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Sustainable development strategy |
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The year 2025 marks a pivotal intersection of global political and economic developments, industrial transformation, and technological advancement. Ongoing geopolitical conflicts, persistent inflationary pressures, prolonged high-interest-rate conditions, and challenges surrounding energy supply resilience continue to test corporate operations and risk governance capabilities. These challenges further underscore the importance of technological transformation, sustainable management, and resilient risk governance. As one of Taiwan’s leading suppliers of semiconductor substrates, Kinsus continues to achieve steady growth amid industrial transformation through its strategic expansion into advanced AI applications and the development of a green value chain. |
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Macroeconomic Dynamics and Strategic Resilience: Transformation Opportunities Driven by the AI Wave |
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The year 2025 has been characterized by the continued rapid growth of generative AI and High-Performance Computing (HPC). The accelerated advancement of 2nm semiconductor process technologies since the previous year has further driven a paradigm shift in advanced packaging technologies. In response to evolving market demands, Kinsus has actively optimized its product portfolio and strategically focused its operational core on high-end FCBGA and SiP substrates. Over the past year, the Company achieved significant growth in revenue contribution from AI advanced packaging substrates. Supporting this achievement is our unwavering commitment to technological independence and innovation. The Kinsus team has made breakthrough progress in yield enhancement for ultra-thin substrates, fine-line circuitry, and large-area high-layer-count ABF substrates, ensuring the Company maintains an indispensable role within the advanced semiconductor packaging supply chain. In anticipation of the recovery of the |
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Green Intelligent Manufa cturing: Integrating Business Models w ith E nvironmental Responsibility |
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Kinsus has fully integrated sustainability into its operational core by advancing a “dual transformation” strategy encompassing both digital transformation and green transformation. Recognizing the substrate manufacturing process’s high dependence on energy and water resources, the Company views “green intelligent manufacturing” not merely as a slog an, but as a core competitive advantage. |
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In 2025, Kinsus delivered outstanding carbon reduction performance and successfully exceeded its annual reduction targets. At the same time, the Company actively promoted energy transformation initiatives by increasing renewable energy procurement to 5.4 million kWh, with further expansion planned for 2026. In addition, the resource recycling rate exceeded 90.51%, demonstrating our continued commitment to strengthening the circular economy. Through continuous optimization of process water recycling and reuse, Kinsus strives to achieve the optimal balance between production expansion and environmental impact reduction, transforming potential environmental impacts into exemplary resource management practices. |
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People-oriented Va lues and Sha red Prosperity Across the Value Chain: Building a Sustainable Ecosystem |
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Amid increasingly intense competition for semiconductor industry talent, people remain the Company’s most valuable asset. In 2025, Kinsus continued to optimize employee welfare programs and strengthen career development and training pathways, striving to create a friendly and fulfilling workplace environment. Kinsus’ professional team possesses strong interdisciplinary expertise that supports continuous innovation and technological advancement. This represents not only the Company’s commitment to society, but also a critical foundation for maintaining long-term competitiveness.
At the same time, Kinsus has extended its sustainability influence throughout the supply chain. As an industry leader, the Company has launched a Responsible Procurement Program and initiated carbon inventory guidance for suppliers. To date, 100% of suppliers have signed the Supplier Corporate Social Responsibility Code of Conduct. Through close collaboration with upstream and downstream partners, Kinsus jointly shares transformation risks and works to build a resilient supply chain with strong carbon reduction awareness and human rights protection principles. |
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Looking Ahead: Firm Commitments and a Long-term Vision |
Kinsus continues to face significant challenges, including regulatory pressure arising from Taiwan’s carbon fee policies, increasingly stringent customer requirements regarding net-zero pathways, material shortages caused by insufficient supply chain yield expansion, and supply chain restructuring and rising costs driven by geopolitical tensions. Nevertheless, challenges also create opportunities.
In the short term, the Company’s priority is to ensure the scheduled commencement of operations for the Youth Factory expansion project to meet strong demand for AI substrates, while further enhancing disclosure transparency in accordance with Financial Supervisory Commission regulations and international standards, including IFRS S1 and IFRS S2. Over the medium term, Kinsus remains committed to achieving its 2030 carbon reduction targets. Our long-term vision is to become the most trusted green technology partner in the global semiconductor substrate industry.
Kinsus will continue to uphold a humble and steady approach while combining the wisdom of experienced industry leaders with the innovation capabilities of the new generation to create long-term value for shareholders, employees, customers, and society. We sincerely thank all stakeholders for their continued support and trust, and we look forward to jointly creating a sustainable ne w era for the semiconductor substrate industry.
Chairman
