01

04

About This Report

Sustainable Operation Deployment

02

A Letter from the President

06

A Letter from the Chief Operating Officer

05

07

23

Intellectual Property Rights Protection and Preservation
Green Breakthroughs

Foreword

07

Innovation for a Sustainable Future30

27

Viewpoint – Driving Sustainability Transformation with Digital GovernanceOperational Performance 49

36

Climate Strategies—TCFD 53
Information Security

60

Product Quality Management

64

Sustainable Supply Chain Management

03

About ASPEED Technology
About ASPEED Technology

2022 ESG Performance 16

09

ASPEED Sustainability Policies and Blueprint

17

06

67

Shared Social Prosperity
Viewpoint – Talent Sustainability and Industry Development
Employee Composition 72
Talent Development
Employee Care

79

76

Social Participation 86

Viewpoint – Carbon Management and Low Carbon Action 91
Environmental Management92

GHG and Energy Resource Management

Corporate GovernanceCorporate Governance and Ethical Corporate Management

Green Operations

71

35

08

Appendix

Materiality Analysis 102
GRI Standard Index 105
SASB Index 110
Report Adjustments 11195

01
About This Report

Foreword

About This Report

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix3About This Report

Letter from the Editor

describes ASPEED Technology’s sustainability achievements and results to interested stakeholders.

Welcome to the Sustainability Report of ASPEED Technology Inc. (or “ASPEED Technology”). The report covers
corporate governance, environmental, and social sustainability pledges and actions. Through open andtransparent information disclosures, it shows members of the general public and stakeholders the hard workand achievements of ASPEED Technology in the area of sustainability.

Report Management Methods
Company department supervisors approved information used in the report. The Sustainability Committee thenorganized and compiled the information into draft form. Reviews conducted in accordance with administrative
procedures concluded with approval by the company president, followed by publishing of the ﬁnal report.

Report Disclosure Period
The report features information from 2022 (January 1st to December 31st, 2022) and was both published andannounced on the ASPEED Technology website in June 2023. ASPEED Technology will compile and publish

Publishing Information

the Sustainability Report annually, content covers specific practices and achievements relating to corporate

Report disclosure period

January 1st to December 31st, 2022

governance, environmental, and social material topics of concern for stakeholders.

Report publishing cycle

Once per year

Current report publishing period

June 2023

Next report publishing period

Scheduled for June 2024

Report Scope
Information in the report primarily covers ASPEED Technology’s sustainable operation achievements in
Taiwan; it does not include information relating to the Company’s branch office in the United States.
Financial data follow International Financial Reporting Standards (IFRS), which are accepted by the・The key visual of the 2022 Sustainability Report was created using the midjourney system mega plan
subscription, and in accordance with the midjourney terms of use.

Financial Supervisory Commission, and were audited by Deloitte. All monetary data are expressed in New
Taiwan Dollars.

Contact Information

Compilation Principles
The report was prepared in accordance with the latest 2021 Core Option of the Global Reporting Initiative
Standards (GRI Standards) and Sustainability Accounting Standards Board (SASB), includes a GRI Standards
and a SASB comparison table that shows which chapters contain related information. Also taken into
consideration when preparing the report were the Taiwan Stock Exchange Corporation“Rules Governing
the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies” and the“Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies.” The report

For any advice or recommendations relating to the content of this report, please contact ASPEED
Technology through the following channels: ASPEED Technology Inc. Sustainability Committee
Address: 4-1 Fl., No. 1, Sec. 3, Gongdao 5th Rd. East District, Hsinchu City, 300
Tel: +886-3-5751185
Email: csr@aspeedtech.com
Website: www.aspeedtech.com
ASPEED Technology Website

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix4

02

Foreword
A Letter from the President 6

A Letter from the Chief Operating Officer 7

A Letter fromthe President

2022 was full of challenges and opportunities. Thanks to our strong corporate resilience,

to maintain ASPEED Technology as a model of corporate excellence with integrity and honesty.

flexible market insights and robust customer relationships, we have achieved a new

In 2022, voluntarily adopted the Task Force on Climate-related Financial Disclosures (TCFD)

record of 18 consecutive years of growth since our inception, with an increase in annual

recommendations to identify the risks and opportunities posed by climate change and disclosed

operating revenue and net profit after tax by 43.23% and 60.38%, respectively. Looking

the results in its annual sustainability report. In respect of “environment”, our design capabilities

ahead, ASPEED will focus on strengthening corporate resilience to reduce risks andhave contributed to green energy conservation as our software and hardware have improved theimprove corporate governance, constantly investing in green research and We are

power-saving performance of our main SoC products, which demonstrate our dedication to thecommitted to nurturing and retaining talents in the IC design industry, stiving to become

development of the low-carbon semiconductor industry. Apart from on-going GHG inventories,

a contributor and creator of “technological civilization”.

we will also reduce GHG emissions in the semiconductor supply chain through SBTi sciencebased carbon reduction targets and renewable energy procurement to move towards net zero. In

Ever since its inception, ASPEED has been focusing on the niche market in the SoC field.
BMC SoC, our core products, are expanded in various aspects to fit into the future
trends and demands. We have deepened our core technologies to create a platform forrespect of “social participation”, ASPEED places a high priority on sharing the achievements with its
employees, with an emphasis on the cultivation of outstanding semiconductor talents and internalretention of talents. We pay constant efforts in building a diverse and inclusive workplace.

comprehensive development, integrating and developing into two major product lines:
Cloud & Enterprise Solutions and Smart AV Solutions. In respect of Smart AV Solutions,

Corporate sustainability is a journey that requires a lasting commitment. As ASPEED Technology

we have incorporated sustainable development into our new product applications,grows year by year, we realize that the only way for constant expansions and breakthroughs isand are moving towards multi-angle development such as unmanned inspection of

to keep pushing ourselves forward and maintain our corporate resilience. Approaching the 19th

smart factories, smart cities, virtual education, virtual entertainment, and even Digital

year of establishment, ASPEED Technology will continue to shoulder its responsibilities in theTwin. In the future, ASPEED will continue to invest in R&D resources to expand its core

semiconductor industry chain. We will provide full disclosure of our work on ESG every year, and wetechnologies, develop new applications and extend its application scenarios withwish ASPEED Technology further success on its journey to sustainability.

enhanced sustainability concepts.
Since the release of the first Sustainability Report and the establishment of Sustainability
Committee in 2020, we budget annually for ESG development, and conduct regularreview on ASPEED’s sustainability strategies and short-to-medium term plans, making
adjustments as needed and carrying out specific strategies and programs to promotesustainability. Our ESG is developing in the three directions of strengthening corporate
resilience, focusing on green energy-saving core technologies, and sustainable talents
in Taiwan: In respect of “corporate governance”, we build a complete sustainable
governance framework and system, and optimize our organizational management

About This Report

Foreword

By enhancing energy-saving R&D through coretechnology, cultivating sustainable technology
talent in Taiwan and establishing robust
corporate governance to foster social inclusion
and benefit sharing, ASPEED aims to strengthen
its corporate resilience and move towards thenext stage of sustainable growth.

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

ASPEED Technology
Chairman and President

Shared Social
Prosperity

Green
Operations

Appendix

6

A Letter from the Chief
Operating Officer

The changes and challenges in the semiconductor industry over the past year have

Apart from business operations, ASPEED also considers the concept of sustainability inmade us realize that only with strengthened resilience and sustainable development

developing new product applications and strategic planning so as to stimulate the creation

can our operations move forward without being affected by market changes. For

of more new application scenarios. The applications of our self-developed 360-degree image

ASPEED Technology, sustainable development means not only our commitment to thestitching SoC, the video conferencing applications created during the pandemic and the latest

social environment, but also a momentum for our continuous growth. We integrate

immersive experience cover smart factory inspection and audit, unmanned scenario patrol,

ESG practice into our daily operations and adhere to the Company’s sustainability

smart city construction and management. In particular, the application of immersive smart

goals. Featuring the approaches which I set out when joining ASPEED in 2022,

factory enables us to develop brand new applications with 3D modeling technology and AR/

we blend in the concept of sustainability in our daily operations from a business

VR immersive technology. In joint efforts with cooperative partners, we aim at the successful

perspective. We remain focused on sustainable supply chain management, digital

upgrade and innovation of smart factories. Leveraging the immersive experience and thetransformation and information security enhancement as well as low-carbon green

advantages of virtual reality, we can achieve remote virtual inspection and maintenance of

operations, systematically developing towards the set management strategies andproduction lines, and an increase in the efficiency of mobility and management, thus creating

carrying out review and adjustment on a regular basis.

an automated and unmanned brand new experience and coverage for futuristic smart
factories.

As a fabless IC design company, ASPEED must work more actively towards a
responsible supply chain, which is demonstrated by not only our selection of qualified

Looking ahead, in adherence to the aspiration of “Innovation Without Boundaries”, ASPEED

suppliers, but also the exertion of our influence to help them working with ASPEED

will be consistent in the sustainability strategies set out by the Company. In pursuit ofin building a green and sustainable semiconductor supply chain. There will also bebusiness performance, we will remain committed to sustainable development with the use of

constant addition of sustainability indicators into the annual supplier evaluations

core technologies to enhance green and power-saving R&D. We work constantly on digital

following the Responsible Business Alliance (RBA), including green environment,

transformation, in-depth cultivation of sustainable talents and promotion of an inclusive

human rights protection, and green manufacturing. In the future, ASPEED will develop

workforce, as a continuation of the achievements of ASPEED over the past 18 years to strive fortowards Fabless Lite 2.0, where sustainable supply chain management will play a

corporate sustainability.

more important role. After one year of implementation, the digital transformation
project has reached the initial stage of digitization of production operation anddigital management of supply chain. The next stage of development will be towards
data management and data analysis to enhance the value of business management
comprehensively. In respect of low-carbon green operations, the Board of Directors
has passed the carbon management program in 2022 for us to achieve a goal of net
zero carbon emissions. Besides, energy conservation and carbon reduction will be
implemented through daily measures and continuous promotion to employees.

About This Report

Foreword

Only with strengthened resilience andsustainable development can our operations
move forward without being affected bymarket changes.

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

ASPEED Technology
Chief Operating Officer

Shared Social
Prosperity

Green
Operations

Appendix7

03

About ASPEED Technology
About ASPEED Technology 92022 ESG Performance 16

ASPEED Sustainability Policies and Blueprint 17

About ASPEED
Technology

Company Introduction

Operational Philosophy

ASPEED Technology Inc. is a leading fabless IC design company and a top pioneer of SoC (System on

Upholding an operational philosophy that includes humanistic management, respect for worker autonomy,Chip) solutions, provides high quality technique and service. ASPEED Technology is devoted to developing

and promotion of innovative R&D together with teamwork, ASPEED Technology succeeds in satisfying

proprietary innovative technologies that quickly respond to customer needs. ASPEED Technology’s R&D areas

customer needs to become a long-term cooperative partner that customers trust. Looking ahead, ASPEED

include two major product lines: Cloud & Enterprise Solutions and Smart AV Solutions. Cloud & EnterpriseTechnology will continue to demonstrate our core technological advantages while providing suitable

Solutions include BMC SoC, Bridge IC and Platform Firmware Resilience IC; while Smart AV Solutions include

products for clients and consumers. With high quality services and technologies, we will further realize our

AVoIP Extension SoC, Cupola360 Multi-Image Stitching SoC and Cupola360+ related software.

mission of providing global enterprises and public with outstanding technology and become the creator ofForbes included ASPEED Technology on its Asia’s 200 Best Under a Billion list for ninth consecutive years

technological civilization.

from 2014, underscoring how we are a partner worthy of our customers’ confidence. In 2022, we wereselected by Taiwan Institute of Directors Corporate Development Research Center (CDRC) as Taiwan Bestin-Class 100. In 2016, ASPEED Technology announced the acquisition of Broadcom’s Emulex Pilot™ BMC SoC
business. In 2018, we officially released the Cupola360 Multi-Image Stitching Processing SoC and software
solution, which expanded our product lines into images and graphics.

| Vision |Be a leading SoC
solution provider

Operating Base

| Mission || Philosophy |Enable people andbusinesses worldwide
to enjoy technology atits best

Innovation
without
boundaries

Main Customers
End Customers

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

9

ASPEED Technology’s Role in the Semiconductor Industry Chain

General Information

Taiwan’s semiconductor industry has a fully developed system, with leading manufacturers together

Company NameASPEED Technology Inc.

Date of Establishment

November 15th, 2004

Business ID number

27490748

OTC Market Listing

April 30th, 2013 (ticker: 5274)

Headquarters Location

4-1 Fl., No. 1, Sec. 3, Gongdao 5th Rd., East District, Hsinchu City

Capitalization

NTD378 million

Revenues

NTD5.210 billion (2022)

Industry

Semiconductors

composing a vertical division of labor that promotes specialized development. The semiconductor industry
can generally be divided into upstream IC design firms, midstream IC wafer manufacturers, and downstream
IC packaging and testing firms. Ever since its inception, ASPEED Technology is clearly positioned as an
upstream fabless IC design company that specializes in high-end IC design. Large-scale foundries as well as
testing and packaging firms manufacture ASPEED Technology’s IC designs. ASPEED Technology then markets
play a key role in the cloud server industry and have a global customer base. The remote management of
product applications and the low power consumption of the products will help customers’ data centersreduce power consumption and carbon emissions, creating value for the semiconductor supply chain in linewith today's low carbon trend. In response to the changing industry chain and market, ASPEED Technology
started to transform its Fabless Lite 2.0 model gradually from 2022; in addition to IC design, we will further

Employees

106

Main Products
and Services

Multimedia IC, computer peripheral IC, ICs for high-end
consumer electronics

About This Reportand sells the finished IC products to domestic and foreign customers. BMC, the main products of ASPEED,

coordinate our own IC packaging and testing services to provide a more flexible operation model to face

Foreword

About ASPEED
Technology

the highly changing semiconductor industry.

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix10Main Products and Services
ASPEED Technology specializes in SoC design, a niche market with high gross profits. By combining our R&D
advantages with strengths in both hardware and software, we provide innovative, differentiated products thathave a high value for our customers.

Main Products and Services

Cloud &
Enterprise
Solutions

Smart AV
Solutions

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

BMC SoC

Applications include remote monitoring and host system management,such as server motherboard management controllers, server backplane
controllers, server graphics chips, as well as remote network keyboard,mouse, and monitor controllers

Bridge IC

A small dedicated processor with built-in memory and storage space, pairedwith BMC under the Open Compute Project (OCP) architecture to extend
the monitoring and management of BMC

PFR SoC

PFR (Platform Firmware Resilience) SoC provides enterprise platform firmware
security and comprehensive protection against attacks

AVoIP
Extension
SoC

Applications include professional integrated AV, remote personal computerextensions, remote AV extensions, remote USB extensions, AVoIP matrix
switchers, TV walls, and digital signage

Cupola360
Multi-Image
Stitching SoC

Applications include 360-degree video conferencing systems, consumer
cameras, immersive experience as well as smart factory and patrolling
applications

Software Services
and Digital
Mobile Apps

Cupola360 multi-image stitching and smart application-related software
services and digital mobile apps

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix11

Management TeamMr. Chris Lin

Chairman and President

Mr. Chris Lin, the chairman and president of ASPEED Technology, has

Mr. CJ Hsieh, the chief operating officer of ASPEED Technology,

many years of experience in the SoC field. In 1993, as a member ofgraduated from University of Southern California with a Master’s degree

Silicon Integrated Systems (SiS), Lin built a multimedia products R&D

in Electrical Engineering. With nearly 30 years of experience in IC design

team. In May 2003, Lin led establishment of SiS spin-off XGI Technology

and semiconductor industries, Mr. Hsieh held senior management

Inc., where he was responsible for graphics chip development andpositions in global operations, procurement, R&D, and sales at various

served as general manager.Lin founded ASPEED Technology in 2004

companies. Prior to joining ASPEED Technology, Mr. Hsieh served as

and devoted the Company to BMC development. Lin was responsible

the general manager of Intel Innovation Technologies Limited, thefor all aspects of the business, including product planning, production,

global vice president of Lantiq, and the associate director of Faradaysales, and marketing. In 2016, Lin led the acquisition of Broadcom’s

Technology. Besides his role as the chief operating officer of ASPEED

Emulex Pilot™ BMC SoC business, which turned ASPEED Technology into

Technology, Mr. Hsieh is co-chairman of the TEST Committee, SEMICJ Hsieh

the world’s largest supplier of BMC SoC. In 2020 & 2021, National Yang
Ming Chiao Tung University recognized Lin as a distinguished alumnus,

Chief Operating Officer

Taiwan, and the member of Advisory Committee of Taiwan International
Semiconductor Executive Summit, TISES. In 2022, Mr. CJ Hsieh was also

and he was also honored with the Outstanding ICT Elite Award in 2021.

recognized by SEMI with the Industry Contribution Award.

Mr. Luke Chen, a graduate of the EMBA program at National Chengchi

Mr. Hung-Ju Huang, a graduate of the Electrical Engineering Master ofUniversity, previously was an assistant vice president of marketing at

Science at National Cheng Kung University, has extensive experience

SiS and a deputy general manager of marketing at NITS Technology Inc.

in hardware R&D, one of the founding members of ASPEED Technology.

Chen has a strong academic and professional background in product

Huang previously was a senior R&D manager at SiS and an assistantmarketing and business development, which aids his present duties asvice president of R&D at XGI Technology Inc. He was the vice president

the vice president of sales at ASPEED Technology.

of R&D at ASPEED Technology. Huang has demonstrated success inresearch and development. Having reached the retirement age, heresigned as the vice president of R&D in August 2022 and continued toserve as an R&D consultant.

Luke Chen

Hung-Ju Huang

Vice President of Sales

Vice President of R&D

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

12

Company Milestones
The Ministry of Economic Affairs approved the establishment of ASPEED Technology inHsinchu Science Park, Taiwan on November 15th, 2004. For more information on ASPEED
Technology’s milestones, please visit:

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

13

Recognition
and Honors in
Recent Years

The hard work and confidence of partners inside and outside the company led ASPEED Technology to be
ranked 37th in the sales growth category of the 2008 Deloitte Asia Pacific Technology Fast 500 in just our
fourth year of business. In 2009, our AST1500 BMC SoC won a Best Choice of COMPUTEX TAIPEI 2009 Award.
In 2018, ASPEED Technology’s operation performance ranked the 21st in the top 5000 firms by China Credit
Information Service Ltd. Forbes included us on its Asia’s 200 Best Under a Billion list for ninth consecutive
years since 2014. We demonstrate strong corporate resilience amid a volatile economic environment. In
2021, Financial Times and Nikkei Asia included us as one of the Asia Pacific High-Growth Companies. In
2022, we were selected by Taiwan Institute of Directors and Business Development and Research Center as
Taiwan Best-in-Class 100. Our chairman, Mr. Chris Lin, was honored with the Outstanding ICT Elite Awarddue to this contribution in IT industry. Our Chief Operating Officer, Mr. CJ Hsieh, was recognized by SEMI
with the Industry Contribution Award. In the future, we will continue to aim for self-improvements as we
contribute to public welfare and social development.

*NYCU recognized Mr. Chris Lin as a distinguished alumnus.

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix14

Public Association Participation
Since its inception, ASPEED Technology has been actively participating in industry alliances in thesemiconductor industry or technology product areas to achieve a complementary effect within the industry.
In recent years, in view of the importance of sustainability issues and in response to the expectations of
our stakeholders and international customers, we have gradually begun to support sustainability-related

Organization Name

Participation Status

Role

Taipei Computer
Association

Joins annual exhibitions and other related events held by the
Taipei Computer Association. Also is an active participant inassociation affairs

MemberOpenBMC Alliance

Active participant in the Open Compute Project and open-source
BMC firmware. Continues to develop customer solutions thatwork across heterogeneous systems

MemberParticipates in annual summits and seminars organized by the OCP
to share and discuss the design and development of hardware
devices in the data center

MemberParticipates in Audiovisual and Integrated Experience Associationand the exhibition events organized by the Association

MemberParticipates in the technology industry-led Taiwan Climate
Partnership in response to stakeholders' requests for ASPEED
Technology's active involvement in climate issues; and todemonstrate the importance ASPEED Technology places on
climate change issues by actively involving in the seminars, forums,
and online courses organized by the PartnershipGroup member

Responds to the TCFD initiative, ofﬁcially signs to become a TCFD
Supporter

Supporter

alliances. In 2022, we participated in the Taiwan Climate Partnership established by industry leaders, andactively participated in seminars, forums, and online courses organized by the alliances to contribute togreen environment and climate issues.

OCP(Open Compute Project)

AVIXA (Audiovisual andIntegrated Experience
Association)

Taiwan Climate
Partnership

TCFD(Task Force on Climaterelated Financial
Disclosures)
Working Group

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix15

2022 ESG
Performance

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

16

ASPEED Sustainability
Policies and Blueprint

Operation and Objectives of Sustainability Committee

Board of Directors

As a Fabless IC design company, ASPEED Technology recognizes the importance of pursuing sustainable
development as we continue to make profits. In 2020, we established a CSR Working Team and converted it
into the Sustainability Committee under the Board of Directors in 2021 as a key decision maker for ASPEED’ssustainable development. The committee is headed by the vice president of sales who convenes and chairs

Sustainability
Committee

Executive Committee

Sustainability
Development
Working Team

Head of Committee

meetings of the Sustainability Committee. Under the committee will be the Sustainability Development Working
Team, which, in addition to regularly overseeing the performance of corporate sustainability-related activities,
is even responsible for incorporating sustainable development into the decision-making process for corporate
operations and important strategies, leading the five work teams of “Corporate Governance”, “Risk Management”,“Environmental Sustainability”, “Employee Relations” and “Social Participation” to coordinate the implementation ofeach aspect.
The Sustainability Development Working Team under ASPEED Technology’s Sustainability Committee is
responsible for gathering the concerns from various stakeholders and keeping abreast of the development
trends of domestic and foreign laws and policies. A meeting is held biannually for each work team to report on
their operation. We conduct regular review on ASPEED’s sustainability strategies and short-to-medium term plans

Corporate
Governance

Risk
Management

Environmental
Sustainability

Employee
RelationsSocialParticipation

Shareholder rights and interests
Board function
Company information transparency
Legal compliance
Ethical corporate management

Risk trend observations
Risk analysis and management
Risk response and tracking

Green products
Environmental protection
Supply chain sustainability
Energy and climate change

Human rights & Labor rights and interests
Workplace environment and safety
Employee care

Supporting higher education
Caring the rural underprivileged
Charity donation

Talent distribution and cultivation

to make adjustments as needed. A meeting was held in each of the first and second half of 2022, covering:
1. Report on the progress of the Sustainability Development Working Team.
2. In light of the domestic and international regulatory policy trends, a review on the sustainability strategies for2021 and adjustment on the three-year short-term goals.
3. Final Review of the 2021 Sustainability Report (Second Half Meeting). The Sustainability Committee reports to
the Board of Directors once in each of the first and second half of the year. On the board meeting in Marchand November 2022, the committee presented the sustainability strategies and objectives, performance ofannual sustainability projects, results of GHG inventories, implementation of TCFD projects, report on 2021

ASPEED ESG & Sustainability Development

Sustainability Report and ESG Summary and submission for approval, while at the same time commits to theBoard for its continued promotion and implementation of sustainability strategies and objectives.

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix17

Sustainability Strategies
ASPEED Technology uses core technologies to enhance green and power-saving R&D. By focusing on building a talented sustainable technology workforce in Taiwan, a robust system of corporate governance, and an inclusive society withshared benefits, we strengthen the corporate resilience of ASPEED Technology towards the next stage of sustainable growth.

Sustainability Blueprint
Strategic Development
Solidifying corporate governance and strengthening
corporate resilience

Governance・Building a complete corporate sustainable governanceframework and system
・Strengthening risk management strategies

Focusing on green energy-saving core technologies

Environment

・Regularly performing incoming GHG inventories andpassing third-party verification
・Power saving and carbon reduction, formulating carbon
reduction targets and actions
・Strengthening core R&D and improving power consumption
by chips

Building a talented sustainable technology workforce
in Taiwan

Social・Developing core values of sustainability and promoting
ESG for all employees
・Strengthening the cultivation of talents and seeking toadvance women in technology industry

About This Report

Achievements in 2022

Goals for 2023-2024

・Strengthening the structural diversity and supervisory obligations of the Board of Directors
・Promoting the whistleblower system
・Use the Task Force on Climate-related Financial Disclosure (TCFD) framework to evaluate
the impact of climate change on risk management and responses associated with corporate
governance, strategies, and financial risks
・Initiating the digital transformation program

・Completion of a third-party supervised whistleblower reporting system.
・Increasing the number of female board members in the 8th Board of Directors
to strengthen the diversified structure
・Considering linking ESG performance indicators to executives’ compensation
・Continuously promoting the second phase of the digital transformation program

・Joining Taiwan Climate Partnership and participating in various affairs
・Passing the ISO14064-1 :2018 GHG inventories at the organizational level・Responding to the Carbon Disclosure Project (CDP), the Responsible Business Alliance (RBA),
and other international initiatives and ratings

・Constantly conducting GHG inventories and expanding the scope of the
Scope 3 inventory
・Setting and applying for the SBTi SME scientific carbon reduction net zero goal・Strengthening R&D to improve energy consumption of 8th generation BMC chips
・Purchasing renewable energy

・Emphasizing diversity and equality in workplace, implementing corporate diversity andinclusion. Specifying the D&I policy in the work rules of employees
・Organizing workshops on sustainable talents, employees involvement in cultivating female
technology talents

・Creating compensation packages with market competitiveness and internal
equality・Organizing cultivation activities for female technology talents
・Planning a series of ESG courses to establish the sustainable awareness among all
ASPEED employees

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance* See the section of “Sustainable Operation Deployment” for details

Shared Social
Prosperity

Green
Operations

Appendix18

Identification of Material Topics
ASPEED Technology’s Sustainability Development Working Team uses qualitative and quantitative methods
to collect feedback from various stakeholders for sustainability issues analysis. The material topics become
an important basis for promoting sustainability strategies and objectives.
In response to the new GRI 2021 material topics, the Company will increase its focus on the actual andpotential negative and positive impacts on the environment, economy, and human rights from internal andexternal stakeholders. We also have long tracked and circularly managed various sustainability issues
from internal and external stakeholders. Starting from 2022, ASPEED adjusted the analysis process ofmaterial topics by updating the list of sustainability issues every three years and gathering the concerns
from external stakeholders. Each year, we collect internal feedback on the negative and positive impacts ofsustainability issues, taking into account the level of concern of internal and external stakeholders in order
to identify the material topics for the year.
ASPEED Technology has compiled a list of 20 sustainability issues of concern to stakeholders and conducteda negative and positive impact assessment for each issue. By considering the possibilities of occurrence andthe impact of the sustainability issue on the business, the impacts and possibilities of each sustainability
issue on ASPEED Technology (including stakeholders’ opinions) was evaluated. Based on the impact of
the Company’s own activities on the three aspects, i.e., external economy, environment, and society, we
also conducted an impact and possibility evaluation (see Chapter 8 Appendix for details). The multidimensional analysis has identified three negative material topics: “Corporate governance and ethicalcorporate management”, “Information security and privacy” and “Intellectual property rights protection
and deployment”, and two positive material topics: “Operational performance and financial performance”
and “Technological and R&D innovations” for 2022. In order to actively implement ASPEED’s sustainability
strategies and commitment, the Sustainability Development Working Team has resolved to include “Employee
benefits and care” as a material topic. The chairman then approved these as the Company’s six material
topics and the focal points of disclosures in this year’s report, which provides a detailed explanation of
response strategies, achievements, and performance for each topic. The report also includes appropriate
disclosures of management measures and performance for the insignificant secondary topics.

