TAIEX: 3711 NYSE: ASX

II

20 ASE TECHNOLOGY HOLDING 19 CORPORATE SUSTAINABILITY REPORT Energy Resources Recycling

As a global service provider of semiconductor Increasing the use of highly efficient, lower emissions and environmentally-friendly clean energy has long been a key element of ASEH’s sustainability strategy. We assembly and testing, ASE Technology Holding continue to focus on reducing energy consumption, lowering carbon emissions, Co., Ltd. and its subsidiaries (collectively expanding our green supply chain and adopting the use of renewable energy. "ASEH") is fully committed to building its core To augment our sustainability efforts, we have also begun developing smart energy technologies and investing in renewable energy projects. ASEH’s total business and, strengthening research and renewable energy usage has increased by 29% compared to the previous year development to maintain its leadership. The and now accounts for 14% of the company’s total energy usage. Seven of ASEH’s company continues to advance its corporate worldwide facilities have achieved 100% renewable power, contributing to a reduction of our greenhouse gas emissions by 2.2% compared to the previous sustainability through a sustainability year. As of this year, ASEH has a total of 12 green factory certified facilities and development framework that comprises of 26 certified green buildings. Our total volume of recycled water increased by 9% four strategic pillars - Low Carbon, Circular, to 28.15 million tons (the equivalent of 11,000 Olympic-size swimming pools or the annual water consumption of 280,000 people). Inclusive and Collaborative directions. The framework forms the basis for formulating innovative business models and best practices in key areas such as Smart Factories, Pandemic ASEH has deployed the NIST CSF maturity assessment at its 25 facilities Preparedness, Energy Resources Recycling worldwide, which is guided by a core operating principle embodied in the risk and Information Security Management. ASEH management framework. The five functions of the NIST framework - Identify, is rapidly evolving to respond proactively to Protect, Detect, Respond and Recover, assess the organization’s information security maturity and facilitate the comprehensive planning for internet security, industry trends and stay abreast of social and the adoption and implementation of improvement plans. The company changes. It is the company’s responsibility to has also consolidated its focus on key areas such as information security legal sow the seeds of a sustainability value and compliance, supply chain security management and requirements, internal audits for information protection and control, and trends in external cyber attacks, culture that will contribute to positive social to enable further strategy development and practice effective governance in and environmental impacts. information security.

Information Security Management Smart Factories

Heterogeneous Integration (HI) has given rise to new business opportunities for the future. HI technology will also support ASEH’s advancement in sustainability and expansion in markets for new applications that will positively impact human life and improve their wellbeing. ASE’s development in Industry 4.0 began in 2015 with investments in software and hardware for implementing lights-out factories. At the same time, the company began deploying AI-powered predictive analytics applications, Big Data integration and analytics applications, and advanced automation technologies to set the company’s smart manufacturing and digital transformation in motion. There are currently eleven smart factories established and will increase to eighteen by the end of 2020.

ASEH’s smart factory blueprint is focused on three major areas - automation, heterogeneous integration in machine and production systems, and heterogeneous integration in systems-in-package (SiP) miniaturization. ASEH is one step closer to achieving Industry 4.0 through the adoption of Big Data-driven design, supply chain collaborative design and integrated real time data for decision-making, providing a synergistic connection between customers, supply chain partners and ASEH. The advent of smart factories has also enabled highly intelligent designs and analytics, as well as the integration of mixed reality environments that will continue to drive industry growth and semiconductor innovation.

ASEH has implemented the most stringent measures for pandemic preparedness in its facilities around the world. Effective communication and preemptive actions are the key components of the pandemic crisis management plan that prescribe appropriate responses to mitigate impacts. We comply strictly with local health and safety regulations and diligently follow standard pandemic response operating procedures. We have also established a company-wide global pandemic task force to carry out scenario simulation, execute emergency response plans to prevent transmission, and to coordinate support for employees whose livelihoods were affected by the pandemic. These measures help us protect our employees, suppliers, customers. ASEH is investing approximately NT$10 million into the production of high-quality surgical masks by setting up a production line at ASE Kaohsiung. A class 100K clean room that is capable of producing 6,000 surgical masks per hour has been established, and allow us to maintain a high level of control over the COVID-19 crisis.

Pandemic Preparedness 31 33 35 37 39 45 49 50 53 54 59 62 Economic Performance and Tax Governance Economic Performance INTEGRITY AND ACCOUNTABILITY INTEGRITY AND 3.1 Board of Directors 3.2  3.3 Business Ethics 3.4 Risk Management 3.5 Human Rights Management 3.6 Regulatory Compliance 3.7 Information Security Management INNOVATION SERVICE 4.1 R&D and Innovation 4.2 Sustainable Manufacturing 4.3 Products and Services 3 4 13 13 18 22 27 03 07 09 09 11 12 UN Sustainable Development Goals and UN Sustainable Development Goals and Sustainable Value Assessment Materiality Assessment and Stakeholder Communication ABOUT OUR REPORTING ABOUT OUR REPORTING THE CHAIRMAN LETTER FROM OPERATING MODEL 1.1 Company Profile 1.2 Mission and Vision 1.3 Financial Performance SUSTAINABLE GOVERNANCE 2.1 Organization and Structure 2.2 Sustainability Strategies 2.3  2.4  TABLE OF CONTENTS TABLE 1 2

Collaborative Inclusive Circular Low Carbon Future Sustainable Sustainable Win-Win Win-Win to a Committed Committed

V VI 5 7 AP

GREEN MANUFACTURING AND 63 RESPONSIBLE PROCUREMENT 103 APPENDIX 127 LOW-CARBON TRANSFORMATION 7.1 Supply Chain Overview 105 Sustainability Data - Environmental Data 127 5.1 Climate Leadership 65 7.2 Supply Chain Management Framework 106 Sustainability Data - Social Data 131 5.2 Water Resource 76 7.3 Supply Chain Sustainability 108 Critical Supplier List 136 5.3 Waste 79 Management Third Party Assurance Statement 137 5.4 Green Facility 81 7.4 Conflict Minerals Compliance 113 GRI Content Index 138 5.5 Environmental Expenditures and 84 Contact Information 144 Investments 6 8

INCLUSIVE WORKPLACE 87 CORPORATE CITIZENSHIP 115

6.1 Global Recruitment and Diversity 89 8.1 Social Involvement Overview 119 6.2 Talent Attraction and Retention 91 8.2 Environmental Conservation 120 6.3 Talent Cultivation and Development 93 8.3 Industry-Academia Collaborations 121 6.4 Occupational Health and Safety 97 8.4 Community Engagement 123 8.5 Public Advocacy 124 Key Highlights In this report, we discuss our sustainability activities in 2019.

Strategies for the Implementation of the UN Sustainable Development Goals (SDGs) Comprehensive examination and analysis of the main SDGs (climate action, responsible consumption and 01 production, decent work and economic growth, affordable and clean energy, clean water and sanitation,

2019 ASEH CORPORATE SUSTAINABILITY REPORT and quality education) of ASEH and the benchmarked industries in its value chain; active response to SDGs and establishment of 2025 sustainability performance targets in five major categories for the company’s core operations so that our strategic goals for contributing to SDGs may undergo regular assessment and management.

Task Force on Climate-Related Financial Disclosures (TCFD) nd In keeping with the TCFD framework, ASEH takes a top-down approach to assess climate risks and opportunities by s a e rd c overseeing operational strategies and financial planning at the corporate-governance level. We survey critical stakeholders a g n to solicit internal and external views on risks and opportunities, which help us to formulate management goals and adopt i t i oversight measures for high-impact risk factors. Risk factors are categorized by geographical location and used to assess the

potential short, medium, and long-term financial impacts of different substantive and transformative scenarios. n s

Renewable Electricity Investment Green Building Certifications The most meaningful approach in GHG management is to migrate As of December 2019, we have achieved 17 Taiwan EEWH to non-carbon based sources of energy. In 2019, the renewable certifications as well as 8 U.S.A. LEED certifications; including power usage of ASEH was 512,067 MWh, reaching 14.27% of our 1 "Diamond-rated" low-carbon certification in 2019. And we total power consumption, specifically two ASE, one SPIL and four are transitioning green facilities into low-carbon building. USI facilities are operating fully on renewable power.

Management of Conflict Minerals

Based on our Reasonable Country of Origin Inquiry (RCOI) analysis and due diligence measures in 2019, we believe that the identified smelters or refiners (SoRs) used for all of our products (from packaging, materials, and electronic manufacturing services) are DRC Conflict-Free.

Social Welfare

In 2019, ASEH launched its ‘Share the Love' social welfare program by inviting a total of 180 senior dependents of ASEH employees and senior citizens from neighborhoods near the ASE Chungli Facility and the USI Taiwan Facility to participate in a holistic health care program covering physical, mental, and spiritual health. The ‘Blessed and Joyful Learning’ program is dedicated to helping senior citizens in Taiwan stay healthy and active, and facilitating Taiwan’s successful transformation into an aged society. Industry Leader

Named Industry Leader in the 2016-2019 Dow Jones Sustainability Indices, and listed as a constituent of the Dow Jones Sustainability World Index and Emerging Markets Index

02

Top 1% SAM Gold Class 2019 ASEH CORPORATE SUSTAINABILITY REPORT

Listed on the RobecoSAM Sustainability Yearbook 2017- 2020, and awarded the "Gold Class" for four consecutive years (within 1% of top performing company's score under the Semiconductors and Semiconductor Equipment Industry Group) s and e rd c a g n i t 3 Times on the CDP A List i Named on the 2019 CDP A List for Climate Change and n

s Leader Board for Supply Chain Engagement. ASEH is the only Taiwanese company to have made the CDP’s climate change A List three times

4 Awards

Received 2019 Taiwan Corporate Sustainability Awards (TCSA): Top 50 Corporate Sustainability Award, Corporate Sustainability Report Award (Platinum), Supply Chain Management Award and Social Inclusion Award

5 Years In A Row

Included in the FTSE4GOOD Emerging Markets Index for five years in a row (2015-2019)

2 Consecutive Years

Listed on the 2018 & 2019 FTSE4Good TIP Taiwan ESG Index (The index has been developed in partnership with Taiwan Stock Exchange's ("TWSE") wholly-owned subsidiary, Taiwan Index Plus Corp. ("TIP")) ABOUT OUR REPORTING Report Boundary

This is our 2nd CSR Report for ASEH, which is prepared The report discloses the economic, environmental in accordance with the GRI Standards: Core option. Our and social performance of the ASE (Advanced Corporate CSR Division is in charge of data gathering, Semiconductor Engineering, Inc. and its compiling and editing. This report is available in both 03 subsidiaries), SPIL (Siliconware Precision Industries ASE Kaohsiung Chinese and English. The complete electronic version Co., Ltd. and its subsidiaries), and USI (USI Inc. and ABOUT OUR REPORTING can be downloaded from our website, its subsidiaries) encompassing our semiconductor ASE Chungli http://www.aseglobal.com/en/csr_report assembly (packaging), testing and materials (ATM) facilities and electronic manufacturing service (EMS) facilities, but excluding wholly owned intermediate holding companies, internal trading companies, companies in their first post-merger year and companies with less than a year operation. Any boundary adjustment of the data will be separately explained in the text of the report.

Financial figures in this report are prepared in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board, audited by Deloitte ASE Japan & Touche, and expressed in US dollars unless otherwise specified. ASE Korea

ASE Singapore

ASE Malaysia

If you have any comment or suggestion, please contact us at:

Corporate CSR Division, ASE Technology Holding Address: No.26, Chin 3rd Rd., N.E.P.Z., Nantze, Kaohsiung, Taiwan Tel: +886-7-361-7131 Email: [email protected] SPIL Da Fong ASE Kunshan SPIL Chung Shan 04 ASE Suzhou SPIL Zhong Ke SPIL Suzhou ABOUT OUR REPORTING ASE Weihai SPIL Hsinchu ASE Shanghai (A&T) SPIL Changhua ASE Shanghai (Material)

ASE Wuxi

ASE Cultural & USI Zhangjiang Educational Foundation USI Kunshan

ASE Charitable USI Taiwan USI Jinqiao Foundation USI Shenzhen ISE Labs USI Mexico External Assurance an ASEH engaged Deloitte & Touche to perform with ISAE independent limited assurance in accordance assurance 3000 Revised for this report. The independent report. statement can be found at the end of this in All ASEH sites have acquired certifications and environmental, social, information security with other relevant fields. The company’s conformity regulatory international standards ensures complete compliance in our management and control measures, and operating procedures. For more information please refer to the chart on next page: Internal Review and Approval Review and Approval Internal data in this report were information and The disclosed managers of the data/ by the relevant initially verified draft was compiled providers. The initial information Division. After being reviewed by by the Corporate CSR and Finance Departments, the final the Corporate Legal and authorized for issue by the report was approved Sustainability Committee. Chairman of Corporate in ASEH Other CSR Reports have also published three Within the ASEH, we separate CSR reports providing more detailed sustainability information of our ASE Kaohsiung The Facilities (ASEKH) in Taiwan, SPIL and USI. from complete electronic version can be downloaded https://www.aseglobal.com/en/csr_report USI · CSR Report SPIL · CSR Report

ASE Kaohsiung · CSR Report

ABOUT OUR REPORTING 05 ISO/IEC 27001: QC 080000 OHS ISO 14001 ISO 50001 ISO 14045 2013 Hazardous Occupational Environmental Energy ISO 14067 Eco-efficiency ISO 14046 ISO 14064-1 Information Facility / Certification Substance Process Health and Safety Management Management Carbon Footprint Assessment of Water Footprint Greenhouse Gases Security Management Management Systems Systems Product Systems 1 Management System Systems Systems

ASE Kaohsiung ● ● ● ● ● ● ● ● ● 06 ● ● ● ● ● ASE Chungli ABOUT OUR REPORTING

ASE Suzhou ● ● ● ●

ASE Weihai ● ● ● ●

ASE Wuxi ● ● ● ●

ASE Shanghai (A&T) ● ● ● ●

ASE Shanghai (Material) ● ● ● ●

ASE Kunshan ● ● ● ●

ASE Japan ● ● ●

ASE Korea ● ● ● ●

ASE Singapore ● ● ● ●

ASE Malaysia ● ● ●

ISE Labs ●

SPIL Da Fong ● ● ● ● ●

SPIL Chung Shan ● ● ● ● ●

SPIL Zhong Ke ● ● ● ● ●

SPIL Hsinchu ● ● ● ● ●

SPIL Changhua ● ● ● ● ●

SPIL Suzhou ● ● ● ● ●

USI Taiwan ● ● ● ● ● ● ●

USI Zhangjiang ● ● ● ● ● ● ●

USI Kunshan ● ● ● ● ● ●

USI Jinqiao ● ● ● ● ● ●

USI Shenzhen ● ● ● ● ● ●

USI Mexico ● ● ● ● ● ●

1 OHS Certification includes ISO 45001 or OHSAS 18001 s ’ s Law. While core CPU and memory s Law. While core CPU ’ IC scaling advancement continues, pan-Moore IC scaling advancement solutions to extend into non- Laws are enabling chip as healthcare services and traditional domains such Pan-Moore's Laws will drive transportation logistics. in heterogeneous integration expansion and innovation of transistors, actuators, with more complex combination We MEMS, sensors and other peripheral components. the necessary believe that heterogeneous integration is and technology for next generation applications industry. will spur the growth of the semiconductor for ASEH Smart manufacturing is a strategic approach digital to advance heterogeneous integration and big data, transformation. We apply artificial intelligence, operations, and cloud computing in our manufacturing time-to-market, allowing us to help customers speed up closely with provide quality products and coordinate customers on product design. hasInnovation is key to growth and smart manufacturing production, enabled ASEH to achieve near-zero defect shorten production cycles and enhance production gain a efficiency, thereby helping our customers also increased competitive edge in the market. We have on-the- the value of our human capital by providing to transition job training for manufacturing employees Through to remote positions in facility control rooms. digitization, we were able to increase the number of equipment operated remotely from twenty-four to ninety. Employees benefit from such productivity with improved wages as well as a safer working environment. upholding Moore ASEH has been named Industry Group Leader in the Dow Jones Leader in the Industry Group been named ASEH has is the first years and four consecutive Indices for Sustainability listed three industry to be semiconductor in the global company Change A-List. the CDP Climate times on We are living in a rapidly changing era that is paved We are living in a rapidly jolted by turmoil. Climate change, with challenges and trade conflict, geopolitical tensions escalating US-China pandemic are impacting our lives and the coronavirus is a defining moment for business like never before. This need for transformation could enterprises, and the pressing time than now. not have come at a more a better world and this belief has Technology can make sustainability driven us to commit ourselves to corporate service and through innovation, sustainable customer global co-development. A corporate culture that encourages innovation and Low cost, multi-functionality, high performance consumer highly integrated features continue to drive is electronic trends. The semiconductor industry value system reinforcing this trend by pursuing higher of innovating integration - highlighting the importance for advanced IC and systems packaging technology course of heterogeneous integration (HI). Over the on flip the year, our team has remained focused level chip packaging, wire-bond packaging, wafer modules. packaging and, advanced packaging and products We have successfully developed several new market and technologies that enable ASEH to maintain intelligence leadership for applications in 5G, artificial (AI), the Internet of Things (IoT), autonomous driving and smart manufacturing. IC packaging technology has played a significant role

Jason C.S. Chang Chairman and CEO LETTER THE FROM CHAIRMAN

LETTER FROM THE CHAIRMAN 07 Sustainable customer service Disclosures (TCFD) framework to identify short, medium in corporate sustainability. In 2019, we became the and long-term climate risks and opportunities, assess first semiconductor OSAT company to be named With the restriction on the ASE-SPIL merger lifted by their operational and financial impact and severity, ‘Semiconductors and Semiconductor Equipment Industry the Ministry of Commerce of the People’s Republic of and propose concrete countermeasures and financial Leader’ in the Dow Jones Sustainability Indices for the China, ASEH has proceeded with the integration of both planning against potential material impacts. fourth consecutive year and the only Taiwanese company companies by prioritizing focus on advanced packaging to be listed three times on the CDP Climate A list. ASEH R&D and, equipment and material procurement. The 08 Global co-development is a beacon in the semiconductor industry promoting integration will lead to synergy in R&D investments, LETTER FROM THE CHAIRMAN growth and innovation, and with our 2025 goals, we will capacity building, gross margins and operating expenses, Our supply chain partners are vital to the expansion of blaze the trail in sustainability development. allowing us to better serve customers and maximize ASEH’s value chain. We are forging strong partnerships shareholder value. At the end of 2019, our subsidiary with suppliers and actively investing in sustainable supply USI signed a share purchase agreement with the chain management to tackle global economic, climate shareholders of Asteelflash, the second largest EMS and market challenges, and deliver quality products company in Europe. The deal allows both Asteelflash and services. To mark our appreciation and encourage and USI to complement each other in manufacturing performance, we presented fifteen Outstanding Supplier locations, market and customer reach, business models Awards, three Sustainability Excellence Awards, and six and technological capabilities, and is aimed at expanding Sustainability Partnership Awards to our suppliers for the group’s footprint and long term business growth. their exceptional contribution in 2019.

Green transformation is a major strategy at ASEH Universities have always been ASEH’s major innovation to combat climate change. By providing sustainable partners. We have collaborated with many top universities manufacturing services, we enable customers’ success on automation technology R&D to shape the company’s and bring convenience to life. In 2019, green energy smart transformation and accelerate the execution of the accounted for roughly 14.27% of our total energy use, smart factory blueprint. Industry-academia collaborations an increase of 1.56% compared with 2018 (12.71%). also provide opportunities for students to obtain practical We executed 330 energy saving and carbon reduction experience and industry knowledge, and help retain these programs, reducing total energy use by 16.7%, and talents in Taiwan. On environmental technology, we are achieving a carbon reduction of 437.7 ktCO2e. We combining the strengths of the industry, academia and also leveraged on a financial instrument to support our local communities to develop suitable technologies that sustainability efforts by issuing a US$300 million green aid in ASEH’s green transformation. ASEH aims to share bond, with the proceeds used for renewable energy, these new technologies with the industry and build a Richard H.P. Chang Vice Chairman and President low-carbon buildings, circular economy and water platform for technology exchange and adoption, to help management projects. reduce the environmental impact from manufacturing processes. ASEH has adopted carbon management strategies, policies and systems focused on energy saving, green The prolonged Covid-19 pandemic has cast a cloud of energy and energy storage to boost low carbon uncertainty all over the world, and severely impacted development. In addition to the existing enterprise risk the global economy. As an OSAT industry leader, management system, we adopted the Financial Stability ASEH is stepping up to navigate the industry through Board’s (FSB) Task Force on Climate-related Financial this extraordinary period, and continue to lead efforts Module, Board Assembly & Test Final Test (Assembly) IC Packaging & Probe Material (Substrates) Wafer Bump Wafer Fab Front-end Test Engineering OPERATING MODEL OPERATING Profile 1.1 Company established in April Co., Ltd. (TAIEX: 3711; NYSE: ASX), ASE Technology Holding mission is to create a include ASE, SPIL and USI. ASEH's 2018 and its subsidiaries to enhance combines the strengths of member companies business model that develop an increase the level of competitiveness, research and development, Our structure and expand our global market footprint. integrated supply chain and highly and develop miniaturized, high performance enables us to innovate the speed to market for their next- integrated services for customers to increase integrating the group's resources, we can generation products and solutions. By with industry partners to strengthen continue to explore strategic opportunities and to create a sustainable future for the technology innovation and reduce risks, industry. For details, please visit www.aseglobal.com Service Scope manufacturing services in assembly ASEH is the leading provider of semiconductor turnkey solutions covering front-end and test. The company offers complete test, IC packaging, materials and electronicengineering test, wafer probing and final edge technologies to serve the manufacturing services and develops leading technology market. semiconductor, electronics and digital IC Design

9 OPERATING MODEL 10 Global Operation OPERATING MODEL ASEH has a worldwide headcount of over 89,000 employees (as of December 2019). Our sales and manufacturing facilities are strategically located globally in Taiwan, China/Hong Kong, South Korea, Japan, Singapore, Malaysia, Mexico, U.S.A., Poland and key European cities (with future plans to expand in Brasil).

IC Services System Services Service Centers Sales and Representative Offices up industry influence Expand through scale Innovate through technology value differentiation boundary Integrate organizational resources across ASEH Value Creation Model and to In alignment with our mission and vision, we maintain industry innovation and leadership, with incorporated future industry trends together and the feedback from our senior management operating units on the indicators about corporate Creation sustainability to establish the ASEH Value Model. Our value creation model consists of three strategies － Integrate, Expand, Innovate. The model enables ASEH to respond to future the basischallenges and more importantly, it forms of ASEH's foundation in integrating sustainability into our business strategy.

1.2 Mission and Vision 1.2 Mission as and systems. We act substrates, packaging/testing, services in semiconductor the best manufacturing ASEH offers efficient resource success through them achieve maximum own operations, helping of our customers' an extension curve, ASEH semiconductor technology To stay ahead of the chain. and our extensive manufacturing utilization most advanced continually innovates and develops the and skilled engineering team that builds a highly experienced semiconductor technologies. sustainable and transforms business philosophies into highest corporate governance standards ASEH adheres to the development we carefully strategies according to industry of the global semiconductor chain, actions. As a major player industry, strategic alliances with the government, talent and resources worldwide. We form and trends, and seek These a mutually beneficial business environment. partners to keep innovating and create academia and business the betterment of mankind and ecological our sustainable development goals to achieve alliances help support conservation.

OPERATING MODEL 11 1.3 Financial Performance1 2019 Revenue Our consolidated operating revenues increased by NT$42.1 billion, or 11.3% annually, to NT$413.2 billion in 2019 We categorize our operating revenues geographically based on the headquarters in as compared with 2018. The revenues of the business sector of packaging and testing (excluding substrate, inter- which customers are located. segment and real estate revenue), increased by NT$27.4 billion, or 12.8% annually, to NT$241.6 billion in 2019 as 0.45% 12 9.35% compared with 2018. In addition, in the business sector of EMS, the revenues increased by NT$13.9 billion, or 9.2% OPERATING MODEL annually, to NT$165.8 billion in 2019 as compared with 2018. The revenues have grown steadily as compared with 2018, which reflected the management team’s efforts during the significant business fluctuations of 2019. 12.40%

18.38%

59.42%

Annual Operating Revenues United States Asia Taiwan Unit: NT$ Million 500,000.0 Europe Others 413,182.1 400,000.0 371,092.4

300,000.0 283,302.5 290,441.2 274,884.1

200,000.0

100,000.0

0.0 2015 2016 2017 2018 2019

1 For further details on financial performance, please refer to our consolidated financial report: http://ir.aseglobal.com/html/ir_financial_overview.php Social Taskforce Involvement Taskforce Employee Care & Development Corporate Sustainability Committee Taskforce Develop and establish corporate-wide sustainability vision, policies, and targets Identify risks and opportunities related to sustainability issues and determine responsive strategies and investments Supervise the planning and implementation of sustainability strategies Oversee corporate-wide sustainability performance and information disclosure Supply Chain Management ● ● ● ● Board of Directors Taskforce Identify corporate-wide sustainability mission or vision Identify corporate-wide sustainability mission guidelines Declare policies, systems or relevant management Environment & ● ● Green Innovation Taskforce Corporate CSR Division Develop action plans in response to the sustainability targets Monitor implementation progress of the action plans and evaluate performance Provide consultancy, as well as expertise and experience sharing for sustainability issues Corporate Integrate corporate sustainability action plans and promote the execution of action plans Assess corporate-wide sustainability performance Lead information disclosure efforts for corporate-wide sustainability performance Governance

● ● ● ● ● ●

ASEH established the Corporate Sustainability Committee (CSC) to achieve effective implementation of (CSC) to achieve effective implementation Corporate Sustainability Committee ASEH established the targets. The CSC is headed by ASEH’s and the company’s sustainability corporate social responsibility action executing the group’s sustainability and is responsible for planning and Chief Operating Officer of Directors. The CSC has five sustainable progress, and reporting to the Board plans, overseeing work executives are appointed as taskforce for which the appropriate senior development taskforces, the issues. Additionally, ASEH established regular meetings on sustainability coordinators who hold of the to facilitate the effective execution as the secretariat of the CSC in order Corporate CSR Division is dedicated to integrating ASEH’s set by the CSC. The Corporate CSR Division sustainability targets strategies from the top down. implementing sustainable development global resources and SUSTAINABLE GOVERNANCE SUSTAINABLE and Structure 2.1 Organization

SUSTAINABLE GOVERNANCE 13 Corporate Sustainability Committee Members

14 SUSTAINABLE GOVERNANCE

Jason C.S. Chang Tien Wu Joseph Tung Jeffrey Chen Raymond Lo TS Chen Dtuang Wang ASEH ASEH ASEH USI Inc. ASE Kaohsiung ASE Chungli ASEH CEO Group COO Group CFO Chairman General Manager General Manager Group CAO

All of our achievements are a result of ASEH’s 2019 CSC Key Projects implementation of corporate sustainability. The Corporate Taskforce 2019 Key Projects Partners Positive Changes CSR Division and the five sustainable development Corporate Governance Evaluation System taskforces evaluate the group’s annual sustainable Corporate Internal and External Evaluation of Board Performance Operational Benefits development performance and achievements and Governance Taskforce Implementation of Integrity Management • Enhancement of Corporate report them to the CSC, which reviews the achievement Information Security Management Strategy Governance Mechanisms rates for short, medium, and long-term sustainability Incorporation of an Environmental Information System • Improvement in the Eco- targets. In 2019, the CSC established long-term targets Environment and Platform (Two-Year Term) Efficiency of Manufacturing Green Innovation Processes Source Power from Renewable Sources of Energy for 2025 and consulted with professional consultants Taskforce • Authorities • Implementation of Implementation of Smart Grids regarding preparatory measures for transformation • External Consultants Procurement Risk Conflict Minerals Management Management toward corporate sustainability and information security • External Professional Supply Chain GHG Inventory Assistance Project governance. For more information, please refer to the Supply Chain Institutions • Strengthen Employee Management Labor Rights Risk Assessment and Improvement Plan Recruitment and Retention relevant chapters. Taskforce • Academic & Research Supply Chain Greenhouse Gas Counseling Impact Institutions Assessment • Energy Certificate Social Benefits Employee Engagement Survey Employee Care Trading Companies • Mitigation of Extreme and Development Legal Compliance for Expatriate Employees Climate Change Taskforce Development of Skilled Talent • Development of Local Establishment of Social Involvement Policies Communities Social Blessed and Joyful Learning Education Program (for • Improving the Positive Engagement Senior Citizens) Impact of Value Chain Taskforce Activities Educational Support Program for Rural and Disadvantaged Students ecties eelo into a cliate leaer an roie the global arket ith lo carbon solutions ccelerate sustainable groth an social eeloent as ell as cocreate share alue by engaging in collaboratie innoation nsure that the roucts coonents an ra aterials associate ith the alue netork can all be recycle an aiie their efficiency an alue hile using the stablish eerging business oels to create social alue Integrity an ccountability Innoation erice reen anufacturing an oarbon Transforation Inclusie orklace esonsible Procureent ororate itienshi iensins s business decision-making process, and create a sustainable business and create a sustainable decision-making process, s business ’ taehder oernent Inustry nions an ssociations s eia ounity hareholers loyees ustoers uliers peratin Assembly Material Module I an PI Testing an PI trategies ollaboratie o arbon ircular Inclusie rincipes ost control Integrate risk anageent eeloent of aance technology eonstration of a resonsible attitue issin ae a ositie influence on the society Visin

Proie a unifie solution for creating efficient seiconuctors leate caability oliance ith highest cororate goernance stanars Ileent sustainable business hilosohies Corporate Social Responsibility Best Practice Principles Corporate Social Responsibility and Citizenship Policy Corporate Sustainability Sustainable Management Framework and Strategy Framework Management Sustainable Sustainability and and Corporate Best Practice Principles Social Responsibility with our Corporate framework in accordance management our sustainable We have established works and stakeholders. ASEH with our partners close collaboration risk identification and through development opportunities identified sustainable Policy. We have also Citizenship the company strengthen in sustainable development, its goals and targets parties to implement with external model. ASEH Sustainable Management Framework ASEH Sustainable

SUSTAINABLE GOVERNANCE 15 Enriching and Promoting Sustainable Culture

While we continue to strengthen our competitive position, we are also actively fulfilling our corporate social responsibility through multi-faceted sustainability programs. The spirit of CSR is firmly embedded into our corporate culture and forms a significant part of our employees’ everyday lives. We connect with external stakeholders to form an ever-expanding virtuous cycle that helps our business partners understand the culture of sustainability at ASEH. We have set a 30-year time frame to advance our sustainability development and continually examine the innovativeness of 16 our plans throughout the process. The core values of ASEH's social responsibility are predicated upon these integrated SUSTAINABLE GOVERNANCE efforts that achieve maximum synergy and keep pace with the times.

Business External Society Innovativeness Sustainability Partners Stakeholders Originality Culture USI CSR Kick-off Meeting subsidiaries to complete the annual RBA self-assessment RBA self-assessment to complete the annual subsidiaries identify any potential (SAQ) in order to questionnaire risks in their operations. or ethical labor, environmental Validated Assessment ASEH adopted the RBA In parallel, and social to audit the environmental Program (VAP) management at these facilities, aspects of sustainable of management systems including the implementation In 2017, the CSC mandated that and their performance. facilities worldwide implement all ASEH manufacturing Audits of these facilities conductedthe RBA VAP by 2019. auditors serve as the basis for by independent third-party and effectively reduce operational future improvements risks. goal set in 2017 to adopt the VAP ASEH has achieved its Japan, at 24 facilities in Taiwan, China, South Korea, We provide Malaysia, Singapore, Mexico and the U.S.A. customers the audit reports from these facilities to our via the RBA-Online system. SPIL Supplier Day closely with local communities to contribute to an local communities closely with social cohesion organize and development inclusive social Joyful Learning’ holistic as the ‘Blessed and activities such for 180 senior and education program health care USI Taiwan facilities. our ASE Chungli and citizens at a key driver of corporate Corporate culture is to our annual CSC Meeting sustainability. In addition the Corporate CSR Division and CSR Kick-off Meeting, lectures to promote a CSR- has also organized six and share sustainability centered corporate culture with employees. Through a issues and achievements online training and group activities diverse curriculum of sustainability forums for our including management training for new employees, managers and sustainability ASEH’s we were able to raise awareness and strengthen corporate sustainability culture. Alliance ASEH is a member of the Responsible Business facilities of its (RBA). ASEH requires all the manufacturing

CSR Culture Promotion Lecture 2019 was an active year of sustainability development for development an active year of sustainability 2019 was Throughout the year, performance. ASEH. 1) Economic global meetings at our key sustainability we held supplier performance, and suppliers’ SDG sites. We evaluated Awards to encourage Supplier Sustainability created the and support the company’s SDGs. suppliers to commit We co-organized the 2) Environmental performance. with the Taiwan Alliance ‘Circular Economy Forum’ (TASS) to promote a supply for Sustainable Supply within TASS members and chain circular economy and the semiconductor ASEH suppliers in particular, To combat global warming, we industry, in general. of energy efficient living spaces advocated the building Carbon Building Forum’ with and co-hosted the ‘Low Members and representatives academic institutions. were invited from the construction industry associations urban to the forum to share their ideas on balancing through the development and environmental protection the adoption use of eco-friendly building materials and We work of low carbon design. 3) Social performance.

SUSTAINABLE GOVERNANCE 17 2.2 Sustainability Strategies evelopment & ital D Ma ap nag Strategy-setting is the key to achieving long-term C em an e sustainability targets that tackle global climate m nt Hu challenges, uncertainties in the energy supply, and 18 risks related to supply shortages of water, raw SUSTAINABLE GOVERNANCE materials and other resources faced by businesses. Circular Inclusive To that end, ASEH has established four strategic sustainability pillars: Low Carbon, Circular, Inclusive Disruptive Innovation ircular esign and Collaborative, to help identify opportunities ocial Iact and growth drivers. We are committed to the ater ycle creation of sustainable value and, to extending our ocial Innoation strategic influence through external stakeholder asteeusable esource anageent communication and joint efforts with various interest groups to achieve a virtuous cycle of Integrate Innovate sustainability. Green Innovation Inclusive Innovation

Low Carbon Collaborative Expand arbon anageent art Procureent o arbon Prouctserices trategic Partnershi atation esilience uly hain nable ustainable ifestyles Collaborative Innovation anageent o reeneneable nergy igh Tech Inestent

Cap lue itali e Va zation of Corporat

Sharing and Diffusion of Intangible Knowledge to the Society Status Progress/ Room for improvement 0 ：

1 On schedule

2025 Target 0 ： Cases involving violations by ASEH Cases involving violations by ASEH Major cases involving violations subsidiaries Employee training coverage : 100% Subsidiary roll-out coverage : 100% • • Customer satisfaction: 90% • • 9,000 patents granted Strategic Approach Set up a patent reward program to encourage patent applications, that will strengthen the company’s operations and IP portfolio. Establish patent applications as the Key Performance Indicator of the Annual Objective Deployment (AOD). Ensure compliance with all applicable laws: Ensure compliance with compliance awareness Continuously promote training, and improve through education and systems and processes. compliance management Continuously enhance customer communication: Providing diverse communications channels to enable instant interaction and communication with customers; enhance information security management to ensure the confidentiality and integrity of customer proprietary information. Implement business conduct and ethics-related Implement business conduct and ethics-related policies and regulations: Continue to promote education and training, commit to comply with ethical standards in all ASEH business activities, and ensure the effectiveness of reporting systems by audit. • • Business Impact on ASEH Business Impact on Compliance with all applicable laws ensures Compliance with all applicable financial risks public trust and helps reduce directly through that would occur either impacts on fines or indirectly through reputation. Good customer relationship management helps to improve our customers' satisfaction and loyalty, thereby increasing our profit and core competitiveness. Establishing norms of business conduct and ethics, and creating an honest and responsible culture are key to our long-term business success. Continuous innovation of technologies lower costs, improve efficiency, thereby reducing resource consumption and energy consumption. In addition, business model innovation on the value chain can increase ASEH's core competitiveness and enable expansion capacity. Issues 2019 Key Regulatory Compliance Customer Relationship Management Business Ethics R&D and Innovation s commitment to corporate social responsibility. to corporate social s commitment ’ Service

Innovation Integrity and Dimensions

Accountability The number of approved patents includes the number of abandoned patents and expired patents. 1 Strategic Approach and Goals of Key Issues Strategic Approach Sustainability Vision Sustainability to providing visibility the status of projects, toward goals and disclose the progress goals, and rates of our sustainability review the achievement CSC Meeting, we In our annual relative topics and their on major sustainability for 2025 based sustainability targets our long-term In 2019, we established and the general public. partners, customers employees, of the ultimate fulfillment leading to our sustainability strategies, the SDGs and the correlation between serve to strengthen These targets to our business operations. importance ASEH

SUSTAINABLE GOVERNANCE 19 2019 Key Progress/ Dimensions Business Impact on ASEH Strategic Approach 2025 Target Issues Status

Having an effective energy management Continue to improve energy management: • More than 2% energy saving ratio (current system helps to increase our energy year's energy saving from projects/total Establish standardized management systems efficiency and lower our energy costs, electricity consumption of the year) through ISO 50001, improve energy efficiency Energy thereby reducing our energy consumption through PDCA improvement method, and build • Renewable energy to account for 27% of total 20 Management and GHG emissions. smart energy management systems to facilitate energy consumption by 2025. SUSTAINABLE GOVERNANCE precise control and lower standby mode energy consumption.

Climate change is now regarded as the Reduce GHG emissions & provide green • GHG intensity (GHG emissions per revenue): major global environmental issue. As manufacturing services: achieve 10% reduction from 2015 to 2025 ASEH continues to expand, the company Green facilities (efficient building designs), energy • Non-renewable energy intensity (non- Green becomes increasingly energy-dependent Climate Change conservation, efficient use of natural resource, renewable energy consumption per revenue): Manufacturing and faces growing pressure from customers, adopting renewable energy (such as solar achieve 10% reduction from 2015 to 2025 and government and other stakeholders to shift installations and green power purchases), and Low-Carbon to renewable energy. Transformation green product design.

Effective water resource management Establish sustainable water recycling system: • Water use intensity (water use per revenue): diminishes the impact of water shortages on achieve 10% reduction compared to 2015 Set up ASEH water management objective and Water Resource ASEH and the value chain, and strengthens strategy based upon integrated circular thinking. • Day(s) of production shutdown in Taiwan Management corporate competitiveness. facilities due to phase 3 water rationing (30% volume reduction of water supply): 0

Effective waste management can reduce Improve source management: • General waste recycling rate: 90% Waste and waste generation and related costs, and Identify and develop materials and production • Hazardous waste intensity (hazardous Circular continuously reduce ASEH's operational process with circular potential to minimize waste. waste generated per revenue): achieve 10% impact on the environment. reduction compared to 2015

Good labor relations promote organizational Implement employee engagement survey and • Deployment of employee engagement survey: harmony and improve organizational feedback mechanisms: employee engagement at 85% or above with competitiveness. a survey response rate of 95% or above Talent Attraction Encourage employees to actively participate in and Retention company activities, solicit for feedback using • Turnover rate less than 20% our employee engagement survey, and offer Inclusive competitive compensation and benefit programs. Workplace Good training and development programs Enhance talent development and training • Training effectiveness system deployed at 85% help attract and retain talents, and effectiveness: of company facilities worldwide Talent create a pleasant working environment, Provide challenging and valuable professional • Key talent retention rate greater than 90% Development thereby enhancing ASEH's productivity, career for employees by offering training and strengthening innovation and enhancing promotion opportunities within the company. profitability. Status Progress/ 2025 Target Complete assessment of human rights risks of human rights Complete assessment for foreign labor the RBA working- Facilities that do not meet set up a system for hour guidelines should monitoring overtime hours. Signing of Code of Conduct Agreement Signing of Code of Conduct risk self- and completion of sustainability assessment by all new suppliers Completion of sustainability risk survey by all first-tier suppliers Completion of sustainability risk survey by over 50% of non-first-tier suppliers Completion of sustainability audits conducted on 100 first-tier suppliers Critical direct material suppliers of packaging and material service complete foreign workers' human rights risk assessment and improvement: 100% Disabling Frequency Rate (F.R.) and disabling Disabling Frequency Rate than 0.4 and 5 Severity Rate (S.R.) less respectively disease: 0 case Major injury and occupational Over 100 industry-academia collaboration projects on environmental technology Over 500 students (potential talent for facilities) participating in the industry- academia collaboration program Over 1,000 disadvantaged students attending the after school program • • • • • • • • • • • • Strategic Approach Protection of human rights: Protection of of forced labor, child labor, Prohibition ensuring rights discrimination and harassment; and privacy; provision of freedom of association hours and appropriate of reasonable working compensation and benefits. Ensure supply chain's sustainable development: Ensure supply chain's sustainable development: Establish partnerships with our suppliers to ensure theirthat they provide a safe working environment, employees are respected and dignified, and their operations are ethical and environmentally friendly. Continuously improve health and safety Continuously improve health management system: to prevent accidents Make all reasonable efforts and promote health. Social involvement strategies: Environmental Conservation, Industry-academia and Public Engagement Community Collaborations, Advocacy Business Impact on ASEH Business Impact Upholding fundamental rights of employees rights of employees Upholding fundamental that an environment as well as creating are essential for a guarantees human rights sustainable business. Establishing a sustainable supply chain is a win-win strategy that strengthens the protection of our suppliers' employees and assets and indirectly improves our competitiveness. Having an advanced and proactive health Having an advanced and system is conduciveand safety management and improving to reducing absenteeism productivity and quality. Active community development through strategic charitable and educational programs, and social work helps to build positive and constructive relationships at the local level, strengthen our social license to operate and create a well-educated workforce for future recruitment. Issues 2019 Key Human Rights Sustainable Supply Chain Occupational Health and Safety Social Involvement

Inclusive

Corporate Workplace Citizenship Responsible Procurement Dimensions

SUSTAINABLE GOVERNANCE 21 2.3 UN Sustainable Development Goals and Sustainable Values Assessment ASEH is building upon its technology leadership to steer the semiconductor industry towards greater sustainability. Since 2017, we have adopted the Total Impact Measurement and Management (TIMM) framework and Social Return on Investment (SROI) analysis to assess the social impacts and operational risks of the company’s business activities using monetary valuation tools. In 2018, we began referencing the United Nation’s Integrating the SDGs into Corporate Reporting: A Practical Guide to map out sustainable development goals (SDG) and sub-targets that need to be actively addressed. In 2019, we used the SDG Compass Inventory of Business Indicators to examine the positive and negative impacts of our four major SDGs and the outcomes of our actions. After two years of continuous improvement, these outcomes have laid the groundwork for the Corporate Sustainability Committee to 22 formulate a value creation pathway. By examining and analyzing the sustainability outcomes of actions by ASEH subsidiaries, we have been able to develop action plans and policies SUSTAINABLE GOVERNANCE for improvements and reduce the impact of potential risks. As such, we are able to fulfill our vision of promoting the United Nations’ 2030 SDGs via our own core competencies.

Adoption of TIMM and SROI valuation tools Use of the SDG Compass Inventory of Business Indicators to redefine 2025 sustainable development strategies To Measure the positive and negative impacts of SDGs.

