In the past, due to the limitations of manufacturing technologies, a single chip could only provide a few channels with one or two wavelengths for detecting a specific wavelength of light. If multiple channels with different wavelengths are required, several different ICs must be used, and the different ICs were produced with different wafers. In addition, the filter film produced in the past was made on a glass substrate. The wafers and glass substrates are combined with packaging technology and the finished product is packaged. For applications that require multiple channels such as smart phones, optical communication applications, and bio-sensing applications, multiple ICs must be used.

VisEra has developed wafer-level optical components to create the possibility for diversification and multi-channel applications. We provide the option of combining what must be completed with multiple ICs and provide diverse multi-channel spectral wavelengths on a single IC. In the wafer-level process development, we directly produce the multi-layer filter film on the wafer. With multiple channels on a single IC, has a smaller footprint and uses the wafer area more efficiently. As we reduce the use of wafers, we reduce the costs of using and packaging the aforementioned glass substrates, and support environmental protection and energy conservation.

The other technology is the technical advancement for micro lenses. We adjust the size and curvature of the micro lenses to optimized conditions, which helps increase the amount of light entering the sensor. The increase in light creates the two following significant advantages in product applications:
The first improvement is the contribution to nighttime driving safety. The widespread adoption of advanced driver. assistance systems (ADAS) increased the demand for digital imaging assistance. It captures light in nighttime conditions and helps drivers see more clearly. The improvements in the light collection efficiency of the micro lenses directly supports the industry, effectively increases driving safety, and indirectly supports energy consumption reduction and autonomous driving. In addition, 3D-assisted detection often requires direct illumination of the object to be tested (including humans) with infrared light. Micro lenses can be used to detect light sources with lower intensity, which can effectively reduce the intensity of the infrared light used. It makes the mobile phone more power-efficient and provides longer battery time. The human body exposed to the light due to the requirement for auxiliary detection can thus be safely illuminated without additional concerns through the use of this convenient new technology.

VisEra issued sustainability self-evaluation questionnaires to key suppliers in 2022 to create a responsible supply chain and maximize our sustainability influence. The questionnaire incorporates the five sections of the RBA Code of Conduct including Labor, Health and Safety, Environment, Business Ethics, and Management System. It is used to measure the suppliers’ level of participation and implementation of corporate social responsibility. We distributed 101 questionnaires and the response rate was 100%.

Based on the purchase order value, importance of products supplied, and results of the sustainability self-evaluation questionnaire, we identified five suppliers of high concern and included them in the domestic onsite audit and foreign online audit program. The audit team consists of the procurement, occupational safety, quality assurance, and RBA management units. They used the Supplier Quality System Questionnaire, Supplier Contractor ESH Assessment Table, and Supplier Sustainability Self-Evaluation Questionnaire to conduct audits and provide assistance.

From the audit results, we compiled a total of 47 improvement items (including 10 deficiencies and 37 recommendations) in the five main areas of the RBA Code of Conduct. We asked suppliers to provide detailed improvement plans within two weeks after receiving an audit report. The plans must include the case closure date and the person responsible for case closure. VisEra implements follow-ups to track the improvement plans proposed by suppliers to ensure the implementation of the improvement plans. As of the end of 2022, the case closure rate for assistance provided by VisEra to suppliers for deficiencies was 94%.

To reduce supply chain risks, VisEra formulated the following key management actions to help suppliers establish sustainable supply chain capabilities.

As the impact of global warming on human life intensifies, the net-zero transformation becomes more than merely a matter of a company’s competitiveness in the international market, and it comes a key element for the sustainable development of the company. VisEra has over 1,400 employees. To obtain information on the greenhouse gas emissions associated with employee commutes, we conducted a survey of employees’ commute patterns in 2022 with methods provided in the “GHG Protocol Releases Scope 3 Calculation Guidance” created by the World Business Council for Sustainable Development (WBCSD). The results are used as references for the Company’s subsequent efforts to promote low-carbon commutes. The results show that the greenhouse gas emissions from commutes of VisEra employees averaged 1.99 kg CO2e/person-day and the main contribution was from cars and motorcycles powered by fossil fuels. According to Noussan et al. (2022), electric vehicles and mass transit vehicles generate only 15-59% of the greenhouse gas emissions of such vehicles and motorcycles powered by gasoline and diesel. VisEra will encourage employees to use low-carbon transportation, but also evaluate the increase of parking points and coverage of transportation vehicles to build a more complete low-carbon connection network and reduce the environmental impact of employees’ commuting process.

To attain the goal of recycling process wastewater, the wastewater produced during the production process is first collected through separate pipelines based on the level of water content and whether it can/cannot be treated to avoid cross-contamination that could result in the inability to recycle any wastewater. In the first stage, the wastewater that can be recycled by preliminary filtration is directed into the reclaimed water collection system. In the second stage, the reclaimed water is produced after a special treatment system is installed. At present, due to cost and site restrictions, the wastewater with high water content and photoresist stripping solution is still disposed by contractors of outsourced services. If there is a breakthrough in treatment technology in the future, we will prioritize the recycling of this water source. After the concentrated efforts in the two stages, the water resource usage rate can be calculated as “(tap water consumption + reclaimed water) / tap water consumption = number of times a drop of water is used”. It means that the water can be used approximately 2.73 times.