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix19Material Topics and Value Chains and Material Topics Management Policies
Direct Impact

Identified
Material Topics in 2022 Impact
Results

GRI Topic-specificStandards

Indirect Impact

Impact on the Value Chain
Suppliers

R&D
DesignCustomer
Use

Description of Impact

Management Policies

Corporate governanceand ethical corporate
management

Negative
impact205 Anti-corruption
206 Anti-competitive behavior

ASPEED Technology’s robust corporate governance system and its implementation, including: ethicalcorporate management, legal compliance, rights and interests of shareholders, and other aspects, which
will have a direct impact on shareholders and other stakeholders.

5.1 Corporate governance andethical corporate management

Information security andprivacy

Negative
impact418 Customer Privacy

ASPEED Technology’s adherence to business ethics and personal information protection and its
implementation, including: maintaining customer information to ensure that customer privacy isrespected and protected, which will have a direct impact on the business itself, its customers and otherstakeholders.

5.4 Information security

Intellectual property
rights protection anddeployment

Negative
impactSelf-formulated TopicASPEED Technology’s protection of intellectual property rights deployment, which will affect ASPEED
Technology’s continued leadership in product development and will have a direct impact on the businessitself, its customers, shareholders and other stakeholders.

4.2 Intellectual property rights
protection and preservation

Operational performanceand financial performance

Positive
impact201 Economic Performance
207 Tax

Sustainable profits are ASPEED Technology’s promise to shareholders and society; raising productcompetitiveness and sustaining profits each year will help ensure sustainable operations of business.

5.2 Operational performance

Technological and R&D
innovations

Positive
impact302 Energy
Self-formulated Topic

As a fabless IC design company, ASPEED Technology is developing green and energy-saving productsthat are friendly to the environment and customers, improving the green specifications of products andreducing the impact on the environment, which are in line with the company’s sustainable development
path and beneficial to the external society.

4.3 Green Breakthroughs

Employee benefits and care

Positive
impact102 General Disclosures

ASPEED Technology offers excellent compensation packages to attract and retain high-quality talents. At
the same time, our people-oriented work system and environment keep everyone on the same page sothat we can work together towards achieving sustainable growth.

6.3 Employee care

201 Economic Performance
401 Employment
403 Occupational Health and Safety
404 Training and Education
405 Diversity and Equal Opportunity
About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix20Materiality Matrix for Negative Impacts

Materiality Matrix for Positive Impacts
Impacts and Possibilities for ASPEED Technology

Impacts and Possibilities for ASPEED Technology
Impacts and Possibilities for Economy, Environment and Society

About This Report

Foreword

Impacts and Possibilities for Economy, Environment and Society

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix21

04

Innovation for a
Sustainable Future
Sustainable Operation Deployment 23

Intellectual Property Rights Protection and Preservation 27
Green Breakthroughs 30

Sustainable Operation
Deployment

Mission and core spirit of “technology civilization”
The meaning represented by science and technology is not only R&D and manufacturing, but also its mission

products. The corporate culture of ASPEED does not aim at pursuing short-term profit products. We insist on

and spirit is to develop advanced technologies and products that can solve human life problems throughinvesting in R&D and innovation, and combine core technology with sustainable development to become ainnovation, continuously promote the progress of human civilization and life improvement and create thecontributor and creator of “sustainable technology civilization”.

core value of sustainable technology civilization. As a pioneer and leader in innovative SoC solutions,ASPEED is committed to continuously improving R&D capabilities to create better products and contributing
to the advancement of human society. Therefore, while taking profit from operations into account, weDiversified product portfolio to create platform synergies

also think about how to create the most suitable products and consider the sustainable development of

ASPEED has been focusing on niche market of chip R&D, and used to develop the Baseboard Management

the environment and society, and contribute to the global sustainable development from chip design andController (BMC SoC) and image-related SoCs. In order to effectively expand product portfolio, we graduallydevelopment, manufacturing supply chain, product value, daily operation to the application area of new

develop from previous product selling to platform building, which will then be developed into two major
product lines: Cloud & Enterprise Solutions and Smart AV Solutions.

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix23Building a future life with immersive experience applications
ASPEED Technology has continuously made breakthroughs in technological innovation. By leveraging ourconsumption required for transportation and on-site visits, which is in line with the trend of the post-

independently developed 360-degree image processor, we have applied it to 360-degree cameras forpandemic era development and the focus of green energy saving. In general, ASPEED Technology wants

ImmersiveX Experience, and further improved the application domain to the Digital Twin by combining theto create new products and new applications through core technologies, and to change the traditional

3D modelling technology. The application covers smart factory inspection and audit, unmanned ﬁeld patrol,model to the evolution of technological civilization. In the future, we will continue to provide competitive

smart city construction and management, remote virtual education, virtual tourism and entertainment. The

and innovative niche chips for innovative application fields, so as to maintain corporate resilience andphysical needs have been reduced through ImmersiveX Experience, which not only reduces the mobility ofsustainable development.

management personnel and improves management efﬁciency, but also reduces carbon emissions and energy

Real-time Immersive Experience

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix24Green Innovation for Safety

Digital Transformation and Low-Carbon Operation

ASPEED Technology contributes to green energy saving with its design strength, and enhances the powersaving efficiency of main chip products from the soft and hardware side, so as to invest in the developmentof low-carbon industry. We continue to invest in R&D resources, upgrade the R&D of major chips fromgeneration to more advanced semiconductor process to strengthen the energy-saving and power-saving
efficiency of chips. In the development of new businesses and product applications, we also incorporate

Phase
One

The ASPEED Technology’s Digital Transformation Project has been gradually implemented since 2021 to
improve operational efficiency and solve problems of traditional processes through digital technology. The
first phase of the digital transformation project was mainly to systematically build digital operations. In
2022, the content focused on the digitalization of production and operation and the analysis of supply chain
digital management data, to create maximum value for ASPEED and customers:

also work towards the vision of enhancing corporate resilience and intensive sustainable development in・Systematic integration of data and conduction of database management analysis to facilitate digital supply
chain management and customer behavior model analysis
・Digitalization of enterprise resource planning (ERP) system
・Construction of information data platformproduction and operation.

The second phase is expected to introduce a comprehensive system, including:factors that will reduce energy consumption and environmental impact, stimulate the creation of more new
domain applications, and list green innovation as one of the trade secrets review projects. In the future,in addition to strengthening the concept planning of sustainable development in product layout, we will

Implementation Description of Digital Transformation Project in 2022
Type

Implementation Description of Digital Transformation Project in 2022

Efficiency

Warehousemanagement

Assist warehouse personnel to optimize the process andcontrol the on-going inventory manufacturing, and conduct
quantitative and amount analysis

Annual working hours
saved by 180 hours

Financials

Financial reconciliation system and statement management,
gross profit analysis

Annual working hours
saved by 350 hours

Shipment
management

Assist in performing shipment booking inspection, documentary
vouchers and labelling output

Annual working hours
saved by 640 hours

Order system

Optimize order system to effectively assist order inquiries andchanges

Annual working hours
saved by 180 hours

Procurement management, production process and material
enquiry

Annual working hours
saved by 156 hours

Procurement

About This Report

Foreword

About ASPEED
Technology

Phase
Two

・BPM digital signature and electronic verification system: Accelerate the verification process, reduce thetime and cost of internal paper signature verification of the Company, and optimize and control theverification process
・The BI (Business Intelligence) system and AI (Artificial Intelligence) digital tools carry out data and chart
analysis and judgement, so as to assist in improving the efficiency of enterprise operation and management
in light of various unforeseen circumstances
・DCC Document Management System: Control all documents, strengthen document management andprotection, and improve the document control process

Starting from 2022, we have changed our chip labels from ink printing to laser labels to reduce
environmental pollution caused by printing during the manufacturing process. In terms of production andoperation, we continue to promote digital transformation, systematically build digital operation, strengthen
cloud-based long-distance office, supply chain digital management and data analysis, and integratesustainable issues from R&D, product innovation, field application to daily operation, so as to exert
sustainable influence in an all-round way.

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix25International marketing and talent cultivation
Expand core technologies, develop new applications and extend application fields to develop new
product lines and new customers and increase the market share of existing products.
Strengthen corporate operation system, actively enhance organizational efficiency, improve sales
management system and establish a global technology cooperation and service network.
Carry out in-house staff’s education and training on sustainability and strengthen sustainability
awareness. Organized the TCFD workshop, GHG awareness courses, information security and othereducation and training in 2022.
Nurture professional marketing talents and deepen customer relationship, so as to grasp the changes
and development of product application market.

*Attend the Year-end Dinner Party held by Monte Jade Science and Technology Association

Continue to actively recruit and nurture high-tech talents, make use of break-through core technologies
to promote product sustainability and improve international market visibility.
Jointly develop and strategically ally with leading international manufacturers and international
partners to gradually expand international market.
*Please refer to Section 6.2 Talent Development for details*Mr. Chris Lin in ARM Tech Symposium

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix26

Intellectual Property
Rights Protection and
Preservation

Intellectual property rights protection and deployment
Identified Impact Result

Negative Impact

GRI Topic-specific Standards

Self-formulated Topic

Performance Indicators

2022 Results

the planning of the intellectual property portfolio and the trade secret registration system, develop internal
assessments and enhance bonus for patent applications, and actively encourage employees to innovateand develop. In 2022, we adhered to short-term and medium-to long-term development strategies, andmake ASPEED Technology to adopt a more systematic approach to protect technological innovation and・Number of patent applications and grants

intellectual property rights, and continue to make efforts to build a long-term intelligent property rights

・Number of trade secret registration system applications and grants

・Received 9 patents; applied for 27 patents; successful year-over-yeartarget achievement

・Established a trade secret registration system for the Company andofficially launched in 2023

・Built an intellectual patent portfolio management for new products2023 Objectives

patent applications and taking charge of domestic and foreign patent applications, we also embark on

・Gradually increase the number of patent applications and applying countries
・Establish a digitalized patent management systemlayout. Looking ahead, ASPEED Technology will continue to improve the penetration and acquisition of
SoC hardware and software R&D talents in the area of patents and intellectual properties, significantly
enhancing the intellectual property layout of chips, thereby enhancing ASPEED Technology’s corporate value
and international visibility.

Protection Strategies for Intellectual Property Rights
Timeline
Short-term
development

Long-term
development

rights can be regarded as an important part of the global economic and trade layout, and is the key to the
ASPEED Technology. We attach great importance to the acquisition and protection of intellectual property
rights and patents of key technologies. In terms of patent distribution, we will continue to increase theSince its establishment in 2004, ASPEED Technology has devoted considerable efforts in obtaining andprotecting patents and has encouraged its R&D team to actively obtain key patents. Following the・Gradually increase the number of patent applications and applying countries to expand
the protection of intellectual property rights and global layout

establishment of a full-time Legal Management Division in 2021, in addition to evaluating the feasibility of

About ASPEED
Technology

・ Continue to ensure that ASPEED’s technology is completely protected during
development through building intellectual patent portfolio management for new
products

・Establish links between patent proposals and trade secrets registration and management
systems to ensure that intangible key secrets which are more suitable for trade secrets
protection are detailed in the centralized management system

quality and quantity of patents through the development of core technologies and high-quality products.

Foreword

・Optimize patent review and evaluation procedures to improve patent quality

・Design a diverse innovation mechanism supplemented by a graded evaluation process tomotivate employees to make invention applications

sustainable development of enterprises. Innovation and R&D are the most important asset and mission of

About This Report

・Establish a digitalized patent management system

・Cooperate with the Administration Division to establish systematic intellectual property
rights-related education and training

・Establish systematic education and training on intellectual property
In the face of the global development of enterprise operations, the protection of intellectual property

StrategyInnovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix27

Management Process of Intellectual Patent Portfolio for New Products

By 2022, ASPEED Technology had acquired 58 patents, consisting of 31 patents in Taiwan, 22 in the UnitedStates, and an additional five from Broadcom’s Emulex Pilot™ business. In 2022, the Company achieved
its patent acquisition and application targets, including having acquired six four new Taiwan patents. The
Company currently has 9 patent applications underway in Taiwan, 10 applications in the United States and9 applications in China. Our patent applications cover a wide range of technologies found in core products,
including seamless stitching and rotating of panoramic images as well as core technologies for image
displays and tracking in wide-angle/panoramic image meeting systems.

Keyachievement

2020

2021

2022

Patent application

5

24

27

Patent acquisition

3

4

9

2022 achievement

・Number of applications raised to 27
・Number of acquisitions was 9
・Patent application countries covered Taiwan,
the United States and China* The number of patents acquired in each year depends on the processing period and progress of patent application
countries

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix28

Operation of the Trade Secret Registration System

Trade Secret Registration System—Green Proposals Incentive Mechanism
In order to better protect the intangible assets and technology inventions within the Company witheconomic value that are not patentable, the trade secret registration system was specially planned in
2021 and launched in 2022. At the same time, the linkage between the patent proposal and the trade
secret registration and management system was also established to ensure that the intangible key secrets
which are more suitable for trade secret protection are all detailed in the centralized management system.
Each year, members of the Review Committee are assigned by the Chairman of the Board and include
professionals in the legal and R&D fields, and conduct an evaluation once a year. In order to be more
integrated for sustainable development and internal green technology R&D and innovation of the Company,
the trade secret registration system of ASPEED Technology specially incorporates a green innovation
proposal incentive mechanism. The evaluation mechanism includes whether it is in line with green design,
green manufacturing and green innovation application. It is targeted at whether it can improve energy
efficiency and whether it has a unique contribution to the circular economy, and the above indicators will be
one of the items for the Gold Award, Silver Award, and Quality Award. In the future, it is expected that green
innovation will be divided into independent projects, and employees will be encouraged to carry out green
innovation-related innovation R&D.

Operation of the Trade Secret Registration System

Key achievement

2022

Number of applications for quality trade
secret in R&D and innovation

11

Number of applications for quality trade
secret in business operations

1

Number of Gold Award0

Number of Silver Award

1

Number of Quality Award

8

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix29

Green Breakthroughs

Green Innovation

Technological and R&D innovations
Identified Impact Result
GRI Topic-specificStandards

As for green environmental protection and energy saving, our efforts are not only focused on theimplementation of supplier management and reduction of environmental risks caused by our own
operations, but also focused on the green R&D of products, how to contribute to sustainable developmentwith our own design strength, including energy-saving and power-saving technology of chips, productapplication in new green fields and trade secret development. We actively encourage our employees toconsider green R&D.

Positive impact
・302 Energy

・Self-formulated Topic

Performance Indicators

・R&D fees

2022 Results

・R&D fees amounted to NTD678 million in 2022, an increase of 23.95% over・Green product R&D
2021

・AST2600 BMC SoC saved 23,417.58 metric tons of carbon dioxide emissions
a year compared to the previous generation

・Gradually shifting to chip surface laser printing shipment to enhance green
production

・Incorporate green innovation R&D into the trade secret registration system

2023 Objectives

・Continue raise the proportion of R&D expenses

・Continue to reduce GHG emissions of major chips

・Enhance the importance of green innovation and R&D, set up independent
selection awards in the trade secret registration system

With the increasing installation of data centers and cloud computing, the energy-saving and power-saving
technology of BMC SoCs can help reduce power consumption during operation, and auxiliary cloud service
at the data center can effectively reduce the staff mobility cost, energy consumption and carbon emissionsof enterprises, striving to contribute to the low-carbon development of the overall industry. In addition, in thedevelopment of new product application fields, we will also develop towards reducing energy consumption,
including the ImmersiveX virtual domain application developed by innovative technology, the inspection
and audit of smart factories, etc. This will not only save energy consumption for transportation and on-site
visits, but also help improve the overall factory environmental safety and employee occupational safety;
while remote virtual education can create more multifaceted learning, making learning opportunities lessdependent on time.
In the trade secret registration system established in 2022, we have also included green R&D innovation as
one of the evaluation indicators. Through these evaluation indicators, we encourage R&D employees to takegreen innovation into consideration when carrying out innovative development. It is expected that in 2023, a
separate award for green innovation will be set up. The current selection criteria include:

・Product innovation and application into green energy saving

Compliance withgreen design

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
GovernanceCompliancewith green
manufacturing

Shared Social
Prosperity

Contributions toenvironmental
management,
energy efficiency
improvement andcircular economy

Green
Operations

Appendix30

Green R&D
BMC SoC has been the most important product of ASPEED Technology. Since the first generation of

expenditure to revenue fell slightly due to a 43.23% significant growth in revenue in 2022, but the investment

AST2000, it has progressed to the seventh generation of BMC SoC—AST2600, using ARM Cortex A7 dual-

amount increased significantly by 23.95% compared with last year. In the future, ASPEED Technology willcore processor, which is the first BMC SoC in the industry to introduce 28nm advanced technology; with

continue to invest in human resources and funding for R&D every year, and focus on the development of new

the adoption of new design technology and the new generation of semiconductor process, the computing

technologies and new products.

capacity has been greatly improved, striving to bring faster and more computing power per unit of power
consumption. Based on this view, ASPEED is committed to strengthening the power reduction of eachgeneration of chips for the same complexity of computing tasks, thereby helping save energy consumption;

R&D expenditures in the past five years （Unit: NTD100 million）

meanwhile, on the application side, we can reduce the number of products used and optimize thecomputing power, effectively reducing the overall power consumption. On top of the efforts in hardware,
ASPEED Technology is also dedicated to saving energy in software design, introducing energy-saving andpower-saving design to all chips, using independent module design for chip driver, and dozens of drivers
on a single chip can be activated individually according to the needs of server during operation. Besides,
unused drivers will directly enter sleep mode to avoid any electricity consumption. In the product of server
management chips, ASPEED Technology has accumulated many years of experience in development anddesign and cooperation with customers, aiming to build a server management chip that meets the green
development direction with high performance, high security and low power consumption. We will continue
to provide low-power consumption green and energy-saving chips to our customers and the whole industry
chain through our R&D efforts in both software and hardware. In 2022, the chip manufacturing process
gradually switched to laser printing on the chip surface instead of the traditional surface ink printing
process to reduce pollutants and waste generated during the production process. In 2022, a total of 26.68%
of chips shipments have been processed by using the laser printing method, which will reduce considerable
ink pollution. In the future, we will switch to laser printing for comprehensive shipping.

ASPEED Technology believes that R&D is at the core of our business and has been putting resources on
R&D in recent years. In 2022, R&D expenditure amounted to NTD678 million. The overall proportion of R&D

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix31

Energy-efficient
In product applications, assuming that ASPEED Technology’s first generation of BMC SoC AST2000 uses antons of carbon dioxide emissions ,or about the equivalent of the carbon absorbency of 227,290 acres of U.S.

80% workload as the benchmark, each generation of single BMC SoC’s power consumption is decreasing onforests in one year. compared with AST2000, Compared with AST2500, AST2600 can reduce approximately

a generation basis while reaching the same benchmark. For example, the 7th generation AST2600 BMC SoC

23,744.12 metric tons of carbon dioxide emissions a year, equivalent to approximately 28,315 acres of U.S.

can save up to 93.21% of power consumption per year compared with the first generation AST2000 while

forests annual carbon absorbency in one year.

achieving the same workload.
When comparing the 7th generation AST2600 BMC SoC with its predecessor AST2500, a single SoC cansave up to 61.34% of power consumption on average per year, while still achieving the same workload.
Based on the shipment volume of AST2600, the main product of ASPEED Technology, in 2022, it could reduce
approximately 374,454,097 kWh of electricity consumption, equivalent to approximately 190,597.14 metric* Based on the 2021 electricity carbon emission factor of 0.509 kg of CO2e per kWh, as announced by the Bureau ofEnergy, Ministry of Economic Affairs* Used 2022 AST2600 deliveries to calculate total carbon emissions savings for the year
*Used the Greenhouse Gas Equivalencies Calculator, from the US Environmental Protection Agency, to calculate
carbon absorption capacity

BMC SoC – High efficiency and low power consumption

Compared with AST2500, AST2600 can reduce
approximately

23,744.12 metric tons ofcarbon dioxide emissions a year.

=

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

approximately

28,315 acres of U.S

forests annual carbon absorbency in one year.

Green
Operations

Appendix

32

ASPEED Technology’s 2022 Main Products and Their Performance (MIPS/W)

CPU

Performance of a System-Level
Processor

AST2600

Dual-core ARM Cortex A7 CPU @ 1.2GHz
32-bit ARM Cortex M3 @ 200MHz

2,381

AST2500A2-GP

ARM1176JZS @ 800MHzHz
ColdFireV1 @ 200MHz

1,652.17

AST2520A2-GP

ARM1176JZS @ 800MHzHz

1,357.64

AST2400A1-GP

ARM926EJ-S @ 400MHzHz
ColdFire V1 @ 200MHz

580.31PILOT 4Dual-Core ARM Cortex A9 @ 500MHzARM Cortex M3 @ 250MHz

1,149.89

AST1520A1-GP

ARM1176JZS @ 800MHzHz
ColdFire V1 @ 200MHz

1,652.17

Product

Energy savings for various generations of BMC SoC to achieve the same computing power as the
AST2000 1st generation model used at 80% workload* Calculated on AST2600 ARM CA7@1200MHz vs ColdFire V1@200MHz

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix33

05

Corporate GovernanceViewpoint – Driving Sustainability Transformation with Digital Governance 35

Corporate Governance and Ethical Corporate Management 36
Operational Performance 49

Climate Strategies—TCFD 53
Information Security 60

Product Quality and Customer Service 64

Sustainable Supply Chain Management 67

Viewpoint
Driving Sustainability Transformation with Digital Governanceimprove the divisional and cross-divisional operation process through digital technology, so as to greatly
improve the operation efficiency; in addition, green operation, paperless operation, far-from-work mode
to energy saving and carbon reduction have become the future trend; therefore, the Information Science
Development Division will take the lead and, after in-depth interviews with relevant divisions, formulate
project priorities to implement the ASPEED Digital Transformation Project in stages. The first phase of the
project mainly focuses on the digitization of production and operation, with a stress on database building
and supply chain digital management. This phase adopts a systematic approach to integrate data anddatabase, effectively build a data platform for the production and operation offices and relevant divisions
including Finance Division and Customer Service Unit to integrate cross-divisional data and analyze
systematic data. At the same time, it also introduces the financial system to help account management and

The COVID-19 pandemic has transformed notwith various divisions to understand the actual

only human lives, but also prompted companies

needs, then carry out strategic planning andto think more closely about future transformation

promotion plans, and finally apply technology

and changes to adapt to the new post-pandemic

tools to reduce operating costs and improve

working pattern, in which digital transformation

operating efficiency. Through digital information

plays a vital role. Not only that, due to the wave

technology, we help the Company to give play toof green operations, reducing the consumption

its core competitive advantages and strengthenof manpower, materials and resources throughgovernance performance.

gross profit margin analysis. The goal is to assist the whole production and operation offices and relevant
divisions to cooperate more efficiently, process digitalization and unification to optimize process and work
efficiency. The second phase will focus on the comprehensive digital and data analysis: the integrationand implementation of BPM electronic verification system and document management system. In addition,
the BI (Business Intelligence) / AI (Artificial Intelligence) digital tools will be adopted to grasp the data of
the Company’s internal management sales, business, customer service, human resources and information
system. Through analysis, more valuable information will be produced, which will help to comprehensively
enhance the operating value of the Company.

digital technology, these have made digitaltransformation gradually become a future

In 2021, ASPEED newly established thetrend. In the face of this digital transformation,

Information Science Development Division

ASPEED will first review the core values of thein response to the demand for digitalcompany’s internal operation development

transformation, which is dedicated to the digitaland product services, and through interviews

transformation project. The primary goal is to

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

35

Corporate Governance andEthical Corporate Management

information transparency, ASPEED Technology passed the “Management of Insider Trading Prevention

Corporate governance and integrity operation
Identified Impact Result
GRI Topic-specificStandards
Performance Indicators

2022 Results

cum Internal Material Information Handling Procedures” in 2022, and established an investor relations
section on the Company website. Investors are able to read and download annual reports, earnings call

Negative Impact

information, and publicly disclosed financial information. A corporate governance section also provides

・205 Anti-corruption

related legal and regulatory information, including the Articles of Incorporation, corporate governance best

・206 Anti-competitive Behavior

practice principles, and a code of ethical conduct. Resolutions made by the Board of Directors and related
information are also available on the website. In the future, the Company aims to make information even・Corporate governance evaluations

more transparent, more public, and easier to search.

