Major Topics Management

Economic

Major Topics Policy and Commitment Sustainable Goals 2019 Results Future Direction and Plan Resources Assessment Mechanism
Corporate Governance VIS has established corporate governance system in accordance with laws and regulations, as well as the following principles:
  • Establish corporate governance system according to laws and regulations
  • Protect shareholders' rights and interest
  • Strengthen functionality of board
  • Fulfill the functions of the Audit Committee
  • Respect stakeholders' rights and interests
  • Improve information transparency
  • Establish effective corporate governance framework and strengthen the structure and operation of board of directors
  • Protect shareholders' rights and interests and treat all shareholders equally
  • Fulfill CSR and respect the rights and interests of stakeholders
  • Enhance disclosure of various financial and nonfinancial information of the Company and improve information transparency
  • Top 5% in corporate governance evaluation in 2019
  • Established the position of Chief Corporate Governance Officer
  • Commissioned external agency for board performance assessment in accordance with Board of Directors Performance Assessment Policy
  • CSR Committee regularly reported to board on communication with stakeholders
  • Disclose resolutions of Compensation Committee
  • Establish Risk Management Committee to strengthen the Company's control and management of risks
  • IP Management regularly reports to board of directors
  • Financial report announced on the day of approval by board of directors or within one day after submission
To better implement corporate governance and strengthen management of the Board of Directors, two committees– Audit Committee and Compensation Committee – have been established under the Board of Directors to assist the Board perform its duty of oversight (as well as the position of Chief Corporate Governance Officer to help the Board to perform its duties). Also, VIS has established CSR Committee to be in responsible for promotion of CSR The Company has formulated "Corporate Governance Practice Principles," "Audit Committee Charter," "Organizational Regulations of the Compensation Committee," "Board of Directors Performance Assessment Policy," "VIS Corporate Social Responsibility Principle," "Code of Ethics for Directors," "VIS Ethical Corporate Management Best Practice Principles," "guidelines for reporting and punishment of non-ethical behaviors," and "Procedures for Handling Material Inside Information" and conducted related operations accordingly
Economic Performance Focus on global market for globalized operations; focus on long-term strategy in pursuit of sustainability
  • ROE reaches 20%
  • Continue to give back to shareholders through steady or growing net income
  • Top 10 foundry service provider in the world
  • ROE reached 19.9%
  • EPS reached NT$3.54
  • Ninth largest foundry service provider in the world
Sustain steady growth; cash dividends distributed to shareholders since 2005 Invest capital expenditure and R&D funds according to the Company's strategy. Acquired Singapore Fab in 2019 to demonstrate the determination to continue expanding capacity Disclosure of financial information according to international financial report standards recognized by FSA
Risk Management Through threat identification, assess potential impact on operation and establish effective and flexible response capability, so that operation can be sustained, protecting shareholders, reputation, brand, and stakeholders Establish Corporate Risk Management Committee, formulate risk management procedures and rules. Identify corporate operational risks through risk identification and risk assessment, and adopt risk monitoring, reporting, and responsive measures (including avoidance, mitigation, distributions, and tolerance). Reduce the impact of risks
  • Natural Disasters:
    • Earthquake: earthquake BCP drills to test recovery strategy and communication flow through drill scenario, ensuring effectiveness of BCP strategy
    • Flood Prevention: completed 4 flood/typhoon prevention response training to effectively reduce likelihood of disaster
  • Fab Risks: introduced thickness gauge, endoscope, vibrometer, and drone, to ensure effectiveness of pipeline inspection and pipeline safety
  • Natural disasters: targeting impacts of climate change and extreme weather, such as torrential rain and water shortage, carry out risk assessment and improvement of soft and hard facilities, reducing potential losses
  • Operational risks: targeting pipelines, information security, disease prevention, and fire safety, continue to review and make improvement; based on results of inspections, implement management and improvement measures to achieve goals of sustainable operation
Completed business continuity plan in 2007. Through risk assessment, determine improvement strategy and carry out regular drills. Adopt preventive measures and establish crisis communication mechanism, backup human resources plan. Execute annual company-level BCP drill to ensure business continuity. Carry out annual risk control and management assessment through the following mechanism: mid-year (direct subordinate units of each organization) implementation of inspection and report of current status, annual risk control and management audits by each divisions, and confirm, review of control and management mechanism and items, and effectiveness at annual risk audit meeting
Technological Innovation With the spirit of More than Moore, and value-oriented core value, the Company strives to develop specialty IC manufacturing technology
  • Offer customers more competitive technology and services, and continue to develop more specialty IC from core technology, and enhance value-added of services
  • Utilize core technology to improve energy consumption of products, produce more environmental-friendly products, and support customers to realize manufacturing of green products
VIS has developed technical platform for power management IC that saves more energy, and achieved 60% share of high eco-friendly components in products in 2019
  • Strive to develop high efficiency, energy-saving and carbon-reducing products, and continue to develop high-voltage and power management technical platforms that answer market demands
  • Continue to develop new process technology, and processes of products with new specifications, such as merchandising new materials, such as GaN and second-generation power management components, to offer customers options better than traditional silicon substrate
Company allocates 6% of revenue as R&D fund for technical development
  • Share of eco-friendly components in products
  • Share of wide-bandgap semiconductor products
Quality Management VIS is committed to becoming global customers' preferred choice for semiconductor manufacturing by providing services of the highest quality. Our employees are dedicated to achieving their daily objective of exceeding customer expectations by focusing on delivering exceptional services with continuous quality improvement
  • Continue to implement "CIT" activities, to enhance product quality and production efficiency, reduce costs, and improve customer satisfaction
  • Utilize advanced statistical methods and quality tools to establish real-time defense system and prevent abnormal events. Timely detect abnormal events to avoid impact of quality issues on customers
In 2019, a total of 2,948 suggestions and 417 cases by CIT were proposed and implemented, generating a benefit as much as NT$1,037 million
  • Launch "CIT" activities, and organize companywide improvement case presentations, "VIS Annual CIT Conference," encouraging quality improvement through prize money and open recognition
  • Continue to improve statistical methods, strengthen real-time defense system to avoid impact of quality issues on customers
Introduce ISO 9001 and IATF 16949 Quality Management System and IECQ QC 080000 Hazardous substance Process Management System to ensure quality management and hazardous substance process management. Continue to meet requirements of ISO 9001/IATF 16949 and IECQ QC 080000
  • Pass third-party audit and certification to ensure quality management system and hazardous substance flow management systems and continue to meet requirement of ISO 9001/IATF 16049 and IECQ QC080000
  • Continue to formulate and achieve annual goals of continued improvement
Legal Compliance for Products Strive for reduction, elimination and ban of hazardous substances, establish related management system of green design, green procurement, green production, and green services. Strive for the goal of providing products with no hazardous substances. 100% compliance with related laws and customers' regulations on hazardous substances-free products
  • 100% compliance with related laws and customers' regulations on hazardous substances-free products
  • Comply with SVHC List of EU REACH, EU RoHS, and SONY SS-00259 requirements based on results of wafer inspection
  • 100% compliance with related laws and customers' regulations on hazardous substances-free products
  • 100% PFOA free and replaced with alternatives
Targeting PFOA and related substances: VIS has started a survey of raw materials and worked with our suppliers to develop alternative plans. It is expected that we will be completely free of these types of substances in 2020. Assess whether products are in compliance with related laws and customer regulations according to QC 080000 Hazardous Substance Process Management System