Talent is critical for the operations of a company and is the lifeblood of a sustainable business. Fierce international competition, passing of experience, and the poaching of talents by companies are factors that highlight the importance of human resources for sustainable business operations. To retain talents and ensure sustainability, VisEra has set three major medium-term objectives for human resources and gradually implemented them to retain outstanding talents.

In addition to actively attracting outstanding talent, VisEra also emphasizes the retention of key and high-performing employees. Through competitive salary and benefits, the implementation of performance management systems, multi-faceted incentive and reward measures, and diversified personal development programs, we aim to enhance employee dedication and engagement. Our target for the retention rate of key talents in 2022 was above 80%, and for high-performing talents, it was above 70%. In 2022, we achieved an actual retention rate of 88% for key talents and 93% for high-performing talents. Under the continuous implementation of talent retention strategies, we have set a target of not less than 85% for the retention rate of key and high-performing talents by 2030, aiming to continuously improve the overall operational performance of the Company.

VisEra is fully aware of the importance of talent development to the sustainable growth of the Company. We use the promotion system to address the needs for organizational development for employees with high potential to make the most of their professional and management skills. The internal promotion rate for management roles in 2022 was 78.4%, surpassing the 2022 target of 65%. To retain outstanding talents, we have set a goal for attaining no less than 70% internal promotion rate for management roles by 2030 to support the development of both organizational development and personal career development.

VisEra pays close attention to the career development plans of employees and uses transparent internal vacancies to provide employees with a platform for diverse development. It increases the possibilities and prospects of their careers to facilitate internal flow of talents and achieve the goal of the having the right person for the right job. In 2022, we provided more than 81 internal job openings and the internal employee substitution rate for openings was 66.7%, surpassing the 2022 target of 63%. The Company continues to implement the internal hiring system to support both organizational development and personal career development with the target of attaining no less than 65% internal promotion rate for vacancies by 2030.

As contractors adopt different safety and health regulations due to different work methods, work areas, and approaches, VisEra referenced the parent company’s “TSMC Blue Book for Contractors’ Safety, Health and Environmental Protection” for compiling the VisEra Blue Book in 2021 based on the motto of “zero accident and zero occupational disasters” and incorporated the spirit of “self-protection, mutual protection, and supervision”. All employees of the Occupational Safety and Environmental Protection Unit worked together to produce environmental, safety, and health notices for three stages including before construction, during construction, and after construction, as well as detailed and correct construction guidelines complete with drawings based on complicated regulations. The information is provided as an information pack for contractors to learn and implement with greater ease when reading the Blue Book and during actual work. The Blue Book can also be shared with different industries to improve the environmental, safety, and health standards of all industries.

We continue to monitor the construction and operation requirements and regulatory requirements of the plants, compile common deficiencies and difficulties in implementation for contractors, and continue to improve the “VisEra Blue Book for Contractors’ Safety, Health and Environmental Protection”. The Blue Book is currently provided for contractors to download on the website. We hope to create a safe and healthy workplace by sharing our knowledge and experience. In 2022, contractors accumulated 430,296 work hours in the plants. The Occupational Safety and Environmental Protection Unit enhanced inspections and the number of audited cases in contractor inspections increased significantly (19 cases) by 8 cases compared to 2021 (11 cases). We shall work with contractors to identify hazards, continue to reduce occupational safety and health risks, and create a safe and healthy workplace together.

VisEra has always supported artistic cultural development. Since 2019, we have collabo-rated with art and cultural institutions to exhibit works by contemporary artists every quarter. The exhibitions support the development of art and culture, cultivate the artistic sensibilities of employees, and add vibrancy to the workplace.

In 2022, we worked on exhibitions with institutions such as World Vision Taiwan, Ming Shan Art Gallery in Hsinchu, and Capital Art Center in Taipei. The exhibitions help employees support children in underdeveloped areas and enjoy the oil paintings and lithography works of landscape and portraits by contemporary artists. Expenses for 3 sessions totaled NT$36,000.

The primary targets of many malicious attacks include companies as well as their supply chain suppliers. Hackers target suppliers in the upstream and downstream supply chain because they may have weaker information security protection. Hackers thus launch attacks from the flanks to breach the information security of the primary targets. To protect the security of the supply chain and strengthen supplier information security, VisEra conducted supplier information security surveys in 2022 for 20 major suppliers identified based on ESG criteria. The survey included remote connection management, DMZ security protection mechanisms, Internet connection security, email information security, password policy and management of accounts with special authorization, security updates, backup and recovery test exercises, information security reports, and information sharing.

The results of the surveys showed that suppliers have set up appropriate risk control measures for the aforementioned items. For example, they control Internet access with proxy servers, implement identity verification with two-factor authentication, conduct regular vulnerability scans and updates to address vulnerabilities, and use IPS and firewalls to protect the company network. VisEra will use a third-party security inspection platform to verify the information security management items specified in the responses of suppliers to ensure information security in the supply chain.