2020 ESG INSIGHT

ESG INSIGHT2020

MediaTek is a fabless semiconductor company that is focused on the design and development of leading technologies and IC products. All manufacturing, assembly, and testing processes are outsourced to external companies. As such, MediaTek focuses on environment-friendly product designs, procurement and management of suppliers, reduction of resource and wasted energy, and protection of employee health and safety.

MediaTek began conducting self-inventory in 2016 and have outsourced for external verification in 2019.

Scope 1 direct emissions from sources owned or controlled by the organization.

Scope 2 indirect emissions result from the generation of purchased or acquired electricity, heating, cooling, and steam consumed, for which makes up 95.9% of MediaTek’s overall emissions.

Scope 3 reduction efforts: commuting shuttle buses for employee transportation launched in June 2015, with four designated travel routes and inter-office electric-car routes, has reduced carbon emission by 16,434 metric tons in 2019.

Environmental

Key Environmental goals Environmental Certification

GHG Emissions

GovernanceSocialEnvironmental

Urge suppliers to jointly pledge for

2% annual reduction

2019 Target Reduction: 10.0% 2019 Achievement Rate: 10.7%

2020 Target Reduction: 11.6%

2020 Target Reduction: 5.4%

Long-term: Conduct global carbon emissions verificationsand risk assessments

20172016 2018 2019

50,000

60,000Unit: metric ton

40,000

30,000

20,000

10,000

0

35,511

717 748 808 2,095

37,070 37,941

48,985

GHG Emissions

Scope 1 Scope 2

01

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ISO 14001External verification since 2006.

ISO 14064Internal adoption since 2016, External verification completed in 2020.

NTD 60.53 Million

For 2019

Invested on environmental causes ZERO& Violations of environmentalprotection regulations (penalties)

GHG Emissions Energy Saving

Water Conservation

Completed greenhouse gas emission

verifications of all sitesin Taiwan

Expand greenhousegas emissions

verifications to buildingslocated in China

Conduct globalcarbon emissions

verifications and riskassessments

CurrentStatus

Short andmid term

Longterm

15%Increased usageeffeciencyObtained Gold greenbuilding certification (LEED)

In 2019, MediaTek attained an average rate of power saving of 10.7%, a number we aim to raise to 11.6% in 2020, on top of:

For 2018, power consumption increased due to increases in manpower, expansion of usage areas in the new building offices, and increases in usage of the IT data center; for 2019, the addition of 3 office buildings to MStar acquisition and inauguration of the Wireless Communication Building contributed to the increase in consumption.

With the largest data center in Asia, we have successfully completed conversion to a new generation of high-density power-efficent Data Centers that have become a core functional support behind our technology development.

GovernanceSocial

02

Power Management and ConservationPower Saving

Highlight 1: Enhance efficiency: High-density power efficient Data Centers

2017 2018 2019

2017 2018 2019

100

120

Unit: Million kWh

80

60

40

20

0

70.06.7

71.912.0 91.9

27.4

Power Consumption & Conservation Breakdown

Power Conservation Breakdown

High Density Energy Conserving Datacenters

Green Energy (solar power system)

Office AC systems

Lighting Management

Equipment Improvement and Systematic Management

N/A

N/A

3.64

0.75

0.36

Substantial waste occurs due to the nature of conference room use, including abandoned bookings or switched-on lighting and air conditioning. To optimize conference-room resources, we used MediaTek IoT chipset, LinkIt 7697, to detect real-time conference room usage and automatically switch off lighting and AC when not in use. In addition, this product also keeps us informed of conference room usage conditions, thus ensuring optimization of conference room resources.

Highlight 2: Innovative application: Smart, energy efficient IoT platforms applied to meeting rooms

EnvironmentalESG

Insight Report

Power ConservationPower Consumption

Cutting power consumption atdata centers by 4% within 3 years

Boosting annual output ofsolar power to 0.2M kWh3% 0.2M

1 2

1.45

N/A

3.09

0.98

1.13

20.3

0.14

4.1

1.5

1.4

100+ ConferenceRooms

3kWh

SavedDaily

20.3million

kWh

Data centerConservation

564 kWh(2 Gj)

AnnualSavings


03

Since MediaTek’s chipsets power a variety of end devices, we include environmental considerations at all stages in the design. Environmentally conscious designs are implemented in products through energy-efficient production processes and use of non-toxic materials. MediaTek products all comply with ROHS and WEEE regulations and do not use prohibited substances.

