Material Topic
Waste and Hazardous Substance Management

Positive Actual and Potential Impact on Chroma
Including measures such as "reducing waste in the production process" and "using fewer production fixtures." To reduce production waste, the production process and design should be improved to lower the amount of waste generated during production while increasing material utilization.

Negative Actual and Potential Impact on Chroma

• If the Waste Disposal Act or local EPA regulations are violated, this will directly result in administrative fines or even criminal liability.
• As regulations become stricter (e.g., more detailed classifications of hazardous electronic waste), waste disposal costs will increase.

Material Topic
Greenhouse Gas (GHG) Management

Positive Actual and Potential Impact on Chroma
Reducing greenhouse gas emissions is a global environmental protection trend. Through quantifying greenhouse gas inventory reports, the Company promotes emission reduction and control. Setting the goal of "net-zero emissions at office sites by 2030; net-zero emissions across all sites by 2050."

Positive Actual and Potential Impact on Chroma

• Chroma relies heavily on electricity for testing and production operations. In recent years, rising electricity prices (such as electricity price adjustments in Taiwan and fluctuations in international fuel prices) have directly driven up operating costs.
• In cases of power shortages in summer or policy-driven power restrictions, the Company may be required to limit power usage, affecting production schedules and delivery times, thus directly harming revenue.

Material Topic
Energy Management

Positive Actual and Potential Impact on Chroma
The Company strives to reduce energy resource consumption during operations to achieve the goal of conserving energy and protecting the planet. Energy resource management is a key component and driver of sustainable corporate operations; institutionalized management promotes environmental performance and energy conservation.

Negative Actual and Potential Impact on Chroma

• Chroma relies heavily on electricity for testing and production operations. In recent years, rising electricity prices (such as electricity price adjustments in Taiwan and fluctuations in international fuel prices) have directly driven up operating costs.
• In cases of power shortages in summer or policy-driven power restrictions, the Company may be required to limit power usage, affecting production schedules and delivery times, thus directly harming revenue.

Material Topic
Water Resources

Positive Actual and Potential Impact on Chroma
Chroma's water use is primarily for domestic purposes. By promoting water conservation and adopting water-saving equipment, the Company maintains water efficiency, avoids unnecessary water waste, and prevents the impact on regional water resources and the surrounding environment. The Company continues to monitor the potential impacts of climate change on water resource stability. Through the adoption of robust water management practices and the cultivation of risk awareness, it maintains normal operations amid future uncertainties in water supply and improves overall operational resilience.

Negative Actual and Potential Impact on Chroma

• As the Company's water consumption is relatively low, it does not have a significant negative impact on water resources and related ecosystems. However, given that climate change may alter rainfall patterns and increase the frequency of extreme weather events, potential risks remain in the future. Therefore, the Company will continue to monitor the situation and maintain effective water management practices.

Material Topic
Product quality and safety

Positive Actual and Potential Impact on Chroma
Chroma ATE Inc. is committed to becoming a world-class enterprise. While operating globally, it actively responds to the impacts of global warming through R&D, manufacturing, products, and services. The results of technological innovation are demonstrated in the excellent performance and functionality of new products. Green design is incorporated into all stages of the product life cycle to reduce environmental impact and fulfill product and consumer responsibility.

Negative Actual and Potential Impact on Chroma

• If a product has quality defects or safety issues, it may lead to increased repair or replacement costs, as well as customer claims, which could adversely affect the Company's operations and brand reputation. In addition, such incidents may also undermine consumer and customer trust in the Company's products, adversely impacting its brand image and market competitiveness, and even impacting customer partnerships.

Material Topic
Employee Health and Safety

Positive Actual and Potential Impact on Chroma
Maintaining workplace health and safety and establishing employee health management programs are the Company's first line of protection for employees.

Negative Actual and Potential Impact on Chroma

• If an occupational injury occurs, the Company may face both direct and indirect losses. Direct losses include manpower loss, injury compensation, and medical expenses. Indirect losses include production interruption, injury-related losses, wage losses, associated losses, or other impacts such as damage to corporate image, product quality, labor skills, labor relations, work efficiency, and employee morale.

Material Topic
Employee diversity and equal opportunities

Positive Actual and Potential Impact on Chroma
A diverse and inclusive culture can have a positive impact on the organization. Upholding a people-oriented core value, the Company recruits diverse global talent, actively promotes gender equality, and hires local talent in management roles to implement localized talent management.

Negative Actual and Potential Impact on Chroma

• International brands (such as U.S. and European enterprises) have incorporated DEI (Diversity, Equity, and Inclusion) performance into supplier review criteria. For example, the RBA Code of Conduct has strict requirements regarding discrimination and forced labor.
• More and more sustainable investment funds require investee companies to have gender diversity and equality policies. Poor performance in this area may result in Chroma being excluded from investment portfolios.
• If the Company has internal incidents of discrimination based on gender, age, ethnicity, or disability, it may trigger labor disputes, litigation, or even compensation, damaging the Company's finances and reputation.

Material Topic
Training and education

Positive Actual and Potential Impact on Chroma
With the long-term development of talented persons as an ultimate goal, we cultivate talent in new employees from scratch. Chroma has a perfect supporting mechanism and cultivation plan that accelerates the growth of talented vision and ability.

Negative Actual and Potential Impact on Chroma

• Talent is the foundation of the Company's operational competitiveness. Losing talent not only affects morale and job performance but also incurs tangible costs in recruitment and training, and intangible costs such as difficulty in replacing experienced personnel (e.g., maintaining customer relationships, work efficiency, etc.).

