【Reported by ijiwei on October 14】In today's global industrial landscape, corporate development goals are no longer limited to revenue and profit growth. Sustainable operations have gradually become a new core issue, encompassing multiple dimensions such as environmental protection, social responsibility, and corporate governance. Amid the dual challenges of cyclical downturns and green transformation in the global semiconductor industry, FocalTech Systems Co., Ltd. (hereinafter referred to as "FocalTech") has gradually established differentiated competitive advantages through continuous investment in ESG (Environmental, Social, and Governance). FocalTech not only integrates ESG concepts into corporate governance and product innovation but also collaborates with customers to create a green win-win paradigm through supply chain partnerships and social welfare initiatives.

Recently, FocalTech released its 2024 Environmental, Social, and Governance Report (ESG Report), showcasing its comprehensive practices and performance in sustainable development. As a global leader in human-machine interface chip design, FocalTech is committed to providing capacitive touch chips, LCD/AMOLED display driver chips (DDICs), LCD/AMOLED Integrated Driver & Controller (IDC/TDDI) and capacitive fingerprint recognition chips for mobile electronic devices. The 2024 ESG Report fully reveals the company’s operational performance and specific actions in six key areas: "Robust Governance, Partner Prosperity, Green Environmental Protection, Friendly Workplace, Social Care, and Innovative Value Breakthroughs," sharing FocalTech’s commitments and achievements in sustainable development with its partners.

In 2024, FocalTech continued to attach great strategic importance to ESG governance, achieving sustainable, high-quality corporate development and making positive contributions to the touch and display driver IC industry and society at large. According to the 2024 ESG Report, FocalTech recorded annual revenue of NT$14.539 billion, with employee salaries and benefits totaling NT$2.28 billion.

FocalTech noted that as the global economy stabilized in 2024 and consumer demand gradually recovered, the company strengthened its foothold in the smartphone market while expanding into non-smartphone segments such as tablets, notebooks, and automotive electronics, achieving significant growth. Annual shipments increased by 26%, far exceeding the market average. The company demonstrated strong performance in AMOLED touch controllers, notebook modules, and automotive markets, highlighting its advantages in diversified technology integration. Benefiting from AMOLED shipment growth, the company’s net profit after tax surged by over 60% year-on-yearv.

Jo Lee, FocalTech’s Corporate Governance Officer, stated, "In the long-term development of the company, we adhere to the principle of steady operations, actively embrace global sustainability and digital transformation trends, deepen ESG core values, leverage AI to enhance operational efficiency, and steadily advance toward our long-term goal of achieving net-zero carbon emissions."

Energy Conservation and Carbon Reduction Toward Net-Zero Goals: "Green Innovation" in Chips Fuels High-Quality Development

To achieve the unity of environmental, social, and economic benefits,

FocalTech, as a responsible enterprise, actively addresses global climate change challenges and accelerates green transformation. In 2024, the company reduced its electricity consumption by 21.66% compared with the previous year and invested a cumulative NT$7.4 million in energy-saving equipment upgrades, effectively lowering its operational carbon footprint. More importantly, FocalTech completed ISO 14064-1 greenhouse gas inventory and verification, marking a critical step toward its 2050 net-zero carbon emissions vision.

On the product manufacturing and application front, FocalTech insists on "green innovation." For chips, the company employs AI big data analytics to shorten design cycles and reduce errors while integrating AI models into touch and fingerprint recognition algorithms to improve accuracy. Additionally, FocalTech has independently developed AI model computing chips to enhance AI model instruction cycles, exemplifying its commitment to "pursuing AI excellence and innovation."

FocalTech stated, "Guided by the spirit of green innovation and ESG commitments, we incorporate environmental considerations from the very beginning of chip design and manufacturing. Through 'green innovation' in chip technology, we help the display panel and smart device industries achieve win-win outcomes in energy savings, efficiency improvements, cost reductions, and enhanced environmental value. With technological, product, and service innovations, FocalTech’s chips have gained recognition and adoption by leading international brands and Tier 1 companies, achieving industry-leading shipment volumes and market share. This is the best testament to ESG-driven sustainable development."

Robust Framework for Long-Term Growth: Green Supply Chain Fosters Ecosystem Prosperity

FocalTech is advancing ESG management with concrete actions to fulfill its corporate social responsibility commitments.

