Stakeholder Engagement｜Materiality

Materiality Analysis Process

Winbond adopts the Global Sustainability Standards Board’s universal standard GRI 3: Material Topics (GRI 3: Material Topics 2021) to conduct materiality analysis. Winbond defines its material topic assessment principles as: “Highly concerned by stakeholders, significant impact on company operations, and prioritized in Winbond’s sustainability management goals.” To align with the spirit of material topic management, similar topics are consolidated, resulting in nine key material topics.

Winbond reviews material topics and related items annually to track trends and changes in long-term goals. We maintain transparent and open communication with stakeholders to ensure smooth dialogue and stay informed about sustainability issues of concern.

Identifying Material Topics

Winbond identifies material topics based on the following principles: “High concern from stakeholders,” “Significant impact on company operations,” and “Priority in corporate sustainability development.”

Aspect	Sustainability Issue	Assessment Principles			Material Topic
Aspect	Sustainability Issue	High Stakeholder Concern	Significant Impact on Operations	Priority in Sustainability Goals	Material Topic
Governance (G)	Integrity Management and Corporate Governance				Integrity Management and Corporate Governance
	Regulatory Compliance				Integrity Management and Corporate Governance
	Risk Management				Risk Management
	Information Security and Personal Data Protection
	Supply Chain Management
	Research and Innovation				Research and Innovation
	Productivity and Business Performance				Productivity and Business Performance
	Customer Relationship Management				Green Products
Environment (E)	Green Products and Services				Green Products
	Energy and Greenhouse Gas Management				Energy and Greenhouse Gas Management
	Climate-related Risks and Opportunities				(Risk Management)
	Waste Management
	Water Resource Management				Water Resource Management
	Air Pollution Control
	Biodiversity
Social (S)	Compensation, Benefits, and Employee Care				Talent Management
	Talent Recruitment and Development
	Human Rights and Equality
	Labor Relations
	Occupational Safety and Health
	Social Engagement

Material issue for external stakeholders

Material issue for external stakeholders	Risk Management	Energy and Greenhouse Gas Management
Business activity coverage	>50% of business activity	>50% of business activity
External stakeholder(s) / impact area(s) evaluated	Positive Impact: The Company implements an enterprise risk management framework covering operational, supply chain, information security, and climate-related risks. Effective risk identification and mitigation enhance business continuity, protect customer interests, ensure stable supply chain operations, and strengthen stakeholder confidence in long-term business resilience. Negative Impact: Insufficient risk management may result in operational disruption, cyber security incidents, supply chain interruptions, financial losses, and regulatory non-compliance. Such events could negatively affect customers, suppliers, communities, and other stakeholders through service interruptions or information security breaches.	Positive Impact: The Company improves energy efficiency, promotes greenhouse gas reduction initiatives, and gradually increases renewable energy usage. These actions contribute to climate change mitigation, reduce environmental impacts across operations, and create long-term value for customers, investors, and society. Negative Impact: Inefficient energy consumption and excessive greenhouse gas emissions may contribute to climate change, increase regulatory and carbon-related costs, and negatively affect communities and ecosystems through higher environmental impacts and resource consumption.
Output Metric	Promotion of sustainable due diligence and guidance among suppliers	Decrease in Energy Consumption per Unit of Product
Impact Valuation	Suppliers' governance performance associated with operations	Reduced climate impact from operations
Impact Metric	Number of cases where suppliers were penalized by the government	Avoided GHG emissions (tCO2e)

Materiality Analysis Results

Winbond conducts materiality analysis to identify issues that significantly impact operations and to address stakeholders’ concerns and expectations regarding ESG topics. We prioritize areas where Winbond can create the greatest positive impact.

For more details, please refer to the “Materiality Analysis Report” and the “Leading Forward” section in the latest annual Sustainability Report under “Key Issues and Stakeholder Engagement Practices.”

2025 Winbond Materiality Analysis Report 2024 Sustainability Report – Leading Forward Section 2022 Materiality Analysis Report

Potential Risks and Mitigation Measures for Material Topics

In today’s rapidly changing global environment, businesses face diverse and complex challenges. To ensure sustainable development and operational stability, Winbond identifies risks and plans mitigation measures for material topics of concern to stakeholders. We strive to enhance organizational resilience, strengthen compliance awareness, drive technological innovation, and respond to customer and societal expectations for sustainability.

Material Topic	Potential Risks	Risk Mitigation and Response
Integrity Management and Corporate Governance	Incidents of non-compliance with integrity or governance leading to customer loss and reduced investment Weak internal control mechanisms resulting in fraud or cybersecurity risks Insufficient regulatory awareness among employees causing violations	Establish the “Code of Integrity Management” and conduct regular training and internal audits Implement a three-line defense risk management framework, introduce audit and risk reporting systems, and set up a whistleblower mechanism Continue compliance and integrity training to enhance regulatory awareness and adherence
Risk Management	Cyberattacks leading to data breaches Environmental and climate risks causing service disruptions	Establish an information security management system to strengthen resilience, provide company-wide training, and improve incident reporting and response Formulate “Risk Management Policies and Procedures” and report regularly to management and governance units to ensure all risk control objectives are met
Research and Innovation	Delays in technology development or failure to align with market trends Insufficient patent portfolio reducing protection strength	Pursue sustainable innovation in green semiconductor design and products to meet next-generation market trends Establish an intellectual property management system and patent committee to enhance patent quality and protection
Productivity and Business Performance	Employee transformation and skill gaps impacting efficiency and operational stability	Strengthen employee training on digital transformation to improve understanding and application of digital tools and processes
Green Products	Failure to meet customer demand for energy-saving and low-carbon products Product quality and environmental performance not meeting standards	Continue investing in R&D to enhance product differentiation and customization, and collaborate with customers on new applications Implement international standards such as hazardous substance management systems and establish cross-functional teams to control manufacturing processes
Energy and Greenhouse Gas Management	Power supply disruptions due to outages or restrictions	Set Winbond’s RE50 green energy target for 2030 and continue sourcing diverse power supplies
Water Resource Management	Water supply shortages or interruptions Water pollution impacting the environment	Establish a “Water Efficiency Policy” and develop alternative water sources Invest in wastewater treatment technology and optimize monitoring to improve annual reduction of water pollution indicators
Talent Management	Inability to attract or retain top talent	Provide a high-quality work environment and competitive compensation and benefits Enhance employability through global recruitment and diverse internal training programs

