4Equal Workplace
4.1 Talent Attraction and Retention
4.2 Healthy Work Environment

63

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4.1 Talent Attraction andand Retention
Retention

4.1 Talent Attraction and Retention

Responsible
Procurement

Classiﬁcation

Employee Manpower Structure

Total Employees 612,
68 foreigners

11.1%

0.16%

68

1

612
Employee Distribution in Taiwan 611,
1 overseas worker

FemaleNumber
Percentage
Numberofof theofPeople Classiﬁcation People

Group Subtotals
and Percentages

Percentage
Numberof theofClassiﬁcation People

Percentageof the Total
Number of
Employees

Under 30
years old(inclusive)

71

60.2%

47

39.8%

118

19.2%

31 to 49 years
old

244

56.4%

189

43.6%

433

70.8%

35

57.4%

26

42.6%

61

10.0%

Management
Position

78

65.0%

42

35.0%

120

19.6%

GeneralPersonnel

272

55.3%

220

44.7%

492

80.4%

Permanent
Employee

350

57.2%

262

42.8%

612

100.0%

Temporary
Employee

0

0.0%

0

0.0%

0

0.0%

Nonguaranteed
Hours
Employee

0

0.0%

0

0.0%

0

0.0%

Full-time
Employee

350

57.2%

262

42.8%

612

100.0%

Part-time
Employee

0

0.0%

0

0.0%

0

0.0%

Total

350

57.2%

262

42.8%

612

100.0%

50 years old
and above(inclusive)

Employee Category▎ Employee Distribution and Percentage of Total Employees (by Nationality
and Work Location)

Age

PositionLevel

All 612 Taiwan-region employees are full-time regular employees (including cleaning
staff), with nearly 20% in management positions. The percentage of female managers is
35%. Due to the nature of the industry, the percentage of male employees is currently slightly
higher than that of female employees, but efforts will be made to continuously increase thepercentage of female managers.

Appendix▎ 2022 Employee Distribution in Taiwan (by Various Indicators)
Male

Talent is an important asset of TSC. The Company's goal is to establish a diverse,
equal, and inclusive friendly workplace, respecting the uniqueness and differences of all
employees. In order to achieve this goal, we recruit and employ talents domestically andinternationally, and ensure that relevant processes are strictly in accordance with laws andregulations. Across our global deployment, TSC provides various employment opportunities
through online and offline recruitment channels with a diversified and inclusive recruitment
policy, regardless of gender, age, race, nationality, religion, political affiliation, or sexual
orientation. As such, the Company's employees across both headquarters and sites comefrom all over the world, including Asia (Taiwan, Japan, the Philippines, Malaysia, India,
Vietnam).

Sharing Our
Prosperity
with Society

4.2 Healthy Work Environment

4.1.1 Diversity and Inclusion

612

Green
Manufacturingand Operation

Equal
Workplace※ Note:1. Management positions include entry-level, mid-level, and senior-level supervisors, with grade
ranging from 2 to 6, 7 to 8, and 9 and above.
2. Employee category is determined per the GRI guidelines.

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4.1 Talent Attraction andand Retention
Retention▎ Distribution of Management and Non-Management Levels in 2022 (by Age
and Gender)
Management Level

Category

Age

Non-Management Level

Male

FemaleMale

FemaleUnder 30 years old(inclusive)

0

1

71

46

31 to 49 years old

56

34

188

155

50 years old andabove (inclusive)

22

7

13

19

Subtotal

78

42

272

220

Total

120

492

※ Note: The values in the table above refer to the number of people.

Indigenous People

0.8%

0.9%

10 People 1.9%

Based on TSC's assessment, there are several possible reasons for talent loss,
including employees' remuneration considerations, promotion opportunities, opportunities for
future development, and employee benefits. From the perspective of sustainable operations,talent is one of the Company's most significant assets. To reduce talent loss and strengthen
overall human resource management, we will improve the response rate of current employee
surveys in the future, conduct more comprehensive investigations and analysis of reasonsfor departure, and continue to enable each employee to fully unleash their potential.

Under 30
years old(inclusive)

1.0%

0.6%

Age

2022

14 People 2.3%
2020

2021

2022

2020

Appendix

In order to continuously enhance the diversity of the work environment, TSC uses online
channels to recruit talent, including establishing company pages and posting job openings
on platforms such as LinkedIn and 104 Job Bank, This not only helps to expand TSC's
exposure but also promote our job openings to highly matched talents. In 2022, in responseto the Company's long-term development plan and organizational adjustments, various
professional departments and the expansion of existing departments were added, including
Public Relations Department and Supply Chain Management Department. Thus, the numberof employees in 2022 increased by more than 10% compared with 2021.

People with Disabilities

0.9%

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Diverse Recruitment Channels and Talent Management

Distribution of new employees

7 People 1.5%
2021

Green
Manufacturingand Operation

4.2 Healthy Work Environment

1.3%

2020

Equal
Workplace▎ Distribution of New Employees (by Age and Gender)▎ Employee Distribution (Based on Diversity Indicators)
Total

Responsible
Procurement

2021

2022

※ Note: The percentage represents the ratio of the number of employees in this category to thetotal number of employees.

31 to49
years old
50 years
old andabove(inclusive)

2021

2022

Male

FemaleMale

FemaleMale

FemaleNumber ofPeople

17

11

21

18

52

29

Percentage

22%

13%

17%

15%

28%

16%

Number ofPeople

32

17

52

28

51

39

Percentage

40%

22%

42%

22%

28%

21%

Number ofPeople

2

0

2

2

11

2

Percentage

3%

0%

2%

2%

6%

1%

51

28

75

48

114

70

Subtotal
Total

2020

79

123

184

※ Note: The ratio is calculated on the basis of the number of people / new employee hires forthat year.

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4.1 Talent Attraction andand Retention
Retention▎ Distribution of Employee Turnover (by Age and Gender)
2020

Under 30
years old(inclusive)

Age

31 to 49
years old
50 years
old andabove(inclusive)

2021

2022

FemaleMale

FemaleMale

FemaleNumber ofPeople

26

22

14

12

20

13

Percentage

18%

15%

13%

11%

18%

12%

Number ofPeople

54

33

44

29

38

30

Percentage

38%

23%

40%

27%

35%

27%

Number ofPeople

7

2

8

2

4

4

Percentage

5%

1%

7%

2%

4%

57

66

43

62

87
144

109

Equal
Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

4.2 Healthy Work Environment

Remuneration Policy

Male

Subtotal
Total

Responsible
Procurement

109

The salary and benefits of employees in TSC are determined in accordance with theLabor Standards Act (Taiwan) and relevant laws and regulations. They are implemented inaccordance with the company's Articles of Incorporation and relevant management measures
to ensure that the overall remuneration of employees complies with government regulations
and market trends. In addition, a clear employee performance evaluation system is established
to review and optimize the system annually to motivate outstanding talents. Regarding the
distribution of employee rewards, the individual dividend amount to be distributed to each
employee is determined based on their job performance, scope of responsibilities, and special
contributions, in accordance with the Employee Bonus and Stock Ownership Method.

▎ Gender Remuneration Ratio
All

2020

2021

2022

Basic Salary with Remuneration

Female: Male

Female: Male

Female: Male

4%

Assistant Vice President Level

0.37:1

0.42:1

NA*

47

Manager and Assistant Manager
Level

0.18:1

0.30:1

0.37:1

Section Manager Level

1.09:1

0.78:1

0.69:1

General Employees

0.82:1

0.75:1

0.72:1※ Note:1. The ratio is calculated on the basis of the number of people / employee departures for that year.
2. All employees are full-time and permanent.