Material Topic
Labor- Management Relations

Positive Actual and Potential Impact on Chroma
Employees are Chroma's most important partners and we attach great importance to their working environment, development and care. Chroma has established diversified communication channels within the Company and continues to implement various employee relations programs in the hope of creating a good working environment for our employees.

Negative Actual and Potential Impact on Chroma

• Labor disputes and litigation: if employees file complaints or labor lawsuits due to excessive working hours, unpaid overtime pay, or disputes over termination, this may result in legal expenses and damage to the Company's reputation.
• Production line strikes or union protests: if labor negotiations break down, especially in high-pressure production line departments, strikes or collective protests may erupt, directly paralyzing production, delaying deliveries, and undermining customer trust.
• Rising turnover rate impacts operations: poor labor conditions or a rigid management culture will lead to high turnover, exposing the Company to tangible risks such as increased training costs and declining production efficiency.

Material Topic
Human Rights and Community Relations

Positive Actual and Potential Impact on Chroma

• The Company continuously promotes human rights and employee policies, while conducting supply chain due diligence to mitigate the risk of human rights violations and enhance corporate reputation and social trust.
• Chroma ATE Inc. and the Chroma Foundation work hand in hand under four core pillars—"science education," "arts and humanities," "environmental sustainability," and "caring and sharing"— to fulfill corporate social responsibility.

Negative Actual and Potential Impact on Chroma

• Changes in local regulations or international human rights standards may increase compliance costs and management requirements.
• If social engagement (such as charitable donations or sponsorship of local infrastructure) lacks a clear strategy or performance evaluation, it may result in inefficient use of Company funds and could be questioned internally or externally as "extravagant."
• If sponsorship and donation activities are not properly disclosed and audited, they may be suspected of involving commercial bribery or the transfer of benefits, which could trigger regulatory scrutiny or criminal liability.

Material Topic
Forced and compulsory labor

Positive Actual and Potential Impact on Chroma
The Company has established clear policies and a management system to prohibit any form of forced or compulsory labor, and protects employees' rights and well-being through internal supervision and education. At the same time, the Company continues to promote compliance with anti-forced labor standards and transparent management across the supply chain, thereby reducing the risk of labor exploitation in upstream and downstream operations.

Material Topic
Material events and systemic risk management

Positive Actual and Potential Impact on Chroma
Our business is based on the principles of sound operation, honesty and integrity, while at the same time, we build a sound corporate governance structure and promote related work to protect the interests of all stakeholders.

Negative Actual and Potential Impact on Chroma

• Material incidents and systemic risks may lead to revenue decline, increased costs, tighter cash flows, supply chain disruptions, and operational slowdown, as well as regulatory compliance risks and reputational damage, which in turn may adversely affect the Company's financial and business performance.

Material Topic
Supply Chain Management

Positive Actual and Potential Impact on Chroma
We view our suppliers as important partners for sustainable growth and implement sustainable supply chain management to reduce operational risks and costs and to provide responsible and quality services to our customers.

Negative Actual and Potential Impact on Chroma

• Poor supply chain management may lead to supplier failures or delivery delays, thereby affecting the Company's shipments and services. Supply chain risks may result in production interruptions, increased costs, reduced quality, and loss of reputation for the Company.

Positive Actual and Potential Impact on Chroma
Chroma's commitment to all stakeholders is the maintenance of stable financial performance.

Negative Actual and Potential Impact on Chroma

• When profitability declines, Chroma will first reduce capital expenditures and R&D investment, which for a technology company means a gradual decline in product competitiveness, leading to loss of market leadership.
• When performance deteriorates, companies often cut costs by layoffs or freezing salaries, which will directly undermine employee morale and erode internal trust.
• Customers pay close attention to a company's financial soundness. If financial reports are poor, international brand customers may shift orders to competitors with stronger financial standing to reduce supply chain risk, ultimately causing a loss of international orders.

Material Topic
Customer Privacy

Positive Actual and Potential Impact on Chroma
As a leading developer of precision measurement instrumentation and equipment, Chroma ATE Inc. is committed to deepening its information security architecture through innovative technology and close collaboration with key partners to protect the Company's critical information assets and customer data security. In the face of increasingly severe cybersecurity threats, the Company implements ISO 27001 information security certification, using the Plan-Do-Check-Act (PDCA) model to achieve a cycle of continuous improvement.
In addition, the Company has published its privacy policy on its official website, clearly disclosing how customer data is collected, processed, and utilized to enhance information transparency and strengthen customer trust. These initiatives effectively reduce the likelihood of information security incidents, ensure operational stability, and maintain the Company's reputation. They also help strengthen brand image, enhance customer loyalty and market competitiveness, and promote regulatory compliance while reducing future compliance risks.

Negative Actual and Potential Impact on Chroma

• Poor information security and personal data protection have multifaceted negative impacts on business operations, including the leakage of confidential information, damage to reputation and image, loss of customers, and legal risks.

Material Topic
Information Security

Positive Actual and Potential Impact on Chroma

• The Company continues to strengthen its information management system. It has established a system version control and review process for the MES system to ensure that all system updates are properly evaluated and approved, thereby reducing the risk of disruption to manufacturing unit system operations. The Company has established a remote data backup mechanism for critical systems and continues to improve remote backup and infrastructure resilience to enhance system operational continuity in the event of emergencies.
  In addition, the Company continues to strengthen its network log monitoring and information security management mechanisms by progressively implementing more comprehensive event correlation analysis and real-time monitoring capabilities, thereby improving threat detection efficiency, enhancing overall information security governance, and increasing stakeholders' trust in its information security management.

Negative Actual and Potential Impact on Chroma

• Information security incidents may result in operational disruptions, loss of critical data, or leakage of customer information, potentially undermining the trust of customers and partners in the Company and affecting investor confidence.