Mediatek Annual Report 2021 1-100

Contact Information
Spokesman:
Name: David Ku
Title: Chief Financial Officer
Tel: +886 (0)3-567-0766
Fax: +886 (0)3-578-7610
Email: [email protected]
Acting spokesperson:
Name: Jessie Wang
Title: Deputy Director, nvestor & Analyst Relations Division
Tel: +886 (0)3-567-0766

Fax: +886 (0)3-578-7610
Email: [email protected]
MediaTek Inc. Headquarters:

Address: No. 1, Dusing 1st Rd., Hsinchu Science Park, Hsinchu, 30078, Taiwan
Tel: +886 (0)3-567-0766
MediaTek Inc. Taipei Office:

Address: No. 15, Lane 91, Section 1, Neihu Road, Neihu District, Taipei, 11442, Taiwan
Tel: +886 (0)2-2659-8088
Transfer Agent:
Company: China Trust Commercial Bank, Transfer Agency Department
Address: 5F, No. 83, Sec. 1, Chungqing S. Rd., Taipei City, Taiwan, R.O.C. 100
Website: https://ecorp.chinatrust.com.tw/cts/en/index.jsp
Tel: +886 (0)2-6636-5566
Independent Auditor:
Company: Ernst & Young
Auditors: Shau-Pin Kuo and Wen-Fun Fuh
Address: 9F, No.333, Sec. 1, Keelung Rd., Taipei, Taiwan, R.O.C.
Tel: +886 (0)2-2757-8888
Website: http://www.ey.com
MediaTek Inc. Website:

Website: http://www.mediatek.com
MediaTek Inc. | 2021 Annual Report

2021 MediaTek Annual Report
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1. MediaTek Company Profile
MediaTek Inc. was founded on May 28, 1997 and listed on the Taiwan Stock Exchange (TSE) in July 2001. The Company
is headquartered in Taiwan, with sales and research subsidiaries in Singapore, Mainland China, India, United States, Japan,
Korea, England, Finland, Sweden, Germany, Holland and Dubai.
With continuous investments in advanced processes and technologies, MediaTek possesses leading display, compute,
connectivity and multimedia capabilities. Chips developed by the Company are equipped with high performance, high
speed, low latency and low power consumption features to provide chipset solutions across platforms including smart home,
connectivity, IoT, ASIC and smart mobile devices. With first-mover advantages in AI and 5G, MediaTek enables global
customers to innovate and provide higher value products and services with its leading global position and competitive edge.
By building technologies that help connect individuals to the world around them, the Company is enabling people to expand
their horizons and achieve their goals. We believe anyone can achieve something amazing. And we believe they can do it
.
2. Milestones
Year Milestones
Published 2 papers in ISSCC and is the only Taiwanese company with papers selected by ISSCC for 19 consecutive years, totaling 85
2022 papers - -117dBc THD
(-132dBc HD3) and 126dB DR Audio Decoder with Code-change Insensitive RT-DEM and Circuit Technique for Relaxing Velocity
Awards 2021
-
Mobile 5G Chip o
Ranked 6th
- Top 10 Domestic Corpo
2021
th
Annual Compass Intelligence Awards in IoT, Mobile, and Emerging Tech

-21 by the Economic Times
Published 4 papers in ISSCC and is the only Taiwanese company with papers selected by ISSCC for 18 consecutive years, totaling 83
papers 35.1 An Octa-Core 2.8/2GHz Dual-Gear Sensor-Assisted High Frequency/Power Efficiency CPU in 7nm FinFET 5G
Smartphone SoC 27.5 An 80MHz-BW 640MS/s 2 Time-Interleaved Passive Noise-Shaping SAR ADC in 22nm FDSOI Process
4.1 7nm 5G Mobile SoC featuring a 3.0GHz Tri-Gear Applications Processor Subsystem 11.1 A 1.7-pJ/B 112Gbps XSR
Transceiver for Intra-package Communication in 7nm FinFET technology
Ranked top 3 in -Asia

Executive Team-
Received the Excellence Reward in promoting gender equality at work from Hsinchu Science Park, Ministry of Science and
2020 Technology.