Stakeholder Communication and Outcomes

Winbond refers to the AA1000 SES Stakeholder Engagement Standard (2015) and its five principles: Dependency, Responsibility, Influence, Tension/Concern, and Diverse Perspectives, to identify and rank the level of relationship with stakeholders.
In 2025, Winbond Group’s senior management completed a total of 44 stakeholder identification and assessment questionnaires. Each category of stakeholders was scored based on its level of influence (on a scale of 1 to 5). The assessment results were then ranked in descending order of influence.

On December 19, 2025, the communication status with stakeholders was reported to the 13th Board of Directors, 21st meeting.

Government Agencies

Customers

Employees

Shareholders / Investors

Media

Suppliers / Contractors

Community / Society

Focus on integrity management and regulatory compliance, as a key stakeholder influencing industry development and policy promotion.

Key Issues

Regulatory Compliance
Occupational Safety and Health
Human Rights and Equality
Labor Relations
Water Resource Management

Communication Channels and Frequency

Real-time:

Winbond Official Website
Internal Hotline 75234

Regular:

ESG Questionnaire (Annually)
Attend Science Park Association Quarterly Meetings

Occasional:

Policy Promotion and Regulatory Briefings
Regulatory Authority Inspections and Visits
Industry Standard Draft Consultation
Government-hosted Meetings / Forums / Seminars / Public Hearings

Customers are the primary source of economic value for Winbond and key stakeholders concerned about Winbond's ESG performance.

Key Issues

Regulatory Compliance
Customer Relationship Management
Supply Chain Management
Risk Management
Information Security and Personal Data Protection

Communication Channels and Frequency

Real-time:

Winbond Website, Phone, and Email

Occasional:

Customer Audits
Customer Engagement

Regular:

Business Meetings (Regular)
Technical Seminars (Annually)
Internal Audits (Annually)
ESG Questionnaire (Annually)

Employees are one of Winbond's most important assets and key stakeholders driving continuous innovation.

Key Issues

Regulatory Compliance
Information Security and Personal Data Protection
Occupational Safety and Health
Human Rights and Equality
Integrity Management and Corporate Governance

Communication Channels and Frequency

Real-time:

Internal Hotline 75234
Care Complaint System
Employee Feedback Box
Employee Grievance Committee
Health Consultation

Occasional:

Health Care Activities
Employee Welfare Committee
Internal Website Bulletin Board

Regular:

Functional Communication Meetings (Regular)
Company Philosophy Articles on Employee Homepage (Weekly)
Safety Monthly Meetings
Labor-Management and Supervisor Communication Meetings (Quarterly)
Environmental Safety Committee (Quarterly)
Health, Stress, and Pain Surveys (Annually)
ESG Questionnaire (Annually)
Core Values and Engagement Survey (Every Two Years)
Human Rights Due Diligence (Every Three Years)

Shareholders and investors are Winbond's main source of capital and key stakeholders concerned about operational performance and sustainability.

Key Issues

Regulatory Compliance
Integrity Management and Corporate Governance
Occupational Safety and Health
Information Security and Personal Data Protection
Risk Management

Communication Channels and Frequency

Real-time:

Phone and Email

Regular:

Investor Conference (Quarterly, with additional sessions as needed)
One-on-One Investor Meetings (12-15 times per quarter)
Brokerage Investment Forums (2-3 times per quarter)
Annual Shareholders' Meeting

Occasional:

Winbond Official Website
Taiwan Stock Exchange Market Observation Post System

Media acts as a bridge between Winbond and stakeholders, ensuring timely access to information and supporting positive sustainability disclosure.

Key Issues

Integrity Management and Corporate Governance
Productivity and Operational Performance
Research and Innovation
Regulatory Compliance
Supply Chain Management

Communication Channels and Frequency

Real-time:

Phone and Email

Regular:

Press Releases (Regular)
Media Interviews (Annually)
ESG Questionnaire (Annually)

Suppliers and contractors provide essential materials and services for Winbond's operations and are key partners in achieving sustainable development.

Key Issues

Information System Security Management and Personal Data Protection
Occupational Safety and Health
Human Rights and Equality
Ethical Business Practices and Corporate Governance

Communication Channels and Frequency

Real-time:

Volunteering Activities
Supplier Whistleblowing Channel
Supplier ESG Interactive Platform

Regular:

Ethical Conduct Policy Promotion (Semi-Annually)
Sustainability Evaluation of Key Suppliers (Semi-Annually)
Supplier Sustainability Audit (Annually)
Supplier Sustainability Due Diligence (Annually)

Community located near Winbond's operational sites, most significantly impacted by Winbond’s operations and regarded as key stakeholders of concern to Winbond.

Key Issues

Regulatory Compliance
Occupational Safety and Health
Regulatory Compliance
Social Engagement
Human Rights and Equality
Climate-related Risks and Opportunities

Communication Channels and Frequency

Real-time:

Volunteering Activities
Project Collaboration and Visit