Energy and resource consumption

Raw materials management policy description

Policy HSF quality policy
Commitment Green products that achieved 100% compliance with the international regulations, industry standards, and customer requirements
Responsible unit Green Product (Management) Committee
Resources invested 1.Establish a test report management system.
2.Establish a supplier promulgation and return system of hazardous substances declaration.
3.Establish a hazardous substance screening device (XRF).
Complaint mechanism Auditing Office’s Mailbox
Goals 1.Green procurement ratio of 100%.
2.Effectiveness of suppliers’ third- party laboratory test reports.
3.Incoming product XRF inspection pass rate of 100%.
Action plans Source management
Other measures -

Waste management policy description

Policy Conduct continuous improvement, and prevent pollution, injury and unhealthy factors, as to reduce the risk control cost and support green procurement.
Commitment Respond to various eco-friendly/ environmental protection actions, cherish resources, create a comfortable working environment, properly conduct various pollution prevention measures, and deepen the EH&S culture.
Responsible unit EH&S Div.
Resources invested Improve process technology to reduce pollutants generated during production and environmental protection personnel training costs
Complaint mechanism Provide feedback through the e-mail address [email protected] com at the CSR website
Goals Overall utilization rate of 85% Waste density lower than 1.7 (ton/million in revenue)
Action plans Maintain overall utilization rate and waste density
Other measures -

International system certification

From a source management approach, Unimicron manages the quality of raw materials through the ISO 9001 and QC 080000 Hazardous Substance Process Management System to ensure that the environmental impact of back-end waste can be minimized. Therefore, the purchased raw materials are 100% in compliance with relevant international regulatory requirements, including RoHS, REACH, Directive 94/62/EC, China RoHS, California Proposition 65, Montreal Protocol, etc., and such compliance is ensured by yearly test reports received from a third-party laboratory. Regarding incoming and finished products, in addition to the self-inspection, the Company also periodically commissions third-party laboratories for the testing to provide customers with hazardous substances free assurance. In terms of managing the wastes generated by the Company’s Management, the implementation of ISO 14001 scrutinizes the Company’s environmental risk background and keeps tabs on relevant impacts to formulate a corresponding management system.

Resource Management

In order to maximize the use of resources, Unimicron has established a complete management process in the various stages of use of materials. The material preparation is based on the S/S and WIP tables as the control points of the material plan, and in coordination with daily, weekly and monthly Management, achieves the minimum inventory and the least shortage of materials.

Main raw material usage

Unimicron always aims to provide high quality and environmentally friendly products to our customers around the world. Our procurement philosophy for raw materials is also mainly based on environmental friendliness. The three major raw materials used for product production are substrates, potassium gold cyanide and film. The usage in 2018 was approximately 2.62 million pieces / 11.9 million PNL, 3,200 kg, and 146 thousand rolls / 3.7 million PNL, respectively. They are 100% original materials and are not recycled/reused materials. Meanwhile, we also recycle packaging materials. The trays used for carrier shipments are given priority to be purchased for reuse. The trays are collected by Unimicron’s suppliers from the customers for reuse purposes. The quantity of recycled tray procurement accounted for 40% of the total procurement of trays in 2018. Due to the difference in customer base and requirements, the recovery rate has changed in the past three years.

Type of raw material Area Unit 2014 2015 2016 2017 2018
Substrate Taiwan pcs 3,256,432 1,465,202 1,306,665 1,062,604 1,012,188
PNL 3,516,572 3,011,416 3,432,666 3,706,742 4,082,477
Mainland China pcs 2,438,560 1,975,013 1,984,420 1,787,085 1,608,995
PNL 6,623,648 6,126,228 5,262,779 6,434,883 7,813,582
Total pcs 5,694,992 3,440,215 3,291,085 2,849,689 2,621,183
PNL 10,140,220 9,137,644 8,695,445 10,141,625 11,896,059
Potassium Gold Cyanide Taiwan Kg 2,959 1,419 1,378 1,369 1,363
Mainland China Kg 1,818 1,645 1,777 1,732 1,886
Total Kg 4,777 3,064 3,155 3,101 3,249
Film Taiwan rolls 50,099 40,759 157,115 157,115 93,157
PNL 2,909,184 2,052,812 2,431,719 2,431,719 2,525,704
Mainland China rolls 37,380 37,448 119,552 119,552 53,245
PNL 6,084,456 3,873,073 2,410,550 2,410,550 1,170,074
Total rolls 87,479 78,207 276,667 276,667 146,402
PNL 8,993,640 5,925,885 4,842,269 4,842,269 3,695,778

