2Innovative Products and Services
2.1 R&D and Innovation
2.2 Customer Relationship Management

44About This
ReportSustainable
Operation and
Governance

Innovative
Products andServices

2.1 R&D and Innovation

Responsible
Procurement

Equal
Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

2.2 Customer Relationship Management

2.1 R&D and Innovation
TSC aims to implement sustainable development, and hopes to reduce theenvironmental impact caused by manufacturing processes, in line with the spirit of "Taking
from Society, Giving Back to Society". The Company has established product environmental
protection specifications to control the hazardous substances in its products. As well ascomplying with the requirements of the EU RoHS directive and REACH regulation, TSC
upholds the principles of environmental protection and HSF (Hazardous Substance Free)in the design and production stages, continuously incorporating the concept of green
products. Measures such as using non-hazardous raw materials and adopting low-pollution
and energy-saving production processes have gained favor from automotive customers,
allowing TSC to contribute substantial benefits in greenhouse gas reduction through its core
R&D capabilities.

2.1.1 Products and Services
TSC is mainly engaged in the manufacturing of Rectifiers, Transistors and LED Drivers,
Assembly, Testing, and After-sales Service. Our products include Power Management ICs,
Rectifiers, ESD Protection Devices, Bridge Rectifiers, MOSFETs, IGBTs, Trigger Diodes, andSilicon Controlled Rectifiers, which mostly are the automotive market (including gasoline
and electric vehicles), industrial market (charging piles, power tools, pneumatic device
equipment), and telecom market (5G, IoT).
Being an Integrated Device Manufacturer (IDM) is one of our competitive advantages.
We provide end-to-end services, from R&D, production, to assembly, testing, and sales. This
integrated approach optimizes the manufacturing process and enhance communication
mechanism.

The production self-manufactured rate (percentage from sites) in 2022 is about 70%,
with the remaining 30% being outsourced or purchasing. The sales revenue of our products
has continued to grow over the past three years. Due to recent industry trends, the majorityof customers in the automotive application market, which is the main focus of development,
are from Europe and America. Therefore, the sales share in Europe and America has
expanded in the past three years.

▎ Main regional market sales status and proportion (NT$ thousand)
2020

2021

2022

Asia

2,057,790

57%

2,569,777

53%

2,905,882

51%

America

515,94614%

755,533

16%

910,777

16%

Europe1,031,126

28%

1,347,227

28%

1,776,181

31%

Others37,5991%

130,9403%

106,315

2%

Total Sales
Revenue

3,642,461

100%

4,803,477

100%

5,699,155

100%

Unit: KPCS

▎ Total output of main products
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000-

Production Capacity

9,568,832

9,566,990

7,063,712

7,062,352

2021
Year

2022

6,730,100
4,968,160
2020
Production Quantity*Note: Due to the wide variety of TSC's products and the significant differences in production units,
considering the reasonableness and accuracy of the information, only the total production of
the main product - Rectifiers is disclosed.

45

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Innovative
Products andServices

2.1 R&D and Innovation

Responsible
Procurement

Equal
Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

2.2 Customer Relationship Management

Product Strategy and Development Policy
The types and application fields of products in TSC are relatively diverse. With a view to provide customers with more comprehensive product solutions, TSC has continuously improved
technological innovation and R&D capabilities in recent years. We have also formulated short, medium, and long-term product development strategies to meet customer needs and market
trends. In addition to establishing a sound product development strategy, we also promote a comprehensive quality management system. These two schemes are complementary to each other,
forming the foundation of our competitiveness.
Short-term Strategy

Mid-term Strategy

Long-term Strategy

Product Development• Gain a deep understanding of market demands andrapidly introduce products to the market; such ascontinuously developing more efficient automotive
semiconductor components like advanced MOSFETs,
Wide Bandgap Semiconductors, and High-Efficiency
Rectifiers.
• Develop new product variants using existing technology
and product platforms to meet customer needs.
• According to customer needs and market trends,
conduct a comprehensive product portfolio optimization.
• Discover new application scenarios and apply existingproducts to new markets and fields.

• Strengthen R&D on safety and reliability, and improve
product quality and market trust.
• Strengthen customer cooperation, provide custom
products and services, and increase market share.
• Develop a new product ecosystem.
• P ro m o t e s u s t a i n a b l e d e v e l o p m e n t a n d g re e nmanufacturing.
• Continue developing new markets and application
fields and increasing product application scenarios andmarket size.