Highlight 3: MediaTek’s new solar power system

Green Desgin

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Chip Size1.20

0.60

1.00 1.010.91

0.82

Power Consumption1.20

0.60

1.00 0.970.86

0.79

Power Consumption and Chip Size(normalized to 2016 value)

2016 2017 2018 20192016 2017 2018 2019

-3%-11%

-8%

+1%-10%

-10%

250

Unit: Million kWh

200

150

100

50

0

300

239

192217

Annual Power Savings (calculated based on production volume)

2017 2018 2019

Minimizing Power Consumption Minimizing Physical Size

Est. AnnualOutput

CO2

Reduction0.2%equivalent

of Our Total AnnualPower Consumption

107metric tons

Estimated200,000

kWh (720 Gj)

We took advantage of our roof-top space at the headquarter to install solar energy generation facilities, in an effort to offset our grid-provided power, move towards a carbon-neutral operation and to lower energy expenditure. This marks the first privately installed solar energy conversion system in Hsinchu Science Park that connects to Taipower's power grid. Rooftop solar panels are estimated to cut temperature of top-floor office by 3-5°C, reducing airconditioning power consumption significantly.

We aim to reduce environmental impact by:

MediaTek offices draw water from water plants in various districts, and for 2019 a total of 317,480 metric tons (approx. 317 million liters) of water were used. The water consumption increased by 27% compared to the previous year, mainly due to the acquisition of MStar’s 3 new office buildings, and the addition of the new Wireless Communications Building.

Water Resource Management

MediaTek has a strict process for selecting collaborating companies for waste removal and reuse, and we conduct non-periodic audits on the legal compliance of waste disposal as part of our monitoring responsibilities. Despite increasing in scale, the total waste disposal was down year over year by approximately 21 metric tons in 2019. The total waste disposal during 2017, 2018, 2019 is 94.03, 102.79, and 81.66 metric tons respectively.

Waste Management

As fabless IC design house, MediaTek's top priority is to work with our suppliers to decrease potential impacts on the environment and society. We ensure responsible supply chain management by reducing our environmental impact where possible, encouraging suppliers to work together on issues relating to climate change. We select our suppliers based on the 3 ESG aspects, confirming management policies and organizational structures of our suppliers, conducting on-site and written audits each year/month, organizing relevant training and improvement meetings, and hosting supplier forums to provide awards and generate encouragement for our top suppliers.

Supply Chain Management

GovernanceSocial

04

EnvironmentalESG

Insight Report

Average Water Saving Ratio

5.4%3.7%

2019 Rate 2020 Target

Water Consumption and Savings

Data scope: offices in Hsinchu Science Park/Zhubei/Taipei (coverage scope 100%)

233 250 317 350

11.5

19.94.7%

4.4%

3.7%

5.4%

2017 2018 2019 2020(F)

12.2

11.4

Water savingsWater consumptionProportion of savings (%)

Unit : million liters

Waste Disposal

42.30

33.7232.53

60.4947.94

61.50

2017 2018 2019

120

60

0

Unit: metric ton

Waste electronic componentsGeneral waste

Overview of MediaTek’s supply chain management tools

Create online training videos and training materials relating to Supplier Code of Conduct

RBA online courses

Regularly host forums among suppliers to share best practices

Supplier Forums

Recognize and encourage excellent supplier performance

Supplier Conferences

Uphold principles of local procurement, retaining job opportunities for locals and decreasing transportation distance of materials

Local procurementSupplier risk evaluation standards and sustainable audit standards

Established management standards

Ensure that minerals used by suppliers are not sourced from conflict areas

Integrated guidelines and declarations of Responsible Business Alliance Code of Conduct, International Labor Office Tripartite Declaration of Principles, and UN Universal Declaration of Human Rights

