Strategies for Sustainable Development

Chroma is involved in the distribution of an assortment of electronic products and our operations mainly focus on the design, assembly, manufacture, sales, maintenance, calibration and distribution of products in fields including software and hardware for computers and peripheral equipment, automated test systems, precision measurement instruments, signal generators, power supplies, and telecommunication power supplies. Our services also include the trading of new materials, as well as design, manufacture and installation of module assembly systems.

With new products constantly being launched on the market, it is essential for Chroma to keep expanding our product portfolio and technical capacity while working with top-tier partners to strengthen R&D and retain our leading edge. In addition, because of the recent relocation of many industries, the emergence of imitation products onto the market has caused our products and the products of our subsidiaries to suffer in terms of sales volume due to price competition from knock-offs. To maintain the competitive advantages of our products, we have committed significant human resources to the task of patent application and the preservation of our brand value. Following our promotion of production automation, we will focus on the integration of testing instruments and automation equipment so that we can maintain that critical edge so important to the instrument industry.

Long-term businessdevelopment plan

Our long-term goal is “to develop globally leading products as a world-class enterprise” and it is this vision that drives us towards continuous growth. We believe that globally leading products incorporate the three fundamental qualities of “precision”,“reliability”, and“uniqueness”and that is exactly what we deliver to our customers with our value-adding test solutions for various electronic technology industries. To become a world-class enterprise, we need to focus on three specific aspects of development: innovative technology, “Chroma” brand and globalization. Therefore, Chroma invests heavily and devotes many resources to research and development every year to sustain its leading key technologies and highly integrated capabilities in the optical, mechanical, electronic, temperature control and software fields, to retain our competitive advantages and achieve sustainable business operations.

Marketing plan

The wide international spread of professional talent has led to the expansion of manufacturing bases in the IT industry. To provide our customers with services of the best quality, the Company and its subsidiaries have been actively building marketing networks through overseas subsidiaries by increasing the number of our overseas agents and distributors. Taiwanese companies have been investing in Southeast Asia over the past few years. Chroma has also established sales sites in this region through a subsidiary in Singapore and supported various local activities. We expect to generate substantial revenue in the region and are comprehensively promoting products of the Chroma brand. Through the marketing networks, strategic alliances with internationally well-known brands help our agency and distribution of specialized equipment, for enhanced overall resource efficiency.

Human resources plan

For a long time, the objective of Chroma and its subsidiaries has been the development of niche products, which is technology-intensive and requires continuous cultivation of professional talents and strengthening of employee education and training. We have established a knowledge management platform and learning databases for employees to efficiently obtain professional techniques through resource sharing. The aim is to enhance the quality of our human resources and reduce the time needed for learning.

Product development plan

Innovation is our DNA. Chroma product development strategy involves the delivery of high added-value and service with innovative technology to satisfy the needs of our customers while staying abreast of all the latest developments in the industry. In addition to developing test products for semiconductors and 5G-related developments, we will also focus on customized products in the fields of modular instruments, system integration, and diversified automation. With rising labor costs and an aging population, the importance of the smart network, industrial automation, and medical care has become much more obvious. Therefore, our long-term plan for product development envisages investing in test equipment for smart network system products, as well as intelligent industrial equipment and medical care equipment. We will engage in the integration of the upstream and downstream and seek mergers and acquisitions to create opportunities for the establishment of our product lines.

Short-term businessdevelopment plan

Demand for semiconductor and photonics test equipment remains strong, benefiting from a global shortage of many kinds of semiconductors and 5G-related chips, and the rapid development of high-performance chip (HPC) applications.

Advance production capacity and material preparation to ensure on-time production that meets customer demand

The US - China trade war and the success of epidemic prevention have elevated the global status of the Taiwan electronics industry, and the growing use of electronic products has led to a significant increase in demand. We moved into the new headquarters at the end of 2020 to meet the demand for production capacity.

Closely follow European, American, and Japanese market demand after the epidemic subsides

The stagnant economy is expected to gradually move back onto track in Europe, the United States, and Japan, after the vaccine has become more popular and one country after another gradually lifts their control measures. The Company must seize this opportunity of recovery and actively deploy to increase its market share in Europe, the United States, and Japan.

Accelerate the development of test solutions related to advanced semiconductors, AIoT, and 5G communication

The massive investments involved in the acquisition of advanced semiconductor processing equipment and the pace at which it has been growing for some time, have caused many equipment manufacturers to lock onto this market. However, the barrier of entry is incredibly high for this sector and that is why Chroma has always included equipment for semiconductor-related processes as a central component of product development. In light of the diverse and extensive field of potential applications that we expect to see from the emergence of AIoT and 5G technologies, development of relevant equipment for these sectors has been a key developmental target for Chroma over the last few years.

In response to the UN SDGs 2030, Chroma conducted assessment of the risks and opportunities the operations in our value chains may face in accordance with the “SDGs Compass”. We have included current and future impact, both positive and negative, in a prediction of the outlook for our operational goals. Using the 17 SDGs as reference, we have identified those that are relevant to Chroma as our targets and vision for sustainable development strategy.

Chroma’s achievements for 2020

UN Sustainable Development Goals (SDGs)

Ensure health and facilitate well-being at all ages

①　Provide Regular health check-ups.

②　Organize health seminars.

③　Provide onsite medical service.

Ensure that education is non-discriminatory, equitable, and of a quality high enough to promote lifelong learning.

①　Ensure that employees at all levels receive relevant training.

②　Provide internship opportunities for the promotion of industry-academic cooperation.

Promote inclusive and sustainable economic growth as well as full and productive employment, to ensure everyone has a good job

①　Established an occupational safety and health committee to ensure a safe and healthy working environment.

②　Ensure compliance with labor, health and safety, environmental and corporate ethics regulations.

Ensure sustainable consumption and production patterns

Introduced a Hazardous Substances Management System in 2015. We continue to reduce the use of hazardous substances in our products in line with the world trend of environmental protection and according to customer demand. A system was fully implemented in 2008 that ensured that our electronic products comply with the global chemical control regulations of the European Union (e.g. RoHS/ REACH/ Dodd-Frank Act of 2010, H.R 4173) and avoid the use of conflict minerals, conflict metals, etc. We require our suppliers to sign a declaration of environmental protection to promote clean products and green environmental protection.

Adopt emergency measures to cope with climate change and its impact

According to the results of the greenhouse gas inventory, the main source of Company electricity is externally purchased. This means that electricity saving is listed as a priority issue for carbon emission reduction. Chroma has implemented many different energy saving measures, including the replacement of old PCs with low-wattage PCs, the gradual replacement of all public light fixtures across our plants with LED devices. We also do statistical analysis of power consumption at each plant which includes controlling the temperature and humidity settings at our plants and monitoring air-conditioning. We also disseminate the concept of energy conservation to instill the idea of the need to preserve the resources of our planet. Not only that, we also remind our employees to cultivate the habit of switching lights off whenever they leave a room and to turn off their PC when they leave the office. Good habits like this help conserve energy and reduce carbon emission.

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