US$ 6,070 US$ 6,640 US$ 8,192 US$ 9,162 Major ASEH 2016 2017 2018 2019 valuation milestones ASE USI ASE USI ASE USI SPIL ASE USI SPIL

Analysis of ASEH's highly relevant and actively addressed SDGs using the United Nations Global Compact's Integrating the SDGs into Corporate Reporting: A Practical Guide. Expansion of scope to include Siliconware Precision Industries Co., Ltd. (SPIL) Unit: USD million

harehders cnic Integration Ipact Integration of US$ 5,724 inustry chains ith sters internal an eternal resources arn

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Contributions to global SDGs to global Contributions positive to generate more and climate action) quality education, and economic growth, SDGs (decent work for prioritized management measures adopted sustainability In 2019, we benefits, social are invested into employee our business returns at the same time, local economies while boost GDP and business activities help contributions. Our impacts and the SDGs of affordable negative impacts on can result in in our business operations resources Demands on environmental to give back to society. renewable energy welfare and these impacts by focusing on therefore committed ourselves to mitigating and clean water and sanitation. We have consumption and production, and clean energy, responsible sustainability strategies, so as to fulfill goals for 2025 based on our four major strategies. In 2020, we are refining our through our low carbon and recycling sustainability programs realizing these SDGs. our commitment toward

SUSTAINABLE GOVERNANCE 23 Sustainability value and impacts

ASEH adopted the Total Impact Measurement and Social dimension: The primary outcomes are the Management (TIMM) framework for sustainability establishment of supplier partnerships and, employee valuation to quantify the sustainable value of the development and support. The value of social impacts company’s impacts in the economic, tax, environmental in 2019 increased by 20% compared to 2018. The 24 difference in value stemmed from an increase in local

and social dimensions. In 2019, ASEH generated US$ SUSTAINABLE GOVERNANCE 9,162 million worth of sustainable value for stakeholders, procurement compared to the previous year, which increased the assessed value of local employment and which is 12% higher than in 2018. The sustainable value economic prosperity, and the positive developments of positive impacts increased by US$ 970 million. in supplier and employee competitiveness created a heightened level of giving back to the community. Economic and tax dimensions: Growth in ASEH’s business activities has resulted in substantial profit and economic value for shareholders, suppliers, employees 2018~2019 ASEH Sustainable Values and the government while helping to maintain the 2019 2018 Unit: USD million high quality of its R&D and innovation capabilities. In 7,000 2019, the total value generated increased by 8% mainly through the expanded recruitment of talent, issuance of 6,000 employee stock option plans, increases in manufacturing 5,723

capacity, investment in equipment and intangible assets, 5,282 5,000 and initiation of multiple research and development projects to improve the company’s competitiveness. 4,000 3,241 Environmental dimension: Environmental impacts 3,000 primarily stem from the consumption of power, water, 2,708 and chemicals and raw materials in the manufacturing 2,000 and service processes. We therefore increased the

percentage of renewable energy from 12% to 14% 299

1,000 292 -101 and water reuse by 24%. We also fulfilled our pledge -90 to use the proceeds raised through our green bonds to 0 Social Environmental Tax Economic construct green facilities and establish water recycling plants, water treatment plants, and a real-time -1,000 waste water monitoring system that would mitigate environmental impacts and promote human health. External Impact s overall environmental impact totaled US$101 million. Assessed external impacts include impact totaled US$101 million. Assessed external s overall environmental energy resulted in a 26.06% increase in s major policy initiative to invest in sustainable ’ ’ employee and public health, property damage, financial losses, impacts to ecosystems, and natural property damage, financial losses, impacts employee and public health, negative external impacts are impact pathways. The major SDGs affected by capital losses and other consumption and production, affordable and clean energy, responsible clean water and sanitation, and climate action. the use of pollution prevention and control that of 2018. Major corrective actions taken included water discharge. The adoption of a water recycling technologies to mitigate impacts due to waste resulted in the recycling of a total of 28,138 management system for our manufacturing processes in positive contributions to the SDGs of clean megaliters of waste water. These measures resulted and production. water and sanitation and responsible consumption of recycling management measures. The amount of corrective actions taken included the adoption containing cyclopentanone, and other waste recycled organic waste water, plastics, liquid waste totaled 54,847 tons, an increase of 9.7%. resulted in a positive contribution of US$19 million sustainable energy purchases in 2018, which • ASEH • is 23.45% higher than The overall positive environmental impact totaled US$61 million, which • to 2018. Major Negative impacts due to waste disposal were reduced by US$740,000 compared • ASEH e 2

2 s overall social impact totaled US$3,241million, with US$3,227 million directly resulting from the s overall social impact totaled US$3,241million, ’ : ) e 2 1 ↓ ) ) ↑ of 255 tons, 29 tons (13.03%) 2 ↓ ( 2 Output ) s Total Impact Measurement and Management Report 2019. ’ ↓ ) ↑ discharge of 18,778 megaliters, 230 s operations is calculated by monetizing social impacts. The calculations therefore excluded public welfare activities and non-industry-academia educational projects. s operations is calculated by monetizing social impacts. The calculations therefore excluded public welfare activities and non-industry-academia ’ 3 Scope 2 emissions:1,695,223 tCO Scope 2 emissions:1,695,223 Total air pollutant emissions Greenhouse gas emissions ( Greenhouse gas emissions emissions: 98,880 tCO Scope 1 greenhouse gas Total greenhouse gas emissions reduced by 40,500tCO Total greenhouse gas emissions more than in 2018 Waste disposal ( Disposal of 11,850 tons of hazardous waste and 3,098 tons Disposal of 11,850 tons of hazardous waste and reduced by of non-hazardous waste; total waste disposal 3,099 tons (17.17%) compared to 2018. Water use ( 1.32 Total water withdrawals of 24,177 megaliters, megaliters (0.01%) more than in 2018 Waste water discharge ( Wastewater megaliters (1.25%) less than in 2018 (2.21%) compared to 2018 Air pollutant emissions

•

• • • • s sustainable values, please refer to ASEH . The value is mainly attributable to supplier partnerships and human capital development and support, and has resulted in positive impacts on quality partnerships and human capital . The value is mainly attributable to supplier ’ 4 : increase ↑ s overall environmental impact of US$101 million is mainly attributed to resource consumption and environmental emissions from its business activities. We have business activities. emissions from its and environmental resource consumption mainly attributed to of US$101 million is impact s overall environmental ’ Input s operations ’ : decrease;

For more information on ASEH For more information Air pollutants include sulfur oxides, nitrogen oxides, volatile organic compounds, and particulates. manganese, dissolved iron, dissolved phosphate, nitrogen, nitrate fluoride, arsenic, zinc, chromium, hexavalent chromium, total lead, cadmium, n-hexane), with (extracted oils phenols, nickel, copper, nitrogen, ammoniacal solids, suspended include pollutants water Waste selenium, tin, boron, molybdenum, sulfide, and toxic organic compounds. company The value of social impacts resulting directly from the The manufacturing activities at ASEH’s nineteen semiconductor assembly six and testing facilities and electronics manufacturing facilities in Taiwan,China, South Korea, Japan, Singapore, Malaysia, the US, and Mexico. Major demand for raw materials, energy consumption of 3,588,895 MWh (3,076,829 MWh of non-renewable energy and 512,067 MWh of renewable energy), total water use of 24,177 megaliter, and investment in environmental protection US$30 million. paid close attention to the energy and resource efficiency of our facilities and put in place environmental programs to generate positive impacts and mitigate the external cost on the the external cost impacts and mitigate to generate positive environmental programs and put in place of our facilities and resource efficiency attention to the energy paid close significant 2018, there was a compared to impact. However, in a greater environmental in output resulted accompanying growth with SPIL and the In 2019, the merger environment. gas due to greenhouse slight increase in impacts there was a from air pollutants; minor reduction in impacts waste, and a and non-hazardous in the impact of hazardous reduction ecological footprint, and expand the increase water efficiency to reduce our energy to achieve carbon neutrality, use. We shall continue to invest in renewable emissions and water emissions and recycling. sustainable development goals of low carbon impact management to reach our scope of our environmental 1 2 3 4 Social impact employee engagement and development, employee manage the sustainability values generated in areas including supplier partnerships, Social impact assessment allows ASEH to cohesion. In 2019, ASEH health and safety, and education and community company Assessment of environmental impacts in 2019 Assessment of Environmental impact Environmental In 2019, ASEH education, decent work and economic growth, and responsible consumption and production. education, decent work and economic growth, Note: ↓

SUSTAINABLE GOVERNANCE 25 Social Impact Assessments 2019:

Input Output External Impact

Direct operations: Supplier partnerships: Social impact resulting directly from operations totaled US$3,227 million. 2 Inputs directly related to the operations of ASEH • Supplier audit results showed that 42% of Substantial outcomes include: and its subsidiaries include: nonconformities were related to occupational • Supplier partnerships: We used the cost approach valuation and contingent valuation 26 health and safety, 26% were related to labor, methods to assess that the value generated totaled US$2,892 million, including that

• Organization of educational training, SUSTAINABLE GOVERNANCE and 22% were related to management systems, seminars, and forums for suppliers to corrective action reduced the suppliers' property losses and occupational hazard risks, with 10% in the miscellaneous category. enhance suppliers’ capabilities and the training improved suppliers' capabilities. Over 91% of our suppliers have shown • 365 suppliers participated in supplier educational improved competitiveness and business expansion through educational training. • Sustainability audits of 115 raw materials training, seminars and forums suppliers • Employee engagement and development: Survey results showed that investment in Employee engagement and development: human capital builds a sense of achievement and belonging in the workforce and improves • Procurement of 40% of raw materials from • Employee engagement surveys showed an employee competitiveness and management capabilities. Based on the degree of these local suppliers1 engagement rate of 83% with a response rate of outcomes, it was estimated that the social value generated was US$297 million. • Comprehensive employee engagement survey 82.1% • Employee health and safety: We used the cost approach valuation to assess the positive • Regular risk assessment and continuous Employee health and safety: and negative impacts of healthier work environments and occupational injury incidents. improvement of occupational health and • 156 occupational injuries, including 138 physical Positive impacts included the increased chance of disease recovery and reduced financial safety injuries, 4 chemical injuries and 14 ergonomic stress from medical costs due to employee health checkups, which were assessed at a value • Investment of approximately US$3 million in injuries of US$36 million. Negative impacts included harm to employees’ physical, mental, and employee health checkups • Over 82,400 employees participated in health spiritual wellbeing due to occupational injury incidents, which were assessed at a negative value US$500,000. • Investment of approximately US$1 million in checkups industry-academia occupational training • Education: We used the value transfer method to assess the social value of industry- Education: academia occupational training related to business activities, which totaled US$2 million. • Conducted a total of 97 industry-academia The major outcome was the increased operational efficiency achieved by the acquisition of projects on innovative semiconductor research technological advantages and industry talent through the various R&D projects and teaching and development. programs conducted via industry-academia collaborations with multiple colleges and universities.

Indirect operations: • A total of 227 outputs in social cohesion • We used the value transfer method to assess the social value of public welfare activities • To promote social cohesion, ASEH activities, including 7 in community that promote social cohesion, which totaled US$12 million. Of these activities, arts and its subsidiaries organized public development, 101 in community care, 56 and culture sponsorships accounted for the largest percentage at 46%, followed by welfare activities and invested a total in care for disadvantaged families, 1 in reforestation and care for disadvantaged families, both of which accounted for 15%. of approximately US$3 million in seven healthcare sponsorships, 39 in arts and culture The three major outcomes-promotion of artistic literacy among the general public, categories: community development, sponsorships, 21 in sports sponsorships, and 2 improvement of local water quality through environmental protection, and improved community care, care for disadvantaged in reforestation efficiency of local community resources-have improved the well-being of the residents of families, healthcare sponsorships, arts and • A total of 29 outputs in education, including local communities. culture sponsorships, sports sponsorships, 23 in environmental education and 6 in other • We used the value transfer method to assess the social value of environmental education, and reforestation. categories which was estimated to be US$2 million. The major outcome was improved environmental • Investment of US$1 million in education, awareness in the general public and their ability to incorporate eco-friendly actions and including environmental education behavior into everyday activities.

1 Please refer to Chapter 7.1 of this report (Supply Chain Overview) 2 Please refer to Chapter 7.3 of this report (Supply Chain Sustainability Management) development. he company’s sustainable After further deliberation, the CSC combined sustainable manufacturing with innovation and R&D, and added energy management, climate sustainable manufacturing with innovation and R&D, and added energy management, climate After further deliberation, the CSC combined in The assessment ultimately yielded 14 issues of materiality that form the basis for the disclosures change, human rights, and social involvement. sustainable management goals. the 2019 CSR report and formulating internal from the 14 issues. Other topics of lower priority will A further 20 sub-topics (19 GRI-specific and 1 ASEH-specific) for disclosures were derived also be concurrently disclosed in the report. The degree of concern from stakeholders is a key factor in determining the significance of a particular issue. ASEH has designed a questionnaire key factor in determining the significance of a particular issue. ASEH has designed a questionnaire The degree of concern from stakeholders is a (30), responses. Respondents include employees (991), customers (101), shareholders on sustainability that drew a total of 2,297 stakeholders' (10), and community (124). suppliers (977), government (64), industry unions/associations A into the company's core operations is a key driver for ASEH's corporate sustainability. Integrating ESG (environmental, social and governance) on the and CSC members participate actively in evaluating the impact of each sustainability topic 37-member team of senior management leaders and ranking the level of each topic's importance according to the impact. company's revenues, risks and customer satisfaction, The CSC initially identified 11 material issues that are of importance to stakeholders and of impact to t The CSC initially identified 11 material issues International standards and regulations: GRI Standards, SASB, SDGs, RBA and regulations: GRI Standards, SASB, SDGs, International standards Emerging Index Assessment: DJSI, CDP, MSCI ESG Index, FTSE4Good Sustainability Investment listed on the DJSI index and practices from semiconductor companies Benchmarking sustainability policies Global semiconductor industry: stakeholders' perception stakeholder communication to evaluate Analysis of online media reports and regular/occasional Stakeholder Engagement: on sustainability issues s chief operating officer, chief financial officer, chief administration officer, along with the chairperson, general manager/senior executive officer, along with the chairperson, chief financial officer, chief administration s chief operating officer, ’ Stakeholders Sub-topics Key Issues Key

CSC Members importance and relevance of these findings based on the respective impact to their organizations. importance and relevance of these findings based We follow guidelines from GRI Standards to rate the importance of issues based on the level of stakeholder concern and the effect on the operations of the organization. the importance of issues based on the level of stakeholder concern and the effect on the We follow guidelines from GRI Standards to rate to determine the level of routine communication and the use of questionnaires. Senior management are empowered ASEH collects stakeholder concerns through its To identify relevant and important issues, ASEH referenced international standards & regulations, sustainable investment ratings and industry peers as well as stakeholder ratings and industry peers as well as stakeholder standards & regulations, sustainable investment important issues, ASEH referenced international To identify relevant and under 17 sustainable development categories. of 40 related issues were generated and classified communications. A total Economic Issues Social Issues Environmental Issues

20 2,297 37 14 5 6 6

1 3 2 Analysis: Materiality Step Step Step Inclusiveness

Responsiveness Confirmation: Identification:

ASEH develops its materiality assessment framework according to GRI Standards, AA 1000 Stakeholder Engagement Standard (SES), and Principles of identification, analysis and analysis and Principles of identification, Standard (SES), Stakeholder Engagement AA 1000 according to GRI Standards, framework its materiality assessment ASEH develops For the the CSR report. as the basis for compiling and serves plan relevant strategies, development issues, major sustainable allows ASEH to determine The framework confirmation. sustainability issues to our business the relative importance of different feedback from 2,297 stakeholders to determine Responsibility Report, the CSC collated 2019 Corporate Social team led by ASEH operations. A 37-member 2.4 Materiality Assessment and Stakeholder Communication Stakeholder and Assessment 2.4 Materiality Assessment Materiality of key ASEH subsidiaries, selected 14 major issues to be prioritized in driving corporate sustainability and setting long-term sustainability targets. in driving corporate sustainability and selected 14 major issues to be prioritized of key ASEH subsidiaries,

SUSTAINABLE GOVERNANCE 27 Results of Materiality Assessment Economic Environmental Social High Talent Attraction and Retention

Level of Concern by Stakeholders Waste and Circular Regulatory Compliance Climate Change Energy Management

Occupational Health and Safety Business Ethics Sustainable Supply Chain 28 SUSTAINABLE GOVERNANCE Air Pollution Prevention Human Rights Water Resource Management R&D and Innovation

Customer Relationship Management Talent Development Diversity and Inclusion Social Involvement

Low Low High Degree of Business Impact

Material issue, GRI material topic and involvement with the impact

Where the Impact Occurs Our Involvement with the Impacts Material Issue Group GRI Material Topic Manufacturing Procurement Communities Direct Indirect Business Facilities Regulatory Compliance Environmental compliance, Socioeconomic compliance   ● R&D and Innovation Innovation management*  ● Business Ethics Anti-corruption, Anti-competitive behavior   ● Economic Procurement practices, Supplier environmental assessment, Sustainable Supply Chain  ● Supplier social assessment Customer Relationship Customer privacy  ● Management Water Resource Management Water, Effluents and Waste  ● Energy Management Energy  ● Environmental Climate Change Emissions  ● Waste and Circular Water, Effluents  ● Talent Attraction and Retention Employment, Labor/management relations  ● Talent Development Training and education  ● Human rights assessment, Forced or compulsory labor, Social Human Rights   ● ● Supplier social assessment Occupational Health and Safety Occupational health and safety  ● Social Involvement Local community  ●

* Issues important to ASEH but not included under the GRI standards 2 2019 Communication Key Outcome 2019 Communication Satisfied customer percentage is 92% in 2019, which exceeded our "90% satisfied is 92% in 2019, which exceeded our Satisfied customer percentage customer" target. a seminar on the revision ofTo promote a sustainable safety culture, we organized standard operating procedures GRI 403 at our facilities in China. We also adopted notifying local authorities within a for handling occupational hazard incidents and fatalities at ASEH in 2019. specified time limit. There were no occupational engagement survey, organized In 2019, we conducted our second employee for new employees, 320 forums over 410 employee communication seminars meetings at our facilities for foreign employees, and 570 employee feedback worldwide. were NT$413.2 billion, representing In 2019, our consolidated operating revenues or 11.3% as compared with 2018. an increase of approximately NT$42.1 billion, we presented the Sustainability After assessing over 100 suppliers worldwide, the Sustainability Partnership Excellence Award to three of our suppliers and Award to six. • • • • • 2019 Issues of Concerns Occupational Health and Safety Human Rights Talent Development Talent Attraction and Retention Business Performance Talent Attraction and Retention Energy Management Occupational Health and Safety Business Ethics Human Rights Sustainable Supply Chain R&D and Innovation Sustainable Supply Chain Management Customer Relationship • • • • • • • • • • • • • • 1 Communication Mechanisms GM mailbox Intranet web site Satisfaction survey on employees Dedicated employee helpline Annual and quarterly financial reports Quarterly earnings conference Annual shareholders’ meeting Quarterly institutional investors' conference Supplier questionnaire survey Supplier on-site audits Annual supplier forum Supplier capacity-building activities Customer quarterly business review meeting Customer quarterly business Customer audits Customer service platform Technical forums • • • • • • • • • • • • • • • •

Stakeholder

Employees Shareholders Suppliers/ Contractors Customers intervals unless otherwise indicated. We communicate with each stakeholder at irregular and sections of this report. information, please see relevant chapters For more 1 2 Stakeholder Communication Stakeholder influence, diverse responsibility, major principles (dependency, Based on the 5 or be affected by ASEH. that can affect or an organization stakeholders as a group We define groups categorized into two They are major categories of stakeholders. have identified 7 Standard (SES), we Engagement SES-2011 Stakeholder tension) of the AA1000 perspective, stakeholders include our indirect and suppliers/contractors; employees, customers, include shareholders, direct stakeholders direct or indirect. Our the impact is based on whether unions and associations. government, industry residents (media), community vary depending on the stakeholders, the The methods of engagement will depending on the nature of the relationship. stakeholders through a variety of means, We engage with our the purpose of engagement. issues of concern and

SUSTAINABLE GOVERNANCE 29 Stakeholder Communication Mechanisms1 2019 Issues of Concerns 2019 Communication Key Outcome2

• Communication meetings, conferences, • Regulatory Compliance • Co-worked with other companies in the semiconductor packaging and testing forums or seminars held by government industry to establish the TSIA ESH Committee for addressing the issues of authorities • Water Resource Management industrial safety and environmental protection as well as propose amendments in Government environmental protection regulations to the government. • Proactive dialogue with government • Climate Change 30 authorities

• ASECL was awarded a Fire Safety Certificate by the Taoyuan City Government Fire SUSTAINABLE GOVERNANCE • Occupational Health and Safety Department. • Reporting through government portal

• Community perception surveys and needs assessments • We held a press event for media and non-profit foundations, and organized • Communication meetings, forums, seminars • Social Involvement forums and facility visits for concerned professionals to learn about the or workshops held by NGOs technologies behind semiconductor manufacturing and ASEH’s achievements in • Waste and Circular Community, NGOs environmental protection. • Volunteer activity cooperation with NGO and Media • Regulatory Compliance • We contributed US$2.1 million in support of environmental conservation • Press releases • Water Resource Management programs, charitable activities and civic educational programs through • Spokesperson interviews collaboration with 50 NGOs.

• Company's website

• We engaged over 140 external organizations and contributed US$0.9 million in • Regulatory Compliance public policy and industry development. • Organizational member conference • Business Ethics Industry Unions and • The 15T Circular Economy Alliance was established to build a cross-industry Associations • Technology forums held by industry unions/ exchange platform and achieve industry consensus. • Waste and Circular associations • Collaboration with the Chung-Hua Institution for Economic Research and Taiwan • Sustainable Supply Chain Institute of Economic Research to promote the smart grid.

1 We communicate with each stakeholder at irregular intervals unless otherwise indicated. 2 For more information, please see relevant chapters and sections of this report.

ASEH commits to constructing sound corporate governance, sound corporate governance, ASEH commits to constructing ethically and complying with all laws conducting business where we operate. and applicable regulations culture of ASEH strives to establish an organizational standards of integrity and accountability, maintain high and accountability ethics, effective corporate governance as well as conductmechanisms in every aspect of its business, responsibility and business based on the principle of social and shareholders' business ethics to serve both the company's long-term interests. INTEGRITY AND INTEGRITY ACCOUNTABILITY

INTEGRITY AND ACCOUNTABILITY 31 20 Key Performance 19

32 97 CG100 INTEGRITY AND ACCOUNTABILITY Hours1 Assessment TWSE Index

Continuous Education for Performance Assessment of Board Continued listing on the TWSE Board Members and Functional Committees Corporate Governance 100 Index (TWSE CG100 Index)

ASEH proactively reviews its corporate governance practices and effectiveness in implementation using the Corporate Governance Evaluation System launched by the Financial Supervisory Commission ("FSC"). A self-assessment process increases top management executives' awareness in strengthening corporate governance policies, and will help raise the standards of ASEH's corporate governance.

In 2019, ASEH was among the top 20% best performing listed companies with better ratings in the categories of "Information Transparency" and "Corporate Social Responsibility".

In 2019, ASEH was again selected to be a constituent stock of the "TWSE Corporate Governance 100 Index (TWSE CG100 Index)" based on the 2018 assessment of our corporate governance, liquidity tests and financial indicators. To achieve good corporate governance, we will continue to focus on strengthening the structure and operations of the board, protecting the rights and ensuring fair treatment of shareholders, and incorporating sustainable practices into corporate governance.

1 Total training hours = course duration x number of people . 5 and takes into account diverse and takes into account 6 . Members of the Board come from different . Members of the Board come from different 7 . For further details on the composition and responsibilities of the Audit Committee, please refer to Compensation Committee and Risk Management Committee, our 2019 Annual Report English version (http://ir.aseglobal.com/attachme or ASEH’s company nt/20200624145004499205400_en.pdf), Form 20-F "Item 6" website : http://ir.aseglobal.com/html/ir_committees.php. and training status, please on the corporate governance execution For more details refer to ASEH’s company website and visit http://cms.ase.todayir.com.tw/html/ client_tw/ase/attachment/20200623103628213874643_en.pdf. For further details on succession planning, please refer to ASEH’s company website and visit https://www.aseglobal.com/content/en/csr_succession_planning.html. under the U.S.A.Securities in Rule 10A-3 are as defined Independent directors Governing Exchange Act of 1934 as well as defined by the Regulations for Public Appointment of Independent Directors and Compliance Matters Companies by Taiwan FSC. and information regarding For further details on directors' attendance of meetings version. conflict of interest, please refer to our 2019 Annual Report English For further details on the status of directors' diversity and management objectives and visit http://cms. and goals achieved, please refer to ASEH’s company website ase.todayir.com.tw/html/client_tw/ase/attachment/20200522181950242183794_ en.pdf For further details on the composition of the Board, and professional backgrounds and industry experiences of Board members, please refer to 2019 Annual Report English version "Ch. 3. Corporate Governance Report" or 2019 Form 20-F "Item 6". and complementary factors such as: gender, age, and complementary factors such as: gender, industryand professional background culture, nationality, experience In 2019, a total of twelve Board meetings were convened meetings were convened total of twelve Board In 2019, a Board by at least two independent and attended The or by proxy. their supervisory capacity members in To rate was 87%. meeting attendance average Board of interest, directors or the manage and avoid conflicts involving conflicts of interest corporates they represent the interest of the company, are which may jeopardize in the discussions, exercise not allowed to participate on behalf of other directors their votes, nor vote 1 2 3 4 5 6 7 Diversity of the Board of Directors Diversity of the Best Practice Principles ASEH’s Corporate Governance objectives and goals lists the guidelines, management for selecting the Board professional backgrounds with global market perspectivesprofessional backgrounds with global market and possess the abilities to conduct risk oversight. Committee Steering Committee Group Internal Audit Corporate Sustainability Group Corporate Governance Group Resources Integration & Meeting Chairman General Manager , to convene meetings and perform duties as prescribed in the charters the charters as prescribed in and perform duties meetings , to convene Board of Directors 1 General Shareholders' General Shareholders' . 3 . We also established the Group Resources Integration & Steering Committee to oversee manufacturing to oversee manufacturing & Steering Committee the Group Resources Integration . We also established 2 Committee Committee . In addition to the scope of authorities and duties granted by or in accordance with the Taiwan's Company . In addition to the scope of authorities and duties granted Compensation 4 Audit Committee Risk Management

Act and ASEH’s Articles of Incorporation on Shareholders Resolutions, the Board is actively engaged in the supervision of supervision the in engaged actively is Board the Resolutions, Shareholders on Incorporation of Articles ASEH’s and Act risk identification in operation, the overall operations of the company, business strategy formulation and development, sustainability. finance, taxation, and overseeing, planning and implementation of ASEH’s corporate resource allocation between our three major subsidiaries by helping to improve their manufacturing efficiency, avoid to improve their manufacturing efficiency, our three major subsidiaries by helping resource allocation between down initiative standards across all facilities. This top and harmonize manufacturing duplication of R&D investments, our products and expenses resulting in lower prices for performance and drives down operating improves our business to serve customers adequately. strive to build a more robust supply chain services. Ultimately, we and/or within applicable laws and regulations. The committees also submit proposals for Board resolution, and report resolution, and proposals for Board committees also submit regulations. The applicable laws and and/or within Audit Department Internal Group the parallel, In Board. to the functions respective their to relating status of matters the Du-Tsuen Uang, Committee and the Board. In 2019, and presents audit results to the Audit conducts periodical audits the operation corporate governance officer to facilitate Officer, was appointed as the chief Group Chief Administration of the Board The Board is the highest governing body of ASEH. Jason Chang has served as Chairman and Chief Executive Officer of The Board is the highest governing body He is also Chairman of Advanced Semiconductor Engineering Inc. (“ASE”) ASEH since its founding on April 30, 2018. in 1989, and concurrently, the Chief Executive Officer since 2003. As since ASE's listing on the Taiwan Stock Exchange company through consolidating core businesses, tackling challenges, and a strategic leader, the Chairman has led the market leadership in the semiconductor assembly and test industry. creating new business opportunities, to achieve plan and regularly evaluates the succession planning progress to ensure ASEH has developed a management succession the company’s sustainability Structure and Responsibilities of the Board of Directors Structure and Responsibilities 3.1 Board of Directors 3.1 Board “Risk Committee” and ” , “Compensation the “Audit Committee “Board”) established board of directors (the The ASEH in 2019) Committee” (established Management The second Board consists of thirteen members, each serving a three-year term. Three of the members are independent The second Board consists of thirteen members, directors

INTEGRITY AND ACCOUNTABILITY 33 Continuous Education for Board Members Board Performance and The Board plays a vital role in the organization. To expand the knowledge and competencies of our board members to Compensation effectively respond to evolving global and domestic corporate governance and sustainability challenges, a robust board We have formulated compensation policies for our education program was put in place. Based on industry requirements, educational and experience background of board top management to support strategy of sustainable members as well as the results from the performance evaluation of the Board, we facilitate the board members with the business. The compensation of the CEO and other top course planning and activities. From time to time, board members attend courses organized by external parties according management is approved by the Board. In addition 34 to their needs. ASEH board members have continued to participate in continuous education on corporate governance and to individual performance, the compensation of INTEGRITY AND ACCOUNTABILITY sustainability during their tenure, averaging more than the regulatory requirement of 6 hours per director per year. top management is also determined based on the achievement of the company's financial3 and nonfinancial 2019 Training Courses for Board Members performance targets. The nonfinancial performance included the reputational risks, customer satisfaction, Total Training Hours feedback from stakeholder engagement, environmental Course Name (Course Duration * Number of Trainees) and social performance as well as ASEH 2025 Sustainability Goals with 30 long-terms targets. Substantial Civil and Criminal Liabilities of Directors and Supervisors and Case Studies under Corporate 39 hours Governance To enhance overall efficiency of the Board and to How Does a Director Avoid Breach of Trust and Non-arm's Length Transaction 3 hours measure the performance of the Board and individual Legal Compliance Advocacy Conference for Insider Equity Trading of Public Companies 2019 3 hours members with respect to leading and supervising the Brief Introduction of Main Specifications of the Fair Trade Act and the Impact of the Global Antitrust 3 hours company's performance, we established an evaluation Specifications on Taiwanese Enterprises system that incorporates non-financial indicators as well The Impact of Economic Substance Act and Global Anti-Tax Avoidance on the Corporate Governance 33 hours 4 from the Perspective of the Directors and Supervisors as sustainability-related elements . In addition to an internal performance self-evaluation at the end of 2019, Update Summary of Significant Accounting and Auditing Laws and Regulations 1 hour the Board conducted its first performance evaluation of The Impact of Anti-Tax Avoidance and Its Countermeasures 1 hour the functional committees. The evaluation focused on Introduction of the National Risk Assessment Report and Case Analysis on Anti-Money Laundering 2 hours and Counter Financing of Terrorism the level of participation in ASEH’s operation, awareness of the duties, quality of its decision-making, composition The Impact of Tariff on Enterprises under US-China Trade War and Its Countermeasures 3 hours and election of the members and internal control. Directors' Responsibilities and Risk Management under the Latest Corporate Governance Blueprint 3 hours Proposals for improvement were provided to raise the Promotion Forum of ESG Investment 3 hours Board’s level of competence and operating efficiency. Innovation, Digital Technology and Competitive Advantage 3 hours The evaluation results were submitted to the members Total number of training hours 97 hours of the Compensation Committee in 2020 to serve as

1 Since 2014, ASE has donated NT$100 million annually to promote environmental protection in Taiwan and the program will continue after the establishment of Board Participation in Sustainability Governance ASEH. 2 ASE has organized the Supplier Sustainability Awards every year since 2016 and The Board is directly involved in supervising and managing the performance of ASEH’s economic, environmental and will continue to do so after the establishment of ASEH. social decisions. For example, the Board resolved to promote environmental protection efforts in Taiwan by contributing 3 such as the performance of operating revenues, operating profits, net income, and EPS. 1 an amount of US$3.3 million (NT$100.0 million) , appointed independent directors to serve in the review committee for 4 such as the board members' realization of the ASEH's commitment to sustainability, 2 including corporate governance, environment, employees, supply chain, society, the "ASEH Supplier Sustainability Award" . In addition, six directors serve as members of the CSC and regularly monitor and stakeholders. For further details, please refer to "Corporate Sustainability and the implementation results and future plans of sustainability programs. Citizenship Policy" on ASEH's company website at http://www.aseglobal.com/en/ csr_corporate_sustainability_policy.html Taking into consideration of both short term and Taking into consideration of both short term and long term tax impacts when making major business decisions. in Being transparent and disclosing tax information accordance with applicable regulations and reporting requirements. Paying taxes on the profits earned from business activities conducted in relevant jurisdictions and at ensuring intra-group transactions are conducted arm's length. meant Not using tax havens and tax structures that are for tax avoidance or aggressive tax planning. Constructing an appropriate mechanism to evaluate potential tax risks which are given rise to our global manufacturing and sales activities. Developing mutually trustful and respectful relationships with tax authorities in the countries we operate, and communicating with them on tax matters where appropriate. Complying with all applicable tax laws and regulations Complying with all applicable we operate and duly reporting of all countries in which and paying all necessary taxes in a timely manner. 2 3 4 5 6 7 1 ASE Technology Holding Co., Ltd. Tax Policy Co., Ltd, and its subsidiaries ASE Technology Holding Holding") believe that (collectively "ASE Technology responsible taxpayer fosters being an honest and contributes to long term economic growth and ASE Technology Holding is business sustainability. committed to the following: 3.2 Economic Performance and and Performance 3.2 Economic Tax Governance % 66.86 % 16.68 % % % Foreign Institutions and Natural Persons Foreign Institutions and Domestic Natural Persons Financial Institution Government Agencies Other Juridical Persons 3.16 1.67 11.63 Structure of Shareholders Structure Information Transparency right to We place great emphasis on the stakeholders' regulations know, and faithfully comply with applicable to provide regarding information disclosure in order on company them with regular and timely information major financial conditions and business operations, status, internal documents, and corporate governance channels include etc. through diversified channels. These Post System the company website, Market Observation corporate (MOPS), annual report, SEC Filing Form 20-F, press sustainability report, quarterly earnings release, To treat conference and annual shareholders' meeting. the stakeholders equally, we concurrently disclose Chinese information of the preceding matters in both and English. . 2 , 3 . 1

For further details on 2019 Board Performance Evaluation Results, please refer to ASEH's company website and visit http://cms.ase.todayir.com.tw/html/client_tw/ase/attachme For further details on 2019 Board Performance nt/20200703105340263870161_en.pdf and visit http://ir.aseglobal.com/html/ir_doc.php refer to ASEH's company website please documents related to ASEH, For more important with the candidate nomination system set out in the amended ASEH's "Articles of Incorporation" at the extraordinary were elected in accordance The independent directors regarding candidate nomination system general shareholders' meeting on June 21, 2018. Then the shareholders' meeting approved to amend ASEH's "Articles of Incorporation" for all of the board member elections on June 27, 2019. 1 2 3 To ensure shareholders' rights of being fully informed To ensure shareholders' rights of being fully over important of, participating in and making decisions responded matters of the company, we have actively related to TWSE's promotion of corporate governance measures. These measures include a candidate nomination system for Board member elections Shareholder Rights and Interests references for director compensation, and published on and published for director compensation, references website the company Compensation for top management includes both cash includes both for top management Compensation of the industry options. The characteristics and stock business are taken of the company's and the nature determining the ratio of bonus into consideration when short-term performance of top payout based on the time for payment of the variable management and the Furthermore, we believe that the part of compensation. shares by the directors who hold ownership of company positions help align their interests senior management interests of ASEH's shareholders; and actions with the formulated "Stock Ownership therefore, in 2018, we corporate governance and Guidelines". To enhance of financial results, in 2018, ensure the accountability Policy" to reserve the right we also formulated "Clawback variable to cancel and require reimbursement of any to the extent compensation received by the CEO and CFO important permitted by applicable laws. These two website documents were publicly disclosed in ASEH an electronic voting system, case-by-case voting at an electronic voting system, case-by-case of voting resultsshareholder meetings, and the disclosure meetings on a case-by-case basis. The shareholders' way for are held in an effective, legal and convenient rights, shareholders to exercise their shareholders' corporate encouraging shareholders participation in attendance governance and thereby leading to improved at shareholders' meetings.

INTEGRITY AND ACCOUNTABILITY 35 Our principal executive offices and facilities are located in Taiwan and China/Hong Kong. More than 90% of the our Consistent with our core values, ASEH is committed operating revenues, profit before income tax, income tax expense and income tax paid is accounted by business to fully meeting tax obligations while also being activities conducted in Taiwan and China/Hong Kong and not more than 5% of the our operating revenues, profit financially responsible for the potential effects that tax before income tax, income tax expense and income tax paid is accounted by business activities conducted in the rest of payments might have on our business activities and each individual country. The statutory tax rates in Taiwan and China are 20% and 25%, respectively. Most of our China being supportive of corporate innovation, research and subsidiaries qualified as high and new technology enterprises were entitled to a reduced income tax rate of 15% and development, reinvestment and sustainable investment 36 were eligible for super deduction for qualified research and development expenses. Additionally, some of our China initiatives in accordance to government policy. INTEGRITY AND ACCOUNTABILITY subsidiaries utilized loss carry-forward to reduce their tax payments. As a multinational corporation, ASEH’s tax contribution is international in scope and covers a wide range of public tax systems around the world. In addition to income tax, Please refer to the chart below for 2019 operating revenues, profit before income tax, income tax expense and ASEH also contributes numerous other taxes including income tax paid by counties in where ASEH are located. property tax, environmental tax and employment tax.

8% 3% In view of the sophisticated nature of tax matters and 33% 30% the global scale that ASEH operates on, we continuously Operating Revenues Profit before Income Tax monitor and assess changes in relevant tax laws and

US$13.8 billion US$778.3 million regulations and implement internal training to ensure Taiwan (NT$413.2 billion) Taiwan (NT$23.3 billion) that employees have the necessary level of skill and China/Hong Kong China/Hong Kong awareness for tax issues. In addition to the internal Others1 Others1 training, we also have external tax advisors dedicated to 59% 67% providing us with the foresight to mitigate the potential tax-associated risks.

10% 6% 16% 7% Income Tax Expense Income Tax Paid

Taiwan US$167.5 million Taiwan US$221.4 million China/Hong Kong (NT$5.0 billion) China/Hong Kong (NT$6.6 billion) Others1 Others1

74% 87%

1 Other includes South Korea, Singapore, Malaysia, Japan, U.S.A. and Mexico, etc.

Our effective tax rate and cash tax rate were 21.5% and 28.4%, respectively, both of which are higher than the industry average tax rate of 15.26% and the industry average cash tax rate of 14.12% based on SAM CSA Companion in “Semiconductors and Semiconductor Equipment” industry group. Ethical Related Regulations Ethical Code of Business Conduct and Ethics Conduct and Code of Business Best Practice Corporate Governance Principles Best Corporate Social Responsibility Practice Principles Management Best Ethical Corporate Practice Principles Management and Procedure for Ethical Guidelines for Conduct Administrative and Practice Procedures to Prevent Insider Trading Fair Competition and Antitrust Laws Compliance Policy Guidance of Prevention of Corruption Policy and Procedures for Complaints and Concerns Regarding Accounting, Internal Accounting Controls or Auditing Matters Procedures for Handling Whistleblowing Cases of Unethical Conduct ★ and the company's stakeholders company's the and 1 The board members attended the training session attended The board members on the “Substantial Civil and Criminal Liabilities of the Directors and Supervisors and Case Studies under Corporate Governance”, including regulations on insider trading and short-swing by 13 profit rule (a total of 39 hours fulfilled participants). education Business conduct and ethics-related and training were provided to all levels of employees in person, via online courses and e-mail at 21 business locations worldwide. The topics included the following: 1. 2. We have conducted comprehensive communication communication comprehensive We have conducted and the management of programs on the process Whistleblowing Cases of ‘Procedures for Handling and Unethical Conduct’ with the general managers world. staff at 15 business locations around the across In addition, our team has visited 17 offices and Taiwan, China, Japan, South Korea, Singapore, procedures Malaysia to explain clearly the policies and for handling whistleblower reports of unethical take the conduct, and we encourage employees to so as to initiative in exposing dishonest practices and its strengthen the company’s reporting system of mechanisms for the detection and prevention fraud. Education and training programs to better understand ASEH's business ethics standards, ethics standards, ASEH's business to better understand of and Ethics" area "Code of Business Conduct we set up our ethical related website and disseminate the company and implementation policies, guidelines, practices, management levels within the status of the Board and ASEH's concept of company. We also communicate specific practices through business ethics and company's and online training and various education, promotion methods. 2019 Programs and Implementation: 2019 Programs and • • Education and Promotion Education Members ASEH guide To

"ASEH Members" includes all employees, officers, supervisors and directors of ASEH, its subsidiaries and joint ventures. 1 Organization and Authority Organization body of ASEH's business As the highest governance the CSC coordinates and supervises conduct and ethics, the ethical the establishment and implementation of The corporate management policies and specifications. business CSC periodically reviews the promotion of policies and conduct and ethics and the compliance of The Corporate specifications, and reports to the Board. ethical Governance Taskforce under the CSC promotes manufacturing policies and specifications to our global appropriate sites and assists in managing and adopting management policies and specifications to ensure ethical laws and in compliance with the requirements of local responsible regulations. Global manufacturing sites are and for planning the internal organization, structure, standard allocation of responsibilities, formulating in operating procedures and conduct guidelines accordance with corporate policies and specifications, activities with and promoting awareness and educational and in respect to ethics policy in internal management is in charge daily operation. The Group Internal Audit of of supervision to ensure the operating effectiveness reporting system. Policies and Specifications Policies and published has successively approved The Board which related regulations management ethical corporate and specification, behavior clearly specify the policies procedures and grievance systems guidelines, operational behaviors. These policies aim to to prevent unethical of honesty and responsibility and shape ASEH's culture of compliance to the highest to realize its commitment overall business activities. ethical standards in ASEH's 3.3 Business Ethics 3.3 Business

INTEGRITY AND ACCOUNTABILITY 37 (1) Business conduct and ethics-related issues such as human rights, ethical management, regulatory compliance, and information security (308,380 participants for a total of 590,735 hours) Processing Procedures for (2) Responsible Business Alliance (RBA) Code of Conduct course (52,407 participants for a total of 38,503 hours) Violation Reporting (3) Employee Code of Conduct at all business locations (38,246 participants for a total of 16,295 hours) Consultation and Report Information Collection 38 We have established channel of consultation for ASEH Members and various internal and external reporting channels1. INTEGRITY AND ACCOUNTABILITY ASEH Members or any third party may report to the internal or external channels, either using their own identity or anonymously. Investigation and improvements were made according to related reported issues, emphasizing on the importance of business ethics and integrity by providing educational training (such as e-mail advocacy and online quizzes). We are committed to keeping the whistleblower's identity and reporting contents confidential, and protecting him/her from any unfair treatment or retaliation as a result of the violation reporting. Cases Investigation In 2019, we received 15 cases reported through the "Code of Conduct Compliance Reporting System". Among them, 6 cases were not accepted due to insufficient information, while 4 were non-related cases. Of the remaining 5 cases that are related to ethics matters, no misconduct was detected in 3 cases after thorough investigations. The rest 2 cases contain the same allegations which are still under investigation from 2018 and are thus combined together to be further investigated (for more information, please refer to the table below). The department involved has strengthened Result Review its anti-corruption measures and policies, such as code of conduct and ethics awareness and training program at site video walls or via video, department weekly meeting and signing declaration letter by employees. The program covering rate is 100%. Moreover, we enhanced improvement and control measures after a thorough review of all related procedures at the same time. We have finished further education and training programs to ensure employees fully understand the new working procedures and guidelines and follow them correctly. Management Mechanism Improvement In 2018, for the purpose to reinforce the whistle-blowing mechanism, ASEH appoints an independent third party to assist in handling any reporting regarding insiders' misconducts and provide legal services in the subsequent investigation.

Cases Received by Code of Conduct Compliance Reporting System

2018 2019

Not accepted (cases lack sufficient information to conduct further 11 6 investigation)

Not related to ethics matters 3 4*

Related to ethics matters 2** 5***

Total 16 15

* The 4 cases involve employees' personal complaints and were forwarded to the HR department to handle. ** The 2 cases contain the same allegations and are thus combined together for investigation, and the investigation is not concluded yet. *** Of them, 2 cases contain the same allegations which are still under investigation from 2018, and are thus combined for further investigation.