MediaTek Supplier Code of Conduct

Through RBA online management system, SAQ, and written and on-site audits

Regular audits

Conflict minerals

Mechanisms of supply chain management MediaTek’s influence

GovernanceSocial

05

1/

1/

2/

2/

2/

3/

4/

5/

5/

5/

Supplier Code of Conduct

Management systems

Business ethics

Labor and human rights

Environmental protection

Health and safety

MediaTek Supplier Code of Conduct

Established management standards and regular audits

Comprehensive Implementation of Supplier Assessment Policies to Promote Sustainable Supply Chains

EnvironmentalESG

Insight Report

For the full details of the Code of Conduct, please refer to p.49 of the 2019 CSR Report.

68%

12%

Transaction scaled downor even terminated

Resumetransactions

RISK ASSESSMENT

High Risk Priority ProcurementTargets

2019 CoC (Code of Conduct) Sign Rate

Expected 2021 Sign Rate

68%80%

60 POINTS≥

PASS

FAIL

On-Site or PaperAUDITING

Since 2011, MediaTek has been conducting conflict mineral inspections and require suppliers to provide "Declaration of non-conflict mineral usage" in accordance with the Conflict-Free Smelter Program (CFSP), RBA, and Global e-Sustainability Initiative (GeSI) regulations. In 2018 also began using CRT to conduct cobalt inspections.

3/

4/

GovernanceSocial

06

Conflict Minerals

5/ MediaTek’s Influence: supplier forums, RBA online courses, supplier conferences

MediaTek upholds the principle of local procurement, in order to provide job opportunities for local residents and decrease carbon emissions due to reduced material transportation distances. Procurement value in Taiwan exceeds 100 billion NTD a year, accounting for vast majority of our procurement of both raw materials and common goods.

MediaTek held a forum on responsible supply chain in 2019 and has decided to make it an annual event, in order to realize green manufacturing for sustainable development. Forum included themes of SDG12 and SDG13 for sustainable energy and climate actions, where opinion leaders and experts/scholars gave talks about international trend and propose suggestions, while suppliers with excellent performance shared with attendees their experience.

local raw material and procurement and testing. Local general procurement

Local Procurement

73% 81%

RMI Certified Smelters100%by 2021:

Disclose detailed smelter information

EnvironmentalESG

Insight Report

IATF 16949 ISO 14001 ISO 45001 RBA/SA 8000Sony

Green- Partner/QC 080000

HSPM

ISO 9001

Quality Management

System

Automobile Industry Quality

Management

Environmental Management

System

Occupational Health and Safety

Management

Social Responsibility Management

100% 100% 100% 100% 100% 100%

100% 100% 100% 100% 100% 100%

100% 100% 100% 89% 67% 89%

100% 100% 100% 100% 70% 70%

100% 100% 100% 97% 81% 87%

Risk level: Low risk (X > 60%) | Medium risk (60 > X > 30%) | High risk (X < 30%)

Environmental assessment Social assessmentEconomic assessmentAspect

Supply chain certification assessment results

Category

Fabcompanies

Assemblycompanies

Testingcompanies

Memorymanufacturers

Overallproportion


07

MediaTek provides an environment of diversity and inclusiveness to attract global talent, with opportunities for them to unleash their potential and grow with the company. We aspire to be involved through our core capabilities to promote technology education and innovative technological applications, empowering innovation and local implementation.

As research and development is a core requirement, MediaTek is driven by a need to seek out leading technical talent globally. Full-time employees account for 97% of the workforce, including disabled people (63 in 2019), offering them fair job opportunities. We have established 27 sites around the world, and hope to through exchanges and collaboration, hope to leverage our demographically and geographically diverse employees.

MediaTek hires a higher than average share of female R&D and technical support personnel than the high-tech industry.

Social

Employee Structure and DiversityGlobal, Diverse, and Inclusive Workforce

Distribution of Gender by Levels

[Note] This information includes employee numbers from MediaTek and its subsidiaries (including MStar and Nephos that joined in 2019), but does not include employees at independently operating subsidiaries (Airoha, Ilitek, Richtek, Econet, Sigmastar).

[Note] The above information was retrieved on December 31, 2019.

