Employee Care

Management Approach

ChipMOS is dedicated to protecting all employees, maintaining their human rights, and  extending our impacts to suppliers to protect the rights and interests of all members of our supply chain. We guide suppliers of ChipMOS to jointly follow the Responsible Business Alliance (RBA) Code of Conduct through comprehensive supply chain management mechanism, so as to respect workers, undertake ethical management, be environmentally-friendly, and to provide a safe and worry-free workplace environment.

Human Rights Risk Management

ChipMOS conducts an annual risk assessment of labor rights and ethics to ensure that human rights risks in the entire plant are effectively controlled and to reduce or eliminate various labor rights and ethics risks Since 2016, we have implemented the RBA Responsible Business Alliance Code of Conduct Self-Assessment Questionnaire (SAQ) and internal audit operations to review and confirm human rights risk assessment every year. Through voluntary risk control, self-assessment and control, we ensure the effective control of human rights risks in the all the fabs and reduce or eliminate various labor rights and ethics risks. This in turn leads to specific improvement of human rights-related measures and creation of an equal working environment. According to the RBA 7.1.1 SAQ criteria, the assessment results are scored on a scale of 0 to 100. They are then categorized into 3 risk levels: (1) ≥ 85 indicates low-risk, (2) ≥ 65 and ≤ 85 indicates moderate-risk and (3) < 65 indicates high-risk.

According to the 2023 assessment results, ChipMOS’s overall enterprise score and the score of each operating site were ≥85, indicating that the overall risk of the fabs was low including Hsinchu fab., Zhubei fab., Zhubei fab. 2, Hukou fab. and Tainan fab., and Tainan fab. 2.

ChipMOS Human Rights Risk Assessment and Response

Human Rights Related Training

To protect employees’ interests and fulfill the corporate social responsibilities, ChipMOS has promised to conform to RBA 7.0 code of conducts, to ensure employees fully understand their own interests, healthy and safe working fields, environmentally protective actions, Regulations Governing Professional Moral Conduct of the Company, and the implementation of human right education and corporate social responsibilities in the management system. All employees must receive the human right education and trainings when they come onboard. In 2023, a total of 3,300 new employees received RBA and other on-the-job human-right courses, completing a combined total of 1,296.3 hours of training, which translated to 61% of all employee training hours.

Diversification and Inclusion

ChipMOS also insists on recruiting the right people for the right job. In terms of the nationality distribution of employees, 80.28% are nationals and 19.72% are non-nationals, mainly Filipinos.At ChipMOS, we believe that promoting labor-management harmony and creating a friendly workplace are the foundations of a happy enterprise. We seek to foster a culture of Diversity, Equality, and Inclusion by recruiting diverse talents and broadening the horizons and careers of our employees. We take good care of our Filipino employees and achieve effective talent retention through a comprehensive migrant management system. The percentage of our Filipino employees who have served for more than 9 years is 10.97%, demonstrating that our employees are able to work at ChipMOS with stability and peace of mind.

To evaluate the convenience of machine operation and communication, we mainly chose Filipinos whose official language is English to reduce the risks of work discomfort and misunderstanding. In addition, to ensure that Filipino employees can work in Taiwan comfortably, we pay them full employment fees before and after onboarding. We are committed to complying with the relevant requirements of international labor conventions and RBA. At the same time, we actively promote the life, physical, and psychological care of Filipino employees and provide workplace support and labor security for overseas employment. During the pandemic, the Company covered the costs of PCR testing, transportation, and pandemic insurance in full to ensure a healthy and safe work and life. In 2022, the Company started promoting contract renewal incentives for Filipino employees and provided them with retention incentives after their contracts expired. In 2023, The retention rate of the Filipino employees was 88.5%, an increase of 12.9% from 2022 (75.6%). The Company started to hire foreign spouses, regardless of nationality, in 2021 in response to the need for talents. We provide foreign spouses with learning opportunities and enable them to acquire skills, while also reducing the Company's shortage of workforce to form a win-win situation is achieved.

Principles of Foreign Employee Care

Diverse Communications and Appeal Systems

In addition to diverse and open communication channels, ChipMOS have established comprehensive internal and external complaint mechanism, which includes periodical meetings, employee suggestion boxes, Chairman's mailboxes, Audit Committee mailboxes, cybersecurity suggestion boxes, contact in person or by phone, employee interview, EAP hotline and special communication channel, and more. Through these channels, employees and stakeholders can raise concerns about potential or actual negative impacts caused by the company and seek assistance. This ensures the protection of the rights and interests of all employees, customers, and suppliers. The responsible departments handle these matters with complete confidentiality and anonymity, aiming to facilitate open communication and effectively address relevant issues. The response rate is used as the follow-up indicator. We are committed to promoting labormanagement communication and human rights-friendly management.

ChipMOS holds quarterly "Labor-Management Meetings" in compliance with the law. These meetings provide a platform for elected labor representatives from each of our fabs to report on the latest labor-related updates. These reports cover topics such as the workforce status and growth, training courses, and welfare activities. The purpose of these meetings is to strengthen communication between labor and management, and encourage employee participation in decision-making and discussions.

In response to the Company's implementation of RBA, if employees have questions about the policy or are willing to provide practical suggestions, the Company encourages employees to share their opinions with the audit unit or other responsible departments and make improvement suggestions to manifest the spirit of mutual good. When stakeholders of the Company have concerns about the Company's business activities, such as illegal or improper incidents, or situations that may harm their own interests, they can report them through the Audit Committee mailbox or directly approach the Legal Office and Audit Office.

There will be no major labor disputes in 2023; in 2023, a total of 27 related opinions and responses from employees will be received, and all feedback will be responded to and processed immediately. The acceptance and closing rate is 100%, and there are no special cases, and there is no delay. or accumulated cases. If there is a complaint of sexual harassment, it will be investigated and tried by the handling committee, and it will be coordinated and completed in accordance with laws and regulations. The health center will also share articles related to gender relations from time to time, and in accordance with the regulations of Article 6 of the Occupational Safety and Health Law, to carry out the harm of illegal workplace violations in the company Identification and risk assessment surveys to educate employees to prevent incidents of gender discrimination.

Note 1: Evaluate whether it is a special case according to the actual situation of the case, such as violation of national laws, company regulations or cases that may affect the operation of the company

Diverse Communication Channels