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The State of Corporate Governance
The Board of Directors of Silergy Corp. is the highest governance unit of the Group and implements corporate governance in accordance with the “Securities and Exchange Act”, the “Company Act”, the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”, and other laws and regulations. To reinforce the functions of the Board of Directors, an Audit Committee has been established under the Board of Directors to strengthen the effectiveness of the Group's internal audit and internal control as well as the proper presentation of financial statements; and a Remuneration Committee has been established to enhance the transparency of the decisions for the Board of Directors' and managerial officers' remunerations.
Information on the Members of the Board of Directors
NameJob titleProfessional knowledgeWhether the individual assumes other senior managerial positions within Silergy Corp.Number of other public companies in which the individual serves as a director
BusinessLegalSemiconductor
Wei ChenChairperson--VV0
Budong YouDirector--VV0
Chun-Hui ShihDirectorVV--0
Lai-Zhuo ChenDirector--V-2
Shun-Hsiung KoIndependent directorV---2
Yung-Sung TsaiIndependent directorV---1
Wen-Heng ChinIndependent directorV---2
Note: Director Lai-Chu Chen resigned on 2021/8/14
Ethical Corporate Management Policy
Silergy Corp. regards ethical corporate management as the core value of the Group's overall operation and continues to set zero tolerance for ethical cases as the Group's goal. The Board of Directors is the highest decision-making and supervisory body for ethical corporate management. It has established the "Procedures for Ethical Management and Guidelines for Conduct" and the "Code of Ethical Conduct", which require board members and senior managerial officers to avoid conflicts of interest, comply with the laws and regulations of the competent authorities, and protect the Company's assets. In addition, Silergy Corp. has set up an employee suggestion mailbox and encourages employees to report any suspected or discovered violations of laws, regulations or code of ethical conduct to the Board of Directors, the Audit Committee, managerial officers, internal audit leader or other appropriate personnel, and to assist in providing sufficient information to enable the Company to properly handle follow-up matters. Silergy Corp. has an anti-retaliation mechanism in place to protect the legal rights and personal safety of whistleblowers from retaliation.
As of the end of 2021, there had been no incident related to the breach of integrity and ethical management in Silergy Corp.
Risk Management
Silergy Corp. takes the rapid changes in the external environment seriously. By identifying and managing risks and measuring and analyzing the short-, medium- and long-term impacts of various risk factors from all fronts on Silergy Corp., we enhance the effectiveness of decision making and corporate value. Based on the Business Continuity Management (BCM) framework, Silergy Corp. not only identifies risks in R&D, production and operation, human resources, finance, intellectual property (IP), and laboratory stability, but also emphasizes risk management in the areas of climate change and information security.
Silergy Corp. classifies risks into three categories: low, medium, and high, "and formulates response strategies and action plans for high-risk items," to reduce the possibility of business interruption and improve responsiveness.
In addition, through the implementation of the audit plan, we continuously confirm the effectiveness of various internal control systems in controlling potential risks, regularly report the audit results to the Audit Committee and the Board of Directors, and further discuss significant risks, determine response strategies, and review budgets and related resources.
Intellectual Property Management
Intellectual property management policy
The main objective of our intellectual property management policy is to protect our innovative technological achievements and enhance our competitiveness in the market; at the same time, we respect the intellectual property rights of others. With the advantages of innovative IC design technology, system architecture and software technology, semiconductor fabrication process, device technology, and packaging technology, Silergy Corp. has developed its global IP portfolio strategy.
IP management measures
1. Control the patent proposal review and patent application in a hierarchical manner
2. Use a variety of mechanisms to encourage invention and innovation to encourage employees to continue to apply for patents for inventions
3. Conduct IP rights monitoring at the technology development stage, IP rights infringement due diligence at the result conversion stage, and IP rights optimization before product sales, with risk control covering the entire product cycles
4. Regularly review the Company's patent landscape
In 2020, the patent applications of our employees were awarded the 21st China Patent Excellence Award by the China National Intellectual Property Administration, highlighting the strength of our IP talents. In the future, Silergy Corp. will continue to monitor the market of its products and restrict malicious copying and infringement by competitors to actively protect the Company's IP rights.
The number of people and hours of IP-related education and training in the past four years
Training hours per person
4hours
Patent Management
Silergy Corp.'s core team is mainly from Silicon Valley, USA, with more than 15 years of working experience in the same field in many international leading companies. Since its establishment in February 2008, the key technologies applied in the products have been developed by the R&D team in-house. 1,357 patents had been obtained, 357 patents were under application, and 215 patents had been granted as of the end of 2020. We also optimize our products by developing new technologies and integrating multiple product functions to gain a competitive advantage in the market.