Year Milestones
Published 11 papers in ISSCC and is the only Taiwanese company with papers selected by ISSCC for 17 consecutive years,
-Gear Octa-Core CPU Subsystem
-Based Transceiver
with 38dB Loss Compensation for Next- -to-13.3 TOPS/W 3.6TOPS
Dual-Core Deep- -Sensing Front-End
Realized by A Continuous-Time Incremental ADC with 12b SAR Quantizer and Reset-Then-Open Resistive DAC Achieving 140dB
4 Dual-Band Dual-
Concurrent WiFi 802.11ax Transceiver with Integrated LNA, PA and T/R Switch Achieving +20dBm 1024-QAM MCS11 Pout and -
0.98nJ/Pixel Image-Processing SoC with 24b High-Dynamic-Range and Multiple Sensor Format Support for Automotive
achieve 93.5%
Received
Selected as "Taiwan Top 10 Global Brands", hosted by Ministry of Economic Affairs and Interbrand for the fifth consecutive year
Won "Outstanding Asia-Pacific Semiconductor Company" at GSA Awards
Won TCSA "The Most Prestigious Sustainability Award - Top 10 Domestic Corporates"; also received "Top 50 Corporate
Sustainability Report Gold Award," "Growth through Innovation Award" and "Social Inclusion Award" for the Manufacturing industry
MediaTek 5G SoC honored as "Best Mobile Chipset" at Computex given by GadgetMatch
Published 8 papers in ISSCC and is the only Taiwanese company with papers selected by ISSCC for 16 consecutive years
180mW 56Gb/s DSP-Based Transceiver for High- -105dBc
THD+N (-114dBc HD2) at 2.8VPP Swing and 120dB DR Audio Decoder with Sample-and-Hold Noise Filtering and Poly Resistor
-BW 320MS/s Passive Noise-Shaping SAR ADC with Passive Signal-Residue Summation in 14nm
-OSR 25MHz-BW 79.4dB/74dB DR/SNDR CT DS Modulator Using 7b, Linearized Segmented DACs with
Digital Noise-Coupling- -BW 31.9fJ/conv-step Filtering DS ADC with
2019 a Built-In DAC-Segmentation/ELD-Compensation 6b 960MS/s SAR- -A
Multimode Multiband RF Transceiver with 4RX/2TX Inter-Band Carrier Aggregation, 2-Carrier 4×4 MIMO with 256QAM and HPUE
-Locked Phase Rotator with Dynamic Multiphase Injection for 28/56/112Gb/s Serdes
MediaTek Helio P90 won the "Best Mobile Chipset" award at the 5th EM Best of Industry Awards 2019
MediaTek Helio G90T won "The Best Gaming Chip" by The Mobility India
MediaTek Helio P90 honored as Winner of "Compass Intelligence Tech Awards" given by Compass Intelligence
MediaTek Helio P60 honored as Gold Winner of "Golden Mousetrap Award" given by Design News
MediaTek Helio P60 won IoT Breakthrough "IoT Semiconductor Company of the Year" Award
MediaTek Helio P60 chosen as the Finalist of "Electronic Products Product of the Year Award" given by Digital ICs
MediaTek NB-IoT chipset MT2625 chosen as the Finalist of "Best IoT Connectivity Solution Award" given by IoT World
Received "Outstanding Asia-Pacific Semiconductor Company" Award from Global Semiconductor Alliance (GSA)
Selected as "Taiwan Top 10 Global Brands", hosted by Ministry of Economic Affairs and Interbrand for the fourth consecutive year
Won TCSA "Top 50 Corporate Sustainability Award"; also received "Top 50 Corporate Sustainability Platinum Award", "People
Development Award", "Growth through Innovation Award," "Social Inclusion Award" and "Supply Chain Management Award" for the
Manufacturing industry
Ming-Kai Tsai, MediaTek Chairman, chosen as one of Harvard Business Review's "Top 50 the Best CEOs in Taiwan
MediaTek Helio P60, awarded by Android Authority, as the best of MWC 2018
2018 Published 4 papers in ISSCC and is the only Taiwanese company with papers selected by ISSCC for 15 consecutive years An 87.1%
Efficiency RF-PA Envelope Tracking Modulator for 80MHz LTE- Advanced Transmitter and 31dBm PA Output Power for HPUE in
0.153 m CMOS A 0.0004% (-10BdB) THD+N 112dB SNR and 3.15W Fully Differential Class-D Audio Amplifier with Gm Noise
Cancellation and Negative Output Common Mode Injection Techniques A 50MHz-BW Continuous -Time llI: ADC with Dynamic
Error Correction Achieving 79.8dB SNDR and 95.2dB SFDR (Co-author with Oregon State University) 94% Power-Recycle
and Near-Zero Driving-Dead-Zone N-type LowDropout Regulator with 20mV Undershoot at Short-Period LoadTransient of Flash
Memory in Smart Phone
-ranked company for CEO, CFO, IR Professional, IR Program, Analyst

Year Milestones
ar
Received Prestigious Sustainability
Awards-
y of Oulu, Finland
Selected as FTSE4Good Index component

MediaTek HEVC codec won 2017 Primetime Emmy Engineering Award
2017 Science Park Bureau