・Corporate governance and integrity compliance

ASPEED Technology’s ongoing Sustainability promotion and corporate governance implementation were・Improvement in corporate governance related rankings

・Responding to the TCFD initiative and officially signing to become arecognized when the Company’s ranking in the TWSE corporate governance evaluations rose to a higher

・Promoting the anonymous whistleblower reporting systemand comprehensively improve the level of corporate governance, ASPEED Technology adheres to the

TCFD supporter

2023 Objectives

bracket for two consecutive years since 2020. To further strengthen corporate governance performance

・Promoting Digital Transformation Projects

Financial Supervisory Commission’s “Corporate Governance 3.0—Sustainable Development Roadmap.” The

・Consider and approve the remuneration of senior management to bewhere improvements are needed, including having already provided more detailed disclosures in annual・Complete a whistleblower reporting system under third-partyof directors and independent directors. Besides already implementing ESG, environmental protection,・Assess and drive the second phase of digital transformation

obtained ISO27001 international certification for information security management in 2022, implemented

Company uses the TWSE corporate governance evaluation results as a reference for determining areas

included in the perpetual performance indicators
supervision

reports and on the corporate website, and implementing a candidate nomination system for the election
integrity operation, employee care, social contributions, and information security, ASPEED Technology has
employee integrity and anti-corruption initiatives, developed a whistleblower system reporting platform,and strengthened communication between independent directors and internal auditors and accountants. In

ASPEED Technology formulated the “Corporate Governance Best Practice Principles” and the “Codeof Ethical Conduct”in order to build an effective corporate governance framework and related ethicalstandards. We uphold transparent operations and closely heed the rights and interests of shareholders andsociety. In order to aid corporate operations and oversight, we believe that corporate governance should bebuilt on a foundation of a strong, complete Board of Directors in conjunction with supporting committees,
including the Audit Committee, the Remuneration Committee, and the Sustainability Committee. To uphold

About This Report

Foreword

About ASPEED
Technology

the future the Company will practice effective corporate governance in all areas, strengthen Board structure
and operations, and make information disclosures more transparent. In 2023, the Whistleblower System,
which is an externally built and independent director checking mechanism, is expected to be launched toestablish an independent reporting platform, and we are committed to increasing the diversity of board
members in 2024 for the 8th Board of Directors. These measures will incorporate the spirit of sustainability
into operations and management while fulfilling sustainability duties.

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix36Company Organization
The Board of Directors is the highest administrative unit of ASPEED Technology. The nomination and selection of Board members is conducted by following the “Procedures for the Election of Directors and Supervisors.” Oversight of Company
operations, formulation of strategies and guidelines, identification of operational risks, and planning of Sustainability development guidelines are carried out in accordance with the “Company Act,” the “Articles of Incorporation,” andauthority assigned by Board decisions.

Operations of the Board of Directors
In 2022, ASPEED Technology’s seventh Board was established with the selection of nine directors who will serve until 2024. The directors have diverse professional backgrounds with both practical and academic research experiences, ranging
from operations, semiconductor technology, and finance to network and communications information security as well as international M&A. Four of the nine directors are independent and support oversight by serving as the members of the
Audit Committee and Remuneration Committee. Required to convene at least once per quarter, the Board met six times in 2022 and the directors had an attendance rate of 98%. Directors undergo training in accordance with the “Directions
for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies” in order to stay updated on the latest legal revisions and emerging issues, so that they are equipped to provide
more effective corporate governance. To increase the Board’s effectiveness and improve information transparency, the Company conducted the 2022 internal performance self-evaluations, in accordance with the “Rules for the Performance
Evaluation of Board Members”. Each year, the self-evaluations will be conducted in January and reported to the Board in the first quarter. The internal self-evaluations for 2022 was completed in January 2023 and reported to the Board
before the end of the first quarter of 2023. Results are used for review and improvement purposes, and serve as a reference for selecting and nominating future directors. In order to continuously refine and strengthen ASPEED Technology’sboard structure, we undertake to add at least one female director when the eighth Board is re-elected in August 2024 to strengthen the diversity of board members.

Audit Committee

Shareholders Meeting

Remuneration
Committee

Board of Directors

Sustainability
Committee

Chairman

Audit Office

President

New Business
Development
Division

Operation
Division

About This Report

Information
Technology
Division

Legal
Management
Division

Foreword

Corporate
Communication
Division

About ASPEED
Technology

Finance andAccounting
Division

Administration
Division

Innovation fora Sustainable Future

Product &Technology
Development
Division

Corporate
Governance

Quality
Assurance& SystemApplication
Design Division

Shared Social
Prosperity

Sales Division

Green
Operations

Appendix

37

The member ofadministrative unit from2020 to 2022
Unit: person, percentage

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix38

Board Members and Continuing Education
Board Meeting
Attendance Rate

Name

GenderChairmanChris Lin

Male

・Chairman and President, ASPEED Technology Inc.
・Director, Linvest Wealth Corp.
・Director, Linvest Fortune Corp.
・Director, ASPEED Technology (Samoa) Inc.
・CEO, ASPEED Technology (U.S.A.) Inc.
・Director, ASPEED Technology India Private Ltd.
・Chairman, Cuploa360 Inc.

100%

・Building an Intelligent Risk Organization-from Fraud Risk Prevention, Detection, Investigation to Crisis Management (3 hours)
・The 18th (2022) Corporate Governance Summit-Enhancing Directors’ Duties and Implementing Corporate Sustainability (3 hours)

Director

Arnold Yu

Male・Director, Machvision Inc.
・Director, Autovision Technology Inc.
・Supervisor, AtechOEM Inc.
・Director, Stark Technology Inc.
・Director, ChipAI Co., Ltd.
・Independent Director, Cipherlab Co., Ltd.
・Director, ASPEED Technology India Private Ltd.

100%

・Release of Reference Guidelines on the Exercise of Powers and Functions by Independent Directors and the Audit Committee andDirector and Supervisor Briefing (3 hours)
・How the Audit Committee Interprets and Uses the Audit Quality Index (AQI) (3 hours)

Director

Luke Chen

Male・Vice President of Sales, ASPEED Technology Inc.

100%

・CSR-Corporate Governance from Human Rights Policy (3 hours)
・Interpretation of Important Decisions on Corporate Governance: Focusing on Directors’ Responsibilities (3 hours)

Director

Ted Tsai

Male・Chairman, Maojet Technology Corp.

100%

・CSR-Corporate Governance from Human Rights Policy (3 hours)
・Interpretation of Important Decisions on Corporate Governance: Focusing on Directors’ Responsibilities (3 hours)

Director

Hung-Ju Huang

Male・Vice President of R&D, ASPEED Technology Inc.*

100%

・Practice of Trade Secret Protection and Fraud Prevention (3 hours)
・Case Study of the Operation Rights of the Company (3 hours)

Independent
Director

Chyan Yang

Male・Adjunct Professor, Institute of Business and Management,
National Chiao Tung University.
・Independent Director, ACTER Co., Ltd.
・Supervisor, Chia Chang Co., Ltd.
・Independent Director, MARS Semiconductor Corp.
・Independent Director, Associated Industries China, Inc.

100%

・Discussion on the Key Issues of M&A integration in the Corporate M&A Process (3 hours)
・Sustainable Transformation from ESG Management (3 hours)
・Introduction of the Operation Rights Competition and Court Proceedings (3 hours)
・Financial Misinformation that Directors are Most Likely to Overlook (3 hours)
・ESG/CSR and Sustainability Governance in 2022 (3 hours)

Independent
Director

Dyi-Chung Hu

Male・Chairman and CEO, Siplus Technology Co.
・Director, Raytek Semiconductor, Inc.

100%

・Practice of Trade Secret Protection and Fraud Prevention (3 hours)
・Enterprise M&A Practice and Case Studies (3 hours)

Independent
Director

Sheng-Lin Chou

Male・Chief Venture Officer (CVO), ICL/Industrial Technology
Research Institute・Secretary General, Taiwan Association of Information &Communication Standards (TAICS)

90%

・How the Audit Committee Interprets and Uses the Audit Quality Index (AQI) (3 hours)
・2022 Independent Directors Elite Research and Training Institute – High-level Training Course (3 hours)

Independent
Director

John C. Lin

Male・Senior Consultant, Jones Day International Law Firm

100%

・The 18th (2022) Corporate Governance Summit- Directors’ Duties and Implementing Corporate Sustainability (6 hours)
・How the Audit Committee Interprets and Uses the Audit Quality Index (AQI) (3 hours)

John C. Lin

Primary Positions

2022 Continuing Education Course Name

Title

* On August 31st, 2022, the Company announced that Hung-Ju Huang retired
from the position of ASPEED Technology’s Vice President of R&D andswitched to a role of R&D Consultant.

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix39

Operation of Audit Committee

Operation of the Remuneration Committee

ASPEED Technology established the Audit Committee to strengthen the Company’s governance andTo support corporate governance and strengthen compensation mechanisms for the Company’s directors,

operations. The committee’s oversight of financial reporting procedures enables it to monitor internal

supervisors, and managers, ASPEED Technology established the Remuneration Committee in accordancecontrols and inspect financial reports, so that it can evaluate and guide the Company’s audit related tasks.

with the “Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee

The Audit Committee assists the Board of Directors in fulfilling oversight of the quality and integrity of theof a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange.” The committee

Company’s accounting, auditing, and financial reporting practices. The Audit Committee is composed ofcharter gives the committee authority to oversee the compensation mechanisms for the Company’s

all independent directors. The committee may resolve to retain the service of an attorney, certified public

directors, supervisors, and managers. The committee shall faithfully perform its official powers and submit

accountant, or other professionals to provide advice. It has direct access to the Company’s internal auditors,

its recommendations for deliberation by the Board of Directors. The “Remuneration Committee Charter” ofcertified public accountants, and all employees of the Company through meetings, informal discussions,the Company stipulates that the Remuneration Committee shall comprise at least three members, and shalltelephone, and email. Each year the Audit Committee and a certified public accountant discuss legal

be appointed by resolution of the Board, one of whom shall be the convener. The Remuneration Committee

compliance issues and identify areas for further attention. The term of ASPEED Technology’s 2022 secondof the Company is composed of all independent directors. Meetings shall be held at least twice a year.

(current) Audit Committee is from July 30th, 2021, to July 29th, 2024. The committee met four times in 2022

Directors, managers of relevant divisions, internal auditors, accountants, legal advisors or other personnel

and carried out the following:

shall be invited to attend the meeting and to provide necessary information. However, the seats shall goin the discussion and voting. ASPEED Technology’s 2022 fifth Remuneration Committee is composed offour members, including one convener. Its term is from August 11th, 2021, to July 29th, 2024. In 2022, theRemuneration Committee met four times and members had the following attendance status:

2022 the 2nd Audit Committee
Title

2022 the 2nd Remuneration Committee
ActualExpected
Attendance Attendance
Attendance Attendance by Proxy
Rate %

Name

Remarks

Title

Name

ActualExpected
Attendance Attendance

Attendanceby ProxyAttendanceRate %

Remarks

Convenor

Chyan Yang

4

4

0

100%

None

Convenor

Chyan Yang

4

4

0

100%

None

Independent Director

Dyi-Chung Hu

4

4

0

100%

None

Director

Dyi-Chung Hu

4

4

0

100%

None

Independent Director

Sheng-Lin Chou

4

4

0

100%

None

Director

Sheng-Lin Chou

4

4

0

100%

None

Independent Director

John C. Lin

4

4

0

100%

None

Director

John C. Lin

4

4

0

100%

None

*Attending a meeting via video conference is considered equivalent to attending in person.

About This Report

Foreword*Attending a meeting via video conference is considered equivalent to attending in person.

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix40Independent Directors and Internal Communications

ASPEED Technology's independent directors use quarterly Audit Committee meetings or communication

ASPEED Technology’s independent directors use quarterly Audit Committee meetings or communication with

with accountants through pre-meetings to understand financial reports, review audit results, and discussaccountants through pre-meetings and informal discussions to understand financial reports, review audit

legal and regulatory issues relating to ﬁnance and accounting, taxation, and securities. When serious issues

results, and discuss legal and regulatory issues relating to finance and accounting, taxation, and securities.

occur, the directors and accountants convene meetings. In 2022, no serious or unusual issues occurred.

When serious issues occur, the directors and accountants convene meetings. In 2022, no serious or unusualissues occurred.

Descriptions of Communications Between Independent Directors and Certified Public Accountant
Descriptions of Communications Between Independent Directors and Internal Auditors
Dissenting Opinion
or Qualified Opinion
from Independent
Directors

Date

Form of Meeting

Resolution

2022.03.07

The third meeting of the second
session of the Audit Committee

Reviewed the 4th quarter, 2021 internal audit
reportDate

Form of Meeting

Resolution

2022.03.07

The third meeting of the second
session of the Audit Committee– Pre-meeting

Discussed the latest regulations on finance and accounting,taxation and securities administration

The third meeting of the second
session of the Audit Committee

Reviewed results of the 2021 financial report and important
items for review

The fourth meeting of the second
session of the Audit Committee –Pre-meeting

Discussed the latest regulations on finance and accounting,taxation and securities administration

The fourth meeting of the second
session of the Audit Committee

Reviewed the 1st quarter, 2022 financial report and importantfinancial items

The fifth meeting of the second
session of the Audit Committee– Pre-meeting

Discussed the latest regulations on finance and accounting,taxation and securities administration

The fifth meeting of the second
session of the Audit Committee

Reviewed the 2nd quarter, 2022 financial report and importantfinancial items

The sixth meeting of the second
session of the Audit Committee– Pre-meeting

Discussed the latest regulations on finance and accounting,taxation and securities administration

The sixth meeting of the second
session of the Audit Committee

Reviewed the 3rd quarter, 2022 financial report and importantfinancial items

2022.05.09

Reviewed the 2021 internal control measurestatement

Dissenting Opinion or
Qualified Opinion fromIndependent Directors

The fourth meeting of the second
session of the Audit Committee –Pre-meeting (separate meeting)

Established the separate communication channels
and mechanisms between independent
directors and internal auditors

The fourth meeting of the second
session of the Audit Committee

Reviewed the 1st quarter, 2022 internal audit
report2022.08.08

The fifth meeting of the second
session of the Audit Committee

Reviewed the 2nd quarter, 2022 internal audit
report2022.11.07

Internal Discussions on Auditing(separate meeting)

Reviewed the 2023 description of audit plan
risk assessment

The sixth meeting of the second
session of the Audit Committee

Reviewed the 3rd quarter, 2022 internal audit
report2022 appointment of certified public accountant

Formulated the 2023 audit plan

2022 certified public accountant appointment and fee

2022.05.09

About This Report

Foreword

2022.08.08

None
2022.11.07

None

Evaluation of the independence of certified public accountants

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix41

Internal Audit Responsibilities

Ethical Corporate Management

Besides establishing an internal audit unit that is overseen by the Board of Directors, ASPEED Technology

Ethical corporate management is a core value of ASPEED Technology’s corporate governance and theassigns a management-level internal auditor as needed based on the Company’s scale, business conditions,highest principle of the Company’s conduct. The Company therefore formulated the “Corporate Code ofmanagement needs, and legal requirements. In line with internal audit implementation rules, the Audit

Ethics” and the “Procedures for Ethical Management and Guidelines for Conduct.” It includes adherence

Committee decides the appointment or dismissal of the internal auditor and the Board of Directors mustto ethical corporate management policies as a condition of hire for new employees. When fulfilling work

approve the decision by resolution. The internal auditor is subject to annual evaluations and the Chairman

duties, all employees must act honestly and fairly while adhering to government laws and regulations.

determines his or her compensation.

Board members and senior-level managers must also uphold ethical principles when running the Company.
If the Company discovers that a business counterparty, supplier, or other partner conducts business in an
unethical manner, we shall immediately terminate the business relationship and abstain from future business

Internal Control Practices and Procedures

relations. These measures ensure effective implementation of our ethical corporate management policy.

Based on risk assessment results the internal audit unit produces an audit plan that must then be passedby the Audit Committee and the Board of Directors. Periodic and ad hoc reports on implementation results

The Sustainability Committee’s Corporate Governance Group and the Administration Division are responsible

are made to the committee and the Board. The implementation plan shall include annual self-evaluations offor advocacy and implementation of ASPEED Technology’s ethical corporate management. They formulate,control measures by all internal units followed by an audit of the self-evaluations by the internal audit unit.

explain, and consult on the procedures for ethical management and guidelines for conduct, while carrying

The overall results shall become the basis for an internal control measure statement by the Board and theout related procedures and oversight, including reporting and registration procedures as well as making

president. In 2022, ASPEED Technology established and the Board of Directors approved the “Sustainability

periodic reports by the Sustainability Committee to the Board of Directors. The division holds regular andReport Preparation and Validation Process”, which requires that the previous year’s Sustainability Reportad hoc educational training courses with employees to promote ethical corporate management, so thebe prepared annually with reference to general, industry, and materiality criteria published by the Global

employees clearly understand related concepts and standards. The division also makes announcements toReporting Initiatives (GRI), disclosing the economic, environmental, and social material topics and impacts

employees and discusses ways to strengthen ethical corporate management with managers. Employees

identified by the Company, the items disclosed, and the reporting requirements. The aforementioned

must fully grasp the importance of ethical corporate management and practice it in their everyday work.

sustainability report should include an assessment of relevant environmental, social, and corporate

When joining the Company, 100% of new employees must sign a guarantee letter stating that they will

governance risks and establish relevant performance indicators to manage the material topics identified.

adhere to the Articles of Incorporation and ethical corporate management principles. Moreover, theyASPEED Technology expects to prepare an internally audited sustainability report by June 30th of each year

pledge to not violate or infringe intellectual property rights. If unethical behavior is found, administrative

beginning in 2023 and to disclose an index of the content of the report against the GRI criteria.

managers and managers from related departments review the incident, make improvements, and report

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix42

to the Board of Directors. ASPEED Technology has always upheld fairness and justice, which is why wecorruption and anti-monopoly related courses, in order to implement employees’ emphasis on regulations

are firmly committed to fair business practices. We are firmly opposed to anti-competitive practices andand ethical corporate management in various fields. Regarding business partners and suppliers, ASPEED

support anti-trust and anti-monopoly practices. If any inappropriate behavior relating to ethical corporate

has included additional anti-corruption related provisions in its contracts to ensure that business partners

management, anti-competitive practices, or anti-trust and anti-monopoly practices is discovered, employees

and suppliers understand and comply with the anti-corruption standards. In 2022, no anti-competitiveand external stakeholders can directly report their findings to info@aspeedtech.com. In 2022, ASPEED

litigation happened in ASPEED Technology, nor did it suffer any monetary loss as a result of legal actions

Technology scrupulously abided by laws and social norms. No employees were involved in any work-related

against competition.

bribery or legal troubles, and none faced any work related fines or penalties in Taiwan or overseas. ASPEED
Technology recognizes the importance of moral business practices and internal ethical control mechanisms.
In 2022, the Company began to plan an anonymous whistleblower system that is overseen by the Company’s
internal Legal Management Division and audit units. We adopt an impartial and independent third-party
reporting system, overseen by independent directors, to prevent internal corruption or unethical behaviors.
The system is expected to go live in the second quarter of 2023, enabling ASPEED Technology to movetowards a more complete and transparent governance operation.

Legal Compliance
ASPEED Technology attaches great importance to the compliance of regulations in various areas. Regular
regulatory inspections are carried out by each unit in accordance with their duties to ensure compliancewith relevant laws and regulations, and to pay attention to the development of regulations and respondto the changes in advance. In order to make all employees understand the issues of compliance with laws
and regulations, ASPEED Technology enhances the knowledge and ability of employees in business-related
policies and regulations by internally promoting the latest regulations and trends, so that employees canobtain new information on regulations and amendments to regulations. Audit measures are taken to ensurethat business operations comply with relevant requirements. For those non-compliant parts, investigation
will be conducted to find out the reasons, and measures will be taken to control and correct, so as toreduce negative impacts and avoid recurrence. In 2022, the Company started to promote anti-corruption
communication among all employees, and held a training course on integrity education for all employees:
Anti-corruption and Bribery Risk Management Mechanism Practice Sharing. In the future, we will also
strengthen the understanding of regulations through education and training and plan more integrity, anti-

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix43

〔 A 〕Total number and percentage of members of administrative units who have been

educated on anti-corruption policies and procedures (Unit: Number of People)

In 2022, all employees of ASPEED Technology have received education and training on ethical corporate
management and anti-corruption. The following table sets forth the name and hours of external training
courses received by employees in the past three years:

Ethical Corporate Management-related External Training Hours
Members of administrative units who have been educated on anti-corruption policies and procedures
Total number of members of administrative unit
〔 B 〕Total number and percentage of employees who have been educated on anti-

corruption policies and procedures (Unit: Number of People)

2022

2021

Members who have been educated on anti-corruption policies and procedures
Total number of employees hired〔 C 〕Total number and percentage of members of administrative units who havereceived anti-corruption training (Unit: Number of People)

External Training Course Name

Year

2020

Hours

Anti-corruption and Whistle-blower Protection

2

Anti-corruption and Bribery Risk Management Mechanism Practice Sharing

3

Analysis of the PDPA

3

Corporate Labor Law Compliance Basis

3

Legal Risk Study on Connected Person Transactions

6

Corporate Fraud Detection and Prevention Practice: Legal Responsibility,
Identification and Big Data Analysis

6

Analysis of Key Corporate Finance Data and Strengthening Crisis Warning
Capabilities

6

Corporate Management Trends – Internal Audit Responses

6Internal Auditor’s Response to Common Deficiencies in the Preparation of IFRSFinancial Reports

6

Continuing Education Course for Internal Auditors of Public Offering Companies

12

Discussion on Application of “Commercial Judgment Rule” and Legal Obligationsin Economic Crimes (Intermediate)

3

Members of administrative units who have received anti-corruption training
Total number of members of administrative units

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

44

Risk Management

Risk Management Policies

Material Risk Management and Responses

ASPEED Technology is a fabless IC design company. Having adopted a “Fabless Lite 2.0” operating model,

To respond to unpredictable risks that emerge during the course of business and to be on guard against

our workforce primarily consists of R&D personnel, management and marketing staff, and administrators.

the negative effects of internal and external environmental changes, ASPEED Technology established risk

We do not routinely engage in foundry production processes. Changes to the global economic environment

management units that are overseen by the Sustainability Committee, under the Board of Directors. Afterand the potential internal and external operational impacts of sustainability risks underscore theconsidering various business continuity standard requests and following internal evaluations, the risk

importance of preventing problems before they emerge. Knowing how to avoid problems and respond to

management units implement control and management measures. The management framework primarilyrisk is critical. ASPEED Technology therefore formulated the Risk Management Policy, which uses corporate

involves monitoring, analysis, and confirmation of risks by finance, business, administration, environment

governance, environmental, and social topics as a foundation to identify risks that could have an impact on& safety, and information security units. They then report on these risks to management and launch

the Company’s sustainable development. The Company then crafts follow-up response strategies that are in

response mechanisms. Investor relations, media relations, and public relations staff communicate theseline with primary areas of concern for our stakeholders as well as international trends.

issues externally at the appropriate time in order to ease any concerns of stakeholders. By identifying risks,managing organizational and operational risks, and formulating countermeasures, related staff members
play a critical role in risk control.

・Biannual meetings to confirm procedures・Annual inspection of risk management
and business operations planning

Board of Directors

・One practice drills every three years
・Periodically convey risk managementawareness concepts to each department

FinanceBusiness

Risk Identification

Sustainability Committee

The Risk Management
Team, which is under the
Sustainability Committee,
is responsible for
identifying risk factors
related to business
operations.

Risk Management Team

Administration andEnvironmental Safety
and HealthMaterial Risk
Management andResponse

Information Security

Internal Control
Audits and Tracking

・Assess the impact ofrisk factors on business
operations.
・Formulate countermeasuresfor handling risks that
could have a significant
impact on operations.

Track risk management items
and report to the Board of
Directors on a biannual basis.

The risk management task force identifies risk, manages risk, and launches risk management response mechanisms.
Contact: csr@aspeedtech.com

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

45

Risk Identification
ASPEED Technology carries out risk identification, analysis, evaluation, response, and tracking based on the Company’s internal organization and core business as well as external environmental conditions. Scope covers corporate
governance, environmental, and social aspects and other sustainable development areas. In 2022, seven material risk factors we identified were: “market risk”, “operation/technology”, “occupational safety”, “information security”, “publichealth”, “climate change risk” and “supply chain management”. In response to climate change risks, we have incorporated them into the risk identification procedures in 2022, and revealed four core elements: “governance”, “strategy”, “riskmanagement” and “indicators and targets” based on the recommendations of TCFD to identify the material risks and opportunities that climate change may cause to ASPEED. At the same time, the risk team regularly considers domestic andinternational climate change topics, trends, and laws, as well as carbon emissions, and continues to manage and respond to the risks and opportunities posed by climate change shocks.

Risk Type

Risk Factor

High risk transaction

Responsible Unit

Operating Impact

Response

Finance & Legal unit

Engaging in high risk, highly leveraged investments,
lending of funds to others, endorsement ofguarantees and derivatives, etc., where the risk ofdefault may result in financial loss

・The Company has established relevant management measures. The relevant transactions shall be carefully evaluated by thefinance and accounting, legal and relevant units for necessity and reasonableness, and are subject to effective approval before
proceeding, in order to minimiseminimize the possible loss

Finance & Legal unit

Impact of interest rate and foreign currency
exc h a n ge rate c h a n ge s o n i n co m e a n d
expenditures, and financial profit or loss

・Long-term monitoring of international conditions and investment markets. Follow appropriate risk standards when evaluating
investments and hedging interest and foreign exchange rates.
・In terms of exchange rate management, the import and export transactions of ASPEED Technology are mainly denominatedand calculated in USD, so changes in the NTD/USD exchange rate have certain impact on the profit and loss of the Company.
Exchange gains (losses) accounted for (1.47%) and 3.69% of net operating income in 2021 and 2022, respectively, showing thatchanges in exchange rates did not have a material effect on profit and loss. The Company has dedicated personnel to collectinformation on changes in international exchange rates and keep in contact with the foreign exchange department of thebanks, making reference to the professional consulting services provided by them, and timely currency exchanges to reduce risk
exposure in response to the Company’s cash requirements. At the same time, depending on the position of foreign currency,
hedging is carried out in accordance with the Operating Procedures for Asset Acquisition or Disposal when necessary.

