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ASE Kaohsiung Advances Circular Economy and Carbon Reduction with Innovative Facility Practices

May 5, 2025

At ASE's Kaohsiung plant, the new facility built in response to the rising demand for advanced packaging has been coated with a light gray, glossy flooring made from refined and repurposed waste adhesive strips left over from the packaging process. Even the white canvas shoes worn by Ellis Yan, Director of Occupational Safety and Health at ASE, are made from recycled adhesive rolls.

Carbon Reduction Initiatives Inside and Out

The global push for carbon reduction now spans across the entire value chain and no company can act in isolation. ASE has embarked on a comprehensive and collaborative decarbonization journey, spanning from internal operations to external partnerships to reshape a sustainable ecosystem.

As part of its commitment to the Science Based Targets initiative (SBTi), ASE has pledged to reduce Scope 1 and 2 emissions — such as electricity and natural gas consumption at its facilities — by 35% by 2030. In addition, ASE aims to reduce   Scope 3 emissions by 15%, addressing upstream activities such as raw material procurement and transportation, reinforcing its dedication to decarbonizing the entire supply chain.

Currently, 20% of ASE’s energy consumption comes from renewable sources. The company is also advancing toward an annual 3% reduction target for Scope 1 and 2 emissions, with 14 of its facilities already certified as Green Factories. While ASE continues to strengthen its own decarbonization efforts, Scope 3 emissions —which account for approximately 85% of its total carbon footprint — have become a strategic priority. To reduce Scope 3 emissions, ASE is implementing a two-pronged strategy through enhanced supply chain management and the promotion of a circular economy.

ASE has established a Low-Carbon Supply Chain Alliance with over a dozen key suppliers, working closely from its central facilities to collaboratively identify and implement carbon reduction solutions. To mobilize suppliers effectively, ASE has introduced an internal transformation — fostering cross-departmental collaboration to drive influence across multiple touchpoints in the supply chain. The company also aims to help more suppliers gain visibility and recognition for their decarbonization efforts along this shared sustainability journey.

In 2017, ASE became the first in the industry to introduce the "Supplier Sustainability Awards". By 2020, the company introduced a new incentive mechanism, encouraging suppliers to submit sustainability collaboration proposals. This marked a shift from purely recognition-based awards to tangible financial support, strengthening partnerships and deepening supplier engagement in sustainability initiatives.

Repurposing Waste at the Source

In addition to supplier engagement, ASE is proactively reducing Scope 3 carbon emissions by embracing circular economy principles into its operations.

“We rethink waste from a circular perspective, which opens up new possibilities,” said Leon Yi, Senior Director of Facility Operations at ASE.

Single-use packaging and containers are cleaned to a certified standard and returned to upstream and downstream partners for reuse. This includes IC carrier trays, which undergo high-temperature cleaning before being reintegrated into the production cycle.

ASE has initiated the “Resource Circulation Network Program” to promote the repeated use of clean trays, effectively reducing waste. Additionally, packaging process residues, such as waste adhesive strips are reprocessed, refined and incorporated into construction materials and coatings. Silica extracted from these materials is even used to manufacture new sneakers. These circular practices help reduce waste volume and achieve a 60% reduction in carbon emissions.

Starting with supplier collaboration and extending to resource use, ASE’s Scope 3 carbon reductions efforts have significantly exceeded earlier targets. By mobilizing its value chain partners, ASE is driving meaningful progress toward its net-zero carbon goals.

For more Chinese information, please visit: https://csr.cw.com.tw/article/44146

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