Published 10 papers in ISSCC
companies and global semiconductor companies A high-efficiency multi-band Class-F power amplifier in O.1531Jm bulk CMOS lor
-
FinFET 2.8GHz, Tri-gear Deca-core CPU complex with optimized Power-
802.11ac 5tage2(80+80) Dual-Band Reconfigurable Transceiver Supporting up to FourVHTBO Spatial Streams with 116f5 JitterRMS
Frequency Synthesizer & Integrated LNAJPA Delivering 256
Intelligent Low Power Transceiver Design for LTE-
Calibrated Integrated RF Band-Pass Filter and - dB DR, 71.9dB SNDR, -BOdBc THD, VCO-
Based CT A:r. ACe with Phase-Domain ELD Compensation using 128- State Segmented Rotator in 16nm CMOS S-
Integrated Multi-Mode TxM for GSMIEDGElTD-SCDMAITDLTE Applications Using A Class-
Digitally Assisted CMOS WiFI802.11ac/11ax Front-End Module Achieving 12% PA Efficiency at 20dBm Output Power with 160MHz
-linearity CMOS receiver achieving +44dBm IIP3 and +13dBm B1dB for SAW-
Acquired Airoha Technology Corp.
Received Outstanding Asia-Pacific Semiconductor Company Award from Global Semiconductor Alliance (GSA) for the fifth
consecutive year
ive
year
Mr. Ming-Kai Tsai, MediaTek Chairman and CEO, was honored by Harvard Business Review as one of 100 Best-Performing CEOs in
the World
Won Taiwan Corporate Sustainability Awards 2016
Selected as , hosted by CommonWealth Magazine and Mr. Ming-Kai Tsai, MediaTek Chairman and
2016 CEO,
Published 6 papers in ISSCC and hit a new record of papers selected by ISSCC for 13 consecutive years among Taiwan companies
A 20nm, 2.5GHz, UltraLow Power TriCluster CPU Subsystem with Adaptive Power Allocation for Optimal Mobile SoC
Performance A 10MHzb A Dual-
Band Digital-WiFi 802.11a/b/g/n Transmitter SoC with Digital I/Q Combining and Diamond Profile Mapping for Compact Die Area
and Improved Efficiency in 40nm CMOS A 160MHz BW, 72dB DR, 40mW Continuous Time DeltaSigma Modulator in 16nm
CMOS with Analog ISIReduction Technique An Oversampling SAR ADC with DAC Mismatch Error Shaping Achieving 105dB
SFDR and 101dB SNDR over 1kHz BW in 55nm CMOS A 0.35mW 12b 100MS/s SAR Assisted Digital Slope ADC in 28nm
CMOS
Acquired ILI Technology Corp.
MediaTek MT7615, MU-MIMO 4x4 802.11ac Wave 2 enterprise-class SoC for Wi-
Award and R&D Accomplishment Award (Integra
Thomson Reuters' Top 100 Global Innovators 2015 (the only Greater China company won the prize for
second consecutive year)
Outstanding Asia Pacific Semiconductor Company Award by the GSA for the fourth consecutive year
Mr. Ming-Kai Tsai, MediaTek Chairman and CEO, winner of Dr. Morris Chang Exemplary Leadership Award awarded by GSA
of Economic Affairs and Interbrand for the first time
2015
MediaTek MT6795 (MediaTek Helio X10), Highly-integrated 64-bit True Octa-
Bureau
MediaTek Helio Chinese naming campaign received Bronze prize in MAwards - Best Use of Social Media Promotion & Innovation
Awards
MediaTek Helio Chinese naming campaign won Bronze prize in GOLDEN AWARDS - Best Use of Social Media Promotion &
Innovation Awards

Year Milestones
Won Taiwan Corporate Sustainability Awards 2015
Ranked sixth in Top 20 Most Innovative Taiwanese Companies 2015 by Ministry of Economic Affairs, China Productivity Center
and Boston Consulting Group (BCG)
Published 5 papers in ISSCC, and hit a new record of papers selected by ISSCC for 12 consecutive years among Taiwan companies
A Highly Integrated Smartphone SoC Featuring a 2.5GHz Octa-Core CPU with Advanced High-Performance and Low-Power
Techniques An LTE SAW-less Transmitter Using 33% Duty-Cycle LO Signals for Harmonic Suppression A Wideband
Fractional-N Ring PLL Using a Near-Ground Pre-Distorted Switched-Capacitor Loop Filter A 4.5mW CT Self-Coupled r
Modulator with 2.2MHz BW and 90.4dB SNDR Using Residual ELD Compensation A 0.5nJ/Pixel 4K H.265/HEVC Codec LSI
for Multi-format Smartphone Applications
Acquired Alpha Imaging Technology Corp.
Acquired Chingis Technology Corp.
Acquired Richtek Technology Corp.
Named Outstanding Asia Pacific Semiconductor Company Award by the GSA for the third consecutive year
MediaTek MT6592, High Performance and Low Power True Octa-
Product Award and R&D Accomplishment A
Mr. Ming-Kai Tsai, Chairman of MediaTek Inc., is honored by Harvard Business Review as one of The Best-Performing CEOs in the
World for second consecutive years, and is the only leader from Taiwan on this list
Awarded 2014 Most Admired Company in Taiwan Top 3 by CommonWealth Magazine
2014 Center and BCG

Published 8 papers in ISSCC, not only ranked no.1 in Taiwan, but also a record high for the semiconductor industry Heterogeneous
Multi-Processing Quad-core CPU and Dual-GPU design for optimal Performance, Power and Thermal tradeoffs in a 28nm Mobile
Application Processor A Digitally Assisted Self-Calibrating NFC SoC with a Triple-Mode Reconfigurable PLL and a Single-Path
PICC-PCD Receiver in 110nm CMOS A 2.4GHz ADPLL with Digital-Regulated Supply Noise Insensitive and Temperature Self-
Compensated Ring DCO A 1.89nW/0.15V self-charged XO for real-time clock generation A Multi-band Inductor-less SAW-less
2G/3G Cellular Receiver in 40nm CMOS A 2.667 Gb/s DDR3 Memory Interface with Asymmetric ODT on Wirebond Package and
Single-Side Mounted PCB A 0.29mm2 Frequency Synthesizer in 40nm CMOS with 0.19ps RMS Jitter and <-100dBc Reference
Spur for 802.11ac Cloud 2.0 Clients and Connectivity 40nm CMOS with 0.19ps RMges
Acquired MStar Semiconductor, Inc. (Cayman)
Once again won Outstanding Asia-