Finance & Legal unit

Financial risk and brand impact arising from litigation
dispute・Trim disputes or litigations through contract review process developed by the Legal Management Division and engage external
professional lawyers to assist

Intellectual property
risk

Finance & Legal unit

Loss of assets and profits due to infringement ofintellectual property rights

Workplace hazards

Administration andenvironment safety& health unit

Market risk

Operation/
Technology

OccupationalsafetyChange in interest rate
and foreign currency
exchange rate

Contractual dispute

About This Report

Unsafety at workplace affecting employees andoperations

Foreword

About ASPEED
Technology

・Comply with relevant laws and regulations on intellectual property rights, apply for and maintain and advocate the protection of
relevant intellectual property rights* For details, please refer to the section of “Intellectual Property Rights Protection and Preservation”

・Continue to obtain ISO14001 environmental management system certification
・Regularly conduct hazard identification and risk assessment and control the identified results

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix46

Risk TypeOperating Impact

Response

Cyber attacks and information outflows will affectthe protection of internal and external intellectual
property information, causing serious problems
such as disrupted operations, financial damage
or violation of laws and regulations. Long-term
damage to goodwill and customer relationships
will affect the foundation of sustainable corporate
development

・Continue to obtain ISO27001 information security management certification
・Set up firewalls, conduct relevant information security education and training, and continuously convey information security
concepts to employees
・Regular annual internal audit on information security and all-staff drill
・Implement information security recovery drill to test the effectiveness of the information system recovery process and ensure
the continuous operation of the Company’s systems due to natural disasters or malicious attacks

Large-scale infectious
Risk management unit
disease outbreaks

Large-scale infectious disease outbreaks lead to
production suspension, which in turn lead to a
reduction in the Company’s productivity, disrupted
operations, shortage of materials in the supply chain
and reduction in the pulling power of customers,
resulting in operation loss

・The pandemic prevention team formulates plans and implements pandemic prevention policies according to pandemic changes
・Conducting group work drill and emergency drill for epidemic upgrade warning・Strengthen environmental disinfection, announce and put up signs to remind the factories to continue with epidemic prevention
・Encourage employees to take vaccines to increase protection

ClimatechangePower and water
Risk management unit
disconnection

Operational inefficiency caused by power and water
disconnection, failure of personnel to work properlyor endangering their safety at work may also cause
financial impact.

・Operation-oriented contingency measures for the building where the corporate headquarters is locatedSupply chain
management

Price hikes due toinsufficient production
capacity, or unexpected
Risk management unit
natural disasters such as
earthquakes, typhoons,and explosions

Abnormal events may cause interruptions in the
supply of materials, suspension of the processing
factories, and delays in delivery to customers, forwhich the Company is liable for liquidated damages

・ Perform short-, medium- and long-term inventory risk assessments
・ If necessary, procurement-led emergency meeting is held for inventory control

Information
security

Public health

Risk Factor

Responsible Unit

Unexpected informationinterruptions causedby hacker attacks or Information security unit
major natural disasters

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Technology* For details, please refer to the section of “Information Security”* For more details on climate change, please refer to the section of “Climate Strategies—TCFD”* For details, please refer to the section of “Sustainable Supply Chain Management”

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix47

Internal Control Audits and Tracking
ASPEED Technology weighs risks against the Company’s overall objectives in order to formulate operational
level goals then uses the risk design control points of each goal as a basis of internal control procedures.
The Company also formulates annual internal control audit plans that are implemented and reviewed
following approval by the Audit Committee and the Board of Directors. In 2022, there were no major defects
in the internal control audits.

Other
management
and control
procedures

Sales andpayment
collection cycle

Procurement andpayment cycle

Computerizationand information
handling procedures

Production cycle

Audit Scope
Payroll andpersonnel
cycle

R&D cycle

Investment
cycle

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Technology

Innovation fora Sustainable Future

Corporate
Governance

Financing cycle
Real estate,buildings, andequipment cycle

Shared Social
Prosperity

Green
Operations

Appendix48

Operational Performancerecovered rapidly. However, with strong corporate resilience, flexible market knowledge and stable customer

Operational performance and financial performance

net profit after tax amounted to NTD2.106 billion in 2022, representing an increase of 43.21% and 60.40%,

・201 Economic Performance

respectively, as compared to 2021. In 2022, ASPEED Technology’s gross profit margin was 65.09%, operating

・207 Tax

profit margin was 46.85%, and EPS was NTD55.72, continuously hitting a record high. In response to thepost-pandemic trend and global development, we will strengthen our corporate resilience, continue toOperational performance data

Performance Indicators
2022 Resultsconsecutive years of growth since its establishment. Operating revenue amounted to NTD5.210 billion andPositive Impact

Identified Impact Result
GRI Topic-specificStandards

relationships, ASPEED Technology still achieved a new milestone in operations, and set a new record of 18

・ Record revenue and profit for the year: annual revenue of NTD

invest in R&D and innovation, quickly and flexibly respond to industry and market changes, and continue tomaximize the benefits of shareholders to give back to the public.

5.210 billion, up 43.23%, and profit of NTD2.106 billion, up 60.38%,
maintaining the performance of annual growth since inception

2023 Objectives

・Maintain annual revenue and profit growth

Financial Performance (Unit: NTD100 million)

・Enhance product diversification and increase product mix beyond BMC
products

Operational Strategies
Since its establishment, ASPEED Technology has been focusing on niche market in which it specializes in
SoC development. It used to focus on BMC and imaging-related SoCs and it has gradually integrated its
products with two major platforms: Cloud & Enterprise Solutions and Smart AV Solutions, expanding productmix and efficiency. In order to better understand the market demand and listen to customers’ opinions, we
jointly develop new product applications suitable for customers. We have added product marketing project
management personnel for both product solutions, who are responsible for keeping abreast of market
trends and understanding customers’ needs, and continue to expand customer breadth and the depth of
single customer products.

Operational Performance
In 2022, the global semiconductor industry experienced a capacity contraction in the first half of theyear and a sudden demand recession in the second half of the year, and the overall economic situation

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Technology

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Governance

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Prosperity

Green
Operations

Appendix

49

EPS (Unit: NTD/share)

2022 Annual Sales of Main Products (Unit: thousand pieces)

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Foreword

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Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix50Dividend Policy
ASPEED Technology’s dividend policy is to allocate not less than 10% of its distributable earnings toshareholders’ dividends each year, taking into account current and future development plans, the investment
environment, capital requirements, domestic and foreign competition, and shareholders’ interests. If theaccumulated distributable earnings are less than 50% of the Company’s paid-in capital, the dividend bonus
shall not be distributed. Dividends are paid in cash or stock; the ratio of the cash dividend, however, shall be
not less than 10% of total distribution.

Dividend Distribution（Unit: NTD, percentage）

Major products as a percentage of sales (Unit: NTD100 million, percentage)

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Governance

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Prosperity

Green
Operations

Appendix51

Taxation Policy
The daily taxation administration operation and management policies of ASPEED Technology are carriedout by the Finance and Accounting Division. The Finance and Accounting Division is responsible for theunderstanding of the changes in domestic and foreign taxation regulations, which is assisted by theCompany’s internal Legal Management Division and external taxation advisory agencies, and adopts
prudent policies for taxation management. We uphold the principle of transparency and integrity of
information, and shoulder social responsibilities by paying reasonable taxes in major operating countries.
・Operational decisions are made in compliance with regulations and the impact of tax risk is assessed
・Transactions not in low tax countries for tax avoidance purposes
・The tax information in the financial report is disclosed in an open and transparent manner and inaccordance with relevant regulations
・The connected person transaction follows the principle of transfer pricing report published by OECD todetermine the connected person transaction following OECD requirements for Base Erosion and Profit
Shifting (BEPS) to generate profits for companies with economic substance・Transparency of information and compliance with regulatory requirements of the tax authorities in the
major locations of operations
・Carrying out appropriate risk management and strengthening the tax management capabilities of the
major responsible units

Tax information for the past three years （Unit: NTD1,000, percentage）

Financial data

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Foreword

About ASPEED
Technology

Key Results

2020

2021

2022

Average

Net profit before tax

1,226,793

1,609,767

2,615,114

1,817,225

Income tax expense

222,104

296,842

509,500

342,815

Income tax rate

18.10%

18.44%

19.48%

18.86%

Income tax paid

221,957

245,789

347,668

271,805

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix52

Climate Strategies—TCFD

Climate change risk and opportunity management

Identification process for climate change-related risks and opportunities

Global warming and extreme climate have caused significant operational impact on enterprises. The

ASPEED Technology carries out matrix analysis on the potential impact of various climate change risks,challenges of climate change faced by enterprises are currently one of the most urgent issues. Since 2022,

including the direct or indirect physical impact of extreme climate, and the risks and opportunities of

ASPEED Technology has voluntarily adopted the proposed guidance on Task Force on Climate-related

the impact of transformation with regulations, technologies or market demand. Based on the analysis

Financial Disclosures (TCFD), and revealed four core elements: “governance” , “strategy” , “risk management”

results, we propose corresponding response measures, assess the financial impact of climate risks andand “indicators and targets” in accordance with the recommendations of TCFD to identify the material

opportunities, thereby adjusting the relevant internal management mechanism, and establishing an open

risks and opportunities that climate change may cause to ASPEED Technology, and put forward relevant

and transparent communication channel with various stakeholders to reduce climate change risks and grasp

response strategies. In April 2023, the Company officially signed as the “Task Force on Climate-related

the opportunities brought by climate change. ASPEED Technology identifies the risks and opportunities

Financial Disclosures (TCFD)” Supporter. We pay close attention to the trend of global climate changebrought by climate change based on two or more climate change scenarios. Through climate change risk

and international development. At the same time, we also incorporate climate change issues into the key

and opportunities workshops, we engage divisional heads and key members groups to conduct climate

material issues of corporate sustainable development, and evaluate the impact and impact time within thechange research, discussion, information compilation, and review of climate risks and opportunities.

Company. Meanwhile, based on the results of the analysis, we continue to control and respond to the risks
and opportunities posed by the impact of climate change.

The specific identification process for risks and opportunities related to climate change is shown as follows

Setting a climate change scenario

Assessing operational
environmental impact

Identify climate risks
and opportunities

Setting two climate change scenarios:
SSP5-8.5: Hit up to 6°C
SSP1-2.6: Hit up to 2°C

Assessing the two climate change scenarios
Operating environment for ASPEED Technology
Impacts and shocks on stakeholders

Building a climate risk and opportunity matrix,
Identifying high risks and opportunities ofclimate change

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Appendix53

After the completion of the identification of climate risks and opportunities, we identified 3 high-risk factors
and 3 high-opportunity factors in 2022 based on the “possibility of occurrence” and “degree of impact”

Description of risks associated with climate changeof risks or opportunities. The risk matrix and opportunity matrix of ASPEED’s climate change in 2022 is as

Summary table of climate change risks identification

follows:

Risk
prioritization

Type of risks

1

Transition risks – market

Rising raw material costs

Short-term

2

Entity risks

Extreme changes in climate patterns have
led to severe disasters

Medium-term

3

Transition risks – policies
and regulations

Increased regulation of existing products
and services

Medium-term

Climate change risk matrix

Risk factor

Time of occurrence
assessment

Degree of impact*definition of time horizon: short term: 2022-2024, medium term: 2024-2030, long term: 2030-2050

Risk 001: Rising raw material costs
Impact scenario:
Due to climate change and global energy crisis, the difficulties in mining and production of silicon raw
materials have increased, and the mining area may face the problem of power limitation and shortage ofelectricity. As a result, the cost of silicon raw materials increased greatly. Due to the increase in raw material
costs and product costs, the Company’s competitiveness has been affected, resulting in a decrease in revenue.

Risk impact
oriented
assessment
Financial
impactoriented
assessment

1. Delayed delivery of goods: Production capacity and raw materials require higher prices
and longer production cycles than ever before.
2. Unstable supply: Increase in raw materials and production costs, coupled with insufficientlabor capacity, have directly and indirectly affected output, leading to longer delivery
time and unstable access time.

Increase in production costs

Possibility of occurrence

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Operations

Appendix54

Risk 002: Extreme changes in climate patterns have led to severe disasters

Risk 003: Increased regulation of existing products and services

Impact scenario:

Impact scenario:

Due to the increasing severity of extreme weather, the adverse climate such as the increased intensity andDue to the policies and regulations of various countries, customers require that the specifications ofduration of typhoons have caused flooding and power outages, affecting the operations of the Company

products need to be adjusted in the direction of low energy consumption, energy saving and power saving,and its foundries As a result of the severe weather:and in line with green product regulations, so that the products can meet the regulatory specifications.

1. Decrease in production capacity, damage to equipment and difficulty in transportation of foundries led

Unusual changes in policies and regulations led to higher technical requirements for customer demand andto reduction in supply or prolonged delivery

higher uncertainty, resulting in higher costs for the Company; if the product design adjustment fails to meet

2. Power outage caused damage to laboratory equipment, disrupted testing, and impacted productdevelopment progress; slower revenue on delayed output of the Company’s products

Risk impact
oriented
assessment
Financial
impactoriented
assessment

1. Capacity decline: Capacity loss is caused by the outbreak of severe climate, the floodingthat results in staff being unable to return to work, and cargo transportation being hindered.
2. R&D loss: The power outage caused damage to laboratory equipment, disruption of
testing, and impacted product development progress.

the requirements of policies and regulations, it will have a negative impact on the internal and external
stakeholders of the Company and affect the Company’s goodwill.

Risk impact
oriented
assessment

Failure of meeting the requirements resulting in the revision of product specifications
may affect the schedule of sales: the market demand for energy saving and carbon
reduction is getting stronger, the power consumption standard of the end products is
becoming more stringent in all countries, and the demand for products with low power
consumption is increasing. If the products do not have enough competitiveness in termsof power consumption, the orders will be reduced and the time for product specification
modification will be extended, affecting the revenue.

Financial
impactoriented
assessment

Decrease in revenue

Increase in operating costs, decrease in revenue

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Green
Operations

Appendix55

Response strategies for climate change-related risks
Climate change opportunity matrix

Response strategies to address rising raw material cost:

2.Enhance customer relationship maintenance: We will improve customer brand loyalty, strengthencommunication to enhance customers’ willingness to cooperate, and reduce the impact of sales loss.

Degree of impact

1.Reduce the risk of supplier disconnection: We will explore the possibility of introducing multiple
suppliers in the future, stabilize the source of raw materials and supply demand, negotiate with suppliers
and increase the amount of raw material stock and inventory turnover.

Response strategies to tackle severe disasters due to extreme changes in climate patterns:
1.Set up an operation continuity plan: We will introduce remote work process and necessary tools,
regularly conduct education and training, so that employees can understand the on-going operation
mechanism, be familiar with the remote work process and collaborative tools, so as to cope with thecontingencies and maintain productivity.

Risk Response
Strategies

2.Reduce the risk of supply chain disruption:(1) Optimize the supplier evaluation system: We will assess the operation continuity plan of thefoundries, the prevention and contingency measures of physical disasters, and conduct regular audits.
(2) Capacity replacement plan: We will select areas with high terrain or low rainfall intensity to build adiversified network of foundries to facilitate the relocation of capacity in the event of a disaster.
3.Establish a cloud backup mechanism: In conjunction with the ongoing digital transformation projectof ASPEED, we will establish a cloud backup mechanism for the R&D of key software and importantdata, so that the R&D will not be disrupted by physical disasters, and R&D data and information will be
kept at any time to avoid the loss of R&D investment caused by the interruption of data collection ortransmission.
4.Maintain continuous laboratory operations:(1) Uninterrupted power supply: We will import a smart power or uninterrupted power system, and set
up self-owned emergency generator.
(2) Improve energy efficiency: We will purchase energy-saving and power-saving electrical appliances
which will automatically switch to standby mode or shut down when idle.
(3) Set up a backup laboratory: We will evaluate the location of the backup laboratory and consider
replacing part of the existing laboratory work with cloud services.

Possibility of occurrence

Response strategies to strengthen the regulation of existing products and services:
1.Keep abreast of product regulations and trends: Through the taskforce for product regulations andtrends in the Legal Unit, we will regularly track the latest product-related regulations and trends, and conduct
regular staff education and training sessions to discuss the trends so as to assess the existing productrevision needs and response strategies, such as re-obtaining certifications that meet product standards.
2.Strengthen raw material management: Raw material components used in supply chain production
must conform to regulations and ensure compliance with the requirements of EU REACH and RoHS. Suchrequirements shall be included into the supplier evaluation system for regular supervision.
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Green
Operations

Appendix56

Description of opportunities associated with climate change

Opportunity 002: Changing consumer preferences
Time of occurrence
assessment

Risk
prioritization

Type of opportunities

Opportunities factor

1

Opportunities – products
and services

Developing and increasing low-carbon goods
and services

Medium-term

2

Opportunities – products
and services

Changing consumer preferences

Short-term

3

Opportunities – resource
efficiency

Adopting more efficient and effective ways
of working

Medium-term

Impact scenario:
In response to the international trend of energy conservation and decarbonization, the demand for remote
work and online services has increased significantly. The server industry has a clear growth trend, and thequality requirements of video equipment have also increased. The demand for server management chips

Opportunity 001: Developing and increasing low-carbon goods and services
Impact scenario:
Following the global trend of decarbonization, the Company has expanded its low-carbon product range,

and audio/video chips has been on the rise. Through changes in market trends and consumer preferences,the demand for the Company’s products will continue to increase, which will increase the Company’s revenue
and enable the Company to continue to grow.

Opportunities
impactoriented
assessment

such as high performance and low-energy low-carbon chips, development of cloud or AI-related application
chips, and chips that can be used for smart energy saving. By developing low-carbon products, theCompany will improve its market competitiveness, increase market share and raise revenue.

Opportunities
impact oriented
assessment

Financial impact
oriented
assessment

1. Developing low-carbon products to improve market share: With the global trend of
decarbonization, low energy consumption products help the increase in demand for
products with enhanced decarbonization efficiency; by developing relevant products,
the Company can improve its market competitiveness, increase market share and raise
revenue.
2. Expanding new low-carbon and green domain applications: Expanding productapplications to low-carbon and carbon reduction-related applications can increase
product demand and revenue.

Increase in revenue

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Technology

Financial impact
oriented
assessment

1. Developing new low-carbon opportunities: due to customers’ increasing demand forremote management of devices, the market has not only applied remotely-managed
chips to server products, but also expanded to more product applications; such as AI
servers, storage devices, network switches and edge computing devices.
2.New applications developed in response to green environment: in response to thetrends, product are used in virtual reality and remote control related fields to expand
product opportunities.

Increase in revenue

Opportunity 003: Adopting more efficient and effective ways of working
Impact scenario:
In response to the requirements of decarbonization, the Company will promote the digitization of its systems
and processes and optimize the product development model. The systematic or cloud approach allows theCompany to reduce carbon emissions, carbon expense and operating expenses.

Opportunities
impact oriented
assessment

1. Operational process optimization: process optimization reduces resource wastage andmanpower cost consumption
2.Improving operational effectiveness and increasing efficiency

Financial impact
oriented
assessment

Cost reduction

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix57

Response strategies for climate change-related opportunities
Execution strategies to develop and enhance low-carbon products and services:

machine demonstrations with customers. For example, the new products have added a wide

1.Optimize existing products: We will use green energy and green raw materials in the development

range of industrial specifications, and the product operating environment temperature has

process, reduce the carbon footprint of products, increase the proportion of the Company’s existing low-

evolved from previous commercial specifications to being able to support the industrial

carbon products and services, and improve the overall revenue contribution of low-carbon products andspecifications to meet the environmental temperature needs for different clients and markets.

3.Planning and development of functions in new products:We will plan the market positioning

services.

of new products, functional specifications, the process of use, and set the timetable for the

2.Develop low-carbon products to enhance competitiveness:
・We will introduce green design concepts in the R&D process, take low energy consumption and power-

development and release of new products, formulate marketing plans and arrange live-

saving design as the main design logic, such as software and system integration; and optimize themachine demonstrations with customers. For example, the new products have added a wide

process to reduce energy and resource consumption and waste.

range of industrial specifications, and the product operating environment temperature has

・In order to reduce power consumption, ASPEED has continued to invest in the development of low-

Risk Response
Strategies

evolved from previous commercial specifications to being able to support the industrial

carbon chips by applying more advanced technology in new product development, gradually advancing

specifications to meet the environmental temperature needs for different clients and markets.

from 40 nm to advanced technology, and adopting 12 nm technology in the latest 8th generation of

4.Stable supply in response to market demand: We have recruited supply chain management

remote management product AST2700. The new product will feature 3-4x of the original performance,

professionals and product packaging and testing professionals as the counterparts with

but power consumption per chip will decrease.

・We will recruit outstanding R&D engineers with the concept of sustainable design, and invest a fixed

Risk Response
Strategies

proportion of revenue each year as R&D budget, so as to continuously meet the needs of customers by

upstream suppliers to improve suppliers’ delivery quality and delivery rate.

Execution strategies to adopting more efficient and effective ways of working:keeping track of key R&D achievements.

1.Operational process optimization: We will introduce digital transformation and electronic
process to assist the optimization of the operational process of warehouse, finance andExecution strategies in response to changing consumer preferences:business divisions, so as to avoid duplicated processes to reduce labor costs and waste of

1. In-depth understanding of market demand: The marketing team members, together

resources caused by errors.

with business units, regularly conduct in-depth interviews with existing customers andnew customers; to ensure that the functions planned in the new generation of remote

2.Digital management: We will establish a digital management platform to integrate data

management products can fully meet the needs of servers and storage devices, networkand optimize the enquiry methods, including the financial gross profit margin, the accounts

switches and edge computing devices and be modified in a timely manner.

receivable system, the warehouse shipment management system, etc., to accelerate theenquiry of personnel, reduce the time for personnel data consolidation, and ensure the2.Planning and development of functions in new products: We will plan the market positioning

accuracy of information; we will establish an electronic verification system to improveof new products, functional specifications, the process of use, and set the timetable for theoperation efficiency, reduce paper-copy costs, and plan to import all data into the BI systemdevelopment and release of new products, formulate marketing plans and arrange live-

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Technology

for data analysis.

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

58

Climate change-related indicators and targets
Climate risks

Management targets
Reduce the direct impact ofclimate disasters on work

Extreme changes
in climate
patterns have led
to severe disasters

Management indicators
Improve the implementation frequency of employees’ remote workflow
Improve the implementation frequency of workflow/cloud-based system
Laboratory RTO established: Time target for disaster recovery

Improve the disaster response
capacity of laboratories

Laboratory RPO established: Time target for systems & data recovery
Regularly implement laboratory emergency disaster protection education and training
Regularly implement laboratory emergency disaster protection drill

Improve the disaster response
capacity of foundries

Increase the proportion of foundries that develop operation continuity plans
Regular updates on laws and regulations related to products

Increased
regulation ofexisting products
and services

Ensure that the Company is
responsive to the latest legal
and regulatory requirements

Regularly confirm whether the work process is updated in accordance with productrelated regulations
Regularly confirm whether the requirements of suppliers are updated in accordancewith product-related laws and regulations
Regular sharing of product-related laws and regulations

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Governance

Shared Social
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Green
Operations

Appendix59

Information Security

Information Security and Data Protection

Information security and privacy
Identified Impact Result

Negative Impact

GRI Topic-specificStandards

418 Customer Privacy

Performance Indicators

As part of a commitment to managing information security, in addition to theintroduction of Cortex XDR 2.0 in 2021 to prevent hack virus extortion, ASPEED
Technology obtained ISO27001 information security certification in May 2022.
With the “Information Security Policy” and 23 information security-related
standards, these standards manage and protect the Company’s information

・Check for infringements of customer privacy rights and data leaks

・Strengthen the Company’s information security management,
employees’ education and training

2022 Results

protect personal information and customer privacy, and uphold the rights andinterests of stakeholders. At the same time, the Company actively publicizes
information security measures to raise awareness among employees.

・0 cases of customer privacy infringement and information security
hazardFor internal management, ASPEED Technology established a comprehensive internet and computing

・In 2022, the Company received a perfect score on the customer

security network to maintain vital corporate functions, such as manufacturing operations, procurement

・Obtained information security management system ISO27001

ensure adequacy and effectiveness. Besides enhancing efficiency and backing up important information

・100% of all employees completed information security education and training

computer systems to prevent external network attacks that can cripple our systems. These measuresinformation security audit

・Information security education training increased to twice a year

2023 Objectives

security and reduce information security risks in our network, in order to

・No cases of customer privacy infringement and information security hazard

・Promote the implementation of information security management inand sales, and accounting. The Company periodically reviews and assesses cybersecurity architecture to
stored in our databases, in an evolving landscape of internet security threats, the Company must protect
prevent theft or hacking attacks on our trade secrets, intellectual property, and confidential information. For
external suppliers and cooperative partners, ASPEED Technology achieves mutual assurance of information
confidentiality by periodically confirming that suppliers have comprehensive information security

accordance with ISO27001 information security management systemmanagement and backup plans in place. Furthermore, ASPEED Technology protects confidentiality bystandards

requiring 100% of employees to sign a nondisclosure agreement. For some projects and cases cooperative

・Annually conduct two sessions of information security education and training

・100% of all employees completed information security education and training
・System inspection and upgrade for digital transformation

partners must also sign an NDA to guarantee that each parties’ information is protected.

