Executive Talk

Sustainable Development Vision

A Word from the Chairman

To date, MediaTek has been established for 19 years and has grown from a small office to a global corporation with more than 10 thousand talented employees from all over the world. Investing over NT$ 350 billion and recruiting over 6,000 global talents which makes MediaTek becoming the 3rd global IC design company. This achievement is also the pride of Taiwan. In addition to development in Taiwan, we expand our vision all over the world. We never cease to consider ways to give back to society and carry out our CSR practices. Making our homeland becomes even better because of our existence and that sustainability will be much more than just a slogan.

Mk Tsai Photo Resized

"Enhance & enrich everyone's life" is our mission. We based on this mission to develop our CSR implementation. In terms of innovation and technology, we strive to develop pioneering technology and become the industry leader in semiconductors. We established Innovative Research Centers with domestic universities and the research achievement are as well as the world-class laboratory; in terms of corporate governance, we strive for information transparency and accountability. Beside, providing a great professional environment can unify our employees more closely. In the process of growing up, we jointly collaborated with customer and supplier to establish the long-term, mutually trusting partnership. In terms of natural environment, we proactively reduce carbon emissions in our operations and become a top-notch green business. Last but not least, we also strive to call on our employees to serve as corporate volunteers to promote technology and community welfare.

Looking forward on global sustainability trends, the UN's 70th Sustainable Development Summit held in New York in 2015 established 17 Sustainable Development Goals (SDGs), which included eliminating poverty, hunger, and extreme weather conditions; supporting equal gender rights and quality education; and more. Whether these 17 SDGs could be achieved in the next 15 years would have crucial impacts on the sustainable development of the world. As a citizen of the world and a leader in the semiconductor industry, we should teach by practice and lead our supply chain to reach the sustainability objectives. By integrating our core business to exert the greatest social impact, we can enhance and enrich the lives of the public through technology and create endless possibilities.

Chairman Ming-Kai Tsai

A Word from the Head of CSR Committee

MediaTek is a leader in the global IC design industry and boasts of excellent partners throughout the world. From Blu-Ray, functional cell phones and home appliances to 3G and 4G technologies, we continue to improve and enhance our society through innovative skills and technology, and this is the "Everyday Genius" of creating endless possibilities that we constantly discuss within the firm. However, technological innovation in itself is far from sufficient; corporate social responsibility (CSR) is a multifaceted, integral form, and we aspire to exert even greater synergies and value so that the world could become a better place because of us. This is the underlying value in MediaTek's CSR practices.

Concurrently, CSR is also the Company's operational mission, which we refer to as "realizing our responsibility as corporate citizens." We can self-evaluate our connectivity to incorporate strategies through CSR and examine whether we have truly realized our responsibility as corporate citizens. Hence, MediaTek's CSR Committee has re-examined the mid- and long-term objectives of CSR's 6 initiatives and designated 6 committee members and 16 members according to their areas of responsibility. We commenced each feasible proposal to establish performance targets and periodically held committee meetings in each quarter to ensure that our direction and progress meet the expectations of the Board of Directors and the public.

Corporate Governance

MediaTek is the third- largest fabless semiconductor IC design company in the world; out of every 3 cell phones in the whole world, one contains a product of MediaTek. Our market share in tablet computers has also grown from third place to first place. In the future, in addition to continuing to launch product technologies related to smartphones to create new added value, we will also strive to develop technologies in the fields of 5G, the Internet of Things (IoT) and automobile IC designs to achieve a new ecological system for this industry. Moreover, MediaTek elected a third Independent Director in 2015, and the three Independent Directors have formed an Audit Committee in the hopes that their independent and professional nature will effectively supervise the operations of the Company and protect the rights of our shareholders. At the same time, the "Integral Management Code", "Corporate Governance Code of Conduct" and "CSR Code of Conduct" were also passed and implemented during the 7th Board of Directors' meeting, strengthening an important cornerstone towards our sustainable development. In the 2nd Corporate Governance Evaluation, MediaTek was assessed to be within the 20th percentile, and we will continue to review our evaluation results and the feasibility of improvement measures in the future.