• Strengthen research and practice on product lifecycle management to achieve long-term sustainable
development.
• Promote green design and green manufacturing ofproducts to achieve environmental protection andsustainable development goals.
• Develop cloud-based products and services to achieve
the sharing and collaboration of smart and digitalproducts.
• Promote product circular economy and resource
utilization, achieve product recycling and waste
reduction, and achieve sustainable development goals.

Technological Advancement• Introduce new talents and technologies to enhance
R&D and manufacturing capabilities.

• Introduce new materials and technologies to improve
product performance and power consumption ratio.

• Accelerate product smartification and digitization toenhance product added value and market competitiveness.

• Promote product design and testing automation to
improve product development efficiency and quality.

• Strengthen the R&D and manufacturing procedures of
products to improve efficiency and product quality.

• Promote smart manufacturing and industrial internet toenhance production efficiency and product quality.

• Strengthen cooperation with suppliers to improve
supply chain efficiency and reliability.

• Strengthen corporate innovation culture and R&D
capabilities, enhance innovation vitality andcompetitiveness of the business.
• Promote green manufacturing and strengthen green
technology R&D.

• Promote the application of cutting-edge technologies
such as artificial intelligence and machine learning toenhance product intelligence and autonomy level.
• Continue to advance technology R&D to maintain atechnological competitive advantage.
• Promote comprehensive corporate digital transition toenhance corporate intelligence and digitization level.
• Promote deep collaboration and innovation withindustry chain partners, jointly advancing industrial
development.

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Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

2.2 Customer Relationship Management

Product Quality Management

Comprehensive Quality Management Capability Building

TSC follows the product development plan to carry out quality management and setscorresponding quality objectives to ensure that the quality standards of the products meet
expectations. The Company implements measures such as control, improvement, andmonitoring of product quality, and adopts a Zero Defect Strategy, especially in the automotive
supply chain, with a rigorous mindset and strategy, focusing on continuous quality
improvement. Since 2004, TSC has passed IATF 16949 and ISO 9001. Through a rigorous
quality management system, TSC achieves the goal of continuous product improvement anddefect prevention, providing high-quality products to customers in the global automotive
industry.

To effectively implement the quality management policy, TSC has undertaken relevant
capability building in organizational culture, personnel skills, equipment, and system
automation. This includes promoting horizontal and vertical communication to ensure thespirit of "zero defects" is company consensus. We have also introduced more talented
individuals with extensive experience, strengthened the professional knowledge of internal
engineers and supervisors, expanded training in specific automotive technologies, and laid
the foundation for product quality management. Additionally, TSC is gradually introducing
automated equipment and systems to enhance the efficiency of quality management.

Zero Defect Management
PolicyRisk-based Quality
Management‧Comprehensive Zero Defect Goal
‧Visibility of the Zero Defect Concept‧Horizontally and Vertically Integrated
Communication‧Project Quality Management‧Risk-oriented Audit Strategy for
Change Control and Management‧Risk-oriented Audit Strategy

Quality
Management
Policy and
Goals

Continuous
Improvement

Stability of Products
and Processes‧Professional Knowledge Management‧Passing on Experience‧Career Development‧Defect Detection and Control‧System Integration and Automation‧Design for Manufacturability,
Reliability, and Testability

Since 2000, the Company has been strengthening management and ensuring productquality to meet customer requirements through VDA6.3 process audits and IATF 16949. In
response to the continuous improvement of the international automotive industry, we havefully implemented the latest version of AIAG-VDA FMEA (Failure Mode and Effect Analysis)
in 2020 to optimize costs for products and manufacturing procedures.
Our main automotive customers attach great importance to the international standard
VDA 6.3 process audits. In recent years, We have been committed to integrating the VDA
6.3 process audits with the existing quality management system to diagnose and optimize
internal processes, control process risks, and achieve zero defects goals. This can further
enhance our competitiveness in the automotive industry chain.

Establishment ofOrganizational Culture

Staff Upskilling

System and Equipment
Automation

Implementation of
Zero Defect Concept

Employing More
People withProfessional
Experience

MES Factory
Operations Control
System

EmployeeCommunication

Cross-Departmental
Communication

Continuing Education
Training

Customer
RelationshipManagement System
QIMS Quality
Integrated
Management System
SPC Statistical
Process Control
System47

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with Society

Appendix

2.2 Customer Relationship Management

Health and Safety Impact Assessment of Products
In recent years, TSC has been developing the automotive market. Major European andAmerican automotive manufacturers pay great attention to the high quality and precisionof their products because of automobiles' importance in personal and traffic safety. If there
are any malfunctions, it may result in unforeseen risks and impacts. Defects in automotive
electronics not only pose potential risks to personal safety but also lead to negative impacts
on corporate reputation through subsequent product recalls. Therefore, customers haveextremely high requirements for the products provided by TSC. Only by offering high-quality
products, implementing a Zero-Defect Policy, and continuously monitoring the development
trends of harmful substance regulations at home and abroad can we maintain a competitive
advantage.
Through assessment, the products and services provided by TSC in 2022 have nosignificant impact on health and safety, and there have been no incidents that violate
relevant health and safety regulations for products and services. We will continue to
strive to manage the health and safety impacts of its products, and make the sustainable
development blueprint more complete.

