Our Focuses｜Corporate Governance｜Productivity and Business Performance

Productivity and Business Performance

Productivity 

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

In 2024, Winbond actively promoted digital transformation, completing 37 related activities and training sessions, systematically strengthening employees' understanding and application of digital tools and processes, thereby improving overall work efficiency and productivity. Notably, in response to the rapid development of global AI technology, Winbond significantly increased the proportion of AI-related activities and training courses from 6% in 2023 to 59%. This growth not only demonstrates Winbond employees' enthusiasm for embracing innovative technology but also highlights the company's determination and execution in deeply integrating AI technology into corporate operations and activities. In terms of system construction, Winbond successfully completed the optimization and upgrade plan of the AP Request Portal in 2023, laying a solid foundation for enterprise productivity tracking management. Building on this important achievement, Winbond further analyzed the collaboration patterns and processes of employees using this system from 2024 onwards to identify more potential optimization opportunities. Looking ahead to 2025, Winbond will adopt a more comprehensive integration strategy, simultaneously advancing the coordinated development of systems, processes, and personnel to ensure effective tracking and management of productivity improvements across departments through IT systems, while also tracking and managing corresponding resource inputs to achieve maximum resource utilization efficiency.
 

Looking to the future, Winbond has set a mid-to-long-term vision for 2030, committed to achieving the ambitious goal of 100% employee participation in digital transformation. This means that every employee will become a key driver in the digital transformation journey, fully realizing their individual potential and jointly promoting the continuous growth of the enterprise. Winbond will continue to drive stable growth in corporate productivity through ongoing technological innovation, process optimization, and internal management enhancement, maintaining a leading position in market competition, and achieving sustainable profitability and long-term value creation.

Tax Management

In 2024, Winbond's tax governance unit completed the formulation of the "Winbond Tax Governance Policy ,"enhancing tax transparency, reducing tax risks, and promoting good relations between the company and tax authorities. This initiative aims to fulfill corporate social responsibility, advance economic, environmental, and social progress, and achieve sustainable development goals.

In response to the OECD global anti-tax avoidance trend, Winbond has ensured transparency by completing the transfer pricing documentation for parent and subsidiary companies as scheduled and regularly disclosing tax information in financial reports and annual reports. Regarding tax fairness, Winbond has completed local tax filings for parent and subsidiary companies within the deadlines and has appointed and consulted external professional advisors to ensure the group's tax responsibilities in various countries.

Operating Revenue, Operating Profit and Loss, Current Income Tax Expense, Income Tax Cash Payment Distribution Table
 

Amount (Unit: NT$ Million)

Note:
1. The data are financial figures before consolidation eliminations.
2. Tax jurisdictions in Asia (excluding Taiwan) include Japan, China (including Hong Kong), Israel, India, South Korea, and Singapore.
3. Other regional tax jurisdictions include Germany and the United States.
4. In 2024, income tax cash payments amounted to NT$523 million, accounting for approximately 0.64% of consolidated revenue.
In 2023, income tax cash payments amounted to NT$1.469 billion, accounting for approximately 1.96% of consolidated revenue.

Tax Reductions and Credits

Winbond and Nuvoton applied for the 2023 Taiwan Profit-Seeking Enterprise Income Tax in 2024, utilizing the tax credits for R&D expenditures and 5G smart machinery investments under Article 10 of the Industrial Innovation Act. The declared tax credit amount was NT$ 396,414 thousand, and the actual tax credit amount for the current period was NT$ 67,645 thousand.
Note: The 2024 tax filing has not yet been approved by the tax authorities (National Taxation Bureau).
 

Subsidies of Investment, R&D, and Others

1. Winbond obtained a government preferential interest rate loan of NT$ 6,901,600 thousand under the "Action Plan for Welcoming Taiwanese Businesses Back to Taiwan". The interest rate after government subsidy was 1.38% to 2.73%, used for purchasing machinery and equipment and for working capital turnover.
2. Winbond applied for the "IC Design Top-Up Subsidy Program" from the Industrial Technology Department of the Ministry of Economic Affairs, which was approved in September 2024, with a total subsidy amount of NT$ 555,500 thousand.
3. Winbond applied for the "Post-Pandemic Low-Carbon Transformation Subsidy Program" from the Industrial Development Administration of the Ministry of Economic Affairs, collaborating with 13 suppliers and outsourcing manufacturers to formulate a carbon reduction plan, with a total subsidy amount of NT$ 6,635 thousand.
For related information, please refer to the 2024 Annual Consolidated Financial Report