1 For further details on internal and external report channels, please refer to ASEH's website - http://www.aseglobal.com/en/csr_business_conduct_ethics.html and control 3 . The risk registers include a description 2 are embedded into our ERM program.We have are embedded into 1 We define an emerging risk as: an issue that is perceived to be potentially significant in future but do not currently exists, or a previously known issue that is evolving in unexpected ways with unanticipated. The risk registers include a description of the overall risk, characteristics (scenario and impact) of the risk; and current risk management activities including mitigation strategy/control measures. Risk levels are determined according to the likelihood and impact of risks.

of the overall risk, characteristics (scenario and impact) of the overall risk, characteristics (scenario activities of the risk; and current risk management The including mitigation strategy/control measures. and identified risks are assessed in terms of likelihood then mapped impact to determine their risk level, and onto a Risk Map according to their risk level effectiveness. Further risk mitigation plans are defined to effectiveness. Further risk mitigation plans Major risks, reduce the residual risk if judged necessary. were reported together with suitable risk response plans, be monitored to top management and the progress will periodically. 1 2 3 ASE Kaohsiung, Chungli, Shanghai (A&T), Shanghai (A&T), Shanghai Chungli, Shanghai ASE Kaohsiung, Real Estate Group Kunshan, Suzhou facilities, (Material), as all group-level the USI Group) as well as well as functional departments. have an influence on our Risks or events that might identified and evaluated, in order business objectives are responses. In addition, the to decide on appropriate of long-term emerging identification and management risks of prevention, early warning, established the mechanism crisis management and business emergency response, mitigate, transfer or avoid risks. continuity plans that management We are confident that by having a sound risk program, ASE has effectively kept the respective scenarios under control. operational In our ERM program, corporate level and within level risks are identified, prioritised and reported risk registers

s risk management s subsidiaries are ’ ’ Executive USI Group (ICM/CAO) Secretariat Committee Risk Management s board of directors established directors established s board of ’ s overall risk management, implement the decisions of the s overall risk management, ’ ASEH ASEH SPIL Group Committee Committee Risk Management Risk Management Board of Directors s risk management committee. ’ ASE Group Committee Risk Management

Organization Chart of Risk Management Committee Organization Chart of Risk Management

and are accountable to the board and are accountable In ("risk functions") across all of our organizations. designated departments and functions We manage risks through ("ERM") programs implemented in our major manufacturing sites (i.e., addition, we have Enterprise Risk Management onsible for each subsidiary company onsible for each subsidiary corporate risk management teams resp also required to establish board of directors in connection to risk management, coordinate and promote cross-organization risk management and promote cross-organization risk connection to risk management, coordinate board of directors in review mechanisms of the Company and its subsidiaries, manage overall risk control and remedial plans, supervise and periodically on an annual report to the board and updates control reports. The committee submits and integrate all risk for improvements. ASEH management implementation and recommendations matters related to risk 3.4 Risk Management 3.4 Risk risks, and process these and to properly assess risks in advance, and external operational to discover internal The ability 2019, ASEH In December and reduce loss exposures. to effectively prevent is important directors and one two independent with its Charter, appointed and in accordance committee, a risk management level decision-making body for risk management Our board of directors is the highest member to the committee. landscapes. The strategies and changing business risk management decisions based on corporate and endorses major for managing the Company committee shall be responsible

INTEGRITY AND ACCOUNTABILITY 39 We had introduced a top-down ERM approach Risk Management Organization Scheme to connect the top management with the rest of the organization on risk matters and ensure sound management of corporate-wide risks. Specifically, our Board of top management are invited to identify key risks that Directors Corporate 40 are "top of mind" for the company. These top-down Risk Guidelines Function identified risks are then reviewed through our current Managemene Units INTEGRITY AND ACCOUNTABILITY Committee ERM process, enhancing the efficiency and effectiveness of the decision-making process across the organization.

Corporate Risk Management Integrated with Manufacturing Executive Information Internal Controls and Internal Audits Sites Officers We view internal controls as an important part of ERM. ERM is more effective with internal controls that cover risk responses and other ERM processes in place. We identify and document all of our major risks together Risk Management Process with related controls. The effectiveness of controls are reviewed in the annual Control Self Assessment. In addition, we redesigned our risk assessment system and linked our current internal control activities to corresponding risk scenarios such that a complete list Risk Risk Risk Identification Assessment Response of internal control measures can be pre-defined in the system to help our risk functions to more accurately assess the effectiveness of risk control. Finally, our Risk questionnaires are Risks are assessed from Identify and evaluate possible internal audit system carries out independent appraisals used to gather exposure three perspectives responses to risk, and the evaluation criteria include: of the implementation of key risk mitigation plans by our information to identify risks/ Likelihood risk functions thereby ensuring that risks are properly Cost of implementation events that might adversely Impact (on finance, managed. affect the achievement of business continuity, and Effectiveness (degree to which a ASEH's business objectives. reputation) response will reduce impact) Control effectiveness Feasibility (difficulty)

Time required for implementation Response Strategies Response that require upgrading within the company Identify jobs goals for the with corporate development to keep up in areas such as CIM provide skills training future, and upgradingand Retraining technology. AI and automation employees to improve their skills the workforce enables new technology, leading to higher to adapt to the rise of and mutual trust. Effective employee retention rate programs will strengthen training and development increase productivity, innovation employee engagement, create a positive impact on and performance, and corporate sustainability. The disruptive impact of epidemics on the The disruptive impact supply chain Risk description posed a threat Emerging infectious diseases have always pneumonia to global health. Covid-19, caused by the late December viral strain that originated from China in now spread 2019, is a highly infectious disease that has of capacities the straining and worldwide furious and fast their borders healthcare systems. Many countries closed to to mitigate the spread, causing a huge disruption supply global supply chains. The global technology chain may be severely stretched if these electronics, companies rely telecommunications and semiconductor will on supplies from a single region. Such disruption and will affect the accuracy of ASE's capacity building impact ASE's net profits. Potential Impact The sharp decline in economic activity may expose the potential weakness of the world economy, and is expected to cause global economic growth to decline -3.1% in 2020. The spread of the virus has also caused to development or investment. Regular exchanges and Regular exchanges or investment. to development market analysis teams, between the R&D and discussions suppliers, equipment institutions, material and research types of technologies customers, on the vendors and markets and the targeted application required for of advanced packaging focusing on the development Setting short-, medium-, and long- products/technology. focusing R&D resources on selected term R&D plans, and key projects. Accelerated development of smart Accelerated development the lack of sufficient talent manufacturing, and shift to automation to support the company’s Risk description applications is The future of automotive and healthcare and dependent on the trend of high quality products, accumulation ASE is leveraging on years of knowledge on these to focus on smart manufacturing to tap labor to opportunities. Automation is replacing human and data, and perform analysis of production parameters needed in will require a major adjustment in the skills ASEH is able manpower planning. The speed by which impact on the to transform its manpower needs, has an efficiency of the company's business operations. Potential Impact 5G and Industry development in AI, Internet of Things, shift to factory information security has accelerated the to increase automation, that captures and analyzes data the operational efficiency. In the era of digitalization, to keep up withcompany’s manpower planning will need this shift. The inability to react quickly to the manpower needs of digital transformation will reduce the company’s competitiveness and impact business returns. prior

The product not meeting the market demand after The product not meeting the market development. and unable The company incurring huge labor costs due to to achieve the corresponding R&D returns mismatched talent for key technical positions. of technology for Emphasis is on improper selection development, which affects equipment investment evaluation. Missing period of key technology the development areas, affecting the company's competitiveness.

ailure to properly evaluate and identify customer ailure to properly evaluate and identify customer Response Strategies Establish a new technology risk assessment platform Risk description (AI) related products 5G and artificial intelligence opportunities. Among them, the bring huge business of advanced packaging identification and development chip solutions has a great technology for the relevant revenue of ASE. If ASE fails to focus impact on the future packaging its limited resources on developing the right technology, it will affect R&D efficacy. Potential Impact F will result segment and key technologies to be developed in 1. 2. 3. 4. Long-term Emerging Risks Long-term Emerging development/investment risks New technology We identify and analyze possible risks for our business, risks for our business, and analyze possible We identify monitoring and provide corresponding operation, are that risks those for mechanisms control and measures of high impact.

INTEGRITY AND ACCOUNTABILITY 41 the world economic recovery to stall, and metastasized Changes in market interest rates will lead to variances the effects of the supply chain disruption. Although in effective interest rates of borrowings from which the the virus may be under control the negative impact on future cash flow fluctuations arise. The Group utilized ASEH Internal Control consumer and economic activity may continue because financing instruments with low interest rates and Management Process people will remain cautious for a while. favorable terms to maintain low financing cost, adequate banking facilities, as well as to hedge interest rate risk. 42 Response Strategies INTEGRITY AND ACCOUNTABILITY Changes in Exchange Rate: The Group had sales and 1. Enhance visibility of delivery dates and inventory levels, purchases as well as financing activities denominated in closely monitor inventory days and supply partners. foreign currency which exposed the Group to foreign Develop strategies for alternative procurement and currency exchange rate risk. The Group was mainly Risk manufacturing in different parts of the world to assessments subject to the impact from the exchange rate fluctuation mitigate supply chain disruptions. in US$ and JPY against NT$ or CNY. We entered into 2. Formulate a global supply chain and emergency a variety of derivative financial instruments to hedge response strategy, and establish a supplier risk foreign currency exchange rate risk to minimize the assessment process to mitigate supply chain fluctuations of assets and liabilities denominated in Risk control Level of disruptions. Practice dual sourcing of key components foreign currencies. matrix authority to ensure continuous supply, in case of unpredictable updates events such as natural disasters, political unrest or pandemics. Internal Control and Auditing

3. The company has established a system for supplier risk Internal Control assessment, to help identify major events in various Self- Internal Our internal control policies are based on the Regulations assessment regions and continue to monitor and effectively control self- of division of manage the various risks that may affect the supply Governing Establishment of Internal Control Systems by assessments function chain. The system ensures that back up suppliers Public Companies established by the FSC and relevant in different geographical locations can be quickly regulations established by the U.S.A. Securities and triggered to support the gap and avoid supply chain Exchange Commission. The policies take into account our disruptions caused by unforeseen interruptions in Tier actual operational activities, are designed and approved Supervision 1 and Tier 2 supply partners. by our managers and the board, and are implemented and and managed by our managers, the board, and other improvements Financial Risk employees. The policies include Entity level and Activity Changes in Interest Rate: Except a portion of long-term level; the objectives of these policies are to define the borrowings and bonds payable at fixed interest rates, scope and standards of the internal control system for our the Group was exposed to interest rate risk because business units and subsidiaries, ensure the effectiveness group entities borrowed funds at floating interest rates. of internal control design and implementation, facilitate d and the effectiveness and efficiency of the company's and efficiency the effectiveness of and transparency the reliability, timeliness operations; It also offers compliance with regulations. reports; and when necessary to ensure for improvements suggestions of the internal effective implementation the continued control system. allocates an appropriate The Group Internal Audit full-time internal auditors based on number of qualified, scale of the investment, business factors including the requirements, and relevant lawsconditions, management internal auditing tasks from and regulations to perform and impartial standpoint. Our an independent, objective, for internal auditors comply with competency standards authorities. the provisions stipulated by the competent an annual Auditors undergo professional training on organizedbasis and take part in relevant business training itself to by accreditation bodies or by the company of their audits upgrade their capabilities and the quality procedures as well as to continuously improve auditing way, they and verification processes and skills. In this can actively develop their auditing and supplementary of their verification tools and upgrade the effectiveness auditing work. a risk-focused The Group Internal Audit has established the risks in internal audit system to carefully evaluate assessment each subject in every audit category. The scope, results are then used to determine the focus, auditing work, method, procedures and frequency of the that should be as well as determine the significant risks prioritized and where checks need to be strengthened. In this way, the company can achieve the most efficient allocation of auditing resources and keep the boar Internal Audit The Group Internal Audit under the board assists the board and the managers in inspecting and evaluating the assessing as well as system, control internal the of validity feedback; to be used as indicators for internal control for internal control to be used as indicators feedback; up an e-platform for We have also set improvement. on internal to gain access to information employees methods, legal policies, management control processes, help that will and training and organization, education of internal control. Senior strengthen their awareness subsidiaries were often invited management from our for discussions on areas of concern to engage in indepth the key to tone at the top and, determine communicating internal control. and implementing effective 4.0, all ASEH locations With the advent of Industry application software have begun to use information processes. In order to achieve or automated control control corporate efficiency improvement and risk are widely objectives, external consultants and experts authorization invited to share the design, application and In addition, management mechanism of process robots. design of the the Group also continuously optimizes the platform, Group’s internal control and risk management division regularly executes audit authority, functional and helps to of labor, and risk management activities, of internal consolidate and analyze the operation status detect risks control related management activities and cost and through e-system to reduce manual operations and provide improve the efficiency of self-evaluation, management as real-time and useful information to help achievement a basis for decision-making, to ensure the of operating goals. was included 1 Compliance with relevant laws and Compliance with relevant regulations Reliable, timely, transparent reports in Reliable, timely, transparent regulations compliance with relevant Operational effectiveness and efficiency and effectiveness Operational

1 2 3

Including Taiwan and China facilities of USI. 1 Every year, all of our subsidiaries conduct internal Every year, all of our The scope of the assessments control self-assessments. the company's covers the design and implementation of of Duties internal control systems (e.g., Segregation chart of Assessment, system authority management, internal Authority Management, and Sarbanes-Oxley a self- control assessment). The purpose is to implement response to supervisory mechanism that allows a rapid we can adjust environmental changes, based on which control the design and implementation of internal of systems, and improve the quality and efficiency supervision internal control. In 2019, to strengthen the and management of ASEH subsidiaries, USI sound company operations, and achieve the following achieve the following operations, and sound company goals: in the group’s internal control framework. By enabling in the group’s internal control framework. structure both the document control and organizational to respond to be effectively linked, we were better able to changes in USI’s product business units. and We conduct regular internal control education charts radar risk develop and subsidiaries, our for training from self-assessment results, internal and external audit

INTEGRITY AND ACCOUNTABILITY 43 managers updated regarding the status of its internal The Group Internal Audit delivers audit reports and suggestions are administered and reported within a control operations. Managers can thereby understand follow-up summary reports to the independent directors specified time period. existing shortcomings or hidden risks, and effectively on a monthly basis for reference purposes. The supervisor Throughout 2019, we have completed the optimization assist the company and subsidiaries in improving the of the Group Internal Audit also attends the Audit Committee's quarterly meetings to report to independent of the group's audit operation management system, internal control system, risk management, and corporate and are committed to planning the development of the directors the audit results. Moreover, if there is any 44 governance. new SOX self-assessment system, improving the ability special situation, the supervisor of audit will immediately INTEGRITY AND ACCOUNTABILITY of internal auditors to analyze data, coordinating the The Group Internal Audit reviews the internal control self- report to the independent directors that there is no such special situation in 2019. So far, the independent internal audit resources of the group, and strengthening assessment reports of the company and its subsidiaries' on an directors of the company have communicated well with the content and quality of audit reports and working annual basis along with improvements to the internal control the internal audit supervisor. The supervisor also reports papers, upgrading the skills and capabilities of shortcomings and anomalies discovered during audits. These to the board on the progress and findings of auditing employees, integrating our internal audit resources, and serve as a basis for the board and CEO to assess the validity of operations, and follows up on and internal audit requests improving the content and quality of our reporting in the overall internal control system and for issuing statements and suggestions raised by independent directors, the order to elevate the value and effectiveness of internal on the internal control system. Audit Committee and the board. These requests and audits.

Internal Audit Management Process

Improvement tracking Audit planning • Follow-up reports on improvement measures • Risk assessment • Reports to the Audit Committee and board of directors • Annual audit plan • Compilation and provision of audit reviews on common • Audit process standardization shortcomings • Continuing professional training courses for auditors

Internal control Risk management Corporate governance Audit implementation Audit results • Independent, objective, and impartial • Reporting of audit results • Audit process customization • Audit reports • Verification process and techniques • Reporting to Audit Committee and board of directors • Subsidiary verification tools • Review of internal control self-assessment reports as adopted human rights management human rights management as adopted Management of Human Rights Risk of Human Management ASEH h risk and include follow PDCA procedures practices that control, and assessment, monitoring, identification, by different roles played In a reflection of the disclosure. human rights management efforts ASEH, we focused our and local communities, on our employees, suppliers, with each group and providing performing due diligence to prevent any human rights whistle-blowing channels violations. of our manufacturing and The human rights risks mainly related to employee and business activities are groups. We used the RBA local community interest (SAQ) and Validated Self-Assessment Questionnaire at Audit Process (VAP) to perform risk management results of our our facilities worldwide. By examining the three years, human rights risk assessments of the past groups we were able to identify issues and interest and prepare that were vulnerable to human rights risks measures. corresponding mitigation and compensation human According to the assessment results, potential rights risk issues include working hours, emergency of preparedness, occupational safety, free choice Each employment, and compensation and benefits. which year, we have drawn up mitigation measures, human rights include raising human rights awareness via management training, ensuring sufficient manpower, safety, and of working hours, improving occupational information, preventing occupational hazards. For more Safety and please refer to Chapter 6.4: Occupational Health of this report. and For the human rights risk factor of compensation benefits, we adopted the living wage methodology under the framework suggested by Richard Anker in his paper (published in 2011) and book (co-written with Martha Anker; published in 2017). We examined laborer wellbeing and basic living standards to better Remedy Management 2 4 ASEH vows to maintain an accessible and ASEH vows to maintain an accessible and open grievance mechanism, and to take immediate remedial measures if any violation of human rights issues occurred. ASEH continuously promotes human rights education, regularly assesses human rights risks, reports and discloses assessment results to top executives and to the public. Respect Protect 3 1 ASEH forbids forced labor, child labor, discrimination, and harassment, and guarantees the freedom of association, privacy, reasonable working hours and appropriate compensation and benefits. ASEH complies with all labor and gender ASEH complies with all labor and gender equality related laws and regulations where a we operate, and provides employees with safe and healthy work environment.

Human Rights Policy Rights Policy Human standards, including respects international ASEH supports and of human rights, and promotion For the protection UN Guiding principles of UN Global Compact, of Human Rights, the first & second the UN Universal Declaration Principles Standards, Declaration of Fundamental and Human Rights, ILO International Labor Principles on Business rights Additionally, ASEH implements human as well as relevant local laws and regulations. and Rights at Work, to protect management principles accordingly the RBA. ASEH has established human rights protection by joining order to suppliers to uphold these principles in all ASEH's employees and also expects our the human rights of protect the human rights. Four Principles

In order to adequately manage human rights issues that arise from operating a global business, ASEH implements risk In order to adequately manage human rights reports the information to the CSC at regular meetings. management at all facilities, collates and Care and Development Taskforce, Employee and operation-related human rights issues are managed by the Employee each facility implements using the RBA management. On community and environmental human rights issues, For suppliers, the Supply Chain environmental monitoring and survey community feedback locally to identify risks. risks. Management Taskforce conducts supplier sustainability assessments to identify related Human Rights Governance 3.5 Human Rights Management Rights 3.5 Human

INTEGRITY AND ACCOUNTABILITY 45 understand our employees’ basic food, clothing, shelter, and transportation needs, along with the money needed to cover necessary education, social insurance, and other expenses. After determining a living wage based on the characteristics of each individual company, we compared it to the typical wages at each company in order to understand whether those wages were sufficient to support our employees and provide them with acceptable living conditions. When the program was put into practice it helped us promote human rights by making compensatory wage adjustments and ensuring basic rights and quality of life for our employees and their families, thus improving employee cohesion and fulfilling ASEH’s responsibility as an employer.

We assessed human rights risks associated with the company’s suppliers using supplier sustainability risk assessment questionnaires and the RBA Self-Assessment Questionnaire (SAQ). 46

The company performed sustainability risk assessments on all tier-1 suppliers and conducted risk identification through the RBA Validated Audit Process (VAP), which includes an audit INTEGRITY AND ACCOUNTABILITY of human rights issues. Based on the assessment results, we identified working hours, compensation and benefits, occupational safety, emergency preparedness, and responsible mineral sourcing as major human rights risks. We then identified potential high-risk suppliers and adopted measures to verify and lower any risks. For more information, please refer to Chapter 7: Responsible Procurement of this report.

PLAN DO

Identify vulnerable human rights risks targets and Implement human rights risk management in the topics, implement human rights risk assessment daily operation process, starting with the policies, through corresponding due diligence methods, measures, education and documenting, to avoid and provide a grievance mechanism to safeguard possible human rights risk events and damages. the rights of each stakeholder.

Human Rights Risk Management Process of ASEH

ACTION CHECK

Develop mitigation measures and compensation Conduct risk assessment methods based on measures for human rights risks and targets different subjects, conduct annual human rights that are vulnerable, plan future human rights risk surveys, identify risk issues and targets, and risk management objectives, and implement report them to CSC. continuous improvement mechanisms. Impact High Complaint Mechanism Complaint internal whistle-blowing channels of internal whistle-blowing subsidiary companies aseglobal.com/en/csr_business_conduct_ ethics.html 1. Internal whistle-blowing channels: the 1. Internal whistle-blowing www. 2. External reporting channel: Responsible Sourcing of Minerals

Due Diligence Occupational Safety Occupational Monitoring of noise, effluent, and emissions sources at ASEH facilities RBA Self-Assessment RBA Self-Assessment (SAQ) and Questionnaire Process (VAP) Validated Audit Supplier sustainability questionnaires/RBA RBA SAQ, on-site audits, and VAP to survey and assess human rights risks

Medium Working Hours

Human Rights Issues Human Rights Water Management Wages and Benefits Water Management, Noise Water Management, Noise Pollution, Air Pollution Freely Chosen Employment, Freely Chosen Wages and Working Hours, Benefits, Non-Discrimination, Safety, Emergency Occupational Sexual Harassment Preparedness, Freely Chosen Employment, Hours, Young Workers, Working Wages and Benefits, Occupational Safety, Emergency Preparedness, Minerals Responsible Sourcing of Young Workers

Young Workers Emergency Preparedness Local communities Foreign employees All suppliers All employees Child laborers

Sexual Harassment Interest Group • • • • • Policy Low Non-Discrimination ASEH Corporate Social Responsibility Best Practice Principles ASEH Human Rights ASEH Human Policy ASEH Supplier Code of Conduct Occupational Injury and Illness Occupational

Noise Freely Chosen Employment Sanitation, Food, and Housing

Frequency

Contributor to community development Employer Purchaser ASEH as a/an

Human rights management standards and regulations: Human rights management standards 1. "ASEH Human Rights Policy", please visit: http://www.aseglobal.com/en/csr_human_rights_management.html please visit: http://ir.aseglobal.com/attachment/20180713163117124148942_en.pdf 2. "ASEH Corporate Social Responsibility Best Practice Principles", 3. "ASEH Code of Business Conduct and Ethics", please visit: http://ir.aseglobal.com/attachment/20180622151727139618980_en.pdf 4. "ASEH Supplier Code of Conduct", please visit: www.aseglobal.com/en/pdf/ASE_Holding_Supplier_CoC_EN_2018.pdf ASEH Human Rights Risk Matrix High Medium Low

INTEGRITY AND ACCOUNTABILITY 47 Mitigation measures for human rights risks

Target Employee Suppliers

Labor Health and Safety Labor Health and Safety Ethics

Risk issues Working Hours Freely Chosen Employment 48 Occupational Safety Occupational Safety Responsible Sourcing of Freely Chosen Employment Working Hours Emergency Preparedness Emergency Preparedness Minerals INTEGRITY AND ACCOUNTABILITY Wages and Benefits Wages and Benefits

• Employment of sufficient manpower • Establishment of COVID-19 pandemic • Annual audits or RBA VAP to assess suppliers’ human rights risks through company to meet manufacturing capacity and emergency response plan; enforcement subsidiaries in order to mitigate risks. prevent manpower shortages and of personal hygiene; and tracing of • Requiring suppliers to adopt corrective measures for human rights risks and conduct overtime employee contact history. follow-up on implementation. • Establishment of working hours For more information, please refer to • For more information, please refer to Chapter 7.3: Supply Chain Sustainability management system to alert employees Chapter 6.4: Occupational Health and Management-Supplier Sustainability Audit Mechanisms of this report. and their direct superiors of overtime Safety—Health Promotion. Mitigation work. measures • Public fire safety measures in accordance • Organization of human rights training with the recommendations of the National courses Fire Protection Association; enhanced • Compliance with local laws and training in disaster preparedness and regulations; regular review and safety education. For more information, revision of employee handbooks and please refer to Chapter 6.4: Occupational regulations Health and Safety—Disaster Preparedness and Emergency Response of this report.

• Adoption of living wage calculation • Health assessments performed by • Requiring suppliers to provide guidance or financial compensation, or to implement methodology and establishment of professional physicians in medical policy changes or other compensatory measures for employees whose human rights overtime management and tracking consultation to help employees with self- have been violated. mechanism to prevent employees from health management. • For more information, please refer to Chapter 7.3: Supply Chain Sustainability working for seven or more consecutive • Assistance with medical insurance claims Management-Supplier Sustainability Audit Mechanisms of this report. days. Compensation • Regular emergency evacuation drills for • Financial compensation and revision measures fire, earthquake, and composite disasters; of labor policy for employees whose review and improvement of warning and travel rights are violated prevention measures. • Disbursement of unpaid wages to terminated employees within the specified period of time set forth in local laws and regulations

1 The human rights training courses organized at ASEH subsidiaries in 2019 totalled 197,692 hours.

e Laws and Regulations Update Our legal department monitors and updates accordingly the inventory of applicable regulations, and conveys the updated statutes to respective departments at each on operation site for regulatory identification a regular basis Mechanism and Measures Designating a person-in-charge of regulatory identification in the respective departments at each site, and authorizing the designated person to ensure compliance to applicable laws and regulations, and to report the state of compliance to his or her superior import and export regulations and prohibitions. Through and prohibitions. Through export regulations import and revision of internal implementation, the systematic and communication, and employee training regulations, awareness among its employeesASEH has improved legal and those of its subsidiaries. to comply with the Company In 2019, ASEH continued and Exchange Act, and Act, Fair Trade Act, Securities regulations governing corporate other major laws and listed companies in Taiwan. W governance in publicly of the aforementioned laws and have not violated any continue to pursue a perfect record regulations and shall all of our business activities. in legal compliance for are required to participate in public regulatory hearings regulatory hearings to participate in public are required on provide feedback agencies and held by government as to gain early insight drafts if necessary, so legislative and priorities. into legislative trends its internal environmental ASEH continued to improve safety legal compliance protection and occupational place emphasis on legal audits in 2019. We also by the technology industry in compliance issues faced protection and the handling relation to trade secret well as on the management of of labor incidents, as with major legislative acts such regulatory compliance Act and the Trade Secrets Act and as the Labor Incident Compliance Inspection Ensuring compliance through cross- departmental internal audits or external audits Developing an inventory of applicable laws and regulations adopted in the countries where ASEH's primary operations exist Identify the Laws and Regulations

3.6 Regulatory Compliance 3.6 Regulatory ASEH’s Group Chief Administration Officer was appointed a officer through corporate governance as the chief Meeting on June 21, passed at the Board resolution the inherent duties of the position, 2019. In addition to for supporting the Board on legal he is also responsible and supervising legal compliance compliance matters corporate legal department at all subsidiaries. The to establish standards to cooperates with all subsidiaries departmentlegal corporate The compliance. legal identify the timely updating of regulatory is also responsible for effective management of highrequirements and ensuring of potential risk impactsrisks issues through identification parallel, relevant departments by each subsidiary. In Regulatory Compliance Process

INTEGRITY AND ACCOUNTABILITY 49 3.7 Information Security Management

Information Security Policy and Organization

The ASEH Information Security Management Committee was established by the ASEH Board of Directors’ Corporate Sustainability Committee (CSC) to ensure corporate governance in response to the company’s acceleration towards 50 smart manufacturing. The Committee is dedicated to enhancing information security, preventing and mitigating INTEGRITY AND ACCOUNTABILITY information security threats and risks by developing strategic plans for information security, establishing benchmarks for information security maturity assessments, promoting information security risk management in ASEH subsidiaries, and coordinating internal and external technologies, resources and information. The ASEH Information Security Management Committee is headed by the chief information security officer, who is responsible for establishing the information security management framework, regular reviews of all ASEH subsidiaries’ information security management and incident response plans, and the submission of the information security governance report to the Board of Directors in the last quarter of each fiscal year. ASEH is committed to corporate sustainability and has formulated itsInformation Security Policy https://www.aseglobal.com/en/pdf/2020_ASETH_ISMP_EN.pdf as the foundation on which its corporate management practices are built to ensure the security of the information assets of the company, employees and suppliers.

ASEH Information Security Management Committee

Board of Directors Committee Chair Richard H.P. Chang, Vice Chairman

Chief Information Security Officer Dtuang W, Chief Administration officer

Executive Secretary Corporate Sustainability Department

ASE Group SPIL Group USI Group China Other Regions (Information Security (Information Security (Information Security Information Security Information Security Team) Team) Team) Platform Platform RTT R PROTECT TT DETECT CSF NIST IDENTIFY 5.0 4.0 3.0 2.0 1.0 0.0 ITIF I ITIF RESPOND RECOVER RS RS Second step The organization evaluates the maturity of each control field according to the Cybersecurity evaluation framework and confirms the current Cybersecurity control maturity. ASEH Summary Scores Cyber Security Resiliency Cyber Security RR R Maturity Assessment Assessment Inherence Risk Result and Improvement First step Third step Analyze the status of the organization in Cybersecurity and the differences in Cybersecurity management objectives, and assist the management in planning follow-up activities, Based on the Cybersecurity assessment tool, the Based on the Cybersecurity assessment tool, the organization determines the overall inherent risk level of the organization based on the nature and direction of the organization’s business, with regard to digital channels and the development status of electronic services.

Key Thinking of Security Trends: Continuously Operating Cybersecurity Evaluation Framework Key Thinking of Security Trends: As a multi-international company with leading edge IC assembly, testing and material technologies, it is especially it is especially and material technologies, IC assembly, testing with leading edge company As a multi-international maturity assessment information security and flexible highly integrative, compatible for ASEH to adopt a important obtaining the ISMS Scientific Industrial, and Universal subsidiaries - ASE Kaohsiung addition to our major model. In of Standards ASEH adopted the National Institute management systems) ISO 27001 certification, (information security a competency assessment tool. The NIST CSF combines Cybersecurity Framework (CSF) maturity and Technology (NIST) of and framework for continuous assessment standards to create a risk-based management model with global open - Identify, framework organizes its core into five functions organization’s information security. The improvements to an maturity, the organization’s information security and Recover, which are used to assess Protect, Detect, Respond regular improvement plans. planning for internet security and execute promote comprehensive on these categories and 108 subcategories. Based major functions are broken down into 23 The NIST CSF’s five cyber- the company’s attributes, technologies, an assessment table that cross-references categories, ASEH designed assessments of major subsidiaries’ performance. ASEH also carried attacks and cyber-threats, to conduct comprehensive security maturity, and integrated information security legal compliance into out industry benchmarking on information information protection and control, and the group’s auditing system. its supply chain security management, internal Information Security Maturity Assessment Security Maturity Information

INTEGRITY AND ACCOUNTABILITY 51 Cyber Security Resiliency Implementation and Protection of Information Security

To ensure business continuity in the company’s enforcement of its information security policy and client and spares no effort in the training of information operations and business activities, ASEH conducts an privacy protection measures. In the event of a sudden security personnel and establishing back-ups. Through annual disaster recovery drill to mitigate the risk of service external cyber-attack, representatives of ASEH subsidiaries the deployment of information security regulations and 52 standards, we aim to continue the integration of our disruptions caused by impacts from major crisis events immediately convene to exchange technical information, INTEGRITY AND ACCOUNTABILITY to the company’s information systems. The drill plan update and discuss responses and countermeasures. management systems and technology, and to foster the includes the task team organization chart, scope, time, External experts on information security are also invited comprehensive development and improvements of our critical information systems, participating departments, to these meetings to conduct reviews and analyses. This information security management. In parallel, by assuring participating personnel and their tasks, recovery proactive approach, coupled with the prompt analysis our supply chain partners and stakeholders of the personnel, steps and procedures, resources required, risk and handling of information security incidents, form a robustness of ASEH’s information security infrastructure, we are helping to ensure that the company's future management, and post-drill review and improvements. comprehensive information security safety net. The drill prepares the company for prompt disaster and competitive edge are secured in the era of smart response to ensure the continuous operation of In addition to mitigating the company’s operational manufacturing. information systems in times of crisis. To ensure that risks from a corporate governance standpoint, raising appropriate management procedures will be observed our employees’ information security awareness and by employees in the event of an emergency, ASEH has enhancing the company’s operational capabilities play a established procedures for the reporting and handling major part in ASEH’s information security management of information security incidents. The procedures allow policies. All ASEH employees participate in the company’s employees to report any security incidents to ensure annual Proprietary Information Protection (PIP) training prompt handling, followed by efficient responses that course, which involves training on information security will mitigate information security risks. ASEH has had policy, management framework, and control measures. no major information security incidents in the past three In 2019, 47,959 employees participated in the PIP years. To maintain its information security capabilities training course for a total of 32,428 training hours. and performance, the company commissions a third- Employees who violate the company’s information party auditor to conduct an annual audit and review security policy are subject to a set of information security of its information security performance, during which disciplinary procedures that also takes into account a vulnerability scan and penetration test are performed the employee’s performance. The preceding measures to ensure that the company’s information systems and reduce the exposure of the company to potential network environment are compliant with the code of penalties and legal liabilities, and lessen impacts on its practice for information security management. ASEH business operations. ASEH is committed to enhancing protects its trade secrets and client data through strict its information security technologies and capabilities,

INNOVATION INNOVATION SERVICE Through to sustainable human development. Innovation is the key lives easier in a product value, makes human innovation, ASEH improves consideration social well-being. We take into careful smart era and elevates in manufacturing - integrating environmental regarding sustainability design stage. As a result, protection and social innovation at a product's and helped customers lower ASEH has produced more efficient products our products, contributing to a their power consumption when using The effects of product usage reduction in greenhouse gas emissions. and efforts have been made to on human health were also considered materials. manufacture products with non-hazardous the environment by ASEH is committed to improving and protecting recycling resources, reducing enhancing raw material usage efficiency, gas emissions, and reducing wastewater discharge and greenhouse strive to develop and promote waste generation and chemical use. We services and manufacturing comprehensive, environmentally friendly impact at various stages processes that consider the environmental procurement, design & of the product lifecycle including raw material use, and product disposal. This development, manufacturing, product environmentally friendly, green has enabled ASEH to provide the most manufacturing services.

INNOVATION SERVICE 53 4.1 R&D and Innovation

ASEH continuously invests in research and development gold bonding wires with ultra-fine spacing and wire address this, ASEH has established a market analysis task ("R&D") of advanced semiconductor packaging internals, and Mobile DRAM. force consisting of internal team of R&D staff, research technology and cultivates experienced and skilled institutions, suppliers, equipment manufacturers and (3) Wafer Level Packaging: Advanced Fan out with engineering teams to meet customers' needs for product customers. Through the task force, the Company is 54 bridge die (HDCL), Fan Out DBG ( Dicing before grinding) performance enhancement and cost reduction. Our able to regularly exchange views on the latest market Technology), CPD wafer with 8 Hi HBM Grinding INNOVATION SERVICE research and development expense increased 23.0% developments with players in the industry, focus on new Technology, Silicon Photonic component technology, to NT$18,395.3 million (US$615.0 million) in 2019, product/technology development to meet emerging Through-Wafer Via, glass substrate panel packaging, compared to NT$14,962.8 million in 2018, accounting market demand, set short-, medium- and long-term R&D hexahedral Wafer Level Chip Scale Packaging (WLCSP), for about 4.5% and 4.0% of operating revenues in 2019 targets, and concentrate its resources on priority projects. Fan-Out PoP Chip product development, and the die-to- and 2018, respectively. As of December 31, 2019, we In 2019, we held 60 seminars with research institutions, wafer fitting process. have an R&D team of 10,768 employees, an increase of 100 workshops with suppliers and equipment 5% compared with 10,283 R&D employees at the end of (4) Advanced packaging and module: low power manufacturers, and 60 technology blueprint alignment 2018. consumption antenna design and packaging, flexible meetings with customers. substrate panel and packaging, dual side thinning Driven by the new wave of 5G, high-speed transmission, ASEH has established a Technology Board consisting of and wireless communication module, and 5G antenna low latency plus AI, the Internet of Things, autonomous experts from a wide range of professional disciplines to packaging product development. driving, and smart manufacturing, the semiconductor achieve horizontal integration and effective technology industry chain strives to move towards a higher system Our research and development teams work closely development through the integration of technology integration level via heterogeneous integration, which with our supply chain partners including material and and knowledge sharing and the creation of a platform enable functional integration enhancement and scale- equipment suppliers to maximize scale and efficiency for in depth analysis and discussions. Furthermore, down technology to go hand in hand to create a more in technology development. We also work closely with we have a "best known method" (BKM) platform that efficient smart networking environment and device. key customers on new product and manufacturing can be accessed globally to encourage employees collaborations. In addition, we collaborate with to share innovative engineering technologies. As of Key products and technologies successfully developed in academic and industry organizations such as the National 2019, a total of 20 manufacturing sites and more 2019 are as follows: Sun Yat-Sen University, National Cheng Kung University, than 4,000 employees have registered on the KM (1) Flip Chip Packaging (FCP): certified manufacturing National Taiwan University, Tsing Hua University, and platform. The platform featured five categories, namely: process for 7 nm and 10 nm chips, the 14 nm/16 nm ITRI on advanced packaging and testing technology "e-OJT, Technology Board, BKM, Green Innovation/ copper-electroplating process/Low-K dielectric FCP development. Climate Change, and Customers/Competitors/Suppliers/ application and silver-alloy wires for hybrid flip chip ball Consultants/Seminar Materials" and contained more than 6,000 technology related data records that had been grid array packages. Technology Platforms viewed more than 20,000 times. ASEH will continue to (2) Wire-bond packaging: the development of second R&D is costly and time-consuming, and choosing the improve the KM platform functions and strengthen the generation advanced embedded component packaging, right products/technologies as R&D targets in the early development of engineering technology to elevate the pressure sensor packaging, the technology of copper/ stages is imperative to bringing the risk level down. To company's competitiveness and development potential. with our customers’ product design and establishing and establishing product design with our customers’ heterogeneous integration premier provider of ASEH as a solutions. Social impact of smart factories ASEH’s adoption of smart factory concepts began with a strong foundation in automation and forms a strategic Collaboration with material and equipment and equipment with material Collaboration smart manufacturing suppliers to achieve OSAT (outsourced semiconductor ASEH is one of the first to adopt smart assembly and test) companies the challenges we have faced manufacturing. Among our manufacturing processes, was the complexity of adopting standard industry which prevented us from It was also difficult to integrate solutions and practices. manufacturing processes at our the diverse range of develop customized software and facilities, leading us to manufacturing hardware in house. To support our smart process, we extended the concept of heterogeneous First, we integration into our procurement procedures. Standards adopted SEMI’s Equipment Communications policy, whereby to establish our equipment procurement with. our equipment suppliers are obliged to comply our smart We then established automation goals for suppliers factories and collaborated with equipment This in the development of hardware and firmware. the automation approach helps local suppliers to develop capabilities necessary to create automated semiconductor for the assembly and testing equipment tailor-made team. Our software developed by ASEH’s automation our adoption material suppliers are also key partners in of of smart manufacturing. Through the standardization we further 2D barcodes for substrates and lead frames, manufacturing enhanced the traceability throughout our products in processes, allowing customers to track their real time. Industry 3.9—Connecting seamlessly with seamlessly with 3.9—Connecting Industry product design customers’ processes of our manufacturing Digital transformation customers and their to bridge the gap with enable us factory blueprint, To realize our smart design process. three major areas - automation, we have focused on in machine and production heterogeneous integration integration in SiP systems, and heterogeneous deployment of AI, Big Data and miniaturization. The optimized our manufacturing cloud computing have and analyze problems, self-adapt processes to identify In 2011, we established the ASE and initiate solutions. the company’s foundation for CIM Committee to build for smart factories began automation. Our planning end of 2019, we have already in 2015, and by the to increase established eleven smart factories. We plan which will the number to eighteen by the end of 2020, bumping, flip house manufacturing processes in wafer packaging chip packaging, SiP packaging, wafer-level and wafer probing. 3.5 In 2018, we have implemented the Industry Industry 3.7 ‘centralized monitoring’, followed by the significant ‘Big Data-driven design’ in 2019. These are 4.0 that milestones in our progress towards Industry quality enabled us to achieve a near-zero defect enhance environment, shorten production cycles and gain a production efficiency that help customers also increased competitive edge in the market. We have on-the- the value of our human capital by providing to transition job training for manufacturing employees Through to remote positions in facility control rooms. number of digitization, we were able to increase the to equipment operated remotely from twenty-four with ninety. Employees benefit from such productivity improved wages as well as a safer working environment. We are now working towards achieving Industry 3.9 by connecting our manufacturing processes seamlessly

Achieving heterogeneous integration heterogeneous Achieving and driving smart manufacturing through through innovation social changes

The extensive application of artificial intelligence in The extensive application more chip integration that combines healthcare is driving such as sensors, microprocessors, different functionalities to process biometric data and controllers and MEMS environment. The technological monitor the surrounding healthcare solutions will greatly development in smart As improve healthcare quality and human well-being. and test the world’s largest semiconductor assembly integration company, ASEH is a leader in heterogeneous technology to and is providing customers cutting edge miniaturized design and manufacture high-performance chip solutions. Besides healthcare applications, packaging heterogeneous integration in semiconductor automotive, will spur growth in other fields such as the aerospace and defence industry. efficient Multi-functionality, high performance, energy small and highly integrated features on an increasingly chip form factor continue to drive smart technology a proprietary design trends. At ASEH, we have developed design kit SiP-id™ (System-in-Package intelligent design) package-, that aggregates the requirements of wafer-, automated and system-level design into a unified and in flow, enabling customers to overcome challenges and accelerate product design, shorten time to market, SiP- the development of innovative product applications. of design id also helps designers reduce the number iterations and improve throughput, that will vastly shorten the time needed to design and verify ultra- complex SiP packages. Social innovation through heterogeneous Social innovation integration Smart Factory

INNOVATION SERVICE 55 approach to advance heterogeneous integration by digitally connecting customers, suppliers and our manufacturing systems. The creation of business value from ASEH’s smart factory development has helped to drive semiconductor industry growth and innovation, as well as uphold the extension of Moore’s Law. The smart factory is also accelerating ASEH’s digital transformation and has helped ASEH increase human capital value, lower employee overtime and reduce occupational hazards; resulting in a reduction in social costs by approximately NT$300 million. We collaborated with our suppliers to develop software and equipment tailor-made for our semiconductor assembly and testing facilities, 56

generating revenue of approximately NT$2 billion for our equipment suppliers and NT$660 million in local procurement. INNOVATION SERVICE ASEH’s smart manufacturing has positively impacted our customers, helping them seize new business opportunities and develop innovative applications that provide greater benefits and convenience to society.

