product manufacturing time is effectively shortened through continuous integration of the current manufacturing procedures. The amount of hazardous substances generated and emitted during the manufacturing process is reduced, which comprehensively improved our sustainability competitiveness. Through continuous innovations and the pursuit of high quality, Winbond can meet the high standards of world-class customers and keep our products in the leading position in the specialty DRAM and memory market.

In the past two years, Winbond has been dedicated to digital transformation. Thanks to the collaborative efforts of all our employees, we have completed many excellent transformation projects. In particular, we achieved significant results in improving the yield rate, production efficiency, and quality control in our 12-inch wafer factories. AI and sensor technology were also adopted to build a high-mixlow-volume smart production model, thus optimizing manufacturing and service processes and continuously refining smart production. In addition to introducing new digital technologies and tools, we also urge all our employees to step out of their comfort zones and innovate in their daily tasks to create innovative potentials and improve Company's productivity and operating efficiency. Therefore, our competitiveness could be continuously improved in response to the ever-changing circumstances of the industry.

Community and Social Participation,

Inclusive and Common Good

Winbond has been deeply involved in social care and development for many years. We have invested resources from multiple perspectives. In 2021, we also continued to invest in areas such as "caring for youths and children," "academic cooperation," and "promotion of public welfare." For example, the Happy Breakfast Program for School Children in Remote Areas has been in operation since 2011. The "Academy of Innovative Semiconductor and Sustainable Manufacturing" was established in cooperation with National Cheng Kung University. We also jointly carried out project development and research with professors from National Taiwan University and National Chiao Tung University and sponsored seminars on semiconductor and information and communication industries at home and abroad. In May 2021, when the epidemic outbroke in Taiwan, Winbond donated positive pressure testing booths (PPTB) to Ten Chen and Yeezen General Hospital, allowing the front-line medical staff could perform duties in a better-quarantined environment. We endeavor to create a positive epidemic prevention force in society and set the benchmark for sustainability.

Looking forward to the future, in recent years, global and regional integration has taken new looks, and major economies have also been increasing their influence on the semiconductor industry and emerging technologies. Facing these new challenges and opportunities, Winbond will respond with globalized corporate operations to provide customers with complete services as well as supplies that are flexible and stable to grasp business opportunities in different regions of the world. Winbond will continue to uphold the core cultures, which are "Conduct business with integrity and ethical behavior, Accountable team work, Enthusiasm of learning, Aggressively innovate, and Sustainable contribution," progress continuously towards achieving the goal of "Be a hidden champion in providing sustainable semiconductors to enrich human life" and improve our competitiveness in corporate sustainability.

Preamble

5

Sustainability	Vision and Value	Greening the	Harmony and	Integrity and	Appendix
Philosophy	Environment	Inclusion	Stability