※ Note:1. The gender remuneration ratio may vary slightly due to factors such as individual performanceand seniority. Remuneration standards at TSC are the same for both male and female and do
not differ by gender. Nevertheless, due to the characteristics of the semiconductor technology
industry in Taiwan, the supply of women in the relevant labor market is significantly lower thanthat of men, resulting in a higher pay ratio for men than for women.
2. There were no female assistant vice presidents in fiscal 2022.

▎ Median Salary of Fulltime Employees in Nonsupervisory Positions

NT$585 thousand
NT$541 thousand
2021

2022
MedianThe median salary of full-time employees in non-supervisory positions in 2022 increased by
NT$44 thousand compared to 2021, with a growth rate of 8.13%.
66

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Retention

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Procurement

Green
Manufacturingand Operation

Equal
Workplace

Sharing Our
Prosperity
with Society

Appendix

4.2 Healthy Work Environment

4.1.2 Human Resource Development

Course Planning Process

Talent Retention

In order to enable employees to leverage their professional expertise and knowledge
skills, TSC places significant emphasis on the planning and implementation of professional
training. This is done to showcase the training effectiveness and relevant applications of
employees' learning outcomes. The main planning process is as follows:

To retain talented employees, we offer equal salaries and diverse benefits, fostering
employee cohesion and supporting sustainable development. The Company regularly
reviews market compensation levels, reward structures, and benefit policies, ensuring
effective communication with employees. This forms the basis for comprehensive salary andbenefit packages, including base salary, allowances, and performance bonuses, to retain
elite talent and support continuous growth.
We maintain a stable promotion system by prioritizing qualified employees and regularly
assessing performance and career development. Adjustments are made based on job
functions and potential. To adapt to industry changes, TSC provides professional skills
training and internal rotation opportunities. Talent development is actively promoted throughinternal training, overseas programs, and succession plans. For employees seeking careertransitions, we collaborate with the Employment Services office to provide relevant job
information.

Regularly review
rewards andbenefits

Ensure effective
communication with
employees

Review employee
career development

Actively promotetalent cultivation

Determine training goals

Assess employees' needs

Design course content

Conﬁrm resources for instruction

Talent Development and Cultivation
TSC attaches great importance to cultivating and developing talents of supervisors andcolleagues at all levels. To meet the needs of the company's development, we conduct anannual company-wide training needs survey to understand the technical skills, professional
knowledge, and leadership and management needs of supervisors and employees. Basedon these needs, corresponding courses are planned and designed in the training curriculum
framework.
The arrangement of training resources is based on the type of training courses, andboth internal and external resources are utilized for planning. Internal trainers with expertisein the field may be selected from within the company, or external experts who possess
the required knowledge may be employed as trainers. For example, we plan to invite
external trainers in 2023 to conduct competency module workshops for middle and seniorlevel supervisors as well as talents with potential. The workshops will use a combinationof the focus workshop approach and the habit theory method to delve into colleagues'
perspectives, viewpoints, and expectations of successful job functions within the company.

Schedule training time andlocation

Implement training courses

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Comprehensive and Diverse Training

Responsible
Procurement▎ Average Training Hours for Each Position Level
2020

2021

2022

Position
Level

Management
Level

Nonmanagement
levelManagement
Level

Nonmanagement
level

Individual
effectivenesstraining

Each department organizes external training courses based on
job-specific skills, such as project management, research anddevelopment expertise, supply chain management, and ESG
studying. In addition, employees can also regularly participate inon-the-job training for environmental protection, quality assurance,
occupational safety and health, and various professional
competencies based on their skill levels, training assessments, orlaws and regulations to lay the foundation for their own job needs
and future development.

Appendix

Nonmanagement
levelManagement skills
training

To improve the management skills of supervisors, promote
effective communication at work, and provide employees with asound workplace, training is not only targeted at newly promoted
supervisors but also provides specialized training according toorganizational needs to assist mid-level managers in enhancing
their leadership abilities. TSC will continue to conduct training
on the management capabilities of supervisors at all levels inaccordance with the Company's mission and operational goals.

Sharing Our
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Level

New employee
training

Green
Manufacturingand Operation

4.2 Healthy Work Environment

TSC offers various training courses to employees of different position level and genders
based on their functional requirements, with the aim of improving their professional expertiseand abilities, enhancing their performance, and supporting their own advancement andcareer growth. In 2022, the average number of training hours per employee was 57.42 hours.

Pre-employment training can effectively aid new employees in
rapidly comprehending the Company's overview, organizational
structure, company regulations, business philosophy, emphasis on
quality, and management policies. In addition to understanding thecompany's policies and systems on the first day of employment,
new employees will undergo training courses on common language(core values, accountability) one to two months after joining thecompany. This enables them to better understand and assimilate
into the corporate culture. All departments will continuously
update the training blueprint for new employees in their respective
departments.

Equal
Workplace

Training
Hours

5,130.00

14,095.50

5,347.00

17,804.50

7,398.00

27,744.50

Numberof People

101

373

109

431

120

492

Average
Training
Hours

50.79

37.79

49.06

41.31

61.65

56.39

▎ Average Training Hours by Gender
2020

2021

2022

Male

FemaleMale

FemaleMale

FemaleTraining
Hours

11,646.26

7,579.24

14,234.14

8,917.36

22,305.50

12,837.00

Numberof People

259

215

299

241

350

262

Average
Training
Hours

44.97

35.25

47.61

37.00

63.73

49.00

68

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Retention

Developing Employee Skills, Building Succession Plans
The succession plan aims to secure the sustainable operation of the company. Throughprofessional training, knowledge transfer, and talent development, outstanding and potential
employees are selected from within the company for cultivation and development. The planestablishes succession plans at various levels and regularly assesses the development andimplementation of the plan, providing potential talents with opportunities to take over future
positions.
During the successor selection stage, TSC's management-level successors mustpossess fundamental skills such as management, decision-making, analysis, and crisis
handling to effectively apply executive power in professional fields. To this end, TSC will
select all-round talents through performance, project execution, and personality traits.
To effectively enhance successors' capabilities, the Company plans to provide training
in areas such as strategic planning, international operations, global marketing, innovation
management, and new economy. The detailed plan is as follows:

Practical Training

Training Program

Job Rotation andProxy System

By executing various project tasks, successors can develop skillsin the three major areas of management knowledge, management
skills, and management leadership, so as to identify insufficiencies
during the process and further deepen both professional andfunctional development.
The Human Resources Department holds key management
professional courses to cultivate and train middle and senior
supervisors, as well as deliver succession planning. The courses
cover various aspects such as management competencies(including strategic thinking, problem identifying and solving,
coordination and planning, project execution, communication
skills, talent leadership and development, and team coordination),
professional skills (including operational market judgment,
accounting, financial analysis, business management, crisis
handling, industry knowledge, and international market
perspectives), and personal development.

Combining job rotation training and the proxy system allows forthe development of versatile and comprehensive leadershipmanagement and decision-making execution capabilities forkey management levels, and ensures excellent organizational
development and company operations.

Responsible
Procurement

Equal
Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

4.2 Healthy Work Environment

Continuous Improvement of Employee Performance
Management Mechanism
Reshaping Performance Management Mechanism
To effectively measure the correlation between employee performance andcompany goals, TSC held a performance goal-setting workshop in 2022. The aim was tointegrate the principles of performance goal-setting into the performance management
system. Through active collaborative learning and the establishment of stringent
selection criteria, potential internal certified trainers were selected. Before the year-end
performance evaluation, these internal trainers taught the principles of goal setting. In the
fourth quarter, employees applied the principles to set their key performance indicatorsfor 2023. Supervisors then discussed work goals that align with these principles with
their team members.