Senior management42(96%)

2 (4%)

348 (90%)

38 (10%)

1,099 (88%)

143 (12%)

10,132 (80%)

2,504 (20%)

Mid-level management

Entry-level management

General employees

2,687（18.8%）

11,621（81.2%）

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Proportion of women

2017 2018 201918

19

19.1%

19.5%

18.8%

18.5

19.5

In 2019, MediaTek had a global turnover rate of 7.2% (5.4% in Taiwan), which was significantly lower than the 19.8% (15.7% in Taiwan) in the high-tech industry (see Radford 2020 Market Research Report). To continue the optimization of MediaTek's talent structure, we not only focus on indicators for new hires and employee turnover, but also pay close attention to the number of applications per job, offer-to-acceptance rates, and development and retention of new hires. We hope we can continue to attract the best individuals to work at MediaTek from a highly competitive talent market, by adopting methods such as our Care System for new hires and exit interviews.

New Hires and Turnover Rate

Type of employment Male Female Subtotal

Full-time

Part-time

Total

11,557 2,653 14,210

64 34 98

11,621 2,687 14,308

Type of Employment

EuropeNorth

AmericaAsia

(Ex. Taiwan) Taiwan Total

385 292 4,716 8,915 14,308

Geographic Distribution

16.4%Females inR&D / technical departmentsCompared to 13-15% of femalegraduates from relevant degrees.

7.2%5.4%

&2019 MediaTek Global & Taiwan Turnover RateCompared to high-tech industry turnover rates of 19.8% & 15.7% for global and Taiwan respectively.


08

2015 20172016 2018 2019

1,200

600

800 794955 921

993 9987.3%

9.1%8.4%

9.2%

7.2%

Proportion of exiting employees 2015-2019

[Note] Proportion of new hires: Number of new hires/ Total number of employees at the end of the year; Proportion of exiting employees: Number of exiting employees/Total number of employees at the end of the year.

number of exiting employees proportion of exiting employees

8.0%

4.0%

6.0%

10.0%

Employee RenumerationThe salary ratio of permanent male and female engineering employees is 1:1 in 2018 and 2019. Among companies listed on the Taiwan Stock Exchange (TWSE) in 2018, MediaTek offered the highest average salaries for full-time non-managerial employees based in Taiwan, and we have remained ahead of the curve throughout 2019.

/ Largest such facility in Hsinchu Science Park (approximately 21,354 ft2 / 1,984 m2).

/ Offers extended childcare, free of charge, until 8:00 p.m., for employees when they are at work.

/ Innovative teaching methods, integrating game and learning, to aid children’s science and art exploration.

/ Apart from using standard alcohol for surface disinfection, stringent nightly ultraviolet germicidal lamps are also used.

/ Offer competitive compensation and fringe benefits Institute flexible fringe-benefit program meeting employee's needs.

MediaTek In-House Preschool

Item 2017 2018 2019

Average salaries for full-time non-managerial staff

Median of full-time non-managerial staff salaries

2,705

2,422

2,647

2,339

2,693

N/A

[note] Full-time, non-managerial staff are all full-time employees excluding Board members and managers.

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Retention rate (End 2019)

95%

Over 10 communications sessions and face-to-face communications were held before the integration, explaining to the 2 companies' employees MediaTek's corporate culture, management concept, and corporate vision, in addition to answering their ques-tions. Through face-to-face communications, employees get to know more about the company.

In the wake of the acquisitions, the company strengthened those employee's identification with MediaTek via global celebratory activities, care system, and smooth communications channels, helping them adapt to the new environment and blend into the corporate culture.

Retention of quality employees from theacquisition of MStar and Nephos

Consistentlyachieving

yearperiodturnover rates for past<10% 5

Thousand NTDAmong highest average salaries for full-time non-managerial employees

MediaTek values employee experiences and strives to help each employee enjoy their work. Employees derive positive experiences from different things, so we are active in communicating with our employees as we seek to understand their motivations through a variety of channels. We provide benefits that exceed legal compliance requirements and aim to take care of the physical and mental health, and the work-life balance.