In 2022, ASPEED Technology was not aware of any material information security incidents or cyberattacks,
nor had it been involved in any legal proceedings or regulatory investigations related thereof. The audit andassurance ﬁrm Deloitte conducted an information operations audit on the Company in 2022 that covered
the following areas: understanding the customer's computer processing environment, general computer
controls, and application system automated controls. It did not uncover any problems.

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Appendix

60

ASPEED Technology’s Information Security Policy and Goals

Information Security Management Methods

For business to proceed smoothly and to ensure confidentiality, integrity, and availability, ASPEEDTo evaluate whether information security management goals are met, ASPEED Technology adopted theTechnology formulated an information security policy that all employees must follow.

following management methods:

Quantitative Indicators
Information Security Policy
Strengthen information security management systems and acquire third party certification.
Strengthen information security and prevent hacker, virus, and extortion attacks.
Implement an information and data backup plan that involves local and remote storage.
Effective management of information assets, including continuing to implement risk analysis andadopting suitable prevention measures.
Protect information systems to prevent unauthorized access and maintain confidentiality.
Prevent unauthorized changes to protect the integrity of the information system.

To ensure information is secure, information can only be accessed after an authorized unit grants
permission and confirms its confidentiality status. Each year there shall be zero cases of restricted orconfidential information leaks.
To ensure accuracy and integrity of customers’ products and data, each year there shall be zero cases ofunauthorized information alterations.
To ensure continuity of the Company’s information operations and services, drills and operations tosafeguard continuity plans are conducted at least once a year.
To investigate how information security incidents can cause system, processor, or network abnormalities
that interrupt operations and services, the Company’s information services availability must meet thefollowing requirements:
1 Basic operational service time shall be at least 99% of annual working hours.

Ensure that authorized users can access information systems when needed.

2 Interruption of key services shall not be more than three times per quarter; each interruption shall not
be more than four working hours.

Adhere to all information rules and regulations.
Establish disaster recovery plans for core information systems so that operations can continue after amanmade or natural disaster.

To ensure that the Company’s information security measures and regulations meet current laws, regulations,and contractual requirements, each year the Company shall conduct at least one internal audit.

Strengthen information security education and training to raise employee information security awareness.
Establish information security management and advocacy programs for suppliers.

Qualitative Indicators

Conduct audits and manage the review process to ensure continued improvements to information

Regularly review the authority of the Company’s information security organization staff to ensure theimplementation of related duties.

security management systems.

Provide information security training that is suited to employees’ position and responsibilities.
Strengthen the Company’s environmental safety; adopt suitable protection and authority control measures.
Ensure that information is not inadvertently leaked or sent to unauthorized third parties.
Strengthen access controls to prevent unauthorized access and ensure that the Company’s information has
an appropriate level of protection.
Consider security needs when conducting routine monitoring of information systems and safety managementof system vulnerabilities.
Confirm that all information security incidents and security vulnerabilities are reported to management via
appropriate channels and that suitable investigation and treatment follows.

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Appendix61

To support ISO27001 information security certification, the information security education and training

Information Security Disaster Response Planfor employees of ASPEED Technology were held twice a year in 2022 to strengthen information security

To prevent natural abnormal occurrences or manmade disasters from affecting information security andawareness. The aim is for ASPEED Technology’s information security management to provide a more secureenvironment for employees, customers, suppliers, and cooperative partners.
The implementation and achievement of ASPEED Technology’s information security in 2022 are as follows:

disrupting operations, ASPEED Technology formulated the Information Security Disaster Response Plan. By
following the plan, analyzing risks, analyzing impacts on operations, and developing recovery strategies,
when the Company faces information security disasters, interruptions to key operations will be minimized.
These measures will prepare the Company for potential problems and achieve sustainable operations.
Besides periodically backing up data, ASPEED Technology established a remote backup plan that includes

23 Standards

periodic system and information backups between the data centers at the Company’s Hsinchu headquarters

Completed documentation for information security-related standards

and Taipei office. If there is a minor information security breach or damage to the ERP system hardware,
restoration is completed within 12 hours and a remote backup of the data is available. If an unavoidable

1 Timedisaster occurs which causes severe damage to a data center or ERP system hardware or software, or leads

Each year the Company holds at least one information security management review meeting

to loss of data, the Company shall conduct equipment repairs and replacement within 24 hours and prepare

2 TimeIn response to the increasing demand for flexible hybrid working mode and remote work-from-home

Each year the Company holds at least two information security education and training meetings

the remote data backup.

operation, information security staff conducted internal inventories and upgraded equipment. They created
information security defense mechanisms that backed up information systems and guarded confidential data.

100%

Advances included stronger VPN security, universal two-factor authentication, and one-time passwords. Drills

All 106 employees completed 2 hours of information security education and training classshowed the resilience of information security protections even when employees work from home.

25
A total of 25 employees of relevant divisions completed 2 hours of information security management
system document-based class

12 information security promotion
at least one information security promotion per month

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Appendix

62

Plan

Recovery Procedure

Information Security Disaster Response Plan

Local recovery

Remote recovery

Hsinchu headquarters data center

Taipei office data center

Time

Within 12 hours

Within 24 hours

Scope

If an unavoidable natural disaster orother situation causes minor damage
to the ERP hardware or data loss, these
operating procedures are used tocomplete local recovery and remote
backup.

If an unavoidable natural disaster orother situation causes significant damage
to the data center or the ERP hardware
or software, or if it leads to data loss andrecovery is not possible within 24 hours,
these operating procedures are used tocomplete remote backup.

I f t h e re i s m i n o r d a m age to t h ehardware, backup items are used tomake repairs when available. For further
damage the emergency repair system isused to acquire additional needed partsfor fast repairs.

Launch the Taipei data center main
backup and database recovery system.
Use these to restore the damaged
system to its original state after repairson the data center and equipment arecompleted.

Location

Response Measures

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Appendix63

Product Quality
Management・Response to Customer Returns and Claims: If a salesperson or quality control staff receive a return or

Product Quality Management
In order to provide customers with high-quality products and services, ASPEED Technology adopted ISO
9001 Quality Management Systems standards and passed ISO 9001:2015 certification. Under ISO 9001, theCompany continues to improve, with revisions, additions, or deletions made at any time based on customer
needs, international circumstances, or legal rules and regulations. In 2021, based on the European Union’s
REACH regulation, the Company closely monitored Substances of Very High Concern (SVHC) regulations
to adjust internal requirements for green products. The electrical appliances, electronics and related
technology products sold by ASPEED in 2022 are in compliance with the relevant environmental protection
laws and regulations, such as the RoHS Directive amendment instructions, (EU) 2015/863, Halogen free,
IEC 61249-2-21, and ECHA SVHC REACH Directive 233 (EC 1907/2006). It is expected that in 2023, dedicatedpersonnel will be introduced to take charge of green products and the review and response to international

claim, he or she must complete an online claim management form that describes the situation to relevant
departments while requesting that the departments begin improvement procedures. If the customer is

not satisfied by the improvements, the departments shall follow through with additional improvements
until the customer is satisfied. The departments shall also follow up with the customer to ensure that the
improvements are conducted effectively.
In addition to the above procedures, the electronic digital system introduced in 2022 has greatly improved
the efficiency of quality control and customer feedback, including inventory control and quantity analysis,
delivery inspection system, production management inspection system, etc. It is expected that the DCC will
be simultaneously optimized in 2023 with the digital transformation project.

relevant regulations. The Company also integrated an ERP computer operations system, which integrates
all processes from order taking to manufacturing, material procurement, material inventory, quality
management and financial management. In 2022, with the internal digital transformation project of ASPEED,
all systems have been gradually integrated electronically. At the same time, in order to assist various
departments to effectively conduct analysis and prediction, we introduce the BI (Business Intelligence)system, build a database, and timely provide accurate statistics and analysis data, so that the managementof each department can immediately master and control.
・Quality control in accordance with the PDCA model: We set up the “Management Procedures for Nonqualified Products”, and improve the control of defective products and related handling procedures

arising from the planning of suppliers, the Company’s internal inspection and customer returns, as well as

Quality Policy

customer complaints.

・Supplier Quality Abnormality: When quality control staff discover a nonconformity with a supplier’s

No major quality issues.

product, they record the problem in the supplier defective product report then handle it with the supplier.

・Abnormality Detected During Internal Testing: When quality control staff discover a nonconformity

Product Innovation

during IQC, they record it in the internal testing abnormality report then begin management andAttention to Quality

communication procedures.

Customer Confidence

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Technology

2022 Results

Innovation fora Sustainable Future

Corporate
GovernanceNo discrepancy between the order and delivered quantity.
No errors on the delivery documents.
Introduction of electronic digital system and optimization of ERP system.
The customer satisfaction rate was 94.74%, and the Company provided timely
responses to customer opinions and recommendations.

Shared Social
Prosperity

Green
Operations

Appendix64

Customer Service Management
Besides providing excellent quality products, ASPEED Technology maintains close communications withcustomers so that we understand their needs and are always prepared to fulfill them. This approach isthe best type of customer service. The Company’s business units provide specialized services that aredesigned to support all types of customers. One of our distinct advances is including R&D engineers in ourcommunications system, so that field application engineers do not need to act as bridges. When customers
have a product design problem, they can quickly receive a direct response from R&D staff, and R&D staff
benefit from getting direct feedback from customers. This model creates close cooperation between
business units, R&D engineers, and customers. We believe that providing prompt assistance to customers
is critical. Moreover, the communications process helps R&D engineers to gain a better understanding ofmarket needs and receive customer feedback. For these reasons, in annual customer satisfaction surveys
the Company gets high scores for “speed, clarity, and effectiveness” when responding to problems. We
also established a customer service management unit and a quality control unit, which support productsales and solve after-sales problems. Each of these units contributes towards guaranteeing quality at
every stage from production to delivery while maintaining open communications channels with customers.
Since 2021, the Company has launched digital transformation projects, and also improved the process ofcustomer service and strengthened service quality. The order inquiry system and shipment inspection system
can respond to customer inquiries more quickly, check accounts and reconcile accounts receivable withthe reporting system, and import into the BI system for quick analysis and judgment to reduce unexpected
situations with customers.

Department

Service Description

Marketing

Conducts periodic visits and calls to customers, communicates about product needs, serves as abridge between the customer and R&D departments, confirms case openings, manages cases, tracks
R&D progress, provides product software and firmware, and examines customer satisfaction.

Customer
Service

Manages procurement and sales procedures, optimizes the service process, answers and solves
problems, conducts return merchandise authorization (RMA), and provides after-sales service.

Quality Control

Product design quality management, management of the plan do check at process, and ISO9001
quality management.

Product
Development

R&D personnel directly receive customer feedback and quickly respond to product related questions.

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Appendix65

provide written feedback as much as possible so that they can clearly grasp the customers’ thoughts. In
2022, a total of 37% of domestic and overseas customers conducted written feedback, which also enabled
us to better understand the actual needs. To respond more actively to green products, human rights,
environmental protection and other related issues in the semiconductor supply chain, since 2021 ASPEED
Technology signed 100% of sustainability-related supplier pledges requested by customers and responded
to sustainability-related surveys. The Company participates in the Carbon Disclosure Project, as requested
by customers, as well as water surveys and the Responsible Business Alliance. At the same time, as a
ASPEED Technology places great importance on customer satisfaction. At the end of each year, sales staff

member of the responsible semiconductor supply chain, ASPEED Technology also requires suppliers to sign a

are responsible for managing an online customer satisfaction survey. At the same time, for a more precise

corporate social responsibility pledge.

understanding of customers’ expectations and opinions, we make immediate improvement every year basedon customer feedback received in the previous year, and have fine-tuned the goal of customer satisfaction
survey for different years. The target for 2022 is as follows:

Maintain a customer
satisfaction rate of over90%

Encourage customers toprovide written feedback
to accurately grasp theirneeds

Achieve a return rate of
100% for key customer
surveys

In 2022, a survey questionnaire was distributed to both existing and potential customers at home andabroad, with a satisfaction rate of 94.74%. There were no unsatisfactory responses to the questionnaire.
Sales staff investigated and compiled opinions from the customers that said the Company’s performance

Customer Satisfaction
and Opinions orComplaints

Explanation

Satisfaction Survey:
Distributionof Online
Questionnaires

In 2022, the overall satisfaction rate was 94.74%. Timely handling of all customer
opinions and doubts included the following:
1.Conducted calls, visits, or teleconference meetings with domestic customers. Whennecessary, the Company arranged for engineering or R&D staff to provide assistance.
2.Used email or online meetings to communicate with foreign customers. Whennecessary, the Company arranged for engineering or R&D staff to provide assistance.
3.A total of 37% customer questionnaire responses were submitted in writing, and the
responsible sales staff directly communicated with customers to understand thesituation and properly handled.

Complaints MadeVia the Corporate
WebsiteCustomers can write to sales@aspeedtech.com to engage in timely communication
with the Company and to express opinions. In 2022, most communication via thisemail address, which is found on the Company’s website, involved price inquiries frompotential customers or opinions expressed by non-customers. The Company quickly
responded to each email.

Complaints MadeVia Phone

In 2022, the Company did not receive any complaints or opinions by telephone.

was only “ok”, then arranged for meetings with quality control and R&D units in order to quickly respondto and solve all problems our customers faced. All customer needs received a quick solution and response.
In order to better understand the real needs and opinions of customers, ASPEED encourages customers to

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Appendix66Sustainable Supply Chain
Management

Supplier Management Policy

Supplier Audit Management

As a fabless IC design company, ASPEED Technology deeply values supply chain partners. We therefore

ASPEED Technology conducts annual onsite or written supplier assessments. Suppliers must score at least

established management policies covering all of our suppliers. In recent years, the Company gradually made75 points to pass; those who fail must make improvements within a limited time period then apply forsustainable management a factor in supplier management. In this way, as we grow with our suppliers, wereassessment. If a supplier fails reassessment, it no longer qualifies to be a supplier of the Company. The

can also demonstrate a commitment to society, governance, and the environment. Each year, the Company

assessment process includes quality control, design procedures and management, document records,

conducts supplier audits. New items added to the audit included environmental, human rights protection,

storage, and inspections, as well as green product management and ESG. If a serious quality problem occurs

and anti-conflict mineral pledges, with related information published on the corporate website. Keywith an approved supplier, ASPEED Technology increases the proportion of sampling tests in accordance

suppliers are also requested to sign ASPEED Technology’s corporate social responsibility pledge.

with the inspection and testing management procedures. Rigorous reviews continue until improvements arecompleted. If following guidance, a supplier is still unable to make expected improvements the supplier loses
its supplier qualification. In 2022, the Company completed assessments on six suppliers, including annual
assessments of five critical suppliers and an assessment of one new supplier. All six passed.

Supplier Management and Evaluation Process
The General Administration Department convenes quality assurance and product development units to form

ASPEED Technology supported the Company’s green pledge, human rights protection, and conflict-freean evaluation team, which conducts an onsite evaluation of the supplier based on items contained in theminerals policy by issuing a public statement on the corporate website proclaiming that the Company andsupplier initial evaluation form. Suppliers who score at least 75 points are registered as qualified suppliers.

the Company’s suppliers shall uphold their social and environmental protection responsibilities. They shallWhen an onsite evaluation is not possible, or for international suppliers, the supplier can conduct a self-

not accept minerals from conflict zones or illegal mines. The Company required that all suppliers commit toevaluation. The evaluation team reviews the results to determine whether the supplier should be approved.

implementing these measures.

Supplier Management of ASPEED Technology

ASPEED Technology’s suppliers can be divided into two main categories: critical suppliers and generalbusiness suppliers. Critical suppliers provide main raw materials, production, and testing. Considering theimportance of this group towards the Company’s operations, we only choose world-class manufacturers andsuppliers and confirm that they meet our standards for social responsibility, green environmental protection,
occupational safety and health, labor rights, human rights and sustainable operation management
solutions. They must follow the Code of Conduct Responsible Business Alliance (RBA), and priority shallbe given to suppliers that pass ISO 9001, ISO 14001, or ISO 45001 certification. In addition, the Company
requests that suppliers produce and publicly release annual sustainable management reports to support
audits and assessments. The Company also monitors to see whether the suppliers have any incidents thatcause reputational damage or face any fines from international customers. ASPEED Technology has started
to ask suppliers to sign corporate social responsibility pledges. In 2022, 60% of key suppliers signed, andthe Company aims to increase this response rate.

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Appendix67Declaration of Minerals Conflict-Free

Type ofConflict-Free
MineralManagement
Strategy

Antimony

Misc. in products

Not a CMRT listed in the RBA. ASPEED Technology regularly asks for suppliermanagement.

conflict minerals information. Compliance is included in annual supplier evaluations, which enables us to

Cobalt

EMRT_1.11

EMRT Report specified in the RBA.

implement our conflict-free procurement program. Suppliers shall also sign ASPEED Technology’s corporate

Tungsten

CMRT_6.22

CMRT Report specified in the RBA.

PalladiumUse in products

Not a CMRT listed in the RBA. ASPEED Technology regularly asks for suppliermanagement.

To manage the Company’s conflict-free minerals policy, ASPEED Technology supports the “responsible
minerals procurement” position. ASPEED Technology shares the Company’s conflict-free minerals policy

Explanation

with suppliers and insists on full compliance. Each year the Company examines suppliers’ Conflict Minerals
Reporting Template (CMRT and EMRT). Suppliers must identify their smelting source. All of their purchases
must be made from conflict-free and qualified mineral suppliers, and they shall faithfully disclose theirsocial responsibility pledge and confirm that they will adhere to its conflict-free minerals policy. In the eventthat we discover that products or raw materials from suppliers contain conflict minerals from non-qualified
sources, we take the necessary measures to stop use. ASPEED Technology issued a public declarationof support for responsible minerals procurement on the Company’s corporate website and seeks to fully
implement this social responsibility. In 2022, ASPEED Technology’s management of conflict-free minerals:

See the corporate website for information on ASPEED Technology’s green pledge

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Appendix68In addition, considering the potential for natural disasters and other unavoidable situations such as

RBA Code of Conduct
To comply with the Responsible Business Alliance - RBA Code of Conduct, each year, ASPEED responds tocustomers’ requests for the annual SAQ (Self Assessment Questionnaire) on RBA Online. Meanwhile, ASPEED
Technology is committed to ensuring that working conditions at the Company and in the Company’s supply
chain are safe; that workers have a safe and healthy work environment and are treated with respect andearthquakes, typhoons, or fires, the Company joined with turnkey service providers in building reporting
channels that can be used to immediately obtain related information about suppliers’ condition, in orderto quickly understand when work can resume and respond by transferring orders if needed. The Company
conducts follow-up tracking until the situation is resolved and normal production resumes.

dignity; and that business operations are environmentally responsible and conducted ethically.

Supplier Risk Management
ASPEED Technology is a fabless IC design company that manufactures all products through turnkey service
providers. The providers’ process technologies, quality, yield, capacity, and delivery time are key factors
to whether a product is successful. Therefore, when deciding on the turnkey service provider, besides
considering the completeness of its silicon IP, its use of ISO certified suppliers, and its APR technicalcapabilities, which foundry, assembly house and testing house it is in a strategic alliance with is even more
important. ASPEED Technology built long-standing and stable partnerships with members of the Company’s
upstream and downstream supply chain. The Company cooperated with foundry partners (turnkey service
providers) on building a wafer bank, with the aim of maintaining a four-to-six-month inventory to ensurethat there are no supply disruptions. For product assembly and testing, the Company’s turnkey service
providers sign capacity guarantee agreements with first rate domestic assembly firms on the Company’s
behalf. Orders are distributed to multiple suppliers to reduce risk. Due to the impact of the COVID-19
pandemic, many enterprises have been unable to meet their delivery lead times. ASPEED Technology, on
the other hand, has relied on close partnerships with suppliers to uphold the quality and smooth deliveryof products, without facing any severe impact caused by overall economic conditions. In order to avoid therisk of packaging substrate capacity constraint and long lead time in the overall production operation, we
have added alternative packaging substrate suppliers to diversify the risk, and have successfully delivered
samples and mass production in 2022.

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Shared Social
Prosperity

Green
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Appendix69

06

Shared Social Prosperity
Viewpoint – Talent Sustainability and Industry Development 71
Employee Composition 72
Talent Development 76
Employee Care 79

Social Participation 86

Viewpoint
Talent Sustainability and Industry Developmenton our employees and have gradually increased more lectures and courses on how to adjust work pressure
and relieve their living pressure. We believe that by creating a healthy and happy working environment forour employees, we can help them to develop their potential and create a win-win value.
The diverse composition of talents has been helpful for stimulating development of each other as well
as divergent design and R&D elements. Therefore, in terms of talent recruitment, we expect to be able toattract a diverse group of people. However, with in-depth analysis of the manpower recruited within theenterprise and the composition of the talent pool in the Taiwan science and technology industry over the
past few years, it is found that the composition of manpower in the semiconductor industry is relatively
single and there is a general lack of diversified science and technology talents. Therefore, in planning

In the semiconductor industry in which ASPEED Technology is based, outstanding talents are always our

corporate social investment projects this year, we think how to combine corporate core with social welfare
sponsorship and invest resources in sustainable diversity and inclusion and the development of female

most important asset. In recent years, as the semiconductor industry has thrived, how to successfully retain

science and technology talents. We have also invited National Tsing Hua University STEAM School thattalents through active recruitment and attractive talent retention policies has become the focus of thepossesses a strong educational background to collaborate on the continuity and impact of this project.

development of ASPEED. ASPEED believes that in order to attract talents, apart from competitive salary andbenefits, it is important to create an environment that allows employees to maintain work-life balance andprovide comprehensive education and training.
ASPEED Technology insists on the R&D of niche products, with a long product development cycle andlifecycle, and a time frame for product project development. At the same time, we continue to recruit R&D
personnel to ensure that sufficient R&D manpower, and maintain the normal commuting pattern of ouremployees as far as possible, which could break the long-standing impression that the public has spent
more time in the technology industry. Apart from a flexible working model, ASPEED employees can also
adjust their working hours flexibly. In recent years, we are aware of the impact of physical and mental stress

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Appendix71Employee Composition

Comprehensive Labor Structure
ASPEED’s success today is attributable to its employees’ passion for work. All employees are important

industry and further cultivate their interests. Based on the results of the discussion, a series of social

partners for our continuous growth. Therefore, ASPEED has been constantly cultivating its R&D capabilities

investment participation activities in cooperation with tertiary institutions will be implemented in 2023,

and has long been actively selecting and cultivating talents. It not only pays attention to the growth ofhoping to develop diversified professional and technology talents for the industry through the perspective

the number of employees, but also values the structure and quality of manpower. In addition to providingof education and knowledge sharing, so as to implement gender equality.

competitive remuneration and benefits, the Company is also committed to creating a happy and friendly
working environment and caring for families of employees, so that employees can always be carefree anddevote their passion and creativity into work. ASPEED had 106 employees (full-time employees) in 2022,with an average age of 40.74 and an average tenure of 5.17 years. Most of the employees are experienced
and have grown with the Company for a long time. 80.19% were male and 19.81% were female. In 2022,
the total number of supervisors was 44, of which 6 were female, accounting for 13.64% of the total
number of supervisors. The professional talent pool in Taiwan has long been dominated by male, and thestaff composition of ASPEED Technology is also dominated by R&D staff, which is one of the factors forthe higher proportion of males in the Company’s internal workforce. In terms of the number of men andwomen in the management sales units, the ratio of men to women is 1:1, which is quite average. Overall,the Company recruits talents mainly based on the job nature and needs. ASPEED Technology is committed
to implementing corporate gender equality, diversity, equality and inclusion, and considering the balanceof the gender ratio of R&D talents in Taiwan. Since 2022, it has been adhering to the principle of equality
in talent recruitment, providing gender-friendly and fair treatment of workplace measures, and improving
the cultivation of campus talents. It has also started to pay attention to the issues of investing in female
science and technology talents. A total of two sustainability talent workshops have been held to encourage
employees to participate in the discussion of how to exert the influence of ASPEED to promote the issue

From the perspective of the structure of professional background, among the staff, R&D staff accounted for65.10% of the total, and those with a Doctoral and Master’s degree accounted for 73.58%, fully reflecting thedetermination and strength of ASPEED Technology on R&D of innovative technology. In terms of the position
distribution, ASPEED had a total of 69 R&D personnel (including R&D and design personnel in the productdevelopment division as well as the quality verification and system design division), and 37 salespeople andquality control staff in 2022. Among them, the number of business and new business development personnel
increased from 6 to 9, which was in line with the trend of ASPEED Technology to expand its business in recent
years. In terms of distribution of work locations, since ASPEED Technology is headquartered in Hsinchu, morethan 90% of the employees are based in Hsinchu, Taiwan, the major business hub, while there are other work
locations distributed in Taipei, where R&D and technical support services are provided. In order to provide
employees with a more flexible working model, employees can also choose to work in the headquarterin Hsinchu or Taipei office based on their own needs during the epidemic; the employment rate of senior
management from local residents is 100%. By providing an excellent working environment, ASPEED Technology
will allow outstanding talents of the Company to cooperate and grow together, accelerate the pace of
product development and the timeliness of technical support, so as to bring innovative values to full play.

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Appendix72

Labor structure in 2022
(Unit: number of people, percentage)

Education(Unit: number of people, percentage)

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Appendix73

Number of ASPEED’s Employees by Age

Number of ASPEED’s Employees by Gender and Position

Number of ASPEED’s Employees by Position and Age(Unit: number of people, percentage)(Unit: number of people, percentage)(Unit: number of people, percentage)* Managerial positions are defined as those above manager level

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Appendix74

Apart from new recruitment, turnover rate will also affect the stability of manpower structure. The average

Number of ASPEED’s Employees by Position and Age (Unit: number of people, percentage)

turnover rate of ASPEED Technology in 2022 was 12.40%, higher than last year. After reviewing all theemployees who left the company last year, it was a normal turnover in the industry and there was no｜ Gender ｜particular reason for concern. In addition, the accession rate of 20.66% in 2022 also increased significantly
compared with the previous year, showing the continuous active recruitment of talents by ASPEED
Technology. In addition, ASPEED Technology has maintained a high-growth operational performance inrecent years. In the future, we will continue to attract employees by improving the overall remuneration andbenefits, considering flexible working models, and improving career planning for them.

