The global political and economic situation continued to be fraught with risks and challenges in 2024. Intensifying extreme weather events, geopolitical and regional conflicts, soaring energy and raw material costs, and persistent inflation have all exacerbated the impact on business operations. As uncertainty has become the new normal in global operations, business resilience will be key to an enterprise’s sustainable development. The year 2024 marks the 30th anniversary of iST. In response to the growth and transformation of global industries driven by AI technology, iST is undergoing key transformations and breakthroughs, officially entering the “iST 2.0” era. We aim to enhance our strategic competitive advantages and deepen our global market presence to ensure iST’s long-term competitiveness while strengthening our operational strategies. Simultaneously, we will strive to implement ESG principles and action plans to enhance corporate resilience comprehensively and achieve sustainable management.

The “iST 2.0” leads industry innovation with five key solutions: “automotive electronic verification,” “space environment testing,” “AI high-speed verification and signal simulation testing,” “advanced process and packaging,” and “smart real-time global reliability verification,” helping customers comprehensively enhance product reliability and market competitiveness. In 2024, we demonstrated initial successes in our transformation and strategic planning and achieved the annual profit that was the second highest in our history. We will be committed to driving the long-term sustainability of our core business through profit growth.

In addition to strengthening the Company’s competitiveness and operational performance through a robust technology roadmap, we spare no effort in enhancing the Company’s sustainable development. By dedicating ourselves to promoting low-carbon transformation, we completed multiple energy-saving programs in 2024, resulting in an energy saving of 1,770,000 kWh, equivalent to reduction of carbon emissions by 874.5 tCO2e. In 2024, we invested in power generation system, generating zero-carbon renewable energy for use by the Hsinchu Plant II. The intensity of GHG emissions in iST in 2024 was 14.17% lower than the base year, achieving the 5% reduction target in GHG emission intensity. From 2025, we will begin implementing the ISO 50001 energy management system for our high-energy-consumption facilities and improving energy efficiency continuously. In the future, we will continue to move toward the emission reduction and net-zero goals through various energy-saving and carbon reduction measures and the installation of low-carbon energy sources.

Adhering to the core value of “Focus on Human” and upholding the principles of “Respecting Human Rights” and “Diversity and Inclusiveness,” iST is committed to creating a friendly workplace that is diverse, equal, and inclusive. In 2024, female employees occupied 49.9% of the workforce, and women accounted for over 40% of all supervisors. Notably, 55.9% of new hires were female, demonstrating iST’s dedication to advancing gender equality in the workplace. In order to promote descent work, we adequate increase of participation among middle-aged and elderly workers to improve their re-employment. In 2024, middle-aged and elderly employees occupied 3.6% of the new hires, with the aim of safeguarding their employment rights and fostering a more inclusive work environment.

iST places great importance on employee experience and employee value proposition. We are actively building a diverse and open employee feedback platform to promptly address their needs and suggestions and create a harmonious workplace. In 2024, iST conducted an “Employee Opinion Survey” which included a focus on “employee engagement and commitment.” The survey had an effective response rate of 77.1%, with an overall average score of nearly 4.2 (on a 5-point scale). The “employee engagement and commitment” section scored 4.2, demonstrating strong employee recognition, affirmation, dedication, and commitment to the organization. In the future, we will continue to conduct employee opinion surveys to promptly identify key organizational issues, understand their expectations, give feedback actively, and implement solutions to improve employee satisfaction.

In order to improve corporate governance and strengthen the functions of the Board of Directors, one female director was added in 2024 and the Board approved the amendment to the “iST Senior Manager Remuneration Policy,” which clearly establishes the “Manager Remuneration and Reward Policy Linked to Sustainability Performance Indicators” to connect manager rewards with the Company’s operating performance and key sustainability indicators, demonstrating iST’s commitment to achieving sustainable development goals. Information security and transparency are key principles in ESG. The Company continuously adheres to ISO 27001 information security certification to enhance information security defenses and strictly protect customer data and sensitive information, thereby reducing the risk of business disruption and ensuring sustainable and stable development of the Company.

In 2024, iST received significant recognition in the field of sustainability, reflecting our excellence in corporate governance, social inclusion, and talent sustainability. In addition to receiving the “Distinguished Visionary Entrepreneur Of The Year” under the Entrepreneur Of The Year Awards, which demonstrates the outstanding individual achievements in global entrepreneurial performance and positive contributions to the society and the economy, iST won the second place in the “Taiwan BIC Award” from the “Taiwan Institute of Directors.” This further highlights our excellent performance and strong capabilities in corporate governance and competitiveness.

In 2024, iST was awarded the “CommonWealth Sustainability Citizen Award” and the “CommonWealth Talent Sustainability Award” of CommonWealth Magazine, and the “Employee Care Award” under the “Work–Life Balance Award” of the Ministry of Labor. These awards recognize iST’s accomplishments in corporate social responsibility and our dedication to fostering a workplace that prioritizes employee well-being and care. The “104 Best Employer Award” also showcases our comprehensive efforts in talent attraction, retention, and development, and our influence within the talent market.

These honors reflect iST’s outstanding achievements in corporate governance, social inclusion, and talent sustainability. We will continue to strengthen our efforts to achieve sustainable operations.

Looking forward, iST will continue to strengthen corporate governance, cultivate talents, and build a diverse, equal, and inclusive workplace. We will actively care for vulnerable groups and invest in social welfare, implement environmental protection and energy conservation in our core business, and collaborate with our supplier partners to carry out ESG sustainability principles and initiatives. We will continue to deepen our partnerships with employees, societies, customers, and shareholders, in the hope that iST not only fulfills our role as a corporate citizen, but also collaborates with all stakeholders to create a prosperous society and a sustainable future.