Energy

The energy directly used by Unimicron for its Management in 2018 includes gasoline (0.003 x 109 million joules), diesel (0.025 x 109 million joules), fuel oil (0.021 x 109 million joules), natural gas (0.366 x 109 million joules), and liquefied petroleum gas (0.003 x 109 million joules). Indirect energy consisted in electricity (5 x 109 million joules) and steam (0.0001 x 109 million joules). The total energy consumption was 5.4 x 109 million joules and the consumption intensity was 7.1 x 104 million joules/ million in revenue. Among them, the consumption of natural gas was the highest in fossil fuels, and the consumption of purchased electricity was the highest in indirect energy. The use of gasoline was mainly for the company vehicles, diesel for trucks and generators, fuel oil and natural gas for boilers, and liquefied petroleum gas for boilers and cooking in kitchens. Since 2014, the Group has gradually changed the fuel of boilers from diesel to cleaner natural gas. The total consumption of diesel in 2018 was 60% lower than that in 2014.

Energy consumption

Energy type Unit Consumption area 2014 2015 2016 2017 2018
Gasoline KL Taiwan 5 5 9 13 15
Mainland China 148 150 167 119 112
Total 153 155 176 132 127
Diesel KL Taiwan 1,379 724 450 411 182
Mainland China 428 374 269 302 532
Total 1,807 1,098 719 713 714
Fuel oil KL Taiwan 606 422 450 488 512
Mainland China 0 0 0 0 0
Total 606 422 450 488 512
Natural gas m3 Taiwan 4,913,244 5,690,240 6,147,126 6,005,930 7,531,420
Mainland China 2,700,552 2,421,077 2,328,477 2,119,135 2,519,511
Total 7,613,796 8,111,317 8,475,603 8,125,065 10,050,931
Liquefied petroleum gas Kg Taiwan 0 0 0 0 0
Mainland China 109,695 109,445 90,14 68,200 64,620
Total 109,695 109,445 90,14 68,200 64,620
Electricity MWh Taiwan 752,231 780,390 784,638 872,660 940,182
Mainland China 395,113 368,440 370,880 373,535 439,653
Total 1,147,344 1,148,830 1,155,518 1,246,195 1,379,835
Steam Tons Taiwan 0 0 0 0 0
Mainland China 0 13,781.35 13,277.60 14,488 19,654
Total 0 13,781.35 13,277.60 14,488 19,654

Calculation factors:
The heating value of various types of energy is as follows: Gasoline (Taiwan: 32,635,200 kJ/kL, Mainland China: 33,379,250 kJ/kL), diesel (Taiwan: 35,145,600 kJ/kL, Mainland China: 36,040,940 kJ/kL), fuel oil (Taiwan: 40,166,400 kJ/kL), natural gas (Taiwan: 35,564 kJ/m3, Mainland China: 38,931 kJ/m3), liquefied petroleum gas (Mainland China: 50,179 Kg/m3), electricity (Taiwan and Mainland China: 3,600,000 kJ/MWh), and steam (Mainland China: 2,762.9 kJ/ton)

Power consumption intensity

Unit of intensity Consumption area 2014 2015 2016 2017 2018
MWh / Million TWD in revenue Taiwan + Mainland China 18.58 17.77 18.45 19.17 18.22

Note 1: The unit of revenue is TWD.

Water resources

Unimicron belongs to the PCB manufacturing industry, which has complicated production procedures and needs to use a lot of water resources, making water sources and water quantity one of the key elements for continuous operation. In order to cope with Taiwan’s topographical characteristics and water shortage risks due to extreme climate and droughts caused by climate change, each of Unimicron’s plants are assessed for their use and preservation of water resources in the initial stage of plant construction, and reservoirs are constructed within the plants to ensure that no sudden water shortage crisis will occur due to lack of water resources, and to maintain the stability of water supply. Unimicron’s plants are not located in areas with frequent water shortages and droughts. The main source of water is tap water, followed by well water and rainwater. The water storage capacity of each area and the water use status of each plant is frequently monitored and managed. In 2018, the water consumption of each plant took a small proportion of water intake from the water supplies, with no significant impact on the water sources.