SMART Workshop for Performance Management
The SMART workshop was held in the third quarter of 2022, inviting professional
speakers to conduct multiple courses. The overall participation rate was 98.3%. The
speakers presented clear and easily understandable concepts regarding performancegoal-setting principles, using lively and engaging activities. This helped employees
grasp the process and principles of setting performance goals and connecting theCompany's vision and operational plans, departmental goals, and individual employee
work goals, gradually establishing key performance indicators.

SMART Internal Trainer Certiﬁcation
TSC also had all indirect personnel in Taipei and I-lan undergo training, facilitatedby the HR team and rigorously assessed by the lecturer group, from which excellent
employees with potential were selected as internal certified lecturers. Through thisprogram, colleagues shared valuable feedback, furthered their personal development,
and met the certification standards while achieving individual goals. In addition toabsorbing the aforementioned knowledge, the internal training lecturers also embody
the spirit of course teaching and continuous improvement. Several certified lecturers
will subsequently hold multi-level courses to guide all grassroots personnel and newcolleagues. In 2022, we accumulated knowledge and training energy regarding
performance goal-setting principles, and a number of certified instructors were selectedfrom various units. In addition, in order to demonstrate appreciation and encouragement
the ongoing dedication of lecturers to the Company's training and improvement ofinternal teaching quality, with the support and participation of senior supervisors, anaccreditation recognition event for the certified lecturer group was conducted during the
All-Hands Meeting in the first half of 2023.

69

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Workplace

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Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

4.2 Healthy Work Environment

Establishing a New Performance Management Mechanism

Constructing Competency Module

In 2022, when establishing the assessment criteria for the upcoming fiscal year,
we adopted a new performance management system incorporating the principles of
performance goal-setting. This system enabled supervisors and employees to effectively
communicate attainable goals using definite and measurable indicators, facilitating
positive interactions and improving past practices.

To promote operational goals and establish clear and measurable competency
standards for employees, TSC has invited professional instructors to hold workshops focusedon competency construction. The Company aims to construct a unique competency module
by leveraging competency inertia, fostering consensus among employees and aligning themwith future operational goals. We also hope to establish a standardized reference that canguide future performance appraisal, promotion selections, training and development, andrecruitment as we implement our plan.

Based on the principles of performance goal setting, TSC has implemented a new
performance appraisal system. Different percentages of key performance indicators
have been set for different job levels. In addition to the regular annual performanceappraisal, supervisors can communicate implementation progress through the principles
of performance goal-setting and interact with employees during the mid-year to guide
expectations for tasks and provide care for employees. This enhances transparency
in performance evaluation, with a focus on improving individual and organizational
performance.
TSC provides all employees with reliable support tools and standards to set future
annual performance goals by reshaping the principles of performance goal-setting andconducting regular employee career development review, furthering the direction of thebusiness plan and helping staff gradually grow alongside the Company.

Percentage of Employees Undergoing Performance and Career Development Review
2020
Male

FemaleTotal

Review
Percentage

Management Level

66

35

101

100%

Non-management level

193

180

373

100%

To align with our mission, vision, business philosophy, values, and operational growthgoals and strategies, we invite consultants to design interview frameworks and questions,and then invites middle and senior-level supervisors, as well as talents with potential, toparticipate in focus workshops facilitated by the consultants and integrating the habit theory
approach. The purpose of these is to collect employees' insights, opinions, and anticipations
regarding competencies for corporate success. The qualitative findings from these
explorations are documented and used as a draft record.
We also organized a survey to explore the successful competency topics across theorganization, with the goal of surveying key talent. Subsequently, qualitative research andquantitative statistical results will be integrated to extract the concepts and frameworkof functions. From this, we will establish the behavioral levels of corporate functions.
Finally, it will be further focused on by senior supervisors to confirm that the content of
the competency framework and behavioral levels align with the Company's development
direction and expectations.
The competency module is mainly divided into two major: Core Competency andLeadership Competency. Each competency includes various items and levels of behavior toestablish definitive behavioral indicators. Based on our development strategy, culture, andmanagement needs, we have used scientific analysis tools and rational thinking to bring
together the Company's mission, vision, business philosophy, values, and goal strategies.

2021
Management Level

71

38

109

100%

Non-management level

228

203

431

100%

2022
Management Level

78

42

120

100%

Non-management level

272

220

492

100%

Core Competency

Leadership Competency

Accountability

Strategic Planning

Teamwork

Organizational Leadership

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Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

4.2 Healthy Work Environment

Management Outlook and Future Plans
Talent is the driving force of sustainability, and in the aspect of talent cultivation, TSC's prospects and plans are as follows:

We plan to enhance the professional capabilitiesof our employees. In 2022, we introduced a
dedicated HR team to reviewed our existing
training strategy. The HR team established acustomized learning and development programfor our employees to align with the company's
strategic development. The education and training
system will be planned around core functions,management functions, professional abilities, andgeneral education training.

We plan to promote a comprehensive competency
framework and invite professional consultants to
conduct workshops. These workshops will coverdefining "competency" and communicating theoverall competency framework and content of TSC.
Our emphasis is on the core functions serving as
the main motivating factor, targeting middle andsenior supervisors and indirect personnel locatedin Taipei and I-lan. In addition, the plan integrates
the concept of competency into performanceappraisal, promotion selection, training anddevelopment, recruitment and talent selection, andinternal activities, allowing employees to internalize
it diversely and coherently.

▲ Through the training of external instructors, the course aims to gradually establish key
performance indicators in order to reshape performance goal-setting principles.

To consider the promotion of efficient workers toteam leaders, we hope to build an understandingo f t h e ro l e o f s u p e r v i s o r s , s t re n g t h e n t h e
c o m m u n i c a t i o n s k i l l s o f c u r re n t a n d n e w
supervisors, clearly convey instructions, andbuild team consensus in order to effectively
communicate and collaborate within the team.
Therefore, a training program on communicationand collaboration for junior and middle-levelsupervisors will be held.

To improve work efficiency in TSC, we aim to
optimize the onboarding process. This will
reduce the time and effort costs for both new
employees and management, enabling quicker
task assignment for new hires, making new
employees feel valued and part of the Company's
culture and team, and ensuring that all details of
the onboarding process are handled properly. The
optimized process can be carried out digitally to
reduce risks and costs.

▲ Employees actively engage in class activities, demonstrating the high level of participation andengagement.

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Workplace

Green
Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

4.2 Healthy Work Environment

4.2 Healthy Work Environment
4.2.1 Employee Health and Beneﬁts

Total

Male

Female

Total

Male

FemaleTotal

Childcare Policy

26

17

43

28

14

42

23

13

36

Actual Number of Employees
who Applied for Parental
Leave in the Year (B)

1

4

5

2

1

3

1

4

5

Application Rate (B / A)

4%

24%

12%

7%

7%

7%

4%

31%

14%

Number of Employees
who have Taken Parental
Leave and are Eligible for
Reinstatement in the Year (C)

1

2

3

2

3

5

0

2

2

• Allow employees to take unpaid parental leave, maternity leave, prenatal
check-up leave, and paternity leave in accordance with the Act of Gender
Equality and Regulations for Implementing Unpaid Parental Leave forChild-rearing.

Actual Number of Employees
who Applied for Reinstatementin the Year (D)

1

2

3

2

1

3

0

2

2

• Enable employees to apply for parental leave or adjust their working hours
to balance work and family responsibilities.

Reinstatement Rate (D / C)

33%

60%

0%

• Employee labor insurance and National Health Insurance• Include term life insurance, accident medical insurance, hospitalization
medical insurance etc. (employees' dependents are eligible to participate
in the insurance coverage)• In accordance with the Shareholders' Meetings By-laws and Shareholders'
Agreement, employees are entitled to a company incentive subsidy of
30%, which is designed to encourage all colleagues to play active roles inbusiness operations and strive for outstanding performance.