Corporate governance remains the cornerstone of FocalTech’s sustainable development. In 2024, the company maintained its position in the top 6%–20% of the Corporate Governance Evaluation for the eighth consecutive year and appointed two new independent directors, further enhancing the board’s professionalism, independence, and diversity. Meanwhile, FocalTech established the "Code of Ethical Conduct and Business Ethics," embedding integrity and transparency into its corporate culture through training and compliance systems to mitigate corruption risks and ensure steady progress in a complex market environment.

Recognizing that ESG sustainability requires collaboration across the supply chain, FocalTech works closely with suppliers to refine technologies and processes, meeting customer expectations. In response to global environmental trends and customer sustainability standards, the company has built a green product management system.

According to Jo Lee, FocalTech’s supply chain management adopts four strategies: "Supplier Evaluation," "New Product Introduction," "Periodic Management," and "Continuous Improvement." The company actively implements feasible and specific measures, requiring suppliers to uphold social responsibility and work towards sustainability. FocalTech’s suppliers have endorsed this approach and are fully committed to these goals.

FocalTech has established comprehensive annual supplier audit and review systems, conflict minerals and hazardous substances management, and a local green procurement mechanism. Audit criteria include quality management systems, environmental screening (compliance with green product requirements and ISO 14001 certification), and social screening (ISO 45001 the Occupational Health and Safety Management System and RBA social responsibility compliance). Partners are required to sign the "Supplier Code of Conduct" and implement carbon emission management and energy-saving measures. Through green procurement policies, FocalTech prioritizes products with eco-labels or those that are energy-efficient, environmentally friendly, low-pollution, reusable, or durable, gradually forming a green ecosystem across the supply chain.

People-Centric Philosophy: Building a Model for a Happy Workplace

FocalTech adheres to a "people-centric" philosophy. In 2024, the company invested over NT$60 million in employee benefits, ensuring all staff enjoy comprehensive welfare programs. Recognized with the "Best Employer Award for Growing Enterprises," FocalTech places great emphasis on talent and workplace environments. The company’s ISO 45001 Occupational Health and Safety Management System has significantly improved employee health safeguards. Through equal employment opportunities, gender equality policies, occupational safety enhancements, diverse educational resources, systematic training, and career development pathways, FocalTech fosters a respectful, diverse, and friendly environment where employees can grow and create value.

Since 2021, FocalTech has invested NT$22.93 million in industry-academia collaborations to cultivate the next generation of semiconductor talent, injecting sustained momentum into the industry.

As a socially rooted enterprise, FocalTech continues to drive philanthropic initiatives. The company supports social welfare foundations, encourages employee donations, and participates in diverse charitable activities to realize its sustainability vision. Through product charity sales, volunteer services, and environmental improvement projects, FocalTech helps create a more inclusive environment for growth and employment for people with disabilities, demonstrating its commitment to social inclusion. In 2024, FocalTech received multiple social responsibility awards, including the 2025 "IC Industry Awards" in Mainland China, TCSA "Taiwan Corporate Sustainability Awards," and recognition from U.S. brand customer GoPro, further elevating its social influence.

Future Outlook: ESG-Driven Development to Empower Customer Value Upgrade

Looking ahead, FocalTech will continue to focus on its six ESG strategies—"Robust Governance, Partner Prosperity, Green Environmental Protection, Friendly Workplace, Social Care, and Innovative Value Breakthroughs"—while integrating AI and advanced IC design technologies to enhance R&D and operational efficiency, accelerating progress toward its 2050 net-zero carbon emissions vision.

FocalTech emphasized that as global ESG trends accelerate, ESG is no longer an "optional question" for enterprises but a "mandatory question" determining their competitiveness. Industry experts note that financial institutions and international clients increasingly incorporate ESG performance into evaluation systems. Companies leading in sustainability can seize business opportunities and orders early, while those lagging risk market elimination.

FocalTech’s ESG practices not only enhance its operational resilience and global competitiveness but also create new green value for customers. In this green race, FocalTech will leverage AI innovation to implement ESG-driven sustainability actions, aiming to expand its positive impact in the semiconductor industry, operate steadily, and collaborate with customers to build an inclusive and sustainable future.