Chroma strictly complies with the laws and regulations of all countries where it operates, and respects and supports internationally recognized human rights standards and principles, including the International Bill of Human Rights, the Universal Declaration of Human Rights, the Ten Principles of the United Nations Global Compact, and the International Labour Organization’s Declaration of Fundamental Principles and Rights at Work. We are committed to treating all employees, contract and temporary staff, interns, and others with dignity and respect. This Human Rights Policy applies to Chroma Group and its investee companies. We are dedicated to reducing human rights risks and minimizing the impact of human rights incidents through our efforts and appropriate remedial measures, while fostering a responsible environment for our employees, suppliers, partners, and the communities in which we operate.

In 2023, we established key human rights issue management practices. A comprehensive process was adopted to ensure full compliance with Chroma’s Human Rights Policy. The Company’s ESG Office is responsible for human rights-related matters and reports annually to the Board of Directors on the implementation status of the Human Rights Policy. The Human Resources Department assists each operating site with the day-to-day implementation and routine monitoring of human rights practices. We continuously promote human rights awareness and provide related training to all employees and business partners. In 2024, a total of 1,629 employees received human rights training, accounting for 77.98% of the entire workforce. At the same time, we have planned the approach for conducting human rights due diligence in 2024 and expect to gradually implement it starting in 2025.

At Chroma, employees are regarded as valuable assets of the Company. In alignment with the protection of human rights under the Constitution and the principles of the Act of Gender Equality in Employment, we are committed to providing a diverse, inclusive, and equal opportunity recruitment process. No employee or job applicant shall be subject to discriminatory treatment in language, attitude, or behavior on the basis of gender, race, socioeconomic status, age, marital or family status, language, religion, political affiliation, nationality, physical appearance, or physical or mental disability.

Chroma is committed to hiring and retaining outstanding management talent. The senior management team comprises executives at the level of Divisional Vice President (equivalent) and above, including Divisional Vice Presidents, BU Presidents, Senior Vice Presidents of Centers, and the CEO of the Company. All members of the senior management team are citizens of the ROC (Taiwan). There were 21 senior management personnel, accounting for 1.01% of the total workforce, of which 9.52% were female.

Chroma’s workforce reflects a high degree of diversity, with employees from the ROC (Taiwan), the Philippines, Vietnam, Malaysia, the Netherlands, India, Belize, and Honduras. This demonstrates Chroma’s commitment to diversified employment. All foreign employees are entitled to the same benefits as local employees, with no differences in treatment based on nationality. In addition, Chroma actively supports government policies that promote employment opportunities for persons with disabilities and is committed to fostering an innovative and inclusive workplace. In 2024, the Company hired 12 employees with disabilities (including 9 with severe disabilities) and assigned them to appropriate departments where they could fully utilize their strengths and contribute to society. Going forward, Chroma will continue to assess suitable positions to ensure equal employment opportunities for individuals with physical or mental disabilities.

Chroma actively recruits new employees, and the selection process strictly complies with the Employment Service Act. Recruitment is conducted through fair and open channels, with evaluations based on professional competence and individual suitability. No candidate is subject to discrimination based on race, gender, nationality, religion, political affiliation, sexual orientation, or age.

Chroma is committed to cultivating outstanding talent. In 2024, the Company hired 325 new employees, representing a new hire rate of 15.56%. Nearly half of them were fresh graduates. By bringing in young and capable talent, Chroma aims to enhance overall operational efficiency and corporate image, thereby driving higher profitability and long-term sustainable development.

Note 1: The total number of employees for the year is the same as the year-end headcount.

Note 2:
“New employees” refer to individuals excluding those reinstated after unpaid leave.
“Employees who left” do not include those on unpaid leave.

Note 1: New employment rate = (Total number of new employees, excluding reinstatements/Total number of employees for the year) × 100%
Note 2: Turnover rate = (Total number of employees who left, excluding those on unpaid leave, minus foreign employees whose contracts ended and fixed-term employees)/Total number of employees for the year × 100%

Chroma values placing the right talent in the right position and facilitates this through a well-established internal transfer system and process that enables employees to be reassigned to roles that best fit their capabilities. In 2024, a total of 169 employees were reassigned through internal transfers. Over the past three years, the number of such transfers reached 514.

Chroma’s operating sites include the headquarters (which includes the Huaya Plant), the Hsinchu Branch, and the Kaohsiung Branch. Employee compensation is determined by the Human Resources unit based on salary benchmarks that take into account industry standards, the Company’s financial condition, and organizational structure. Total compensation is further adjusted based on each employee’s professional competencies, job responsibilities, performance, and the achievement of Company operational goals. New employees are not subject to any differences in compensation based on gender, race, political affiliation, beliefs, religion, sexual orientation, or marital status. Overall compensation is determined based on the employee’s position, responsibilities, performance, and demonstrated capabilities, and is aligned with the Company’s internal “Diverse Salary Scale”.

At Chroma, the average salary ratio between male and female employees across all career levels and operating locations is close to 1:1. However, due to the nature of the industry, which is heavily focused on R&D and technology, a higher proportion of R&D and technical positions are held by male employees, while female employees are more often engaged in administrative roles. As a result, even when position levels are the same, differences in salary structure may lead to slight variations in the overall male-to-female pay ratio. The basic salary data for 2024 is as follows:

Employees assigned overseas are included in the headcount of the headquarters based on their labor and health insurance registration.

