PRESIDENT’S MESSAGEImplementing Sustainable Development Through Innovation
To all caring stakeholders of Nanya:
In 2021, the world was ravaged by COVID-19 pandemic and geopolitical tensions that have created serious challenges for many industries across the globe. Nanya Technology has further strengthened our preventative measures to protect our employees and the continuity of our FAB operation, with strong efforts, we have flexibly adjusted operational strategy to minimize external impacts and successfully achieved nine consecutive years of profitability. Thanks to the joint efforts of the management team and all employees, and deeply grateful for all the support and recognition of every sector.
“Innovation” is Our Core Value
“Innovation is Nanya’s long-term strategic goal and core value, which is the foundation of our developments for advanced process technologies and new generation products, and well positions us as a key memory supplier. With accumulating R&D experience and cultivating excellent technology team, we successfully transformed into a self-development process technology IDM company. In 2021, Nanya has completed the first-generation 10nm-class process technology (1Anm) and product verification, and scheduled for volume production in 2022. The second-generation 10nm-class process technology (1Bnm) is under development, and trial production is expected to begin in 2022. 1Bnm process technology will improve energy-efficiency by more than 60%. Furthermore, Nanya has introduced “AI smart manufacturing” to improve our automated production. We developed 70 AI applications and cultivated 350 AI specialists in 2021, which comprehensively improved our process efficiency and production capacity, making AI a driving force for adding value to production. In order to enhance the future competitiveness of Nanya and meet long-term development needs, we also planned invest NT$300 billion for Taiwan’s first 10nm DRAM FAB, and volume production is expected to begin in 2025 and will create 3,000 employment opportunities, driving economic and local development in Taiwan.
Green Memory Creates Sustainability
DRAM become a critical component for the smart era. We have developed advanced and high performance “eco-friendly DRAM products” to meet the needs of the market and our customers. All of our products integrate life cycle thinking and designs for the environment from the early design stages. In 2021, our energy-saving products accounted for 87% of our total revenue, and helped customers save approximately 712.17 million kWh of electricity over the year, allowing our innovative “green products” and technologies to make quantifiable contributions to the environment. Nanya is also actively implementing cleaner production practices and incorporating green management into our business operations. We implemented 33 energy-saving action plans in 2021, saving over 7.59 million kWh of electricity. With regard to renewable energy, we purchased 10.4 million kWh of electricity from onshore wind farms in 2021, and will continue to purchase renewable energy (e.g.,solar power or offshore wind power) in 2022. We expect that our renewable energy consumption will reach 250 million kWh within 10 years start from 2023; moreover, we will continue to make efforts toward RE 100 initiatives and work toward SBT (Science-Based Targets).
Talent Development and Cultivation
“Talents” are the foundation of a company’s innovation, operation, and sustainable development. We have implemented various methods to deepen the core values and management ideals of “integrity and responsibility”, “efficiency and innovation”, and “sustainable management”, and plan to unite our employees, while building a business that is a source of pride. In 2021, we established [We Together, We Learn, We Grow] plan, which stepped up the cultivation and development of comprehensive talent so that internal knowledge and creativity could sprout. Compared to 2020, the average number of training hours per employee increased 32.5% to 41.6 hours in 2021—the highest in the past four years. Furthermore, demand on talent has increased in the memory industry due to the rapid growth of the semiconductor industry. In response, Nanya signed an agreement with Chang Gung University to establish a master's program on memory technology. Students that enroll in the program not only receive a large scholarship, but also have a job waiting for them when they graduate. Nanya hopes to enhance the international competitiveness of Taiwan's memory industry through talent cultivation, recruitment, introduction, gathering, and retention, and hopes to provide more learning support and planning options for students.
Join Hands with Business Partners
In addition to following our own path to sustainability, Nanya is also collaborating with our upstream and downstream partners to move forward as one towards sustainability. We are guiding 295 suppliers towards our ideas of sustainability and 100% of our partners have co-signed the Nanya Corporate Social Responsibility Guarantee. We have assisted our suppliers in implementing sustainable improvements through guidance and audits, which have resulted in tangible improvements that have been completed across our supply chain. In 2021, we continued to host supply chain seminars. Furthermore, we have also jointly promoted human rights and environmental projects with suppliers. In terms of social projects, we assisted in refunding migrant workers a total of NT$45.1million in 2021. In terms of environmental projects, we lead 14 suppliers to promote energy conservation projects, and saved 3,315 MWh in 2021. Nanya will continue to exert its influence to strengthen partnerships with suppliers and further improve the sustainability performance of the overall value chain.
Employees and Society Care
Nanya continued to monitor the spread of COVID-19 through its Epidemic Response Team in 2021 to protect employee health and maintain a safe work environment. We also implemented a number of epidemic prevention and response measures, and collaborated with the medical team of Linkou Chang Gung Memorial Hospital in setting up a screening station, providing over 5,552 people (including employees and contractors) with free rapid testing services. In addition, Nanya donated 3,200 rapid test kits to the New Taipei City Government and 2,000 epidemic prevention user packs to Cardinal Tien Hospital. Furthermore, we also helped schools in rural areas of New Taipei City purchase live streaming equipment, achieving inter-school co-learning and digital equality in distance learning during the pandemic, benefiting 2,000 students.
As a responsible corporate citizen, Nanya considers ESG to be an important commitment of companies, and continues to dedicate efforts to sustainable development; in fact, our sustainability performance has been recognized in Taiwan and overseas. This shows that Nanya has achieved a balanced development of its business performance and ESG. In terms of international recognition, Nanya was awarded the “DJSI World Index and Emerging Markets Index” (ranked 1st in the global memory industry) in 2021. We were also recognized with the CDP Climate Change Evaluation’s highest honor: "A List Leadership Level" for the second year, and were awarded the “MSCI/FTSE4Good Emerging Markets Index” for the fourth consecutive year. In terms of domestic recognition, Nanya received the “National Enterprises Environmental Protection Award” and the “Green Factory” Certificate. We were also recognized with the Most Prestigious Sustainability Awards –“Top Ten Domestic Corporate Award” from the TCSA, the “ESG Integrated Performance Award” from Global Views Monthly, and were awarded the“FTSE4Good TIP Taiwan ESG Index” for four consecutive years. In addition, we ranked in the “top 5% of the Corporate Governance Evaluation” for the fourth time and were selected for the “CommonWealth Magazine Sustainable Citizen Award”.
Facing the global economy uncertainties in 2022, Nanya will continue to utilize our team wisdom to enhance our innovation and R&D capabilities, and will strive to achieve sustainable development through three strategies: "Creating Shared Value," "Promoting Sustainable Mutual Prosperity," and "Achieving Sustainable Development." Our vision is to become the "Best DRAM Partner for Smart World", we are committed to working closely with our global partners and stakeholders on the path towards sustainable development. This will further strengthen our competitive advantages and leadership in the global semiconductor industry.