Our Focuses｜Corporate Governance｜Productivity and Business Performance
Corporate Governance
“Business integrity” is the foundation of the sustainable operation of the enterprise, and it is the highest corporate culture and spirit of Winbond. Winbond is committed to formulating comprehensive corporate governance regulations and management processes, and continuously monitoring and improving processes. With the efforts of all colleagues, Winbond has been ranked in the top 20% since the first TWSE Corporate Governance Evaluation. Moving forward, we will continue to embrace a corporate culture founded on business integrity, establishing a trustworthy and reputable company.
Renewable energy investment
955
million
International Voluntary Carbon Credits
13500
tons of CO2e
Integrity and ethics education and training for all directors and employees
100
%
Productivity and Business Performance
Productivity Performance
Productivity and operational performance are critical factors for continuous growth and enhanced competitiveness. By improving productivity, costs can be reduced, waste minimized, and revenue expanded, ultimately leading to increased profitability and operational efficiency.
In 2023, Winbond successfully completed 35 digital transformation initiatives and training sessions, surpassing the initial target of 24. These activities aimed to enhance employees’ understanding and application of digital tools and processes, thereby improving overall work efficiency and productivity. As part of the short-term goals, Winbond plans to accomplish at least 72 digital transformation initiatives and training sessions between 2023 and 2025, laying a solid foundation for digital transformation and productivity enhancement.
Additionally, in 2023, Winbond achieved the optimization of the AP Request Portal, which was part of the Productivity Tracking System. Through this systematic approach, Winbond effectively tracks and manages productivity improvements across various departments resulting from IT system development. With ongoing enhancements to the productivity tracking system, the company has set a short-term goal to complete the system by 2025. Looking ahead, the company’s medium, and long-term objective for 2030 is to achieve 100% employee participation in digital transformation and further enhance Winbond’s productivity and stable profitability through continuous innovation and internal management optimization.
Economic Performance
In 2023, Winbond’s consolidated revenue amounted to NT$75 billion, a decrease of 20.65% from 2022; our consolidated net earnings after tax reached NT$34 million, and our after-tax EPS was negative NT$0.29. For more explanation and analysis of financial performance, please refer to Winbond’s 2023 Annual Report.
2023 Consolidated Financial Performance
Unit: NT$ Million
Item | 2021 | 2022 | 2023 |
|---|---|---|---|
| Operating Revenue | 99,570 | 94,530 | 75,006 |
| Non-operating Revenue (expense) | (205) | 1,512 | 933 |
| Direct Economic Value [A] | 99,365 | 96,042 | 75,939 |
| Operating cost | 57,089 | 51,479 | 52,610 |
| Employee Remuneration and Benefit Expenses (Personnel expenses) | 17,325 | 19,706 | 16,775 |
| Payments to Investors | 1,324 | 5,506 | 6,492 |
| Payments to the Government | 274 | 3,799 | 974 |
| Community Investment | 6 | 7 | 7 |
| Direct Economic Value Distributed [B] | 76,018 | 80,497 | 76,858 |
| Residual Economic Value [A-B] | 23,347 | 15,545 | (919) |
| Net Profit Before Tax | 18,223 | 18,046 | (698) |
| Net Profit | 15,000 | 14,987 | 34 |
| Earning/Loss per Share [attributable to the parent company] (NT$) | 3.42 | 3.25 | (0.29) |
Sales Distribution and Product Categories and Revenue Ratios of Winbond Group's Applications in 2 Years
| Item | Asia | Europe | America | Others |
|---|---|---|---|---|
| 2023 Sales Ratio (100%) | 92% | 5% | 3% | -- |
| 2022 Sales Ratio (100%) | 90% | 4% | 6% | -- |
| Item | Dynamic Random Access Memory (DRAM) Products | Flash Memory Products | Logic Products | Others |
|---|---|---|---|---|
| 2023 Sales Ratio (100%) | 19% | 32% | 46% | 3% |
| 2022 Sales Ratio (100%) | 23% | 32% | 44% | 1% |
Tax Management
Winbond has established a unit responsible for tax governance, comply with the local tax regulations to handle various tax declarations. Winbond also supports government policies aimed at promoting corporate innovation, research and development, and tax incentives
In response to the global anti-tax avoidance trend led by the OECD, Winbond ensures information transparency. Apart from timely completing transfer pricing documentation for headquarter and subsidiary companies, also regularly discloses tax information in financial reports and annual reports. On the tax fairness front, in addition to completing local
tax declarations for headquarter and subsidiary companies within the deadlines, we also engage independent thirdparty professional consultants to ensure tax compliance across the group's various countries. Furthermore, Winbond monitors the list of non-cooperative tax jurisdictions released by EU, and evaluate investment structures then chose to liquidates some Controlled Foreign Companies (CFCs).
