Our Focuses｜Corporate Governance｜Productivity and Business Performance

Productivity Performance

Productivity and business performance are the cornerstone of Winbond's sustainable growth and a key driver of market competitiveness. We firmly believe that by continuously enhancing productivity, we can not only effectively reduce operating costs and minimize resource waste, but also expand revenue scale, thereby creating greater corporate value and operational excellence.

In 2025, Winbond's digital transformation reached a new milestone. A total of 57 digital training sessions were conducted throughout the year, with AI-related activities (AI Applications and Prompt Engineering) accounting for 49%, while digital application programs (Digital Applications and Data Warehouse) increased to 51%. This dual-track strategy demonstrated remarkable results during the 2025 Hackathon, where all participating projects successfully combined digital and AI tools to deliver hybrid innovations and effectively transform creative ideas into practical solutions.

In addition, while actively promoting AI adoption, Winbond places strong emphasis on risk management and governance mechanisms related to AI technologies. Winbond established its Responsible AI Policy and launched a Responsible AI Program to develop principles and management frameworks governing the use of AI tools. These frameworks cover critical areas such as information security, privacy protection, intellectual property rights, and regulatory compliance. Through institutional governance and employee training, Winbond supports employees in utilizing AI technologies in a secure, transparent, and responsible manner, enhancing work efficiency and innovation capabilities while maintaining effective risk management and supporting long-term corporate sustainability.

Looking ahead to 2026, we will adopt a comprehensive integration strategy that simultaneously advances the coordinated development of Systems, Processes, and People. By establishing a transparent, data-driven decision-making framework and leveraging value- and resource-allocation models, we will ensure that digital transformation investments are closely aligned with the company's strategic objectives and maximize the effectiveness of resource utilization.

Looking toward 2030, Winbond is committed to achieving an ambitious vision of 100% employee participation in digital transformation. This means that every employee will become a key driver of the transformation journey, fully realizing their individual potential while contributing to the company's continued growth. Through ongoing technological innovation, process optimization, and empowerment-focused management, Winbond will continue to drive steady productivity growth, maintain a leading position in market competition, and achieve sustainable profitability and long-term value creation.

Tax Management 

In 2024, Winbond's tax governance unit completed the establishment of the "Winbond Electronics Tax Governance Policy" to enhance tax transparency, reduce tax risks, and foster sound relationships between the Company and tax authorities, thereby fulfilling corporate social responsibility, advancing economic, environmental and social progress, and achieving the goal of sustainable development.

In response to the global anti-tax-avoidance trend led by the OECD, Winbond ensures information transparency by completing transfer pricing documentation filings for the parent company and its subsidiaries on schedule and by regularly disclosing tax information in its financial statements and annual reports. In terms of tax fairness, Winbond completes local tax filings for the parent company and its subsidiaries within the statutory deadlines and engages and consults external professional advisors to ensure the Group fulfills its tax obligations in every country.

Seven Principles of the Tax Policy

1. The Company shall strictly comply with the tax regulations applicable to each operating site, ensuring accurate, timely and honest filing and payment of taxes, and fulfilling its social responsibility as a taxpayer.
2. The Company shall not use tax structures or tax havens to avoid taxes, nor shift corporate profits to low-tax jurisdictions.
3. Related-party transactions shall comply with the arm's length principle and follow the OECD Transfer Pricing Guidelines; profits shall not be manipulated through related-party transactions.
4. In the event of significant changes in tax regulations, the Company shall, where necessary, consult independent third-party tax advisors before comprehensively assessing the impact and formulating response measures.
5. Tax information shall be disclosed in financial statements, annual reports, and other stakeholder reports assessed as conducive to improving tax transparency.
6. The Company shall maintain sound communication with tax authorities based on mutual trust and honesty.
7. The Company shall cultivate tax professionals over the long term to achieve knowledge transfer and continuous development.

Distribution of Group Operating Revenue, Operating Income (Loss), Current Income Tax Expense and Income Tax Paid in Cash

Amount (Unit: NT$ million)

Notes:
Note 1: All figures are financial data before consolidation eliminations.
Note 2: The "Other Regions" tax jurisdictions cover the following countries: Germany, India, Israel, Republic of Korea, Singapore and the United States (listed in alphabetical order).
Note 3: In 2025, the Winbond Group's income tax paid in cash was NT$363 million, accounting for approximately 0.41% of consolidated operating revenue.In 2024, the Winbond Group's income tax paid in cash was NT$523 million, accounting for approximately 0.64% of consolidated operating revenue.
 

Tax Exemptions and Credits

In 2025, Winbond (Taiwan) and Nuvoton (Taiwan) filed their 2024 Taiwan profit-seeking enterprise income tax returns, applying the investment tax credits for research and development expenditures and for 5G and smart machinery investments under Article 10 of the Statute for Industrial Innovation. The tax credits claimed totaled NT$862,213 thousand, of which NT$56,006 thousand was actually credited against the current-period tax payable.
Note: The tax returns filed in 2025 have not yet been assessed by the tax authority (National Taxation Bureau).

Investment Grants, R&D Grants and Other Related Subsidies

• Winbond obtained preferential-interest-rate government loans of NT$6,901,600 thousand under the "Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan," with post-subsidy interest rates of 1.38% to 2.91%, used for the purchase of machinery and equipment and for working capital.
• Winbond's application for the "Leading IC Design Grant Program" of the Department of Industrial Technology, Ministry of Economic Affairs, was approved in September 2024, with a total approved grant of NT$555,500 thousand.
• Winbond applied for the "Post-Pandemic Low-Carbon Transition Grant Program" of the Industrial Development Administration, Ministry of Economic Affairs, and worked with 13 suppliers and outsourcing partners to formulate carbon reduction plans, with a total approved grant of NT$18,800 thousand.
• Winbond applied for the "2025 Energy Saving Performance Guarantee Program" of the Energy Administration, Ministry of Economic Affairs, with a total approved grant of NT$5,000 thousand.