Product Chemical Substances Control and Disclosure
Many chemical substances are used in the production process of TSC products,
and there is a risk of harm to human beings and the environment. As such, the control
of chemical substances is crucial. In recent years, environmental substance regulations
have been updated frequently, and the number of regulated items has increased year by
year, reflecting the increasing international attention to chemical management. Meanwhile,customers also attach great importance to the composition, showing their attention to thesubsequent R&D, design, manufacturing and quality maintenance of purchased parts. To
allow customers to quickly understand the chemical substances contained in products foraccelerating demand matching, we launched a product chemical substance disclosure
project and set up an intranet Material Composition Declaration system in 2022.
IT Department has designed the MCD Environmental System to control and manage
the chemical composition of products and establish a list of hazardous substances. The
information on the substances contained in the products is continuously compiled anddisclosed on the official website. Currently, all products have MCD data sheets, andcustomers, suppliers, and other stakeholders can quickly search for specific products thatmeet their needs through the self-service feature on the official website, accelerating theoverall communication process and saving time on back-and-forth communication.
In 2022, TSC preliminary disclosed full substance information for 9,131 products,
with a disclosure rate of 95% by product weight percentage. It is expected that throughcontinuous communication with suppliers, factory education and training, and system
optimization, a disclosure rate of 97% by product weight percentage will be achieved by
2023. In the future, we will continue to promote the declaration of full substance disclosurefor product components, consolidate them into a transparent and complete material
information database, identify high-risk material analysis, and ensure that TSC manufactures
environmentally and human-friendly products.

Hazardous Substances Management
The management of hazardous substances is a crucial part of sustainable
management, which is also important for customers. The Company strictly complies withinternational regulations, such as the EU RoHS directive, REACH chemical regulations,etc., and has established a database - TSC Environmental Compliance - to manage
hazardous substances. We provide manufacturing services that are more environmentallyfriendly and disclose hazardous substances in response to customer needs, supporting
customers in expanding the green product market. For a complete list of environmental
laws and regulations followed by TSC, please refer to the official website's "Compliance withEnvironmental Laws and Regulations".
In 2022, all product and packaging design and manufacturing of our products havecomplied with regulations and 100% meet customer requirements for hazardous substancemanagement. There were no violations of regulations on product information labeling or
voluntary agreements, nor were there any incidents leading to fines or warnings.
We strictly complies with the product import regulations or instructions of various
countries. After internal verification by the Company, the product pass rate in 2022 is 100%.
Regarding the EU RoHS directive, TSC has obtained third-party testing reports.
Laws or Directives

Compliance Rate of TSC Products

RoHS*1

100%

REACH

100%

Safe Drinking Water and Toxic Enforcement Act

100%

End-of-Life Vehicle (ELV)100%

Persistent Organic Pollutants (POPs)

100%

US Environmental Protection Agency - Toxic
Substances Control Act (TSCA)

100%

JEDEC J-STD-609

100%

Note: 1. This refers to the instruction for restricting the use of certain hazardous substances inelectronic and electrical equipment (Restriction of Hazardous Substances).

48

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Operation and
Governance

Innovative
Products andServices

2.1 R&D and Innovation

Responsible
Procurement

Equal
Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

2.2 Customer Relationship Management

2.1.2 Innovation and R&D

Expected Beneﬁts of Product Development

TSC continues to invest in product R&D and technological innovation, gradually
introducing more professional talents and technologies. As the scale continues to grow, TSC
expanded R&D team in 2022, including new technical professionals in ESD, Wide Bandgap
semiconductors, and other product lines. The workforce of the R&D team is expected
to increase by 60% in 2023. Additionally, We incorporated the R&D performance of new
products into the performance bonus evaluation criteria for researchers to encourage theteam to actively pursue innovation. Since 2020, the annual investment in innovative R&D
has increased year by year, and its percentage of net revenue has also increased withrevenue growth.