| ❶ Comply with the local tax laws, report tax returns honestly, pay taxes on time, and fulfill our social responsibilities as taxpayers. |
| ❷ Local and international tax reforms are thoroughly assessed to determine the impact and develop a swift response. |
| ❸ Tax information is regularly disclosed in the financial statements and annual report to ensure information transparency. |
| ❹ Transactions between affiliated enterprises are based on the Arm’ s Length Principle, comply with the internationally accepted Transfer Pricing Guidelines defined by the Organization for Economic Cooperation and Development (OECD). |
| ❺ Winbond has built a relationship based on mutual trust and honest communications with the tax authorities. |
| ❻ All material transactions and decisions made by the company take the effect of tax and leases into account. |
| ❼ Do not transfer profits to low-tax countries or regions. |
2023 The Distribution Of Tax Payments by the Group
(Unit: NT$ Million)
| Company | Income Tax Paid | % | Income Tax Payable | % |
|---|---|---|---|---|
華邦 | 589 | 40.10% | 475 | 59.01% |
新唐 | 355 | 24.00% | 239 | 30.00% |
海外子公司 | 525 | 35.90% | 91 | 10.99% |
合計 | 1,469 | 100.00% | 805 | 100.00% |
Distribution of Group Tax Payments in 2023 : Winbond Group paid a total of NT$1.469 billion in income tax in 2023, accounting for approximately 1.96% of consolidated operating revenue.
Tax Reduction and Credit
In 2023, Winbond and Nuvoton completed and filed FY2022 Taiwan corporate income tax, and applied for tax credit totaling NT$735,851 thousand under Article 10 of the Statute for Industrial Innovation for research and development expenses and 5G smart machinery investment deductions. The tax filings of Winbond and Nuvoton through FY2022 have been assessed by tax authorities as of 2023.
Investment Grants, Research and Development Grants, and Other Related Subsidies
As of the end of 2023, Winbond obtained government-subsidized loans under the “Welcome Taiwanese Businesses Back to Invest in Taiwan Action Plan” amounting to NT$5,131,600. After government grants, the interest rates ranged from 1.25% to 1.45%. These funds were used for the purchase of machinery and equipment as well as working capital turnover. The loan will be repaid in installments over a seven-year period. For more information, please refer to page 60 of Winbond 2023 Consolidated Financial Statement (Report).
(NOTE: The Large Leads Small supply chain project did not receive any grants in the fiscal year 2023.)
Investing in Taiwan
Winbond’s headquarters and the first Fab were established in the Central Taiwan Science Park. Echoing the programs for investing in Taiwan, in 2020, we applied for the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan” for the first time to increase investment in the Central Taiwan Science Park (CTSP) Fab to expand production capacity and upgrade technology, implement intelligent automation equipment and provide high value-added products. Construction of Winbond’s second Fab was completed in the Kaohsiung Science Park in 2022. In March 2023, Winbond was granted the second approval of the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan”, which was binding to the sustainability-linked loan contract signed in April 2023. The funds will be used to expand the production capacity of the Kaohsiung Fab and the CTSP Fab, upgrade advanced manufacturing process, purchase advanced equipment and develop our own innovative technologies to cope with the long-term growth trend of the memory industry. The Kaohsiung Fab will continue to recruit employees and encourage local talents born in southern Taiwan to return to their hometown to work. In addition to gathering semiconductor supply chain in the Kaohsiung area, we will further implement the concept of investing in Taiwan.