only company in Taiwan in this list
Mr. Ming-Kai Tsai, Chairman & CEO of MediaTek Inc., was named in The Best-Performing CEOs in the World by Harvard
Business Review
Selected as a test bed for the Wi-Fi Alliance's Wi- m
2013 Awarded 2013 Most Admired Company in Taiwan Top 3 by CommonWealth Magazine
Published 6 papers in ISSCC, the most among Taiwan technology companies A Wideband Fractional-N Ring PLL with Fractional
Suppression using Spectrally Shaped Segmentation A 0.27mm2, 13.5dBm, 2.4GHz All-digital Polar Transmitter with 34%-
Efficiency Class-D DPA in 40nm CMOS An AC-Coupled Hybrid Envelope Modulator for HSUPA Transmitters with 80%
Modulator Efficiency A 24.7dBm All-Digital RF Transmitter for Multimode Broadband Applications in 40nm CMOS A
28fj/conv-step CT Modulator with 78dB DR and 18MHz BW in 28nm CMOS Using a Highly Digital Multibit Quantizer A
Universal GNSS (GPS/Galileo/Glonass/Beidou) SoC 10:15 AM with a 0.25mm2 Radio in 40nm CMOS
MediaTek Android smartphone platform included in the Wi-

benchmark platform
Ralink Technology, a wholly owned subsidiary of MediaTek Inc., was selected to be in the Wi-Fi CERTIFIED WMM®-Admission
Control test bed as the benchmark for advanced Wi-Fi performance and interoperability
MT6620, highly Integrated WiFi/BT/FM/GPS 4-in-1 SoC by Science-based Industrial
Park Administration (SIPA)
utstanding Asia- GSA
2012 BCG
2012 Thomson Reuters Taiwan Innovation Awards - Top 5 Corporate Innovators in Taiwan
Awarded 2012 Most Admired Company in Taiwan Top 3 by CommonWealth Magazine
Awarded 2012 INFO TECH TOP 100 in Asia by Business Next magazine
Awarded 6th National Telecom Award 2012
Mr. Ming-Kai Tsai, Chairman & CEO of MediaTek Inc., awarded Academician of Industrial Technology Research Institute (ITRI),
R.O.C."
Mr. Ming-Kai Tsai, Chairman & CEO of MediaTek Best-

Year Milestones
Review
MediaTek papers selected for presentation at 2012 Symposium on VLSI Circuits- the only fabless semiconductor company to have
more than two papers selected for presentation at the 2012 Symposium
Published papers in ISSCC -in-1 (WiFi/BT/FM/GPS) Connectivity SoC with Enhanced Co-Existence Performance in 65nm
, and -Output Single-Inductor DC-DC Buck Converter Delivering 1.2W/mm2 in 65 nm
MT5395, highly-integrated 3D/Internet TV SoC, honored as
ninth continuous years

2011
Published five research papers in the ISSCC -Locked Ring PLL with Self- -
100.5dBm Sensitivity 65nm IP MI -Less GSM/GPRS/EDGE
Front- tive in-

Acquired Ralink Technology Corp.
8 continuous years
- treet Journal
2010
Awarded # -
Awarded 2010 Corporate Social Responsibility Top 65 by Global Views Monthly
-on- R Magazine
Published research papers in the ISSCC
Awarded
2009
Wealth Magazine
Published four research papers in the ISSCC, the most among Taiwan technology companies -Format Blu-ray Player SOC in
90nm CMOS -97.7dBc THD and 80dB DR Using Low-
250Mb/s-to-
GPS SOC with 34mW -
-HD ATSC DTV SoC, by SIPA

Launched Blu-ray DVD player chipset, GSM/GPRS/EDGE handset baseband chip, and next-generation ATSC and DVB-T digital TV
single-chip
2008 Awarde
Published seven research papers in the ISSCC, hit a new record of papers selected by ISSCC for 5 consecutive years among Taiwan
companies, and was the only selected Taiwan company
-Digital PLL with Loop Gain Calibration and Phase Noise Cancellation for
Launched high-performance GPS signal receiver single-chip, first generation Bluetooth chip, and next-generation 120Hz video
processing chip
rbes Asia
2007
Published research paper in the ISSCC -based Clock recovery architecture with all-digital duty-
Method for Overdrive Voltage Circuit Appl

Year Milestones
-ray DVD player chipset, by SIPA

Launched GSM/GPRS/EDGE high-resolution camcorder chipset for mobile phones
2006
Published research paper in the ISSCC -
Launched ATSC and DVB-T high-resolution LCD TV chipset
2005
Published research papers in the ISSCC -Format Read/Write SoC for 7x Blu- -Based Clock
DVD-Recorder Backend single-chip, by SIPA

Launched GSM/GPRS baseband handset chips
2004 Ranked no.3 in the high-
y CommonWealth Magazine
Published one paper at the International Solid-
-read/write (DVD-R/W) optical storage chipset, by SIPA
2003
Launched DVD-Dual chipset
Awarded Top High-Tech Company in Taiwan by
-speed COMBI optical storage chipset by SIPA

