Fellow Nanya Stakeholders:
The year 2023 presented us with tough challenges. Geopolitical uncertainties, including the China-US trade conflicts, and wars in the middle east and Ukraine, impacted the global market along with the slower-than-expected economic recovery. DRAM makers faced financial difficulties and cut production during market downturn.
At the same time, 2023 also positioned us in the early innings of the most exciting possibilities. The power of AI unleashed a thrilling prospect of the DRAM industry. The robust demand for higher performance created by AI computing accelerated the development of and migration to more advanced products, including DDR5 and HBM.
Nanya responded to the challenges and opportunities with determined investment in R&D while persisting with our dedication to climate change mitigation and social responsibilities. Bottoming out from 2023, Nanya continues to advance with strengthened resilience to create sustainable values for stakeholders as the Best DRAM Partner for the Smart Generation.
Innovation
DRAM, as the key to a smarter generation, is a critical enabler for a greener future with even higher performance. At Nnaya, innovation lies at the heart of our operation. Our 16Gb DDR5 and 8Gb DDR4 products powered by 2nd generation 10nm-class process technology (1B) will enter mass production in the second half of 2024. The construction of the new fab, invested with NT$ 300 billion, progressed as scheduled. Once completed, it is expected to create more than 3,000 job opportunities and lead the leap of our 10nm-class technology development.
As of 2023, more than 6,800 patents were granted, 110 AI applications were developed for smart manufacturing and 450 AI-specialised talents were trained. In addition, we encouraged creative ideas with competitions and incentives for innovation. In 2023, we were proud to be selected as the Top 100 Innovator by Clarivate.
Green Manufacturing
Nanya has set a SBTi-approved target to reduce 25% of GHG emissions by 2030, and aims to achieve the goal from two ends: product development and the manufacturing process. We incorporate the elements of green product from the start of the lifecycle and the whole process of product development is supervised by the Green Product Promotion Committee. In 2023, high energy efficiency products accounted for around 90% of our revenue and saved our customers over 514 million kWh of electricity.
Our products are manufactured in fabs certified as green factories by the government. In 2023, we adopted the Alliance for Water Stewardship (AWS) standards to optimise water management. The carbon footprint of the production process was monitored through digital systems in real time. Regarding energy consumption, we unrolled 36 projects to save around 5 million kWh. We used around 24 million kWh renewable energy and plan to purchase 250 million kWh of renewable energy with a 10-year contract.
Talent Engagement
In response to the increasing demand for talents, Nanya started from strengthening the strategic partnerships with universities to diversify our pipeline. For example, we offered lectures for students of Ming Chi University to equip prospect talents with integrated knowledge of ESG and semiconductor.
Nanya is committed to foster an environment championing diversity, equity and inclusion (DEI) with action plans covering talent development, employee benefits, social volunteering and human rights protection. For example, the We+ Project blended the concepts of DEI into trainings of our fellow colleagues.
Supply Chain Management
We believe that collective efforts create larger impacts. In 2023, Nanya unrolled a decarbonisation project involving 10 suppliers with the government's incentive. Aiming to reduce CO2e by 6,300 tons in 2 years, the project is expected to calculate carbon footprints of 15 products, set up digital verification and online carbon assessment platforms, and implement solutions for decarbonisation.
We endeavour to bridge the communication of different parties for shared value. We regularly organise supply chain seminars, which featured biodiversity in 2023, to initiate dialogues between supply chain partners and experts. We also spare no efforts in supporting initiatives of industry associations. As the co-founder of the Semiconductor Climate Consortium of SEMI, we look forward to facilitating more engagement between industry partners.
Community involvement
Nanya supports volunteer engagement to give back to the communities. In 2023, we have donated to the underserved communities in Taishan District, and hosted a cycling fundraiser for the Saint Mary's Hospital in Taitung. As a part of the New Taipei City Government's distance education project, we donated the devices for distance learning to empower elementary school students in remote communities with quality education. In 2023, more than ten thousand people from Nanya's employees, academia partners, and suppliers created positive social and environmental changes through our projects.
Recognitions
We are proud to be recognised by prominent entities around the globe:
- Included in the Dow Jones Sustainability World Index and the Emerging Markets Index (Semiconductors and Semiconductor Equipment Category)
- Ranked the first among memory companies in the S&P Global Corporate Sustainability Assessment (CSA)
- Selected into 'A' lists by CDP in both Climate Change & Water Security
- Awarded the Top 10 Taiwanese Sustainable Manufacturing Companies by the Taiwan Institute for Sustainable Energy
- Received the Excellence in Corporate Social Responsibility Award by CommonWealth Magazine
- Ranked top 5% in the 10th Corporate Governance Evaluation by Taiwan Stock Exchange Corporation
Future Prospects
The consolidation of sustainability standards leads to a more rigorous examination of ESG performance. At the same time, companies must tackle the complex challenges of geopolitical conflicts and economic headwinds.
Against this background, Nanya responds with the three strategic pillars: Creating shared value, Promoting mutual prosperity, and Realising sustainable operation. We look forward to continuing the pursuit of a sustainable future with all our partners around the globe.
