Message from the Chairman

As of 2024, FocalTech has been ranked in the top 6% to 20% of all TWSE listed companies in the Corporate Governance Evaluation for eight years. This strongly highlights the Company’s commitment to corporate governance. We will continue to improve our governance systems to build a strong base for the Company’s long-term and stable development. With the appointment of independent directors Mr. Hsing-Chien Tuan and Mr. Jim Lai, the expertise, independence, and diversity of the board of directors has been strengthened. The most recent board has also reached 50/50 parity between independent and non-independent directors.

The Company will continue to adhere to the principles of Prioritizing Expertise and Right Person for the Job when nominating director candidates, taking into consideration their industry experience, specialized competencies, and contributions to the Company’s long-term development. We do this in hopes of working toward a diverse, inclusive board composition, further promoting the value of innovation and sustainability.

Based on the firm belief that corporate governance is the foundation of a company’s sustainable operations, FocalTech has always focused on our core business and realizing the core value ​​of ethical management. The Company also strictly complies with laws and regulations to protect the rights and interests of shareholders, and ensure the interests of all stakeholders. Under a comprehensive governance framework, employees are encouraged to practice the spirit of corporate ethics for FocalTech to fulfill our commitment to sustainable development with practical actions.

Based on the core business philosophy that focuses on customer success and teamwork, FocalTech works with suppliers to achieve progress in technology and process, and meet the diverse needs and expectations of customers. In addition, in response to global environmental trends and brand customers’ sustainability standards, the Company has established a green product management system, which has been recognized by the world’s major manufacturers.

We are also proactive in promoting supply chain’s sustainable development. In addition to assisting supply chain partners in obtaining ISO 9001, ISO 14001, ISO 45001, ISO 14064-1, ISO 27001, and ISO 26262 certifications, and complying with corporate social responsibility standards such as Hazardous Substance Free (HSF) green product requirements, conflict mineral requirements, etc., FocalTech also promotes carbon emissions management and energy saving measures, and has formulated the Supplier Code of Conduct, which all suppliers are required to sign and comply with.

FocalTech was honored with multiple awards in 2024, including the Corporate Social Responsibility Award from our customer GoPro US, a China IC Industry Award, and a Taiwan Corporate Sustainability Awards (TCSA) Silver Award.

We see our customers and suppliers as long-term partners. Through close collaboration with them, the Company builds win-win sustainable ecosystems, and continuously improves product and service quality to enhance customer satisfaction.

FocalTech supports net zero carbon emissions, and is committed to taking energy-saving measures within the Company. In addition to investing NT$7.4 million in programmable logic controller (PLC) control systems, LED panel lights, and computer room cooling systems, the Company has been promoting the importance of electricity saving among employees in recent years. The relocation to our newly purchased offices in Hsinchu has improved the Company’s overall energy efficiency – electricity consumption in 2024 was reduced by 21.66% as compared to 2023, a remarkable result achieved through the Company’s efforts.

The Company completed the ISO 14064-1 inventory and verification in 2024, which is ahead of the schedule specified in the Sustainable Development Roadmap for TWSE-listed/TPEx-listed Companies formulated by the Financial Supervisory Commission.

As a member of the global semiconductor product supply chain, FocalTech has an obligation to assume responsibility for environmental sustainability. By implementing environmental safety and health policies and by continuously promoting greenhouse gas inventories, we meet environmental health and safety (EHS) compliance requirements for our business activities; reduce our business operations’ negative impacts on the environment; provide customers with eco-friendly and energy-efficient products; and grow our portfolio of energy-saving products year by year.

To achieve the goal of environmental sustainability, the Company will strive for continuous improvement in product design, and launch products that are more energy-efficient and have lower environmental loads. We are doing our part for environmental sustainability.

As required by TCFD standards and the Financial Supervisory Commission, the Company also conducts climate change risk and opportunity analyses, and takes corresponding response measures. We will continue to implement ISO 14064-1 third-party verification every year in the future. In addition, FocalTech will create a list of green electricity providers and stay informed about the green energy market trends and carbon markets, to evaluate the feasibility of transitioning to green electricity as our main power source, and reduce Category 2 carbon emissions.