2002 Launched 48x CD-R/W chipset
Launched CD/DVD COMBI chipset
-integration DVD-Player chipset by SIPA

2001 Awarded the ninth annual MOEA Award for Industrial Technology Advancement
-speed CD-R/RW chipset by SIPA

2000
Launched 12x DVD-ROM chipset
-ROM chipset by SIPA

1999
Launched 12-x DVD-ROM chipset
-ROM digital data/servo processor by SIPA

1998
Launched the highest performance 48x CD-ROM chipset in the world
1997 Founded on May 28th

1. Organization
1.1. Organization Chart

As of February 28, 2022

1.2. Major Corporate Functions
Department Functions
Wireless Research, design and promote mobile communication chips

Research, design and promote cloud and computing, intelligent connectivity, smart home,
Intelligent Device Platforms
augmented/virtual reality, and intelligent automotive chips
SOC System Architecture Construct and plan competitive and technology-leading chips
Integrate and implement technologies into chips, including wireless communication,
Central Design
computing and artificial intelligence, multimedia, analog, circuit and RF
Develop and design wireless communication core technologies, system, software, wireless
Wireless Technology
communication technologies and communication system
Research and develop high-efficiency computing platforms and artificial intelligence
Computing and AI
technologies
Multimedia Research and develop video and image multimedia technologies
Research and develop analog technologies in wireless communication field, including RF,
Central Engineering audio/video, transmission interface, server and power as well as board design, high-
performance circuit and advanced processor technologies
Corporate Technology Research and develop advanced technologies and manage industry-academia collaboration
Product safety framework planning and introduction, industry standard, protocol setting,
Product Security
training, threat risk model, protocol testing, vulnerability management and audit to enhance.
Platform Technology Develop technologies for advanced process and packaging, establish design platform, and
Development introduce advanced technology products
Corporate Sales Sell products, develop customers, maintain customer relationship and manage sales operation
Corporate Marketing Manage corporate image and promote market position
Pilot run products in development, develop related technologies, manage quality and
Manufacturing Operations reliability, manage customer satisfaction, plan production and procurements, research and
develop advanced process, pilot run high-end products and develop component technologies
Manage human resource, organization development, general affairs, plant administration, and
Human Resources
labor safety
Manage information system architecture, e-commerce strategy, information system
Information Technology
development and operation and information security
Legal & Intellectual Property Manage corporate legal affairs, contracts, patents, and other intellectual property
Manage finance and accounting, tax, treasury and asset, strategic investments and investor
Finance
relations
Corporate Strategy Analyze, plan and execute corporate strategies
Internal Audit Division Manage internal audit, operational procedure and information security

2. Directors
2.1. Information Regarding Board Members

As of February 28, 2022; Unit: shares
Shareholding by
Date Shareholding when Spouse & Minor Current Positions at the
Nationality Gender Date Term Current Shareholding Nominee Selected Education &
Title/Name First Elected Shareholding Company and Other
or Registry Age Elected (Yrs) Arrangement Experiences
Elected Companies
Shares % Shares % Shares % Shares %
- Master, Electrical Engineering,
Chairman Male July 5, May 21, University of Cincinnati, USA - Chairman and Director,
R.O.C 3 41,342,481 2.60% 41,468,498 2.59% 40,399,145 2.53%
Ming-Kai Tsai 71-75 2021 1997 - President of the 2nd Business MediaTek affiliates.
Group, UMC
- Ph.D., Material Science, Cornell - CEO, MediaTek Inc.
Vice Chairman and University, USA
Male July 5, June 15, - Director, Lam Research
CEO R.O.C 3 397,183 0.02% 543,200 0.03% - - - Chairman & CEO, Chunghwa
66-70 2021 2017 Corporation
Lih-Shyng Tsai Telecom Co., Ltd.
- Chairman, MediaTek affiliates.
- President & CEO, TSMC
Director and - Master, Electronics Engineering,
Male July 5, July 5,
President R.O.C 3 425,562 0.03% 526,376 0.03% 30,414 0.00% National Chiao Tung University - President, MediaTek Inc.
51-55 2021 2021
Joe Chen - Engineer, SiS Corp.
- B.S., Chung Yuan Christian
Director Male July 5, June 13,
R.O.C 3 29,244 0.00% 29,244 0.00% - - University of Taiwan None.
Cheng-Yaw Sun 61-65 2021 2012
- Managing Director, HP China
- Independent Director, eMemory
- Ph.D., Nuclear Engineering and
Technology Inc.
Applied Physics, Columbia
- Independent Director, Vanguard
University, USA
International Semiconductor
- Senior VP, Worldwide Sales &
Director Male July 5, June 13, Corp.
R.O.C 3 Services, TSMC
Kenneth Kin 71-75 2021 2012 - Independent Director, Global
- Microelectronics VP of Unichip Corp.
worldwide sales, IBM
- Professor, Department of
- Asian Pacific Operation VP,
Economics, National Tsing Hua
Computer Group, Motorola
University.
- Chairman/CTO, A-Neuron
Electronic Corp.
- Honorary Retired Professor,
- Ph.D., Electronics Engineering,
Independent National Yang Ming Chiao Tung
Male July 5, June 13, National Chiao Tung University
Director R.O.C 3 236,000 0.01% 236,000 0.01% 412,118 0.03% University
71-75 2021 2012 - President, National Chiao Tung
Chung-Yu Wu - Independent Director, Global
University
Unichip Corp.
- Independent Director,
Leadtrend Technology Corp.