The impact of ASEH smart factories

Generated approximately NT$2 billion in revenue for the smart manufacturing supply chain Created 269 jobs in the supply chain Procurement Generated NT$660 million in local procurement, facilitating economic development

Increased the value of our human capital through upskilling in automation and AI for 400 employees Accelerated ASEH’s digital transformation in manufacturing, lowered employee overtime, resulting in a reduction of social costs by approximately NT$300 million Manufacturing Reduction in occupational hazards by incorporating workplace safety measures

Enabled customers to develop innovative product applications, that provide greater benefits and convenience to society Improved product yields shorten time to market, helping customers develop new markets Customer service Revenues generated from smart factories amount to over NT$10 billion

Note 1: Employee overtime was calculated using accumulated data since the adoption of digital transformation until the end of 2019. We referenced data from the Eco-costs database to analyze the reduction in risks to health damage due to a reduction in overtime and work hours from the implementation of factory automation. The data was converted into monetary value according to OECD (Organization for Economic Co-operation and Development, 2012) guidelines. Note 2: The amount of revenue generated and the number of jobs created in the supply chain were calculated using input-output analysis (IOA). In our calculation, we used the data from the OECD Input-Output Tables and the EXIOBASE 2 database as references and assumed that all suppliers are based in Taiwan. hands-on. It also has an off-line practice mode for It also has an off-line hands-on. employees with to hone their skills. Even new hires maintenance can learn to perform zero experience with efficiency after complex machine on a relatively AR tutorial on their the corresponding completing tablet computers. Automated Guided Vehicle (AGV)+Robod Conveyer OHT s requirements, including ’ Augmented Reality (AR) Equipment maintenance training can now be Equipment maintenance training can now technicianvirtual A reality. augmented with conducted of the guides rookie engineers through every step maintenance and repair process using AR technology to enhance the learning experience with audiovisual cues and interactive tasks. AR training allows trainees to feel as if they are working on the equipment IPdM utilizes statistical and dynamic methods to statistical and dynamic IPdM utilizes and reduce the overfitting of simplify the database feature extraction and selection. predictive models for multiple regression Through data classification, modeling, the root cause of analysis and time series identified and when the next a failure can be quickly occur can be predicted. With breakdown is likely to can be informed of when andIPdM, maintenance staff might arise and move proactively what types of issues unplanned downtime, to solve them, thus avoiding preventing financial losses due to unsatisfactory of product quality, and improving the productivity manufacturing equipment. processesAutomated Packaging Lines adjust workflow according to each customer label the automatic transfer of materials, weighing, printing, label verification with a CCD (charge-coupled package device) sensor, packing, inventory taking, delivery. The sorting, and finally, sealing the box for in entire automated process increased the efficiency the same the packing and shipping logistics and at time, improved workplace safety for employees. in an accurate and efficient way. The system and efficient way. in an accurate in the use of increases the efficiency significantly and labor. space, time • Training with Equipment Maintenance • Lines Automated Packaging • (IPdM) Predictive Maintenance Intelligent troduced in 2019: troduced retrieval system that is capable of monitoring retrieval system that is capable of monitoring finished products and in-process inventory to maximize space utilization such that the inventory is processed on a first-in, first-out (FIFO) basis navigating delivery vehicles, thereby allowing navigating delivery vehicles, thereby allowing across the processing or loading/unloading tasks is the various manufacturing processes. The result across integration of automatic material-handling manufacturing lines and elimination of repetitive for and tiresome tasks that free up employees more valuable work. dispatching system and elevator controllers to dispatching system and elevator controllers allow optimized arrangement of the schedules and routes of autonomous vehicles to transport goods between different floors. These vehicles recharge automatically and can run uninterrupted is ideal for up to 24 hours on a full charge, which across for consolidating manufacturing processes different floors. system to prioritize manufacturing lot orders, prioritize manufacturing system to system (MCS) to manage and a material control handling. MCS and monitor the material wafer transport system coordinates with the system (MES) and manufacturing execution to the designated to transport wafer cassettes line by overhead storage facility or production The new system dramatically hoist transfer (OHT). increases the overall reduces wait times and logistics. efficiency of transport

(4) We have implemented a smart automatic storage (3) We have installed machine arms on self- (2) We have integrated the MES with the vehicle (1) dispatching a real-time We have implemented

Automation Technologies in Technologies Automation • System (IMHS) Material Handling Intelligent

INNOVATION SERVICE 57 Intellectual Property Management

Intellectual property (IP) is an important aspect of U.S. patents, 1,545 P.R.C. patents and 33 patents in a company’s innovation management. Effective IP other jurisdictions. These patent portfolios cover various management helps to maintain ASEH’s leading position semiconductor packaging technologies and electronic in corporate innovation. manufacturing technologies. In addition, as of January 58

31, 2020, we also had a total of 1,473 pending patent INNOVATION SERVICE ASEH's IP management is closely embedded into its applications including 154 in Taiwan, 503 in the United overall business operation planning and implementation States, 786 in P.R.C. and 30 patents in other countries. to form a continuous innovation cycle consisting of "business opportunity", "R & D" and "IP management and utilization". The innovation cycle includes the following ASEH Intellectual Property Management three phases:

1. Research and development activities are conducted in To use IP To ensure response to market's prospective demands, to ensure to facilitate that the R & that the R & D activities are linked to key business business D activities benefits are linked to opportunities. key business opportunities 2. Through our effective IP application system and tools, R & D activities are carefully recorded and processed Business for intellectual property rights protection (e.g. patents, Opportunity trademarks and trade secrets).

3. High-value IP helps to facilitate business success, obtain orders from customers, develop more new business opportunities, thereby creating a positive IP sustainable cycle. In addition, by protecting R & D Management R & D achievements with intellectual property rights, an & Utilization IP protective wall is established to prevent others from plagiarizing ASEH's technologies and to defend against the threat of competitors with their intellectual To ensure that R & D property. activities are recorded and protected by laws As of January 31, 2020, we hold and maintain a total of 5,707 patents including 2,440 Taiwan patents, 1,689 concept. Hazardous concept. Hazardous ’ Hazardous substance management Green Procurement Use only DRC conflict- free minerals from reliable sources to achieve the objective of a supply chain without any conflict procurement Sustainable Procurement do more with less do more with ‘ Process simplification Adopting recyclable component designs Sustainable Manufacturing Increasing the efficiency of materials and components Increasing the efficiency of materials and components Increasing manufacturing efficiency Reducing GHGs emissions and use renewable energy Reduce water consumption and wastewater discharge Reducing waste and recyclable Design Sustainable product value) Do More with Less impacts while increasing (Reducing environmental Logistics Sustainable Packaging and Usage Low power consumption Low power consumption High packaging density Less materials Material Sustainable Select materials compatible with environmental ecology and low carbon emission Search for materials to substitute for hazardous substances. Reduce product packaging and wastes Use recyclable packaging materials Optimize delivery routes and increase delivery load Adopting greener transport alternatives

Evaluation of non-toxic or low toxic product raw materials Evaluation of non-toxic or low toxic product raw and process chemicals. Establishment of monitoring technology, mechanism and standard, compliant with world environmental regulations. reduction chemicals or raw materials; evaluate recovery, and and reproduction technologies for waste, wastewater chemicals. bio-composite packaging materials. that are used in manufacturing. that are used in manufacturing. and energy efficient. wastewater greenhouse gas emissions, waste generation, effluent and chemical usage.

Green Laboratory Our green laboratory is dedicated to the following: • Evaluation and development of green materials: • Development of environmental testing technology: • Development of Green Process: Improve utilization rate of • Development of Environment-Friendly Packaging: Develop Sustainable Manufacturing Declaration Sustainable Manufacturing ASEH is committed to: • with all applicable laws and regulations. Complying • hazardous substances in parts and materials Managing • Providing product solutions that are compact, lightweight • Continuously enhancing resource recycling, reducing • Reducing product packaging and wastes. ollow international guidelines like the IECQ QC 080000, the IECQ QC 080000, guidelines like that follow international regulations and standards ASEH has established manufacturing and part of sustainable management is an integral substance At the same time, friendly solution. a complete environmentally requirements to provide adhere to customers' Directive as well as Products Energy Star, EU Energy-related ROHS, REACH, and testing techniques, green at the source, to develop green materials we identify areas of improvement beginning testing and R & D at our green laboratory, through extensive analysis, and eco-friendly packaging materials. manufacturing processes and adopted the principles and adopted manufacturing formulated five sustainable impacts, ASEH has mitigate environmental product life cycles and To manage 4.2 Sustainable Manufacturing 4.2 Sustainable

INNOVATION SERVICE 59 Sustainable Manufacturing Related Projects

Implementation strategies Details  Selection of materials with low □ Replaced chemical agents with viable alternatives environmental impact Materials □ Recycled waste epoxy molding compound to produce SiO materials  Innovative development of materials 2 □ Recycled waste phenolic resin to produce activated carbon from recycling 60

□ Designed a wireless IoT communications module for the development of a new generation of energy INNOVATION SERVICE  Use of products with low power outputs Design efficient products  Use of high-end packaging technologies □ Improved manufacturing technologies and product functionality while driving down material costs  Improvements to energy efficiency □ Introduced system-wide intelligent controls; reduced gas emissions throughout the manufacturing  Recycling and reuse of chemicals process (eg. 40% reduction in nitrogen consumption) Manufacturing  Internal recycling and reuse of □ Recycled and reused organic compounds such as cyclopentanone and propanone equipment and components □ Improved the design of equipment and components to extend their life cycles □ Recycled and reused packaging/buffer packing materials such as PE plastic bags, wafer-level packaging, foamed plastics, etc.  Recycling and reuse of packaging □ Recycled and reused plastic pallets materials Packaging and □ Reduced reliance on carton by reusing corrugated carton and logistic crates  Use of simplified packaging logistics □ Phased out poly foams with high environmental impact  Selection of low-impact materials □ Deployed electric transport vehicles  Adoption of green logistics □ Adopted transport alternatives with lower carbon emissions (replaced air freight with ocean ship services)

In 2019, ASEH invested NT$11.5 millions to promote large-scale environmental sustainability projects through industry-university cooperation, which deliver notable contributions to our 2020 environmental targets on reducing water withdrawal (4 related projects) and reducing hazardous waste (2 related projects).

Product Life Cycle Assessment

ASEH has been gradually adopting ISO 14067 (carbon footprint) and ISO 14005 (eco-efficiency) standards as references to assess the environmental footprint of the company’s operations and product life cycle, and in an effort to increase the value and raise the green standards in our products.

As of the publishing of this report, ASEH has completed a comprehensive assessment of five of its major packaging product lines (BGA, Lead Frame, CSP, Flip Chip, and Bumping). In 2019, the Company performed an in-depth analysis of substrates with significant environmental impacts based on its internal research findings on IC packaging. Results of the analysis helped the Company identify key materials in the various stages of these substrates’ life cycles that were potentially harmful to the environment, which then led the Company to reduce its reliance on these materials and search for viable alternatives. ASEH will continue to perform product life cycle analyses for a broader range and depth of products. The Company is also planning to launch a database for carbon footprint management in order to prepare itself for the research and development of low-carbon products.

ASEH also provides customers with manufacturing-related services to help them develop energy efficient products including wireless communication modules, point-of-sale (POS) machines, ATX multi-rail power supply units, motherboards, smart handheld devices, NAS systems, SSDs and server systems. Dual-stage product impact assessment simulations were used to analyze product performance at the end-user with the information used by product development to develop energy and carbon saving products that will reduce greenhouse emissions. ● ● ● ● ● ▲ ● ● NA NA Eco-efficiency Plan NA Not evaluated ● ● ● ● ● ▲ ● ● ● ● Complied ▲ ● Carbon footprint using renewable energy. and low carbon emission environment, such as use of boron-free developers. and social incorporate the concepts of product recycling marketing return on investment; enhance the sustainable provide a of products; increase brand competitiveness to complete assessment of product sustainability. and low carbon emission • Replacing gold wires with copper wires. • Optimizing energy efficiency during manufacturing and • ecology environmental with compatible materials Selecting • Reducing polluting emissions and impact on the • Performing dual-stage product impact assessments; • design of products Strengthening green and energy-saving • ecology environmental with compatible materials Selecting • Optimizing energy efficiency during manufacturing. • Increase the rate of recycling • Achieve maximum adoption of renewable energy • Improve product durability • Increase service intensity • Recommendations for Improvement Products • Decarburization • Dematerialization 4G dual-band communications module 4G dual-band communications XnBay smart server SIP BGA package Chip Scale Package(CSP) Flip Chip package Bumping Leadframe package Leadframe         Gold wire was approximately ：gold potassium cyanide, ：integrated circuits, ceramic ：Solder paste (lead-free) ： Type IC Packages Substrate Testing Service End Product agents Action plan: • Reduce material use intensity • Reduce energy intensity • Prevent the dispersion of harmful environmental • Assessment Result Life cycle assessment Life cycle the manufacturing process. oxygen-free copper, urea-formaldehyde boards, and NaOH the manufacturing process. six times that of copper wire. the manufacturing process. substrates, and iron frame exhibited. the manufacturing process. • Negative impact of material • Significant environmental impact: Electricity purchased for • Negative impact of material • Negative impact of material • Negative impact of material • Significant environmental impact: Electricity purchased for • Significant environmental impact: Electricity purchased for • Significant environmental impact: Electricity purchased for cycle stages Estimated energy efficiency across product life based on Energy Star standards Y2017：64,841,852 kWh. Y2018：38,847,948 kWh. ) ) ↓ 103,670 ↑ (Value) 63,000 (Imapct) ase its product value while Product 70,000 ↑＝ 2016 2017 2018 2019 62,000 Substrate BGA Communication modules Bumping Sales management systems, Network storage systems, Smart handheld devices, WiFi modules, Motherboards and Solid-state drives e 2 Eco efficiency

Year 80,000 60,000 40,000 20,000

ton CO 120,000 100,000 Reduction Assessment of The Product Usage Stage Assessment of The Reduction lessening environmental impacts. ASEH is looking to incre 2019 2016 2017~2018 Smart Manufacturing

INNOVATION SERVICE 61 4.3 Products and Services

ASEH provides the design, manufacturing and enabling communication. We provide multidimensional of many electronic end products, including smartphones, communication channels for customers such as technical PCs, tablets, game consoles, security chip cards, forums and regular email updates to customers on automotive sensors, entertainment systems and many significant company events, milestones and business 62 more. We offer a broad range of advanced and legacy highlights. We actively participate in various industry INNOVATION SERVICE semiconductor packaging and testing services as well as events to allow customers to understand our advanced electronic manufacturing services. The semiconductors technology through presentations and forums. we package are used in a wide range of end-use Our "Customer Satisfaction Survey" includes a section to applications, including communications, computing, find out customers' rating on our subsidiaries' QCDST and consumer electronics, industrial, automotive and (Quality-Cost-Delivery-Service-Technology), as well as other applications. Our testing services include front-end their opinions on ASEH and our subsidiaries' corporate engineering testing, wafer probe, final testing and other sustainability. The survey results are integrated into our related semiconductor testing services. Our electronics TQMM system (Total Quality Micro-Management System) manufacturing services are used for various applications, to help management and employees to continuously including computers, peripherals, communications, improve customer satisfaction. industrial applications, automotive electronics, and storage and server applications. Customer Satisfaction Trend Customer Service 100% Our key customers typically operate in the semiconductor and electronics industries. Our five largest customers 92% 92% 91% together accounted for approximately 46.4%, 46.2% 90% and 51.1% of our operating revenues in 2017, 2018 and 90% 2019 respectively. To achieve total customer satisfaction, we uphold world-class quality and reliability for our products and services through thoughtfully defined 80% quality assurance methodologies. Our quality assurance systems impose strict process controls, statistical in-line monitors, supplier control, data review and management, 70% quality controls and corrective action systems.

To ensure that customer suggestions are properly delivered and processed, we have a dedicated team in 60% place for reporting feedback and customer 2016 2017 2018 2019

ASEH is committed to improving our eco-efficiency and to improving our eco-efficiency ASEH is committed by continuously enhancing protecting the environment gas resources recycling, and reducing greenhouse effluent, and emissions, waste generation, wastewater chemical usage. a environmental ASEH strives to develop and promote concept in all friendly manufacturing and service procurement, facets of its enterprise. From material and disposal, we design, manufacturing, product use impact factors conscientiously incorporate environmental green and low carbon at all stages of life cycle to provide manufacturing services. GREEN GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 63 20 Key Performance 19

64 Listed on the Leader Listed on CDP Global Stakeholder Financial Risk Renewable electricity A annual CDP A List Board Supply Chain Report engagement on and Opportunity 14 % accounts for 14% GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION for the third time Leader Board for two Climate Change and Assessment from of total electricity CDP CDP consecutive years Water Risks climate change consumption

100% 330 energy saving Simulation of water Launched a second Received 26 green greenhouse gas 599,833 and carbon reduction risk assessments issue of green building, and 12 green 100% MWh emission verification projects implemented under various 2 bonds 26 factory certifications and climate change resulting in 16.7% scenarios risk assessment electricity savings

2019 Material 2019 SDGs Business Action KPI 2019 Target Status 2020 Target 2025 Target Aspects Performance

• Develop and implement holistic water strategies that are socially equitable, Water Resource Water withdrawal intensity 4% reduction Achieved 5.3% reduction 5% reduction 10% reduction environmentally sustainable, and Management (Water withdrawal/revenue) compared to 2015 compared to 2015 compared to 2015 compared to 2015 economically beneficial within the scope of our operations and supply chain Number of days of production • Protect and/or restore aquatic shutdown caused by Phase III Water Resource water rationing at Taiwan’s 0 days Achieved 0 days 0 days 0 days ecosystems surrounding our Management facilities (water supply reduced by operations and supply chain 30%) Significantly increase energy efficiency, procure remaining energy needs from Energy Energy saving ratio from energy 2% of total 16.7% of 2019 2% of 2020 power 2% of 2025 power renewable sources, and promote the Management saving and carbon reduction 2019 electricity Achieved power needs needs needs same practices across the supply chain projects consumption Develop and implement business models to deliver sustainable energy Energy 9% of total 14% of total 12% of total 27% of total and energy efficiency technologies to Management Renewable electricity ratio 2019 electricity Achieved 2019 electricity 2020 electricity 2025 electricity new markets and communities consumption consumption consumption consumption

• Design and adopt a responsible, Non-hazardous waste recycling 90% Achieved 92% 90% 90% circular business model rate • Shift to a portfolio of goods and Waste and services that require and promote Circular Hazardous waste intensity 4% reduction 29% reduction 5% reduction 10% reduction resource efficiency and negligible (Hazardous waste output/ compared to 2015 Achieved compared to 2015 compared to 2015 compared to 2015 waste output revenue)

Substantially reduce emissions from our GHG intensity (GHG emissions/ 4% reduction 15% reduction 5% reduction 10% reduction operations and those associated with revenue) compared to 2015 Achieved compared to 2015 compared to 2015 compared to 2015 our supply chain, in close alignment Climate Change with climate science studies GHG verification 100% Achieved 100% 100% 100% responsibility Fulfill corporate social Fulfill corporate Implementation outcomes Implementation the management framework the management Establish low-carbon strategies Establish Include low-carbon strategies in Include low-carbon 1 2 3 4 5.1 Climate Leadership 5.1 Climate Milestones change and The four major milestones in ASEH’s climate low- energy resource management are 1) formulating into carbon strategies, 2) integrating these strategies these the management framework, 3) implementing outcomes. strategies, and 4) assessing implementation low carbon ASEH’s climate leadership stems from bringing balancing solutions to the global market and, through targets operational growth and low-carbon transformation change and that meet stakeholders’ expectations. Climate of challenges energy resource management present a host policy, and opportunities, and developments in climate natural disasters technology, and decarbonization as well as response to can drastically impact ASEH’s operations. In change, the public’s rising concerns regarding climate adaptation businesses must put an equal emphasis on for and mitigation. ASEH has set an excellent example strategies, the industry by establishing clear low-carbon to introducing international management standards responsible strengthen its internal control systems, taking and bring actions to improve current business models and assessing positive change to its value chain partners, implementation outcomes. To that end, ASEH is better able to make informed strategy revisions, align corporate values with business practices and connect the four major milestones into a coherent framework. Gap analysis Enhancement plan Sites report Data collection Performance evaluation Follow-ups & Improvements Performance Measurement Taskforce Environment and Green Innovation Green solutions Sustainable design Sharing platform Common but differentiated responsibility Maintaining flexibility Exemplary Dissemination Target Setting

Global economic development is gradually decoupling from carbon emissions due to a rapidly evolving market due to a rapidly from carbon emissions is gradually decoupling development Global economic scrutiny on resource degree of stakeholder models. An increasing and business that impacts companies environment business practices. of pressure on existing raised the level issues have, in parallel, and climate change conservation but it has also industries and governments services, businesses, to products, has posed challenges Climate change change is a market alliances. Climate the formation of strategic new markets, and opportunities and unlocked new to market needs. disruption through measured responses is in a leadership position to harness this disruptor, and ASEH on Climate the United Nations Framework Convention Goals 2025, we have adopted To achieve ASEH’s Environmental to drive our differentiated responsibilities (CBDR)" concept FCCC) guidelines and the "common but Change (UNFCCC or Under the to their operation scale and capabilities. targets drawn up in accordance facilities to submit management by tracking each facility’s progress is monitored Environment and Green Innovation Taskforce, supervision of the CSC a Green waste, etc. We have also established of power consumption, water withdrawal, the performance dashboard material new product development, such as minimizing to promote sustainable design in Solutions Sharing Platform achieving supervising hazardous substance; selecting materials with low carbon footprints; usage; developing and knowledge process; and sharing management-related resource efficiency in the manufacturing higher energy and water to address We actively encourage our employees waste products and gas emissions. and practices in manufacturing, improve the company's environmental performance. environmental sustainability issues and jointly

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 65 Four major milestones Principal Methodology Integrated carbon management: establish a comprehensive carbon management strategy, policy and system based on energy saving, green energy and energy storage, to reduce carbon emissions. Green and renewable energy investment: establish strategies on green and renewable energy investment, reduce environmental external costs, and seize green Establish low-carbon business opportunities. 1 strategies Low-carbon products and services: establish feasible carbon-reduction projects. Adaptation and resilience: Identify vulnerabilities to climate change and develop adaptation strategies. 66 Create a sustainable culture: Cultivate a "green" corporate culture and become a leading low-carbon solution provider. GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION Include low-carbon strategies Manage climate-related risks and opportunities within ASEH’s enterprise risk management (ERM) framework by adopting the recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD is formed by the Financial Stability Board). Systematically manage climate change uncertainties combined 2 in the management with outcomes from situation analyses and simulation, and control these risks within acceptable parameters, so as to protect and advance the company’s overall framework interests.

For substantial financial impacts, the results from top-level management reviews are used to devise concrete measures Planning and financial plans to respond to potential risks and business opportunities. strategies

Calculating From the parameters defined through scenario analysis, selected data estimation methods are used to measure financial impacts the scale and calculate the financial impacts of risks and opportunities. From the identified critical risks and opportunities, each facility will set its climate change scenario analysis Fulfill corporate social 3 Defining climate-related methodology to simulate various parameter changes in the future to determine management or financial responsibility scenarios areas that are likely to be impacted. Climate-related risk and opportunity issues are selected based on global trends and industry characteristics. A standardized method is established to assess the rate and extent of impact, in Identifying risks and opportunities addition to drawing out a risk and opportunity matrix to identify the sources of risks and opportunities with significant influence on management.

Analyzing TCFD framework and indices The contents of the TCFD framework and indicators are analyzed to strengthen response strategies.

Adaptation: Mitigation: Strategic and financial planning: Assess the water risk at ASEH facilities Introduce ISO 14064-1 and ISO 50001 for Continue participation in DJSI and CDP Investor worldwide to identify areas of water stress greenhouse gas emission reductions and Survey on Climate Change and establish adjustment roadmaps energy conservation Establish a long-term blueprint for value chain Construct new factories1 according to green Trial participation in the Science Based Targets partnerships and participate in Apple’s Supplier building standards, establish potential flood (SBT) initiative for carbon footprint reduction Clean Energy Program to increase the use of 4 Implementation outcomes analyses and emergency response measures Purchase renewable energy and renewable renewable energy A smart grid was established to meet internal energy certificates (RECs); invested in solar Stakeholder engagement regarding climate energy needs and prevent power rationing power equipment to develop green energy change and water risk from causing production losses at our facilities Improve energy efficiency, promote energy Quantify financial impacts of climate change Establish a supplier sustainability management saving and water recycling and reuse risks and opportunities process, conduct risk assessments, green programs3 2 Launched second green bond issuance of US$ procurement and product reuse 300 million in October 2019

1 Management costs, please refer to Environmental Expenditures and Investments > Operating Costs > Resource Circulation Costs. 2 Management costs, please refer to Environmental Expenditures and Investments > Upstream/Downstream Costs. 3 Management costs, please refer to Environmental Expenditures and Investments > Operating Costs. Metrics and Objectives Metrics and s carbon footprint. ’ change-related strategies and risk management procedures strategies and risk change-related and performance related risks and opportunities waste produced per unit of revenue generated were used as waste produced per unit to measure the risks and impact indicators for the company of using internal carbon of its operations; the feasibility was evaluated. pricing to lower said risks The constitute the risk posed from direct energy emissions. assessing risk of indirect energy emissions is calculated by which the increasing rate of renewable electricity use, increases operating costs. For other indirect upstream/ carbon downstream emissions within current risk controls, to reducing a reduction is negligible and hence, a hindrance product products reduction targets were developed; more efficient to lower carbon emissions have been designed. a. to assess climate used by the organization metrics The b. related risks Greenhouse gas emissions and c. organization to manage climate change The targets used by a. used, and resources emissions, energy Greenhouse gas b. laws The fees and taxes on fossil fuels imposed by relevant c. Greenhouse gas, energy resource, water resource, and waste s stakeholders and senior management on these issues. ASEH s stakeholders and senior management on ’ Risk Management related risks related risks climate- assessing, and managing organization's the into risks related overall risk management climate that are used to identify change risks and opportunities forms are revised annually. Said and documents are regularly distributed to sites worldwide for them to assess their own risks. identification are presented in the CSC meeting for relevant committee members and task forces to work out response measures. operational risks are consolidated in the ERM system to be identified, evaluated, and managed regularly according to standard operating procedures. a. change and assess climate Identify b. Process for managing climate- c. for identifying, Integrate processes a. and forms Various documents b. The results of risk and opportunity c. and various Climate change Organizational Response Management Organizational Response C, Nationally ° Strategies s core values. This was the first-ever combined internal and external survey we have conducted to assess the types of effects including s core values. This was the first-ever combined internal and external survey we have ’ change-related risks and opportunities change-related operations, strategies opportunities on organization's and financial planning scenarios different climate-related than three years, mid-term as term is defined as less long-term as more than five three to five years and mainly come from cost of raw years. Short-term risks renewable energy material, existing and emerging extremeregulations, and the frequency and intensity of of weather events. Mid-term risks include the cost GHG emissions, investment and transition to low- carbon technology and changes in customer behaviour and preferences. Stigmatization of sector, low-carbon market economy transition, and incremental changes risks. in climate parameters are classified as long-term supply chain, customers, research and development, and adaptation and mitigation measures. Our the strategy is impacted by resource limitations and search for sustainable strategy partners to optimize semiconductor industry value. Major areas impacting cost, our financials include revenue, management capital acquisition, and assets and liabilities. as Determined Contributions (NDCs), and Business Usual (BAU), are adopted to perform simulation analysis of transformational and physical risks. b. risks and Determine impact of climate change-related c. of organization's strategies under Assess the resilience b. Areas impacting operations include products, services, c. 2 of climate scenarios, Three types a. climate long-term and short-, medium- Identify a. targets, short- management timeline According to our Risk Governance change-related risks and change-related opportunities assessing and managing risks climate change-related and opportunities

The CSC is the highest organization level in and sustainability management comprised of top management executives who also serve as members of the board of directors. The Environment and Green Innovation Taskforce under the CSC is responsible for environmental protection and climate change-related issues. (Please refer to 2.1 Organization and Structure for details) a. oversight of climate Board's b. in Role of management conducted a questionnaire survey on climate change and water risks targeting external stakeholders and internal senior executives. The results of the survey will enable the company to company the enable will survey the of results The executives. senior internal and stakeholders external targeting risks water and change climate on survey questionnaire a conducted the differences in their perspectives on the level of impacts risks at the corporate level through the analysis of the responses and exploring reinterpret the meaning of climate change to ASEH. of ASEH as well as knowledge of environmental risk management. Participants included The selection criteria of the participating stakeholders were based on their understanding and a small selection of employees. Internally, we also consulted a number of senior executives shareholders, customers, partners, suppliers, industry and research organizations, to understand their views of the company that external stakeholder views on risks and opportunities were consistent with management; with the financial impact of climate change on the company. Overall results indicated A key factor influencing corporate policies on climate change risks and opportunities is the perspective of the company A key factor influencing corporate policies Structure of Climate-related Financial Disclosure of Climate-related Structure

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 67 transformation risks outweighing physical risks, and Participants in the climate change and water risk opportunities and impacts survey regulatory requirements posing the biggest impact to transformation risks. On climate change, most 18 senior managers 23 stakeholders respondents suggested adopting low-carbon energy sources and increasing energy efficiency, followed Clients by developing low-carbon products and utilizing 68 Shareholders

resources more efficiently. Views on water opportunities GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION demonstrate the strongest consensus, with most Employees respondents calling for better water efficiency, higher water recycling and reuse rate, and the diversification of Partners water sources. The study provided convincing data points to serve as an important management guide for ASEH’s Research institutions roadmap on environmental issues. Suppliers

Climate Change Risks Climate Change Opportunities Views of external stakeholders Views of external stakeholders

Energy sources Technology Goodwill Legislation Products and services Downstream Resilience Markets Upstream Markets Resource efficiency Immediate physical effects Long-term physical effects Litigation

Internal investigation Internal investigation Water Risks Water Opportunities Views of external stakeholders Views of external stakeholders

Water resource Water efficiency Legislation Immediate physical effects Resilience Products and services Goodwill Markets Long-term physical effects Litigation

Internal investigation Internal investigation 2030 2030 2029 2029 2046 2046 2028 2028 2041 2041 2027 2027 Maximum loss in market share 2026 Maximum loss in market share 2026 2036 2036 2025 2025 2031 2024 2031 2024 2023 2023 Minimum loss in market share 2026 Minimum loss in market share 2026 2022 2022 2021 2021 2021 2021 0 0 1.5 1.0 0.5 0 1.5 1.0 0.5 0 7,500 2,500 by calculating the correction ratios of decreases in precipitation and growth in ratios of decreases in precipitation by calculating the correction 5,000 7,500 2,500 1 10,000 5,000 10,000 NDC scenarios Financial impact (USD in millions) NDC scenarios Financial impact (USD in millions) Loss in market share Financial impact (USD in millions) Loss in market share Financial impact (USD in millions) 2030 2039 2030 2039 2029 2046 2037 2029 2046 2037 2028 2035 2028 2035 2041 e concentration in the range of 430-480 ppm. The RCP 8.5 scenario is a high emissions business-as-usual (BAU) scenario with a 4.1°C to 4.8°C rise in e concentration in the range of 430-480 ppm. The RCP 8.5 scenario is a high emissions business-as-usual (BAU) scenario 2041 2 2027 AR5). 2027 2033 2033 2°C scenario 2°C scenario 2026 Maximum impact on business reputation 2026 2036 2031 Maximum impact on business reputation 2036 2031 RCP 8.5 scenario RCP 8.5 scenario 2025 2025 2029 2029 2031 2031 2024 2024 2027 2027 2023 1.5°C scenario 2023 1.5°C scenario 2025 2026 2025 2026 Minimum impact on business reputation Minimum impact on business reputation e concentration of over 1,000 ppm (IPCC, 2014, 2022 2 RCP 2.6 scenario 2022 RCP 2.6 scenario 2023 2023 2021 2021 2021 2021 0 2021 0 2021 0 0 200 400 600 0 0 200 400 600 3,000 2,000 1,000 6,000 5,000 4,000 3,000 2,000 1,000 3,000 2,000 1,000

Financial impact (USD in millions) 6,000 5,000 4,000 3,000 2,000 1,000 Impact on business reputation Emissions reduction scenarios

Financial impact (USD in millions) Water scarcity (Taiwan) The RCP 2.6 is a pathway that limits global warming to below 2°C and leads to a CO The RCP 2.6 is a pathway that limits global warming Financial impact (USD in millions) temperature that leads to a CO Impact on business reputation Emissions reduction scenarios Financial impact (USD in millions) Financial impact (USD in millions) Water scarcity (Taiwan)

Financial impact (USD in millions) manufacturing capacity. 1 Rigorous application of procedures and methodologies are essential for transparency in climate-related financial disclosures. Faced with transition risks due to climate change, ASEH due to climate change, with transition risks disclosures. Faced financial transparency in climate-related are essential for and methodologies of procedures Rigorous application business scenario, impacts on Contribution (NDC) Determined scenarios, Nationally 2°C emissions reduction areas: 1.5°C and impacts in four different potential financial has assessed assessed using science-based emissions of emissions reduction as of 2050 was emissions reduction scenarios, the cost share loss. For the 1.5°C and 2°C carbon reputation and market current and future laws and regulations potential annual operating costs based on facilities and offices to calculate the applied the NDC scenario on our Taiwan reduction targets. We loss, we calculated the minimum and business reputation and market share capacity. To determine impacts on and the projected expansion of manufacturing on renewable energy risks, we assessed the impact of green product revenues. In regard to physical on ASEH’s global market share and losses over the next ten years based maximum potential financial 2.6 and RCP 8.5 emissions scenarios from our Taiwan facilities in the RCP water scarcity on revenues Scenario Analysis and Financial Impact Financial Analysis and Scenario

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 69 Emissions reduction scenarios NDC scenarios Financial impact (USD in millions) Financial impact (USD in millions) 600 1.5 1.5°C scenario 2°C scenario

400 1.0

200 0.5 Emissions reduction scenarios NDC scenarios Financial impact (USD in millions) Financial impact (USD in millions) 6000 01.5 Emissions reduction scenarios NDC scenarios 1.5°C scenario 2°C scenario 2021 2026 2031 2036 2041 2046 2021 2026 2031 2036 2041 2046 Financial impact (USD in millions) Financial impact (USD in millions) 600 1.5 1.5°C scenario 2°C scenario 400 1.0

400 1.0 200 0.5

200 Impact0.5 on business reputation Loss in market share Financial impact (USD in millions) Financial impact (USD in millions) 0 3,000 0 10,000 2021 Minimum2026 impact2031 2036Maximum impact2041 2046 2021 Minimum2026 loss2031 in 2036Maximum2041 loss in 2046 on business on business market share market share 0 0 reputation reputation 7,500 2,000 2021 2026 2031 2036 2041 2046 2021 2026 2031 2036 2041 2046 70 5,000 GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 1,000 2,500

0 Impact on business reputation Loss in0 market share Financial impact (USD in millions) Financial impact (USD in millions) 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 3,000 10,000 Minimum impact Maximum impact Minimum loss in Maximum loss in Impact on business reputation Loss in market shareon business on business market share market share Financial impact (USD in millions) Financial impact (USD in millions) reputation reputation 7,500 3,000 10,0002,000 Minimum impact Maximum impact Minimum loss in Maximum loss in on business on business market share market share 5,000 reputation reputation Water7,500 scarcity (Taiwan) 2,000 Financial impact (USD in millions) 1,000 6,000 2,500 5,000 5,000 1,000 0 RCP 2.6 scenario RCP 8.5 scenario 0 2,500 4,000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

0 3,0000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2,000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Water1,000 scarcity (Taiwan) Financial impact (USD in millions) 6,0000 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 Water scarcity (Taiwan) 5,000 Financial impact (USD in millions) 6,000 RCP 2.6 scenario RCP 8.5 scenario 4,000 5,000 RCP 2.6 scenario RCP 8.5 scenario 3,000 4,000 2,000 3,000 1,000 2,000 0 1,000 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039

0 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 Means of reduction Scope 1 emission Scope 2 Location -based emission Scope 2 Market - based emission Location - based emission intensity Market - based emission intensity ’s total GHG emission data. Simplify packaging and switch to green delivery alternatives Boost energy efficiency Prioritize the purchase of low-carbon equipment and construction of low- carbon plants Continue to increase the percentage of renewable energy Prioritize the procurement of low-carbon materials Use green transportation Recycle waste materials Promote public transportation Amend travel regulations to limit unnecessary business trips e / 2 O

0.180 0.150 0.120 0.090 0.060 0.030 0.00 thousand USD revenue tC 98,880

4 1,695,223

0.130 0.158 2,081,778 2019 e/tkm) x Distance(km)) 2

Σ(Emission factor based on

85,279 1,544,880

0.135 0.160 1,935,002 2018 . Reference for emission factor 6 , SF 3 2019 Scope 3 Emissions Emission inventory for energy consumption (energy consumption x energy emission factor) Classification by industry and summation of greenhouse gas emissions generated by each industry EPA Product Carbon Footprint Database EPA Product Carbon Footprint Database EPA Product Carbon Footprint Database EPA Product Carbon Footprint Database EPA Product Carbon Footprint Database and research data Distance x emission factor Product weight(kg) x transport mode)(kgCO )

e

60,675 2 1,215,698 tCO 0.130 (

O, HFC, PFCs, NF

2 1,372,987 2,677 2017 0.147 , N 54,553 10,093 12,778 27,615 16,738 4 976,585 270,249 281,135 , CH 2

Emissions

56,764 1,328,044 2016 0.166 e 0 2 tCO 500,000 1,500,000 1,000,000 2,000,000 Source of emissions Nevertheless, ISE has already completed its GHG inventory assessment and its data has been duly included in the reporting of ASEH Nevertheless, ISE has already completed its GHG inventory assessment and its data has been duly included in the reporting inventory of greenhouse gases include: CO Fixed assets Downstream leasing Fuel and energy-related activates Purchased goods and services Upstream transportation and distribution Waste generated in operations Employee commuting Business travel Downstream transportation and distribution the schedule for the ISO14064 third party verification at our US California-based ISE Labs Inc has been further delayed. Due to disruption from the Covid-19 pandemic, Our materials (ATM), and electronic manufacturing service (EMS) facilities. and this includes all packaging, testing, The consolidation approach is followed by operational control, Fifth Assessment Report, AR5. to IPCC sites' local utilities. Global warming potential (GWP) values refer emission factor from emissions were calculated by the The electricity usage from the IPCC's Fifth Assessment Report. The Global Warming Potential (GWP) is quoted 1 2 3 4 We have also identified the sources of Scope 3 emissions along our value chain through emissions estimates. In 2019, our value chain through emissions estimates. the sources of Scope 3 emissions along We have also identified and SPIL Taiwan have completed the ISO14064-1 Scope 3 verification. ASE Kaohsiung, ASE Chung Li, USI Taiwan enable us to identify the major sources of greenhouse emissions and develop Verification and validation methodologies will also roll out worldwide training in accordance with the updated ISO plans for carbon footprint mitigation. We Scope 3 emissions. 14064-1:2018, to educate employees on Greenhouse Gas Emissions and Intensities Gas Emissions Greenhouse e 2 Unit: tCO e (10.06%). 2 Scope 2 - Electricity Scope 2 - Steam Scope 1 . Based on industry standard . Based on 1 24,528 (1.4%) 98,880(5.5%) 2,395 (0.1%) 12,073 (0.7%) 59,884 (3.3%) e per US$ 1,000 in revenues in 2018 e per US$ 1,000 in revenues 2 e per US$ 1,000 in 2019. For Scope 2 2 in 2019. Scope 2 (energy consumption) in 2019. Scope 2 (energy Stationary combustion Mobile combustion Process emissions Fugitive emissions 2, 3 13,905 (0.8%) 1,681,317 (93.7%) e)

2

calculations, the Company emitted 1,794,103 metric calculations, the Company Scope 2 carbon dioxide equivalents tons of Scope 1 and (CO accounts for 99% of emissions, and Scope 1, 5%. or accounts for 99% of (i.e., 61%) were created during Scope 1 emissions, most Compared to 2018, the manufacturing processes. by 163,944 tCO emissions in 2019 increased ASEH introduced ISO 14064-1 for the quantification for the quantification ISO 14064-1 ASEH introduced emissions, to all its of greenhouse gas and reporting the globe facilities across Greenhouse gas emissions gas emissions Greenhouse management to 0.130 tCO This increase is due to the inclusion of SPIL for the entire This increase is due to months in 2018. On a positive year in 2019 versus eight dropped by approximately 5%, note, emissions intensity from 0.135 tCO emissions, the majority of our facilities around the world emissions, the majority of our facilities around public thermal are powered by electricity purchased from and power plants. To keep track of energy consumption ISO 50001 boost energy efficiency, 14 facilities received rate certification in 2019, equivalent to an achievement of 56%. 2019 Scope 1 & 2 Emission Category and Ratio 2019 Scope 1 & 2 Emission Category

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 71 Fossil (Non-renewable) Fuels Power usage Our The major fuel consumption is liquefied natural gas ASEH's electricity consumption is 3,588,896 MWh in 2019, a 12.78% increase of 458,746 MWh compared (LNG), totaled 318,429 GJ1 in 2019. Fuel is primarily with 2018. The main reasons for the increase are due to used for electric generators, forklifts, company cars, the company’s operational expansion and the inclusion boilers, and air pollution control equipment (e.g., zeolite of SPIL’s 2019 consumption data was included for the 72 rotor concentrators). Natural gas accounts for roughly entire year in the calculations for 2019 but only (SPIL 80% of all fossil fuel use at ASEH facilities. The adoption contributed only eight months of consumption data in GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION of waste heat recovery and high efficiency boilers in 2019 2018). Renewable energy (including RECs) accounted reduced fossil fuel consumption by 28% compared to for 14.27% of all energy sources, up 1.56% from 2018. 2018. Additionally, energy intensity is 0.26 MWh/thousand USD revenue2 in 2019; it was down 0.57% in 2019 compared to 2018.