District Main source of water supply Annual water consumption and annual water withdrawal from water supplies
Taoyuan Plant Shihmen Dam 1.02%
Hsinchu Plant Longen Weir 2.02%

We cooperate with the government policies to regulate water use. Although losses and disasters caused by insufficient water sources or excessive rainfall in the areas where the plants are located seldom occur, we still establish contingency measures for water resources dispatch for drought periods. We actively carry out water resources standardization and management through the tracking of regime lights. The emergency response water dispatch team is in charge of water trucks, water tanks, water sources and other matters regarding water resources dispatching, as to ensure uninterrupted Management.

Regime lights Government measures Unimicron’s contingency measures
Normal water supply
Stable supply Water monitoring in various regions / Water use management in each plant
Tight water supply
Fallow Establishment of Emergency Response Water Dispatch Team / Preparation of Emergency Response Water Plan
Stage one
Reduced water supply during specific periods Produce water-saving measures / Demand for water trucks / Water reserve backup measures
Stage two
Reduction of industrial water supply Emergency Response Water Dispatch Team Management / Implementation of Water Restriction Measures at Different Stages
Stage three
Regulate water supplies to areas at different times Emergency Response Water Dispatch Team Management / Implementation of Water Restriction Measures at Different Stages

In 2018, the percentage of water resources used in the plants in Taiwan was about 70.5%, while use amounted to 5.0% for the plants in South China and 24.5% for the three plants in East China. The total water consumption in 2018 was 22,807,497 m3. The rainwater ratio was very low, whereas the total percentage of water consumption from wells and tap water accounted for 26% and 60%, respectively. The average amount of well water used in the past five years is about 7.2 million m3 and the average amount of tap water used in the past five years has been maintained at about 1,200 ± 1 million m3. In 2018, the use of recovered rainwater was about 2,605 metric tons, which was used to water green areas in substitution of tap water. We hope to save and allocate water by means of rainwater storage and utilization. From the perspective of the total water use intensity per unit of revenue, the trend has been decreasing year by year over the past three years. It decreased by 4.7% in 2018 compared with 2017 and 14% over the past five years. The improvement in water efficiency is significant.

Water consumption and intensity

Water resources Unit Consumption area 2014 2015 2016 2017 2018
Rainwater m3 Taiwan 1,597 1,368 2,394 1,741 2,605
Mainland China 0 0 0 0 0
Total 1,597 1,368 2,394 1,741 2,605
Well water m3 Taiwan 6,387,433 12,554,450 5,954,861 5,162,935 5,843,627
Mainland China 0 0 0 0 0
Total 6,387,433 12,554,450 5,954,861 5,162,935 5,843,627
Tap water m3 Taiwan 7,391,276 6,202,277 7,103,851 7,975,816 8,768,336
Mainland China 4,965,606 4,668,421 4,545,804 5,008,294 4,944,526
Total 12,356,882 10,870,698 11,649,655 12,984,110 13,712,862
Water consumption intensity (Ton/million TWD) m3 / Million TWD in revenue Taiwan + Mainland China 350.67 409.32 320.49 316.08 301.16

Note 1: Rainwater recovery formula: Annual average rainfall in each region * Catchment area.
Note 2: The water sources for the plants in Kunshan and Suzhou are Yangcheng Lake and Taihu Lake, respectively. The water source for the plant in Shenzhen is Songgang Wuzhiyu Reservoir.
Note 3: The unit of revenue is TWD.

Unimicron understands that water is hard to come by. In order to save and make good use of water resources, we continue to upgrade our technology to reduce water consumption and increase water efficiency. The rainwater recovery storage tanks installed in each plant also serve the purposes of flood detention, flood storage, disaster prevention, and the beautification of the environment. In addition, we have continued to increase the water recycling systems. By recovering the low-pollution water sources from various processes and treating them, we can use them to replace industrial production water and thereby to reduce the use of water resources. In 2018, the reuse rate of water resources was 14% (3,251,008 m3). The average reuse rate of water resources over the past five years is 13 ± 0.8%.

Water recovery rate

Unit Consumption area 2014 2015 2016 2017 2018
% Taiwan 10% 7% 10% 8% 9%
Mainland China 22% 26% 19% 20% 26%
Total 13% 12% 12% 12% 14%

Note 1: Recovery rate (%) = Total water recovered / Total water consumption (not including rainwater recovery)
Note 2: The main water sources includes tap water, well water, recovered rainwater, and recovered water.

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