Note 1: In 2024, the annual total compensation of the highest-paid individual at Chroma was 32.69 times the median annual total compensation of all other employees in the organization.

Note 2: From 2023 to 2024, the annual total compensation of the highest-paid individual and the average annual total compensation of all other employees in the organization increased by 16.17%.

Note 3: Compensation data for full-time employees not holding managerial positions at Chroma is disclosed in accordance with the Taiwan Stock Exchange's“ Guidelines for Reporting Compensation Information of Full-Time Employees Not Holding Managerial Positions,” and reflects salary information for the Taiwan region (Other Electronics Industry)(Chinese only)

Chroma embraces the philosophy of “treating employees as family” and places great importance on ensuring their care and well-being within the organization. We aim to help employees maintain a healthy work-life balance and have implemented the following measures to reduce unnecessary overtime:
1. The internal system automatically sends individual email and message reminders at the end of the workday.
2. Two hours after the end of the workday, the office air conditioning is automatically turned off to further remind employees to finish their overtime work.

The Company’s welfare system provides comprehensive support across all aspects of employees’ daily lives, including food, clothing, housing, transportation, education, and recreation, enabling them to focus on their work without concern. In addition, we make use of various communication channels to better understand employees’ needs and continuously improve our welfare measures. We have also established a variety of leisure, medical, and health facilities and services at our plants to help employees feel secure and focused at work. With the goal of “working healthily and living happily,” we are committed to comprehensive employee care, hoping that our colleagues can maintain a balance between their hard work and a healthy, fulfilling family life. In addition to providing labor and health insurance, maternity subsidies, parental leave without pay, and pension contributions under both the new and old systems in accordance with legal requirements, Chroma also offers comprehensive group insurance coverage for all employees. Furthermore, we provide leave benefits that exceed the requirements of the Labor Standards Act, including one day of birthday leave and five days of paid sick leave annually. These benefits are designed to ensure employees’ well-being, allowing them to work and live safely while also having sufficient time to rest and recharge.

We encourage our female employees to breastfeed their babies after childbirth. To support this, lactation rooms have been set up in the company building, equipped with refrigerators dedicated to breast milk storage and strict access control systems. These exclusive spaces offer a safe and comfortable environment that protects privacy, allowing female employees to balance family and work with peace of mind. Employees who have served for at least six months may, in accordance with the “Gender Equality in Employment Act” and the “Regulations for Implementing Unpaid Parental Leave for Raising Children,” apply for unpaid parental leave before their child reaches the age of three, for a maximum period of two years. The Company arranges for employees to return to their original unit and position upon completion of their unpaid parental leave. In 2024, a total of 26 employees applied for unpaid parental leave. The average re-appointment rate was 87.5%, and the retention rate was 100%.

Reinstatement rate = (Number of employees actually reinstated after unpaid parental leave in 2024/Number of employees to be reinstated after unpaid parental leave in 2024) x 100%

Retention rate = (Number of employees in 2023 who are still working after reinstatement of 12 months /Number of employees actually reinstated in 2023) x 100%

Chroma ATE Inc. values employee development and regards talent cultivation and growth as a key competitive advantage. Accordingly, the Company has established a comprehensive education and training system, along with development programs aimed at enhancing employees’ professional expertise, management capabilities, and personal growth. Chroma has established a comprehensive education and training system and formulated the “Education and Training Management Procedure.” Each year, training courses are introduced based on the training blueprint, and training plans are developed according to the needs of each department, with the goal of continuously enhancing employees’ professional competencies. Improvements are made based on this system to continuously enhance employees’ professional competencies.

In addition to implementing a career level framework to strengthen dual career paths for both professional and managerial roles, Chroma has diversified the execution of training programs to ensure that specialists across various fields receive more comprehensive and effective development resources.

Chroma holds the same high standards for the quality of its training programs as it does for its products. The Company consistently follows the planning, design, implementation, review, and outcome evaluation processes defined by the Workforce Development Agency’s Talent Quality-management System (TTQS) to ensure the reliability and accuracy of its training procedures. In 2024, Chroma once again received the Bronze Award certification in recognition of these efforts.

In addition, the following are the average training hours received by employees in managerial/non-managerial positions in 2024

Chroma conducts an annual performance evaluation for all employees through the Management by Objectives (MBO) system to implement effective performance management. Evaluations are carried out through a fair and reasonable performance appraisal process. The MBO system is used to assess employees’ performance during their tenure and serves as the basis for job assignments, promotions, salary adjustments, and training and development, ultimately enhancing overall performance and supporting the achievement of the Company’s operational goals.

In addition, considering that it is difficult to quantify work objectives for direct personnel and front-line administrative staff, Chroma has retained a parallel job performance evaluation system based on specific assessment items. The key evaluation criteria include work quality, work efficiency, work competency, and service attitude.

The results of the performance management system are reflected in the promotion management system and the reward and remuneration systems, ensuring that performance evaluations are effectively applied in human resource decisions. With the exception of business unit managers and above, all local employees are required to undergo performance evaluation upon completion of their three-month probationary period. In 2024, 1,652 employees underwent performance evaluation and 89% underwent objectiveoriented performance evaluation and 11% underwent job performance evaluation.

Note:

1.Job Performance Evaluation: Applicable to employees under career levels C0, E0, or W1 to W4, as well as new employees of other career levels who joined the Company between July and September of the evaluation year.

2. Objective-oriented performance evaluation: Others.