The current patent portfolio covers processes, electronic components, packaging, control strategies, circuit structures, and system architectures all of which have been successfully introduced into mass production. The benefits that our proprietary patents and technologies help our customers achieve are as follows:
1. Reduce chip area and external components, improve voltage/current control accuracy, circuit operation reliability and stability
2. Lower switch on/off resistance and reduce power loss to address heat dissipation requirements, improve conversion efficiency and extend battery life
3. Increase switching frequency, reduce circuit size and weight, and speed up response time, resulting in lower circuit cost, faster design process, and better performance for products
In the future, Silergy Corp. will continue to develop key technologies and patents, and develop new generation products in response to industry trends to maintain its leading position in the industry.
Trade Secret Protection Plan
Trade secret protection policy
In order to protect the trade secrets of Silergy Corp. and to maintain a fair competition order in the industry, Silergy Corp. has formulated and implemented a protection plan related to trade secrets and information security that the employees of the Company shall observe.

For disputes related to trade secrets, the department that finds the dispute will notify the legal department, and the legal department will conduct an investigation and take timely measures to prevent further disclosure of trade secrets, control the spread of the disclosure, take remedial measures, and, if necessary, collect evidence and take action to defend rights with the relevant departments. Participated in education and training related to trade secrets in the last three years (2018~2020), whos numbers were 175, 195 and 256.

In 2020, Silergy Corp. did not have any incidents related to the violation of trade secrets regulations.
Trade secret management plan
1. Classify and define trade secrets according to one's own trade secrets and those provided by customers or suppliers
2. Classify the level of confidentiality according to the type and content of information, and implement corresponding non-disclosure measures for each level, such as access control, specific restrictions on access to confidential information, use of confidential information, and authorization hierarchy, etc.
The number of people and hours of education and training related to trade secrets in the past three years
Training hours per person
2hours
Information Security Management Policy
In order to maintain the confidentiality, integrity and availability of Silergy Corp., the Company has established and implemented an information security management policy to be followed by the Company's employees. The Information Security Department is the highest responsible unit, accountable for information security, the planning and implementation of the information security system, and ensuring the effectiveness of information security incident handling.
Information security management measures
1. Privileged account management
2. Malware detection
3. Equip important information systems and network exits with intrusion detection systems
4. Arrange education and training to enhance information security technical capabilities
5. Perform regular disaster recovery drills
6. Regularly engage third-party professional units to conduct information security audits and health checkups to ensure those information systems and network environments meet security implementation standards, and strictly enforce the information security policy and customer privacy protection measures to protect corporate trade secrets and customer information from leakage
Silergy Corp. will immediately convene technical exchange and response meetings to analyze and review relevant response and defense measures and build a complete protection network for information synchronization in response to unexpected information security attacks. In order to further reinforce the management strength, Silergy Corp. has planned to implement the ISO 27001 management system in 2022 and continue to protect the internal information security of the enterprise through information system vulnerability scanning and penetration test exercises. In 2020, there were no complaints about customer privacy or loss of customer data related to information security.
Supplier Management Policy
Silergy Corp. assesses the environmental and social impacts of procurement practices on the communities we are supplied, and works with suppliers to jointly fulfill our corporate social responsibility (CSR). Silergy Corp. has established a supplier management policy that requires suppliers to follow relevant regulations on environmental protection, occupational safety and health, or labor rights, and will evaluate suppliers' records of environmental and social impact prior to business dealings, and avoid transactions with those whose CSR policies are incompatible.
New supplier selection procedure
Silergy Corp. will ensure that the supplier's capabilities, including process capability, product reliability and product quality, meet the requirements of Silergy Corp. and our customers through paper reviews and on-site audits. We will also investigate whether the supplier has a mechanism to carry through CSR, to confirm the supplier has met the basic requirements related to sustainability before becoming a supplier of Silergy Corp.
Supplier grading management
Silergy Corp. conducts supplier classification and grading to fully command the supply chain's overall status and select key suppliers. Critical suppliers are defined as suppliers that significantly impact the quality and delivery of the Company's products, or the purchases from them reach a certain amount or percentage. These suppliers have resident engineers in our plants to strengthen mutual communication and ensure stable product quality.
As one of the leading companies in the IC industry, Silergy Corp. has long been concerned with international sustainable development issues. For sustainable management of the supply chain, Silergy Corp. not only requires suppliers to comply with environmental protection, occupational safety and health, and labor and human rights regulations, but also continuously ensures suppliers' sustainable actions through risk assessment, monitoring and auditing, etc. For those who do not comply with the regulations, Silergy Corp. will require them to continuously improve. Through the above measures, Silergy Corp. encourages suppliers to be committed to socially responsible operations and work together to bring positive impact on social development and create a sustainable development environment and an enterprise that protects labor rights and interests.
Conflict Minerals Management
In response to the Responsible Business Alliance (RBA) and the Global e-Sustainability Initiative (GeSI), Silergy Corp. supports industry initiatives and follows the "Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High Risk Areas" formulated by the Organization for Economic Cooperation and Development (OECD) to design a due diligence framework and conduct due diligence on 100% of suppliers, and establish a conflict minerals management system to ensure that our suppliers use no conflict minerals.