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Employee Development and Talent Cultivation

MediaTek learning structure

Mandatory coursesBasic technical training

Core values Training of new hires

Technical forumTechnical training plan

Advanced management forumManager training

AOPTraining for senior management

Strategic management forum

Individual development plan

Operational leadership

Organizational leadership

Strategic leadership

Corporation-wideIndividual departments

Departmental training

Senior managersLeadership training with a focus on strategic action.

Mid-level managersLeadership training with a focus on organizational action.

Entry level managersLeadership training with a focus on operational action.

Individual development plan.Engineers / administrative staff

All employees.

Workplace Health and Safety

ISO 45001 External verification since 2018

Managerial level trainingConsidering development goals from different angles, we offer complete talent-cultivation program, to assure the strength of high-quality talent pool and consolidate the leadership and management capability of management at various levels.

MediaTek cultivation program

Manager sensitivitytraining

Cultivationof leadershipcapabilities

Coaching forhigh-potential

talent

Training for the Board and senior

managers

A company's sustainable operation and growth hinges on exercise of employees' professional and management talent to the fullest. We aim to become a global semiconductor leading firm in technology and operation, via a training and development mechanism for employees at various levels.

Managers

Non-managerial staff

All Employees

11,842

87,263

99,105

1,672

12,636

14,308

7.08

6.91 2,546

6.93

Employee Type Total Hours Total Persons Average Hours Average Cost/Person (NTD)


10

MediaTek has adopted sound corporate governance practices to reflect our strong commitment to protecting stakeholder interests.

Governance

Organizational Structure

The Board meets at least once each quarter; it convened 6 times in 2019 with 98% attendance.

Shareholders

The Board

MediaTek Inc.

Internal Audit Division

Audit Committee

Remuneration Committee

Business Unit TechnologyDevelopment

StrategicDevelopment

Wireless SOC System Architecture

Corporate Strategy

Intelligenct Devices Central Design

Corporate Sales &Marketing

Corporate Sales

Corporate Marketing

Smart Home Wireless Technology

Computing and AI

Multimedia

CorporateOperations

Process Tech. &MFG Operation

InformationTechnology

Legal & Intellectual Property

Finance

Human Resources

Central Engineering

Corporate Technology

Board of DirectorsThe Board of Directors is currently composed of 9 directors (including 3 independent directors). For a list of Board members and their educational background and work experiences, please refer to p.11 of MediaTek’s 2019 Annual Report. MediaTek‘s directors’ renumeration are disclosed on an individual basis and can be found on p.18 of MediaTek’s 2019 Annual Report.

Ming-Kai TsaiChairman M

Ching-Jiang HsiehVice Chairman M

Lih-Shyng TsaiDirector and CEO M

Title Name M

Chung-Yu Wu Convener

Member

Member N/A

Member

Convener

Independent Director M

Peng-Heng ChangIndependent Director M

Ming-Je TangIndependent Director M

Title Name MAudit

CommitteeRemuneration

Committee

Cheng-Yaw SunDirector M

Kenneth KinDirector M

Gon-Wei LiangDirector M

Title Name M

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11

Functional Committees

The Audit Committee meets at least once each quarter, and otherwise as necessary. The Audit Committee convened a total of 6 times with 100% attendance in 2019.

The audit committee supervises the adequate presentation of our financial statements, the selection and discharge of the CPA, the independence and performance, the effective implementation of our internal control, compliance with relevant laws and regulations, and the control mechanism for existing or potential risk.

Chung-Yu WuConvener 100%

Peng-Heng ChangMember 100%

Ming-Tze TangMember 100%

Title Name Attendance

Audit Committee - 3 independent directors

The Remuneration Committee meets at least once per year; and the Committee convened 2 times in 2019 with 100% attendance.

The Remuneration Committee aims at establishing and regularly reviewing the performance evaluation procedure for directors and managers as well as establishing compensation policy, system, standard and structure and regularly reviewing the compensation of directors and managers.

