Diversification and Independence of Board of Directors

(1)Diversity of board members.

The Company has established Corporate Governance Best Practice Principles, which specify the policy on diversity of board members. In accordance with the Company’s “Principle of Corporate Governance”, the composition of the board of directors shall be determined by taking diversity into consideration and formulating an appropriate policy on diversity based on the company’s business operations, operating dynamics, and development needs. It is advisable that the policy include, without being limited to, the following two general standards:

• A. Basic requirements and values: Gender, age, nationality, and culture.
• B. Professional knowledge and skills: A professional background (e.g., law, accounting, industry, finance, marketing and technology), professional skills,and industry experience.

All members of the board shall have the knowledge, skills, and experience necessary to perform their duties. To achieve the ideal goal of corporate governance, the board of directors shall possess the following abilities:

• (A) The ability to make judgments about operations.
• (B) Accounting and financial analysis ability.
• (C) Business management ability.
• (D) Crisis management ability.
• (E) Knowledge of the industry.
• (F) An international market perspective.
• (G) Leadership
• (H) Decision-making ability.

The actual composition of the current Board of Directors consists of seven men and two women, with ages ranging from 31 to 70 years old, and eight from Taiwan and one from South Korea. We also have professionals from technical backgrounds, advanced industries, management personnel, and financial fields with a diverse composition of professional qualifications and experience, gender, age, nationality, and culture.

Among the board members:

Employee directors account for 11.1% (1 member),

Female directors account for 22.2% (2 members), and

Independent directors account for 44.4% (4 members)

All independent directors have served for no more than three terms.

Reason for not reaching one-third female board representation and planned measures:

The company is committed to gender equality in the composition of its Board of Directors. In the comprehensive board re-election held in 2024, one female director was added. In 2025, a female independent director was elected in a by-election. Currently, female make up 22.2% of the board. The company is planning to further increase the number of female board members, aiming to achieve a female representation of over one-third.

Chairman

LI, YUN-LI

Republic of China
Ph.D. in Electrical Engineering, Rensselaer Polytechnic Institute, USA
Chairman of PlayNitride Display

Director

Independent Director

(2)Independence of the Board of Directors

The Company has a total of three independent directors, all of whom meet the independence criteria set forth in Article 3 of the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies,” as well as the concurrent position restrictions specified in Article 4. Furthermore, in accordance with Article 26-3, Paragraph 3 of the Securities and Exchange Act, none of the directors and independent directors have spousal or second-degree kinship relationships. The composition of the Company’s Board of Directors complies with the independence requirements.

Performance Evaluation of Board of Directors

Evaluation of CPA Independence (Chinese version)