｜ Age ｜

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Appendix75

Talent Development

Good talents are essential to the IC design industry. ASPEED Technology is a mid-size IC design company
with about 100 employees. The average industry qualification of each new employee is very advanced
and complete, so not only can they immediately put their expertise to work, but they can also grow andbring greater benefits to the company by sharing their experience with each other; in addition, each R&D
personnel can work independently, and is very flexible in terms of talent dispatching project requirements.
ASPEED Technology’s talent recruitment management is conducted regularly by the Administration Division
through analysis of the knowledge, skills, capabilities and personality traits required for the position, andthe recruitment policies are developed based on the core skills required for each position.
Its recruitment channels include:•Professional personnel consulting companies: Through the personnel consulting companies, we carryout analysis and screening to accurately and effectively grasp the talent in demand, and increases thecompany's steady source of high-quality talent•Staff referrals: We welcome our staff to refer outstanding industry talents. ASPEED Technology will offer abonus of NTD100,000 to its staff upon successful referrals•On-site operations: We regularly cooperate with top local universities in Hsinchu City to connect andinteract with targeted talents, expanding the image and influence of ASPEED Technology
Apart from actively recruiting outstanding external talents, ASPEED Technology also continues to cultivateinternal talents. In addition to integrating internal and external resources to create a continuous anddiversified learning environment, the Company assists employees and managers to review past performancethrough training, development and performance systems, so as to set future work goals and development
directions as the basis for learning and development. We attach great importance to the long-term careerplanning of employees, and help employees explore new development directions and personal potential,
so that employees can grow with the Company. In 2022, in response to the sustainable trend and the needto strengthen the resilience of the enterprise, we added training courses for employees to further study,
including integrity and ethics, anti-corruption, and information security education and training. In addition,in consideration of the fact that employees are the most important assets of ASPEED, how to relieve andadjust to mental and physical stress is also an important issue in the modern workplace. In 2022, relevant
general education courses on emotional stress adjustment were also added.

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Shared Social
Prosperity

Green
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Appendix76New Employee
Training

Designed to meet each department’s requirements, ASPEED Technology introduced a senior mentor
program for new employees. The program provides basic training and employment guidance to assist new
employees in quickly adapting to the team.

Professional Skill
Training

Identify the professional training needs of each department then provide the training to employees tostrengthen their professional competence.

General Training

Skills training that embodies the core values of the Company and teaches employees knowledge they needin their everyday work and lives. Includes training required by government regulations and professional
skills that employees must possess, such as regular labor safety and health lectures and fire drills, etc.

Sustainable
Awareness
Training

Two times a year on information security education, integrity and ethics, anti-corruption, and climatechange. New theme courses will gradually be added going forward.

Emotionalrelated Courses
for Employees

Including career training and emotional stress management courses, so as to take care of employees’
physical and mental health in an all-round way.

Management Skill
Training

For employees with management potential, the Company provides training
courses to build management thinking, cultivate strategic analysis, and foster
organizational planning capabilities. Our objective is continuity of organizational
development and team operations.

Celebrity Lectures

A series of lectures planned to provide opportunities for employees to hearfrom top thought leaders in various fields to broaden their horizons and inspire
new thinking.

Workshops

Through experiential learning, employees join situational activities to learn how
to incorporate business management theory into their regular work, leading tohigher quality, better results.

Self-study andDevelopment

Self-study and Development: ASPEED Technology offers an open, diversifiedstudy platform for employees to access professional online courses that can raise
their professional skills. The Company also fully subsidizes tuition for external
training courses.

Other Training

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Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix77

Professional Certificates Obtained by Employees, 2020 – 2022
Year

Total Hours of Employee Training (Unit: Hour)

Category

NumberCertificate Name
Policy explanation and internal control management practices relating to the competentauthorities’ efforts to improve companies’ financial report compilation capabilities

2020(Unit: Number of Employee)｜ Total number of employees ｜Finance

Responses by internal auditors to problems frequently encountered when compiling IFRS financial
reports

5

Continuing education of the principal accounting officers of issuers, securities firms, and securities
exchanges
Annual continuing education class for accounting supervisors
Analysis of Key Corporate Finance Data and Strengthening Crisis Warning Capabilities
Professional Development of Principal Accounting Officers of Issuers, Securities Firms, andSecurities Exchanges
Finance

From Corporate Governance 3.0, a Practical Analysis of How Companies Build Risk Management
Development Blueprints
Deciphering Financial Statements to Uncover Corporate Fraud and Scams(Unit: Hour)｜ Average training hours per employee ｜Key Crisis Warnings in Financial Reports

2021

Analysis of Key Corporate Finance Data and Strengthening Crisis Warning Capabilities
Professional Development of Principal Accounting Officers of Issuers, Securities Firms, andSecurities Exchanges
Others10

Safety and Health Occupational Education and Training for First Aid Practitioners
Occupational Education and Training for Managers and Supervisors of Occupational Safety and Health Affairs

2020

Occupational Education and Training for Managers of Fire Safety
Continuous Training Programme for Accounting Supervisors(Unit: Hour)｜ Total hours of training ｜20 21

Finance

Professional Development of Principal Accounting Officers of Issuers, Securities Firms, andSecurities Exchanges (Video)
Corporate Fraud Detection and Prevention Practice: Legal Responsibility, Identification and Big Data Analysis
Corporate Decisiveness - Good Management and Protection of Trade Secrets2022

Legal Risk Workshop on Related Party Transactions

2022

Basis of Corporate Labor Law Compliance - From the Five Functions of Human Resources Management 1
Compliance Basis of Corporate Labor Law Compliance - From the Five Functions of Human Resources Management 2
E-Course on Anti-corruption and Whistleblower Protection (Statutory Recognition)*The number of people refers to the total number of people who underwent training that year (includes employees wholater left their job)
*In 2022, managerial positions were defined as those above manager level

Compliance audit on CSR and Sustainability Reports
E-Course on Analysis of the PDPA (Statutory Recognition)
OthersAbout This Report

Foreword

About ASPEED
Technology

11

Innovation fora Sustainable Future

Head of Lead Operations

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix78

Employee Care

Compensation and Employee Welfare

Employee benefits and care
Identified Impact Result
GRI Topic-specificStandards

High-quality talent is the most important asset of IC design companies, so facing competition in the

Self Disclosurestalent pool of the semiconductor industry, ASPEED Technology not only provides employees with a highly
competitive, internally fair compensation and a diverse and rewarding welfare program, but also respects

・ 102 General Disclosures

employees’ autonomy and cohesion, and pays attention to employees’ self-practice, work environment and・ 201 Economic Performance

quality of life balance, so that the enterprise and employees can grow sustainably together.

・ 401 Employment

・ 403 Occupational Health and Safety

In 2021, ASPEED increased the number of guaranteed paid months’ salary from 14 months to 15 months,

・ 404 Training and Education

Performance Indicators

2022 Results

and the structural salary adjustment in 2022 also increased compared to the previous year. The overallsalary adjustment system allows employees to practically feel the importance that the Company attaches

・ Employee average salary

to talent retention. In 2022, the total amount of employee benefit expenses incurred by ASPEED Technology

・ Employee benefits

amounted to NTD522 million, representing a significant increase of 51.54% over the previous year, which

・In 2022, ranked the first among the TWSE-Listed Companies and sixth
among the TWSE- and TPEx-Listed Companies in terms of the averagesalary of all employees

full-time staff was NTD413 million, representing a significant increase of 76% over the previous year.
The average salary of non-managerial staff was NTD4.588 million and the average median salary was・Spent NTD522 million on employee benefit fees, which was an increase

NTD4.220 million, representing a significant increase of 72% as compared to last year. The average salary・Raised health check quota for employees over 40 years oldamong the TWSE- and TPEx-Listed Companies. Higher salaries do not represent the Company’s only policy

・Focused on employees’ physical and mental balance, and added

better all-round welfare for employees by comprehensively improving their compensation and benefits andof 51.54% over the previous year

・ Provided a quarterly departmental exchange fee of NTD800 per person
emotion-related courses

2023 Objectives

showed that we attach great importance to employee benefits. The total remuneration of non-managerial・Continue to raise the average salary level of all employees

・Enhance employee benefits (economy-oriented and physical and mental
health-oriented)

of all employees reached NTD4.552 million, ranking the first among the TWSE-Listed Companies and sixth
approach to improving employee benefits. In the future, we will continue to work towards the provision ofcreating a diversified and inclusive environment.

Performance-based Compensation System
ASPEED Technology’s incentives system was designed to support the Company’s operational goals andwas formulated based on our employees’ duties, professional knowledge and skills, and performance. The
Company’s employee assessments are 100% individual based, and employee rewards include the stipulationthat at least 8% of the Company’s annual profits (if any) shall be distributed to employees as a bonus, which

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Governance

Shared Social
Prosperity

Green
Operations

Appendix79

exceeds the standard of distributing at least 1% of annual profits as bonuses that is generally followed by othercompanies. From 2022 onwards, the senior executives of associates or above will receive performance dividends
in the form of restricted stock units (RSU). The Company will distribute 8% of the profits as general employee
performance bonus, which will be shared among all employees other than associates. The future compensation
plan will further incorporate sustainability achievement indicators into the performance compensation ofsenior executives in the hope of encouraging and implementing company-wide efforts toward sustainable
management. Salary raises and bonuses shall also reflect employee performance, in order for our compensation
system to have a stronger impact on the Company. We want to encourage employees to demonstrate team spirit
and show cooperation, so they can find innovative ways to generate more profits to share in the future.
To examine employees’ development and work performance results, ASPEED Technology established an

Gender Pay Ratio
ASPEED Technology’s employee recruitment and overall compensation system are based on individual
performance and professional skills. The Company adheres to work regulations and hiring policies that callfor diversity and tolerance as well as the provision of equal opportunities for all genders. In comparison of
R&D and non-R&D job types, the gender pay ratios of ASPEED Technology in 2022 showed no significant
difference in the ratio of male to female pay for the same job type. Taking entry level employees as an
example, the pay ratio between men and women in non-R&D category has been around 1:0.9 for threeconsecutive years, while the pay ratio between men and women in R&D category varies from year to year.
For example, in 2022, the pay ratio between men and women in R&D category was 1:1.23, showing that thesalary is not significantly related to gender but more to individual performance.

employee performance management system. Separate assessments are conducted for new employees during
their trial period and all employees for their annual performance review. Every employee who reported before
October 31st of the previous year, apart from those on fixed-term contracts, must participate in the performance
reviews regardless of gender, age, or work category. Employees’ managers and colleagues review goal
fulfillment as well as the values and capabilities that employees bring to their future career planning. Together,
they reach agreement on key areas of development to make personalized improvement recommendations that
support career development planning.

Welfare Items (unit: NTD)

Total salary of non-managerial, full-time
employees

2020

2021

2022

2022
growth rate

Salary (including RSU)
Insurance premium

2020

2021

2022

260,649,643

313,000,732

482,563,886

Employee benefit fees including salary, Labor
Insurance and National Health Insurance fees,
pension fees, and RSU (Unit: NTD100 million)

2.88

3.44

5.22

52%

(labor insurance/healthinsurance/group insurance)

11,215,125

13,783,174

15,686,363

Total salary（unit: NTD100 million）

1.84

2.34

4.13

76%

Labor pension 6%

5,777,478

6,447,041

8,138,192

Average salary（unit: NTD10,000）

236.1

283.1

458.8

62%

Community subsidies

10,019,879

11,070,700

15,375,342

Median salary（unit: NTD10,000）

198

245.4

422.0

72%

Total welfares

287,662,125

344,301,647

521,763,783

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix80Key locations of operation

Taipei City and Hsinchu City

High-Level Managers

President, Chief Operation Officer, Vice President, Assistant Vice President

Mid-Level Managers

Senior Manager, Manager

Base-Level Employees

Assistant Manager, Department Head, Senior Engineer, Engineer, Assistant Engineer,
Senior Executive, Executive

Percentage of Employees Undergoing Performance Reviews, 2020 - 2022

2020

2021

2022

Number of Employees

89

96

106

Employees Subject to Review

77

92

104

Actual Percentage That
Underwent Review

100%

100%

100%

* Employees subject to review are employees who reported to the Company before October 31st of the previous year
* Pay ratios are calculated to compare the difference in income between men and women for the same work. For
employees who reported to the Company between 2020 and 2022, pay in their first year was prorated to a full year’s
income (total pay/number of months * 15 = annual pay)

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Foreword

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Technology

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Governance

Shared Social
Prosperity

Green
Operations

Appendix81

Birth Incentives/Parental Leave

Implementation of Other Welfare Measures

In accordance with the Labor Standards Act, ASPEED Technology’s “Employee Attendance and Leave Policy”

ASPEED Technology offers compensation that is competitive on the open market while providing

state that the Company shall not terminate an employee’s labor contract when the employee is on parental

comprehensive benefits and care. The Company established the Employee Welfare Committee which isleave. Female workers qualify for a combined total of 56 days of maternity leave before and after childbirth.

made up of representatives put forward by each department. The committee is responsible for overall

An employee may take five days paid leave during a spouse’s pregnancy or within 15 days before, after,

planning and implementation of various welfare measures and employee care initiatives. Besides legallyor on the day of birth/miscarriage. The Staff Welfare Committee provides birth gifts to congratulate therequired welfare measures, the Company provides an excellent work environment and conditions and seeks

addition of a new member to an employee’s family. Employees who need to provide child care can apply for

to balance employees’ physical and mental health, with the goal of helping employees to achieve a positiveparental leave. Since the Company offers flexible work hours, employees can arrange their schedules in awork-life balance.

way that helps them to care for their families. In 2022, no employees applied for parental leave.

Employee Welfare Fees（Unit: NTD10,000）

Comprehensive Employee Insurance Plan
Besides enrolling employees in the government-mandated Labor Insurance and National Health Insurance,
the Company also provides employees with comprehensive group insurance that covers life, major illness,
accident and injury, medical, cancer, and disaster. When employees face an unexpected major illness or
accident, they can receive comprehensive medical care, financial support, and economic protection. In 2021,
the Company added vaccine insurance to the group insurance plan, so that employees and their families
could receive comprehensive health care and financial support in the event of an unpredicted, serious

Item

2020

2021

2022

Amount of Employee Welfare
Expenditures

1,002.1

1,107.1

1,537.5

Proportion of Employee
Welfare Expenditures

1.50%

1.53%

1.62%

Average Welfare Fees Per Person

11.5

11.5

14.5

sickness or death. For employees who travel overseas for business, we offer high coverage travel insurance
to provide even greater guarantees.

Retirement Planning
ASPEED Technology established the “Regulations for Employee Retirement” in accordance with the Labor*Employee welfare expenditures consist of employee welfare fees minus salaries, Labor Insurance and National
Health Insurance fees, and pension fees.
*Proportion of employee welfare expenditures refers to the percentage of employee welfare expenditures in ourbusiness expenses.
*Average welfare fees per person consist of employee welfare expenditures in 2022 divided by the average numberof employees per month.

Standards Act and the Labor Pension Act. Following enactment of the Labor Pension Act on July 1st, 2005,
all employees adopted the new retirement system. For employees who use the new retirement system, every
month the Company deposits 6% of their salary into their personal retirement account at the Bureau ofLabor Insurance. We also assist in voluntary submission in accordance with the wishes of each employee.

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Foreword

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Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix82

Annual Employee Welfare Items

Category

Content

Item
Domestic and international travel
Family day activities
Departmental activities

Activities
Wednesday afternoon tea time

Health・As a small pleasure for employees, every Wednesday afternoon we provide tea and treats that help to build camaraderie.

・End-of-year activities and banquet, Mid-Autumn Festival evening BBQ, and Company anniversary commemorative activities offer more chances for interaction between families.

Holiday activities

Holidays

・Due to the pandemic, in 2022 the Company offered flexible travel subsidy policies. Some alternatives included distributing department store or travel agency gift certificates, or converting thesubsidy amount to increase the value of health examinations. These substitute measures meant that employees and their families could still enjoy this benefit. If there are remaining travel grants
for the past three years, they will be deferred to 2023 for use by employees.
・For the annual family day, employees and their families are invited to join in free activities.
・The Company provided quarterly subsidies of NTD800 per employee for departmental activities, which could be used for departmental communication, cohesion development and other activities.

・We go beyond requirements of the “Labor Standards Act” by immediately offering new employees seven days of national holidays and annual leave, so our workers have more chances for vacation.
・Monthly accumulated flexible rest hours can be extended up to six months and are deducted on a ‘first-in, first-out’ basis.
・In response to the COVID-19 pandemic, the Company offered fully paid vaccine leave and disease prevention family care leave. Based on family need, employees could also apply for short-term
remote work privileges.

Flexible holidays
Flexible work hours

Annual health examinations

・We offer each employee one comprehensive health examination per year at a medical institution. For those who are 40 years old or older, the amount of health examination is increased to
NTD8,000, and for those who are 50 years old or older, painless gastroscopy is also provided.
・Each year, R&D personnel who use unleaded welding chemicals undergo lead toxin health exams to ensure that there is no impact on their health.

Arts and
CultureArts and culture, celebrity lecture hall

・We hold a variety of arts, culture, and celebrity lecture hall events to increase employees’ soft knowledge of topics from outside the workplace.

Subsidies

Activities, customs, education, foodand beverage, and various types ofcongratulatory gifts

・Domestic and foreign travel subsidies, wedding and birth congratulations, sympathy payments for injury/illness/hospitalization, funeral payments, birthday gift certificates, and language study subsidies.

Lifestyle

Discounts at designated shops

Other

Seniority based on past experience

About This Report

・The Staff Welfare Committee signed agreements for special discounts with more than 200 shops, which are available to employees who show their Company ID. The committee releases information onthese discounts on the Company’s welfare website.

・Employees fill out a staff information form that includes their experience. Their direct supervisor considers their experience in related industries and professional level in determining who should bedesignated for promotion.
・Past experience is weighted at 30%. Up to three years can be included as time of service when calculating vacation allowances.

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix83

impartial unit. Once a complaint is received, a sexual harassment and complaint handling committee will

Compliance with International Human Rights Norms
ASPEED Technology scrupulously abides by the laws and regulations of each location it operates while
following the principles of international human rights conventions, including upholding employees’ freedom
to form associations and opposing any behaviors that infringe on or violate people’s rights. In employment,

be established to provide employees with more complete protection. In 2022, there were no violations ofhuman rights related to employee rights, gender equality or sexual harassment.

the Company opposes any form of discrimination. ASPEED Technology’s work regulations explicitly state

Employee Care and Communications Channels

the policy of diversity and inclusion, which incorporates the principles of diversity, equality, and inclusivity:

Employees are the most valuable resource of ASPEED Technology. We have a high-quality labor force thathiring managers shall not discriminate against candidates on the basis of their race, class, language, views,

we provide with comprehensive employee welfare benefits. We care for our employees and their households

religion, political party, place of ancestry, gender, marital status, appearance, facial features, disability,

while supporting their lifestyles. By conscientiously heeding employee opinions, we use communication as

astrological sign, blood type, or past participation in a union. In the workplace, employees shall not be

a bridge for connecting employees’ work with the Company vision. Employees build trust with one another,

discriminated against on the basis of race, age, gender, sexual orientation, disability, maternity, politics, or

which encourages joint hard work and continued growth. ASPEED Technology’s organizational framework

religion. The objective is to foster a workplace environment that is equal, diverse and inclusive. All employees

has a linear design that supports internal free flow of opinions and open communications channels.

sign a labor agreement in accordance with the law, and work regulations stipulate that employees’ freedom

Employees share their opinions at the end of each year in Company satisfaction surveys as well as laborto assemble or form associations shall not be infringed upon, child labor shall not be used, and there shallmanagement meetings, digital mailboxes, and through the Employee Welfare Committee. These channels

be no forced labor. These rules protect workers’ basic human rights. If a special circumstance arises inmake it easy for employees to share their thoughts with the Company, so that the responsible Company

Taiwan where the Company must terminate a labor agreement with an employee, the Company prepares

unit can offer a timely response, fostering positive interaction and trust between labor and management.

and pays severance in accordance with the Labor Standards Act. In 2022, the Company did not have any

Creating a seamless communication culture and an active, enlightened work environment enables us toincidents of employing child laborers, forced labor and violation of human rights.

better guarantee workers’ rights and interests. In order to provide employees with a smooth and confidential
communications channel and to improve corporate governance, the Company has started planning awhistleblower reporting system in 2022, which will be supervised by a third party and independent directors

Equal Rights for Both Genders
In order to provide an equal working environment for all employees free from sexual harassment and takeappropriate preventive measures, ASPEED has formulated the “Gender Equality Implementation Measures”
internally, and provides employee complaint channels. If complaints are received, they will be immediately
investigated, and the investigation process should protect the privacy and other personal rights of theparties involved. In order to effectively prevent the occurrence of sexual harassment and maintain a genderequality environment, it is expected that in 2023, the “Gender Equality Implementation Measures” will befurther revised to improve the formulation of regulations on sexual harassment and gender equality. With
the whistle-blower mechanism, the reporting and complaint channels will be handled by a third-party

About This Report

Foreword

About ASPEED
Technology

to create a transparent and open working environment, and the system is expected to be completed in thefirst half of 2023. Regarding labor-management meetings, labor representatives serve a four-year term andare re-elected every four years through employee voting at labor-management meetings. These meetings
are held quarterly to facilitate two-way communication between labor and management in accordance withregulations. Main agenda items include an explanation of operational conditions from the previous quarter,a discussion of the current quarter’s Company activities, and other ad hoc motions. Employees are also
welcome to submit anonymous surveys before the meeting for managers of related departments to respondto during the meeting. In the labor-management meetings held in 2022, all issues raised by employees wereaddressed by department managers or administrative units.

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix84

ChannelContent

Frequency

Digital mailbox

Any opinions or topics relating to the Company

Ad HocLabor-management meetings

Labor-management relations, labor conditions

Quarterly

Employee Welfare Committee

Employee welfare topics

QuarterlyManager discussions

Work performance, goals and plans, career development

AnnualEmployee satisfaction survey

Corporate environment, administrative affairs support, various
welfare activities, and open questions about anything else
relating to the Company

AnnualAnnual prospect meeting

Company performance and communication of coming year
goals employees feedbacks

Annualprotect the Company’s internal environment and employee health and safety management, the Company
will increase the frequency of office area cleaning and disinfection and adjust various countermeasures
on a rolling basis depending on the actual situation or the outbreak of epidemics and infectious diseases.
In 2022, in response to the changes in the pandemic, the Company distributed masks, alcohol, and othermaterials to keep the environment clean and disinfected. For the group insurance plan, the Company added
vaccine insurance. The pandemic emergency response task force, formed under the risk management unitof the sustainable management implementation task force, regularly holds meetings and communicateswith employees. The task force also makes disease prevention announcements and awareness messages, inorder to help maintain a safe work environment for employees.

The Company adopts appropriate occupational safety and health measures while using risk management
concepts when formulating emergency response procedures. By attending occupational safety and healtheducation/training as well as emergency response drills, employees understand response procedures toreport and handle emergencies.
Occupational disaster education and training includes the following:

Management of Occupational Safety and Health・ One labor safety and health lecture for new employees

holds regular training courses in accordance with the “Occupational Safety and Health Guidelines” to・ One labor safety and health lecture every three years for employees

carry out safety and health protection. Various internal measures are in place to formulate emergency

・ Two fire drill and training sessions every year (together with the TFC One building drill)

response procedures for various emergencies through the concept of risk management. The Company

According to the occupational disaster disability standards of the Occupational Safety and HealthAdministration, Ministry of Labor, excluding traffic accidents outside the Company, in 2022 the employees

To prevent occupational disasters while protecting employees’ safety and health, ASPEED Technology

has a Class 1 manager of occupational safety and health who regularly reviews and promotes related
issues and environmental protection topics. The occupational safety and health management systemcovers 100% of employees. In 2022, the Company had 14 statutory non-employees, whose main tasks
included environmental cleaning, administrative work, short-term appointments for product import andand statutory non-employees of ASPEED Technology did not have any incidents of employee injury or illness.
There were also not any lawsuits related to employee health or safety violations.

export operations, etc. The Company adhered to the occupational safety and health policies of their

Minimum Notice Period for Operational Changes

employer. Since ASPEED Technology is an IC design company that does not directly operate a factory, in

When a major operational change or related measure that will have an impact on employees’ rights ordaily operations the Company does not handle substances or chemicals that are hazardous to health. Theinterests is set to occur, the Company must first discuss the matter with employees in a labor-managementlaboratory only conducts testing simulations, and the occupational safety and health manager primarily

meeting and notify affected employees in advance, in accordance with the law. The Company also provides

focuses on identifying hazard sources in the office environment. The only chemical type employees

related complementary measures, such as helping transfer employees to other departments or supporting

encounter is unleaded welding chemicals used by R&D personnel. In accordance with regulations,

government aid applications. In accordance with the Labor Standards Act, the Company gives employees at

employees who handle these chemicals must wear an N95 mask and the environment must be wellleast 10 to 30 days advance notice based on the employees’ years of service. In 2022, there were no labor

ventilated. Lead toxin health exams are conducted to ensure that there is no health impact. In order todisputes or dismissals.