• Offer various employee benefits, including childcare subsidies andeducation incentives.
• Provide a birth subsidy for each newborn as a congratulatory gesture.
Unpaid Parental
Leave

2022

FemaleEmployee Stock
Ownership Trust

2021

Number of Employees Eligible
to Apply for Parental Leave in
the Year (A)Employee Care
Employee Group
Insurance

2020
Male

Employees' well-being and overall health are crucial aspects of the company's
sustainable operation. By offering comprehensive benefit plans, flexible childcare policies,
and a range of health promotion initiatives, TSC is able to attract and retain exceptional
talent. This not only increases employee satisfaction and work efficiency, but also ensuresthe company's stable growth and long-term competitiveness.

▎ Employee Unpaid Parental Leave• In 2022, five colleagues in Taiwan applied for unpaid leave. The
reemployment rate in 2022 has increased to 100%, compared to the 60%
rate in 2021. We also monitor the employment status of colleagues who
have returned to work. In 2021 and 2022, 100% of colleagues who took
unpaid parental leave and returned to work served for more than one year,
regardless of gender.

100% 100% 100% 100%

100% 100%

Number of Employees
Reinstated in the Previous
Year (E)

0

6

6

1

2

3

2

1

3

Number of Employees
Remaining One Year After
Reinstatement in the Previous
Year (F)

0

4

4

1

2

3

2

1

3

Retention Rate (F / E)

0%

67%

67%

100% 100% 100% 100% 100% 100%72

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Workplace

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Manufacturingand Operation

Sharing Our
Prosperity
with Society

Appendix

4.2 Healthy Work Environment

Retirement Plan
TSC has implemented a retirement pension system toensure the well-being of employees after they retire. Thissystem is designed in accordance with the law, including
the retirement procedures outlined in the Labor Standards
Act and the defined contribution plan specified by the
Labor Pension Act. Additionally, the Labor Retirement
Reserve Supervisory Committee has been established.
Since July 1, 2005, TSC has been allocating 6% of theretirement pension to employees' Individual Labor Pension
Accounts monthly, as regulations require. If employees
choose to make voluntary contributions to their retirement
pension, the contribution will be deducted from theirmonthly salary and transferred to their Individual Labor
Pension Accounts at the Bureau of Labor Insurance, basedon the voluntary contribution rate. Employees can selecteither the relevant pension provisions of the previous
or new retirement system, while maintaining their workseniority before implementing these regulations. For the
fiscal year 2022, TSC has fully allocated retirement pension
expenses of NT$17,841 thousand to the Bureau of Labor
Insurance, in accordance with the retirement pension
allocation method.

Incentive System and Employee Beneﬁts
To foster a positive learning corporate culture, TSC publicly acknowledges senior employees and exemplary staff,
commending their contributions, service, and exceptional performance, thereby setting a positive example for theircolleagues. In terms of benefits, TSC not only grants holiday bonuses to all employees, but the Employee Benefit Committee
also plans a range of benefits each year. These include cash gifts for childbirth, scholarships for employees' children's
education, cash gifts for marriages, birthday cash gifts, condolence funds for illness or death, as well as other subsidies
and gifts. These initiatives aim to promote a healthy work-life balance for employees. Additionally, the Employee Welfare
Committee organizes various activities, such as festive events and year-end parties, to express gratitude for the efforts of all
employees.

Our benefit plan is in accordance with the Labor
Standards Act. The retirement pension for employees isdetermined by their years of service and the average salaryin the six months before retirement. Qualified actuaries
annually calculate and allocate funds to the Workers'
Retirement Reserve Funds Account at the Bank of Taiwan
to ensure employee retirement benefits. As of the end of2022, the Workers' Retirement Reserve Funds Accountbalance at the Bank of Taiwan is NT$41,587 thousand.
The retirement fund, as stipulated by the Labor Standards
Act, is managed by the Bureau of Labor Funds, Ministry ofLabor, and its utilization is governed by the Regulations for
Revenues, Expenditures, Safeguard, and Utilization of theLabor Retirement Fund. The minimum annual return on thesettlement and distribution of the fund must not be lower
than the return based on the interest rate of a two-year
fixed deposit in a local bank.

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4.2 Healthy Work Environment▎ 2022 Incentive System and Beneﬁt Expenditure
Item

Frequency

Highlights

Once a year

The company distributes annual holiday bonuses to express blessings and gratitude, motivate employees towork actively, and enhance overall performance.

Mid-Autumn Festival
Dragon Boat Festival
Labor Day
Subsidies for Marriage, Funerals, andFestivals - Cash Gifts for Childbirths
Subsidies for Marriage, Funerals, andFestivals - Cash Gifts for Marriages
Festivals

Subsidies for Marriage, Funerals, andFestivals - Condolence Money for
Bereavements

Number of Applicants Approved

The company has an Employee Welfare Committee that organizes a range of benefits and activities
annually. In 2022, the committee primarily allocated its benefit funds towards cash gifts for occasions suchas childbirth, marriage, birthdays, as well as providing condolence money for instances of illness, injury, andbereavement.

Subsidies for Marriage, Funerals, andFestivals - Condolence Money for Injury
or Illness
Other (Birthdays)
Childbirth Subsidy - Parental Subsidy

Number of Applicants Approved

TSC has implemented a range of benefits and subsidies for employee childbirth. These initiatives aim tosupport employees in achieving a balance between their professional growth and family responsibilities. In
2022, We provided childcare subsidies to 78 employees and educational incentives to 110 employees.

Planned by the Benefits
Committee, multiple times per
year

In 2022, due to the COVID-19 pandemic, numerous routine welfare activities organized by the Welfare
Committee have been canceled in adherence to the government's epidemic prevention policy. Nevertheless,as a gesture of gratitude towards our colleagues, we have distributed gift vouchers instead, encouraging
them to plan their own holiday itineraries.

Exemplary Employee

Based on annual planning,
multiple times per year

At the TSC online year-end party in 2022, eligible senior employees were presented with certificates andgold coins. Each unit recommended exemplary employees, who were then selected by senior executives
to receive a cash prize and a certificate. The company's intranet also published the list of exemplary
employees, promoting a culture of positive role modeling among the staff.

Physical Examinations

Once a year

TSC partners with a team of medical professionals to ensure the well-being of its employees. The Company
goes beyond legal requirements by offering regular physical examinations to its staff. In 2022, a total of 490
physical examinations were conducted, surpassing 80% of the workforce.

Work from Home

Number of Applicants Approved

During the pandemic, employees could apply for remote work.

Christmas Cookie Delivery

Form and frequency of activities
determined according to festivals.

In 2022, senior executives from each district dressed up as Santa Claus to show appreciation for theircolleagues' efforts. They distributed small, warm gifts, creating delightful memories for the employees.

Online Year-End Party

Form of year-end banquet
determined according to annual
planning.

In 2022, TSC hosted its year-end banquet online and distributed year-end cookies as part of our pandemic
prevention policies. We are pleased to report that the participation rate for 2022 was 100%.

Childbirth Subsidy - Educational Benefits

MeetupsSenior Employees

Employee-related

Once a year74

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4.2 Healthy Work Environment

Promotion of Physical and Mental Health andWork-life Balance
Health Promotion Resources and Activities
We partner with professional medical teams to conduct regular physicalexaminations for employees at our headquarters and various sites. Our healthmanagement program goes beyond legal requirements in terms of examination
duration and available resources, showcasing our unwavering dedication toemployee well-being.

HealthPromotion
Activities• Organize a sports competition (basketball shooting contest) to encourage employees toparticipate in sports, connecting and sharing joy with each other.

