Looking back on the pivotal events of 2022, it became evident that the global movement towards decarbonization had gained significant momentum as a response to the pressing challenges of climate change confronting the world. Simultaneously, a growing awareness of human rights and an escalating demand for green-collar experts were driving positive change across various industries. Issues pertaining to corporate fairness, justice, and employee rights were increasingly capturing public attention day by day. Meanwhile, as we move into 2023, the market is facing additional hurdles with the impact of war and inflation leading to fluctuations. Companies endeavor to displaye resilience, proactively addressing risks and challenges with efficiency and effectiveness. Their ability to delivering sophisticated solutions and adeptly meet clients' expectations was critical in turbulent times.
Winbond actively participated in the Taiwan Climate Partnership (TCP) and has served as a board member in its inaugural term. Also, with the dedicated ESG department established, we continuously monitor domestic and international Environmental Social and Governance (ESG) trends and regulatory policies, laying a solid foundation to plan and execute our ESG strategy projects. In addition, Winbond commits to enhancing its core technological competitiveness to differentiate from competitors, including R&D innovation, and zero-defect quality; integrates such elevations into our development pathway; and upholds our corporate vision“Be a hidden champion in providing sustainable semiconductors to enrich human life.” There will be a myriad of challenges ahead waiting for us in the future, however, Winbond shall advance with confidence toward its goal and meet stakeholders’ demands and expectations.
E/Green Innovation and Development
To implement carbon management systems, Winbond has utilized digital tools to analyze and achieve carbon reduction. In 2022, Winbond collaborated with Microsoft to establish the Carbon Emissions Information Platform, which accurately calculates the carbon emissions throughout each IC production process, prioritizing potential carbon reduction hotspots within product life cycle. For instance, GHG emissions can be reduced by implementing local scrubber equipment that supports in the treatment of exhaust gas during the manufacturing process. In terms of energy, Winbond has established dedicated departments responsible for green energy investment and renewable energy certificates purchase. With diligently R&D on smaller chips and enhancement design on product packaging, we can save materials, reduce testing time, and minimize power consumptions. Winbond commits to green manufacturing through advancing process technology, reducing production time, and implementing energy-saving measures. Winbond aims to complete ISO 14067 Product Carbon Footprint verification in 2023.
S/Talent Development and Social Impact
Talent is a crucial asset for businesses, and Winbond values human rights and embed such topic into our corporate management framework. In 2022, we saw a significant boost in the employment rate of people with disabilities at Winbond. Furthermore, our Central Taiwan Science Park (CTSP) fab attained a perfect score in the RBA VAP platinum certificate and completed human rights due diligence.
In terms of talent recruitment, Winbond has implemented industry-academia cooperation to collaborate with schools in nurturing students through programs such as industry expert courses, scholarships, and internship opportunities. Also, Winbond provides specialized assistances for international employees on relocation during on-board process, ensuring a hassle-free working environment. In recent years, Winbond has built an environment for lifelong learning and interdisciplinary practical engagement, through various licensed software and platforms installed, and development programs organized, encouraging employees to continuously improve their skills and apply their knowledge in their work.
Nowadays, the scope of work extends beyond livelihood considerations and also encompasses the pursuit of personal values. In 2022, Winbond organized the Hou-Feng Bike Path Adoption program, attracting over 300 employees and their families to participate; and host activities such as river cleanup and birdwatching in collaboration with the Society of Wilderness. Winbond wishes to reinforce employees' self-worth, promote family harmony, create a joyful working dynamic, and contribute to society via collective efforts through diverse social engagement opportunities.
G/Excellent R&D to Meet Market Demands
To strengthen operational stability through risk management, Winbond has established a centralized risk management organization responsible for coordinating research on regulations, response measures, and supporting risk management across subsidiaries. Risk management units have been established within each department to address the challenges of regulatory and risk differences around the globe. For example, Risk Management Committee is instituted under the Board of Directors, along with and ESG Committee, all units monitor risks collaboratively, ensuring better resource utilization and responses lead time.
To mitigate the impact of climate change and energy transition (such as water and electricity shortages), Winbond has implemented corresponding measures, including securing long-term natural water sources, and a 45-thousand-ton underground on-site reservoir that can sustain Kaohsiung Fab’s operations for four months, under the government's Level 3 alert where 15% of water is rationing.
Winbond is committed to expanding product lines to address fast-changing markets realities. In addition to existing consumer products, Winbond has aggressively developed high-end products for industries such as automotive, industrial application, and medical care. Furthermore, Winbond pays close attention and actively responds to the demand of green products from customer, hence preserving strong customer relationship. Also, by leveraging data science technology, Winbond optimizes production scheduling, machine condition prediction, and improves factory management efficiency. Digital transformation has also been extensively applied across departments to enhance work efficiency, and this effort has yielded significant outcomes.