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Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix85

Social Participation

Every year, ASPEED Technology contributes towards social participation, so that we can give back to thecommunity. Since 2013, social participation has mainly focused on “education” as a starting point. In thepast, education resources were targeted at disadvantaged areas in rural areas, including the infusionof hardware resources such as school repairs and equipment donations, as well as software resources
such as book donations and teacher training. In recent years, in addition to fulfilling its corporate social
responsibility, the Company also discussed how to integrate public welfare activities with the core businessof ASPEED Technology, and gradually set “Assist higher education and strengthen the cultivation of young
students” as our medium and long-term corporate social responsibility goals. We cooperate with first-rate
universities to keep top professors in Taiwan and encourages students to focus on academic research. We
aim to fulfill our role as a corporate advisor that provides direction for students engaged in life planning.
In 2022, besides providing manpower and resources, the Company contributed close to NTD13.7982 million
towards social causes, and in the future, we will continue working to fulfill our social objectives.

Infusing Resources into Rural Education
In ten years since 2013, ASPEED has invested in hardware and software resources for disadvantaged rural
areas. In 2022, we continued to cooperate with Global Views Educational Foundation to organize the “Sow
the Seeds of Reading to Give Children a Great Future” activity for the eighth consecutive year by donating
monthly periodicals to the elementary schools to junior high schools in the Taitung area. This project hasreceived enthusiastic feedback from students every year. By 2022, we have made donations to a total of
17 rural areas and 84 schools in the Taitung area, with more than 17,000 copies of periodicals benefiting
20,000 students. In addition to books and magazines donation, in response to the high turnover of teachers
in remote areas, ASPEED Technology is cooperating with Education Support for Taiwan to donate funds
in implementing the “Support Program for Teachers without Teaching Certificate”, with an aim to nurturing
non-certified substitute teachers in resource-poor areas, alleviating the plight of non-certified teachers in
Taitung, and providing students in remote areas with stable and quality teaching. We believe that educationis the foundation of everything. In the future, ASPEED Technology will continue to invest in rural education toshorten the education gap between urban and rural areas.

*In 2022, two workshops on sustainable talents were held.

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Foreword

About ASPEED
Technology

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Governance

Shared Social
Prosperity

Green
Operations

Appendix

86

ASPEED Technology formulated a Sustainable Influence Program for Diverse Technology Talents in 2022.

Strengthening the Cultivation of Young Students
In 2020, ASPEED Technology set the mid-to-long-term social corporate responsible target as “Assist higher
education and strengthen the cultivation of young students.” ASPEED Technology selected the nearby
National Yang Ming Chiao Tung University and National Tsing Hua University gradually invest educational
resources including:
1. ASPEED Technology’s “Junior Chair Professor” Sponsorship Program: The program is contributing
approximately NTD11.52 million over four years to sponsor junior chair professors at National Yang Ming
Chiao Tung University and National Tsing Hua University. The program recruits talented individuals andprovides monthly subsidies, which supports the local higher education environment by helping schools
to keep talented teachers in Taiwan. When connections exist between the young professors’ R&D plans
and ASPEED Technology’s business, the Company promotes further interaction. In 2022, this program
sponsored 6 professors from 2 universities, who taught at the Department of Chemistry, Institute ofService Science and Institute of Electronics Engineering at National Tsing Hua University, as well as the
School of Law, Department of Electronics and Electrical Engineering, and Department of Management
Science at National Yang Ming Chiao Tung University. Their R&D areas include electronics and electricalThrough face-to-face discussions with stakeholders, the ESG value, future pathway and the resourcesthat invest in sustainability, diversity, and inclusion, as well as the development of women in technology
of ASPEED Technology will be linked to industrial topics. In 2022, two workshops on sustainable talents
were held, at which a total of 8 volunteers, who were students from the College of Education at National
Tsing Hua University and employees at ASPEED Technology, showing interest in working on this project
were invited to join the discussion and work out the “Women in Technology and Tsinghua STEAM School
Education Development Project”. Projected investment of funds and volunteer resources will commence in
2023. By leveraging the core technological expertise of ASPEED Technology and the sharing of volunteer
engineers, together with the academic resources of the National Tsing Hua University’s College of Education,
we aim to launch relevant impactful activities targeting high school females. We hope this will inspire
potential female talents to develop an interest and ability in the field of technology and the project will be
continued and expanded to more schools in the future. Furthermore, ASPEED Technology will use the Social
Return on Investment (SROI) to plan, evaluate, record the impact of social participation and quantify the
impact, as a performance indicator for future social participation.

engineering, chemistry, marketing and legal patents.
2. National Tsing Hua University Sunrise Scholarship Program: The program provides financial support
to underprivileged students. Over the course of four years the Company is contributing NTD1.6 million,
providing aid to a total of four underprivileged students in 2022 to let them study without facing financial
concerns.
3. Academic Exchange: We offer a series of speeches, lectures, and course planning for both schools. One
aim of the program is to promote our brand as an employer among young adults who will soon enter
the workforce, in order to support future recruitment. In this way the program supports the Company’s
internal core talent development program and talent cultivation.

Sustainable Influence Program for Diverse Technology Talents
Talent is the critical resource for the development of semiconductor industry. ASPEED Technology recognizes
that talent development is a critical part of ESG. Therefore, actively recruit technology talent is the key pointof how ASPEED Technology maintain market dominating position. Considering the current gender imbalancein the semiconductor technology talent market, notably that the pool of women in technology is insufficient,

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix87

Timeline of Social Commitments

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix88About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix89

07

Green Operations
Viewpoint – Carbon Management and Low Carbon Action 91
Environmental Management 92

GHG and Energy Resource Management 95

Viewpoint
Carbon Management and Low Carbon Action

In recent years, the promotion of net zero acrossA S P E E D Te c h n o l o g y i s fa b l e s s I C d e s i g n

the globe has gradually become clearer. In

company. As a key upstream player in theJune 2021, the National Development Council

semiconductor industry chain with importantreleased the “Taiwan 2050 Net Zero Path Plan”,

customers worldwide, we focus on proactively

the new draft of the “Carbon Border Adjustment

responding to the net zero trend from the

Mechanism (CBAM)” approved by the European

perspective of responsible suppliers and striving

Parliament to include Scope 2 emissions into

to achieve the net zero goal for ourselves andregulatory control, and the proposal of the US

our customers together. Therefore, ASPEED

version of the “Clean Competition Act (CCA)” on

Te c h n o l o g y h a s s ta r te d to co n d u c t G H G

carbon tariffs. The net-zero targets announced

inspection and carbon reduction planning sinceby various countries represent a growing trend

2022 to fully understand our own emissions

in which global businesses are incorporating

status so that we can formulate a clear carbon

green and low-carbon initiatives as important

reduction path and net zero goal. Within ASPEED,

operational indicators, and it is necessary toin addition to incorporating the business secrets

accurately track progress in reducing carbon

registration system into green innovation-

emissions.

related projects, including green design, green

manufacturing, etc. in the future, we will also consider the possibility of linking the remuneration of senior
management with sustainable performance indicators, hoping to develop a green operation from theenterprise to support ASPEED’s next low-carbon action. This year, ASPEED Technology has determined its
carbon reduction plans and strategies. Its short-term targets include the purchase of renewable energy
and the promotion and application of SBTi scientific basis reduction targets. In the medium and longterm, the Company will further expand to Scope 3 GHG inventory, product carbon footprint and digital
carbon inventory. We will step towards the goal and review rolling adjustments every year based on actual
conditions and attention to changes in international regulations. In addition, as an important componentof the global data center and customer application, ASPEED Technology’s chips can reduce chip energy
consumption through our own R&D strength, which will benefit the decarbonization of the entire industry’s
upstream and downstream supply chain. In the future, we will focus on how to continuously improve theenergy consumption of our core products and to develop more revolutionary innovative applications to help
reduce carbon emissions during our operations.

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix91Environmental
Management

As a fabless IC design company, ASPEED Technology believes that the greatest contribution we can maketo environmental protection is to use our core capabilities of IC R&D and design to make products that use
less energy and produce less carbon. In this way, we can contribute towards a low carbon semiconductor
supply chain. At the same time, we integrate green concepts into our supplier management, so that we
can minimize the relatively high environmental impact of backend manufacturing. Internally, we focus on
strengthening energy saving and carbon reduction awareness among employees. We actively respond toenvironmental and emissions topics, and we adopt third-party GHG inspections and certification as partof our focus on green design, green supply, and green lifestyle. In this way we can contribute to making theenvironment better.

Green Design
Actively promote sustainable suppliermanagement, improve design process,gradually replace traditional surface ink
printing with chip surface laser printing
shipment, and reduce ink pollution andwaste in production process.

Invest R&D funds to encourage green
R&D and include the business secrets
registration system into green innovationrelated projects.
Use green design capabilities to makeproducts that save energy and support
the creation of a low carbon supply chain.

Environmental
Protection

Green
SupplyGreen
Lifestyle

Establish corporate decarbonization plans, conduct GHG inventory andgradually buy renewable energy.
In terms of operations, formulate environmental policies for daily office areas,
implement digital transformation, and promote sustainable cognitive courses toenhance the sustainability awareness of employees, so as to build a sustainablebusiness from the inside out.

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix92

Environmental Management

Mid- and Long-Term Environmental Objectives

Since passing ISO 14001 environmental management systems certification in 2017, each year ASPEED

Green Lifestyle:・Promote corporate decarbonization and buy renewable energy.

Technology has systematically managed the Company’s internal environmental protection system. The

・Take inventories of GHG emissions and gradually implement management measures andCompany built a routine environmental management system and established procedures for making
improvements. In addition, the Corporate Sustainability Committee meets biannually. The committee

carbon reduction objectives.

・Implement operation process with the introduction of digital transformation system to

examines environmental protection trends and regulations, and fully implements the Company’senvironmental management policies, in order to meet shareholders’ expectations towards the Company. As

achieve low-carbon operation and improve office efficiency.

・Save energy in the office; gradually replace lighting and water equipment.

a fabless IC design Company, internal environmental management primarily focuses on general water and・Continue to plan and promote sustainability-related education and training to raiseelectricity use, waste disposal and management, and green product specifications. Externally, the Company
focuses on expansion of sustainable supply chain management. ASPEED Technology makes every effort toemployees’ sustainability awareness.

・Respond to domestic and international environmental protection and carbon reduction

join suppliers in implementing environmental management.

initiatives, actively participate in international competition.

Green Supply:

Environmental Policies
Adhere to environmental
protection laws andregulations

Raise environmental
awareness

Foster earnest,
full participation

・Gradually adopt chip surface laser printing shipment to reduce pollution and waste

Prevent environmental
pollution

generated during production.

Continue to improve theenvironment

・Have suppliers sign ASPEED Technology’s corporate social responsibility pledge and increase
the signing rate.

・100% of the minerals used by our suppliers shall be conflict-free.

2022 Achievements

・Continuously increase local procurement of key raw materials.
Green Design:

100% Legal Compliance: Air, water, waste, energy management, noise, RoHS, REACH, HF.
Zero violations of environmental safety regulations.
Continue to implement ISO 14001:2015 environmental management systems and establish related environmental
management procedures.
Completed third-party GHG verification and certification ISO14064-1:2018.

About This Report

Foreword

About ASPEED
Technology

・Make each generation of SoC more energy efficient.

・Develop a simplified product design framework; consider design and manufacturing
improvements from every angle in order to further reduce pollution during manufacturing.

・Continuously invest in manpower and budget and strive for green innovation and R&D.
・Green innovation R&D embedded in the business secret registration system.

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix93

Preserve Local Procurements

Domestic Purchase Summary Table (Unit: NTD100 million)

ASPEED Technology is committed to local procurements. We are working towards raising the ratio of goods
procured in Taiwan year by year, which we hope can reduce the amount of carbon emissions that are
produced during the transit of raw materials. Procurement quantity by value is illustrated in the following
table:

TaiwanLocal
procurement
ratio

Type

Purchase amount

Local purchaseamountRaw Material Purchase

24.44

22.43

91.78%

General

8.95

7.8

87.15%

Green
Operations

Appendix

Key locationsof operation

List of domestic and foreign purchases in the past 3 years（Unit: NTD100 million, percentage）

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

94

GHG and Energy Resource
Management

Since ASPEED Technology does not operate a factory, internal energy management focuses on three

Currently, the focus of the operational resource management plan has been implemented. We areareas: everyday operations (water and electricity use), GHG inventory, and waste management. ASPEED

continuously promoting awareness of energy conservation and water saving among our employees:

Technology’s Sustainability Committee reports sustainability execution results biannually to the Board of
Directors. In response to environmental topics and reduction of GHG, we do not operate a factory, but

All lights are replaced with LED tubes

we still hope to play a role in the global climate change in the semiconductor industry chain. In 2022,

Distributed control of lighting to reduce electricity use

ASPEED Technology has completed the ISO14064-1:2018 third-party GHG inspection certification at theorganizational level, aiming to have a clear understanding of ASPEED’s GHG emissions, then gradually

During off-work hours (at a set time each evening) lighting is automatically turned off

develop a carbon reduction plan, and respond to the requirements of customers and investors to set

Encourage employees to replace in person visits with virtual meetings

carbon reduction targets, thereby ultimately achieving the net zero carbon emission target within the scopeof operations. In response to the carbon reduction plan, it is expected to be presented to the Board forapproval in 2023, and the carbon management project will be implemented gradually through the purchaseof renewable energy and the implementation of the SBTi SME near-term target planning and application.

Electricity
Year

Daily Operations
While ASPEED Technology does not operate a factory, the Company implements environmental policies
suited to the IC design industry and scrupulously abides by related standards. Resources consumedin everyday operations primarily consist of water used by employees, electricity, and gasoline fortransportation. The Company has a number of policies in place to save energy, reduce carbon, and cut
emissions, with the goal of lowering the burden on the environment. In 2021, to respond to the COVID-19
pandemic and adjustments in work models, the Company adopted a policy of encouraging customers touse online tools for visits and regular meetings. An added bonus of this policy was to promote ASPEED
Technology’s teleconferencing equipment. With the promotion of energy and water conservation in 2022,

Water

Electricity usage Electricity usage intensity

Water usage

Water usage intensity(kwh)(kwh/million piece)(metric tons)(metric tons/million piece)

2020

503,51343,909.74

3,443

300.252021

577,291

43,438.00

2,644

198.95

2022

546,640

34,749.22

2,692

171.11* Average fuel consumption for gasoline vehicles for transportation was set at 10km/L* Each type of carbon emission coefficient is referred to the EPA GHG Emission Coefficient Table 6.0.4

the total annual electricity consumption decreased by 5.61% and the per capita electricity consumption
decreased by 16.61% compared to last year despite the increase in staff, but the water consumption
increased slightly. In the future, the Company will continue to reduce GHG emissions and save both waterand electricity, as part of our efforts to protect the environment.

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Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix95

2020(Unit: mg/L)

Water
withdrawal
Total water
withdrawal

Water from third parties (total
volume)2021

Waste Management

2022

All
Regions

Areas withwater pressure

All
Regions

Areas withwater pressure

All
Regions

Areas withwater pressure

Since ASPEED Technology does not operate a factory, the Company mostly produces general non-hazardous

3.443

0

2.572

0

2.692

0

involves implementing strict waste separation, recycling, and composting of kitchen waste. The goals arewaste as well as some industrial waste from operations. Day-to-day waste management therefore primarily
to achieve recycling and reuse while encouraging employees to do everything they can to reduce waste

Surface water + ground water +sea water + water from third
parties (total volume)

production. General non-hazardous waste is disposed of in the building where ASPEED Technology’s

3.443

0

2.572

Water
discharge

volume)Total water
discharge

Surface water + ground water +sea water + water from third
parties (total volume)

Water from third parties (total

2.692

0

headquarters is located; there is not a separate scale to measure weight. In the future, the Company
will research the feasibility of weighing the waste before disposal. The industrial waste types that the2020(Unit: mg/L)

02021

Company produces are ICs, BGA IC substrates, PCBs, and other items used for R&D. Each year the Company

2022

commissions an operator with a Level A waste management license to dispose of these items in accordance

All
Regions

Areas withwater pressure

All
Regions

Areas withwater pressure

All
Regions

Areas withwater pressure

3.443

0

2.572

0

2.692

0

hazardous waste from operation.

3.443

0

2.572

0

2.692

0

Total Volume of Industrial Waste (Unit: metric tons)

with procedures that include making an inventory, taking photos, and recording weight. Throughout theprocess, the Company designates staff to provide oversight. In 2022, ASPEED Technology did not produce

Year

2020

2021

2022

Weight (metric tons)

0.13930.03630.1134* 100% of the Company’s industrial waste is handled in accordance with relative procedures by an operator with a
Level A waste management license.

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Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix96Industrial Waste in 2022 (Unit: metric tons)
Waste
Composition

Waste
Production

2020

2021

2022

Waste Waste Direct Waste
Transfer
Handling Production

Waste Waste Direct Waste
Waste Waste Direct
Transfer
Handling Production Transfer
Handling

BGA

0.00250.0025

0

0

0

0

0

0

0

BGA (copper)

0.02120.0212

0

0

0

0

0

0

0

LCDMonitor

0.06530.0653000

00.03850.03850Notebook PC

0.01360.0136

0

0

0

0

0

0

0

IC

0

0

0

0.03440.034400.00010.0001

0

IC

0

0

0

0.00190.001900.05650.05650

PCB Plug-In Board

0

0

0

0

0

0

0.01250.01250

PCB Bare Board

0

0

0

0

0

0

0.00580.00580

Network Router

0

0

0

0

0

0

0

0

0

Uninterruptable
Power System

0

0

0

0

0

0

0

0

0

Host Computer

0.0367

0.0367

0

0

0

0

0

0

0

Total Waste Volume0.13930.139300.03630.036300.11340.11340(gold manufacturing process)(copper manufacturing process)

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix97

GHG Inventory and Carbon Reduction Planning
As an IC design company that does not operate a factory, ASPEED Technology focuses on taking a
responsible role in the semiconductor supply chain by proactively conducting GHG verification andcarbon reduction planning. In 2021, we started the GHG inventory and obtained ISO14064-1:2018 external
inspection certification in August 2022. In the future, we will continue to disclose GHG emissions in an open
and transparent manner. 2021 was the Company’s base year for GHG emissions. We check our emissions
every year and formulate a net zero target and carbon reduction plan of ASPEED:

Short term (2023-2025)

Medium term (2025-2030)

Net zero path planning and decarbonization strategy formulation

・In response to the SBTi SME Science-Based Targets initiative, setting net-zero targets and paths
・Formulation of corporate decarbonization solutions and purchase of renewable energy
・Completion of Scope 3 examination in accordance with GHG Protocol

Long term (2030-2050)

Continuous promotion and expansion of decarbonization

・Implementation of corporate decarbonization solutions and gradual increase in the use ofrenewable energy
・Continue to optimize GHG inventory in Scope 3
・Identify the supply chain’s decarbonization goals and begin to drive decarbonization in
the supply chain・Assess and promote product carbon footprint inventory and certification
・Revise SBTi targets and rolling adjustments every five years

Low carbon transformation and empowerment

・Continue to implement and track carbon reduction progress to achieve net zero goal・Establish a sustainable supply chain system
・Introduce carbon management digital platform
・Revise SBTi targets and rolling adjustments every five years*The GHG inventory after inspection in 2022 showed that there were no nitrogen oxides (NOx), sulfur oxides (SOx), perfluorinated compounds (PFCs), and other major gas emissions.

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix982022 Total GHG Emissions and Intensity (Unit: tCO2e)

GHG
emissions{

Scope 1+
Scope 2

Base Year (2021)

2021

2022

(Taiwan Region, covering Taipei
office and Hsinchu headquarters)

16.36916.36917.3288

Scope 1 Total

16.36916.36917.3288

Base Year (2021)

2021

2022

(Taiwan Region, covering Taipei
office and Hsinchu headquarters)

293.84293.84277.6634

Scope 2 Total

293.84293.84277.6634

Base Year (2021)

2021

2022

16.36916.36917.3288293.84293.84277.6634

8,407.79

8,407.79

11,902.8588

8,407.79

8,407.79

12,197.8510

Shipment volume per million piece

13.29

13.29

15.731

GHG emission intensity ratio

655.98655.98775.4021

Scope 1{

Scope 2

Scope 1

Total GHG Scope 2 (Location-based)
Emissions
Scope 3andIntensity Total (Scope 1 + Scope 2 + Scope 3)

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

99

ASPEED’s
GHG
emission
reduction

Base Year (2021)

2022

Scope 1 reduction

16.369

Scope 2 reduction

293.84

Total reduction

Disclosure
content

Type of GHG

Total emission (tCO2e)17.3288

CO 2

6.3451

277.6634

CH 4

7.1326

N 2O

0.1998HFCs

3.6513GlobalGHG
Scope 1
Emission15.2168(Scope 1 + Scope 2) tCO2e

Total reduction

4.91%(Scope 1 + Scope 2) %

SF 6

0

NF 3

0

PFCs

0

Total emission (tCO2e)17.3288

Energy Usage and Usage Intensity
Type
Purchased electricity(excluded green energy)

Gasoline

Heating value

Energy intensity(billion J)(billion J /million piece)545,507.6 kwh

1,968.18

124.862,801.7 L

91.50

5.82

2,055.68

130.68

Usage

Total

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix100

08

Appendix
Materiality Analysis 102
GRI Standard Index 105
SASB Index 110

Report Adjustments 111

Materiality Analysis

Identification of Stakeholders
ASPEED Technology’s Sustainability Development Working Team identifies and evaluates core stakeholders based on the business and interactions of each department, pursuant to the five principles of the AA1000 Stakeholder Engagement Standard(AA1000 SES): Responsibility, Influence, Dependency, Tension, and Diverse Perspectives. Nine key stakeholders were ultimately identified as priority targets for engagement: employees, shareholders & investors, customers, suppliers, government
agencies, media, public welfare organizations, academic research organizations, and partners.

Stakeholder Category
Customers
Having the greatest influence on ASPEED
Technology’s product/technology
development and design

Employees
Are the most important resource of ASPEED
Technology and critical partners for thesustainable development of the Company

Government Agencies
Policies, laws or regulations can influence theoperational directions or decision making of
ASPEED Technology

Cooperative Partners
Grows with ASPEED Technology through close
cooperation, important partner for ASPEED
Technology

Media
Reports and assessments impacting theCompany’s reputation and image

Engagement

2022 Communication Results

Topics of Concern

・ Customer privacy and confidentiality measures
・ Product quality and customer satisfaction
・Technological and R&D innovations
・ Sustainable supply chain management・Response to international organizations and initiatives
・ Management of waste and hazardous materials

・Customer satisfaction rate of 94.74%
・Customer contact email address: sales@aspeedtech.com ・37% of domestic and international customers provide written feedback
・No customer complaints were issued to our customer service team in 2021
・Customer satisfaction survey (annually)
・Public responses to sustainable management issues raised by customers including CDP, RBA, green product, and conflict・Sales interviews and interactions (ad hoc)
minerals, response rate 100%・Opinions mailbox: hr@aspeedtech.com (regular)
・Labor-management coordination meeting (quarterly)
・Meeting of Employee Welfare Committee (quarterly)・Manager discussions
・Employee satisfaction survey (annually)
・Expressing opinions at the end of the year (annually)
・One-on-one discussions (ad hoc)・Held four labor-management meetings to offer comprehensive discussions and responses relating to labor movement and employee welfare
・Performance assessment reviews take place every April. A total of 104 reviews were held, for a completion rate of 100%
・Weekly in-depth one-on-one discussions with managers in the Operation Division and New Products Division
・All issues were addressed at the year-end satisfaction survey

・General inquiry email address: info@aspeedtech.com
・Official documents, emails, and meetings (ad hoc)
・Advocacy meetings, public hearings (ad hoc)

・Participated in the TWSE Corporate Governance Evaluations
・Conducted ad hoc communication relating to our business or specific topics
・We were not issued any fines or penalties by the competent authorities in 2022

・Corporate governance and ethical corporate management
・Information security and privacy
・Operational achievements and ﬁnancial performance
・Risk management
・Legal compliance・Compensation and performance mechanisms
・Sustainable supply chain management
・Technological and R&D innovations
・Risk management
・Legal compliance・Compensation and performance mechanisms

・General inquiry email address: info@aspeedtech.com
・Communicate and visit cooperative partners irregularly・Social participation and public welfare activities (ad hoc) ・Invitation to annual events

・Media inquiry email address: media@aspeedtech.com
・Press releases for major news (ad hoc)

About This Report

・In 2022, senior management gave three special interviews following media request, two radio interviews and several telephone interviews
・Issued press releases to announce major news
・One press conference for major news

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future・ Operational achievements and financial performance
・ Compensation and performance mechanisms
・ Employee benefits and care・Employee cultivation and career development
・ Workplace equality and human rights protection
・ Talent recruitment and cultivation
・ Community contributions and social participation

Corporate
Governance

Shared Social
Prosperity

・Corporate governance and ethical corporate management
・Operational achievements and ﬁnancial performance
・Technological and R&D innovations
・Legal complianceGreen
Operations

Appendix102

Stakeholder Category

Shareholders/Investors
Influencing the stock price by appraisalsof Company

Suppliers
Providing excellent raw materials of aconsistent quality; through close
cooperation, we jointly pursue corporate
sustainability

Public Welfare Organizations/Academic
and Research Organizations
ASPEED Technology actively interacts withpublic welfare organizations, academic
research organizations, and cooperative
partners to fulfill our ESG obligations

Engagement

2022 Communication Results・Investor relations email address: ir@aspeedtech.com
・Shareholders’ meeting (annually)
・Foreign and domestic investors’ meeting (ad hoc)
・ General inquiry email address: info@aspeedtech.com
・ Supplier meetings (annually)
・Supplier audits (annually)
・Critical supplier’s ESG commitment (annually)

・General inquiry email address・Social participation and public welfare activities(ad hoc)

Topics of Concern

・In 2022, we held one shareholders’ meeting and two public investors’ conferences
・For major topics we held ad hoc discussions with domestic and foreign institutional investors. 357 phone/physical meetings in total during2022

・Held critical supplier meetings・Completed five audits of critical suppliers and one evaluation of a new supplier・Critical supplier’s ESG commitment response rate 60%
・Accumulated contributions through 2022 were NTD13.7982 million
・Rural underprivileged caring:-For a seventh consecutive year we participated in the Global Views Educational Foundation’s “Plant a seed of reading for the children”
event by sponsoring reading materials for students in the Taitung area. We had already donated over 17,000 magazines for a total of 20,000
students at 84 schools in 17 townships in Taitung-“Support Program for Teachers without Teaching Certificate” in Taitung・Supporting the development of higher education:-Launching the 4-year Sunrise Scholarship Program in National Tsing Hua University with estimated budget of NTD1.6 million-Launching the 4-year Junior Chair Professor Sponsorship Program: in National Yang Ming Chiao Tung University and National Tsing Hua University

・Corporate governance and ethical corporate management
・Legal compliance・Technological and R&D innovations
・Operational achievements and ﬁnancial performance
・Risk management

・Product quality and customer satisfaction
・Operational achievements and ﬁnancial performance
・Risk management
・Legal compliance・Sustainable supply chain management

・Compensation and employee care
・Talent recruitment and retention
・Response to international organizations and initiatives
・Technological and R&D innovations
・Social care and public welfare participation

with estimated budget of NTD11.52 million. Sponsoring a total of six professors in the two universities in 2022

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Governance

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Operations

Appendix103Material Topic Identification Procedures
step〔 Stage I 〕

1

step

Identify counterparts to communicate with (Identify main stakeholders)

Gather sustainability topics (20 sustainability topics)

ASPEED Technology uses the AA1000 Stakeholder Engagement Standard to identify core stakeholders(employees, shareholders/ investors, customers, suppliers, government agencies, media, public welfareorganizations, academic research organizations, and partners).