Active Prevention of Pandemic

2022 Workplace• Health
Promotion
In 2022,a t ot al of Results:
490 indiv idua l s u n d e r w e n t h e a l t hconsultations and interviews as part of our regular on-site
medical services. The examination rate reached 80%.

HealthService• Post health education posters (hand-washing; healthy eating;smoking, betel nut, and alcohol cessation; sexual harassment
prevention).
• Annual health lecture is held regularly.
• Work Overload Prevention: Arrange appropriate medical
services, manage working hours, conduct interviews, andprovide care. All subjects requiring health monitoring arescheduled for face-to-face interviews during regular on-site
medical services, ensuring a tracking rate of 100%.

HealthProtection
Plan• Prevention of Ergonomic Hazards: Gain an understanding of thecondition and causes of muscle injuries, and make necessary
adjustments to work.

During the pandemic, we have implemented measures to prioritize the health andwell-being of our employees. This includes allowing flexible working hours andthe option to work remotely. Additionally, we have been actively communicating
pandemic prevention and control information to keep our employees informed andensure a safe work and living environment.

In 2022, as a result of the COVID-19 pandemic, certain activities have been
modified to distribute gift vouchers as a token of appreciation to employees for theircooperation with the epidemic prevention measures, in line with the government's
proactive policy. Additionally, employees are encouraged to take advantage ofthese benefits to plan their own holiday trips, thereby promoting their overall healthand well-being.

• Maternal Health Protection: Assisting pregnant women in
conducting physical and mental assessments, evaluating theirwork environment, and making necessary adjustments to theirwork if needed.
• By distributing health questionnaires to survey the physical andmental conditions of employees within the company, achieving
a 100% response rate, and conducting annual regular follow-up
management by on-site medical personnel in each region, we
have ensured comprehensive monitoring of employee health.
• General Physical Examinations: Arrange for employees fromall sites to participate in physical examinations, surpassing
regulatory requirements.

PhysicalExaminations• Health Tracking Management: Professional evaluation of healthtracking proficiency by on-site medical staff in every district. For
those in need of further health tracking, all of them have had-face-to-face interviews arranged during regular on-site medical
services, achieving a tracking rate of 100%.

▲ On-site physician, caring for
employee health▲ Physical examinations,
implementing occupational
disease prevention▲ Warm Christmas Gift Giving

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4.2 Healthy Work Environment

Highlight Story

2022 Healthy Weight Loss Competition

Brilliant Results Across the Board

To enhance the physical and mental well-being of our employees, we haveinitiated the "2022 Healthy Weight Loss Competition." This competition serves as acatalyst for fostering a consistent exercise routine among our staff. Spanning threemonths, the weight loss competition signifies a new chapter in sports at TSC. Its
primary objective is to decrease body fat percentage, and both individuals and teams
are encouraged to partake. Cash prizes and commendations were awarded to thewinners in both the individual and team categories. Furthermore, each participant waspresented with a custom-designed sports towel, promoting camaraderie in exercising
together or capturing moments while on the move.

The weight loss competition serves multiple purposes for employees. It encourages them
to focus on their own physical well-being, improve their fitness levels, and adopt healthy eatingand exercise routines. Additionally, it boosts their self-confidence, expands their social network,and strengthens their relationships, while providing psychological relief from stress and garnering
enthusiastic responses from employees. Following numerous invitations, a total of 174 colleagues
formed 58 groups to participate in this event.

"Feel free to eat, be happy and slim; Easily lose
weight, and never regain."
We will organize health and diet lectures, inviting professional nutritionists
to share theories and experiences of healthy weight loss with all colleagues in thecompany. The lectures will cover topics such as correct dietary habits, increasing
basal metabolism, lowering blood sugar, and avoiding dietary imbalances. We will also
customize the content for office workers, providing information on obtaining healthy
meals and exercise options that fit their lifestyles. This will help them cultivate good
dietary habits and establish exercise plans.
Participants establish individual and team weight loss objectives, measurement
criteria, timelines, and implementation strategies, including:
1. Controlling calorie intake; choosing low-fat, low-sugar foods; and increasing
consumption of vegetables, fruits, and high-quality proteins.
2. Developing a weekly exercise plan that includes a variety of activities, such as
running, swimming, cycling, yoga, and more, selecting the exercise method andschedule that best fits your needs.

After three months of perseverance and determination, we successfully reduced body fat by
a total of 274.5%. This weight loss not only improved overall health, but also promoted a healthierlifestyle.

Measurement Stage

Cumulative Fat Loss Percentage

1st Month-138.30%

2nd Month-223.30%

3rd Month-274.50%

Follow-up: Healthy Living as Part of Sustainability
The Company's plan involves promoting healthy lifestyles and dietary habits among
employees, while also providing them with relevant knowledge and information. Additionally, we will
reintroduce the public group weight loss goal. Employees can share their successful experiences,
problems, and suggestions through various social media platforms, discussion forums, and online
chats. We aim to foster long-term effects and interactive communication, even after the competition
concludes, to make health an integral part of life.

3. Regularly measuring indicators such as weight, body fat, muscle mass, etc.,
analyzing progress, and tracking goal achievement.
4. Selecting a sport or challenge, such as daily step goals or weekly long-distanceruns, and progressively elevating the exercise intensity while incorporating
additional challenges.
5. Encouraging and sharing accomplishments with colleagues to foster a collaborativeenvironment and strengthen team unity.
Despite the pandemic's impact in 2022, colleagues have made efforts tominimize visits to enclosed spaces like gyms. However, this has not impeded theCompany's dedication to promoting a healthy lifestyle. TSC has capitalized on thissituation to encourage employees to exercise in more suitable environments, suchas running in expansive parks or playgrounds, and conducting bodyweight strength
training at home. This demonstrates the flexibility and diversity of a healthy lifestyle.

▲ TSC Sports Towel
encourages employees
to travel and exercise
together.

▲ 2022 Healthy Weight
Loss Competition - Most
Popular Award▲ 2022 Healthy Weight Loss
Competition - Participation
by Independently Organized
Teams

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4.2 Healthy Work Environment

4.2.2 Labor Relations and Human Rights Management
Management and Promotion of Human Rights Policy
TSC places great importance on labor and human rights, adhering to the principles of anti-discrimination and anti-harassment. To ensure this, we have implemented the "Prevention of
Sexual Harassment"and "Prevention of Workplace Unlawful Infringement"policies. Additionally, we have established a clear complaint channel and a system of rewards and punishments. TSCaligns with international human rights standards, including the Responsible Business Alliance (RBA) Code of Conduct, the Universal Declaration of Human Rights, and domestic laws andregulations. Moving forward, we will continue to provide relevant education and training on human rights protection for our employees and publicly disclose information in prominent areas within
the workplace.

▎ Human Rights Management Measures
Goal

Actions Taken

Performance• RBA policy explicitly forbids child labor, the exploitation of children, physical punishment, the abuse of
women, forced labor, and other forms of mistreatment.
• The employment of individuals under the age of 15 is prohibited, as outlined in the Rules of Work.
Effectively Eliminate Child Labor• Age verification (identification) is conducted during the recruitment process to prevent the employment of
individuals who may be under 18 years old, in order to ensure compliance with child labor regulations.
• In accordance with RBA regulations, we have established the Regulations on the Protection and Managementof Child and Adolescent Workers to prevent and safeguard underage workers (aged 16-18) who willingly
choose to be employed.