▎ R&D Expenses and Percentage of Revenue(Unit: NT$ thousand)

2020

2021

2022

R&D Expenses

42,29656,976

81,604

Net Revenue

3,642,461

4,803,477

5,699,155

Percentage of Net
Revenue

1.16%

1.19%

1.43%

New Product Development Plan
In 2022, TSC launched a number of new product development projects, including
MOSFETs, voltage stabilizer ICs, ESD and other products, aiming to complete verificationand mass production from 2023 to 2025. The products involve different semiconductor
technology applications, such as automotive electronics, Advanced Driver Assistance
Systems (ADAS), Internet of Things, 5G, etc., laying the foundation for the company's longterm development.
TSC has established an effective project management system to track and managetasks and progress across departments to respond to the technical challenges, market
uncertainties, product design, and quality control issues associated with developing
new products. Additionally, the Company conducts training and exchange activities toenhance employees' skills and knowledge in product development, and to promote crossdepartment collaboration and communication.

Increase company revenue
and profit, and achieve
performance goals.
Initiate multiple new
product development
projects to expand theCompany’s product line
and enhance market
competitiveness.

Increase the company’s
mastery and applicationof new technologies toenhance its ability fortechnological innovation.

Improve product quality
and production efficiency,
and reduce problems
and defects in the
product manufacturing
process.

Improve employees'
professional skills andcross-functional
collaboration ability, andpromote the upgrade andtransformation of internalmanagement within thecompany.
Strengthen the Company’s
brand influence and awareness,further expanding market share.

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with Society

Appendix

2.2 Customer Relationship Management

Li-Je Site
Li-Je Site has been investing in the planning of factory automation since 2017 in order to enhance its efficiency, improve
process quality, and meet customer delivery requirements. The digital transition of the factory is being driven by three main
aspects: digital management, smart manufacturing processes, and intelligent inspection, with the aim of winning customer
trust through advanced information technology.

Practicing Intelligent Factory
To improve factory efficiency, enhance process
quality, and meet customer delivery requirements, TSC
established the Automation Development and Integration
Department in 2018. It introduced Manufacturing Execution
System (MES) and Equipment Automation Program (EAP)to optimize processes and product traceability, thereby
improving efficiency and achieving intelligent production.
We plan to invest over NT$200 million in new equipment
to expand MOSFET production capacity from 2022 to2025. Additionally, it plans to invest approximately NT$7
million in unlimited quantity EAP software licenses to meetthe needs of the new equipment. As of 2022, the overall
equipment automation coverage rate of the two factories hasreached 68.8%, and it is expected to reach 70% equipment
automation by the end of 2024.

DigitalManagement• Material management:
Managed throughdigital systems, it can
automatically schedulethe order of material
issuance and verify its
accuracy. Meanwhile,the system isolates
expired and abnormal
items to reduce theimpact of human error.

• Digital System Management (MES/EAP):Equipment canremotely and automatically perform parameter setting,and automatically retrieve production programs. When
products are put into production, the system can
immediately designate the process flow*. Additionally,
production information can be digitized and visualized.
Note: Automotive products can be produced with designatedequipment, and operators must pass verification
before operating, using materials, and automaticallydownloading programs.

• Automatic equipment:Intelligent sensing technology
allows the robotic arm to load and unload materials
automatically. The equipment can complete theentire process automatically, enhancing operational
efficiency.
• Product traceability:Through data management
for statistical analysis, it provides preventive andtroubleshooting functions. For example, it can querythe product batch code to track all quality issues
during the production process, and perform traceability
analysis on the entire history of that batch of products,
achieving effective production and continuous
improvement purposes.

Smart Manufacturing Process

Intelligent Detection• Diffusion process: Using intelligent sensing technology, the equipment
can automatically load / unload throughout the process, control
temperature, and automatically perform air intake.

• Visual inspection: Using
intelligent sensing
technology and digitalmanagement, it ispossible to conduct
automatic visualinspection and markdefective products, andsimultaneously
uploading photos ofdefects data facilitates
analysis and continuous
improvement.

• Photolithography process: Using intelligent sensing technology, theequipment is equipped with an automatic alignment control system toreduce the risk of manual alignment and improve the appearance yield.
• Etching process: Using intelligent sensing technology, the equipment
can automatically acidify / soak / swing / change the tank according to theformula, while monitoring whether the water resistance value reaches
the standard, improving electrical yield.
• Thin film process: Using intelligent sensing technology, the equipment
can load / unload the whole process and automatically switch the coating
material.
• Probing and testing process: Using intelligent sensing technology anddigital management, the equipment can automatically switch production
between different wafers and upload information, as well as monitor
wafer yield and provide alerts and analysis for low-yield wafers.