ASPEED Technology uses the GRI Standards as a reference and considers the sustainability concerns ofdomestic and international industry peers as a basis for gathering comprehensive information on sustainability
topics then determining the Company’s 20 core sustainability concerns. Starting from 2022, ASPEED Technology
will update the list of sustainability issues every three years, so the 2021 “Sustainability Issues” will be usedthroughout 2022 to promote circular management.

Identification
step〔 Stage II 〕

Analysis

Confirmation

3

step

4

Identify negative materiality

Identify positive materiality

By collecting opinions annually from the heads of various divisions in ASPEED on the impact of different
sustainability issues on the Company’s internal operations, and combining these results with the level of external
stakeholder concern, we evaluate the negative impacts from within the company to the outside world; Each year,
ASPEED collaborates with experts to evaluate and measure the extent of negative impacts that its sustainability
management practices have on the economic, environmental, and social aspects of the outside world. The aim is
to identify significant negative impacts both internally within the Company and externally on the outside world.
These issues are then highlighted as materiality with negative impact for the year.

By collecting opinions annually from the heads of various divisions in ASPEED on the impact of different
sustainability issues on the Company’s internal operations, and combining these results with the level of external
stakeholder concern, we evaluate the positive impacts from within the company to the outside world; Each year,
ASPEED collaborates with experts to evaluate and measure the extent of positive impacts that its sustainability
management practices have on the economic, environmental, and social aspects of the outside world. The aim is
to identify significant positive impacts both internally within the Company and externally on the outside world.
These issues are then highlighted as materiality with positive impact for the year.

step〔Stage III〕

2

5

step

6

Draft a negative and positive materiality matrixes

Review disclosure content

The scores of the issues obtained in the above steps are evaluated for materiality. After comprehensively
considering the scores of internal to external negative/positive impact assessment and external to internal
negative/positive impact assessment of the sustainable issues, two matrixes of negative materiality and positive
materiality are drafted to identify and obtain sustainability issues that meet the significant impact threshold in
both directions. The list of material topics with negative and positive impacts is used as the basis for in-depth
analysis in this report.

Five material topics were identified. Together with the material issue of “employee benefits and care” asresolved by the Working Team of Sustainability Committee, six material topics were approved by the Chairmanof the Board eventually. We compared the material topics to twelve special topics and two self-formulated
topics based on the GRI Standards. These results formed the boundaries of ASPEED Technology’s stakeholder
information disclosures and formed the foundation of this report. (For details, please refer to Chapter 3.3 ASPEED
Sustainability Policies and Blueprint)

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Foreword

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Governance

Shared Social
Prosperity

Green
Operations

Appendix

104

GRI Standard Index

Disclosure Items

Indicator

Corresponding Chapter

Page

Note

GRI 2 General Disclosures 2021
2-1

Organizational details

3.1 About ASPEED Technology

92-2

Entities included in the organization’ssustainability reporting

About this Report

42-3

Reporting period, frequency and contact point

About this Report42-4

Restatements of information

Report Adjustments

111

2-5

External assurance

About this Report

4

2-6

Activities, value chain and other business
relationships

3.1 About ASPEED Technology

10

5.6 Sustainable Supply Chain Management

67

2-7

Employees

6.3 Employee Care

79

2-8

Workers who are not employees

6.1 Employee Composition

72

2-9

Governance structure and composition

5.1 Corporate Governance and EthicalCorporate Management

37

2-10

Nomination and selection of the highest
governance body

5.1 Corporate Governance and EthicalCorporate Management

Chair of the highest governance body

5.1 Corporate Governance and EthicalCorporate Management37

5.1 Corporate Governance and EthicalCorporate Management

45

8 Materiality Analysis

102

3.3 ASPEED Sustainability Policies and Blueprint

17

2-11
2-12

2-13

2-14

Role of the highest governance body inoverseeing the management of impacts

Delegation of responsibility for managing
impacts

Role of the highest governance body insustainability reporting

5.1 Corporate Governance and EthicalCorporate Management
3.3 ASPEED Sustainability Policies andBlueprint

About This Report

Indicator

Disclosure Items

Corresponding Chapter

2-15

Conflicts of interest

5.1 Corporate Governance andEthical Corporate Management

40

2-16

Communication of critical concerns

8 Materiality Analysis

102

2-17

Collective knowledge of the highest
governance body

5.1 Corporate Governance and EthicalCorporate Management

39

2-18

Evaluation of the performance of the highest
governance body

5.1 Corporate Governance and EthicalCorporate Management

39

2-19

Remuneration policies

5.1 Corporate Governance and EthicalCorporate Management40

6.3 Employee Care79

5.1 Corporate Governance and EthicalCorporate Management40

6.3 Employee Care79

6.3 Employee Care79

2.1 A Letter from the President

6

2.2 A Letter from the Chief Operating Officer

7

3.3 ASPEED Sustainability Policies and Blueprint

17

3.3 ASPEED Sustainability Policies and Blueprint

17

5.1 Corporate Governance and Ethical Corporate
Management

36

2-20
2-21
2-22

Process to determine remuneration

Annual total compensation ratio
Statement on sustainable development strategy

37

2-23

Foreword

Embedding policy commitments

3.3 ASPEED Sustainability Policies and Blueprint

17

2-25

Processes to remediate negative impacts

5.1 Corporate Governance and EthicalCorporate Management

45

2-26

Mechanisms for seeking advice and raisingconcerns

5.1 Corporate Governance and EthicalCorporate Management

42

8 Materiality Analysis

102

5.1 Corporate Governance and EthicalCorporate Management

43

2-27

About ASPEED
Technology

Policy commitments

2-24

45
17

Page

Innovation fora Sustainable Future

Compliance with laws and regulations

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

Note

105

Disclosure Items

Indicator

Corresponding Chapter

Page

2-28

Membership associations

5.6 Sustainable Supply Chain Management

15

2-29

Approach to stakeholder engagement

8 Materiality Analysis

102

2-30

Collective bargaining agreements

8 Materiality Analysis

102

Note

Disclosure Items

Indicator

Corresponding Chapter

202-2 Proportion of senior management hired

6.1 Employee Composition

from the local community 9 Glossary

Page

Note

72

In 2022, ASPEED
Technology employed
local residents for all of its
senior executive positions,
resulting in a 100% ratio of
local residents in high-level
management roles.

None in 2022

GRI3 Material Topics 2021
3-1

Process to determine material topics

3.3 ASPEED Sustainability Policies and Blueprint

19

8 Materiality Analysis

104

GRI 203：Indirect Economic Impacts 2016

3-2

List of material topics

8 Materiality Analysis

20203-1 Infrastructure investments and services supported

6.4 Social Participation

86

3-3

Management of material topics

3.3 ASPEED Sustainability Policies and Blueprint

20

3.3 ASPEED Sustainability Policies and Blueprint

8 Materiality Analysis

102203-2 Significant indirect economic impacts

21

204-1 Proportion of spending on local suppliers

7.1 Environmental Management92205-1 Operations assessed for risks related to

5.1 Corporate Governance and EthicalCorporate Management44205-2 Communication and training about anticorruption policies and procedures

5.1 Corporate Governance and EthicalCorporate Management44205-3 Confirmed incidents of corruption and

5.1 Corporate Governance and EthicalCorporate Management36

5.1 Corporate Governance and EthicalCorporate Management36

5.2 Operational Performance

52

207-2 Tax governance, control, and risk management 5.2 Operational Performance

52

207-3 Stakeholder engagement and management

5.2 Operational Performance

52

207-4 Country-by-country reporting

5.2 Operational Performance52

GRI 201：Economic Performance 2016

Direct economic value generated anddistributed

5.2 Operational Performance49

6.2 Talent Development76

201-2 Financial implications and other risks and5.2 Operational Performance

49

201-1

opportunities due to climate change

201-3 Defined benefit plan obligations and otherretirement plans

201-4 F i n a n c i a l a s s i s t a n c e r e c e i v e d f r o mgovernment

5.3 Climate Strategies TCFD

53

5.2 Operational Performance49

6.3 Employee Care82

5.2 Operational Performance49

GRI 202：Market Presence 2016

202-1 Ratios of standard entry level wage by gender

6.1 Employee Composition

compared to local minimum wage

About This Report

GRI 204：Procurement Practices 2016

For complete financial
information, please referto 2022 annual report.

GRI 205：Anti-corruption 2016

corruption

actions taken

None in 2022

GRI 206：Anti-competitive Behavior 2016

206-1 Legal actions for anti-competitive behavior,anti-trust, and monopoly practices

79

Foreword

In 2022, ASPEED Technology
achieved the highest averagesalary among all employees,
amounting to 4.552 million
N e w Ta i w a n D o l l a r s ,ranking first among overthe-counter (OTC) listedcompanies.

About ASPEED
Technology

GRI 207：Tax 2019

207-1 Approach to tax

of concerns related to tax

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

None in 2022

Appendix106Disclosure Items

Indicator

Corresponding Chapter

Page

Note

7.2 GHG and Energy Resource Management95

7.2 GHG and Energy Resource Management

95

ASPEED Technology does
not involve production
or manufacturing, so it is
not applicable.

GRI 301：Materials 2016

301-1 Materials used by weight or volume301-2 Recycled input materials used

301-3 Reclaimed products and their packaging

7.2 GHG and Energy Resource Management

materials

302-1
302-2
302-3
302-4
302-5

Energy consumption within the organization

GRI 302：Energy 2016

7.2 GHG and Energy Resource Management

95

Energy consumption outside of the organization

7.2 GHG and Energy Resource Management

95

Energy intensity

7.2 GHG and Energy Resource Management

100

Reduction of energy consumption

7.2 GHG and Energy Resource Management

100

Reductions in energy requirements ofproducts and services

4.3 Green Breakthroughs

32

GRI 303：Water and Effluents 2018

303-1 Interactions with water as a shared resource

303-2
303-3
303-4
303-5

95

7.2 GHG and Energy Resource Management

95

Management of water discharge-related impacts

7.2 GHG and Energy Resource Management

95

Water withdrawal
Water discharge

7.2 GHG and Energy Resource Management
7.2 GHG and Energy Resource Management

95
95

Water consumption

7.2 GHG and Energy Resource Management95

About This Report

Foreword

Due to the nature of ASPEED
Technology 's products being
chips, it is not possible toobtain data on whether
there is a recycling program
or retrieval of end products.

Corresponding ChapterPage

304-1 Operational sites owned, leased, managed in,

7.2 GHG and Energy Resource Management95304-2 Significant impacts of activities, products and

7.2 GHG and Energy Resource Management95

About ASPEED
Technology

GRI 304：Biodiversity 2016or adjacent to, protected areas and areas ofhigh biodiversity value outside protected areas
services on biodiversity

Note

None in 2022

304-3 Habitats protected or restored
304-4 I U C N R e d L i s t s p e c i e s a n d n at i o n a l

7.2 GHG and Energy Resource Management95

7.2 GHG and Energy Resource Management

95

conservation list species with habitats in areas
affected by operations

GRI 305：Emissions 2016

Direct (Scope 1) GHG emissions

7.2 GHG and Energy Resource Management

99

Energy indirect (Scope 2) GHG emissions

7.2 GHG and Energy Resource Management

99

Other indirect (Scope 3) GHG emissions

7.2 GHG and Energy Resource Management

99

GHG emissions intensity

7.2 GHG and Energy Resource Management

99

Reduction of GHG emissions

7.2 GHG and Energy Resource Management

99

ASPEED Technology's shortterm carbon reduction
plan in the future primarily
focuses on Scope 1 andScope 2 emissions.

305-6 Emissions of ozone-depleting substances

7.2 GHG and Energy Resource Management100

In 2022, ASPEED Technology
had no incidents of emissions
related to substances that
deplete the ozone layer(ODS).

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx),

7.2 GHG and Energy Resource Management100

In 2022, ASPEED Technology
had no significant emissionsof nitrogen oxides (NOx),sulfur oxides (SOx), or othermajor gases.

305-1
305-2
305-3
305-4
305-5

Considering that ASPEED
Technology does not have
manufacturing facilities, themain focus of internal energy
and resource management
within the company isprimarily on three aspects:
daily operations (water andelectricity consumption),greenhouse gas inventory,
and waste management
practices.

Disclosure Items

Indicator(ODS)

and other significant air emissions

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix107Disclosure Items

Indicator

Corresponding Chapter

GRI 306：Effluents and Waste 2020306-1 Water discharge by quality and destinationPage

7.2 GHG and Energy Resource Management96306-2 Waste by type and disposal method

7.2 GHG and Energy Resource Management96306-3 Significant spills

7.2 GHG and Energy Resource Management96306-4 Transport of hazardous waste

7.2 GHG and Energy Resource Management96306-5 Water bodies affected by water discharges

7.2 GHG and Energy Resource Management96

and/or runoff

GRI 308：Supplier Environmental Assessment 2016308-1 New suppliers that were screened using

5.6 Sustainable Supply Chain Management67

308-2 Negative environmental impacts in the

5.6 Sustainable Supply Chain Management

67

environmental criteria

supply chain and actions taken

401-1 New employee hires and employee turnover

GRI 401：Employment 2016
6.1 Employee Composition

75

401-2 Benefits provided to full-time employees

6.3 Employee Care82

401-3 Parental leave

6.3 Employee Care

82

that are not provided to temporary or parttime employees

GRI 402：Labor/Management Relations 2016

Disclosure Items

Corresponding Chapter

403-2

Hazard identification, risk assessment, and incident
investigation

6.3 Employee Care

85

403-3

Occupational health services

6.3 Employee Care

85

403-4

Wo r k e r p a r t i c i p a t i o n , c o n s u l t a t i o n , a n dcommunication on occupational health and safety

6.3 Employee Care

85

403-5

Worker training on occupational health and safety

6.3 Employee Care

85

403-6

Promotion of worker health

6.2 Talent Development

77

403-7

Prevention and mitigation of occupational healthand safety impacts directly linked by business
relationships

6.3 Employee Care

85

403-8

Workers covered by an occupational health andsafety management system

6.3 Employee Care

85

403-9

Work-related injuries

6.3 Employee Care85

No occupational injuries
have occurred in the past
three years.

403-10Work-related ill health

6.3 Employee Care85

No occupational ill haveoccurred in the past three
years.

GRI 404：Training and Education 2016

Page

404-1

Average hours of training per year per employee

6.2 Talent Development

78

GRI 403：Occupational Health and Safety 2018

404-2

Programs for upgrading employee skills andtransition assistance programs

6.2 Talent Development

77

404-3

Percentage of employees receiving regularperformance and career development reviews

6.3 Employee Care78

403-1 Occupational health and safety management
systemThere were no employee
applications for maternity
or paternity leave in 2022.

Indicator

85402-1 M i n i m u m n o t i c e p e r i o d s r e g a r d i n g
operational changes

Note

6.3 Employee Care

6.3 Employee Care

About This Report

85

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
OperationsNote

A S P E E D Te c h n o l o g yemployees are not
e n g a g e d i n j o b ro l e s
associated with high riskor high specific disease
occurrence rates.

Appendix108

Indicator

405-1

405-2

406-1

407-1

408-1

409-1

410-1

411-1

413-1

Disclosure Items

Corresponding Chapter

GRI 405：Diversity and Equal Opportunity 2016

D i ve r s i t y o f gove r n a n ce b o d i e s a n demployees

6.1 Employee Composition

Ratio of basic salary and remuneration of
women to men

6.3 Employee Care

Incidents of discrimination and corrective
actions taken

6.3 Employee Care

GRI 406：Non-discrimination 2016

Page
72

6.3 Employee Care

GRI 408：Child Labor 2016

Operations and suppliers at significant risk
for incidents of child labor

6.3 Employee Care

GRI 409：Forced or Compulsory Labor 2016

Operations and suppliers at significant risk
for incidents of forced or compulsory labor

6.3 Employee Care

Security personnel trained in human rights
policies or procedures

6.3 Employee Care

GRI 410：Security Practices 2016

GRI 411：Rights of Indigenous Peoples 2016

ncidents of violations involving rights ofindigenous peoples

6.4 Social Participation

Operations with local community
engagement, impact assessments, anddevelopment program

6.4 Social Participation

GRI 413：Local Communities 2016

About This Report

In 2022, ASPEED Technology
did not hire employees withdisabilities or individuals of
indigenous backgrounds.

80

84

GRI 407：Freedom of Association and Collective Bargaining 2016

Operations and suppliers in which the rightto freedom of association and collective
bargaining may be at risk

Note

79

79

79

79

86

Indicator

Disclosure Items

413-2

Operations with significant actual and potential
negative impacts on local communities

6.4 Social Participation

414-1

New suppliers that were screened using social
criteria

5.6 Sustainable Supply Chain Management

67

414-2

Negative social impacts in the supply chain andactions taken

5.6 Sustainable Supply Chain Management

67

Political contributions

5.1 Corporate Governance andEthical Corporate Management

36

415-1

The company has notestablished any associations
or labor unions yet.

No related data in 2022

None in 2022

GRI 414：Supplier Social Assessment 2016

GRI 415：Public Policy 2016

GRI 416：Customer Health and Safety 2016

Page

Note

86

None in 2022

416-1

Assessment of the health and safety impacts ofproduct and service categories

5.5 Product Quality and Customer
Service64416-2

Incidents of non-compliance concerning the healthand safety impacts of products and services

5.5 Product Quality and Customer
Service64None in 2022

417-1

Requirements for product and service informationand labeling

5.5 Product Quality and Customer
Service64None in 2022

417-2

ncidents of non-compliance concerning productand service information and labeling

5.5 Product Quality and Customer
Service64None in 2022

417-3

Incidents of non-compliance concerning marketing
communications

5.5 Product Quality and Customer
Service64None in 2022

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

5.4 Information Security

60

None in 2022

No child labor was used in
2022

There were no incidents
of forced labor in 2022.

Corresponding Chapter

418-1

GRI 417：Marketing and Labeling 2016

GRI 418：Customer Privacy 201686

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

109

SASB Index
2022 ESG report
Corresponding ChapteragePage

1.Global Scope 1 emissions in 2022 amounted to 17.3288 metric tons of carbon dioxide equivalent.
2. Total emissions of fluorinated compounds in 2022 were 0.

7.2 GHG and Energy Resource Management

99

NA

In 2022, ASPEED Technology has completed the ISO14064-1:2018 third-party GHG inspection certification
at the organizational level. A carbon management project is expected to be submitted to the Board forapproval in 2023 to progressively implement the carbon reduction plan through the purchase of renewableenergy and implementation of the recent SBTi SME target planning and application.

7.2 GHG and Energy Resource Management

98(1) Total energy consumed,(2) percentage grid electricity and(3) percentage renewable

Gigajoules (GJ)
Percentage (%)

1. 2,055.68
2.96%
3.0%

7.2 GHG and Energy Resource Management

100

TC-SC-140a.1(1) Total water withdrawn,(2) Total water consumed; percentage of each in regions with High or Extremely High Baseline Water StressThousand cubic metres(m³)
Percentage (%)

1. 2,962 m³ (Total water withdrawn);
2.0% in regions with High or Extremely High Baseline Water Stress 2,962 m³ (Total water consumed); 0%in regions with High or Extremely High Baseline Water Stress

7.2 GHG and Energy Resource Management

96

Quantitative

TC-SC-150a.1

Amount of hazardous waste from manufacturing, percentage recycled

Metric tons (t)Percentage (%)

No hazardous waste in 2022

7.2 GHG and Energy Resource Management

96

6

Quantitative

TC-SC-320a.1

Description of efforts to assess, monitor, and reduce exposure of employees to human health hazards

NA

1. ASPEED Technology has a professional occupational safety and health business supervisor, regularly
reviews occupational safety, health and environmental protection-related matters, and promotes
various occupational safety, health and environmental protection related businesses. The employee
coverage rate of the occupational safety and health management system is 100%.
2. Since ASPEED Technology is an IC design company that does not directly operate a factory, in daily
operations the Company does not handle substances or chemicals that are hazardous to health.
The laboratory only conducts testing simulations, and the occupational safety and health manager
primarily focuses on identifying hazard sources in the office environment. The only chemical type
employees encounter is unleaded welding chemicals used by R&D personnel. In accordance withregulations, employees who handle these chemicals must wear an N95 mask and the environment
must be well ventilated. Lead toxin health exams are conducted to ensure that there is no healthimpact.
3. In 2022, in response to the changes in the pandemic, the Company distributed masks, alcohol, andother materials to keep the environment clean and disinfected. For the group insurance plan, theCompany added vaccine insurance.

6.3 Employee Care

85

7

Quantitative

TC-SC-320a.2

Total amount of monetary losses as a result of legal proceedingsassociated with employee healthand safety violations

Reporting currency

None in 2022

6.3 Employee Care79

8

Quantitative

TC-SC-330a.1(1) foreign nationals and(2) located offshore

Percentage (%)

0

6.1 Employee Composition

72

9

Quantitative

TC-SC-410a.1

Percentage of products by revenue that contain IEC 62474 declarable substances

Percentage (%)

0

5.5 Product Quality and Customer Service

64

10Quantitative

TC-SC-410a.2

Processor energy efficiency at a system-level for:(1) servers, (2) desktops, and (3) laptops(MIPS/W)

2,381 (AST2600)
1,652 (AST2500A2-GP)
1,357 (AST2520A2-GP)

4.3 Green Breakthroughs

33

11

Quantitative

TC-SC-440a.1

Description of the management of risks associated with the use of critical materials

NA

None in 2022

5.6 Sustainable Supply Chain Management

68

12

Quantitative

TC-SC-520a.1

Total amount of monetary losses as a result of legal proceedings associated with anticompetitive
behavior regulations

Reporting currency

None in 2022

5.1 Corporate Governance and EthicalCorporate Management

36

13
14

Quantitative

TC-SC-000.A

Total production

Thousand pieces

15,731

5.2 Operational Performance50

Quantitative

TC-SC-000.B

Percentage of production from owned facilities

Percentage(%)

NA, ASPEED Technology does not involved production

5.2 Operational Performance

49

Type

Category

Code

Accounting Metric1

Quantitative

TC-SC-110a.1(1) Gross global Scope 1 emissions and(2) amount of total emissions from perfluorinated compounds

Metric tons
(t)
CO2e

2

Quantitative

TC-SC-110a.2

Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions
reduction targets, and an analysis of performance against those targets

3

Quantitative

TC-SC-130a.1

4

Quantitative5

About This Report

Foreword

Unit of Measure

About ASPEED
Technology

Data

Innovation fora Sustainable Future

580 (AST2400A1-GP)
1,149 (PILOT 4)
1,652 (AST1520A1-GP)

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix110

Report Adjustments

Pagechapter

29

Corporate Governanceand Ethical Corporate
Management

14

Before adjustment

After adjustment

chapter63

Shared Social Prosperity

65

Shared Social Prosperity

Before adjustment

After adjustment

About ASPEED Technology

54

Environmental Protection

55

Environmental Protection
Water usage

Water usage intensity

Water usage

Water usage intensity

892
3,531
2,572

101.24307.93193.53

3,443
2,644
2,692

300.25198.95171.11(metric tons)

Environmental Protection

Number of ASPEED’s Employees by Position and Age

Number of ASPEED’s Employees by Position and Age

Water

Water

56

Page

(metric tons/million piece)

Data show that water use intensity
in 2021 decreased by 37.15% in 2021
compared to 2020

About This Report(metric tons)(metric tons/million piece)

Data show that water use intensity
in 2021 decreased by 33.74% in 2021
compared to 2020

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix

111

Page

chapter67

SharedSocialProsperity

67

SharedSocialProsperity

83

Appendix

Before adjustment

After adjustment

Number of ASPEED’s Employees by Position and Age

Number of ASPEED’s Employees by Position and Age

Number of ASPEED’s Employees by Gender and Position

Type

Category

Code2

Quantitative

Accounting Metric

Number of ASPEED’s Employees by Gender and Position

Unit of Measure

TC-SC-000.A Total production Thousand pieces

Type

Category

Code2

Quantitative

Accounting Metric

Unit of Measure

TC-SC-000.A Total production Thousand pieces

Data2022 ESG report Corresponding Chapterage

Page

Data

2022 ESG report Corresponding ChapteragePage132,900

5.2 Operational Performance36

13,2905.2 Operational Performance

34

About This Report

Foreword

About ASPEED
Technology

Innovation fora Sustainable Future

Corporate
Governance

Shared Social
Prosperity

Green
Operations

Appendix112