2019 Non-Renewable Fossil Fuel Electricity Consumption and Intensity Consumption and Ratio

8,955 (GJ) 3,094 (GJ) MWh/ 2,488 (MWh) 859 (MWh) thousand MWh (3%) (1%) USD revenue 0.267 3,500,000 0.27 18,892 (GJ) 0.259 0.260 5,248 (MWh) 3,000,000 0.26 (6%) 2,500,000 512,067 0.25 31,906 (GJ)

8,863 (MWh) 397,766 0.235 0.24 (10%) 2,000,000

1,500,000 2,158 0.23 195,595 2,732,384 1,000,000 3,076,829 0.22 2,227,268

500,000 2,104,928 0.21 255,582 (GJ) - 0.20 70,995 (MWh) 2016 2017 2018 2019 (80%) Non-renewable electricity consumption Liquefied液化石油氣（ petroleumLPG） gas(LPG)液化天然氣（LNG）Diesel Renewable electricity consumption Liquefied車用汽油 natural gas(LNG)柴油 Gasoline Heavy重油 oil Electricity intensity

1 Fuel heating value is referred from the "heating value of energy products" table. Our total internal energy consumption = non-renewable fuel consumption + renewable fuel (electricity) consumption + purchased and used electricity, heating, cooling and steam = 13,394,097 GJ. 2 This data includes all packaging, testing, materials (ATM), and electronic manufacturing services (EMS) facilities, excluding real estate. 5% 5% 10% 16% 10% <1% <1% 100% 100% 100% 100% 100% 100% 100% Ratio to the Facility’s Ratio to the Electricity Consumption(%) 34 307 936 929 0.55 2,042 9,347 52,800 80,114 12,000 69,873 52,987 33,385 24,002 173,294 Consumption(MWh) 2019 Renewable Energy 2019 Renewable Development Method Development Solar power installation Solar power Solar power installation Solar power Solar power purchase I-RECs purchase I-RECs purchase I-RECs purchase Solar power installation I-RECs purchase I-RECs purchase I-RECs purchase I-RECs purchase I-RECs purchase I-RECs purchase Solar power purchase I-RECs purchase 2 .trec.org.tw/) Facility ASE Kaohsiung ISE Labs ASE Kunshan ASE Suzhou ASE Shanghai MTL ASE Weihai ASE Wuxi ASE Shanghai A&T USI Zhangjiang USI Jinqiao USI Shenzhen USI Kunshan SPIL Suzhou USI Mexico Certification Center (https://www consumption, 292 kWh, per month estimated by Taipower Company in 2018. The calculation is based on the household electricity Country Taiwan U.S.A. China Mexico generation estimated from April to December 2019. The data for electricity Energy Certificates (T-RECs) since August 2017; for cumulative amount, see the National Renewable Energy Renewable has accumulated Taiwan K26's solar power generation facility's local electricity emission factor. is calculated based on each The CO2 equivalent 1 2 3 4 . 4 e in greenhouse gas 2 the annual electricity 3 e 2 . Combined with purchased solar energy, . Combined with purchased solar energy, 1

consumption of 170 thousand Taiwanese households SPIL Suzhou contributed 985 tCO reductions. To address power shortages, most ASEH reductions. To address power shortages, outages as facilities have implemented planned power (LFDD). well as Low Frequency Demand Disconnection and the Through real-time power usage monitoring storage incorporation of renewable energy and energy ASEH has systems to simulate power usage scenarios, management been able to establish an optimal energy economic goals. model to achieve our environmental and energy In 2019, ASEH carried out 330 innovative Through the conservation and carbon reduction projects. Systems, adoption of ISO 50001 Energy Management savings the projects resulted in an estimated electricity of 599,833 MWh (equivalent to 16.7% of the year's electricity demand), which equates to an emissions reduction of 437,737 tCO Energy conservation and carbon conservation and Energy reduction footprint Through the diagnosis of energy conservation hotspots, conservation hotspots, diagnosis of energy Through the of low-carbon energy, the adoption ASEH is targeting and building in manufacturing, energy conservation carbon footprint. The company has facilities to reduce its sources to reduce reliance on fossil diversified its energy footprints of its products fuels, to reduce the carbon its climate resilience. We and services and strengthen alternative energy sources are committed to establishing and shift towards a green industry to replace fossil fuels development. In 2019, we used and renewable energy energy, which accounted 512,067 MWh of renewable power consumption, up 29% for 14.27% of our annual from 397,766 MWh in 2018. Across the globe, ASEH currently has 7 facilities SPIL’s completely powered by renewable energy. system with Suzhou facility has installed a solar energy MWh of a capacity of 2,150 kW that generated 936.3 power in 2019

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 73 Major Energy Saving and Carbon Reduction Projects

Type Major Projects Annual Energy Saving(MWh) Annual Energy Saving(GJ) Annual Carbon Reduction(tCO2e)

DI water recycling in sawing machine, Vacuum pump Process adjustment, Smart meter installation, Computer replacement 81,991 295,167 45,635 74 and Machine optimization GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION

Lighting enhancement, Chilled water system optimization, Building Variable Frequency Drive (VFD) installation to air conditioning, 5,785 20,825 3,324 Services Heat recovery and Rationalization of ventilation

Low-carbon Adoption of Low-carbon transport, such as electric forklifts 0 0 54 logistics and hybrid electric trucks

Subtotal 87,776 315,992 49,013

Low Carbon Solar power installation and purchase, Renewable energy 512,057 1,843,408 388,724 Energy certificate purchase

Total 599,833 2,159,400 437,737

ASE KH ASE M USI ZJ SPIL SZ [ASE Kaohsiung] Heat pump system application. [ASE Malaysia] Optimize Plant 2 Chiller System [USI Zhangjiang] Facility improved air [SPIL Suzhou] SPIL Suzhou Facility adopted a Operation. compressor energy efficiency, which reduced solar power system. operating costs and improved compressed air quality. Power Plant Scheduling Power Plant Grid Distribution & Smart Renewable Energy Smart System Generator Manufacturing Smart Factory EMS System Energy Storage System Renewable Energy Analysis and load management based on energy Analysis and load management based on use of plants within facilities of Simulation and control of strategic scheduling energy use

Smart energy management system

Strategies for smart grid implementation for smart grid Strategies 1. of transformation Zero-carbon energy structure 2. Smart energy management research and validation study. of Economic Research to conduct a two-stage Research and the Taiwan Institute the Chung-Hua Institution for Economic In 2018, ASEH commissioned and energy storage systems. The grid use combined with renewable energy a grid that automatically responds to energy simulation of possible scenarios using The study involved the both environmental and financial benefits. and optimize power use, thus bringing can reduce peak demand grids in the industry to government regarding the development of smart competitors and have made policy proposals and technologies with our industry We shared our experience the benefits of smart grids. of facilitating collaboration and expanding agencies in the hope Smart Grid

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 75 5.2 Water Resource Three-stage risk assessment To gain insight into water risks at our facilities worldwide, we conducted the three-stage analysis and assessment of water resources risks:

Utilized the International Aqueduct tool WRI water stress level of We first utilized the Aqueduct tool developed by the World Resources Institute (WRI) to examine the baseline water stress 76 1 2 oversea facilities

level at each facility. WRI’s baseline water stress measures the ratio of total water withdrawals to available renewable GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION surface and groundwater supplies3. Higher values indicate more competition among users, resulting in higher water Mid Low 1 scarcity risk. By WRI water stress level, we analyzed the water stress condition in oversea 17 facilities and Taiwan 8 facilities. High 8 Corrected water risk data 1 The Aqueduct tool was developed using a large global database which lacks local data from Taiwan and uses data of China instead. For this reason, we asked an academic research institution to replace the data in the original database with First accurate local data published by the Taiwanese authorities and then utilized the model to assess and analyze the water Stage withdrawals in different watersheds and at different ASEH facilities. We therefore opted to use the revised data as the basis for risk classification. Water risk management of supply chain 最大值: Maximum We also require our suppliers to comply with our Supplier Code of Conduct and develop water management plans to 平均值: Average 最小值: Minimum record, classify, and monitor water use and discharge, adopt water conservation measures as much as possible, and Very High 2 control pollution pathways. Low 14

Simulated and analyzed by different heating scenarios Dry season precipitation correction ratio

By calculated the percent variation of both water consumption and water availability, we examined month-to- 94% Maximum month differences in water supply and demand at our eight Taiwanese facilities. 92% 92% 91% RCP 2.6 Using past dry-season precipitation records from October to June, we simulated the percentage decrease in 90% RCP 8.5 2 precipitation at the eight facilities from 2021 to 2040 under the RCP 2.6 and RCP 8.5 scenarios to assess future 88% drought variations due to climate change. Greater differences resulted in higher month-to-month variations, 86% Second 86% Average 86% which lead to greater potential risk of impacts on facility operations. The analysis showed that 8 facilities in Stage 84% Taiwan experience greater month-to-month variations in water supply and demand due to their geographical 82% 82% location and water usage. 80% 80% Minimum

78%

To enhance the risk adjustment and capacity 1 ASEH attends closely to reservoir level alerts every year to prepare for early To overcome environmental challenges and minimize the impact of water risks, dry seasons and deploy water trucks in advance. we examined the adaptability of high-water-risk facilities for the third stage of the risk assessment. Currently, water risks at our facilities stem from five factors: lack Water rationing shall be extended and become more frequent. ASEH regularly checks its water storage and recycling equipment to ensure of infrastructure, increasing water stress, seasonal variations, climate events, and 2 3 optimal performance. government policies encouraging enterprises to return to Taiwan. We defined a Third water supply decrease of over 10% as a mild shortage and a decrease of over 30% Due to the significant differences in water consumption in different Stage as a severe shortage, and used these standards to assess future water risks and 3 months, ASEH has refined its manufacturing capacity planning to account adopt the following adaptation measures: for the corresponding water allocation during drought-prone months.

1 Water withdrawals include domestic, industrial, irrigation, and livestock consumptive and non-consumptive uses. 2 Available renewable water supplies include the impact of upstream consumptive water users and large dams on downstream water availability. 3 https://www.wri.org/publication/aqueduct-30 of water, which accounted for of water, which accounted 4 ASE Chungli . In 2019, water use intensity decreased by 5.3% compared to the previous 5.3% compared to the previous decreased by intensity . In 2019, water use 3 ASE Kaohsiung water reclamation Facility (ASE water reclamation Chungli Facility): Construction began in 2014 water reclamation Facility (ASE water reclamation Kaohsiung Facility): Construction began in 2013 st nd 1 2 Phase 1 (2015): 65% recycling rate; processed 4,800 metric tons of reclaimed water per day Phase 1 (2015): 65% recycling rate; processed 5,400 metric tons of reclaimed water per day Phase 2 (2019): 70% recycling rate; processed Phase 1 (2015): 50% recycling rate; processed 20,000 metric tons of reclaimed water per day Phase 1 (2015): 50% recycling rate; processed 30,000 metric tons of reclaimed water per day Phase 2 (2019): 70% recycling rate; processed

ASE Kaohsiung Water reclamation facilities Water reclamation reclamation facility in Taiwan for processing wastewater that has met In 2013, we began constructing the largest water re-used at our local facilities. The second phase of the water recycling facility effluent guidelines. The recycled water will be began operations in 2019. filtration (MMF), reverse osmosis (RO), and ultrafiltration (UF) systems Our water reclamation facility utilizes multi-media is 20 times cleaner than tap water. The processed water is distributed to the to process effluents into purified water that thereby accomplishing our goals of water conservation and effluent reduction. surrounding manufacturing facilities for reuse, 116% of the total water withdrawals of the year. 116% of the total water year, while total water withdrawals increased by roughly 10% due to the company’s merger with SPIL. (which was due to the company’s merger with SPIL. withdrawals increased by roughly 10% year, while total water reuse at our We are committed to increasing water the increase in greenhouse gas emissions). also the reason behind recycled 28,158,345 tons water efficiency. In 2019, ASEH facilities in order to improve ASEH facilities that measure TDS in the water include the operations in Kaohsiung, Shanghai Assembly & Test, Wuxi, Assembly & Test, Wuxi, Kaohsiung, Shanghai the operations in in the water include that measure TDS ASEH facilities Da SPIL’s facilities in and Taiwan; and Kunshan, Shenzhen USI’s facilities in Jinqiao, and Singapore; Japan, Malaysia other yet been adopted at has not and Suzhou. TDS measurement Hsinchu, Changhua Shan, Zhong Ke, Fong, Chung of legal requirements facilities due to a lack

Water withdrawal intensity

Recycle and reuse

Total Water withdrawal /thousand USD 3

3.00 2.50 2.00 1.50 1.00 0.50 0 revenue m 24.177

, with the largest source , with the

2019 1 28.158 1.751 21.572 . Our facilities record water use . Our facilities record

2

2018

1.784 25.856 16.034

2017 1.634 20.928 15.147

2016

1.807 17.344 3 0

9A.1 Sustainability Data—Environmental Data, B. The amount of water 9A.1 Sustainability Data—Environmental Data, B. The withdrawals and discharge in water-stressed regions. attained through water meter of water recycled are for the amount Estimates records and the efficiency of water recycling equipment at our facilities. The data includes that of all ASEH facilities that offerThe data includes that of all ASEH facilities that assembly, testing, and material services and electronics manufacturing services. facilities in USI Taiwan, ASE 4,940,000 tons of groundwater were used at the tons of Chungli, SPIL Dafeng, SPIL Zhongshan and SPIL Changhua. 580,000 ASE rainwater were harvested and reused at the facilities in ASE Kaohsiung, reclaimed water were Kunshan, SPIL Hsinchu, and SPIL Zhong Ke. 430,000 tons of water recycling produced at the ASE Kaohsiung Nanzih Export Processing Zone’s plant model. ASEH’s remaining water use is sourced from tap water.

5.000 30.000 25.000 20.000 15.000 10.000 million/m 3 4 1 2 of water being tap water Water withdrawal and reuse and Water withdrawal strategies—reduce, adopted three water-use ASEH has withdrawals in 2019 recycle. Total water reuse and to 24,177,331 tons amounted with water meters and water bills. This year, in order to with water meters and different water sources, some of differentiate between measuring total dissolved solids our facilities have begun water withdrawals. (TDS) in addition to total 2019 Water Withdrawal and Intensity 2019 Water Withdrawal

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 77 Waste water management and control

In 2019, 18,780 thousand tons1 of effluent was discharged2 at ASEH facilities, with the discharge of effluents into surface and ground water accounting for 93% of total effluents discharged, and the discharge of effluents into marine waters accounting for 7%, and total water consumption3 was 5,399 thousand tons.ASEH has adopted an effluent management system more stringent than that stipulated by law (see the Appendix for ASEH Environmental Data-C. Effluent water quality at facilities with waste water treatment plants), and regularly/continuously monitors effluent water quality to safeguard local bodies of water from negative environmental impacts. ASEH commissions external service providers to conduct quarterly offline sampling and water quality analysis, and the company’s internal environmental protection lab conducts further water quality tests on waste water. The 78 purpose of these measures is to improve the monitoring and management of effluent discharge and ensure regulatory compliance. This year, some of our facilities have adopted the GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION measurement of total dissolved solids (TDS) in water discharge in order to differentiate between water sourced from freshwater and other environments. ASEH facilities that measure TDS in water discharge include the ASE Japan Facility, ASE Singapore Facility, SPIL's Facility in Da Fong, Chung Shan, Zhong Ke, Hsinchu, Changhua and Suzhou. The ASE Chungli Facility measures TDS from conductivity4, while the remaining facilities have yet to adopt TDS measurement due to a lack of legal requirements5. ASEH continues to upgrade and replace waste water treatment plants every year to improve water recycling rates and treat unrecyclable waste water at sewage treatment plants.

Real-time effluent management system at ASE Kaohsiung CWMS (Continuous Water Monitoring Systems)

To better monitor the water quality of the effluent discharge from each plant, ASE Kaohsiung incorporated the Continuous Water Monitoring Systems (CWMS) Automation, Real- and Supervisory Control and Data Acquisition (SCADA) time, 24hr effluent systems into its real-time effluent management, providing Real-time quality information. detailed water quality information and alerts. monitoring

1. Automated effluent monitoring and online updates of system threshold values SCADA (Supervisory Control and Data Acquisition) 2. Real-time water quality monitoring and threshold value optimization Abnormal water 3. Abnormal water quality alerts quality alerts to 4. Automatic updates of allowable limits set by local switch on emergency Early warning environmental protection authorities response response measures.

1 Three electronic manufacturing services facilities (Kunshan, Shenzhen, and Mexico) do not have on-site wastewater treatment facility, so the amount of wastewater discharge is estimated. Others' data is recorded from water meters. 2 Discharge of effluents into surface and groundwater refers to effluent discharged into rivers, lakes, sewer systems, or underground water-bearing strata. 3 The water storage capacity has not been identified in 2019 but we will plan to collect this relevant data. 4 Conductivity of 2,000 μS/cm = TDS of 1,000 ppm. 5 9A.1 Sustainability Data—Environmental Data, C. Effluent quality of our facilities with on-site wastewater treatment. Organic waste treatment amount ofIn-house treatment of organic waste reduces the by 1,055 waste outsourced to waste treatment companies savings. metric tons, achieving US$ 1,060,000 in cost Industry-academia collaboration to collaboration Industry-academia processes. sludge treatment refine are consolidated from various ASE sites Sewage sludge to undergo a drying our water recycling facility and sent to its volume before it is collected by process to further reduce This process reduces the waste management companies. waste by at least 3,247metric annual production of sludge US$ 2,390,000 in waste tons, saving the Company costs. treatment outsourcing % 100 80 60 40 20 0 93% 58% 2019 3,098 11,850 16,104 38,744 Recycled and reused rate of general waste Recycled and reused rate of hazardous waste 90% 51% 2018 4,069 12,924 13,240 36,770

e t s

e wa t l s a 87% 53% wa 3,711 2017 l 11,812 13,460 24,655 ener a g d e ener g us d re e d us n a re d 85% 54% n led 4,100 2016 12,122 14,380 23,862 a c y c led re c - y n c o 0 e Recycled and reused hazardous waste Non-recycled and reused hazardous waste N R The waste weight data is calculated by summing up the weight of each trip to up the The waste weight data is calculated by summing remove the waste.

1 ASEH adopts ISO 14001 Environmental Management ASEH adopts ISO 14001 Environmental Management industry principles and encourages players from different a blueprint for segments to collaborate and jointly build external resource recycling. The company also leverages to resources and industry-academia collaborations the emission of improve waste management and reduce reduction pollutants. Programs initiated include waste (sludge drying and volume reduction, in-house solutions, processing of high molecular weight organic waste from reduced use of liquid wipes, reduction in in activated carbon desiccant packs, and reduction reuse alcohol bottle waste through package redesign), recycling (reuse of epoxy molding compounds), and that helped (waste cyclopentanone solvent recycling), treatment save the company US$ 3,581,000 in waste costs. Waste output and recovery rate and recovery Waste output metric ton 70,000 56,000 42,000 28,000 14,000 38,744 Unit:metric tons General waste (Non-recycled and reused) Hazardous waste (Non-recycled and reused) s future expansion plans and ’ 1 General waste (Recycled and reused) Hazardous waste (Recycled and reused) 3,098 11,850 16,104

2019 Waste Generation and Treatment Amount

deliver benefits in reducing waste and protecting the deliver benefits in reducing waste and protecting environment. ASEH adopts source reduction measures and prioritizes measures and prioritizes source reduction ASEH adopts to minimize waste eco-friendly materials the use of environmental pollution. In 2019, generation and reduce metric tons of waste, including we generated 69,795 general waste (59.9%) and 27,954 41,841 metric tons of waste (40.1%). Non-recyclable metric tons of hazardous was 14,948 tons, a decrease of business waste in 2019 tons in the previous year. By 2,045 tons from 16,993 of a Circular Economy, ASEH embracing the concept waste recycling and reuse, resulting was able to improve rate of 79%, an increase of 4% in an average recycling The recycling rate of general waste from 75% last year. with is 93% while hazardous waste is 58%, compared general 90% and 51% in 2018 respectively. Recycled volume of and hazardous waste amounted to a total Economy 54,847 metric tons. The concept of Circular will continue to drive ASEH 5.3 Waste and Recycling Waste Generation

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 79 Moving Towards a Circular Economy Annual CO2 CO2 emission Savings per Costs 邁向循環經濟Total savings emission reduction per Method Description USD1 cost (USD) (USD) reduction USD10,000 Finite natural resources that are depleting over time (USD) 面臨地球資源有限甚至拮据的狀 (tCO e) 況(tCO，環境生態與e ) 氣 and, intense climate and ecological changes are driving 2 2 Reduced the use of cardboard 候變遷加劇。因此資源的循環再利用的課題令人省 companies like ASEH to consider technology and Reduce boxes, packaging wrap; redesigned 334,000 698,000 422 2.1 12.6 packaging to require less material. 思，考量相關技術與經濟效益讓循環經濟落實應用 economic benefits to help transition the company to a 80 Reused vacuum packaging wraps, circular economy. ASEH’s transition to a circular economy Reuse cardboard boxes, pallets, trays, and 93,000 於實826,000務，我們積極參與並推動循環經濟活2,618 8.9 281.5 動。我GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 們 paper products comprises of 5 key elements: direct recycling, reuse, off- 推動循環經濟包含五大主軸：直接回收、再使用、 site regeneration, renewable materials, supply and rental. Recycled wooden crates, cardboard Recycle boxes, wrap, barrels, etc. 36,000 廠外再365,000生、再生物151 料、供應與租10.1 賃41.9。以日月光投控 Total / Average 463,000 1,889,000 3,191 4.1 68.9 ASEH is collaborating closely with its business and 為核心，連結產業鏈上的供應商與合作夥伴，透過 supply chain partners, to build a circular economy in the 重新設計、循環加值、回收還原、共享經濟、循環 semiconductor industry, through fostering the adoption Circular Economy Promotion Blueprint 農業與產業共生實際作法，創造出半導體業的循環 of redesign, circular value-add, recycling and recovery, Redesign 經濟價值。在實務應用上結合共同產業更甚是異業 sharing economy, circular agriculture and industrial Incorporating eco-friendly materials Circular value add Industrial symbiosis symbiosis. To that end, ASEH has formed several industry Replacing acetone結 with盟 boron-free，透過檢視資源使用的整個生命週期過程中 尋 Reusing trays developers/alcohol Turning silicon sludge into Recycling Improving manufacturing processes usable materials alliances and cross-industry partnerships that help 找減量、回收與再利用等方Recyclable 式，將資源利用效率最 packaging/cushioning Renewable (reducing use of chemicals) Reusing silicon dioxide from Resources Materials/ maximize resource efficiency by identifying areas to materials 大化。 Resources sealing strips Recovery of chemicals via Refining waste metal reduce, recycle and reuse, and introducing low carbon outsourcing services (e.g., solutions recovery of cyclopentanone Recycling rejects transport logistics in the manufacturing process. and recovery /reuse of alkaline Direct Renewable Reusing waste plastics etching solutions) recycling materials Reusing empty barrels Suppliers Circular agriculture Case study: In 2019, ASEH invested US$ 463,000 to Reusing pallets Turning kitchen waste into reduce, reuse and recycle packaging material which compost Supply Rental resulted in savings of US$ 1,889,000 as well as an annual

CO2 emission reduction of 3,191 metric tons. On average, each dollar invested generated 4.1 dollars in savings. Packaging material recycling was the most cost-effective Recycling Sharing facilities economy (10.1 dollars in savings per 1 dollar invested) of the Reuse Off-site regeneration three strategies. In terms of carbon dioxide equivalents Recycling and recovery Sharing economy Turning organic waste Promoting resource sharing (CO e), the Company helped reduce global emissions by 2 solutions into energy Equipment and resource 68.9 metric tons for every US$ 10,000 it invested, with Recycling wastewater from rental manufacturing processes packaging material reuse being the most effective (281.5 Recycling chemicals in our plants (recovery of acetone) metric tons per US$ 10,000 invested) strategy to achieve Products Recyclables emission reductions. 2 ISO 14046 ISO 14064-1 Water footprint Greenhouse Gas Emission Scope: 100% Scope: ASE Kaohsiung ISO 14051 and IECQ HSPM QC 080000 and IECQ 1 Material Flow Cost Accounting Product type: USB-C Dock G4/Scope: USI Taiwan Product type: Flip Chip/Scope: ASE Kaohsiung • • ISO 14067 Carbon footprint IECQ HSPM QC 080000 Chip Scale Package (CSP), Flip Chip, Bumping, Chip Scale Package (CSP), Flip Chip, Bumping, Substrate and testing / Scope: ASE Kaohsiung USI Zhangjiang Scope: 100%, excluding ISE Labs * Scope: 100%, excluding • Product & service types: Leadframe, BGA, • 4G dual-band communications module/Scope: • XnBay smart server/Scope: USI Taiwan Hazardous Substance Process Management Hazardous Substance ISO 14054 Eco-Efficiency ISO 50001 ISO 14001 Energy Management System

Due to disruption from the Covid-19 pandemic, the schedule for the ISO14064 third party verification at our US California-based ISE Labs Inc has been further delayed. Due to disruption from the Covid-19 pandemic, the schedule for the ISO14064 third party verification at our US California-based of ASEH’s total GHG emission data. Nevertheless, ISE has already completed its GHG inventory assessment and its data has been duly included in the reporting

Scope: 100% Scope: ASE Kaohsiung, Chungli; USI Taiwan, Zhangjiang, Jinqiao, Shenzhen, Kunshan, Mexico; SPIL Dafong, Chungshan, Hsinchu, Changhua, Zhongke and Suzhou Flip Product types: Leadframe, BGA, Chip Scale Package(CSP), Chip, Bumping and Substrate / Scope: ASE Kaohsiung Environmental Management System Environmental Management * As an IC testing facility, ISE Labs is exempted from IECQ HSPM QC 080000 certification. * As an IC testing facility, ISE Labs is exempted from IECQ HSPM 1, 2 Environmental Management System and Certification Management System and Environmental 5.4 Green Facility 5.4 Green 14064-1 ISO 14001, ISO worldwide have received production facilities All ASEH's certifications. There are 14 facilities (56% of all facilities) have obtained ISO 50001 certification. ASE's Kaohsiung facility ASE's Kaohsiung ISO 50001 certification. have obtained (56% of all facilities) There are 14 facilities certifications. carbon product life cycle's to better manage the 14045 standards ISO 14046 and ISO ISO 14067, has also implemented and eco-efficiency. emissions, water consumption

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 81 Air Emissions Control Low Carbon Buildings and Air pollutant emissions in 2019 include 208 tons of Green Factories 1 2 3 VOCs , 9.5 tons of SOx , 27.3 tons of NOx , 10.6 tons Increasing the energy efficiency and reducing the 4 of particulate matter , and 0 tons of ozone-depleting carbon emissions from buildings are critical in slowing substances5. ASEH reported slightly higher emissions down climate change. As part of ASEH’s green building 82 (4 metric tons, an increase of 2%) of volatile organic initiatives, the company had already begun to transform GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION compounds (VOCs) in 2019, mainly due to the increased existing factories and offices, and build new ones that production volume. conform to green building standards. In keeping with ASEH uses various techniques to manage and control ASEH’s commitment to low-carbon manufacturing, emissions from the manufacturing process including we are transitioning green factories into low-carbon wet scrubbers, activated carbon adsorption equipment, buildings by introducing the ‘carbon footprint of condensation equipment, chemical scrubbing, biological buildings’ concept in 2015, in which the carbon scrubbing, UV light, zeolite concentration rotor emissions of buildings were quantified and analyzed incineration system. throughout their lifecycle to drive carbon reductions from In addition to the existing infrastructure for meeting the design stage. future expansion, we plan to enhance the following In 2019, ASE K24 became the first ever semiconductor scopes in our gas emission management plan. packaging plant to receive a low-carbon building • Adopt materials with low/no VOC content to replace certification. Going forward, ASEH is in a leadership existing ones with high VOC concentration. position to work together with industry partners to

• Continue to equip facilities with high-efficiency build sustainable industrial parks. In addition to more processing equipment (such as the zeolite investments in low-carbon buildings, ASEH is also concentration rotor incineration system, active carbon evaluating clean manufacturing as an integral part of adsorption equipment, etc.). ‘green factory’ certification and we aim to have all of our new facilities duly certified in future. • Optimization of biological treatment systems via collaborative studies on the biological treatment 1 VOCs are calculated using public factors, and are either directly measured or efficiency of air pollutants and academic analysis of calculated using mass balancing. microbial composition and treatment efficiency. 2 SOx is calculated using public factors, or converted using the composition ratio. 3 NOx is calculated using public factors, or directly measured. • Adopt sealed negative-pressure design to improve 4 PM is calculated using public factors, or directly measured. 5 Only emissions of ozone depleting substances used as raw materials during gas collection efficiency and collect pollutants from manufacturing activities are considered. Other Vaporization activities related to manufacturing activities are not considered part of the business main activities and stationary sources. are therefore excluded from disclosure. K9 CL-C CL-M USI-NK K15 K24 K25 2020 Green Factory K9 Green Buildings Green Buildings Low Carbon Buildings Low Carbon K24 K25 CL-M K25 5 6 1 K22 K24 2019 K22 KH-dorm CL-B K-21 CL-K&L 2018 Taichung-B CN-SH Diamond) K26 CL-B CL-K&L Taichung-B K7 BCF ( CL-B CL-A 201 1

K26 K23 Gold) 4 CL-A

K14B 2016 K22 K21 Platinum, CN-HQ 4 LEED ( K3 K5 K12 K11 8 CL-K&L 2015 Qualified) Qualified) K11 2 K21 K16 K15 , 2014 Copper K7 K5 K4 K3 , Silver 1 , K12 2013 Diamond

Green Factory EEWH ( Green Certificte Green K12 o aon idin 2012

Green Factory Label" can be obtained after passing the certification of "Green Building certification" and "Clean Production Assessment". "Clean Production Assessment" is conducted by the Industrial Development Bureau (IDB) of the Ministry of Economic Affairs (MOE) the certification Label" can be obtained after passing Green Factory and based on the concept of "clean production" as defined by the United Nations Environment Programme (UNEP). 12 1 26 *

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 83 5.5 Environmental Expenditures and Investments

ASEH adopted the "Industry Guidelines for Environmental Accounting" published by Environmental Protection Administration of Taiwan. We combined our existing accounting systems with environmental control coding to classify our environmental expenditures into categories in accordance with the nature of costs incurred. Our environmental expenditure is calculated and analyzed quarterly to ensure data accuracy and facilitate effective assessment. 84 GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION Environmental Costs ASEH's total environmental costs for 2019 amounted to US$87.4 million, with capital expenditure and expense accounting for 48% and 52% respectively. USD million

2016 2017 2018 2019

Category Description Capital Operating Capital Operating Capital Operating Capital Operating Investments Expenses Investments Expenses Investments Expenses Investments Expenses

Pollution Air, water, other pollution prevention, 23.9 7.2 12.2 8.0 20.0 15.4 29.7 13.5 Prevention Cost etc. Operating Cost Resource Efficient utilization of resources, waste 4.1 11.8 12.4 15.0 8.6 12.0 10.6 15.5 Circulation Cost reducing, recycling, and disposal, etc.

Green procurement, recycling of used Upstream/Downstream Cost 0.9 0.7 0.56 0.3 0.4 1.3 0.7 3.6 products, etc

Manpower engaged in environmental improvement activities and environmental education, acquisition Administration Cost - 8.1 - 8.1 - 9.3 0.5 9.7 of external environment licenses/ certification, government environmental fees, etc.

Donations to, and support for, Social Activity Cost - 3.2 - 3.4 - 3.9 0.1 3.4 environmental groups or activities, etc.

Environmental Fines, recovery of the environmental 0.2 0.2 0.1 0.05 Remediation Cost degradation, degradation suits, and - - - - (0 major case*) (0 major case*) (2 major case*) (0 major case*) (Violation cases) insurance fees, etc.

Global environmental conservation cost and cost to develop products to curtail Others - 0.03 - 0.07 - 0.06 0.02 0.1 environmental impact at the product manufacturing stage, etc.

Total 28.9 31.2 25.2 35.1 29.0 42.1 41.6 45.8

* We defined major cases as the environmental-related fines or penalties greater than US$10,000. In 2019, we didn’t receive any major environmental-related fines or penalties, and we were not subjected to any major non-financial penalty or litigation that results in facility shutdown. 7.9 USD million 71.4 52.0 11.5 Benefits Economic - 2019 54,847 metric tons metric tons 28,158,345 Benefits 599,833 MWh Environmental 6.5 9.5 60.6 44.6 Benefits Economic - 2018 50,011 metric tons metric tons 22,934,123 Benefits 483,405 MWh Environmental 5.4 7.6 6.7 19.7 Benefits Economic - 2017 38,115 metric tons metric tons 15,175,519 60,988 MWh Benefits Environmental 6.0 6.4 27.5 15.1 Benefits Economic 2016 38,243 metric tons metric tons 15,096,545 Benefits 197,576 MWh Environmental Description Reduction in electricity costs due to energy saving projects Reduction in water costs due to water saving projects Reduction in waste disposal costs due to waste recycling Total

Category Cost Savings

Our estimated environmental capital expenditures for 2020 will be approximately US$24.3 million. The board of directors has resolved in 2020 to contribute around US$3.3 million for 2020 will be approximately US$24.3 million. The board of directors Our estimated environmental capital expenditures and Educational Foundation in environmental projects in 2020. (NT$100.0 million) through the ASE Cultural Environmental Benefits Environmental million. to US$71.4 for 2019 amounted environmental benefits environment. Our total impacts on the activities that reduce generated from environmental benefits ASEH records

GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION 85 Green Bond

To demonstrate our commitment on transition to low-carbon and climate resilient growth, ASE Inc. issued Asia's first corporate US$300 million Green 86 Bond through our subsidiary Anstock II Limited in GREEN MANUFACTURING AND LOW-CARBON TRANSFORMATION July 2014. The first green bonds matured in July 2017, and ASEH launched a second US$300 million Green Bond in 2019. Proceeds from the issuance of the bonds will be invested in developing renewable energy and related technologies, increasing energy efficiency, promoting energy conservation, reducing greenhouse gas emissions, recycling and reusing waste materials, and water conservation/purification/recycling. ASEH has created largest green factory cluster among world’s semiconductor assembly and test industry and Taiwan’s largest rate of water recycling plant. ASEH has obtained 26 Green Building certifications for 18 factory buildings and on an annual basis, the ability to reduce 350,000 tCO2e, and achieve an accumulated water recycling volume of 6.58 million metric tons. Going forward, we will continue to assess and plan meaningful green investments, with the aim of further promoting the use of green financial instruments in Taiwan, and driving the development of a low-carbon sustainable industry. Equal Respect and Communication Safety Workplace Training Effectiveness Competency Development Education Retention ASEH Talent Development Utilization Recruitment Career Planning Planning Appraisals Recruitment Performance Organization and Selection

ASEH is committed to protecting human rights, ensuring diversity in our to protecting human rights, ensuring ASEH is committed healthy and stimulating work employees with a safe, workforce and providing environment. cultivation by motivating to continuously invest in talent ASEH is committed and retaining highly their career within the company employees to further rights of our employees and employees. We respect the skilled and experienced and productive workplace for a safe, comfortable, healthy we strive to provide our employees. INCLUSIVE WORKPLACE INCLUSIVE

INCLUSIVE WORKPLACE 87 20 Key Performance 19

88 INCLUSIVE WORKPLACE 28,000 3.5 % 34 %

New Hire Employee Turnover Rate Compared Total of ASEH Headcounts to 2018 join Labor Union

2019 Material SDGs Business Actions KPI 2019 Target Status 2019 Performance 2020 Target 2025 targets Aspects

Employee Employee engagement at Employee engagement of Employee engagement at Employee engagement Achieved Talent engagement 73% or over over 83% 80% or over at 85% or over Ensure that all Cultivation and employees have access Development Reduced by approximately Reduced by approximately Turnover rate is less than Turnover rate is less than Turnover rate Achieved to vocational training 3% compared to 2018 3.5% compared to 2018 30% 20% and life-long learning Adopted by 70% of Adopted by 72% of Adopted by 75% of Adopted by 85% of opportunities Human resource Adoption of training company facilities Achieved company facilities company facilities company facilities development effectiveness system worldwide worldwide worldwide worldwide

Formulate and support Cases of occupational Zero cases of Zero cases of occupational Not One case of occupational Zero cases of occupational a comprehensive disease and major occupational disease and disease and major injury Achieved disease at USI disease and major injury workplace safety injury major injury Occupational framework to ensure Health and decent working • Disabling Injury Safety FR and SR average lower FR and SR 1% lower FR and SR 5% lower conditions for all Frequency Rate (FR) Not FR : 0.829 than the semiconductor than the semiconductor than the semiconductor employees across the • Disabling Injury 1 Achieved SR : 11.486 industry mean rate industry mean rate industry mean rate industry Severity Rate (SR)

1 Average disabling injury FR and SR in the Taiwanese semiconductor manufacturing industry in 2019 were 0.57 and 8, respectively. Total 438 (8%) (2%) 9,113 2,294 (32%) (58%) 16,645 3 28,490 2019 (44%) (56%) 12,557 15,933 China Americas s recruitment strategy has s recruitment ’ (4%) (9%) 2 7,065 (20%) (67%) 3,225 1,231 22,947 34,468 2018 (43%) (57%) 14,958 19,510 Taiwan Rest of Asia 850 (5%) (3%) 1,249 4,997 (18%) (74%) 20,614 27,710 2017 (52%) (48%) 14,429 13,281 Female Male 0 7,000 35,000 28,000 21,000 14,000 New Hires by Gender/Geographic 2 20 18 16 14 12 10 Rest of Asia 3% 7% 26% 64% 2019 2019 89,557 Nationality China 2% 8% 30% 60% 2018 2018 92,762 3 2% 36% 10% 52% 2017 2017 Taiwan Americas 68,789 0 0% 80% 60% 40% 20% Geographic Distribution 100% working in 25 sites in eight countries. Of these, 97% are full-time employees and 3% are contract employees. The percentage of and 3% are these, 97% are full-time employees working in 25 sites in eight countries. Of 90,000 60,000 30,000 1 120,000 s workplace culture, and contribute towards employee growth and the creation of a mutually respectful work environment. s workplace culture, and contribute towards 20 18 16 14 12 10 ’ 3% 7% 26% 64% 2019 2019 89,557 2% 8% 30% 60% 2018 2018 92,762 2% 36% 52% 10% 2017 2017 68,789 No. of person 0 0% The workforce data covers all of our manufacturing facilities, but excludes our sales, administrative and other offices located in U.S.A. and Europe. all of our manufacturing facilities, but excludes our sales, administrative and other offices located in U.S.A. The workforce data covers Rest of Asia: Japan, Korea, Singapore and Malaysia U.S.A. and Mexico Americas: s corporate recruitment policy takes into account the condition and culture of the local community where our facilities operate, and the relevant job characteristics. We recruit We recruit the relevant job characteristics. operate, and where our facilities of the local community condition and culture takes into account the recruitment policy s corporate ’ 80% 60% 40% 20% 1 2 3

100% 90,000 60,000 30,000 Total Employee 120,000

Taiwanese employees has increased to around 64%, followed by mainland Chinese employees at 26%. ASEH has also achieved an equal gender ratio in its workforce, 37% of which is 64%, followed by mainland Chinese employees at 26%. ASEH has also achieved Taiwanese employees has increased to around 49. The average cost of recruiting an employee is approximately US$500. aged 16 to 30, while 58% is aged 31 to provided momentum for the company to continue its growth and innovation, and increase its competitive edge to meet the needs of customers and the evolving market. edge to meet the needs of customers and innovation, and increase its competitive for the company to continue its growth provided momentum on the basis of race, gender, national against any employee or job applicant diversity and prohibits discrimination an inclusive recruitment policy that promotes ASEH has established strict compliance with local laws and and respecting human rights through The company is committed to upholding affiliation, sexual orientation or age. origin, religion, political 617 disabled employees at its facilities labor. In 2019, ASEH recruited a total of of Conduct, and forbids the use of child (Responsible Business Alliance) Code regulations and the RBA employees, we help the newly regulatory recommendations. For our foreign of employees with disabilities than local the company has a higher percentage around the world, and are often senior employees from at the workplace and mentors who the local culture, by providing translators to their new work environment and understand hired ones to adjust They are also not required to pay any simple and easy to understand language. are prepared in their native, or To ease their training, information and instructions their home country. recruitment agencies. fee or commission to hail from over 20 countries. Diversity As of the end of 2019, ASEH employees those enjoyed by their local colleagues. are entitled to the same benefits as All our foreign employees and inclusion form the backbone of ASEH employees ASEH has a total of approximately 89,000 6.1 Global Recruitment and Diversity Recruitment 6.1 Global ASEH executive search firms, service program, the R&D substitute internship programs, industry-academia employee referrals, campus recruitment, channels including through various 20 countries. ASEH in more than 28,000 employees recruited approximately boards. In 2019, ASEH and digital job fairs, online recruitment recruitment

INCLUSIVE WORKPLACE 89 44,180 (49.3%) 3,016 (3%) 44,180 (49.3%) 3,016 (3%)

45,377 (50.7%) 45,377 (50.7%) 86,541 (97%) 86,541 (97%)

Male Female Male Female Regular Employee Non-regularRegular Employee Employee Non-regular Employee

All Employee by Gender Employee Age Distribution Regular/Non-regular Employee Employee by Job Category

44,180 (49.3%) 44,180 (49.3%) 4,343 (5%) 3,016 (3%) 33,037 (37%)4,343 (5%) 3,016 (3%) 49,76933,037 (55.6%) (37%) 5,765 (6.4%)49,769 (55.6%) 5,765 (6.4%) 28,054 (31.3%) 28,054 (31.3%)

90 INCLUSIVE WORKPLACE

45,377 (50.7%) 86,541 (97%) 45,377 (50.7%) 52,177 (58%) 52,177 (58%) 86,541 (97%) 5,969 (6.7%) 5,969 (6.7%)

Male Female Regular Employee Non-regular Employee Skill Job Positions Male FemaleAge 16~30Age 50 AboveAge 31~49 AgeAge 50 16~30 Above RegularAge 31~49 EmployeeManagementAge 50Non-regular Above Positions Employee EngineeringManagement Positions Positions Engineering Positions Female Non-regular Employee AdministrationAdministration Positions Positions Skill Job Positions Age 31~49 Administration Positions Skill Job Positions Male Regular Employee Engineering Positions Age 16~30 Management Positions

Disabled Employee by Gender Diversity Indicator Remuneration Ratio 4,343 (5%) 33,037 (37%) 49,769 (55.6%) 5,765 (6.4%)2017 2018 2019 2018 2019 603 4,343 (5%)617 33,037 (37%) 49,769 (55.6%) 5,765 (6.4%) 650 28,054 (31.3%) Female share of total 28,054Executive (31.3%) level 0.99 0.99 workforce (%) 49.72% 49.95% 49.33% 520 Management level (base salary only) 0.88 0.83 241 241 Females in management 407 positions (% of total 28.61% 23.89% 23.56% management workforce) Management level (base salary + 390 0.85 0.82 other cash incentives) 160 Females in junior management positions 34.29% 34.18% 33.11% 260 (% of total junior Engineering position level 1.04 0.97 management positions) 362 376 Females in top Administration position level 0.93 0.91 130 247 management positions 11.50% 12.82% 11.6% (% of total top 1 52,177 (58%) management positions) 5,969 (6.7%) Skill job position level 0.99 0.96 0 52,177 (58%) 5,969 (6.7%) 2017 2018 2019 Females in management positions in revenue- Age 16~30 Age 31~49 Age 50 Above Management Positions2 Engineering Positions generating function (% 22% 22.27% 21.31% Male FemaleAge 16~30TotalAge 31~49 ofAdministrationAge revenue-generating 50 Above Positions SkillManagement Job Positions Positions 1Engineering Top management Positions positions: Director and vice presidents level. function managers) 2 Revenue-generating function: e.g. sales function, excluding support functions such Administration Positions Skillas HR, Job IT Legal,Positions etc. 80 >73 2019 75 78 78 76 78 74 79 83 82 Target 81 81 87 81 Female Female The Work 83 82.1 2019 77 79 79 77 79 76 79 82 82 Company Practices Brand 75 Male 73.6 2018 83 81 85 81 Male 75 73.6 2017 76 78 78 76 78 74 79 83 82 64 The work 70.6 All Employee 2016 Experience 82 81 86 81 All Employee The Basics Year Performance % Survey Item Leadership Americas Rest of Asia China Taiwan Experience at Work (%) Company Practice The Basics The Work Performance Brand Leadership Influence Engagement Say Stay Strive Satisfaction/ Engagement (%) Conduct Coverage (%) Breakdown of Engagement Survey Result Engagement by region Engagement Survey Result & Target Engagement Survey e committee Interdisciplinary technology platform Make an All-out Effort d Not only do the best at the work, but also willing to pay extra effort for the success Open mechanism s 23 global facilities, accounting for ’ communication and a grievance c Stay Fair and Willing to comprehensive performance review Has a strong sense of belonging and eagers to be a one organization the of b benefits Highly competitive compensation and The Behaviors of Employee Engagement The Behaviors of Employee s most valuable asset and maximizing the potential of our human resources to create value is and maximizing the potential of our human s most valuable asset ’ Promote Willing to Often say good things of the company to colleagues and customers s sustainable development strategy. Since 2017, ASEH has collaborated with human resource consulting with human resource consulting strategy. Since 2017, ASEH has collaborated s sustainable development ’

a Talent Attraction and Retention Attraction Talent employee A multi-faceted

engagement survey

Employee Engagement Surveys Employee Engagement Employees are a company part of ASEH biennial employee engagement survey, to obtain employee feedback firm, Aon Hewitt, to conduct a comprehensive serve as a tool for attracting, developing and retaining talent. In 2019, we and measure the level of engagement, and and indirect employees at the company administered the survey to 67,204 direct under six major categories (corporate branding and culture, management, 82.1% of total employees. Fifteen aspects synergy, and compensation and benefits) were used to assess employee training and development, work environment, company achieved higher employee engagement in 2019 largely due to engagement. The results indicated that the synergy, and corporate branding and culture. policy execution in compensation and benefits, 6.2 innovative technologies full potential to create to unleash their for employees a conducive environment ASEH provides and on attracting is strongly dependent growth of the company skills. The effective management or to demonstrate strategy: actions outline our and the following retaining talent

INCLUSIVE WORKPLACE 91 Performance Review, Compensation, and Performance Appraisa Benefits Policies Evaluation Object Frequency Approaches

ASEH conducts a fair and equal performance appraisal Work project targets and quantifiable performance indicators of all employees across the board on a biannual basis. are presented by employees to their direct supervisors for discussion and confirmation before being set as preliminary Ranking and The review involves management by objectives and targets. In 6 months, employees are required to present their Management by All Employee Twice a year 92 self-evaluation to their supervisors, who shall assess their Objectives performance ranking, a multifaceted evaluation, and performance and determine if the performance targets have INCLUSIVE WORKPLACE equipment operator certificate reviews. Employees been reached. A final evaluation is made before all employees in each department are ranked according to their performance. with poor performance ratings are offered employee counselling on a case-by-case basis by their managers, Work project targets and quantifiable performance indicators are presented by employees to their direct supervisors for who are able to make adjustments to their roles Management, discussion and confirmation before being set as preliminary Multidimensional Engineering, targets. In 6 months, employees are required to present their Twice a year and focus on individual performance. Our full-time Performance Appraisal Administration self-evaluation to their supervisors, who shall assess their employees enjoy standard compensation and benefits1. Position Employee performance and determine if the performance targets have been reached. A final evaluation is made before all employees ASEH also carries out an annual analysis of local market in each department are ranked according to their performance. salary structures to ensure competitive compensation for According to the various types of machine equipment at each Qualification Certificate Skill Job Position station on the production line and the need to inspect products our employees. Twice a year Evaluation Employee and resolve anomalies, qualified instructors are assigned to evaluate the performance of production line employees. To motivate and recognize employee efforts, we devised monthly bonus incentive and annual profit-sharing Turnover Rate schemes to reward employees. Outstanding employees 2016 2017 2018 2019 receive monthly cash bonuses based on our business 2 results, and additional annual bonuses are awarded to Total turnover rate 3.46% 3.62% 3.2% 2.91% top performing employees who have met and achieved Voluntary turnover rate 3.41% 3.58% 3.15% 2.88% beyond their goals within the financial year. In 2017, • Analyze the root causes of employee turnover and addressing the findings especially in the areas of management issues and measures of central tendency, with the respective department that faces 2018, and 2019, ASEH paid company employees employee turnover. approximately NT$5.51 billion, NT$6.88 billion, and • Enhance company policy in employee recruitment, development, utilization and retention in tandem NT$7.6 billion in bonuses respectively. ASEH also has in with refining management leadership. Preventive measures place, an employee stock option program for retaining • Create open communication channels for senior executives to communicate directly with frontline employees on the company’s plans and developments for the future. valuable employees. Employee stock options are valid for • If the reason for an employee’s intention to leave stems from an issue that can be resolved by the 10 years from the issue date. Company, such as a health-related issue (e.g., inability to stand for long periods), marriage, or family commitment, the manager can make reasonable adjustments to the employee’s duties or work environment, or permit a leave of absence in order to retain the employee.