The Company spent c. NT$60,564,527 on employee benefits in 2024, allowing 450 of our employees to access a variety of work-life benefits. FocalTech prioritizes employee well-being because talent is not only the Company’s asset, but also the foundation of the Company’s sustainable development.

FocalTech’s emphasis on talent is reflected in the work environment and conditions we provide. In 2024, not only did we win recognition in the form of a Growing Enterprise Best Employer Award, but we put great emphasis on employees’ physical and mental health, personal development, and work-family balance, all aimed at helping employees build a sustainable career with FocalTech.

Harmonious employer-employee relations also play an important role in an enterprise’s long-term and stable development. In FocalTech, employees have multiple channels to express their opinions. We are committed to providing a save and respectful workplace for all employees, and ensure that our business practices align with environmental sustainability and ethical guidelines. FocalTech also promotes human rights policies and gender equality, and upholds the principles and requirements of the Responsible Business Alliance Code of Conduct.

In terms of talent cultivation and development, FocalTech’s total investment in cultivating semiconductor talent in Taiwan over the period from 2021 to 2024 has reached NT$22.93 million. Partners include the National Tsing Hua University College of Semiconductor Research; National Yang Ming Chiao Tung University; National Taiwan University of Science and Technology; National Sun Yat-sen University; and more. Through such partnerships, we continuously encourage talent to go into the semiconductor industry.

FocalTech aims to achieve social inclusion and sustainability through ESG practices to fulfill our corporate social responsibility. We have supported the Children Are Us Foundation for two years in a row, by encouraging employee donations and engaging in a variety of public welfare actions. To create a more friendly environment for people with disabilities to pursue career development and employment opportunities, the Company organized charity sale activities, engaged in volunteering services, and carried out environment improvement projects in 2024 to demonstrate FocalTech’s commitment to social inclusion.

In terms of social responsibility practices, the Company encourages employees to support the Children Are Us Foundation’s charity sale activities to benefit people with intellectual disabilities. This helps enhance the visibility of creative work by people with intellectual disabilities at the shelter workshop, and creates more sales opportunities for them. In addition, our volunteer team provides support to people with intellectual disabilities as they do needlecraft at the Foundation’s workshops. This encourages interaction and communication between people with disabilities and the general public, and helps build a culture of inclusion and mutual respect.

To improve shelter workshops’ work environment, the Company also encourages volunteers to participate in the Warm Heart Room renovation project; through assisting in flooring installation and bookcase assembly, volunteers provide people with intellectual disabilities with safer, more comfortable spaces to work and rest in. Improved workshop facilities mean better safety and user-friendliness in the work environment, and thus providing better care for people with disabilities. These actions not only demonstrate corporate social responsibility (CSR), but also manifest the spirit of ESG. We hope that our long-term commitment can promote social engagement and independent development for people with disabilities, to build a more inclusive and sustainable future.

FocalTech will keep our commitment to achieving net-zero carbon emissions by 2050, and continue to introduce advanced technologies to improve IC design performance and R&D efficiency.

In 2025, emerging applications such as AI, high-performance computing, electric vehicles, etc. are driving the next wave of growth momentum for the semiconductor industry. However, increased geopolitical risks, changes in tariff policies, exchange rate fluctuations, and intensified market competition still bring many challenges and uncertainties to economic and industrial development.

In response to a changing world, FocalTech has built up the solid technical strengths and market base we need to achieve product diversification and optimal global market layout for resilient operations. In addition, we will focus on high value-added applications and product portfolio optimization, to enhance overall profitability and long-term competitiveness.

We will maintain our sound operating practices, to proactively embrace global sustainable development and digital transformation trends, and to deepen our ESG core value. We will also introduce AI to enhance operating efficiency, and steadily advance toward the long-term goal of net zero carbon emissions.

FocalTech will continue to work with all employees, customers, and supply chain partners to face challenges and explore opportunities, in order to achieve company development and social sustainability.