In the past three years, there were no
incidents of using child labor or young
workers in TSC.*1• The Company does not require employees to submit their personal identification documents for safekeeping.
Eliminate All Forms of Forced orCompulsory Labor• In accordance with the RBA guidelines, we have implemented Rules of Work as well as clear resignationand suspension of salary and resignation policies to ensure freedom of choice in employment and working
hours. Our employees have the freedom to resign and have the flexibility to arrange their non-working hours,
thereby eliminating any instances of forced labor or debt labor.

In the past three years, there were no
incidents of forced or compulsory labor in
TSC.

• TSC requires new employees to sign a Code of Ethical Conduct document.
Prevent the Occurrence ofDiscrimination• Establish and promote internal training for TSC Ethical Corporate Management Best Practice Principles andthe TSC Code of Ethical Conduct.
• Ensure equal rights for employees of different races, genders, religions, nationalities, or other identities, andsafeguard them from any form of infringement.

I n t h e p a s t t h re e y e a r s , t h e re w e reno incidents of discrimination or antidiscrimination incidents in TSC.

Prevent Infringement of theRights of Indigenous People• In accordance with the work regulations, a one-day holiday is granted for the seasonal festivals of the
fourteen indigenous tribes.

In the past three years, there have been
no incidents involving infringement ofindigenous rights in TSC.

The Eradication of Slavery and
Human Trafﬁcking• TSC has filled out the Slavery & Trafficking Risk Template (STRT) and published it on the official website.

In the past three years, there were no
incidents of the use of slavery and humantrafficking in TSC.

Note*1: The scope includes all operations and suppliers in TSC.

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4.2 Healthy Work Environment

Communication and Grievance Channels

Real-time Announcement

Two-way Communication• Intranet - The latest
Company news isreleased from time to time.

• Employee Improvement Proposal
E-mailbox / Care Mailbox - Collecting
employees' suggestions to provide
responses.

• Email Notification Announcement ofcompany regulations anddelivery of messages
from senior executives to
employees.
• Bulletin Board - Providing
information on laborrelated policies, healthand safety, and event
updates.

2022 All-Hands Meeting
Highlight Story

We place significant emphasis on employee relations andhaveestablished a variety of effective and open channels ofcommunication with employees. It actively encourages employees toreport any illegal behavior or file complaints if their rights and interests
are compromised. To ensure smooth communication, the company
has implemented work rules and complaint procedures, and regularly
shares information on the company's intranet. This facilitates the efficienttransmission and response to colleagues' feedback. From 2020 to 2022,
no grievances were received from colleagues.

In 2022, TSC conducted an inaugural all-hands meeting, which saw a turnout of 612
employees. The purpose of the meeting was to present a comprehensive overview of theshared objectives to be accomplished over the next three years, as well as the long-term
projects outlined in the company's plan.
At the meeting, we delivered the company's goals and related projects, providing
employees with real-time insight into the company's dynamics. This also facilitated thecommunication of long-term plans and progress to employees, as well as discussions on
directions for further improvement. In 2023, TSC intends to initiate the annual Employee
Opinion Survey to gain a comprehensive understanding of colleagues' work experience,
thoughts, and concerns. In addition, since 2022, TSC has been conducting bi-monthly
cross-departmental supervisors meetings to facilitate interdepartmental communication.
Through the participation of all employees in an all-hands meeting, we have gained
a better understanding of the company's long-term project. This has fostered a sharedgoal and mission, strengthening our sense of identification and cohesion with Taiwan
Semiconductor.

• Employee Grievance Email box- Dedicated grievance mailbox
Tsgrumble@ts.com.tw• Service / Grievance Hotline- Dedicated grievance filingtelephone line (Human Resources
Department telephone for each site)• Labor-Management Meetings Quarterly communication with
employee representatives.

2022 Labor-Management Meeting
Communication Topics and Frequency
TSC holds quarterly labor-management meetings to discuss
employee benefits and attendance issues. In 2022, a total of four issues
were discussed, including the flexible reduction of employee stock trust
amounts, flexible working hours, changes to the minimum unit for paid
leave application, and annual maintenance. After the labor-management
meeting, it was unanimously agreed to schedule the annual maintenanceby using paid leave, make-up leave, or shift changes.

▲

Annual all-hands meeting held by TSC.

▲ The employees actively
participated in the all-hands
meeting and engaged with the
speaker.

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4.2 Healthy Work Environment

4.2.3 Workplace Safety Management

Establishing a Complete Occupational Safety Management System

We acknowledge the importance of establishing a safe and healthy workplace environment
for sustainable operations. To effectively improve the management of the workplaceenvironment, we have implemented various measures. These include the Safety and HealthWork Rules, Emergency Incident Handling Procedures, Emergency Response Procedures, aswell as operating procedures for air pollution, wastewater, waste, noise, radiation, greenhousegas, and other related operations. The objective of these measures is to minimize potential
harm to employees and the environment during emergency situations.

The safety management framework at the I-lan Site and the Li-Je Site adheres to the
ISO 45001 Occupational Health and Safety Management System. Both sites have achieved
a 100% coverage rate, which has been verified. The internal environmental safety personnel
are responsible for operating the system, following the "Plan-Do-Check-Action"framework.
In addition to implementing automatic inspection plans, the Occupational Health and Safety
Management Committee oversees and continuously improves the system on a quarterly
basis. Furthermore, all employees, outsourced personnel, contractors, and visitors to thefactory must comply with the company's relevant regulations and requirements to ensure
the effectiveness and consistency of the system and to achieve the company's occupational
health and safety policies and objectives.

We offer comprehensive occupational safety and health education and training programsfor both new and current employees. This includes on-the-job training in occupational safety
and health, fire evacuation drills, safety lectures, earthquake drills, respiratory protection
education and training, safety protection training, AED+CPR basic first aid training, healtheducation lectures, and emergency response measures. These diverse courses aim to establish
a secure working environment. Furthermore, the company arranges for professional medical
institutions to conduct annual individual health examinations for employees. Simultaneously,
health promotion handbooks are provided to enhance employee health awareness.

Risk Identiﬁcation and Management Objectives
Ensuring zero accidents is our highest priority. To address occupational safety andhealth concerns, we conduct risk assessments and implement management policies
tailored to each site's characteristics. The I-lan Site, which focuses on assembly and testing,regularly identifies both positive opportunities and negative impacts on occupational safety
and health on an annual basis. Whenever there are changes in the situation, we promptly
identify and implement control measures. To mitigate environmental safety risks and reduce
unnecessary wastewater treatment processes and personnel risks, the I-lan Site has been
carrying out a wastewater treatment simplification project since 2022. As part of this project,
we plan to convert the wastewater storage tank to an above-ground barrel tank. For moredetailed information on wastewater management, please refer to section 5.2.2.
The Li-Je Site specializes in wafer manufacturing and is committed to identifying andaddressing occupational safety and health risks through its Occupational Safety and HealthManagement System. In 2022, several safety and health impacts were identified in the
manufacturing process, including the use of organic solvents, acidic and alkaline chemicals,
as well as risks associated with pipeline transportation, forklift handling, and the installationof high-pressure gas tanks. To address these concerns, the Li-Je Site has implemented
safety operating standards, conducts regular hazard identification and risk assessments,
ensures compliance with regulations, and stays updated on regulatory changes. Any
identified unacceptable risks or non-compliance with regulations prompt the formulationof improvement measures or projects, which are then implemented and evaluated for
effectiveness to ensure risks are reduced to an acceptable level or meet standards.
Li-Je Site prioritizes safety and health management by implementing a range ofmeasures aimed at achieving zero occupational accidents and zero occupational diseases,
going beyond regulatory requirements. To oversee these efforts, Li-Je Site has established
the Occupational Safety Department, a dedicated first-level unit responsible for formulating,planning, supervising, and promoting safety and health management initiatives. The
effectiveness of the management system is ensured through annual internal cross-unit
audits, external audits, and verification processes.
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4.2 Healthy Work Environment

Risk Assessment and Management Procedures
We believe that the probability of risk occurrence can be reduced through preventive measures and effective management. To achieve this, we conduct regular hazard identification
and updates risk assessments. Corresponding operating procedures and methods are formulated for different aspects, and graded control is implemented for safety and health projects.
Additionally, measures are taken to improve unacceptable risks. We also establish procedures for contract management, procurement management, change management, and inspection
management to conduct non-routine hazard risk assessments and identification.

