The global semiconductor industry continued to confront inflation, interest rate hikes, and rising geopolitical tensions in 2023. So the consumer market has not yet recovered from the negative impacts caused by these negative factors. However, as the semiconductor supply chain adjusted its inventory, the market gradually returned to normal. Despite these challenges in the semiconductor industry, most major companies remain confident that the long-term development of the market. In particular, AI, high-performance computing (HPC), automotive electronics, 5G, and the Internet of Things are expected to continue to drive the demand growth for semiconductor components. iST will continue to plan for medium and long-term production capacity to meet the future trends and maintain its competitiveness in the market.

Benefiting from the thriving development of AI high-end chips, the international chip makers have driven stronger willingness for long-term order placements. Highly reliable verification and analysis have become indispensable core requirements for AI development. As advanced processes progress, to support customers’ rapid growth demands, iST’s material analysis capacity has expanded by 50% by the end of 2023. With relentless efforts, our material analysis technology has gained recognition from customers, leading to gradually increasing overseas orders and revenue injection. As EVs are developing, the market forecast indicates that EVs will drive high-end automotive chips and automotive electronics to become the fastest-growing segments in the global semiconductor industry. iST is the first in Asia to be accredited by the Automotive Electronics Council (AEC), the highest authority in global automotive electronics, as a third-party impartial laboratory. From the perspective of front line automotive standard setters, we accurately grasp the content of standards, which can help our customers enter into the EV market more smoothly and quickly. Given the inseparable relationship between automotive components and personal safety, as long as relevant automotive chip manufacturers continue their uninterrupted research and development, the demand for subsequent reliability verification and analysis will be boosted.

In 2023, iST has continued to deepen and actively diversify its business layout. Although the overall operating results were roughly the same as those of the previous year, it is mainly attributed to upfront layout expenses for mid-to-long-term deployments, leading to deferred effectiveness of production orders. But we believe that the results of these deployments will be gradually materialize in 2024. In addition to striving for operating performance, we have continued to strengthen sustainable development aspects such as corporate governance, environmental sustainability, and social care, and have demonstrated solid results in 2023.

In order to fulfill the vision of Corporate Social Responsibility (CSR) and incorporate ESG concepts into the Company’s business policies, iST has established an ESG Steering Committee in 2023, which aims to bring the implementation of sustainability and CSR to the Board of Directors’ level, in order to strengthen and promote iST’s corporate governance functions in terms of sustainability strategy and CSR through the supervision of the Board of Directors’ functions and the provision of effective resources. iST continues to improve its corporate governance and strengthen its information security management. Through a rigorous information security control mechanism, iST has passed the ISO 27001 information security certification, which not only improves information security protection to strictly safeguard the information related to customers and cases, but also reduces the risk of operational disruption to ensure the Company’s sustainability and steady growth.

Besides strengthening corporate governance, iST is committed to creating a diverse, equal, and inclusive workplace by insisting on its core values of being “people-oriented” along with the principles of “respect for human rights” and “diversity and inclusion.” We believe that “happy employees lead to satisfied customers.” In 2023, female employees accounted for more than 47% of iST’s total employees; female executives accounted for more than 40% of its total executives, representing the results of iST’s efforts in implementing gender equality in the workplace. iST cares for its employees; we actively build a diversified and smooth communication platform for employees in order to immediately respond to their requests and suggestion, and then effectively solve their problems in order to create a harmonious working environment. iST is going to conduct “Employee Opinion Survey” regularly to understand how much our employees recognize the organization, so as to ensure that iST provides a safe workplace and good physical and emotional support to the employees.

Talents are the key to the sustainable development of an enterprise, and talent development has always been one of iST’s most important concerns. We are dedicating ourselves to cultivating talents inside and outside the organization. Through industry–government–academia collaboration, we also actively leverage our influence. In 2023, We actively cultivate the technical talents of the new generation through industry–academia collaboration and resources, continuing to cooperate with colleges and universities; in social engagement, we also keep collaborating with social welfare groups and providing scholarships to nurture future technology talents and assist disadvantaged children in rural areas. We have also promoted reading programs in rural elementary schools to help children develop good reading habits and scientific knowledge from an early age, thereby enhancing their future competitiveness. In addition to improving the learning capacity, we work with related organization to promote emotional intelligence (EQ) education for children, improve individual emotional quotient capacity, and thus facilitate a harmonious and happy society.

In response to climate change, global warming, and the trend of net-zero carbon emissions in the world, environmental sustainability, energy saving, and carbon reduction have become extremely important issues, which no company could possibly ignore. To fulfill our commitment to environmental sustainability, iST completed the evaluation on renewable energy plan in 2023; implemented improvement measures including energy management system and facility replacement to actively engage in energy saving and carbon reduction programs; iST continues to pass the certifications of the ISO 45001 Occupational Safety and Health System and the ISO 14001 Environmental Management System. And, we continue to implement management, save resources, prevent pollution, and promote environmental sustainability through the ISO 14001 Environmental Management System.We continuously manage and conserve resources, prevent pollution, and promote environmental sustainability through the ISO 14001 Environmental Management System. iST’s environmental sustainability targets for 2023 show significant progress, including a reduction in GHG emissions intensity by nearly 5%. This demonstrates that the energy saving and carbon reduction program is working effectively. In the future, iST will continue to promote environmental sustainability and energy saving and carbon reduction programs to minimize the impact on the environment and to fulfill its responsibilities as a corporate citizen.

Throughout our journey, iST has been committed to integrity, strengthening corporate governance, emphasizing talent cultivation and creating a diverse, equatable and inclusive workplace, caring for the disadvantaged and participating in social services, practicing environmental protection and energy saving in the industry, and working with suppliers and partners to implement ESG sustainability concepts and actions. As we look ahead, we must continue to incorporate the ESG concept into our daily operations, formulate and implement strategic policies and action plans for sustainable development, and continue to deepen our relationships with our stakeholders, including employees, society, customers, and shareholders. We hope that iST will not only fulfill its role as a corporate citizen, but also progress with stakeholders from all sectors, and create a co-prosperous society and a sustainable future.