Intellectual Property Management

Intellectual Property Management Policy and Goals

To remain a world-leading technology provider, ASE shall continuously focus on research, development and innovation; formulate an intellectual property (IP) strategy in alignment with its operation and R&D strategies; establish a set of operating model which can effectively utilize the IP rights ASE owns to promote various business interests, so as to not only appropriately protect R&D results and enhance the company's competitiveness, but also to ensure the freedom of operation of ASE and maximize shareholder benefits.

ASE's IP management is tightly embedded into the company’s business operation blueprint, forming a continuous innovation cycle that encompasses business
opportunities and R&D, to IP management and utilization that includes the following three phases:

• To maintain ASE’s technology leadership and to better respond to future market needs, the company invests aggressively in research and development, aligns R&D with key future business opportunities and invests heavily in talent development and R&D resources.

• Our robust IP application system and tools ensure that R&D achievements are transformed accurately, thoroughly and effectively into legally protected intellectual property rights. To ensure comprehensive protection for key technologies and strengthen patent quality, ASE adopts a 3-pronged approach: developing a comprehensive portfolio, re-assessing patents to identify those of value and, revitalization to increase the value. Patents must also provide business value in order to maximize R&D investment returns. ASE puts in place a system of measures to protect the company’s trade secrets and maintain its unique competitive advantage, including information security systems, employee awareness training and education and systematic management. Where appropriate, the company will enforce applicable laws and regulations to prevent improper use, leakage or misappropriation of the company’s intangible assets by others to ensure that ASE’s investments, rights and interests are duly protected. In terms of trademarks, the unique and identifiable trademarks are registered to manifest the quality and characteristics of products and services. In case of other’s imitation or trade on the recognition of ASE trademark, or causing confusion of customers and consumers, ASE may invoke trademark rights to defend goodwill or secure the market share.

• High-value IP helps to facilitate business success, obtain customer orders and develop more business opportunities, thereby creating a positive sustainable cycle. Our robust IP management prevents unauthorized use of ASE's technologies by others and helps to defend against any threats from competitors.

ASE’s success is driven by its continuous quest for innovation and the strengthening of its IP management. To protect its proprietary technologies, trade secrets and patents from theft, misappropriation or infringement, ASE has strengthened employees’ IP awareness as well as ensured the inclusion of IP protection measures at work.In addition to regular IP related online and classroom courses, various types of exercises are also conducted to enhance employees’ knowledge and skills on IP protection. ASE has established stringent controls in its IT and email systems, and within its facilities, to strengthen security management and mitigate the risk of information leakage. In case of any risk exposures in IP misappropriation or infringement, ASE has in place a robust response mechanism and standard operating procedure to promptly investigate and where appropriate, enforce legal actions to prevent IP misappropriation or infringement by others, so as to protect the ASE’s IP rights.

ASE respects the legitimate IP rights of others. However, to the extent that the technology is developed independently by ASE or that ASE does not have prior knowledge, it may be uncertain as to whether there may be any potential conflict with others’ IP. To a certain extent, ASE may consider to rely on third party technology and patent licenses. If the technology license cannot be granted due to unacceptable terms and conditions, ASE may be exposed to third party claims for infringement, damages incurred, or the risk of an injunction order. ASE may also face customer requests and claims for contractual obligations to indemnify for the damages suffered by the customer due to third-party claim for infringement. Therefore, ASE will strategically obtain the necessary licenses for specific technologies, and at the same time, collects high-quality patents that could be utilized for defense against litigation or cross-licensing, so as to ensure the freedom of operation.

ASE’s patent portfolios comprise a variety of technologies related to semiconductor packaging and testing, and electronics manufacturing. As of January 31, 2024, we held 2,179 Taiwan patents, 2,015 U.S. patents, 2,088 P.R.C., patents, 104 Europe patents and 47 patents in other countries related to various semiconductor packaging technologies and invention utility and design on our EMS. In addition, as of January 31,2024, we also had has a total of 2,144 pending patent applications, of which 246 in Taiwan, 532 in the U.S., 1,288 in P.R.C., 50 in Europe and 28 in other countries.

ASE has applied and registered several trademarks in Taiwan, the United States, China and the EU. The following trademarks are registered in Taiwan. This is anon-exclusive list of ASE’s trademarks and any name, service mark or logo that has been used for or incorporated into ASE’s services but not specified in the foregoing list shall not constitute a waiver of ASE’s trademark or other intellectual property rights over that name or logo.

ASE will continue to strengthen trademark management, enhance management mechanisms at all stages of trademark acquisition, protection, maintenance, and use, and improve management specifications and processes that effectively secure trademark rights and avoid trademark-related risks, so as to effectively secure company's trademark rights and defend the company's goodwill.

In terms of trade secrets management, ASE carries out annual on-line training for all employees, continues to direct them to secure confidential information and foster subject-specific course and propaganda of non-infringement of IP for R&D departments, enhancing protection of ASE’s trade secret and preventing the risk of infringement. ASE implements an interview mechanism in the employee resignation process for Legal department to interview with employee who will resign and alert such employee to continue to fulfill confidentiality obligations after the resignation, reducing the risks of information leakage. ASE and its affiliates collaborate to develop group corporate strategy for protecting critical technologies that effect industry leadership and adopt unified management guidance to continue to maintain ASE’s competitiveness and protect the best interests of shareholder.

At least once a year, the ASE management team reports to the Board of Directors on the progress of the IP management plan and implementation, and sets for the improvement measures based on the Board’s recommendations. The most recent reporting date is December 16 , 2022.

On November 4, 2022, Advanced Semiconductor Engineering, Inc., a subsidiary of ASE, filed an application for the renewal of Taiwan Intellectual Property Management System (TIPS) (A Class) certification re-certificated. The renewal of TIPS certification (A Class) was valid for another 2-year-term until December 31, 2024.

In terms of environmental sustainability, ASE drives innovative research and development under four sustainable development strategies— "low-carbon, circular, inclusive, and collaborative" and adopts a versatile technology strategy to introduce novel packaging designs, optimize mature process parameters, use new materials, enhance automation, etc., while providing customers with innovative and leading-edge packaging services. Therefore, ASE can reduce the use of materials and reduce energy consumption in the packaging process to promote the environmental sustainability.

Innovation is key to ASE's revenue growth and competitiveness. ASE's technology initiatives include SiP Module, 2.5D/3D IC package, fan-out wafer-level package and MEMS and sensor products. When ASE facilitates environmental sustainability and assists customers in launching new generation products with green concepts, it simultaneously strengthens the patent portfolios. In 2023, 135 newly green-related patents were granted globally, and as of the end 2023, totally 1,101 green-related patents were granted.

In terms of social sustainability, ASE applies the green-related patents and technologies to the semiconductor packaging process to drive novel business models, lead the emergence of green supply chains, create high value-added job opportunities, and thereby enhance social welfare. At the same time, green-related patents and technologies also improve the quality of life, reduce pollution, and achieve more balanced development of the economy, society, and environment. Intellectual property rights play a key role in sustainable development in encouraging innovation, promoting technology transfer, protecting the environment and improving social and economic welfares.

In terms of business sustainability, ASE continues to invest in innovative research and development, and is committed to high-value, low-carbon, waste-reducing, and AI-assisted semiconductor packaging services. At the same time, ASE will transform innovation achievements into intellectual property rights and build an intellectual property protection wall to prevent others from plagiarizing ASE technologies and defend against competitors' intellectual property threats. ASE's intellectual property management system forms a continuous innovation cycle to support sustainable business development, protect innovation achievements and sustain ASE competitive advantages.