Recycle and Reuse
Circular Economy and Waste Management Policy
ChipMOS is committed to the principles of “resource circulation and environmental sustainability.” We recognize that sustainable resource utilization through circular practices and effective waste management are key pathways to reducing environmental impact and achieving the goal of zero waste. Accordingly, ChipMOS has established a voluntary circular economy and waste management system, striving to maximize the value of waste resources, minimize the environmental impact of operations.
▪ Circular Economy and Waste Management Policy
Reduction of Material Source
ChipMOS provides comprehensive semiconductor back-end assembly and testing services. Principal raw materialsNote 1 include solder balls, lead frames, substrates, and molding compound. We drive source-level reductions and minimize waste by tracking annual material consumption rate. By optimizing substrate and lead-frame utilization across equipment and consolidating epoxy resin applications to cut changeover losses, we have significantly improved raw material efficiency.
In 2025, surging market demand drove up overall material consumption and loss rates. Plants actively optimized utilization to hit target loss rates: solder balls (3.2%), lead frames (2.2%), substrates (0.7%), and molding compound (3.0%), adjusted for annual product mix. Lead-frame loss increased due to more small-batch customer orders requiring frequent machine setups. For solder balls, a Q3 2025 scheduling optimization project reduced changeover frequency, cutting solder ball consumption by approximately 39%.
Reusing of Packaging Materials
To maximize resource efficiency, ChipMOS applies the 3R principles—Reduce, Reuse, and Recycle—to expand material reduction assessments. Without compromising raw material quality, we have actively engaged two major testing customers since 2023 to evaluate reduction and recycling opportunities, including alternative specifications, material assessments, and process optimizations, driving carbon reduction, waste minimization, and resource value creation.
★ 2025 Results: Carbon emissions reduced by approximately 33 tons of CO2e, representing a 65% growth compared to 2024.
■ In-House Recovery of Inner Boxes for Semi-Finished Products: Recovered approximately 6,600 kg, equivalent to avoiding the procurement of approximately 36,000 cardboard boxes.
■ Reusable ESD Transport Boxes for Subcontracted Shipments: Replaced inner boxes with reusable ESD transport boxes, driving significant impact:
- Volume handled: Rose from ~5,000 kg in 2024 to ~12,500 kg in 2025 (150% growth).
- Avoided procurement (cartons and bubble wrap): Increased from ~34,000 units in 2024 to 81,000 units in 2025 (138% reduction in purchasing needs).
Developing Circular Economy - Turning Wastes into Resources
ChipMOS actively promotes waste reduction initiatives, integrating process and facility units to gradually extend the concepts of "life cycle" and "source management." By seeking reduction and recycling solutions from production processes and equipment in the factory, ChipMOS drives a circular economy within the plant. Through Reduce, Reuse, and Recycle methods, resources are fully utilized while balancing economic development and environmental protection. Furthermore, the company implements "ISO 14051 - Material Flow Cost Accounting" to grasp information for management improvement, enabling waste to become a resource in the circular economy and enhancing the value of resource reuse.
★ Closed-Loop Circular Economy (Annual Carbon Reduction: 1,922 tCO2e)
We have successfully transformed waste into high-value raw materials. Leveraging key technologies, recovered gold (97.8%) is refined into targets, while silica and waste resin are reprocessed into cleaning sheets (1.6%, spherical silica) and building materials/protective gear (0.6%, non-spherical silica). Returning waste to production lines significantly reduces environmental impact.
★ Waste Recycling and Reuse (Annual Carbon Reduction: 1,605 tCO2e)
Resource value is maximized through qualified external recycling networks. Gold (60.6%) serves as the primary contributor, supported by diverse initiatives including chemical drums (8.1%), copper (7.6%), and nickel (6.2%). These efforts reduce virgin resource consumption, turning waste into sustainable momentum.
★ [Case Study] Green Innovation — Transforming Waste into Value via Closed-Loop Eco-Material Clean Compounds
In 2025, ChipMOS actively explored upcycling opportunities for waste molding resin. By implementing precise source classification for process-generated molding compound waste and partnering with technology suppliers for technological collaboration, ChipMOS successfully transformed waste molding compound into high-purity spherical silicon dioxide (SiO2). This breakthrough addresses a major challenge in electronic waste treatment and establishes a circular economy model where recycled resources are fed back into the manufacturing process.
【Further Reading】
▪ 2024/7/1 The first in OSAT to be certified by the Recycled Claim Standard
Waste Management
ChipMOS, in addition to its own operational activities, also reviews the waste-related impacts of upstream and downstream activities in the value chain, comprehensively grasping the environmental impact. ChipMOS annually assesses and manages environmental impacts based on the ISO 14001 Environmental Management System from a product lifecycle perspective, including raw material supply, in-house production, and waste disposal.
Process Control Actions
■ For upstream (raw material stage), ChipMOS uses green materials to ensure products do not contain environmentally hazardous substances.
■ For downstream waste disposal, ChipMOS entrusts qualified companies to handle it in accordance with the law and collaborates with the Green Energy and Environmental Engineering Research Institute of Industrial Technology Research Institute for periodic auditing of some waste disposal companies.
■In order to address the non-hazardous/hazardous waste generated from in-factory production, various waste reduction management initiatives are implemented annually. Additionally, collaborative efforts with suppliers/customers are made to promote waste reduction measures.