Contract Management

Change Management

To enhance contractor safety
management, ensure the quality of theirwork, and maintain safety and hygiene
during construction, TSC has
implemented the Contractor
Management Measures. These
measures encompass various actions,such as establishing agreements, issuing
hazard notifications prior to construction,
inspecting machinery and equipment,
verifying personnel qualifications for site
access, assigning dedicated supervisors,
conducting on-site safety inspections,and implementing control measures forhigh-risk operations like hot work, lifting,scaffolding, and confined spaces.
Application forms for these operations
are utilized and reviewed to upholdconstruction safety standards.

TSC has implemented change
management procedures to address
personnel, machinery and equipment,
raw materials, construction methods, andoperating environments. For instance,
modifications to the engineering design
or configuration of machines canpotentially pose safety and health risks.
To mitigate these risks, TSC conducts
thorough risk assessments, provides
necessary training, updates relevant
information, and performs safety
confirmations prior to implementing any
changes.

Risk Assessment andManagement Procedures

Procurement Management

Inspection Management

TSC conducts risk and quality
assessments during the procurement
stage for new chemicals, raw materials,
protective equipment, or construction
priojects. Safety confirmation is thenimplemented prior to adoption.

Regular inspections are conducted in the
TSC factory area. These inspections help
us identify abnormalities and potential
hazards by detecting operational safety
observations. This allows us to effectively
reduce and control risks.

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4.2 Healthy Work Environment

Occupational Injuries and Occupational Safety Incidents
Both sites conduct hazard identification and risk assessment according to the production procedure. They mitigate risk by implementing hazard controls and establishing management
projects. The management system encompasses all factory workers, including employees, outsourced personnel, contractors, and visitors. They adhere to the procedures and operating
methods outlined in the ISO 45001 Occupational Health and Safety Management System to create various procedural documents.
The Company has established and follows a procedure for handling injuries and illnesses. In the event of a safety and health incident that causes harm to personnel, prompt contingency
measures are taken in accordance with company regulations and legal requirements. These measures include providing medical assistance to affected personnel, internally reporting to thesafety and health department and senior supervisors, and externally reporting to the relevant authorities. A thorough investigation is initiated for each safety and health incident, and a review
is conducted on various aspects such as elimination and substitution, engineering improvements, education and training, personal protective equipment, administrative management, andsupervision and control. The aim of this review is to reduce the impact of accidents and prevent the recurrence of incidents. From 2020 to 2022, the I-lan Site had no occupational injuries anddid not incur significant financial losses due to major violations of employee health and safety. However, the Li-Je Site experienced a minor injury incident in August 2021, which did not qualify
as a major occupational accident in terms of safety and health. The financial loss resulting from administrative penalties amounted to NT$60,000.
Comprehensive Analysis of Occupational Hazards:• Chemical Exposure: Long-term exposure to organic solvents and acidic or alkaline chemicals can potentially harm employees' respiratory system, nervous system, and skin. TSC
thoroughly evaluates the risks, quantities used, and measures taken to control exposure for each chemical.
• High-Pressure Gases and Corrosive Gases: Leaking high-pressure gases can present a potential health risk to our employees. As a result, TSC conducts risk assessments to evaluate theuse and storage of gases. This includes the implementation of leak detection and emission control systems.
• Transportation and Handling of Dangerous Goods: Operations such as pipeline transportation and forklift handling pose significant hazards. TSC conducts evaluations of transportation
procedures and warehouse equipment to ensure compliance with safety standards.
• Emergency Incidents and Disasters: Emergency incidents, such as fires or chemical leaks, may occur in the factory. TSC analyzes the implementation and effectiveness of emergency
response plans, alarm systems, evacuation routes, and employee training.
• High and Low Temperatures: The manufacturing procedure may expose employees to extreme temperatures, which can result in burns, heatstroke, or cold damage. TSC evaluatestemperature control measures, protective equipment, and employee training.
• Psychological Stress: The intense competition and fast-paced nature of the work environment can potentially have a detrimental effect on the mental well-being of employees. To address
this concern, TSC has implemented work stress assessments and implemented measures to provide support for mental health.

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4.1 Talent Attraction and Retention▎ Occupational Injury Ratio
Site

I-lan Site

Li-Je Site

Total

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4.2 Healthy Work Environment

Work Accident Description:

Occupational Injury Type

2020

2021

2022

Work Accident

1

0

0

Traffic Accident

0

0

0

Injury Rate (IR)

0.67

0

0

Occupational Disease Rate (ODR)

0

0

0

Absenteeism Rate (AR)

0

0

0

Lost Days

4

00

Lost Days Rate (LDR)

2.68

0

0

Number of Deaths

0

0

0

Work Accident

0

1

0

Traffic Accident

0

0

6

Injury Rate (IR)

0

0.39

0

Occupational Disease Rate (ODR)

0

0

0

Absenteeism Rate (AR)

0

2%

0

Lost Days0

50

Lost Days Rate (LDR)

0

1.95

0

Number of Deaths

0

0

0

Work Accident

1

1

0

Traffic Accident

0

0

6

Lost Days

4

50

Number of Deaths

0

0

0

• In 2020, a work accident occurred at the I-lan Site due to prolonged rainfall and water leakage. This
resulted in a slippery floor, causing personnel to slip and experience strain in their backs and discomfort
in their pelvis. Despite the incident, the personnel promptly resumed their duties after a brief rest.
However, three days later, they sought medical treatment independently and reported the incident, which
was subsequently determined to be a work-related injury. As a result, the personnel were granted a week
off and received six rehabilitation sessions at a work injury outpatient clinic. To prevent similar incidents
from recurring, the following improvement measures were implemented: fixing leaks, utilizing plastic
mats, displaying slip prevention signs, issuing fall prevention announcements, and removing moss fromthe factory's internal roads.
• In August 2021, there was one case of occupational injury at the Li-Je Site. The injury occurred due tochemical splashing, as the personnel failed to wear the required protective clothing during chemical
pipeline motor replacement operations. As a result, they accidentally came into contact with chemicalliquid on their back, resulting in superficial skin burns. Upon discovering the incident, the company
promptly utilized its emergency decontamination agents, Diphoterine and Hexafluorine, to rinse theaffected area. The injured person was immediately sent for medical treatment. Fortunately, the employee
made a full recovery and returned to work within a week. Simultaneously, an investigation into the incident
was conducted, and both internal and external reports were filed regarding the occupational injury. To
prevent similar incidents from occurring in the future, several improvement and preventive measures
were implemented. These included pipeline inspection and repair, lighting enhancements, educationand training initiatives, installation of signage, and dedicated personnel supervision during operations.
Unfortunately, as a consequence of this minor injury incident, the company received a fine of NT$60,000.