I-lan Site
Regarding the assembly testing equipment at the I-lan Site, TSC has been gradually purchasing new types of networked
and automated machines since 2017 and conducting assembly testing processes. We have also invested in EAP software
licenses to achieve process parameter control and automation access. The applicable products include diodes and
MOSFETs. Due to the increasing number of newly purchased equipment each year, more software automation engineers
are needed to assist in the implementation and development of EAP. As of February 2023, through hardware, software,and manpower recruitment, the I-lan Site has used machines with EAP automation capabilities to produce over 95% of its
products. Future new products and machines will also be equipped with EAP functionality to maintain the intelligent operationof the factory.
• Material management: Utilize digital systems to achieve visualized warehouse management, thereby improving inventory
turnover efficiency, reducing stagnant materials, enhancing product quality traceability, and increasing production efficiency.
• Assembly and Test process: Using digital management, it is possible to achieve automatic parameter setting, healthindex warning and disposal, and visualization of all production information.

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Appendix

2.2 Customer Relationship Management

Highlights

Establishment of Knowledge Management System
In pursuance of continue practicing product innovation, TSC not
only improves the manufacturing process, but also considers the longterm development of technology and the accumulation of experience.
Therefore, TSC began to establish a Knowledge Management System(KMS) starting in 2022 to systematically store technical data anddocuments, enhance the convenience of technical data transfer andreuse, and accelerate the development timeline of R&D projects. In
the past, without establishing a project technology and research data
knowledge base, once the project took a long time or the R&D personnel
resigned, the experience of the R&D project would be challenging
to pass on, hindering the accumulation of product technology andknowledge. Thus, starting in 2022, we have successively completed
the KMS hardware equipment construction and plans to introduce R&D
projects in 2023, transforming existing technical documents from paper
to digital format, and establishing an SOP document library related toelectrical measurement and instrument equipment.
KMS will provide functions such as document management,
advanced search, and knowledge mapping. We will classify andmanage technical documents based on the Advanced Product Quality
Planning (APQP) framework, and establish a knowledge map that
includes relevant resources such as technical development documents,
databases, and expert opinions. The main purpose of this system is toestablish a database for project R&D technology, greatly improving teamefficiency and increasing the reference value or re-usability of technicaldocuments.

Establish a systematic and scalable
R&D project technical database.

Analyze the usage and development
needs of the R&D Department andintroduce a suitable and maturecommercial knowledge management
platform.

Optimize project document management
comprehensively to enhance teamproductivity.

Expand the project and technicalknowledge map to improve thereference value and re-usability oftechnical documents.

Expected
Beneﬁts ofKnowledge
Management
SystemThe R&D engineer publishes a R&D
memorandum on technical progress
to help the company accumulate corecompetitiveness.

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Appendix

2.2 Customer Relationship Management

Intellectual Property Protection
Intellectual property represents the intellectual results and achievements of thecompany's investment in technology development, especially for the long-term developmentof the company; it is a significant intangible asset. TSC has formulated the Intellectual
Property Management Measures as the basis for managing and maintaining groupintellectual property rights. Meanwhile, to enhance the importance and economic value of
our company's R&D technology and cultivate patents, our company regularly commissions
external firms to provide intellectual property and patent-related training courses for internal
R&D and technical personnel.
In the face of the changing structure and rapidly advancing technology in thesemiconductor industry, TSC has redefined its goals and strategies for managing andmaintaining intellectual property rights. We aim to optimize existing technologies and focus
on researching core technologies, conducting an inventory and review of all patents within
the group, and retaining patents with economic value. Additionally, we place greater emphasis
on applying for new invention patents with higher levels of "originality" and "novelty". As ofnow, TSC has been granted and holds 38 valid patents, including 33 invention patents, 4utility model patents, and 1 design patent.
In addition, the Company's R&D and technical personnel continue to submit new caseapplications (all of which are invention patent applications) to collaborate with a technology

company in the United States for joint development of new technologies. This demonstrates
our company's goal and strategy for intellectual property management and maintenance,
which is not quantity-oriented but quality-oriented.
Aiming to strengthen the determination of our intellectual property deployment, theLegal Department, together with the senior management of the Company, not only plans
regular intellectual property training or industry-related courses for R&D and technicalpersonnel, but has also started planning and formulating new internal management
measures and systems (including the introduction and promotion of trade secret systems)
to enhance the content of technology and patents, and protect the core technology andpatents of the Company.