Peng-Heng ChangConvener 100%

Chung-Yu WuMember 100%

Ji-Ren LeeMember 100%

Title Name Attendance

Remuneration Committee - 2 independent directors and 1 independent external expert

The CEO serves as the Chair of the Committee and is responsible for convening the senior executives from various units, including marketing, R&D, sales, HR, process technology & manufacturing operations, legal, finance, and auditing units, as well as the MediaTek Foundation to assume the Committee members.

CSR Committee – CEO, Senior Executives from various units

The CSR Committee meets twice a year; with status updates to the Board yearly.

In 2019, the information security risk management framework was strengthened. The Cyber Security Committee and the head of the supervisors of IT formed the Cyber Security Committee, with the top director of the IT Department as the convener. The Information Security Committee is responsible for information security management, planning, supervision and implementation. Related matters include: formulating and regularly reviewing the security policy, including the security incident notification and response mechanism.

Cyber Security Committee

With the help of the Corporate Legal Division, the Board directors have completed various trainings, including trade secret protection, detection and prevention of fraud, the latest issues and analysis of the Company Act, insider trading and directors’ duties particularly in M&A context, the Income Tax Act and the Statute for Industrial Innovation. By virtue of these education program, the directors learn about the latest industry trends and how to function the Board effectively.

Corporate Governance Unit

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MediaTek published a Whistleblowing Policy in 2019 to enhance corporate governance. During the investigation, the identity of the whistleblower would be kept confidential, and each cases would be independently handled.

MediaTek adopts a zero-tolerance policy for corruption and bribery, unfair competition, intellectual property infringements, and insider trading. Any violator of the Code of Business Conduct or relevant internal rules discovered by the Whistleblowing System and other law enforcement mechanisms will be severely punished to the full extent of our policies and the law, and the internal auditing will also investigate, record, and feedback upon the violation to protect our reputation and ethical values.

Whistleblowing System


12

MediaTek periodically provides internal training courses covering topics of Proprietary Information Management (PIM), and prevention of trade secret violations among others, thereby strengthening employee’s awareness of ethical management and enhancing our corporate governance. In legal compliance, MediaTek follows domestic and international policies and laws that may potentially impact our business and financial operations, updating internal rules accordingly. In turn, the Audit Division reviews and examines the enforcement status of legal compliance. We have established a Whistleblowing System, with dedicated reporting channels and procedures for investigation, to enforce the principles of ethical management as regulated in the Ethical Corporate Management Best Practice Principles and Code of Business Conduct.

8 top guidelines of the Code of Business Conduct

Integrity and Legal Compliance

Zero tolerance for bribery, corruption, extortion, andembezzlement

Refrain from unfair competition and behaviors that cause adverse impact on the environment, labor safety, and the society

Strict prohibition against giving or receiving inappropriate giftsand interests

No contact with those who fail to comply with our Code of Business Conduct

Respect intellectual propertyrights and honor confidentialityobligations

Protect privacy and personal information

Insider trading prohibition

Avoid the conflict of interest

Phone886-3-603-0011(Audit Division Manager)

[email protected] (Automatically transfer to the Audit Division Manager)

AddressMediaTek Audit Division Manager, No. 1, Dusing 1st Rd., Hsinchu Science Park, Hsinchu City 30078, Taiwan

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Chairman: VP of Operations ManagementDuties: Appoint risk management tasks and responsibilities for all units. Formulate response measures for operational disruptions. List potential risks. Evaluate impacts of every risk. Identify the most impactful internal and external issues. Classify and report to management based on impact levels.

Business Continuity Management Committee

Risk Management

Governance Risk Management

1. Formulated emergency procedures, incident (injury) investigation, disaster recovery procedures against business risks.2. Formulated response procedures for emergency at production sites against supply-chain risks.3. Managed currency fluctuations with forward exchange contracts.4. Coped with interest rate changes with effective forecast via sensitivity analysis of interest-rate risk.

Social Risk Management

Assessed risks to employees’ human rights Ensured conformance of labor policy to domestic and foreign human-rights conventions and to legal requirement of host governments. Held labor-management meetings regularly.

Environmental Risk Management Formulated environmental management policies and occupational health and safety management policies. Conducted annual review on climate change issues. Revised environmental protection measures according to international trends, operational needs, and government policies.

2020 ESG INSIGHT

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