1 For more information on our employee benefits and retirement policies, please refer to the annual report (Page,122~128) 2 Turnover rate is calculated by dividing the number of employees who left the company (either by resignation or termination) by the total number of employees and then dividing by 12 months. To cultivate management talent, ASEH has invested heavily in a management development program communication, leadership, provide to designed and influencing skills training for management-level personal growth achieve them help and employees process, training the Through self-actualization. and level employees we hope that the management to members team their encourage turn in would building thus company, the with grow and learn meaningful and valuable careers together. has ASEH talent, (R&D) technical cultivate To incorporated technological innovation, problem solving and team cohesion into its corporate has established To that end, the company culture. an interdisciplinary professional technology platform and SiP/ manufacturing a smart and formulated In blueprint. service integration heterogeneous leading with collaborating is closely ASEH parallel, and practical universities to design theoretical manufacturing to applied be can that courses automation and provide customers with innovative solutions. To cultivate talent at the manufacturing level, raising productivity standards and execution are key to addressing the dichotomy of high volume and in Flexibility manufacturing. high-mix/low-volume the manufacturing line and capacity allocation will rate utilization to maximize allow the operation within space and equipment limitations. Management Talent Leadership Communication Influencing Technical (R&D) Talent Innovation Problem solving Cohesion Manufacturing Talent Productivity Execution 6.3 Talent Cultivation Development Cultivation 6.3 Talent is driven by the development At ASEH, sustainable commitment of our spirit, expertise, and innovative to improve our We continuously strive employees. at for employees development programs training and and manufacturing the management, R&D/technical invests in human capital through level. Each year, ASEH consultants and top collaboration with management organizational growth, accelerate universities, to meet and maintain our competitive the rate of innovation advantage. approximately US$8.7 million In 2019, ASEH invested and poured in 11.5 million into employee development at an average cost of hours of employee training, hours per employee. ASEH US$101 and 133 training scholarships to 174 also offered company-sponsored education and degrees in employees seeking continuing fields related to their work. 50% 40% 30% 20% 10% 0 2019 34.48% 29,840 % of Total Employee 2018 32,376 34.79% Communcation 2017 24,873 36.09% 0 7,000 Number of Union Members 35,000 28,000 21,000 14,000 Union Statistics employees' grievance and feedback employees' grievance and regular symposium with foreign discuss work experiences, employee every month sessions to GM/Plant Director employees' opinions/suggestions directly labor representative quarterly • and respond to Employee Opinions Box - to collect • - to share and Employee/Foreign Employee Symposium • counseling Counseling Room - to provide one-on-one • - to deliver General Manager/Plant Director Mailbox • - to have a communication between HR & Labor Meeting with ASEH, and 1 Propaganda and messages from top management and messages from top and safety, and company compliance policy, health express their opinions welfare-related information

The signed collective contract includes ASEH Kunshan, Suzhou, Wuxi Japan, Suzhou, includes ASEH Kunshan, The signed collective contract Korea, SPIL Suzhou, and USI Mexico about 12% of total employees. • news Intranet - to publish company's latest • group-wide updates E-mails Announcements - to announce • related to labor Bulletin Boards - to provide information • and let employee to Periodical Issue - to interview employee • broadcast employees' On-Site TV News/Information - to hold bilateral quarterly meetings to discuss and hold bilateral quarterly meetings to discuss resolve employee welfare issues. Labor Unions We have labor unions that have served our our employees for many years, at a number of facilities including ASE Kaohsiung, Shanghai(A&T), Kunshan, Suzhou, Wuxi, Weihai, Korea, Japan, Mexico, Singapore and USI Zhangjiang, Kunshan, total and SPIL Suzhou. At the end of 2019, the accounting number of union members was 29,840, The for around 34% of ASEH total headcount. unions sign a collective contract

1 Employee Communication Employee the for them to receive channels created various communication employees and has to the voices of its ASEH listens Human Resources the workplace. The or concerns about or express any opinions about the company latest news channels: communication provides several two-way Department

INCLUSIVE WORKPLACE 93 Cultivating Management Talent Internal Lectureship

To inculcate our corporate DNA, accumulated management expertise and innovation values in our management team, 4,395 15 4,393 45 4,500 the company continues to promote these 3 key courses on influencing skills: Interdepartmental Project Management, 3,909 14 266 305 4,000 Management Training Program (MTP), and Train the Trainer (TTT) Program. The teaching materials were co-designed 220 3,500 973 883 by management level employees with extensive experience, and classes are conducted by certified instructors who had 934 undergone the company’s instructor training for employees. ASEH’s internal training program successfully facilitates 3,000 94 the transfer of knowledge and fully leverages on the use of in-house expertise to cultivate the next generation of 2,500 management personnel. In 2019, ASEH completed the management training of approximately 5,700 employees. 2,000 INCLUSIVE WORKPLACE 1,500 2,741 3,141 3,160 Cultivating R&D and Technical Talent 1,000 500 To meet ever-changing customer needs for increased product functionality and quality, we have established industry- 0 academia programs (Industry 4.0, artificial intelligence, big data) designed to train our employees in manufacturing 2017 2018 2019 automation, and AI-powered early warning and emergency response systems. The application of knowledge in these Taiwan China Rest of Asia advanced fields enable the company to improve product quality and yield, and maximize production capacity and Americas Total revenue. In 2019, ASEH trained approximately 28,000 employees. The Kirkpatrick Model for the Evaluation Cultivating Manufacturing Talent of Training Effectiveness At the manufacturing level, standard operating procedures and operational analysis are applied to production management, to improve product quality and capacity utilization. Key training courses include; TWI training, production The Corporate Sustainability Committee’s Employee Care planning and, control and improvement of manufacturing processes. These methods of training enable supervisors to and Development Taskforce conducts annual review provide localized training to production staff by deconstructing and improving workflow, as well as fostering positive of performance indicators at each facility and explores interaction with employees. In 2019, ASEH trained approximately 4,300 employees. improvement measures for employee training and development with each site’s HR department. To improve Training Program statistics ASEH’s overall competitiveness, we have established the Employee Development Dashboard since 2015, 2017 2018 2019 and applied the Kirkpatrick Model to assess training effectiveness: Overall Training Hours 8,315,240 9,619,786 11,549,300 1. Reaction evaluation - to assess course quality; the indicator for this level is the course satisfaction survey Average training hours - Total Employee (Hours) 121 104 133 score. Average training hours - Male (Hours) 110 116 145 2. Learning evaluation - to assess the employee development model; the indicator for this level is the Average training hours - Female (Hours) 131 92 121 status of the training system. Training Expenses (US$) 2,068,800 4,488,000 8,760,000 3. Behavior evaluation - to assess employees’ application of what they have learned; the indicator for this level is Average training expenses per employee (US$) 128 116 101 the competency improvement rate. % of open positions filled by internal candidates1 76.9% 69.3% 76% 4. Results evaluation - to assess the contributions of trained employees to the organization; the indicators for this level are employee engagement and the 1 (Management position promotion employee - New hire manager employee) /Management position promotion employee retention rate of key talent. Target groups: engineers Business impact R&D engineers, process engineers, equipment manufacturing and benefits: Development of improved automated equipment, material handling systems and automated migration models for enhanced manufacturing efficiency and capacity utilization; algorithms to identify significant parameters for yield improvements to greatly reduce product testing time, achieve product inspection goals, and improve product quality and customer satisfaction. Scope: such as goal-setting, planning, execution and Basic management skills about empowerment and motivation skills, control. Participants learn communication with their superiors, colleagues, how to master effective productive inter-department relations, and and subordinates, manage teams. Through mentoring and nurturing their build high-performance learn to hone their leadership skills. subordinates, managers Target groups: and deputy managers/supervisors Facility directors/managers at the manager/deputy manager level areImpact and benefits: Employees and training to build performing teams able to apply their management subsequently, improve leadership skills, manage projects effectively and overall operational efficiency. Key focus: of cyber-physical Smart manufacturing is driving the integration consists of manufacturing infrastructure. IC assembly manufacturing of internet-connected several hundred steps, and the implementation manufacturing. machines is one of the many enablers of smart Scope: engineering, electrical Interdisciplinary applications involving mechanical networks and engineering, automatic control, Python, and neural to automatic algorithms. Participants learn to apply their knowledge systems and intelligent virtual metrology systems, predictive maintenance how to utilize AI- yield management systems. Participants also learn enhance production powered and big data-driven management to product safety and information data, strengthen cybersecurity for sensitive machinery data information. Key focus: Key focus: motivation skills. leadership and Self-improvement, rate rate project success rate project success rate KPI: course satisfaction and completion rates KPI: course satisfaction and completion rates KPI: course satisfaction KPI: presentation pass rate, competency improvement KPI: presentation pass rate, competency improvement KPI: presentation pass KPI: key talent retention rate, employee engagement rate, KPI: internal training instructor certification KPI: key talent retention rate, employee engagement KPI: key talent retention certification rate, KPI: internal training instructor Number of participants: 28,000 Percentage of employees trained: 32.42% Number of participants: 5,700 Percentage of employees trained: 6.67% 1 2.3 1.9 ROI ROI Results Results Reaction Reaction Learning Learning Behavior Behavior

1 1 4 3 2 4 3 2 l l el l l el l l Lev e e e Lev e e e v v v v v v Le e e Le e e L L L L

Human capital benefits generated for each dollar invested in employee development. 1 Training Courses in Smart Manufacturing Leadership Training Program Leadership

INCLUSIVE WORKPLACE 95 Training Courses in Manufacturing

Key focus: ROI Establish standard operating procedures and utilize operational analysis to manage production issues.

L 1.4 e KPI: key talent retention rate, employee engagement Scope: v 96 e Training includes key areas in production planning, control and l improvement of manufacturing processes, and TWI: job instruction (JI), INCLUSIVE WORKPLACE 4 Results KPI: internal training instructor certification rate, job methods (JM), and job relations (JR). The training enables supervisors project success rate L to provide localized training to production staff by deconstructing e v and improving workflow, as well as fostering positive interaction with e l Behavior KPI: presentation pass rate, competency improvement employees. 3 rate Target groups: L Frontline managers (team leaders or management trainees) e v Learning el 2 KPI: course satisfaction and completion rates Business impact and benefits: Quality control training helps frontline managers deconstruct, analyze and Number of participants: 4,300 optimize tasks, so as to establish standard operating procedures and reduce L waste and rejected products. The training also helps in the prevention of ev Reaction Percentage of employees trained: 5% el 1 accidents, hazards, and equipment damage, leading to improved work quality, product yields and higher employee retention rates.

Assessment Indicators of Employee Training Effectiveness

ROI L e KPI: Key Talent Retention Rate 2019: 91.85%, 2018: 91.82%, 2017: 91.62% v e l 4 Results KPI: Internal Certified Trainer (unit: person) 2019: 4,393, 2018: 4,395, 2017: 3,909 L e v e l Behavior 3 KPI: Training System Establishment Rate 2019: 92%, 2018: 84%, 2017: 80%

L e v Learning el 2 KPI: Score of Course Satisfaction Survey 2019: 92%, 2018: 91%, 2017: 92%

L ev Reaction el 1 Validation Develop occupational health and safety management inspection regulation and procedure handbook for facility security personnel to follow and inspect facility operations and fire-fighting and safety Coordinate basis. regular a on equipment disaster prevention drills with local government's fire-fighting and disaster prevention units. Improvement Organize occupational health and safety education and training in worker' local mother tongue and post and promote health and safety related information in conspicuous workplace areas. Safety Requirement in compliance management systems Develop OHS 18001, RBA Code of with ISO 45001, OHSAS and regulations. Conduct, and local laws Risk Assessment and risk assessment Develop hazard identification handbook, implement management procedure identification regularly, annual facility safety risk improvement and propose high risk factor to low risk. The risk measures to reduce it down rating determined is based on severity, probability of occurrence and exposure ratio. ISO 45001 certification: ASE Kaohsiung, SPIL Taiwan, USI Taiwan, ISO 45001 certification: Zhangjiang, Shenzhen, Kunshan Material, Kunshan,Suzhou, Weihai, Wuxi, Korea, Singapore, SPIL Suzhou, and USI Mexico OHS Management Processes OHS Management Shanghai_ : ASE Chungli, Shanghai_A&T, OHSAS 18001 certification 1 Work Safety Physically Health and Demanding Occupational Communication Injury and illness Machine Emergency Preparedness Safeguarding Safety Housing Hygiene Industrial Food, and Sanitation, Occupational OHS Management Aspects We have identified operating environments in our operating We have identified noise, hazardous which ionizing radiation, facilities in create greater risk. dust, etc. chemical substances, such environments are provided Personnel working in regular physical checkups as with especially thorough equipment. Measures well as high-quality protective and monitor the health of are also taken to protect while ensuring the personnel in these environments information. In case of immediate privacy of their health (e.g., a fire, earthquake, gas leak, danger at our facilities emergency), employees may stop chemical leak, or other does not pose a safety threat to work, when doing so and immediately proceed other employees or themselves, area and report to their to the designated evacuation managers. . Such actions facilitate 1 health and safety. The key focus of health and safety. The ’ s OHS management includes OHS management s OHS management ’

ASEH systems and health promotion. System OHS Management have established All ASEH facilities worldwide and formulated managementmanagement organizations with ISO methods and procedures that are in compliance 45001 (Occupational Health and Safety Management and Safety Systems), OHSAS 18001 (Occupational Health Conduct, and Management Systems), the RBA Code of procedures local regulations. In addition, regular review so as to were set up to effectively prevent accidents objective. achieve the "zero accidents" management on ASEH's global facilities conduct regular checks systems occupational health and safety management and obtain relevant certifications ASEH is committed to providing employees a safe, to providing ASEH is committed and at the conducive work environment, healthy and of contractors and ensuring the safety same time, We have formulated a set of visitors at our premises. and safety (OHS) management occupational health prevent occupational disasters standards to effectively and protect workers 6.4 Occupational Health and Safety Health and 6.4 Occupational the effective tackling of long-term problems that impact the effective tackling of long-term problems Our employee health, absenteeism and accidents. to the new facilities are also in the process to transition ISO 45001 standard. safety, ASE's global facilities observe occupational emergency response, work injury and occupational disease prevention, industrial hygiene, physical health and labor work, machinery protection, public covered accommodation, health and safety information safety under the compliant with local health and regulations. On an annual basis, we assess and identify risks for all new or modified manufacturing processes ascertain risks and establish control procedures where needed.

INCLUSIVE WORKPLACE 97 Occupational Injury Management Occupational Injury Statistics and Preventive Measures 2017 2018 2019

Established procedures for the management of No. Of Occupational Injury Accidents 73 111 156 occupational hazards and incident reporting and 3 Injury Rate 0.098 0.128 0.165 investigation, are in place at all ASEH facilities Lost Day Rate4 2.163 2.470 2.502 98 worldwide. In the event of an occupational injury, the incident should be managed according to company Occupational Disease Rate5 0 0 0.001 INCLUSIVE WORKPLACE policies and local regulatory guidelines, and reported Injury Frequency Rate 0.496 0.640 0.829 to the respective local authority within the stipulated Injury Severity Rate 9.243 11.376 11.486 timeline. Injury incidents and preventive measures are reviewed each quarter to move our facilities closer to our goal of zero injuries. There were no deaths due Occupational Injury/Diseases Improvement to occupational injury at ASEH facilities in 2019. The Type of year’s total number of occupational injuries was 156, No. of incidents Main causes of the occupational Improvement plans injury the occupational injury rate was 0.165, the lost day injury Employees Contractors rate was 2.502, the occupational disease rate was Improper use of dicing Conduct factory-wide safety campaign, 1 0.001, the disabling injury frequency rate was 0.829, instruments, eg. exerting provide cut resistant gloves to all employees and the disabling injury severity rate2 was 11.486. Physical injuries 138 4 heavy pressure resulting handling dicing instruments/equipment. For more information, please refer to the Statistical in displaced blades, not Replace manual handling with safe dicing wearing cut resistant gloves equipment (embedded into the machinery). Information on Occupational Safety and Health of During chemical spraying Beef up training on the chemical feeding worker in the appendix. by a contractor, a worker process and the wearing of protective Chemical injuries 4 2 was accidentally splashed equipment. Improve and optimize the and sustained facial burns. working conditions for chemical spraying. Promote information on proper techniques Poor posture while moving Ergonomic for transporting items safely and avoiding 14 0 items resulting in muscle injuries over-exertion. Retrofit the temporary storage strain. area for better movement of goods. Due to a temporary increase in workload, the individual suffered from finger tendinitis, which is deemed an occupational disease under Mexican labor law. We monitored the employee’s health situation and found no Occupational 1 0 Finger tendinitis sign of relapse after a 36-day leave. ASEH diseases shall monitor and evaluate the physiological and psychological effects of extra workloads 1 Disabling injury frequency rate= Disabling injury cases × 1,000,000 / Total on its employees and make appropriate actual working hours arrangements for job rotation to prevent 2 Disabling Injury Severity Rate (S.R.) = Disabling injury work loss days × 1,000,000 / Total actual working hours similar cases from happening in the future. 3 IR = Total # of injuries / Total hours worked x 200,000, excluding traffic Note: Occupational injury also includes biological injuries and psychological injuries. ASEH did not detect any incidents in these two categories in 2019. accidents 4 LDR = Total # of lost days / Total hours worked x 200,000 5 ODR = Total # of occupational diseases cases / Total hours worked x 200,000 Filing the project closure report for record Contractors presenting operation safety management proposals Training personnel who enter the plant and informing them of likely hazards Performing periodic patrol inspection according and to the safety checklists for before, during after construction Contractors in-plant Construction Contractors in-plant Construction Procedures Contractor Operation Safety Operation Contractor Management contractor management have established ASEH facilities be mechanisms can safety management plans to assure inside the facilities when contractors work carried out occupational injuries for contractors and the goal of zero are eight types of operations can be achieved. There ASEH facilities, including pipeline, entailing high risks in space, live-line work, cranes hot work, confined chemical filling work and operation, elevated operation, Guidelines for high-risk operations working on the roof. to serve as the basis for construction have been instituted to request contractors for control. ASEH will continue to present proof that they meet the high-risk operations in OHSAS 18001 and ISO 45001. requirements specified Cordoning off the site of an accident until the Cordoning off the site of an accident until occupational safety unit and the competent local authority have completed the investigation to and given permission for cordon removal reoccur assure the same injury accident does not Reporting the injury incident to the occupational safety unit in the facility (who/what/when/where) Performing initial medical treatment before taking the injured to the hospital injury The occupational safety unit reporting the incident to the local competent authority Analyzing the causes of injury accident and working out measures for long-lasting improvement; filing the accident report for record

Occupational Injury Incident Handling Handling Injury Incident Occupational System and Reporting Incident Reporting Occupational Injury Procedures ASEH facilities have established occupational accident occupational accident have established ASEH facilities and procedures reporting and investigation and incident an occupational injury procedures. When management standard handling procedure is incident occurs, the is reported to the competent carried out and the incident to management regulations local authority according Injury incidents and and local laws and regulations. measures are reviewed each improvement of preventive plant is moving forward to the goal quarter to ensure the of zero injuries.

INCLUSIVE WORKPLACE 99 Disaster Response and Emergency Drills Emergency Response to the Novel Coronavirus Disease (COVID-19) All of our manufacturing facilities develop disaster response and recovery plan and conduct full-scale emergency drills annually in cooperation with the local Stringent health control measures were implemented at all ASEH facilities (including employee dormitories), authorities. Various scenarios are simulated at these drills and epidemic preparedness through effective communication and early preventive measures help to mitigate 100 the impacts from the disease.

to improve our disaster response plans. In 2019, we INCLUSIVE WORKPLACE completed 400 drills for earthquakes, fire and chemical In compliance with local health regulations and SOPs for epidemic preparedness, we have established an disasters. ASEH Chungli Facility apply outstanding fire epidemic preparedness task force to curb the spread of COVID-19. The preparedness program include safety management award in the Workplace. conducting mock scenarios and, activating emergency response and support coordination, to protect our employees, suppliers and customers. The three major aspects of our epidemic preparedness and response Outstanding Fire Safety plan are as follows: Management in the Workplace 1 Emergency response plan: The ASE Chungli Facility was awarded the exemplary workplace for outstanding fire safety Compulsory mask-wearing, temperature checks, and hand sanitization at all facilities management in recognition of its high standards Employees, suppliers, and customers are required to fill out a health declaration form with their in public fire safety and the establishment of a travel history for ASEH to carry out risk management. comprehensive fire safety system based on the American National Fire Protection Association Provide stable internet connections for remote video conferencing so as to reduce the need for (NFPA) code (the NFPA standards are stricter business travel. than Taiwan’s regulations). High-tech industries Mandatory card access for personnel movement around the facility, and the use of data analytics generally use an array of complex equipment for contact tracing purposes. and raw materials. To ensure the safety of personnel at our facilities, all disaster- and 2 Prevention of infection and transmission: earthquake-resistant designs are required to Personnel with fever or other flu symptoms are prohibited from entering the facilities and should follow the relevant standards and regulations, self-isolate at home. and are subject to annual building inspections and fire safety equipment maintenance by Employee cafeteria are retrofitted with individually partitioned dining tables. professional consultants/technicians. In 2019, Employees of the same department are separated into groups and work in different areas. ASEH completed the following fire safety applications online: 3 Additional support for employees to mitigate impact: 1 Online fire safety management system Room rate subsidies for employees and their family members undergoing quarantine at designated hotels. 2 Electronic workflow management system for fire safety self-management and weekly Purchase and/or manufacture protective equipment including masks to be distributed for employee inspections use.

3 Electronic workflow management system for drilling operations

ASEH Facial Mask Factory - Sustainable action to protect our employees protect our action to - Sustainable Mask Factory ASEH Facial Internally, we have framework. of a pandemic preparedness the development to the crisis through been actively responding ASEH has of the COVID-19 pandemic, In the wake powered by AI. system an advanced data management and developed our facilities worldwide special taskforces at established health and public worldwide by governments or mandated been strongly recommended and has hence the spread of Covid-19 key role in mitigating facial masks plays a The use of to be effective in curbing the coronavirus epidemic and has been proven from the very beginning of the the use of surgical masks was made mandatory authorities. In Taiwan, masks has led to initial shortages, in public places. The strong demand for at work, and encouraged to wear one our employees are required to wear masks transmission rates. All to our employees and their families. causing a lot of anxiety setting up a production line at ASE of high-quality surgical masks by US$0.3 million into the production of our employees, ASEH is investing approximately To protect the health made to acquire a medical device established, and an application was 6,000 surgical masks per hour has been clean room that is capable of producing Kaohsiung. A class 100K us to provide a safe and comfortable to ASEH employees in Taiwan, allowing masks shall be provided free of charge Ministry of Health and Welfare. The surgical permit from Taiwan’s company’s holistic approach to business operations, as part of the of surgical masks will remain in ASEH’s in the midst of the pandemic. Production workplace for employees infectious diseases. from COVID-19 and other dangerous preparedness and protect our employees strengthen pandemic

INCLUSIVE WORKPLACE 101 Health Promotion

The healthy workplace development principles proposed by the World Health Organization (WHO) stipulate that a healthy workplace must account for the following aspects; "Physical Work Environment," "Psychosocial Work Environment," "Personal Health Resources," and "Enterprise Community Involvement". Moreover, it must strive for continuous improvement by implementing processes of integration, needs assessment, prioritization, planning, execution, evaluation, and improvement. ASEH provides our employees with various medical, health and psychological counseling services, formulates employee health management measures based on the concept of preventive healthcare, emergency infectious disease response 102 procedures, emergency rescue procedures and maternal health. The company identified employees with high health risks and offered them health improvement plans as well as inviting them to participate in health improvement activities. INCLUSIVE WORKPLACE

Key achievements from the healthy workplace promotion in 2019:

Aspects Key activities Key achievements

• Ergonomic assessment of workplace • Onsite assessment by ergonomics specialists on the workplace environment of Workplace physiological environments approximately 450 employees health • Root cause assessment of occupational • Approximately 235 employees attended courses on ergonomics-related hazards, injuries increasing employee awareness to 98%

• Follow through on reports of workplace • Setting up of an independent counselling center to provide professional counselling bullying to employees Workplace psychosocial • Training on health and safety topics • Provided occupational safety and health training to approximately 156,000 health employees, accumulating a total of approximately 282,000 training hours • Talks on occupational health and spiritual well-being • Organized 44 talks for approximately 2,900 employees

• Invested approximately US$3 million for the health screening of more than 82,400 • Regular health screening for general employees. employees and special health screening Personal health for employees working in higher-risk • Lifestyle and wellness consultation (eg. quitting smoking, weight loss and resources environments psychological); approximately 472 employees participated in weight loss programs and lost a combined total of approximately 485 kg; a total of 41 employees • Family medical clinics participated in smoking cessation programs.

• Community-based medical and healthcare • Smart mobile clinic offering medical and healthcare services in rural areas Community services involvement • Long-term care and community event/educational programs for senior citizens • Promotion of community sporting events

RESPONSIBLE RESPONSIBLE PROCUREMENT to partnering with our suppliers to ASEH is committed conditions in ASEH's supply chain ensure that working are treated with respect and are safe, their workers business operations are environmentally dignity, and that responsible and conducted ethically. of the ASEH The supply chain is a critical extension in the sustainable value chain. We are actively involved ensure that our tier- development of our supply chain to high-quality products 1 suppliers and contractors provide ethical and and services to ASEH in a sustainable, responsible fashion.

RESPONSIBLE PROCUREMENT 103 20 Key Performance 19

104 RESPONSIBLE PROCUREMENT 115 58 % 100 % 100 % 500

Supplier Sustainability Percentage of Non-tier 1 Suppliers’ Conflict Minerals DRC Conflict-Free Supplier Conflict Audit included for Management Compliant Supplier Ratio Products Minerals Survey (by total procurement amount)

2019 Material 2019 SDGs Business Actions KPI Status 2019 Performance 2020 Target 2025 Target Aspects Target % of DRC Conflict-Free product All products lines (100%) are 100% of product lines are 100% of product lines are lines of Packaging and material 100% Achieved DRC Conflict-Free DRC Conflict-Free DRC Conflict-Free services % of DRC Conflict-Free All products lines (100%) are 100% of product lines are 100% of product lines are product lines of Electronic 100% Achieved DRC Conflict-Free DRC Conflict-Free DRC Conflict-Free manufacturing services # of supplier sustainability 115 raw materials supplier 100 raw materials suppliers 100 raw materials suppliers audits for raw materials 100 Achieved sustainability audits were sustainability audits sustainability audits Ensure that all employees suppliers completed across the business and % of critical direct material 100% of critical direct Not 70% of critical direct material 85% of critical direct material supply chain earn a wages suppliers completing RBA SAQ 85% material suppliers completed Achieved suppliers completed RBA SAQ suppliers completed RBA SAQ that allows them to support (Self-Assessment Questionnaire) RBA SAQ the education of their Sustainability 100% of critical direct dependents and ensure that 79% of critical direct material 70% of critical direct material Supply Chain material suppliers of our there is zero child labor. suppliers of our packaging suppliers of our packaging % of purchasing amount packaging and material and material service that and material service that of non-tier 1 suppliers that 65% Achieved service that complete complete workers' human complete workers' human conduct risk assessment workers' human rights rights risk assessment and rights risk assessment and risk assessment and improvement improvement improvement Non- tier 1 suppliers Non- tier 1 suppliers Non- tier 1 suppliers % of purchasing amount conducted risk assessment conducted risk assessment conducted risk assessment of non-tier 1 suppliers that 45% Achieved with 58% of purchasing with 50% of purchasing with over 50% of purchasing conduct risk assessment amount amount amount Substantially reduce emissions % of raw material suppliers 53% of purchasing amount 70% of purchasing amount 80% of purchasing amount from our supply chain and with 80% of purchasing Not 60% suppliers' obtaining suppliers' obtaining suppliers' obtaining our operations, in alignment amount obtaining Greenhouse Achieved Greenhouse Gas verification Greenhouse Gas verification Greenhouse Gas verification with climate science. Gas verification 42% Europe Others 94% were identified. 2 19.2% 0.3% Rest of Asia U.S.A. 2.1% 6% Direct materials packaging materials Indirect and Critical Supplier NonCritical Supplier Taiwan China 5.9% 84% 16% 2019 Raw Materials Supplier Distribution Area (By annaul Procurement amount) 30.6% 42% Europe Others

94% 19.2% 0.3% Rest of Asia U.S.A. 2.1% 6% Direct materials Indirect and packaging materials Critical Supplier NonCritical Supplier Taiwan China 5.9% 84% 16% 2019 Critical and Non-Critical Supplier Distribution (Per annual procurement amount) 30.6% 42% Europe Others . 94% 1 19.2% 0.3% Rest of Asia U.S.A. 2.1% 6% Direct materials Indirect and packaging materials Critical Supplier NonCritical Supplier Taiwan China 5.9% 84% 16% 2019 Raw Materials Supplier Category (Per annual procurement amount) 30.6% Waste services logistics management Transport and Facility/ services services Type of engineering Suppliers Subcontract Raw materials Equipment

The definition of critical raw material supplier as follow : (1) Top 85% of direct material purchasing amount, (2) Indirect material suppliers refer to those with a purchasing spending over 2 million USD with ATM; purchasing spending over 1 million USD with EMS, (3) follow : (1) Top 85% of direct material purchasing amount, (2) Indirect material suppliers refer to those with a purchasing spending over 2 million USD with ATM; The definition of critical raw material supplier as Single source or non-substitutable suppliers (3) Supply to more than two tier 1 suppliers The definition of critical non-tier 1 suppliers as follow : (1) Supply to critical tier 1 suppliers, (2) Supply to tier 1 direct materials suppliers who ASE spend over 10 million USD/year, To lower overall supply chain risks, ASEH has expanded the scope of sustainability risk management to non-tier-1 suppliers. There are currently over 600 non-tier-1 suppliers which non-tier-1 suppliers. There are currently of sustainability risk management to chain risks, ASEH has expanded the scope To lower overall supply our total procurement amount. accounted for 58% of non-tier-1 suppliers non-tier-1 suppliers, from which 154 critical of, and type of materials supplied by assessment on the geographic locations We also performed risk 1 2 7.1 Supply Chain Overview Chain 7.1 Supply testing and material provides assembly, integrator, ASEH primarily core technology as a key systems and testing services as well assembly and leader in semiconductor As a global waste services, equipment, facility/engineering raw materials, globally to procure with thousands of suppliers (EMS). We work manufacturing services and electronics (ATM) services South Korea, Malaysia, China, Japan, global footprint in Taiwan, expansion of our are committed to the services., and logistics and subcontract services, transport, management and Mexico. Singapore, the U.S.A. into two categories according Raw material suppliers are classified day-to-day operations and manufacturing. have the most direct impact on ASEH's The supply of raw materials (suppliers of packaging materials or indirect/packaging material suppliers directly related to manufacturing) and material suppliers (suppliers of materials to their attributes; direct tier-1 suppliers based on their annual of raw material suppliers, we identify resource allocation and management to manufacturing). To ensure efficient materials indirectly related with these critical suppliers maintain regular management controls procurement value and ASEH shall follow up on the risk status of these suppliers and perform further risk control. on the risk status of these suppliers and ASEH shall follow up

RESPONSIBLE PROCUREMENT 105 Supporting Local Suppliers 7.2 Supply Chain Management Framework

ASEH endeavors to boost local development through its procurement efforts, and is thus working closely with Purchasing and Supply Chain Supply Chain Management Strategy local suppliers1 , and helping them develop technological Development Policy Through stable partnerships with its suppliers, ASEH capabilities. Such efforts benefit the environment by The ASEH Purchasing and Supply Chain Development hopes to improve the overall supply chain resilience and 106

reducing carbon emissions within the supply chain, and RESPONSIBLE PROCUREMENT Policy is published on the company website to implement socially responsible procurement. Supply chain the community by creating local job opportunities. In communicate ASEH's supplier sustainability expectations. sustainability is a key factor influencing our day-to-day 2019, procurement from local suppliers accounted for We hope to make a positive impact on the global procurement besides cost and quality, and enables our approximately 40% of the total procurement amount. electronic industry supply chain and establish sustainable long term growth with suppliers. From an overall supply supply chains with its suppliers. chain management perspective, and using a risk and 2019 Raw Material Local opportunity assessment to analyses our current supply Purchasing Spends ASEH is also devoted to socially responsible chain status, we developed various programs in recent procurement and innovation throughout the supply 100% years focusing on responsible procurement, supply chain chain, on top of providing responsible and quality 35% 27% diversification and mitigation of supply chain disruption 80% 39% services to our customers. Please visit: 50% to attain win-win collaboration with our suppliers. http://www.aseglobal.com/en/csr_supplier_coc.html 60%

40% Supplier Code of Conduct 65% 73% 50% 61% 20% The supply chain is a major extension of ASEH's business operations and we actively foster sustainability 0% 2019 2019 2019 2019 throughout our supply chain. ASEH's suppliers are Taiwan China Rest of Asia2 Others3 expected to comply with our Supplier Code of Conduct Local Purchase which requires them to comply with local laws and

Non-Local Purchase regulations where they operate, and conduct business in a manner that meets labor, health and safety, environment, business ethics and management and various corporate compliance standards. The suppliers are also required to drive their suppliers to meet such

1 Local supplier refers to the supplier's register location is located at the same country standards and oversee their compliance status. Please where our manufacturing facility is located visit: http://www.aseglobal.com/en/csr_supplier_coc.html 2 Rest of Asia: Japan, Korea, Malaysia and Singapore

3 Others: America and Mexico s coverage by extending it to the by extending it to the s coverage ’ Taking Actions Towards a Circular Economy ： portal to provide them with a complete overview of supply chain chain ofsupply overview complete a with them provide to portal ’ Program 2 In 2019, ASE Kaohsiung therefore initiated a barrel reuse project which involved regulatory analysis, recycling label design, inter-departmental coordination and vendor communication, and they successfully improved the reuse rate from 20% to 80%. as such areas other to project this from experience the extending are They packing and shock-absorbing materials. We have initiated a packing material focuses on three key aspectsreuse project with suppliers at the end of 2019 that - optimizing, reusing and recycling, and is supplemented by sharing success efforts, we Through these economy conferences. stories and organizing circular actions on recycling hope to encourage our supply partners to take concrete and reuse, so as to achieve a circular supply chain. Pre-Monitoring Program 2: End of Life Components Active USI has materials, to discontinued due of supply interruptions risk prevent To cycles life product on based controls source procurement material out carried and future market trends since 2015, as well as front-end risk analyses and due on customers impacts prevent to for supply materials strategies exit product collaboration in department, procurement USI's parts. supply (EOL) end-of-life to with the R&D, manufacturing, engineering and other departments, negotiates with customers in advance about introducing alternative materials for parts that for materials recommends and future the in sold not or discontinued be may new products. The project's advance evaluations and follow-ups reduce the risk of supply chain disruptions from future product discontinuations. Program 2: e-Hub Supplier Risk Assessment And Reporting System Risk Assessment And Reporting System Program 2: e-Hub Supplier supply chain management has gradually shifted At ASEH, we recognize that from the mere pursuit of cost reductions and efficiency, to strengthening supply chain resilience. survey system to address any potential threat to the We created a supplier risk and procurement of sustainable concept the incorporating by chain supply integrating materialsinventory management, and risk monitoring,as well as onto the ASE e-Hub platform. real-time supplier interaction insight of the supplier risk system, we are better In addition to having a clear recovery the disruptions and determine level of supply chain to assess the able make early and rapid adjustments to materials, timeframe, so that we can demand and mitigate operational risks. inventory, product and customer the system to expand we aim Going forward, customers industry, testing and assembly semiconductor in the leader global a As risks. only to not is dedicated ASEH integrator, technology and core a systems and and agile supply chain. building greater customer trust but also a more resilient s expansion of its global footprint. ’ s engineering team and its suppliers have collaborated to develop to its suppliers have collaborated and s engineering team ’ In the past two years, we have reduced inventory costs by 8.29% (approx. costs by 8.29% (approx. In the past two years, we have reduced inventory turnover to 23.4 days, US$11.9 million). As of 2019, we have reduced inventory 7.7 days more than projected. Target: Reduce the Risk of the Supply Interruption Program 1: Supplier Financial Risk Monitoring works Department Procurement USI's risk, financial suppliers' our manage To closely with the Finance Department to monitor a supplier company's financial financial company's the from resulting any disruption so as to prevent health are risks potential with suppliers analysis, risk preliminary Through problems. identified and monitored. For the suppliers that are identified to be high-risk, the Procurement. and continues to supplier, for a second source looks immediately Department monitor the high-risk suppliers' financial condition regularly every six months, to ensure effective control and to reduce the supply interruption. ASE established the supplier e-Hub platform in 2010 for ASE and its suppliers to of chain information that helps maintain the resilience exchange real time supply as well as to eliminate the bullwhip effect. supply chain management to improve supply chain the following elements We have closely examined efficiency: (1) referencing past supply chain practices, and adopting flexible supply viewing (2) chain; supply the across resilience improve to management chain supplier work-in-process (WIP) status at-a-glance, and uploading WIP information onto the shared e-Hub platform; (3) supporting material requirements planning (MRP) through business-to-business (B2B) info-sharing to accurately determine customer demand. analyze material demand and supply risks based We have proceeded to conducted further have We demand. and customer status on inventory based on country of origin and requirements, analysis for material comprehensive customs location to support ASEH Target: Build a Circular Supply Chain Program 1: Developing DMSO-free Alternatives ASE hazardous chemicals, In order to reduce the environmental impact of develop alternatives suppliers to jointly with its chemical Kaohsiung has worked of 70% in used component major a is DMSO (DMSO). Sulfoxide Dimethyl to Its solvent. aprotic polar most the is and processes stripping photoresist our when released during waste incineration and ingredients include sulfur, which In corrosion. equipment to leads that acid sulfuric forms water, with mixed addition, gaseous emissions of sulfur react with other oxides into the atmosphere substances to form acid rain. Kaohsiung ASE DMSO-free alternatives that meet the needs of our manufacturing processes. The successful implementation of the DMSO-free stripper has reduced the sulfur addition to the environmental concentration in our liquid waste to under 2%. In the cost of waste treatment. benefits, the reduced concentration has also reduced Target: Sourcing of Minerals from Conflict-Free Countries of Minerals from Target: Sourcing Minerals Management Program: Conflict We have identified and survey the source of smelters and minerals in the supply chain annually. According to our supplier survey, we believe that the identified Compliance." refer to the "Conflict Minerals information, please DRC Conflict-Free . For detailed services products are our packaging and materials used for all of SoRs and Resilience Supply Chain Coordination Target: Improve Risk Assessment Program 1: e-Hub Supply

Program Sourcing Strategic Sustainable Responsible Cooperation To raise suppliers' economic, environmental and social performance in sustainability To integrate suppliers' resources and capabilities for greater innovation Minerals Sourcing To ensure that suppliers are using only responsibly sourced, conflict- free minerals in their products ASEH Supply Chain ASEH Supply Management Strategy Management Sources

Diversified

Quality First Value Oriented To maintain at least two suppliers for the same material to ensure continuous supply To obtain a competitive overall value in the supply chain To obtain the best quality products and services from suppliers

RESPONSIBLE PROCUREMENT 107 7.3 Supply Chain Sustainability Management

ASEH has suppliers around the world, all of which are Supplier Sustainability Management Approach regulatory compliance, sustainable management, important partners. Beyond value creation, we also hope supplier management, conflict mineral management, As part of the ASEH Procurement and Supply Chain to be able to address labor rights and environmental environmental protection, health and safety, labor rights, Development Policy and Commitment, we established protection issues by joining the Responsible Business human rights, etc. The purpose of the questionnaire is a four-stage sustainability supply management process 108 Alliance (RBA) and actively participating in its annual to assess each supplier's sustainability risk and conduct conference. ASEH adopts the RBA Code of Conduct in that is run repeatedly to ensure supplier compliance and RESPONSIBLE PROCUREMENT an on-site audit where necessary to ensure conformity to the management of labor, environment and ethics. ASEH enhance their sustainability performance. ASEH's supplier sustainability standards. In parallel, we also applies the code to its supply chain management encourage suppliers to seek continuous improvement by to ensure the provision of a safe work environment, Supplier Sustainability Requirement acquiring internationally recognized certifications such respect for workers, environmental protection and ethical ASEH's raw material suppliers are required to sign conduct. ASEH forbids the use of child labor or forced as ISO 9001, IATF 16949, ISO 14001, OHSAS 18001/ISO the "ASEH Supplier Code of Conduct Commitment labor by its suppliers, and shall terminate its relationship 45001 and ISO 14064-1. Letter". The suppliers are also required to complete a with suppliers involved in serious violations although no such instances were found in 2019. sustainability risk assessment questionnaire that covers

Supplier Sustainability Management Approach

Sustainability Risk Assessment Validation Improvement Requirement

Supplier Code of Conduct Risk Assessment 1: Active Risk On-site/Off-site Audits Trainings Commitment Letter Assessment Corrective Action Verification Sustainability Risk Assessment Risk Assessment 2: Sustainability Risk Questionnaire Assessment Questionnaire

Risk Assessment 3: High-Risk Supplier Risk Assessment/Audit Management Supply Chain Management System • Ethics Business • Security Information • Minerals Conflict • • Labor Management • Human Rights • Social Involvement Economic Environmental Social Service and Technology Management Policies and Organization and Safety Management System • Quality, Cost, Flexibility, • Sustainability • Risk Management • Environmental Management System • Carbon Management • Water Management • Waste Management • Occupational Health • Emergency Preparedness • Labor Rights Sustainability Risk Assessment Factors Risk Assessment Sustainability Active risk assessment Targets: All suppliers SAQ Targets: All tier-1 suppliers On-site audit/ RBA VAP/ RBA SAQ Target: High-risk suppliers 3 1 2 We conduct an initial risk assessment of We conduct an initial risk manufacturing location,suppliers based on the and procurement manufacturing processes, amount. Critical suppliers: ASEH SAQ/RBA SAQ Non-critical suppliers: ASEH SAQ High-risk critical suppliers: On-site audit/ RBA VAP High-risk non-critical suppliers: RBA SAQ RA 3 RA 1 RA 2 Supplier Sustainability Risk Sustainability Supplier Procedures Targets and Assessment Sustainability Risk Sustainability Risk On-site audit/RBA

for completion of RBA Validated Audit Process (VAP) RBA SAQ management system is a basic requirement, with the management system is a basic requirement, performance sustainability management practices and of a included as assessment criteria; or the completion RBA SAQ. system requirements.