Workforce Environment

The key success factor for MediaTek to become a technological leader in the semiconductor industry is recruiting the best talent from all over the world. We recruited more than 2,300 new employees to join MediaTek in 2015. In addition to offering highly competitive salaries and benefits, 19 days of annual leave (higher than the legal requirement) our comprehensive work environment and training mechanism are also features that help us attract talent. As our global staff continues to expand, to effectively assist new recruits in adapting to their teams and be familiarized with their work environment, the "Learning Website", an online learning platform, was established in 2015. The website offers well-rounded and diverse online learning courses and has already accumulated more than 20 thousand hits after being launched for only one season. At the same time, the "New Recruit Caring System" has also incorporated a questionnaire feedback mechanism, in which colleagues who may need assistance can be identified and face-to-face meetings could be held as soon as possible. We already assisted 159 new recruits in 2015, accomplishing a 100% interview rate. To retain talented workers, in addition to offering appropriate compensations and benefits, we believe that the most important factor is to encourage our workers to have adequate physical and mental well-being as well as a balanced work and life.

Partnership

Our robust partnerships are based on a long-term culture of understanding between MediaTek and our customers and suppliers. We are customer-driven and devoted to developing technological products that meet clients' expectations. To make it even easier for customers to conduct business with us, MediaTek On-Line allows customers to undertake functions such as online Q&A, file transfer, and vendor referrals. In 2015, the platform has already accumulated more than 3 million files of information, showing intense levels of interaction between clients and MediaTek. Furthermore, to strengthen MediaTek's partnership with suppliers, we established a "CSR Code of Conduct for Suppliers" in 2015 to stress the importance of CSR to our suppliers. In 2016, we will promote relevant information through the Supplier's Meeting and online courses, and we anticipate achieve 80% of supplier audit by 2018. This will help us exert our influence as an industry leader and facilitate our suppliers to enhance their sustainable competitiveness.

Natural Environment

Climate change has gained increasing awareness from the global community in recent years, especially after the Climate Summit COP21 was held by the UN in 2015. Faced with a global community pushing for environmental protection, it is natural that MediaTek will not avoid the matter, and the Company has proactively responded to the call for environmental conservation from the international forum. Not only have we joined the EICC-ON platform and responded to the Carbon Disclosure Project (CDP), we have also undertaken a series of measures to lower carbon emissions in our internal operational management. In 2015, we already verified 26 of our primary IC products to understand their levels of environmental impacts and influences throughout the products’ lifecycle, and subsequently, we will also introduce water footprint verifications. In terms of greenhouse gas verifications, we have effectively lowered close to 4,000 tons of CO2e through various conservation measures and up to NTD 20 million in energy expenses. Moreover, the energy utilization efficiency of our newest energy conservation datacenter shows a PUE of 1.41, demonstrating the fact that we have already achieved Gold Level in green building standards. In the future, we will continue to enhance the efficiency of energy conservation and reduce carbon emissions of our products and to become an outstanding global green corporation.

Joe Chen Photo Resized

Social Welfare

MediaTek believes that the key to assisting Taiwan to achieve better international competitiveness is to make scientific education more accessible and to teach in greater depth. The Accessible Science Plan establishes appropriate proposals to promote and facilitate schools at 3 levels: elementary school, middle/high school, and college and graduate schools. To date, we have benefited more than 9,000 teachers and students. In the Telecommunications Contest—IoT/Wearable Innovations Competition held in 2015, students also incorporated innovative ideas with MediaTek's product technologies to create 151 works related to IoT. In the next three years, MediaTek will establish AaPaTo Honor Society chapters in 12 high schools throughout the country to carry out applications in the field of technology through activities such as practical science and technology teaching, scientific seminars, and high school camps. Furthermore, after we officially commenced Volunteer Holidays towards year-end in 2015, the numbers of Volunteer Club members also experienced significant increases. Our colleagues are more willing to partake in charity and welfare activities, and the 1,800 wishes we received as part of "Spreading Love to Aboriginal Counties" were sponsored within 2 days, demonstrating MediaTek staff's passion towards social participation.

Since publishing our first CSR Report last year, MediaTek has received countless valuable suggest ions and feedback from various stakeholders, allowing us to better understand the parts that we can continue to improve in terms of CSR. We will maintain an all-encompassing outlook as we continue to improve, so that MediaTek can become a sustainable corporation that meets the expectations of all stakeholders. In the future, we will continue to devote our human resources toward the field of CSR; not only will our colleagues feel a sense of pride and accomplishment for being a part of this entity, but we also hope that we can pass on these experiences of realizing corporate social responsibility to the individuals and companies who need them. Together, we can collaborate to make this land that has nurtured our growth a much better place.

Executive Vice President & Co-COO Joe Chen