Shareholding by
Date Shareholding when Spouse & Minor Current Positions at the
Nationality Gender Date Term Current Shareholding Nominee Selected Education &
Title/Name First Elected Shareholding Company and Other
or Registry Age Elected (Yrs) Arrangement Experiences
Elected Companies
Shares % Shares % Shares % Shares %
- Independent Director,
Powerchip Semiconductor
Manufacturing Co., Ltd.
- Representative of juristic person
director, AMAZING
Microelectronic Corp.
-Representative of juristic person
director, Big Sun Technology
Inc.
- Ph.D., Materials Engineering,
- Chairman, Chi-Kuang Solar
Independent Purdue University
R.O.C / Male July 5, June 13, Energy Corp.
Director 3 - VP, Human Resources, TSMC
U.S.A 66-70 2021 2012 - Chairman, Ruei-Yang Solar
Peng-Heng Chang - Chairman, Motech Industries,
Corp.
Inc.
- Chairman, Ruei-Rih Solar Corp.
- Independent Director, VisEra
Technology Co., Ltd.
- Ph.D., Business Management,
MIT, USA
- Associate Professor with tenure, - President, Chang Gung
University of Illinois at Urbana- University
Champaign - Independent Director, Fubon
- Professor and Chair of Industrial Financial Holding Co., Ltd.
Independent
Male July 5, June 15, and Business Management - Director, VSense Co., Ltd.
Director R.O.C 3
66-70 2021 2017 Department, Chang Gung - Director, Smart-Core Holdings
Ming-Je Tang
University Limited
- Visiting Associate Professor, - Director, VSense Medical Inc.
Hong Kong University of Science - Professor, National Taiwan
and Technology University
- President, National Taiwan
University

2.2. Professional Qualifications and Independence Analysis of Directors
Number of
Companies
Professional
Concurrently
Qualifications and Independence Analysis
Serve as An
Experiences
Independent
Director
Ming-Kai Tsai None
Lih-Shyng Tsai None
Joe Chen Not applicable. None
Cheng-Yaw Sun None
Kenneth Kin 3
As Independent Director in accordance with Article 14-2 of the Securities and Exchange Act and the
Regulations Governing Appointment of Independent Directors and Compliance Matters for Public
Companies (Note), including but not limited to:
1. None of the Dire
-
kinship is a director or a supervisor of the Company or any of its affiliates;
Chung-Yu Wu Information Regarding 3
2. The number of shares of the Company held under the name of the Director and the
Board Members
spouse (or under the names of any other persons) was 648,118 (0.04%), lower than 1%, in
annual report for
accordance with the independence requirement of Independent Director;
professional
3. No remuneration was earned in exchange of providing the commerce, law, finance, and
qualifications and
accounting or related services to the Company or its affiliates in the past two years.
experiences of the Board
members.
- None of the Board
members is under any of
1.
the circumstances in
Peng-Heng Chang kinship is a director or a supervisor of the Company or any of its affiliates; 1
Article 30 of the
2.
Company Act.
the names of any other persons);
1.
Ming-Tze Tang kinship is a director or a supervisor of the Company or any of its affiliates; 2
2.
the names of any other persons);
Note:
1. Not a government agency or a juristic person or its representative regulated in Article 27 of the Company Act.
2. Not concurrently serve as an independent director of more than three other public companies.
3. During the two years before being elected or during the term of office, not have been or be any of the following:
(1) An employee of the company or any of its affiliates.
(2) A director or supervisor of the company or any of its affiliates.
(3) A natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate of one
percent or more of the total number of issued shares of the company or ranking in the top 10 in holdings.
(4) A spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of a managerial officer under subparagraph 1 or any of the persons in the
preceding two subparagraphs.
(5) A director, supervisor, or employee of a corporate shareholder that directly holds 5 percent or more of the total number of issued shares of the company, or that ranks among the top 5
in shareholdings, or that designates its representative to serve as a director or supervisor of the company under Article 27, paragraph 1 or 2 of the Company Act.
(6) If a majority of the company's director seats or voting shares and those of any other company are controlled by the same person: a director, supervisor, or employee of that other
company.
(7) If the chairperson, general manager, or person holding an equivalent position of the company and a person in any of those positions at another company or institution are the same
person or are spouses: a director (or governor), supervisor, or employee of that other company or institution.
(8) A director, supervisor, officer, or shareholder holding 5 percent or more of the shares, of a specified company or institution that has a financial or business relationship with the
company.
(9) A professional individual who, or an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company, or institution that, provides auditing services to the
company or any affiliate of the company, or that provides commercial, legal, financial, accounting or related services to the company or any affiliate of the company for which the
provider in the past 2 years has received cumulative compensation exceeding NT$500,000, or a spouse thereof; provided, this restriction does not apply to a member of the remuneration
committee, public tender offer review committee, or special committee for merger/consolidation and acquisition, who exercises powers pursuant to the Act or to the Business Mergers and
Acquisitions Act or related laws or regulations.