Patent Application Incentive Measures
To encourage employees to actively engage in research, invention, and innovation,and to improve product quality and functionality, thereby enhancing competitiveness, there
are numerous incentive measures, including proposal rewards, approval rewards, patent
infringement reporting rewards, patent rejection rewards, licensing rewards, and annual
rewards, which encourage employees to protect intellectual property rights through diverse
criteria collectively. In 2022, the R&D Department received rewards and was granted patents
for two projects, "Multi-protected Ring Schottky Diode" and "Multi-trench Schottky diode", inthe United States and Taiwan.

2022 Patent Highlights
Patent Obtained in the United States – Schottky Diode with
Multiple Guard Rings Structures
For 150V and 200V high junction temperature Schottky Diodeproducts, the multi-protection ring terminal area design can evenly
distribute the electric field in the terminal area and make it gradually
increase, effectively improving the stability of the collapse voltage,
and making the product remain in a stable state at high voltage.

Patent Obtained in Taiwan - Multi-trench Schottky DiodeTSC began to develop the second-generation multi-trenchterminal design in 2020. In addition to the original uniform distribution
and progressive electric field design, it is expected to save one layerof photomasking, reducing costs and shortening the process time. It
also saves resources and avoids environmental pollution.
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Appendix

2.2 Customer Relationship Management

2.1.3 Developing Sustainable Products

products or higher power 1200V MOSFET products. This will not only maintain robust growthin operations but also contribute to energy savings, in line with sustainable operation.

Except for continuing to roll out smart factories, improve production efficiency, andachieve process energy saving, we also pay attention to the proportion of renewablematerials and recycled materials used. TSC uses recyclable packaging materials andexpects to reduce energy consumption and indirectly reduce carbon emissions through theoverall performance improvement of products, allowing end customers to reduce energy
usage. We actively involved in product innovation design, developing high-efficiency
products to gradually replace energy-consuming products in the past, such as replacing
traditional diodes with low loss diodes (LLD), and continuing to use sustainable packaging
materials in response to the energy-saving and carbon reduction trend.

Development of Third-generation Semiconductor Materials
Products
With the advent of the era of 5G and electric vehicles, the demand for products
resistant to high temperatures and high pressure, high power, and low power consumption
has increased. Considering the excellent performance and good heat dissipation of SiC
semiconductors in high voltage and high power applications, as well as their wide use inelectric vehicles, charging piles, and 5G, TSC launched a new generation R&D project ofpower devices in 2022. The project applied third-generation semiconductor materials, SiC
and GaN, to existing products with the view to introduce power MOSFET products with lower
power consumption and higher efficiency.
Since 2022, we have collaborated with the integrated industry's professional wafer
fabs and power semiconductor assembly factories to jointly develop SiC Schottky Rectifiers.
The samples fully meet the design specifications and are undergoing reliability andtrustworthiness testing. The first generation of SiC Schottky Rectifiers is expected to belaunched by the end of 2023. In the future, we will continue to make efforts to apply siliconcarbide materials to products of different specifications, such as 650V-1200V Schottky

Utilization of Recycled Materials
In the past three years, due to the expansion of business scale, the total amount of
raw materials used by TSC has increased. Nevertheless, TSC is committed to reducing
the environmental impact of its operations and actively increasing the use of renewablematerials. From 2020 to 2022, the proportion of renewable materials used in our main
products exceeds 50%, with a total renewable material usage of over 1,291 tons in 2022.

▎ Total Quantity and Percentage of Materials Used in the Production of Main
Products and Services.
Unit: Kg

2020
Weight2021

Percentage

2022

WeightPercentage

Weight

Unit: kg

Percentage

Total Amountof Renewable
Material

912,96260.31% 1,190,213

57.35%

1,291,661

52.73%

Total Amountof NonRenewable
Material

600,891

39.69%

885,05142.7%

1,157,710

47.27%

Total Amountof Material
Consumption

1,513,853

100% 2,075,264100%

2,449,371

100%▎ Progress of the New Generation MOSFET Development ProjectIndustry
MarketResearch