Silergy Corp. purchases only from suppliers who have obtained external certification to ensure that the source of raw materials is in line with our spirit of sustainable procurement. In addition, Silergy Corp. conducts due diligence on the source of various minerals (smelter level) at least annually through the Conflict Minerals Reporting Template-CMRT, Cobalt Reporting Template-CRT, and requires 100% of existing suppliers to conduct due diligence and disclose the results of the investigation. We also conduct a conflict minerals procurement review for new suppliers to ensure compliance with the Company's conflict minerals policy.

Finally, our Quality Department prepares annual conflict minerals investigation and management reports and presents them to the Company's senior management to ensure 100% compliance with the customer's conflict minerals management checking requirements.

Silergy Corp. ensures that 100% of the Company's raw materials are conflict-free through these measures.
Customer Relationship Management
Silergy Corp. is committed to providing better and more diversified services to our customers to achieve the goal of providing complete solutions and making our customers become long-term partners without any worries.

In order to achieve this goal, Silergy Corp. has set up a complete team, from the front-end market research/product sales/after-sales service/customer application support to the back-end defect feedback, quality assurance, and customized products, all of which have dedicated departments to correspond to, in order to provide customers with the most immediate product service and to create the best customer service experience.

The customer service satisfaction rate has remained above 90% in the past four years, highlighting the effectiveness of Silergy Corp.'s customer relationship management. In the future, the Company will continue to improve its technology, strengthen its service quality and management, and have more in-depth cooperation with customers to achieve a win-win situation with them.
Tax Policy
Silergy Corp. has established a "Group Tax Policy" with the Board of Directors as the highest decision making and supervisory body for tax management and the Finance Department of the Group Headquarters as the tax management unit. The Group's tax policy is based on tax regulations, honest tax reporting, information transparency, mutual trust and honest communication, prudent assessment of tax risks and impacts, improvement of tax professionalism, and personnel training.
Eight commitments on tax policy
1. All operations are conducted in accordance with relevant tax laws and regulations
2. Transactions between affiliates are governed by the arm’s length principle
3. Financial statement information is transparent and tax disclosures are made in accordance with relevant regulations and standards
4. No use of tax havens or tax planning for the purpose of tax avoidance
5. Not to transfer profits generated by the Company to countries with low tax rates
6. Establish a respectful relationship with tax authorities based on mutual trust and information transparency
7. The Company's important decisions are made with the impact of taxation taken into account
8. Analyze the operating environment and apply management mechanisms for tax risk assessment