Sustainability at ASE Technology Holding

As part of our continuous focus on driving a more sustainable and resilient supply chain, we have introduced an ESG criteria in our supplier performance evaluation process in 2024. The weighting for ESG is 10% of the overall evaluation, and forms the basis for supplier screening and selection. At the 2025 Supplier Conference, we recognized 17 suppliers for their outstanding performance in sustainability development.

At the same time, the rapid growth of AI and high-performance computing (HPC) has given rise to increasing energy consumption and consequently, reducing carbon emissions has become a significant business challenge. Promoting a green and low-carbon supply chain is a key pillar of ASEH’s net-zero strategy. Our key approaches include: establishing low-carbon strategies, enhancing carbon data transparency, driving low-carbon transformation, implementing low-carbon transportation, and building a low carbon supply chain.

In 2025, we invited 108 raw material and equipment suppliers to participate in the Carbon Disclosure Project (CDP) to help drive environmental reporting and transparency. Of those invited, 84% responded and 61% received a score of B or higher. Among the suppliers that completed the questionnaire, 85% have completed GHG inventories and are undergoing third-party verification, 45% have SBTi-validated targets or plan to set SBTs, and 70% are using renewable energy. We have started working closely with our material and equipment suppliers on low-carbon initiatives since 2024. To date, our equipment suppliers have implemented 81 energy-saving measures and expected to adopt 13 different types of energy-efficient equipment. Meanwhile, our material suppliers have incorporated low-carbon manufacturing processes and used recycled materials or low-carbon alternatives. These initiatives are all designed to reduce carbon emissions and ultimately achieve a decarbonized supply chain.

As the industry continues its expansion trajectory, the supply chain plays an increasingly indispensable role in business operations. To enhance worksite safety, we published a Contractor Safety Orange Handbook as a guide for contractors to learn about key safety practices and self-directed safety management. It is important for us to work together with our contractors to build a safer workplace for all, while fostering a shared prosperity across the supply chain.

The deployment of AI and digital technologies across all our global manufacturing facilities is a core corporate strategy at ASEH. In Taiwan alone, our smart manufacturing operations is approximately 45% of the entire domestic industry.

Besides applying AI in manufacturing, we are also implementing AI technologies to optimize energy efficiency and pollution control. Through real-time smart monitoring, and early warning and automated controls, we are able to improve our response capabilities and recycling rate, as well as reduce energy consumption.

One such application was ‘AI Nose’, a patented digital technology capable of detecting odors generated during manufacturing processes in real time, and identifying equipment issues, oxidation and other risks. AI Nose was implemented in 2025 and allowed us to reinforce monitoring and facilitate predictive maintenance, thereby enhancing workplace safety and process stability.

The growing demand for AI computing power is driving heterogeneous integration toward larger packaging sizes, sparking increased interest in Panel-Level Package (PLP) technology. At ASEH, we are not only accelerating the R&D of PLP technologies but also investing heavily in process automation for the volume production of large panel sizes to address package size limitations, capacity and cost inefficiencies of traditional wafer-level packaging.

Compared with traditional wafer packaging, PLP enables more packaged dies per unit area, improving material utilization and productivity. PLP also supports large redistribution layers (RDL), high-density interconnects, and multi-chip heterogeneous integration architecture, thereby meeting the packaging needs of high-end applications such as AI data centers and HPC.

From research and development, process verification to production automation, PLP showcases our technological innovations and integration capabilities in advancing next-generation advanced packaging solutions.

In 2024, we ramped up efforts to implement life cycle inventory management across our global locations, allowing us to quantify carbon emissions at every stage of the product life cycle, and drive energy transition, process optimization, resource recycling and value chain engagement. In 2025, we recorded a global inventory coverage rate of 54.3%. Additionally, we have gradually increased the use of renewable energy and low-carbon transportation at our facilities, and collaborated with suppliers on the transition to sustainable materials by 2030. Our net-zero 2050 ambition remains on track as we focus on energy optimization and operational efficiency in alignment with our sustainability transformation roadmap over the next 3 to 5 years.

At ASEH, we aim to provide a platform for senior high school students and young entrepreneurs to build innovative technologies and business models that address sustainability issues such as net zero, AI and sustainable development. In 2025, we hosted the 2nd ASE Teen Sustainable Innovation Competition Camp and Sustainable Kaohsiung: Youth Startup Challenge. These initiatives are designed around an ecosystem that acts as incubators for developing young sustainable talent and creating sustainable innovations.

Sustainable Kaohsiung: Youth Startup Challenge. Organized in collaboration with the Kaohsiung Youth Bureau and National Sun Yat-sen University, the challenge is focused on addressing the challenges of net-zero, AI and sustainable development. Featuring a prize money of over NT$2.1 million, startup programs, expert mentorship and access to a wide range of resources, the event attracted 157 youth startup teams and helped young people transform their sustainability ideas into competitive startup solutions.

ASE Teen Sustainable Innovation Competition. Featuring a NT$1 million total prize money and a one-year mentorship program, the competition was designed to encourage senior high school students to identify sustainability issues in everyday life and develop solutions. Adequate support and access to resources are provided to winning teams. We will also keep track of their progress and conduct field tests and feasibility assessments to transform their sustainability initiatives into practical uses that create positive social impacts. Numerous achievements from the winning teams have also garnered recognition by being featured in the Scientific American magazine.

Taiwan is fast becoming an aging society, and we are doing our part to address the care needs of the silver population. By the end of 2025, we had already established four elder day care centers near our manufacturing facilities in Kaohsiung, Chungli, Taichung and Changhua, providing care for approximately 104 elderly people.