Customer
Research

Establish
DesignSpecification
Goals

Research And
Development

Meet Design
Specification
Goals

SampleTestingReliability And
Trustworthiness
Testing

Customer
Submission

Mass
Production

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TSC supports the concept of using green packaging materials and strives to selectmaterials that are recyclable and reusable. Management is carried out by measuring themonthly recycling of product categories and their packaging methods.
I-lan and Li-Je Sites entirely use recyclable packaging materials and reusable cartons,
plastic packaging materials, buffer materials, and other packaging for products to be
shipped to customers. We also continue to pay attention to customers' instructions andrequirements for packaging materials, and integrates with upstream packaging suppliers
in real time to ensure recycling labels are clearly marked on the packaging according tointernational standards. The total consumption of non-renewable materials in TSC in the past
three years has shown a continuous downward trend. In response to growing pushes forenergy conservation and environmental protection, and to make packaging as sustainable
as possible, renewable materials accounted for 35% of the percentage of packaging
materials in 2022, a significant increase of 25% compared with 2021.

Li-Je Site

I-lan Site

(Front-end wafer manufacturing)(Back-end assembly and testing)

Cardboard Box

Cardboard Boxes, Inner Boxes

PP Buffer Material

Carrier Tape

PS Wafer Packaging Box

Cover Tape

PP Wafer Packaging Box

Anti-Static Reels

Dust-free Wrapping Paper

Electronic Component Packaging
Tubes

Round Foam Pads

Equal
Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

2.2 Customer Relationship Management

Utilization of Green Packaging Materials▎ Main Recyclable Packaging Materials Used in Each Site

Responsible
Procurement▎ Total Quantity and Percentage of Materials Used in Main Products andServices

Unit: kg

2020
Weight2021

2022

Percentage

WeightPercentage

WeightPercentage

Total Amountof Renewable
Material

12,696

5.95%

14,02410.13%

16,94235%

Total Amountof NonRenewable
Material

200,552

94.05%

124,366

89.97%

31,45865%

Total Amountof Material
Consumption

213,247100%

138,391

100%

48,400100%

Anti-Static Flat Pockets
4"Tubes
6"Tubes54

Sustainable
Operation and
Governance

About This
ReportInnovative
Products andServices

2.1 R&D and Innovation

2.2 Customer Relationship Management
2.2.1 Customer Satisfaction Improvement
TSC is committed to maintaining customer trust and service quality, and as such takes
responsibility for customer satisfaction. In order to establish a smooth communication withour customers, Sales and Field Application Engineers cooperate with agents to hold productapplication briefings from time to time, so that customers can obtain the latest and mostcomplete product information.
The Company maintains close communication with customers through comprehensive
customer service, including proactively contacting and visiting customers, conducting
satisfaction surveys, and providing a smooth channel for communication of grievances.
Based on customer needs and feedback on products and services, TSC continuously
optimizes customer experience and reduces product defect and recall rates, thereby
improving customer retention and Company performance.
Regarding customer inquiries, orders, and other demands, our goal and commitment isto reply to customers' inquiries within 48 hours. The process is as follows:
Customerinquiry/
Orderreview

Confirm thequotation andorder details,
includingmodel, price,
quantity,
and terms oftransaction

Deliverydate inquiry

Review andreply time ≤48 hours

Ofﬁcialorder
establishedMeets
customer's
order
requirements

Order
conﬁrmation

Send orderconfirmation
within 48 hours

Orderchangereview

Satisfycustomerorder change
requests
and confirm
schedulechanges

Responsible
Procurement

Equal
Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

2.2 Customer Relationship Management

Product Information Inquiry PlatformTo provide customers with more comprehensive product information, TSC is planning
to revamp the official website in 2023. The website will provide complete information on
product items, types, and fields of application, allowing customers to compare and queryin real-time online, and filter based on specifications and their needs, thereby improving
customer satisfaction in accessing product-related information. In addition, when conducting
business and contacting customers, specific product URLs can be provided as references
to enhance matching demands and communication efficiency. In the future, website interface
and information updates will also be continuously optimized.

Customer Grievance Channel
To protect customer rights, we provide customers with diverse channels for filinggrievances. For example, customers can provide feedback or file grievances throughvarious regional Sales Departments in a timely manner. When the Sales Department
receives a grievance, the department will proactively contact the customer within 48 hours
to understand the situation of the abnormal product, including quality, delivery, and service,
and promptly handle the grievance case according to the operating regulations per theCompany's Procedures of the Customer Service Management. Then, the FAE / AE and the
Quality Assurance Department would understand the grievance situation and clarify thecause to formulate a solution and minimize losses for both parties. In 2022, TSC did notreceive any customer grievances.