2.3. Diversity and Independence of the Board of Directors
2.3.1. Diversity of the Board of Directors
The Company has a diversification policy for the board of directors. According to this policy, the composition of the
C C
development needs, the selection of members with diversified backgrounds and perspectives includes but it is not limited
to gender, age, nationality, culture, education background, professional background (such as law, accounting, industry,
finance, marketing or technology), professional skills and industry experience, etc.
In addition, the consideration factors for the nomination of board members also include that the director candidates
should have a reputation for integrity, outstanding achievements, experience and reputation in various professional fields,
and promise to invest sufficient tim
ent
directors, their qualifications shall meet the requirements of laws and regulations.
The current board of directors of the Company consists of eight directors, including three independent directors (38%)
and three directors employed by the Company (38%
there is one director aged between 51 and 55, one aged between 61 and 65, three aged between 66 and 70, and three aged
between 71 and 75. Members of the board of directors have relevant professional backgrounds in science and technology,
finance and economics. Their industry experiences cover various fields in the semiconductor industry, including
upstream wafer foundry (including Director Lih-Shyng Tsai, Director Kenneth Kin and Independent Director Peng-Heng
Chang), IC design engaged by the Company (including Director Ming-Kai Tsai, Director Joe Chen, and Independent
Director Chung-Yu Wu), downstream end product applications (Director Cheng-Yaw Sun), and financial (Independent
Director Ming-Tze Tang).
In addition, in order to achieve diversity in the background, experience and expertise of the board of directors for diverse
perspectives, the board of directors of the Company should include at least one director with academic background, at
least one director with accounting or finance expertise, and at least one director with business management experience.
Currently, three of the eight directors have been working in the academic community for a long time (including Professor
Chung-Yu Wu of NYCU, Professor Ming-Je Tang of CGU and Professor Kenneth Kin of NTHU), five directors have
finance experience (including Director Ming-Kai Tsai, Director Lih-Shyng Tsai, Director Joe Chen, Independent
Director Peng-Heng Chang and Independent Director Ming-Tze Tang), and six directors have business management
experience (including Director Ming-Kai Tsai, Director Lih-Shyng Tsai, Director Joe Chen, Director Cheng-Yaw Sun,
Director Kenneth Kin and Independent Director Peng-Heng Chang). The Company has reached the goal of constructing a
board of diversity. The industry experience and diversity performance of the Company are as following:
Experience in industry/academia Professional Competency

Global Business
(Finance/Solar)
Semiconductor
End Consumer
Management
Management
Development
Biomedicine
Accounting/
Technology
Marketing/
Experience
Employed by the Aged

Academia
Resource
Products
Business
Finance
Name
Human
Others
Company between
Risk
Ming-Kai Tsai V 71-75 V V V V V V
Lih-Shyng Tsai V 66-70 V V V V V V V V
Joe Chen V 51-55 V V V V V V V
Cheng-Yaw Sun 61-65 V V V V V
Kenneth Kin 71-75 V V V V V V V V
Chung-Yu Wu 71-75 V V V V V
Peng-Heng Chang 66-70 V V V V V V
Ming-Tze Tang 66-70 V V V V V V

2.3.2. Independence of the Board of Directors
38%, 5% higher than 33% from the last term. None of the board members is under any of the circumstances in Article
26-3, paragraph 3 & 4 of the Securities and Exchange Act (listed below). The independent directors attended all the
board meetings during this term (attendance rate for independent directors was 100%). On the meetings, all directors
continued to raise structural questions to the management and other directors with distinctive perspectives. The Company
deemed the board of directors of this term as independent given aforementioned contention.
(1) Directors are spouses of or are relatives within the second degree of kinship: None;
(2) The chairman and the president or person of an equivalent post (the highest-level manager) of the Company are the
same person, spouses, or relatives within the first degree of kinship: None.

2.4. Remunerations Paid to Directors
2.4.1. Remunerations Paid to Directors (Note1) Unit: NT$ thousands
Compensation Earned as Employee of the Company

Remunerations Paid to Directors
(A+B+C+D+E+F
(A+B+C+D) as
+G) as % of Net
% of Net Income
Remunerations Salary, Bonus, Pension (F) Income (Note3)
Salary (A) Pension (B) Allowances (D) Employee Compensation (G) Other
(C) etc. (E) (Note2) compensati
Title ons from
Name Consolidated non-
The Company
Entities subsidiary
affiliates
Entities
Entities
Entities
Entities
Entities
Entities
Entities
Entities
Consolidated
Consolidated
Consolidated
Consolidated
Consolidated
Consolidated
Consolidated
Consolidated
The Company
The Company
The Company
The Company
The Company
The Company
The Company
The Company
Cash
Cash
Stock
Stock
Chairman - - - - 18,025 18,025 - -

