Sustainable Manufacturing

As a manufacturing service provider, ASEH embraces the concept of “doing more with less” and committed to four sustainable manufacturing principles, namely sustainable designs, sustainable procurement and material selection, sustainable production and sustainable packaging and logistics. In the initial product/process design stage, sustainable manufacturing practices (as shown in the diagram below) are incorporated into the entire product life cycle; from raw materials, manufacturing, distribution, usage, to disposal, as well as at subsequent stages of product manufacturing and distribution. Our approach allows us to provide customers with sustainable products of higher value while minimizing the impact to the environment and improving eco-efficiency.

We are committed to:

• Compliance with all applicable laws and regulations

• Managing hazardous substances in components and raw materials used in manufacturing

• Creating solutions for the design of lightweight, thin, small and energy-efficient products

• Reducing the environmental impact from manufacturing, packaging, and transportation

ASEH recognizes that the semiconductor and electronics manufacturing industry consumes a substantial amount of raw materials. The ASEH Board of Directors have approved the following Sustainable Raw Materials Policy based on the company’s sustainable manufacturing principles.

We conduct training for employees involved in managing the sustainability aspect of raw materials, educating them on green products, hazardous substance control, product carbon footprint, and conflict minerals. In 2025, 50,941 people participated in these training courses, totaling 52,215 training hours, resulting in the increase of environmental awareness, and understanding the significance of utilizing appropriate raw materials for sustainability.

To achieve sustainable manufacturing, effective management of hazardous substances is crucial. We implement control measures using the QC080000 Hazardous Substance Process Management System. As an example, at ASE Kaohsiung, the team diligently identifies and manages hazardous substances that are subject to controls in accordance with regulatory and customer requirements. Next, in supply chain management, we classify raw materials into green and non-green categories based on their compliance with hazardous substance requirements. Using the Substance Control System (SCS) and Green ProductSystem(e-GP), a raw materials database is established to comply with the EU RoHS Directive, REACH Regulation, US Toxic Substances Control Act (TSCA), as well as other national laws and customer standards. This proactive approach allows us to set robust requirements for hazardous substance management and standards that exceed regulatory and emerging trends.

We have expanded the scope of our control over chemicals that cause health hazards and increase environmental risks, including bioaccumulation, persistent pollutants, carcinogens, mutagens, and reproductive toxicants. Apart from the control of chemicals in products, we have also banned the use of, and progressively introduced alternatives for chemicals that are prohibited or restricted by customers or on the EU REACH list. For example, ASE Kaohsiung has established a high-risk restricted substance list as the basis for its chemical management measures, referencing relevant Taiwanese laws and regulations, EU REACH regulations and customer requirements. An integrated chemical management system has also been established for chemical lifecycle management; implementing control measures for various stages including the introduction of new materials, procurement, storage, use and disposal.

For newly introduced materials or those with changes to chemical composition, the environmental health and safety unit shall conduct careful evaluations to ensure that the materials do not contain high-risk, restricted substances. Procurement or use of the materials can only proceed after a hazard identification and risk assessment is conducted, and the risk level is determined as acceptable. The risk assessment ensures comprehensive risk management and covers chemical toxicity, degree of health hazard to personnel, frequency and duration of use, exposure scenarios, effectiveness of existing control measures and various factors.

Hazard labeling and information disclosure for the storage and use of chemicals are mandatory procedures. Protective measures and SOPs corresponding to the hazard levels must also be established to ensure that operators take appropriate measures to protect themselves while performing their jobs. Employee health and safety is of the utmost priority to the company. As such, we continuously drive the reduction and substitution of high-risk substances, and we are committed to providing safe, healthy, and environmentally friendly manufacturing services.

To gain a comprehensive understanding of the sustainability performance of our product portfolio, we apply the Taiwan Sustainable Economic Activities Reference Guidelines  as the basis for systematically assessing our products against the criteria for sustainable economic activities . We systematically assess whether each product meets the criteria for sustainable economic activities to gain a comprehensive understanding of the sustainability performance of our product portfolio. Through this approach, we aim to progressively increase the proportion of products that meet these criteria, strengthen our competitiveness in sustainability, and support the transition to a low-carbon and sustainable economy. We have established sustainable product targets, aiming to increase revenue from sustainable product by 1% annually starting in 2025. To achieve this target, we continue to invest significant resources in sustainable product development. In 2025, we allocated approximately USD 28 million in combined capital expenditures (CAPEX) and operating expenditures (OPEX), and invested approximately USD 560,000 in research and development (R&D) to advance sustainable technologies and product innovation. We also strengthened our employees' expertise in sustainable products and related regulations through regular training programs, delivering a total 40,174 training hours in 2025. In addition, we have established incentive mechanisms to promote the development and sales of sustainable products. For example, at USI, we offer sales incentives and annual bonuses to encourage green product sales. Our sales personnel are required to establish annual green product strategy targets in accordance with our plans and requirements, regularly report their progress to supervisors, and undergo periodic performance reviews. We award incentives and annual bonuses based on the achievement of these targets and overall performance evaluation results. By integrating sustainability principles throughout our product lifecycle management, we continue to enhance the environmental and social value of our products.