Customer
Grievance

Emergency
containment
measures/
Cause analysis

After receiving thecomplaint, take
immediate followup actions within
48 hours

After receiving
samples, propose
improvement
measures within 5
to 7 days

Developcountermeasures

Conduct failure
analysis to clarify
reasons for customer
grievances, including
human error,
equipment failure,communication
misunderstandings,
etc.

Implement
standardizationof strategy

Submit a reporton failure analysis
improvement
and standardize
improvement
measures55

About This
ReportSustainable
Operation and
Governance
2.1 R&D and Innovation

Innovative
Products andServices

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

Customer Audit Arrangement Procedure

In addition to a smooth grievance channel, customer satisfaction surveys are crucial
for maintaining strong customer relationships. TSC conducts annual surveys to understandcustomer needs and improve our products, converting those needs into actions to boost
our long-term competitiveness. We select survey list based on the previous year's revenue
and send out surveys covering product, delivery, and service. After collecting these andanalyzing the feedback, we proactively seek further input from customers who gave lower
scores and implement specific improvements. We then follow up six months later withanother survey to confirm the effectiveness of these measures. Our consistent customer
satisfaction scores of 4.5 or above over the past three years demonstrate our commitment toproviding high-quality service.

▎ Customer Satisfaction Survey Rate

Key Customer Satisfaction
Survey Index

Equal
Workplace

2.2 Customer Relationship Management

Customer Satisfaction Survey

Year

Responsible
Procurement

2020

2021

2022

4.6

4.7

4.6

(Max Score: 5 / 5)

Customer Audit
To feedback promptly and comprehensively, the Company seeks to understandcustomer opinions through various means. In addition to the above satisfaction surveys andcustomer grievance channels, TSC periodically cooperates with customers to conduct audit
operations, allowing customers to have a better understanding of our Company's products
and operational processes, and enhancing trust in TSC. In 2022, a total of 3 VDA 6.3 process
audits were conducted with 3 customers, all of which received positive feedback from thecustomers.
With complex challenges such as advancements in production technology andincreasing customer demands, TSC must ensure the implementation of quality managementin the supply chain. When customers request VDA 6.3 process audits, the Company
immediately initiates relevant preparations and arranges customer visitation processes toactively respond to customer demands. Ultimately, through quantified scoring results, we
strengthen product process quality management to ensure that the quality of the supplied
products meets customer requirements and increases our competitiveness.

Note*:
1. When evaluating whether a vendor can become a qualified supplier in its automotive supply chainor assessing items such as its process technology and products, customers will use the VDA
6.3 process audit standard for scoring. The items include product development and process,supplier management, mass production, as well as customer care, satisfaction, and service.
2. Due to the impact of the pandemic, audits include both online and physical audits.

1
2
4
6

The customer has requested
an audit.

Understand the audit forms(online, physical).

3

Understand the purpose
and scope of the audit(product / process, VDA 6.3).

5

Arrange reception(meals, transportation,accommodation, etc.)

Arrange the procedure

Conduct the audit

7

Review and discuss
improvements afterward.

56

About This
ReportSustainable
Operation and
Governance
2.1 R&D and Innovation

Innovative
Products andServices

Responsible
Procurement

Equal
Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

2.2 Customer Relationship Management

2.2.2 Customer Privacy Protection
With the increasing reliance on the Internet for most modern information, the risk of information security is rising, and our emphasis on customer privacy protection has also increased
accordingly. In order to more rigorously protect customer information, and maintain customer trust and Company reputation, we will continue to review and optimize its privacy management
mechanisms.
In view of the globalization of our business and services, TSC is committed to implementing protection mechanisms for personal privacy and personal information to prevent leakage,abuse, and theft, thereby safeguarding the rights and interests of personal privacy. In the event of customer data leakage, we will respond in accordance with the guidelines set out by the
information security policy. The Company plans to gradually introduce the ISO 27001 Information Security Management System as a management mechanism starting in 2023, reducing thepotential impact and risks of customer data breaches by following international standards.
In addition to international standards, information security-related messages and advocacy will be increased through various channels and meetings in the future to enhance employees'
awareness and understanding of information security, explicitly specifying the legal use scenarios, storage measures, responsible departments, and handling procedures for personal data
incidents, continuously strengthening customer privacy protection. In 2022, there were no incidents of violating customer privacy or losing customer confidential information, and no complaints
were received regarding the violation of customer privacy or loss of customer data.

▎ We expect to have in place a complete privacy infringement handling procedure in 2024

Receipt ofgrievance caseAcceptance andhearing of thegrievance case

Investigation of
the case

Review of thecaseStrengtheningof management
mechanisms

Disclosure of
the results andfuture prevention
strategies

57