To all stakeholders of Nanya Technology:
Amid the rapid iteration of global technology and the ongoing restructuring of the industrial landscape, the semiconductor industry stands at a pivotal historical moment of transformation and advancement. The rapid development of applications such as artificial intelligence, high-performance computing, smart devices, and data centers drives the demand for memory and its continued evolution, while elevating expectations for technological innovation, quality management, operational resilience, and sustainable governance. In the face of an ever-changing external environment, Nanya Technology has consistently adhered to prudent operations and pragmatic improvement. We continuously create shared value, foster sustainable prosperity, and advance sustainable operations to build a stronger foundation for future development.
For Nanya Technology, beyond a continuous focus on technological breakthroughs, 2025 was a year of comprehensive advancement in management thinking, governance mechanisms, and corporate responsibility. We understand that quality is fundamental to earning customer trust and serves as an important cornerstone supporting long-term corporate development. Therefore, Nanya Technology continues to refine its quality management system as well as strengthen product reliability, process stability, and abnormality prevention capabilities. Through cross-departmental collaboration and continuous improvement mechanisms, we implement quality assurance at every stage, from research and development to manufacturing, supply, and service. We not only strive to meet standards, but also endeavor to establish a quality-centric management culture, making superior quality a key driving force behind competitiveness and sustainability.
In technological innovation, R&D is the most fundamental competitive strength of Nanya Technology
Technological research and development are the lifeblood of the technology industry and the core of sustainable corporate development. In 2025, R&D personnel accounted for 31.0% of Nanya Technology's total workforce, reflecting our long-term commitment to proprietary technologies. In advancing smart factories, Nanya Technology completed the development of 152 AI applications between 2018 and the end of 2025, generating annual benefits of NT$420 million. These applications have been deeply integrated into key operational areas such as process control, quality inspection, yield enhancement, and energy management. Globally, the Company has accumulated more than 8,600 patents, with 919 patents granted in 2025 alone. Nanya Technology has also been listed among the Clarivate Top 100 Global Innovators for consecutive years, further strengthening its technological moat and competitive advantages.
In talent development, our people are the cornerstone of Nanya Technology's innovation
We firmly believe that great technology must be supported by great talent. In 2025, the key talent retention rate reached 95.4%, demonstrating employees' recognition of and trust in the Company's development direction. Regarding the cultivation of young talent, we have trained 1,612 semiconductor professionals in total since 2021, representing a 31% increase compared to the cumulative total in 2024. These efforts continue to inject new momentum into the industry. Our commitment to human rights is also reflected in concrete ways across various aspects, including talent management; workplace safety; diversity, equity, and inclusion; prohibition of discrimination; prohibition of forced labor; and supply chain requirements. Nanya Technology will continue to advance human rights due diligence and related improvement initiatives, transforming human rights management from policy commitments into practical implementation and further enhancing the substance of corporate responsibility.
In environmental sustainability management, low-carbon transformation is a long-term undertaking, and not merely the establishment of annual targets
Nanya Technology continues to align with international sustainability trends and climate governance principles by incorporating climate-related risks and opportunities into its operational decision-making and risk management framework. From identification and assessment to response mechanisms, we are gradually strengthening our management depth and governance network. Through ongoing efforts in energy conservation, carbon reduction, process optimization, and enhanced reduction of process gases, carbon emissions per unit of production capacity in 2025 were 381 kgCO2e per kilopiece, the reduction rate of perfluorocarbon (PFCs) emissions reached 93.6%, while cumulative energy savings totaled 78,773 MWh, continuously exceeding annual targets. In addition, the Company achieved double "A" ratings, the highest possible, for climate change and water security from CDP.
In responsible procurement, sustainability responsibilities must extend throughout the entire industry chain
Nanya Technology recognizes that the realization of sustainability values cannot remain confined within the Company, but must extend across the entire industry chain. Through continuously strengthening communication, collaboration, and engagement with suppliers, we enhance supply chain management mechanisms, risk assessments, audit operations, education and training, and capability building, thereby progressively improving supply chain partners' management capabilities in areas including environmental protection, safety, labor and human rights, and ethical management. In 2025, a 100% conflict-free minerals commitment was maintained for all Nanya Technology products. In addition to achieving 100% for the completion rate of significant suppliers' self-assessment questionnaires, the correction rate of deficiencies identified during audits, and the signing rate of the Code of Conduct, the Company was also recognized as a CDP Supplier Engagement Leader, distinguishing itself as a semiconductor company with dual international accolades for supply chain transparency and sustainable governance. This achievement is also the best embodiment of our efforts to transform sustainability from a management requirement into the basis for shared consensus and mutual prosperity.
In ethical governance, governance quality is the foundation of long-term corporate trust
Nanya Technology continues to strengthen the Board of Directors' oversight role in sustainability-related matters, and responds to international sustainability standards and stakeholder expectations through a more comprehensive governance framework and transparency in information disclosure. In information security, the number of suppliers completing supply chain information security assessments reached 150, representing a 164% increase compared with the previous year. Customer satisfaction reached 95.7 points, exceeding the target of 91 points, while 114 customer technology exchange sessions were held throughout the year, surpassing the established target across the board. We believe that sound governance mechanisms not only contribute to stable corporate operations, but also serve as a vital foundation for building long-term trust and sustainable value.
Looking ahead
Nanya Technology will continue to steadily advance its operational and sustainability strategies, seize opportunities in the midst of industry transformation, and uphold its vision of becoming The Best DRAM Partner for Smart World. From technological innovation and quality enhancement to low-carbon transformation and responsible governance, the Company will endeavor to drive comprehensive corporate enhancement. We remain convinced that only by continuously strengthening sustainability governance and industry collaboration while pursuing business growth can long-term competitiveness be established in the rapidly evolving global technology landscape. Nanya Technology will continue to work together with employees, customers, supply chain partners, and stakeholders to move the semiconductor industry toward a more sustainable, resilient, and responsible future.