Supplier Sustainability Risk Assessment Sustainability Supplier Risk Assessment 3 (RA 3): results, From the review and analysis of the questionnaire suppliers and we were able to identify potential high-risk risk status and take appropriate action to ascertain their reduce the risks. • audits or request Critical suppliers : implement on-site • for completion of the Non-critical suppliers : request VAP/RBA SAQ Risk Assessment 2 (RA 2): Risk Assessment Assessment Questionnaire (SAQ) and protection To ensure effectiveness in the assessment established of small and medium suppliers, we have and non- various standards and requirements for critical a more resilient critical suppliers that help ASEH develop conducted and sustainable supply chain. In 2019, we tier-1 supplierssustainability risk assessments on over 600 70%. that achieved a response rate of more than • of a Critical suppliers : the implementation • is on management Non-critical suppliers : the focus Active Risk Assessment 1): Risk Assessment 1 (RA assessment and analysis We conduct a preliminary based on location, of potential risks to suppliers type of product supplied and procurement amount, manufacturing process. To assess the current status of supply chain sustainability supply chain sustainability current status of To assess the status, ASEH and risk management development risk supplier sustainability annual three-step conducts an the ASEH to identify and analysis. This allows evaluation potentially high social, economic, suppliers that exhibit Deficient suppliers will have to and environmental risks. follow ASEH's corrective guidelines undergo audits and and control of risk. to ensure effective mitigation

RESPONSIBLE PROCUREMENT 109 Supplier Major Sustainability Risk Factors in 2019

Type of Raw Material Suppliers Category Risk Factors Risk Description Audits in 2019 An emergency preparedness/improvement plan for business continuity risks has Risk Management and yet to be established Number Continuous Operation 110 Management An identification procedures for regulatory risks associated with continuous 100 Economic RESPONSIBLE PROCUREMENT operation have yet to be established 80 Supplier Sustainability A system for sustainable supply chain management has yet to be established Management 60 An evaluation procedures for risks and impacts associated with climate change have yet to be established 40 Environmental Environmental A GHG inventory mechanisms have yet to be established Management 20 A system and targets for water use reduction in water resource and water recycling management has yet to be established 0 On-Site Audit RBA VAP Occupational Health & A system for the identification of OHS regulations have yet to be established Safety (OHS)

An anonymous complaint mechanism has yet to be established. Social 2019 Supplier Sustainability Audit A system for the assessment of labor-related risks and impacts has yet to be Labor Rights established Findings by Category

A mechanisms for managing employment agencies have yet to be established

22% 26% Supplier Sustainability Audit Mechanism 1% Labor ASEH established a supplier sustainability audit system to carry out routine and ad hoc audits on-site, through Health and Safety 9% document submissions, and through appointing third-party agencies or the RBA VAP. Deficient suppliers are required Environmental to draw up corrective action plans and rectify them within a given time frame. We will then review the results of their Ethics 22% corrective action plans, followed by another assessment on the status the following year. 26% Management System In 2019, we conducted on-site audits/RBA VAP on 115 raw material suppliers, including high-risk critical suppliers. All audited suppliers completed the corrective actions within the given time frame; and1% after evaluation, no supplier was Labor 42% terminated for non-compliance. Health and Safety 9% To further reduce supply chain risks, we also conduct risk assessment questionnaires and audits for non-tier-1 suppliers. Environmental In 2019, 26% of our non-tier- 1 suppliers completed sustainability questionnaires, and 4% of the non-tier-1 suppliers Ethics completed on-site audits/RBA VAP. We shall continue to perform sustainability risk assessment on non-tier 1 suppliers Management System to better manage risks to our supply chain. 42% Corrective Action Corrective Management, foreign employee dormitories allow 24-hour access. allow 24-hour foreign employee dormitories Management, measure deductions as a disciplinary work from manpower shortages prevent excessive overtime of employee working hours days and implementing overtime work controls one day off every seven unobstructed egress dormitories. safety drills in employee safety awareness hazardous substances conflict minerals. audit system hours • Regulations for Dormitory Contract and As specified in our Recruitment • forbidding the use of wage Stipulations in company regulations • with production needs to Recruiting enough employees in accordance • to achieve real-time management To establish an overtime request system • mechanisms to assure workers have Establishing regulations and tracking • fire safety equipment and Regular inspections to ensure effective • evacuation plans in facilities Regular review and revision of emergency • workers and the frequency of fire To increase the number of night-shift • training and management mechanisms to improve employees' Enhancing • spot check frequency and inspection form To establish • to ensure proper classification and storage of Regular inspections • disclose its management policy regarding the sourcing of To publicly • its major suppliers and establish a risk assessment process and To identify • working employee manage to system a establish to suppliers its require To • to communicate information to employees clearly To adopt procedures Major Nonconformance Finding Major Nonconformance in hazardous working environments substances established employees in clear, labor-management meetings to foreign employees understandable terms • employee dormitories Access controls in foreign • measure Deductions from wages as a disciplinary • a week Working hours exceeding 60 hours • Working seven days consecutively • and emergency exits Obstruction of fire safety equipment • information on signage Unclear escape routes and lack of • not equipped with proper protective equipment Employees • aid kit inspection Lack of first • classification and management of hazardous Insufficient • disclosure of corporate management policies Lack of public • assessment and auditing procedures not Supplier risk • working days in excess of seven days for supplier Continuous • of work notices and the content of Lack of communication RBA lassification Freely Chosen Employment Freely Chosen Wages and Benefits Working Hours Emergency Preparedness Occupational Safety Occupational Injury and Illness Hazardous Substances Responsible Sourcing of Minerals Supplier Responsibility Communication Category

Labor Health and Safety Environmental Ethics Management System Supply Chain Greenhouse Gas Inventory Guidance Program Supply Chain Greenhouse Gas greenhouse gas management systems that are climate change, ASEH has invested significant resources to assist suppliers in establishing To counter impacts and risks arising from in Taiwan to launch a two-year (2018-2019) Supplier Guidance Project for the Implementation of compliant with regulatory requirements. We commissioned a consulting company the end of 2019, we have provided on-site support for over 20 suppliers in ensuring ISO 14064- ISO 14064-1 Greenhouse Gas Inventory Social Return on Investment (SROI). As of them to control their greenhouse gas emissions, acquire external verification for ISO 14064-1 1 compliance for their greenhouse gas management systems. The project has allowed level of competitiveness. compliance, develop capacity for supply chain carbon disclosure, and increase their Sustainable Supply Chain Development Program Sustainable Supply Chain sessions. These efforts help ASEH stay responsive to an ever providing education and training, organizing seminars, forums and counseling ASEH continues to support its suppliers by sustainability values throughout the supply chain. changing business landscape and to foster Supplier Audit Results and Corrective Actions in 2019 and Corrective Audit Results Supplier

RESPONSIBLE PROCUREMENT 111 We have adopted the social return on investment (SROI1) Risk of Foreign Forced/Bonded Labor in Supply Chain Corrective Action Project analysis in 2018 to monetize the social influence of our ASEH is committed to the protection of the dignity and the rights of workers. In 2018, we collaborated with suppliers supplier guidance project. We seek to understand, from to review and conduct due diligence on the hiring process of foreign workers, and explore ways to improve the process. a stakeholder’s perspective, the changes in suppliers and The aim is to eliminate any practice of forced or indentured labor, and to make up for the inadequacy in local labor law participants before and after implementing the project. protection and/or complex hiring procedures within our supply chain. Last year, we submitted the project to Social Value 112 International for certification and published the project Supplier Sustainability Education and Trainin RESPONSIBLE PROCUREMENT report. ASEH continues to invest resources enhance the sustainability performance of its supply chain risks. We have organized various sustainability education and training, and conducted guidance outreach at multiple facilities to communicate our supply chain management requirements. In 2019, we conducted 7 seminars/consulting globally, with 575 people attendees from more than 350 suppliers attended.

ASE - Sustainability Seminar USI - Sustainability Seminar SPIL - Supplier Day

We organized 3 supplier sustainability We organized 3 supplier sustainability We organized a Supplier Day in seminars at our facilities in Chungli, seminars in Taiwan, Shanghai and Taiwan. A total of 285 people from Shanghai and Suzhou. A total of 68 Shenzhen. A total of 222 people 151 suppliers participated in the people from 26 suppliers attended from 179 suppliers participated in seminars the seminar the seminars At our annual Suppliers Day, besides Through the seminars, we We discussed the USI Administrative the sharing of developing trends in strengthened suppliers' sustainability Strategies for Sustainable the semiconductor assembly and management through the Development Goals, the testing industry to our suppliers, communication of ASEH's supply implementation of the RBA Code of we have also included an overview chain sustainability management Conduct and VAP, conflict minerals of ASEH member company, standards and RBA requirements, as management and the latest updates SPIL’s sustainable procurement well as our boundaries on regulating to international environmental requirements. In recognition and conflict minerals regulations (e.g., RoHS and appreciation of our suppliers for REACH) and regulatory trends. This their outstanding contributions, we ensures that suppliers understand have also presented them with our USI's sustainability management annual supplier awards requirements and helps them gain a deeper insight into USI's sustainable development policies and system

1 Social return on investment (SROI) is a method for measuring social, environmental, and economic values created by corporations in CSR activities. The concept is to identify the cost-and-effect relationship between the resources invested and the values created, ie, the social value created with every dollar invested. Externally, this information allows stakeholders to understand clearly the level of contribution of an enterprise to society. Internally, it helps the enterprise understand whether the projects implemented have achieved the expected results. The experience can be used to modify subsequent projects and maximize the influence of investment. Public Disclosure (CM Report) Public Conflict Minerals Report on company website Audit (IPSA) Independent Private-Sector Conduct IPSA

, and participated in the group's effort to use the RMI Conflict in the group's effort , and participated 2 Due Diligence (DD) Comply with the OECD Guidance Reasonable Inquiry (RCOI) Conflict Minerals Reporting Template (CMRT) Conflict Minerals Representation Letters On-site/paper audit Country of Origin Requirements Comply with ASEH Conflict Mineral Policy Conflict Minerals ASE took the initiative to join the RMI in 2015 and has continued its participation as ASEH to this day. Minerals Reporting Template (CMRT) and Due Diligence (DD) to resolve conflict minerals issues in the supply chain and to resolve conflict minerals issues in the (CMRT) and Due Diligence (DD) Minerals Reporting Template sourcing. support responsible 2 Conflict Mineral Requirement to our suppliers through our website. The suppliers are required to comply ASEH communicates conflict mineral policies their own conflict minerals policies and to their own suppliers. We also with ASEH conflict minerals policy and establish validate their supply chain, and encourage them to source minerals from require our suppliers to actively assess and "conflict-free" designations by the Responsible Minerals Assurance Process Smelters or Refiners (SoRs) that have received (RMAP), or other independent third party audit program. Conflict Minerals Compliance Conflict Minerals for short) from as tantalum, tin, tungsten and gold (3TG use of any conflict mineral such To prevent the unintentional Minerals we have established the ASEH Conflict of the Congo and its neighboring countries, the Democratic Republic Minerals Initiative (RMI) Policy, joined the Responsible Approach Conflict Minerals Management 7.4 Conflict Minerals Compliance Minerals 7.4 Conflict Holding Co., Ltd. Corporate the ASE Technology requirements, minerals management ASEH's conflict To communicate please visit: http://www.aseglobal.com/en/csr_ our company website, is posted on Conflict Minerals Policy for Sourcing conflict_minerals_compliance.html 1

2019 Best Supplier Award ceremony but continued to publicly recognize the outstanding suppliers by issuing a press release and announcing the winners on social media. ASE is a socially responsible company that is responsible company ASE is a socially a more sustainable fully committed to building the company established supply chain. In 2017, award to recognize the supplier sustainability performance among outstanding sustainability we evaluated a group its suppliers. Last year, worked closely with ASE of suppliers who have the past three years, and on sustainability over 9 suppliers for the prestigious. narrowed the list to the ‘Sustainability Excellence Three suppliers receive Award’ and six for ‘Sustainability Partnership the Award’. We presented three of them with the Sustainability Excellence Award, and six with the Sustainability Partnership Award. Recognizing efforts of our suppliers in sustainability through the awards will encourage them to increase their commitment to sustainable corporate to development and encourage more suppliers for be proactive in advancing a sustainable future we the semiconductor industry. Going forward, plan to establish a corporate level ASEH supplier the sustainability award program by combining resources of all the three subsidiary companies. ASE Supplier Sustainability Sustainability ASE Supplier Awards ASE cancelled the in place for COVID-19, preventive measures Due to the 1

RESPONSIBLE PROCUREMENT 113 Reasonable Country of Origin Inquiry (RCOI) Due Diligence (DD) Gold 100% Each year, ASEH performs RCOI to identify and validate 24% 100% 100% 100% ASEH designed its DD measures to conform to the sources of 3TG in our packaging and material services 80% the Organization for Economic Co-operation and and electronic manufacturing services and products, and 60% 76% Development Due Diligence Guidance for Responsible whether they come from conflict-affected regions. Supply Chains of Minerals from Conflict-Affected and 40% High-Risk Areas (the "OECD Guidance") and we also Our RCOI includes two steps: 20% adopted the OECD Guidance to not only identify/assess 114

1. Identify sources of 3TG SoRs through CMRT by supplier risks and mitigate these identified risks, but RESPONSIBLE PROCUREMENT 0% conducting supplier survey. 2016 2017 2018 2019 also to design a conflict minerals audit form for ASEH's 2. Suppliers are asked to sign the Representation Letters suppliers. We were therefore able to provide guidance of compliance with ASEH Conflict Minerals Policy and Tin 100% through both on-site/off-site audits to help suppliers set 23% 100% 100% 100% to fully reveal the source of the SoRs they sourced up management mechanisms that complied with OECD 80% from. Guidance. 60% 1 77% Since 2011 , we have conducted the supply chain Independent Private Sector Audit (IPSA) and survey to identify the source of SoRs that are used in 40% Public Disclosure the processes of our packaging and material services, 20% electronic manufacturing services and products. We 2 0% We undertake an IPSA on our Conflict Minerals Report identified the minerals and the source of smelters 2016 2017 2018 2019 and DD procedure to ensure they are in compliance through CMRT. In addition to 3TG, we have conducted with the requirements set forth by the U.S. Securities proactively the supply chain survey for Cobalt since Tantalum 100% 4% and Exchange Commission (SEC). Each year, the Conflict 2018, and disclosed the source of Cobalt smelters to our 100% 100% 100% 80% Minerals Report is also disclosed publicly. Based on our customers. 96% RCOI analysis and DD measures in 2019, we reasonably 60% In 2019, we have extended the scope of 3TG supplier believe that the identified SoRs used for all of our survey and identified 271 SoRs from more than 500 40% packaging and materials services products are DRC suppliers. According to the supplier survey we conducted 20% Conflict-Free. Given the large number of suppliers for in 2019, 100% of our suppliers are compliant with our electronic manufacturing services, we developed a 0% sampling program to select material suppliers for the ASEH's requirement for sourcing DRC conflict-Free 2016 2017 2018 2019 minerals. purpose of identifying SoRs. We believe that our due Tungsten 100% diligence performed based on the sampling program 20% 100% 100% 100% is sufficient and appropriate to provide a reasonable 80% Conflict Minerals Compliant Suppliers basis for our determination. Therefore, we reasonably 80% 60% believe that such SoRs used for all of our electronic 100% 7% manufacturing services products are DRC Conflict-Free. 100% 100% 100% 40% 80% 93% 20% 60% ASEH SEC Conflict Minerals Filing 0% We disclose the Conflict Minerals report on our company 40% 2016 2017 2018 2019 website annually. For complete file of ASEH SEC Conflict 20% Conformant Smelters Minerals Filing, please visit: http://www.aseglobal.com/ 0% Non-Conformant Smelters en/csr_conflict_minerals_compliance.html 2016 2017 2018 2019 Compliant Suppliers Non-Compliant Suppliers 1 Since 2011, ASE and USI have performed annual investigations on the smelters' sources of 3TG necessary to the manufacturing processes or products of the assembly and material manufacturing services and electronics manufacturing services. The CMRT is further used to identify the sources and minerals used by suppliers and smelters. 2 Since 2015, ASE and USI have conducted an IPSA annually.

CORPORATE CITIZENSHIP CORPORATE to devote ourselves to the community ASEH is committed optimize which work social and education charity, through and maximize social influences. resource allocation communities, ASEH continuously engages with local and other NGOs, government, industry, academic trust and stakeholders in strategic ways to establish development, while obtain direct input to support social At the same time, achieving corporate and societal value. related to our we strive to facilitate public advocacy to promote core business and sustainable development a meaningful a positive corporate image and create influence to society.

CORPORATE CITIZENSHIP 115 20 Key Performance 19

NT$ NT$ NT$ 116 600 32 76,000 46 134 CORPORATE CITIZENSHIP Million Million units Million hectares

2014~2019 2019 2014~2019 2019 2014~2019 Environment Conservation Community Engagement LED Lamps Installation Industry-Academia Tree Planting Fund (ECF) Programs Collaboration

2019 Material SDGs Business Actions Aspects KPI 2019 Target Status 2019 Performance 2020 Target 2025 Target

• Number of industry- • Over 10 industry- • 11 industry- •10 industry-academia • Over 100 industry- academia collaboration academia academia collaboration projects academia projects on environmental collaboration projects collaboration on environmental collaboration projects technology on environmental projects on technology on environmental Promote climate technology environmental technology conscious behavior and • Number of energy-saving •10,000 LED light tubes LED tube lights installed • 12,000 LED light Achieved technology installed at 10 schools • LED light tubes build capacity for climate and number of schools tubes installed at 10 • 14,000 LED light installed at 100 action •10 hectares planted with LED tube lights schools tubes installed at 17 with trees schools installed • Ten hectares planted schools • 150 hectares planted • Total area planted with with trees • 13 hectares planted with trees trees (global) with trees

• Number of students • 100 students • 123 students • 100 students • 500 students Implement programmes attending semiconductor attending attended attending attending Social course semiconductor semiconductor semiconductor semiconductor to support higher Involvement education and access courses courses courses courses • Number of disadvantaged Achieved to free, equitable, and students attending after • 100 disadvantaged • 150 disadvantaged • 100 disadvantaged • 1,000 disadvantaged inclusive primary and school program students in the students in the students in the students in the secondary education community attending community attended community attending community attending after school program after school program after school program after school program

Drive economic growth • Number of innovative • 30 innovative • 38 innovative • 30 innovative • 150 innovative and productivity by industry-academia industry-academia industry-academia industry-academia industry-academia investing in R&D, collaboration projects collaboration projects collaboration collaboration projects collaboration projects upgrading skills, and projects • Number of legislative or • One legislative Achieved •2 legal initiatives for • 15 legal initiatives supporting growing sustainability initiatives initiative for issues • 4 legislative initiatives issues related to for issues related to businesses, in a way related to the for issues related to the semiconductor the semiconductor that is compatible with semiconductor the semiconductor industry industry sustainable development industry industry Impacts Raising environmental awareness: Raising environmental of employees Increased awareness and supply chains in environmental protection and carbon reduction; of rawprioritized the procurement and materials that are eco-friendly green recyclable, and adoption of manufacturing in the development of new products 7 Green Technology Development: OSAT (outsourced semiconductor assembly and test) industry peers have improved their by manufacturing eco-efficiency of our drawing upon the success industry-academia collaboration on environmental research projects. Innovative semiconductor technologies: In response to developments in Heterogeneous Integration (HI) technology, we have established the ASE Industry Academy in collaboration with leading universities. The 3 fields covered at the academy are semiconductor assembly and testing, smart automated manufacturing and artificial intelligence. Improving employability: Improved youth employability and competitiveness, allocation of resources to education, and expand the supply of talent across the supply chain. • • • • e 2 e 2 Benefits & KPIs Benefits Social/Environmental Social/Environmental 14,050 LED light tubes installed at 14,050 LED light tubes installed use by 17 schools reduced energy and approximately 562,000 kWh carbon emissions by approximately 297 tons CO Implemented 24 environmental Implemented 24 environmental education courses; 2,500 students participated; 13 promotional videos on environmental education were produced at 76,270 LED light tubes installed 67 schools reduced energy use by andapproximately 3,107,000 kWh carbon emissions by approximately 1,637 tons CO More information refer to 8.2 Environmental Conservation Recruited 1,183 interns 120 students participated in collaborative academic research projects Awarded scholarships to 94 students Collaborated with over 50 schools Recruited 3,532 interns More information refer to appendix (Social Data - G. Social Involvement Key Performance) Reduced environmental impact and Reduced environmental environment for enhanced living : local communities in 2019 • • 2015~2019 • * Talent development via cooperative education, internship, and technological collaborations in 2019: • • • • 2015~2019 • * Business Benefits & KPIs Business Benefits Participated in 38 industry-academia collaboration projects, including the development of the Smart Yield Management System, use of Artificial Intelligence for Substrate Layout Automation, Smart Predictive Maintenance, Virtual Metrology System, Material Characterization Database, and Risk Prediction System for Neural Network Manufacturing Processes 230 students participated in the semiconductor courses Participated in 121 industry-academia projects involving semiconductor assembly, advanced materials, manufacturing automation technologies, etc. 845 students participated in the semiconductor courses More information refer to appendix (Social Data - G. Social Involvement Key Performance) 11 research projects on environmental technology in 11 research projects on environmental or research institutes collaboration with academic polyaluminium chloride 20% reduction in the use of (NaOH) flocculants; 180- (PAC) and sodium hydroxide outsourced to external ton reduction in liquid waste approximately US$200,000 companies for processing; outsourced waste million reduction in annual management costs cost reduction in outsourced Approximately US$77,000 liquid wastes processing of nickel-containing treatment of air pollutants Optimization of biological reduction in annual scrubber and wastewater; 440 ton use of chemical agents; water use; 5% reduction in approximately US$70,000 reduction in annual outsourced waste management costs. 52 research projects on environmental technology in collaboration with academic or research institutes; resulted in a total cost reduction of US$3.1 million More information refer to appendix (Social Data - G. Social Involvement Key Performance) Cultivating human capital and promoting technology Cultivating human capital and promoting technology innovation and development in the semiconductor industry in 2019 • • 2015~2019 • • * Improvements to environmental technology R&D and to environmental technology Improvements in 2019: production efficiency • • • • 2015~2019 • * Business Drivers Training potential talent (employees) for the future so as to enhance the value of the company’s human capital. Developing next-generation semiconductor technologies and materials academic collaborative 300 over in Participate projects on semiconductor materials and advanced technologies Recruit over 5,000 interns Increasing production efficiency; changing Increasing production efficiency; treatment volatile organic compound costs; ensuring methods; reducing treatment competitive pricing and services andPromotion of green products environmental implementation of community green education programs to encourage consumer behavior Over 100 collaborative academic research projects on environmental technology US$ 5 million reduction in outsourced waste management costs

The semiconductor industry is a high-tech industry that requires a large pool of talent in technological research and interdisciplinary R&D. We should leverage on the multiple professional and recruitment opportunities to attract talent and increase youth employability, by nurturing and equipping future employees with the relevant knowledge and professional skills to enhance the value of our human capital. The primary factors driving the company’s core operations are: • • 2025 Target • • ASE is raising awareness in climate change awareness in climate change ASE is raising adaptation, impact reduction mitigation and education, and and early warnings through technologies intensifying R&D in environmental efficiency to and improvements in production reduce environmental impacts. the company’s core The primary factors driving operations are: • • 2025 Targets: • • SDGs Alignment Focus

Industry- Academia

Conservation Collaboration Environmental Corporate social involvement focus, benefits, and KPIs focus, benefits, social involvement Corporate

CORPORATE CITIZENSHIP 117 Social/Environmental Focus SDGs Alignment Business Drivers Business Benefits & KPIs Impacts Benefits & KPIs

ASEH is committed to bridge the economic, Improvements to the quality of life and strengthening Corporate citizenship programs to • Improving quality of life for the social and environmental development of emergency care and disaster response in local improve mutual development with elderly: Established an elderly gaps between urban and rural areas in the communities in 2019: the local community in 2019: care center to provide health 118 communities where we operate. We are • 9,200 volunteer service hours • Participated in afterschool care for educational programs, to fostering stronger community bonds at each senior members from the local • 2,300 volunteers 143 students from disadvantaged CORPORATE CITIZENSHIP location through high levels of engagement households community and the employees’ in community development and caring for the 2015-2019 families. • Provided support for 50 charities disadvantaged. • 35,200 volunteer service hours • Launched a smart mobile clinic, • Provided financial aid for 788 The primary factors driving the company’s core • 9,360 volunteers developed smart cloud-based operations are: students from disadvantaged healthcare and a ‘hospital without Community * More information refer to appendix (Social Data - households borders’ that brings medical care Engagement • Ability to operate in a stable social G.Social Involvement Key Performance) environment 2015-2019 and health screening to rural communities. • Enhanced corporate image and employee • Participated in afterschool care for engagement 676 students from disadvantaged • Improved employee cohesion and households engagement: The survey results 2025 Targets • Provided financial aid for 3,620 showed 78% in the company • Reach 20,000 volunteers students from disadvantaged brand and culture category, which • Afterschool care for over 1,000 students from households was an increase of 3% compared to the previous survey. disadvantaged households * More information refer to 8.4 Community Engagement

Sustainable development goals are achieved Driving innovation and development in semiconductor Advancement of sustainability topics • Semiconductor Industry through the sharing of knowledge, expertise, and electronic technologies and improving ASEH’s to help formulate CSR initiatives for Development: Formulated a technologies and financial resources. To that leadership status in sustainable development the semiconductor industry blueprint for the development end, ASEH is promoting global partnerships • Collaborated with 40 external organizations in areas • Collaborated with 80 external of SiP (system-in-package) in sustainable development, exchanging related to core business organizations in sustainable heterogeneous integration knowledge, expertise and technology knowhow development to develop next generation with stakeholders, and expanding its sphere of 2019 semiconductor manufacturing influence through active involvement in industry • Active member of SEMI (Semiconductor Equipment 2019 technologies organizations. and Materials International) and the Workforce • Two legislative initiatives related • Boosting sustainability The primary factors driving the company’s core Development Council to air pollution and greenhouse transformation in the industry: Public operations are: • Organized the Semiconductor Industry Risk gas control, and business waste Founded the 15T1 Circular disposal Advocacy • Developing and formulating the next Management and Cybersecurity Technology Forum Economy Alliance to jointly generation semiconductor technology • Participate in the Science Based formulate circular economy blueprint and standards with the industry Targets(SBT) initiative standards, promote sustainable supply chain 2016-2019 supply chains, and build a EHS information platform with OSAT • 9 sustainability and legislative • Co-developing policy white papers with industry peers. industry associations to serve as references for initiatives the establishment of policies and regulatory standards 2025 Targets • 15 sustainability initiatives

1 15T refers to the 15 industry associations that participate in the alliance, such as the Taiwan Printed Circuit Association (TPCA), Taiwan Institute for Sustainable Energy (TAISE), Taiwan Academy of Banking and Finance (TABF), Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA), Taiwan Chemical Industry Association (TCIA), etc. 2% 4.% 4.% 201 201 201 6.7% 4.6% 43.7% 15.7% 22.2% 13.5% 48.6% 88.2% US$ 6. million 3.2% 6.3% 1.8% 2018 2018 2018 8.7% 44.8% 37.3% 17.% 25.4% 20.% 45.0% 88.7% US$ 7.4 million 4.5% 4.3% 1.% Charitable Donations Community Investments Commercial Initiative Cash Volunteer Cost In-Kind Giving Cost Management Overheads Environmental Conservation Environmental Collaborations Industry-Academia Community Engagement Public Advocacy 2017 2017 2017 6.7% .7% 51.5% 41.8% 8.3% 14.4% 15.% 60.0% US$ 5.6 million 0% 0% 0% 80% 60% 40% 20% 80% 60% 40% 20% 80% 60% 40% 20% 100% 100% 100% Type of Contribution 2% 4.% 4.% 201 201 201 6.7% 4.6% 43.7% 48.6% 13.5% 15.7% 22.2% 88.2% US$ 6. million 3.2% 6.3% 1.8% 2018 2018 2018 8.7% 17.% 44.8% 37.3% 45.0% 25.4% 20.% 88.7% percent of the group’s pre-tax net profit. We have invested more resources into industry- pre-tax net profit. We have invested percent of the group’s US$ 7.4 million 2 4.5% 4.3% 1.% Charitable Donations Community Investments Commercial Initiative Environmental Conservation Industry-Academia Collaborations Community Engagement Public Advocacy Cash Volunteer Cost In-Kind Giving Cost Management Overheads 2017 2017 2017 6.7% .7% 8.3% 51.5% 41.8% 60.0% 14.4% 15.% US$ 5.6 million 0% 0% 0% 80% 60% 40% 20% 80% 60% 40% 20% 80% 60% 40% 20% 100% 100% 100% Distribution by Application 2% 4.% 4.% 201 201 201 6.7% 4.6% 43.7% 13.5% 15.7% 22.2% 48.6% 88.2% US$ 6. million 3.2% 6.3% 1.8% 2018 2018 2018 8.7% 37.3% 17.% 44.8% 45.0% 25.4% 20.% 88.7% is a set of principles formulated to provide responsible policy directions for all its subsidiaries, and guidance in the selection of organizations to support. of organizations in the selection subsidiaries, and guidance for all its policy directions responsible to provide principles formulated is a set of 1 US$ 7.4 million 4.5% 4.3% 1.% Charitable Donations Community Investments Commercial Initiative Environmental Conservation Industry-Academia Collaborations Community Engagement Public Advocacy Cash Volunteer Cost In-Kind Giving Cost Management Overheads 2017 2017 2017 6.7% .7% 8.3% 41.8% 51.5% 60.0% 14.4% 15.% US$ 5.6 million 0% 0% 0% 80% 60% 40% 20% 80% 60% 40% 20% 80% 60% 40% 20%

100% 100% 100% Distribution by Four Aspects

ASEH Public Affairs Engagement Policy (www.aseglobal.com/en/pdf/aseh_public_affairs_policy.pdf) was NT$23,279,811 thousand (for more information, please refer to ASEH Form 20-F). The 2019 pre-tax net profit academia collaborations and public advocacy than we did in 2018 to strengthen ties with our partners and technological collaboration with universities. Over 2,300 employees served Over 2,300 employees served and technological collaboration with universities. 2018 to strengthen ties with our partners and public advocacy than we did in academia collaborations service hours. as volunteers, providing over 9,200 volunteer 1 2 8.1 Social Involvement Overview Involvement 8.1 Social level of is ASEH’s highest Committee (CSC) Corporate Sustainability reconstruction. The as well as social financial contributions should include that social involvement ASEH believes “Public ASEH’s group. the within regulations and policies involvement social of implementation and formulation planning, the for responsible is and involvement social for organization Policy" Affairs Engagement An audit mechanism is also in place to evaluate the level of social impact resulting from the support given to those foundations and social organizations. impact resulting from the support given is also in place to evaluate the level of social An audit mechanism industry-academia collaboration, strategies-environmental conservation, performance based on four development reviews to evaluate its campaigns and ASEH conducts annual at company facilities worldwide, implementing social involvement policies Involvement Taskforce is responsible for and public advocacy. The CSC Social community engagement local organization teams to plan and facility is responsible for the creation of activities in public engagement. Each opportunities, planning and organizing evaluating the risks and development goals. in compliance with corporate policies and execute the programs and impact of social involvement model to measure the input, output and SROI (Social Return on Investment) (London Benchmarking Group) framework ASEH adopts the LBG biannual performance reviews and reporting. activities, and conducts accounting for 0.89 million on social involvement activities, In 2019, we spent US$6.9

CORPORATE CITIZENSHIP 119 8.2. Environmental Conservation Campus LED Project The ASE Cultural & Educational Foundation has been implementing its energy-saving, carbon-reducing Campus In 2014, ASEH committed to a 30-year contribution LED Project since 2014. The project provides resources to install energy saving LED tube lights and light bulbs, that of at least NT$100 million per year, for environmental also improve lighting conditions, for elementary and junior high schools in rural areas and nearby communities. The conservation efforts in Taiwan. For the year 2019, NT$ 100 million was disbursed through the ASE Cultural and foundation has currently installed approximately 76,000 LED tube lights at 67 schools in Nantou and Kaohsiung, and is Educational Foundation, to support key environmental expected to complete installation at over 100 schools by 2025. 120

programs including environmental education, CORPORATE CITIZENSHIP environmental improvements, climate change mitigation 2015 2016 2017 2018 2019 and environmental arts. ASEH has also been collaborating with the Chang Yao Hong-Ying Social Welfare & Charity School 13 9 13 4 17 Foundation on social and environmental programs in Taiwan, and reports its achievements annually through a LED Lamps 16,400 13,500 14,500 8,900 14,050 media conference. We carried out 74 charity projects in 2019. For more information on our major achievements, Energy Saving (kWh) 656,656 540,540 580,580 356,356 562,562 please refer to the ASE Everywhere section (www. asefund.org.tw). 2019 Accomplishments of ECF Programs Distribution by 2019 ECF Programs Programs Major Projects Programs Major Projects

13.1% • Environmental Thesis/Dissertation Awards 3.6% • Environmental Technology Research • Campus LED Donation Projects Projects • Cuora Flavomarginata (yellow-margined Environmental Environmental • Southern Taiwan Environmental box turtle) Conservation and Restoration Education Impact Education Projects • Green Supply Chain Projects Promotion Minimization • "CommonWealth" Magazine in Taiwan • Sustainable Circular Economy Forum -Creative Teaching Material Competition • Smart Grid 26.5% • Environmental Education Films Projects

• Afforestation Projects • Rice-themed installation art exhibition • Water environment patrol Environmental • Dengue fever awareness campaign • Marine environment protection Environmental Arts Quality • Kaohsiung Spring Arts Festival awareness campaign Promotion Enhancement sponsorship • Taoyuan coastal plant smart identification 20.8% • Public Social Welfare Sponsorships project Environmental Education Promotion

Environmental Quality Enhancement

Environmental Impact Minimization

Environmental Arts Promotion Achievements Improving Career Prospects and Competitiveness of Students Improving Academic R&D Capabilities Cultivating Talented Personnel for the Semiconductor Industry • • • Stakeholders Students Institutions and Research Institutes Industry • University • Academic • Semiconductor Projects ASE Industry-Academia Career Development Project/ Employment Orientation Project Semiconductor Assembly and Manufacturing Education Program ASE Internship and Company Visits Artificial Intelligence Colleges Semiconductor Assembly Technology Research Projects Manufacturing Automation Research Projects Advanced Semiconductor Materials R&D Projects • • • • • • • Programs

education and internships research collaborations

• Cooperative • Academic • Scholarships 2019 Accomplishments of Industry-Academia Collaboration Programs 2019 Accomplishments of Industry-Academia 8.3. Industry-Academia Collaborations 8.3. Industry-Academia is innovation sophisticated, and technological are becoming more packaging industry needs of the IC The technology and research funding heavily in resources ASEH has invested Over the years, corporate sustainability. critical to ASE's research and with top universities on various technology leadership. We collaborate to maintain our semiconductor between through the synergistic relationship that help strengthen semiconductor technologies development projects have capabilities through the collaboration The talent cultivation and the rising academic industry and academia. industry to thrive. enabled the entire semiconductor collaboration", research "academic internship", corporate and cooperation "academia like programs key created has ASEH its resources. In 2019, ASEH continued leverage on the expertise from these academic and "scholarships" to 38 technology including US$1.23 million towards schools, contributing over US$1.53million, collaborations with local for scholarships. We also recruited 1,183 interns and enrolled 230 students research collaborations and US$0.13 million Nearly 50 schools and research institutions in Taiwan, China, Singapore, in the semiconductor master's degree program. in these collaborations. Malaysia, South Korea, Japan, etc. were involved

CORPORATE CITIZENSHIP 121 Industry 4.0-Smart, Automated Manufacturing Semiconductor Packaging Technology Research

Smart manufacturing is a vital part of ASEH’s operation 14 research papers were presented at the 7th ASE Packaging Technology Industry-Academia Conference, with research roadmap, and since 2015 its Kaohsiung facility has on advanced manufacturing processes and material analysis showing promising results. Using moldflow analysis collaborated with southern Taiwan universities on optimized with a neural network, ASEH’s engineers are now able to predict the risk of wire sweep in the molding process, which helps to shorten the time-to-market for new products. Research in molding materials has also led automation technology research. 122 to the development of a new type of molding material that optimizes Micro-LED packaging, raising the value-add CORPORATE CITIZENSHIP To date, 29 projects focusing on four key aspects were of manufacturing processes and driving futher innovation in IC packaging. For high-end products that require large developed; smart manufacturing, intelligent classification bandwidth and high power performance, signal integrity analysis is performed on the molding structure to optimize of equipment failure, manufacturing yield improvements, circuit design and mitigate crosstalk, thereby boosting the quality of high-speed digital signal transmissions. and IT security asset identification. To optimize Driven by future advanced manufacturing needs, our R&D industry-academia team has co-developed the ‘high optical manufacturing efficiency, ASEH’s Intelligent Classification attenuation slim protection material’, a novel high performance protective material that is ultra thin and increases the Algorithm for Failure Diagnosis in Semiconductor reflection/refraction of light to achieve a shielding rate of over 99%, making it highly suitable for compact optical IC Equipment applies supervised and unsupervised machine applications. learning, to accurately identify reasons for equipment failure and carry out predictive maintenance. The Virtual Metrology System predicts the properties of a wafer at different steps of the manufacturing process, allowing for full instant quality inspection across the production lines. AI technology is extensively used in areas such as manual secondary inspections, eg. automatic image analysis through scanning acoustic tomography (SAT) and AI image recognition to detect defects, to greatly reduce the inspection time and manpower needed. Assembly Technology Forum Factory Visit

We have also drawn up a comprehensive career path framework to drive the training of expertise for smart manufacturing. Since 2016, we have invested NT 26 million on AI industry-academia collaborations and designing a training module for grooming AI talents. To inject momentum into AI innovation and boost talent development, ASEH is actively training employees to prepare for digital transformation, while at the same time, connecting students with the industry so that they have opportunities to apply what they learn in school. Factory Visit Factory Visit 788 143 201 201 842 123 2018 2018 578 122 2017 2017 682 12 2016 2016 730 15 2015 2015 0 0 80 40 800 600 400 200 200 160 120 Financial aid for disadvantaged aid for disadvantaged Financial students households 1000 Inner Mingolia Plants House Repair 788 143 201 201 842 123 2018 2018 578 122 2017 2017 682 12 2016 2016 730 15 2015 2015 0 0 80 40 200 160 120 800 600 400 200 Afterschool care for disadvantaged care for disadvantaged Afterschool students household 1000 Elderly Care Charity Community Sports Development

Senior Citizens Learning ASEH, In view of a rapidly aging population in Taiwan, Social Welfare together with the Chang Yao Hong-Ying Educational & Charity Foundation, the ASE Cultural & jointly initiated Foundation and Fo Guang University, has of the elderly. a charity program to look after the welfare offered by The program includes a professional course Studies the Fo Guang University Department of Future and LOHAS Industry that incorporates Chunghwa It was Telecom’s Personal Health Record cloud platform. designed with a focus on providing a range of intelligent senior care services to ensure a happy and active lifestyle. In 2019, two classes were offered to 180 senior citizens at ASE’s Chungli Facility and USI’s Taiwan Facility. ASEH seeks not only to create economic value but not only to create ASEH seeks communities in the alongside local also to develop We hope community we operate in. global locations will lead to value system and idea engagement activities in the local communities, exchanges with the people understand ASEH's philosophy in allowing them to better and for ASEH to maximize positive sustainable operations As part of our effort to benefits for our operations. value and simultaneously continuously create economic we are committed to cultivate corporate values, resources and grow together incorporating community Through the ASE Charitable with local communities. Foundation, we focused resources on "Community Care Development", "Charitable Care", and "Emergency over and Assistance" programs. In 2019, we contributed activities. We US$1.1 million for community engagement and financial provided afterschool care for 143 students families, assistance to 788 students from disadvantaged and made donations to 55 charities. 8.4 Community Engagement 8.4 Community

CORPORATE CITIZENSHIP 123 8.5 Public Advocacy

As a global leader in semiconductor assembly and test, we recognize the need to play a more visible role advocating key issues affecting the industry. Aligning 124 with United Nations' goal of improving the wellbeing of CORPORATE CITIZENSHIP mankind, ASEH is fully committed to initiatives related to our core business and sustainable development (environmental, social and economic aspects). We support initiatives in corporate sustainability and economic development; technological innovation and development; environmental projects; climate change; human rights; and supply chains etc.

In 2019, ASEH contributed US$0.93 million and was active in over 120 external organizations, allowing ASEH to share our value system with industry peers and supply chain partners, and extend a broader social impact.

Semicon Taiwan Forum

Smart Manufacturing Forum 15T Alliance 133,000 120,000 Resources invested (in USD) Resources Major Activities Legislative initiatives related to air pollution and greenhouse gas control - amendment of Air Pollution Control and and greenhouse gas control - amendment of Air Pollution Control and Legislative initiatives related to air pollution System that adoption of the Continuous Emissions Monitoring Industry, Emissions Standards for the Semiconductor and Assembly Semiconductor the and Access, of Public-Private Sources Stationary for Authorities the to Data Transfer Action Plan. Testing Industry Greenhouse Gas Emissions Control disposal - pushed for audits of waste generators and waste management Legislative initiatives related to industrial waste testing assembly and semiconductor systems in the and processing recovery of waste establishment and the companies industry. 20400 ISO the of adoption the for course training - platform collaboration economy circular and supply Sustainable Sustainable Procurement Standard.

ASEH initiated the forming of the Environmental Health & Safety (EHS) Committee together with OSAT industry peers to peers industry OSAT with together Committee (EHS) Safety & Health Environmental the of forming the initiated ASEH propose and industry semiconductor Taiwan’s in protection environmental and safety industrial involving issues on work of policies, establishment the for of reference points with agencies government provides committee The solutions. exchange an built also ASEH industry. testing and assembly semiconductor the governing standards and regulations legislative major three discussed committee the 2019, In peers. industry amongst experiences EHS sharing for platform initiatives to amend regulations: 1. 2. 3. SEMI is a global electronic manufacturing supply chain industry association. ASEH is actively involved in public policy policy ASEH is actively involved in public supply chain industry association. a global electronic manufacturing is SEMI focus on promotion of collective interests, and the of international SEMI events, the initiatives and highly supportive information Our participation in SEMI allows us to exchange education, business, development. technology and sustainable In integration and advanced IC packaging technology. ecosystems, heterogeneous about market trends, system-in-package in the awareness education and career Council that supports newly formed Workforce Development 2019, ASEH joined the promote to and Cybersecurity Technology Forum Industry Risk Management in the We also participated industry. high tech of including the SEMI Board executives also serves in many committees Our and risk management. cybersecurity awareness deputy and Committee, Electronics Hybrid Flexible SEMI-FlexTech the of chair Committee, Assembly Advanced the Directors, Manufacturing Committee. Committee and the Semiconductor Smart chair of both the Materials Association

Taiwan Semiconductor Industry Association (TSIA) Semiconductor Equipment Semiconductor Equipment and Materials International (SEMI)

Participation in Major Industry Associations in 2019: Associations in Major Industry Participation

CORPORATE CITIZENSHIP 125 Association Major Activities Resources invested (in USD)

ASEH is a founding member of the Taiwan Alliance for Sustainable Supply (TASS). TASS was founded in 2017 to establish a 126 sustainable development platform and standard that incorporates supply management, logistical processes and information

sharing. In 2019, through its continuous organization and promotion of events/initiatives related to sustainable supply and CORPORATE CITIZENSHIP circular economy, the alliance achieved the following:

1. Founded the 15T Circular Economy Alliance to establish and promote a cross-industry exchange platform and share Taiwan Alliance for information and resources so as to expand its influence and reach an industry consensus 70,000 Sustainable Supply (TASS) 2. Sustainable Supply Certification Program - development of interdisciplinary expertise on risk management, legal compliance, procurement and supply

3. Organized the Green Circular Sustainable Supply Innovative Technology Research Competition and invited universities and colleges to participate and explore the circular economic needs of the industry, and propose creative and feasible solutions via innovative collaborations

CALCE EPSC provides a forum for defining fundamental needs in the electronics industry, conducting research, and sharing research findings among participating organizations. The research focuses include risk assessment, mitigation and CALCE Electronic Products management for electronic products and systems. CALCE EPSC continues to develop tools and methodologies to help and Systems Consortium 65,000 engineers perform electronic product risk assessment, mitigation and management. CALCE EPSC works with companies (EPSC) from across the electronics industry chain, including the entire supply chain for the telecommunications, automotive and aviation industries.