Procedure for Handling Safety and Health Accidents
Personnel injury
and illness incident
reported to the
Occupational Safety
Department

Assistance in medical
treatment for the
injured and sent to
the hospitalOccupational safety unit
reports to the supervisory
authority

Case closed and kept
on record for futurereference

Department of Safety
and Security reviewsand evaluates theeffectiveness of the
improvements

Department where theincident occurred conducts
an investigation andproposes improvement
measures• The Occupational Safety and Health Committee meets quarterly to report and review work injuries
and accidents. We analyze the causes, processes, and improvement measures of these cases toemphasize the value of employees and supervisors.
In terms of the personnel safety evacuation procedure, TSC places great importance on occupational safety
education and training. It is advised that in the event of immediate danger while working, individuals shouldcease their operations, evacuate to a secure location, and then inform their immediate supervisor. TSC also
incorporates Article 18 of the Occupational Safety and Health Act, which pertains to evacuation, as instructional
material for training purposes. Employees possess the right to distance themselves from hazardous situations,and the company is prohibited from penalizing or imposing any form of disadvantage on personnel who evacuate
when faced with danger.

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Procedure for Investigating Occupational
Accidents

1

The Disaster Accident / Close Call Accident Investigation
Report Form is issued by the Occupational Safety Department.

2

A team is formed to investigate and gather evidence
regarding the accident. The team includes a supervisor, asafety officer, and a labor representative from the department
where the accident took place.

3

The supervisor conducts a comprehensive assessment of theincident and completes corrective measures for improvement
planning.

4

After the investigation team has conducted an initial review
and reached a consensus on the corrective actions for theincident, it is then submitted to the site supervisor for further
examination.

5

The implementation of corrective measures is tracked by the
Occupational Safety Department.

6

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Appendix

4.2 Healthy Work Environment

Occupational Safety Training
TSC is dedicated to preventing workplace accidents and enhancing employees' safety awareness andconduct. Alongside our comprehensive yearly occupational safety education plan, we offer extensive safety
and health education and training for new staff members. Furthermore, we have implemented a certification
management system to guarantee the credibility of safety and health certifications held by our colleagues.
We conduct regular reviews and facilitate the acquisition and renewal of certifications in accordance withregulations.
TSC conducts annual emergency response drills for its employees during regular working hours. Thesedrills consist of two fire self-defense and evacuation drills, as well as at least one hour of occupational safety
training for the entire company. It is mandatory for all employees to participate in this training, and those unable
to attend will be offered make-up sessions to ensure the effective implementation and communication of safetyconcepts. Additionally, we organize various small-scale drills, such as chemical leaks, supply interruptions, labor
shortages, critical equipment failures, water, power, and gas outages, outbreaks of infectious diseases, strikes,
sewage leaks, transportation accidents, major quality incidents, work injuries, communication disruptions,typhoons, earthquakes, and information system network attacks. These drills may be replaced by educational
training or tabletop exercises each year. If any actual incidents occur during the year, we will review its
implementation records and assess the need for routine drills. Furthermore, we provide training and lectures onhigh-risk operations, such as lifting and confined spaces. Health seminars conducted by professional physicians
and fire safety lectures by professional disaster relief instructors are also offered to continuously enhance
personnel safety and health awareness.

Occupational Disease Management
Two sites comply with legal requirements by conducting identification of special hazardous operations.
They also collaborate with operation environment monitoring, special hazardous operation health checks, andhealth management conducted by factory physicians and nurses. In addition, they establish various procedural
documents and operating procedures in accordance with the ISO 45001 occupational safety management
system. It is worth noting that there were no recorded cases of occupational diseases in 2022.
Types of Occupational Diseases in TSC:
1. If the chemicals used in the manufacturing process are not adequately controlled or protected against, and thisleads to workers falling ill or suffering organ damage, and a physician confirms that the injury or illness is workrelated, it is classified as an occupational disease.
2. Psychological stress, poor posture, improper exertion, lack of pregnancy protection, and diseases resulting fromworkplace violence are all potential causes of occupational diseases.

Occupational Safety Department reviews and confirms theclosure of the case.

Explanation of specific occupational health examination items for hazardous operations at the I-lan Site:• Bromopropane: The operation of automated machinery is accompanied by the use of local exhaustfacilities. It is ensured that each employee spends no more than 30 minutes per day in the designatedoperation area.
• Radiation: There are two X-ray machines on the premises. Employees must wear radiation armbands when
operating the machines. The machines are enclosed for safety during operation, and the radiation levels inthe vicinity of the machines are equivalent to the background levels.

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4.1 Talent Attraction and Retention

Occupational Disease Prevention Measures
Both sites convene Occupational Safety and Health Committees quarterly to assess
health management, occupational disease prevention, and health promotion matters.
They also establish targeted operating procedures to address potential causes of physicaland mental illnesses in the workplace. Additionally, they coordinate with healthcare
professionals to provide active healthcare services for employees. By regularly monitoring
the work environment, they ensure effective control of occupational disease factors. Healthexaminations and questionnaires are administered to assess employees' individual healthconditions. Likewise, healthcare professionals arrange health interviews and on-site visits togain a comprehensive understanding of employees' well-being.
Over the past three years, there have been no reported cases of occupational diseases
among employees at the I-Lan and Li-Je Sites. In 2022, a total of 28 and 26 special healthexaminations were conducted at the I-Lan and Li-Je Sites, respectively, with a perfectattendance rate of 100%. Our commitment to preserving the physical and mental well-beingof our employees remains unwavering.

Occupational Health Services
The company remains committed to achieving zero occupational accidents byimplementing various health management measures and actively supporting employees
through healthcare personnel. This includes promoting a friendly and healthy work
environment. In terms of occupational health services, a total of 106 consultations orinterviews were conducted at the I-Lan Site and 51 at the Li-Je Site in 2022.
1. Annual Physical Examinations and Special Health Hazard Check-ups
2. Comprehensive operation environment monitoring and chemical classification
management are conducted every six months throughout the entire site.

Responsible
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Appendix

4.2 Healthy Work Environment

Effective communication channels for occupationalsafety and health.
In addition to the labor-management meeting, each site convenes quarterly meetingsof the Occupational Safety and Health Committee. These meetings are chaired by the Vice
President and the Site Supervisor, respectively. The discussions cover a range of topics,
including policies, management plans, education and training, environmental monitoring,
health management, proposal improvement, inspection and audit, hazard prevention,
occupational accident investigation, management performance, and contract management.
Following the meetings, systematic and continuous improvement and optimization are
implemented based on the meeting's conclusions. The topics for 2022 focused on pandemic
prevention measures, key points of spring safety inspections, and audit deficiencies.
To enhance bilateral communication and solicit input from colleagues regarding
safety and health matters, 50% of the 22 committee members are labor representatives,elected by the labor-management conference, surpassing the regulatory requirement.
Supervisors, labor representatives, safety and health personnel, and committee members
from all departments of the entire site actively participate, collectively assessing diverse
safety and health management concerns. This enables members to stay informed about
the advancements in safety and health initiatives and put forth suggestions and proposals,
allowing managers to genuinely listen to employees' perspectives and consistently provide asafe working environment.
To facilitate effective communication among employees, we offer various channels
for feedback, including employee suggestion forms, communication records, complaint
channels, health questionnaires, and employee suggestion boxes. We promptly makeadjustments and optimizations based on stakeholder feedback. For further information,please consult section 4.2.2 on labor-management communication channels.

3. Annually, health questionnaires are distributed to proactively assess the physical andmental well-being of our employees.
4. Promote the implementation of measures to prevent overwork, excessive stress, humanfactor hazards, and workplace misconduct.
5. Protection for maternal health, employees with disabilities, and middle-aged and elderly
health.
6. Contracted occupational health service physicians conduct quarterly visits, interviews,
follow-ups, and care. If employees with hypertension are scheduled for medical treatment,
their medication status will be monitored until blood pressure control improves, thereby
reducing the risk of stress-related diseases.
7. Establishing Employee Personal Health Records and Regularly Tracking Status
8. Regularly conduct lectures on health-related topics.
9. Conduct health promotion activities on a regular basis.
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