Founded in 2004 by a group of leading electronics companies, the Responsible Business Alliance (RBA) is a nonprofit organization comprised of electronics, retail, auto and toy companies committed to supporting the rights and well-being of workers and communities worldwide affected by the global electronics supply chain. RBA members commit to and are held accountable to a common Code of Conduct, and utilize a range of RBA training and assessment tools to support the Responsible Business Alliance continued improvement of the social, environmental, and ethical responsibility of their supply chains. RBA regularly engages 35,000 (RBA) in dialogue and collaborations with workers, governments, civil society, investors and academia to gather the necessary range of perspectives and expertise to support its members in achieving the RBA mission of a responsible global electronics supply chain. ASEH joined the RBA in 2015 and has since administered annual self-assessment questionnaires (SAQs) at its facilities worldwide in order to identify labor, environmental and ethical risks. 79 93 58 1.751 3,098 3,098 27,954 54,847 14,948 27,954 16,104 11,850 69,795 41,841 38,744 24,177,331 25,113,761 28,158,345 2019 75 90 51 1.784 4,141 4,069 26,164 50,011 16,993 27,838 13,240 12,924 67,004 40,839 36,770 2018 21,571,571 26,148,689 22,934,123 71 87 53 1.639 4,173 3,711 25,272 38,115 15,523 28,983 13,460 11,812 53,638 28,366 24,655 2017 16,034,472 27,300,190 15,175,519 70 85 54 1.811 4,592 4,100 16,221 26,502 38,243 30,862 14,380 12,122 27,962 23,862 54,464 2016 15,147,097 22,624,234 15,096,545 Unit metric ton/thousand USD revenue metric ton metric ton % metric ton metric ton metric ton metric ton metric ton % metric ton metric ton metric ton % metric ton metric ton metric ton metric ton 2 1 3 Environmental Performance Index Environmental Performance Recycled and reused rate Recycled and reused Non-recycled and reused Recycled and reused rate Recycled and reused Non-recycled and reused Non-recycled and reused Water withdrawal intensity Water withdrawal Hazardous waste production Total non-recycled and reused Total recycled and reused rate Ultra-pure water usage Hazardous waste production Total recycled and reused Water recycled and reuse

General waste production Total general and hazardous waste Total general and hazardous Water Waste Category

The environmental data (waste, water, energy, GHG & data (waste, water, energy, GHG The environmental over the past four years are facilities around the world air emission) of our manufacturing below presented in the table

Sustainability Data - Environmental Data - Environmental Data Sustainability A. APPENDIX

APPENDIX 127 Category Environmental Performance Index Unit 2016 2017 2018 2019

Recycle rate % 100 95 106 116

Water Wastewater discharge metric ton 12,615,460 11,742,595 17, 303,186 18,778,265

Total fresh water consumption4 Million metric ton 22.46 23.65 24.02 24.08 128 Electricity consumption MWh 2,229,426 2,300,523 3,130,150 3,588,895 APPENDIX

Renewable electricity MWh 5,658 195,595 397,766 512,067

Non-renewable electricity MWh 2,223,768 2,104,928 2,732,384 3,079,829

Electricity intensity MWh/ thousand USD revenue 0.267 0.235 0.259 0.260

Liquefied Petroleum Gas (LPG) GJ 11,407 8,374 2,802 3,094 Energy Liquefied Natural Gas (LNG) GJ 332,126 381,022 354,857 255,582

Motor gasoline GJ 10,196 8,843 9,141 8,956

Diesel GJ 78,824 16,637 15,653 18,892

Heavy oil GJ 50,595 36,089 29,325 31,906

Total non-renewable energy consumption5 MWh 3,369,827 3,310,931 3,207,383 3,208,516

SCOPE 1 tCO2e 56,764 60,675 85,279 98,880

6 SCOPE 1 tCO2e 76,821 82,996 99,504 98,880

SCOPE 2 tCO2e 1,328,044 1,215,698 1,544,880 1,695,223

7 Greenhouse Gas SCOPE 2 tCO2e 1,880,305 1,806,806 1,735,097 1,695,223

SCOPE 1 + SCOPE 2 tCO2e 1,384,808 1,276,373 1,630,159 1,794,103

GHG intensity tCO2e/thousand USD revenue 0.166 0.130 0.135 0.130

8 PFC emissions / number package output kgCO2e/kPCs 0.00078 0.00065 0.00081 0.00086

VOC (Volatile organic compounds) metric ton 269 281 204 208 Air Emission VOC (Volatile organic compounds9 metric ton 276 288 207 208

1 This table includes ASE, SPIL and USI data for 2016-2019. 4 This table includes ASE, SPIL and USI data for 2016-2019. The 2016-2018 data has 7 The includes all the data from ASE, SPIL and USI for 2016-2019. been updated due to a reassessment of the water data by SPIL. 2 This table includes ASE, SPIL and USI data for 2016-2019. 8 The includes all the data from ASE, SPIL and USI for 2016-2019. 5 The includes all the data from ASE, SPIL and USI for 2016-2019. 3 This table includes ASE, SPIL and USI data for 2016-2018. The 2016-2019 data has 9 The includes all the data from ASE, SPIL and USI for 2016-2019. VOC emissions data in been updated due to a reassessment of the water data by SPIL. 6 The includes all the data from ASE, SPIL and USI for 2016-2019. 2018 has been revised due to revisions made to the VOC emissions data of USI. 0 0 0 0 0 0 (ML) 1 728 3,329 3,329 4,245 regions (ML) regions Water discharge in water-stressed Water discharge in water-stressed Water withdrawals in water-stressed in water-stressed Water withdrawals 0 0 (ML) 3,396 3,181 1,367 6,953 18,778 10,458 24,177 16,576 Water withdrawals at ASEH facilities at ASEH facilities Water withdrawals Water discharge at ASEH facilities (ML) Water discharge at ASEH Water discharge Water withdrawals Other sources of water (TDS > 1,000 mg/L) Freshwater (TDS ≤ 1,000 mg/L) Surface water + groundwater + marine water + third-party water Surface water + groundwater + marine water Third-party water Marine water Groundwater Surface water Surface water (total) + groundwater (total) + third-party water (total) Surface water (total) + Freshwater (TDS ≤ 1,000 mg/L) Freshwater (TDS ≤ 1,000 Other sources of water (TDS > 1,000 mg/L) Other sources of water by source of water 2

Water-stressed regions: (1) ASE: Shanghai Assembly & Testing, Shanghai Materials, Kunshan, Suzhou, Weihai, Wuxi; (2) USI: Kunshan ASE: Shanghai Assembly Water-stressed regions: (1) TDS is not measured Shanghai Assembly & Testing, Wuxi, Japan, Malaysia, Singapore), USI (Zhangjiang, Jinqiao, Kunshan, Shenzhen, Taiwan), SPIL (Da Fong, Chung Shan, Zhong Ke, Hsinchu, Changhua, Suzhou); TDS in the water: ASE (Kaohsiung, Facilities that measure at other facilities. Water discharge by source of water Total water discharge Water withdrawals Water discharge by discharge destination Total water withdrawals 1 2 B. The amount of water withdrawals and discharge in water-stressed regions discharge in water-stressed withdrawals and of water B. The amount

APPENDIX 129 C. Effluent quality of our facilities with on-site wastewater treatment1

Taiwan_to land Taiwan_to ocean China Japan Korea Malaysia

Item Unit Effluent Effluent Effluent Min.~ Effluent Min.~ Effluent Min.~ Min.~ Effluent Min.~ Effluent 130 standard standard Min.~ Max.

standard Max. standard Max. standard Max. Max. standard Max. standard APPENDIX (Nantion) (Yamagata)

pH pH 6~9 7.3~8.1 6~9 7~7.7 6~9 6.6~8.9 5.8~8.6 5.8~8.6 - 5.8~8.6 7~8 5.5~9.0 6.4~8.06

COD concentration2 mg/L <100 19~84.9 <300 5.2~84.9 500 50~402 160 - - 90 2~32 200 3~193

BOD concentration mg/L - 3.8~140 <150 23.9~48.7 300 19.3~126 160 25 0.5~2.5 80 2~49 50 2~48

Suspended Solid(SS) mg/L <30 5~23.2 <50 1.0~8.1 400 23~168 200 60 1~31 80 0~3 100 <1~17 concentration3

Cu2+ concentration mg/L <3 0~0.389 <2 0.1~0.01 1 0~0.719 3 1 0.01~0.2 3 0~0 1 <0.01~0.08

Ni2+ concentration mg/L <1 0~0.06 <1 <0.006~0.04 0.5 0~0.071 - - - - - 1 <0.02~0.3

1 ISE Labs, ASE Singapore and three electronic manufacturing service facilities (Kunshan, Shenzhen and Mexico) do not have on-site wastewater treatment, thus not included in the statistics. 2 Waste water discharge from the SPIL Hsinchu facility is diverted into the park’s sewer system and waste water treatment plant in accordance with the Hsinchu Science Park Effluent Standards, and is therefore not included. 3 Waste water discharge of the SPIL Zhong Ke facility is diverted into the park’s sewer system and waste water treatment plant in accordance with the Central Taiwan Science Park Effluent Standards, and is therefore not included. 617 5,969 3,016 5,765 28,490 89,557 49,769 28,054 86,541 89,557 Total/Ratio 1% 241 376 22% 77% 4,343 1,067 4,167 4,173 1,802 1,949 4,409 1,356 52,177 33,037 34,488 43,113 44,180 15,294 23,881 43,428 45,377 170 6,337 21,983 5 2 3 74 10 98 25 87 28 705 270 991 152 630 151 963 966 1,515 1,328 1,418 1,621 1,623 Americas 24 90 16 10 18 30 51 324 771 553 285 331 299 200 3,450 2,297 3,129 4,054 4,064 1,670 2,424 2,454 Rest of Asia 10 23 54 141 540 923 464 2,266 8,945 1,278 1,019 6,987 8,633 9,652 7,451 4,492 1,845 1,388 14,339 14,437 12,026 13,871 China 62 36 71 197 294 879 813 5,775 3,276 3,161 2,184 2,894 6,905 2,734 38,791 14,975 22,950 28,805 28,841 17,568 28,015 28,086 Taiwan Male Male Male Male Male Male Male Male Female Female Female Female Female Female Female Female 16~30 31~49 31~49 16~30 Above 50 Above 50 Regular Skill Job Employee Employee Engineering Management Administration Non-Regular Disabled Employee Global Workforce Structure Global Workforce Regular/ Category Employee Employee

Distribution Overall Employee Gender Non-Regular Employee Age New Employee

Age Distribution Sustainability Data - Social Data Data Sustainability Workforce Structure A. Global

APPENDIX 131 B. Turnover Rate

Taiwan China Rest of Asia Americas 132 Male 3,662 50.1% 12,214 58.0% 468 41.1% 673 37.6% APPENDIX Female 3,641 49.9% 8,861 42.0% 672 58.9% 1,119 62.4%

Management Positions 191 3% 200 1% 41 4% 9 1%

Engineering Positions 2,080 28% 1,633 8% 320 28% 56 3%

Administration Positions 363 5% 415 2% 78 7% 64 3%

Skill Job Positions 4,669 64% 18,820 89% 701 61% 1,663 93%

16~30 3,104 43% 17,469 82.9% 681 60% 1,202 67%

31~49 3,975 54% 3,578 17% 386 34% 528 30%

Above 50 224 3% 22 0.1% 73 6% 62 3%

C. Full-time employees in non-executive positions

2018 2019 Difference

No. of Employee1 46,885 46,493 -392

Average Compensation(NT$) 744,918 759,968 15,050

Median Compensation(NT$) N/A 627,111 N/A2

1 "Employees" here refers to those under the employment of ASEH, ASE (ASE Kaohsiung and ASE Chungli; excluding ASE Test Inc. and ASE Electronics Inc.), SPIL and USI facilities in Taiwan. 2 The median compensation of full-time non-executive in 2018 was no disclosure. 294 797 197 570 180 497 92% 92% 91% 87% 3,487 2,190 Total No. of Employee/Ratio 95 96 83 835 613 112 106 100 86% 94% 100% 100% Rest of Asia 89 69 No. of Employee/Ratio 108 152 97 199 685 101 464 397 81% 87% 96% 86% 2,652 1,577 Taiwan No. of Employee/Ratio Average Training Hours Male Male Male Male Male Male Female Female Female Female Female Female Gender 1 2019 Item Leave Leave Skill Job Positions Engineering Positions Management Positions Employee Category Administration Positions

No. of Employee Entitled to Parental Leave No. of Employee Entitled No. of Reinstatement of Employee's Parental No. of Reinstatement of No. of Employee Applying for Parental Leave No. of Employee Applying Rate of Reinstatement of Employee's Parental Rate of Reinstatement of

No. of Retention of Employee's Parental Leave In China, no regulation of parental leave and ASE has maternity leave & paternity leave. In China, no regulation of parental leave and ASE Rate of Retention of Employee's Parental Leave 1 E. 2019 Average Hours of Training per person (By Type) E. 2019 Average Hours of Training D. Statistics Regarding Parental Leave Regarding Parental D. Statistics

APPENDIX 133 F. Workers1 Occupational Health and Safety Statistics

Employee Contractor

No. of Physical Injury 138 4

No. of Chemical Injury 4 2 134 Category of Occupational

No. of Ergonomic Injury 14 0 APPENDIX Injury No. of Biological Injury 0 0

No. of Psychosocial Injury 0 0

Rate of recordable work-related injuries2 0.83 0.05

Rate of high-consequence work-related 0 0 Occupational Injury Ratio injuries3

Rate of fatalities as a result of work- 0 0 related injury

No. of case 1 0 Occupational Diseases Rate of fatalities as a 0 0 result of occupational diseases

Total hours worked 188,182,718 126,901,556

No. of worker(or No. of into the factory) 89,557 1,531,822

1 The Workers include employee and contractor(exclude visitors) 2 No. of recordable work-related injuries/No. of hours worked * 1,000,000 3 No. of fatalities as a result of work-related injury/Number of hours worked * 1,000,000 38 10 24 11 13 230 120 9,200 2,500 1,183 2,300 2019 2019 2019 2019 2019 US$348,000 2 9 42 20 158 170 366 2,100 2,130 13.18 12,000 2018 2018 2018 2018 2018 US$2,140,000 4 16 18 11 122 120 390 9.85 8,800 2,700 2,380 2017 2017 2017 2017 2017 US$558,000 17 70 18 11 N/A N/A 105 793 6,600 2,500 1,650 88.65 2016 2016 2016 2016 2016 8 17 10 6.3 N/A N/A N/A 230 800 900 7,800 3,000 2015 2015 2015 2015 2015 No. of Interns No. of project No. of courses research projects No. of participation No. of seed teachers No. of volunteer hours No. of training materials/films No. of planting area (hectares) No. of volunteers participating in the event No. of semiconductor assembly technology No. of semiconductor

Cost-saving of outsourced waste management Cost-saving of outsourced No. of semiconductor master's degree students No. of semiconductor

Environmental Education Program Volunteer Afforestation Projects Industry-Academia Collaboration Programs Industry-Academia G. Social Involvement Key Performance Involvement Key G. Social Research Projects Technology Environmental

APPENDIX 135 Critical Supplier List

ASEH Critical Supplier List (ATM) in 2019

3M ADVANTEK Air Liquide Far Eastern Ltd. ATOTECH Chang Wah Electromaterials Inc. 136 APPENDIX

Chemleader Corporation DAEWON-PEAK Dai Nippon Printing Co., Ltd DISCO Corporation Dou Yee

FUJIFILM Electronic Materials Co., Ltd. Furukawa Electric Co., Ltd. Fusheng Electronics Corporation Haesung DS Co., Ltd. Henkel Corp.

Heraeus Hitachi Chemical Hon Hai Precision Ind. Co., Ltd. Hwa Shu Enterprise Co., Ltd. Jentech Precision Industrial Co.,Ltd

Kinsus Interconnect Technology Kostat, Inc. Kulicke and Soffa Industries, Inc. Kyocera KYZEN Corp. Corporation

LG Innotek Co., Ltd. Lintec Corporation LT Matal Co., Ltd. MEC Co., Ltd. Merck Oerformance Materials Ltd.

Multiformity Technology Innovation Mitsui Chemicals Inc. Mitsui High-tec MK ELECTRON Co., Ltd. Murata Manufacturing Co., Ltd. Co., Ltd.

NAMICS Corp. Nan Ya PCB Co., Ltd. Nanya Technology Corporation Nippon Micrometal Corporation NXP Semiconductors

Peak International Peco Tek Co., Ltd. Resound Technology Inc. ROHM Semiconductor Samsung Electro-Mechanics Co., Ltd.

Shin-Etsu Electronics Materials San Fu Chemical Co., Ltd Sekisui Chemical Senju Metal Industry Co., Ltd. Shennan Circuits Co., Ltd Singapore Pte. Ltd.

Shinko Electronics Co.,Ltd. SHINON LIMITED Simmtech Co., Ltd. Skyworks Solutions,Inc. Small Precision Tools, Inc.

SOLEO CO., LTD. Sumitomo Bakelite Co., Ltd. Sun Surface Technology Co., Ltd. Sunbright Applied Materials Corp. Sunrise Plastics Industry Co Ltd.

TAIXING YONGZHI ELECTRONIC Taihong Circuit Ind. Co. Ltd. Taiwan Refind Co., Ltd Taiyo Yuden Co.,Ltd. TANAKA Holdings Co., Ltd. DEvICE CO.,LTD

TOK Taiwan Co., Ltd Tokuyama Corp. Tokyo Ohka Kogyo Co., Ltd. TOPPAN Printing Co., Ltd. UBoT Incorporated Limited.

Yantai Zhaojin Kanfort Precious Metals Umate Electronic Co., Ltd. Unimicron Technology Corporation Co., Ltd.

Third Party Assurance Statement Assurance Third Party

APPENDIX 137 GRI Content Index

GRI GRI Disclosure Related Section / Explanatory Notes Page No. Disclosure Related Section / Explanatory Notes Page No. Standard Standard

GRI 102: General Disclosures 2016 102-19 Delegating authority 2.1 Organization and Structure 13

102-1 Name of the organization 1.1 Company Profile 9 Executive-level responsibility 138 102-20 for economic, environmental, 2.1 Organization and Structure 13

Activities, brands, products, and social topics APPENDIX 102-2 1.1 Company Profile 9 and services Composition of the highest 102-3 Location of headquarters 1.1 Company Profile 9-10 102-22 governance body and its 3.1 Board of Directors 33 committees 102-4 Location of operations 1.1 Company Profile 9-10 Chair of the highest 102-5 Ownership and legal form 1.1 Company Profile 9 102-23 3.1 Board of Directors 33 governance body 102-6 Markets served 1.3 Financial Performance 12 102-25 Conflicts of interest 3.1 Board of Directors 33 1.1 Company Profile 9-10 Role of highest governance 2.1 Organization and Structure 13 102-7 Scale of the organization 1.3 Financial Performance 12 102-26 body in setting purpose, 6.1 Global Recruitment and Diversity 89 values, and strategy 3.1 Board of Directors 33 6.1 Global Recruitment and Diversity 89-90 Information on employees Collective knowledge of 102-8 102-27 3.1 Board of Directors 33-34 and other workers Appendix: Social data - A. Global 131 highest governance body Workforce Structure Evaluating the highest 1.1 Company Profile 9 102-28 governance body's 3.1 Board of Directors 34 102-9 Supply chain performance 7.1 Supply Chain Overview 105 Identifying and managing 2.1 Organization and Structure 13 Significant changes to the 102-29 economic, environmental, 102-10 organization and its supply 1.1 Company Profile 9 and social impacts 3.1 Board of Directors 33-34 chain This report was approved and Highest governance body's Precautionary Principle or 102-32 authorized by the Chairman of - 102-11 3.4 Risk Management 39-42 role in sustainability reporting approach Corporate Sustainability Committee. 102-12 External initiatives 8.5 Public Advocacy 124-126 13 Communicating critical 2.1 Organization and Structure 102-13 Membership of associations 8.5 Public Advocacy 124-126 102-33 33-34 concerns 3.1 Board of Directors Statement from senior 102-14 LETTER FROM THE CHAIRMAN 7-8 2.4 Materiality Assessment and decision-maker 102-40 List of stakeholder groups 27-30 Stakeholder Communication Key impacts, risks, and 102-15 3.4 Risk Management 39-42 opportunities Collective bargaining 102-41 6.2 Talent Attraction and Retention 93 agreements Values, principles, standards, 102-16 3.3 Business Ethics 37-38 and norms of behavior Identifying and selecting 2.4 Materiality Assessment and 102-42 27-30 stakeholders Stakeholder Communication Mechanisms for advice and 102-17 3.3 Business Ethics 37-38 Approach to stakeholder 2.4 Materiality Assessment and concerns about ethics 102-43 27-30 engagement Stakeholder Communication 2.1 Organization and Structure 13 Key topics and concerns 2.4 Materiality Assessment and 102-18 Governance structure 102-44 27-30 3.1 Board of Directors 33 raised Stakeholder Communication Page No. 65-70 - 27-30 108 104 105-106 27-30 37-38 37-38 106 37-38 27-30 37-38 37-38 Related Section / Explanatory Notes Related Section 5.1 Climate Leadership 5.1 Climate to tax incentive. Please ASEH is entitled English Annual refer to page 90 of our Chinese Report or page 85 of our Annual Report. and 2.4 Materiality Assessment Stakeholder Communication 7.3 Supply Chain Sustainability Management - 2019 Key 7 Responsible Procurement Performance 7.1 Supply Chain Overview 2.4 Materiality Assessment and Stakeholder Communication 3.3 Business Ethics 3.3 Business Ethics 7.2 Supply Chain Management Framework 3.3 Business Ethics In 2019, ASEH did not engage in any political contributions. 2.4 Materiality Assessment and Stakeholder Communication 3.3 Business Ethics 3.3 Business Ethics In 2019, ASEH was not subjected to any legal actions regarding anti-competitive behavior and violations of anti-trust and monopoly legislation. Disclosure Financial implications and Financial implications opportunities other risks and change due to climate Financial assistance received from government Explanation of the material topic and its Boundary The management approach and its components management the of Evaluation approach Proportion of spending on local suppliers Explanation of the material topic and its Boundary The management approach and its components Communication and training about anti-corruption policies and procedures Confirmed incidents of corruption and actions taken Explanation of the material topic and its Boundary The management approach and its components management the of Evaluation approach Legal actions for anticompetitive behavior, antitrust, and monopoly practices GRI 201-2 201-4 103-1 103-2 103-3 204-1 103-1 103-2 205-2 205-3 103-1 103-2 103-3 206-1 Standard GRI 204: Procurement Practices 2016 (GRI 103: Management Approach 2016) Practices 2016 (GRI 103: Management GRI 204: Procurement Approach 2016) GRI 205: Anti-corruption 2016 (GRI 103: Management (GRI 103: Management Approach 2016) GRI 206: Anti-competitive Behavior 2016 Page No. 27-30 27-30 - - - - - 3 3 138-143 3 137 27-30 7-8 12 7-8 12 12 22 - Related Section / Explanatory Notes Related Section 2.4 Materiality Assessment and 2.4 Materiality Assessment Stakeholder Communication of information There is no restatement from previous report. No changes to material topics and their boundaries in the previous year. 2019.01.01 ~ 2019.12.31 The previous report was published in July 2019. We publish CSR Report annually. ABOUT OUR REPORTING ABOUT OUR REPORTING Appendix: GRI Content Index ABOUT OUR REPORTING Third Party Assurance Statement 2.4 Materiality Assessment and Stakeholder Communication LETTER FROM THE CHAIRMAN 1.3 Financial Performance LETTER FROM THE CHAIRMAN 1.3 Financial Performance 1.3 Financial Performance 2.3 UN Sustainable Development Goals and Sustainable Value Assessment 2.4 Materiality Assessment and 2.4 Materiality Assessment Stakeholder Communication ABOUT OUR REPORTING ABOUT OUR the Report encompasses The scope of manufacturing subsidiariesour principal wholly owned but excluding intermediate holding companies, companies internal trading companies, year and in their first post-merger a year companies with less than operation. Disclosure Explanation of the material topic and its Boundary List of material topics Restatements of information Changes in reporting Reporting period Date of most recent report Reporting cycle Contact point for questions regarding the report Claims of reporting in accordance with the GRI Standards GRI content index External assurance The management approach and its components management the of Evaluation approach Direct economic value generated and distributed Entities included in the Entities included consolidated financial statements and Defining report content topic Boundaries

GRI

103-1 103-2 103-3 201-1 102-47 102-48 102-49 102-50 102-51 102-52 102-53 102-54 102-55 102-56 102-45 102-46 Standard GRI 201: Economic Performance 2016 (GRI 103: Management Approach 2016) GRI 201: Economic Performance 2016 (GRI

APPENDIX 139 GRI GRI Disclosure Related Section / Explanatory Notes Page No. Disclosure Related Section / Explanatory Notes Page No. Standard Standard Direct (Scope 1) GHG 5.1 Climate leadership - Greenhouse GRI 302: Energy 2016 (GRI 103: Management Approach 2016) 305-1 71 emissions gas emissions management Explanation of the material 2.4 Materiality Assessment and 103-1 27-30 Energy indirect (Scope 2) GHG 5.1 Climate leadership - Greenhouse topic and its Boundary Stakeholder Communication 305-2 71 emissions gas emissions management The management approach 140 103-2 5.1 Climate Leadership 65-70 Other indirect (Scope 3) GHG 5.1 Climate leadership - Greenhouse and its components 305-3 71 emissions gas emissions management APPENDIX Evaluation of the management 103-3 5.1 Climate Leadership 65-70 5.1 Climate leadership - Greenhouse approach 305-4 GHG emissions intensity 71 gas emissions management Energy consumption within 5.1 Climate leadership - Fossil (non- 302-1 72 5.1 Climate leadership - Greenhouse the organization renewable) fuel, Power usage 305-5 Reduction of GHG emissions 71 gas emissions management 302-3 Energy intensity 5.1 Climate leadership - Power usage 72 Emissions of ozone-depleting 305-6 5.4 Green Facility- Air Emissions Control 82 5.1 Climate leadership - Energy substances (ODS) Reduction of energy 302-4 conservation and carbon footprint 73-74 consumption Nitrogen oxides, sulfur oxides, reduction 305-7 and other significant air 5.4 Green Facility- Air Emissions Control 82 emissions GRI 303: Water and Effluents 2018 (GRI 103: Management Approach 2016) GRI 306: Effluents and Waste 2016 (GRI 103: Management Approach 2016) 103-1 Explanation of the material 2.4 Materiality Assessment and 27-30 2016 topic and its Boundary Stakeholder Communication Explanation of the material 2.4 Materiality Assessment and 103-1 27-30 topic and its Boundary Stakeholder Communication 103-2 The management approach 5.2 Water Resource 76-78 2016 and its components The management approach 5.2 Water Resource 76 103-2 and its components 103-3 Evaluation of the management 5.3 Waste 79 5.2 Water Resource 76-78 2016 approach Evaluation of the management 5.2 Water Resource 76 103-3 Interactions with water as a 5.2 Water resource - Three-stage risk approach 5.3 Waste 79 303-1 76 shared resource assessment Water discharge by quality Appendix: Sustainability Data - 306-1 127-130 Management of water 5.2 Water resource - Waste water and destination Environmental Data 303-2 78 discharge related impacts management and control Waste by type and disposal 5.2 Water resource- Water withdrawal 306-2 5.3 Waste 79 303-3 Water withdrawal 77 method and reuse 306-3 Significant spills No significant spill in 2019 - 5.2 Water resource - Waste water 303-4 Water discharge 78 management and control GRI 307: Environmental Compliance 2016 (GRI 103: Management Approach 2016)

5.2 Water resource- Water withdrawal Explanation of the material 2.4 Materiality Assessment and 303-5 Water consumption 77 103-1 27-30 and reuse topic and its Boundary Stakeholder Communication GRI 305: Emissions 2016 (GRI 103: Management Approach 2016) The management approach 103-2 3.6 Regulatory Compliance 49 and its components Explanation of the material 2.4 Materiality Assessment and 103-1 27-30 2.2 Sustainability Strategies – 19 topic and its Boundary Stakeholder Communication Evaluation of the management 103-3 Sustainability Vision approach The management approach 3.6 Regulatory Compliance 49 103-2 5.1 Climate Leadership 65 and its components Non-compliance with 5.5 Environmental Expenditures and Evaluation of the management 307-1 environmental laws and 84 103-3 5.1 Climate Leadership 65 Investments approach regulations Page No. - 27-30 97-102 97-102 97 97-99 97-102 97-102 97-102 97-102 97-102 97-102 134 97-102 134 Related Section / Explanatory Notes Related Section Regarding employee discharges and discharges and Regarding employee sites notify their layoffs, all ASEH significant changes employees of agreements in advance to collective regulations. pursuant to local laws and dispute Any labor-management regarding collective agreements is submitted to the employee for further representatives in writing negotiation. and 2.4 Materiality Assessment Stakeholder Communication and Safety 6.4 Occupational Health 6.4 Occupational Health and Safety 6.4 Occupational Health and Safety 6.4 Occupational Health and Safety 6.4 Occupational Health and Safety 6.4 Occupational Health and Safety 6.4 Occupational Health and Safety 6.4 Occupational Health and Safety 6.4 Occupational Health and Safety 6.4 Occupational Health and Safety Appendix: Social Data – F. Workers Occupational Health and Safety Statistics 6.4 Occupational Health and Safety Appendix: Social Data – F. Workers Occupational Health and Safety Statistics Disclosure Minimum notice periods Minimum notice periods regarding operational changes Explanation of the material topic and its Boundary The management approach and its components management the of Evaluation approach Occupational health and safety management system Hazard identification, risk assessment, and incident investigation Occupational health services Worker participation, consultation, and communication on occupational health and safety Worker training on occupational health and safety Promotion of worker health Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Workers covered by an occupational health and safety management system Work-related injuries GRI 2016 2016 2016 402-1 103-1 103-2 103-3 403-1 403-2 403-3 403-4 403-5 403-6 403-7 403-8 403-9 Standard GRI 403: Occupational Health and Safety 2018 (GRI 103: Management Approach 2016) Health and Safety 2018 (GRI 103: Management GRI 403: Occupational Page No. 27-30 109-110 104 108-110 108-110 27-30 89-90 89-90 89 131 - 133 27-30 91-93 93 Related Section / Explanatory Notes Related Section 2.4 Materiality Assessment and 2.4 Materiality Communication Stakeholder 7.3 Supply Chain Sustainability Sustainability Management - Supplier Risk Assessment - 2019 Key 7 Responsible Procurement Performance 7.3 Supply Chain Sustainability Sustainability Management - Supplier Sustainability Requirement/ Supplier Risk Assessment 7.3 Supply Chain Sustainability Sustainability Management - Supplier Sustainability Requirement/ Supplier Risk Assessment 2.4 Materiality Assessment and Stakeholder Communication 6.1 Global Recruitment and Diversity 6.1 Global Recruitment and Diversity 6.1 Global Recruitment and Diversity Appendix: Social Data – A. Global Workforce Structure ASEH has provided all full-time employees with comprehensive insurance / parental leave / retirement schemes. Appendix: Social Data – D. Statistics Regarding Parental Leave 2.4 Materiality Assessment and Stakeholder Communication 6.2 Talent Attraction and Retention 6.2 Talent Attraction and Retention - Employee Communication Disclosure Explanation of the material Explanation Boundary topic and its Explanation of the material topic and its Boundary Explanation of the material topic and its Boundary The management approach The management approach and its components management the of Evaluation approach New suppliers that were screened using environmental criteria Negative environmental impacts in the supply chain and actions taken The management approach and its components management the of Evaluation approach New employee hires and employee turnover Benefits provided to fulltime employees that are not part- or temporary to provided time employees Parental leave The management approach and its components management the of Evaluation approach

GRI

103-1 103-1 103-1 103-2 103-3 308-1 308-2 103-2 103-3 401-1 401-2 401-3 103-2 103-3 Standard GRI 401: Employment 2016 (GRI 103: Management Approach 2016) GRI 401: Employment 2016 (GRI 103: Management (GRI 103: Management Approach 2016) GRI 402: Labor/Management Relations 2016 ement Approach 2016) 103: Management Approach Assessment 2016 (GRI Environmental GRI 308: Supplier

APPENDIX 141 GRI GRI Disclosure Related Section / Explanatory Notes Page No. Disclosure Related Section / Explanatory Notes Page No. Standard Standard

6.4 Occupational Health and Safety GRI 409: Forced or Compulsory Labor 2016 (GRI 103: Management Approach 2016) 97-102 403-10 Work-related ill health Appendix: Social Data - F. Workers Explanation of the material 2.4 Materiality Assessment and Occupational Health and Safety 134 103-1 27-30 Statistics topic and its Boundary Stakeholder Communication 3.5 Human Rights Management 142 GRI 404: Training and Education 2016 (GRI 103: Management Approach 2016) The management approach 45-48

103-2 7.3 Supply Chain Sustainability APPENDIX and its components 108 Explanation of the material 2.4 Materiality Assessment and Management 103-1 27-30 topic and its Boundary Stakeholder Communication 3.5 Human Rights Management Evaluation of the management 45-48 The management approach 103-3 7.3 Supply Chain Sustainability 103-2 6.3 Talent Cultivation and Development 93-96 approach 108 and its components Management

Evaluation of the management 3.5 Human Rights Management 103-3 6.3 Talent Cultivation and Development 93-96 approach Operations and suppliers at 7.3 Supply Chain Sustainability 45-48 409-1 significant risk for incidents of Management 6.3 Talent Cultivation and Development 93-96 108 Average hours of training per forced or compulsory labor Non-significant risk for incidents of 404-1 year per employee Appendix: Social Data - E. 2019 133 forced or compulsory labor either. Average Hours of Training per person GRI 412: Human Rights Assessment 2016 (GRI 103: Management Approach 2016) 6.3 Talent Cultivation and Development Programs for upgrading ASEH does not provide terminated Explanation of the material 2.4 Materiality Assessment and 103-1 27-30 404-2 employee skills and transition employees with any continued 93-96 topic and its Boundary Stakeholder Communication assistance programs employability or career transition The management approach assistance. 103-2 3.5 Human Rights Management 45-48 and its components Percentage of employees receiving regular performance Evaluation of the management 404-3 6.2 Talent Attraction and Retention 91-93 103-3 3.5 Human Rights Management 45-48 and career development approach reviews 3.5 Human Rights Management Employee training on human 412-2 45-48 GRI 408: Child Labor 2016 (GRI 103: Management Approach 2016) rights policies or procedures All employees trained in human rights policies procedures concerning. Explanation of the material 2.4 Materiality Assessment and 103-1 27-30 topic and its Boundary Stakeholder Communication GRI 414: Supplier Social Assessment 2016 (GRI 103: Management Approach 2016)

3.5 Human Rights Management Explanation of the material 2.4 Materiality Assessment and The management approach 45-48 103-1 27-30 103-2 7.3 Supply Chain Sustainability topic and its Boundary Stakeholder Communication and its components 108 Management 7.3 Supply Chain Sustainability The management approach Management - Supplier Sustainability 3.5 Human Rights Management 103-2 108-110 Evaluation of the management 45-48 and its components Requirement/ Supplier Sustainability 103-3 7.3 Supply Chain Sustainability approach 108 Risk Assessment Management Evaluation of the management 7. Responsible Procurement - 2019 Key 3.5 Human Rights Management 103-3 104 approach Performance 7.3 Supply Chain Sustainability Operations and suppliers at Management 45-48 408-1 significant risk for incidents of 7.3 Supply Chain Sustainability 108 New suppliers that were Management - Supplier Sustainability child labor No significant risk of hire child labor 414-1 108-110 and young workers exposed to screened using social criteria Requirement/ Supplier Sustainability hazardous work. Risk Assessment Page No. 27-30 54-58 54-58 27-30 59-61 59-61 27-30 115 116 27-30 119 119 Related Section / Explanatory Notes Related Section 2.4 Materiality Assessment and 2.4 Materiality Communication Stakeholder 4.1 R&D and Innovation 4.1 R&D and Innovation and 2.4 Materiality Assessment Stakeholder Communication 4.2 Sustainable Manufacturing 4.2 Sustainable Manufacturing 2.4 Materiality Assessment and Stakeholder Communication 8. Corporate Citizenship 8. Corporate Citizenship - 2019 Key Performance 2.4 Materiality Assessment and Stakeholder Communication 8.1 Social Involvement Overview 8.1 Social Involvement Overview Disclosure Explanation of the material Explanation Boundary topic and its The management approach and its components management the of Evaluation approach Explanation of the material topic and its Boundary The management approach and its components management the of Evaluation approach Explanation of the material topic and its Boundary The management approach and its components management the of Evaluation approach Explanation of the material topic and its Boundary The management approach and its components management the of Evaluation approach GRI 103-1 103-2 103-3 103-1 103-2 103-3 103-1 103-2 103-3 103-1 103-2 103-3 Standard Innovation Management (GRI 103: Management Approach 2016) Management Approach Management (GRI 103: Innovation 103: Management Approach 2016) Green Solutions (GRI Approach 2016) Social Involvement (GRI 103: Management Approach 2016) Local Communities (GRI 103: Management Page No. 108-110 27-30 50-52 50-52 - 27-30 49 49 - 27-30 62 62 Related Section / Explanatory Notes Related Section 7.3 Supply Chain Sustainability 7.3 Supply Chain - Supplier Sustainability Management Supplier Sustainability Requirement/ Risk Assessment and 2.4 Materiality Assessment Stakeholder Communication Management 3.7 Information Security Management 3.7 Information Security We don't have any substantiated of complaints regarding breaches customer privacy and losses of customer data in 2019. 2.4 Materiality Assessment and Stakeholder Communication 3.6 Regulatory Compliance 3.6 Regulatory Compliance ASEH did not receive significant fines or non-monetary sanctions for non-compliance with laws and/or regulations in the social and economic area in 2019. (By "significant violations" , we mean the fine/penalty individually costs more than $10,000 USD) 2.4 Materiality Assessment and Stakeholder Communication 4.3 Products and Services - Customer Service 4.3 Products and Services - Customer Service Disclosure Explanation of the material Explanation of the material topic and its Boundary Explanation of the material topic and its Boundary Explanation of the material topic and its Boundary Negative social impacts in the Negative social taken actions and chain supply The management approach and its components management the of Evaluation approach Substantiated complaints concerning breaches of customer privacy and losses of customer data The management approach and its components management the of Evaluation approach Non-compliance with laws and regulations in the social and economic area The management approach and its components management the of Evaluation approach

GRI

103-1 103-1 103-1 414-2 103-2 103-3 418-1 103-2 103-3 419-1 103-2 103-3 Standard GRI 418: Customer Privacy 2016 (GRI 103: Management Approach 2016) 2016 (GRI 103: Management Approach GRI 418: Customer Privacy (GRI 103: Management Approach 2016) GRI 419: Socioeconomic Compliance 2016 103: Management Approach 2016) Customer Relationship Management (GRI

APPENDIX 143 Contact Information

ASE JAPAN (YAMAGATA) USI TAIWAN (KAOHSIUNG) 1863, Ooazairyuda, Takahata-machi TAIWAN No.26, Chin 3rd Rd., N.E.P.Z., Nantze, Kaohsiung, Taiwan Higashiokitama-gun, Yamagata, 992-0324, Japan No.141, Lane 351, Sec. 1, Taiping Road, Tel: +886-7-361-7131 Tel: +81-238-57-3894 Tsaotuen, Nantou County, Taiwan Tel: +886-49-221-2700 144 TAIWAN (CHUNGLI) MALAYSIA APPENDIX No.550, Chung-Hwa Rd. Sec. 1 Chungli, Taiwan Phase 4, Bayan Lepas Free Industrial Zone CHINA (SHANGHAI-ZHANGJIANG) Tel: +886-3-452-7121 11900 Penang, Malaysia No.1558, Zhang Dong Rd., Pudong New Area, Tel: +60-4-632-8202 Shanghai 201203, China CHINA (SHANGHAI) Tel: +86-21-5896-6996 ASSEMBLY & TEST SINGAPORE No. 669, Guoshoujing Road, Zhangjiang Hi-Tech Park, 2 Woodlands Loop CHINA (SHANGHAI-JINQIAO) Pudong New Area, Shanghai 201203, China Singapore 738074 No. 501 Longgui Road, Jinqiao Export Processing (South) Zone, Pudong Tel: +86-21-5080-1060 Tel: +65-6631-4499 New Area, Shanghai 201201, China Tel: +86-21-3813-6668 CHINA (SHANGHAI) ISE Labs MATERIAL 46800 Bayside Parkway CHINA (KUNSHAN) No. 2300 Jin Ke Rd., Zhangjiang Hi-Tech Park, Pudong Fremont, CA 94538, U.S.A. No. 497, Huangpujiang Road, Qiandeng, Kunshan, New Area, Shanghai 201203, China Tel: +1-510-687-2500 Jiangsu Province 215341, China Tel: +86-21-5080-5888 Tel: +86-512-5528-0000

CHINA (KUNSHAN) SPIL CHINA (SHENZHEN) No.373, Songnan Road, Qiandeng, Kunshan, TAIWAN (Da Fong) USI Electronics Park, No. 9028, Beihuan Road, North of High-Tech Jiangsu Province 215341, China No. 123, Sec. 3, Da Fong Rd., Tantzu, Taichung , Taiwan Industrial Park, NanShan District ShenZhen 518057, China Tel: +86-512-5528-8888 Tel: +886-42534-1525 Tel: +86-755-6182-1666

CHINA (WEIHAI) TAIWAN (Chung Shan) MEXICO (GUADALAJARA) 16-1 Hai Nan Road, Economic & Technological No. 153, Sec. 3, Chung Shan Rd., Tantzu, Taichung , Taiwan Anillo Periferico Manuel Gomez Morin No. 656, Jardines de, Santa Isabel Development Zone, Weihai, Shandong 264205, China Tel: +886-42534-1525 C.P. 44300 Guadalajara, Jalisco, Mexico Tel: +86-631-591-5000 Tel: +52-33-3648-1800 TAIWAN (Zhong Ke) CHINA (SUZHOU) No. 19, Keya Rd., Daya, Taichung , Taiwan 188 Su Hong Xi Road, SIP Suzhou 215021, China Tel: +886-42554-5527 Sales Offices & Service Centers Tel: +86-512-6725-1788 If you wish to contact an ASEH sales representative TAIWAN (Hsinchu) in your region, please visit www.aseglobal.com CHINA (WUXI) No. 1-1, R&D Rd. 2, Science-Based Industrial Park, Hsinchu, Taiwan Building No. 29-B, Block No. 52 Tel：+886-3578-7799 Wuxi-High-Tech Industrial Development Zone Wuxi, Jiangsu 214028, China TAIWAN (Changhua) No.8, Sec 2, Chang Hsin Rd., Hemei, Changhua, Taiwan Tel: +86-510-8522-5352 Tel：+886-4721-8888 KOREA (PAJU) 76 Saneopdanji-gil, Gyoha-dong, Paju-si, CHINA (SuZhou) No. 288, Feng Li Street, SuZhou Industrial Park, SuZhou 215123, China Gyeonggi-do, Korea Tel: +86-0512-6253-5288 Tel: +82-31-940-0484 www.aseglobal.com This report is printed with soy ink on recycled paper. The recyceld paper is certified by FSC. This report is printed with soy ink on recycled paper. The recyceld paper is certified

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