Ming-Kai Tsai
Vice Chairman & CEO - - - - 18,025 18,025 - -
Lih-Shyng Tsai
Vice Chairman (former) - - - - 9,013 9,013 - -
Ching-Jiang Hsieh
Director & President - - - - 9,013 9,013 - -
Joe Chen
Director 3,000 3,000 - - 18,025 18,025 15 15
Cheng-Yaw Sun
Director 3,000 3,000 - - 18,025 18,025 90 90
0.15%
0.15%
172,149
172,149
Kenneth Kin
Director (former) - - - - 9,013 9,013 - -
Gon-Wei Liang
Independent Director 4,000 4,000 - - 18,025 18,025 120 120
Chung-Yu Wu
Peng-Heng Chang
Ming-Tze Tang
Other than disclosure in the above table, Directors remunerations earned by providing services (i.e. non-employee consulting services to MediaTek/all companies listed in the financial reports/invested companies): Kenneth Kin earned NT$3,000 thousand during 2021 for
consulting service.
Note1: The remunerations and . The compensations are determined in accordance with
§24, the Company shall allocate at a maximum of 0.5% of the profit as remuneration to Directors as compensations to directors for the year. The rule states the
rector to the Company, including the level of involvement, actual time after appointment and individual performance (including
the contribution to the improvement of the quality of decision-making, the degree of individual professional advancement, etc.). The compensations are reviewed regularly in Remuneration Committee and the Board meetings. Related performance and the plausibility of
compensations are both approved by Remuneration Committee and the Board meetings and the remuneration system is reviewed in a timely manner depending on the actual operating conditions and relevant laws and regulations to reach a balance between the company's
sustainable operation and risk control.Note2: Pensions funded/paid according to applicable law.
Note3: Remunerations of the Company and its consolidated entities paid to Directors and a not full-time employees in 2020, including their employee compensation, totaled NT$416,100 thousand and NT$419,882 thousand, which was 1.01% and 1.02% of 2020 net profit.
Note4: Mr. Ching-Jiang Hsieh and Mr. Gon-Wei Liang stepped down on July 5, 2021; the new appointment of Mr. Joe Chen took effect on July 5, 2021.

2.4.2. Remunerations Paid to Directors
Compensation Paid to Directors Total Compensation Paid to Directors
(A+B+C+D) (A+B+C+D+E+F+G)
The Company Consolidated Entities The Company Consolidated Entities
Less than NT$1 million - - - -
NT$1 million ~ $2 million - - - -
NT$2 million ~ $3.5 million - - - -
NT$3.5 million ~ $5 million - - - -
NT$5 million ~ $10 million Ching-Jiang Hsieh, Joe Chen, Gon-Wei Liang Gon-Wei Liang

Ming-Kai Tsai, Lih-Shyng Tsai, Cheng-Yaw Sun, Kenneth Kin, Cheng-Yaw Sun, Kenneth Kin, Chung-Yu Wu, Peng-Heng
NT$15 million ~ $30 million
Chung-Yu Wu, Peng-Heng Chang, Ming-Tze Tang Chang, Ming-Tze Tang
NT$50 million ~ $100 million - - Ching-Jiang Hsieh
Above NT$100 million - - Ming-Kai Tsai, Lih-Shyng Tsai, Joe Chen
Total 10 10

3. Management Team
3.1. Profiles of Key Managers

Shareholding by Managers who are Spouses
Current Spouse & Minor
Nation Date Nominee Selected Education & Current Positions at or Within Two Degrees of
Title/Name Gender Shareholding Shareholding
ality Effective Arrangement Past Positions Other Companies Kinship
Shares % Shares % Shares % Title Name Relation

- Master, Electrical Engineering, University
Chairman May 21, - Chairman & Director,
R.O.C. Male 41,468,498 2.59% 40,399,145 2.53% - - of Cincinnati, USA None
Ming-Kai Tsai 1997
- President of the 2nd Business Group, UMC
- Ph.D., Materials Science and Engineering,
- Director, Lam Research
Cornell University
Vice Chairman & CEO Jun. 1, Corporation
R.O.C. Male 543,200 0.03% - - - - - Chairman & CEO, Chunghwa Telecom Co. None
Lih-Shyng Tsai 2017 -
Ltd.
affiliates
- President & CEO, TSMC
- Master, Electronics Engineering, National
President Jul. 1,
R.O.C. Male 526,376 0.03% 30,414 0.00% - - Chiao Tung University None None
Joe Chen 2012
- Engineer, SiS Corp.
- MBA, University of Illinois at Urbana
Executive Vice President - Chairman / Director,
Jan. 1, Champaign
& CFO & Spokesman R.O.C. Male 314,788 0.02% - - - - None
2011 - Vice President of JPMorgan Investment
David Ku invested companies
bank
Executive Vice President Apr. 7, -
R.O.C. Male 874,698 0.05% 201,077 0.01% - - Chiao Tung University None
Cheng-Te Chuang 2009 affiliates
- Engineer, UMC
Executive Vice President - Ph.D, Electrical Engineering, University of
May 30, -
& CTO R.O.C. Male - - - - - - Southern California None
2011 affiliates
Kevin Jou - Vice President, Qualcomm Inc.
- Ph.D., Electrical Engineering, Texas A&M
Senior Vice President Jul. 1, -
R.O.C. Male - - - - - - University None
Kou-Hung Loh 2006 affiliates
- CEO and founder of Silicon Bridge
-Master, Electrical Engineering, National
Senior Vice President Feb. 16, -
R.O.C. Male 199,752 0.01% - - - - Taiwan University None
Jerry Yu 2015 affiliates
-Technical Director, Afreey Inc.
- Bachelor, Electrical Engineering, National
Senior Vice President Jun. 1,
R.O.C. Male 152,018 0.01% - - - - Tsing Hua University None None
Jasper Yang 2016
- Shanghai Chief Representative, UMC
- Master, Mechanical Engineering, National
Senior Vice President Dec. 1,
R.O.C. Male 454,634 0.03% 13,910 0.00% - - Taiwan University None None
SR Tsai 2017
- Section Chief, KTC

Shareholding by Managers who are Spouses
Current Spouse & Minor
Nation Date Nominee Selected Education & Current Positions at or Within Two Degrees of
Title/Name Gender Shareholding Shareholding
ality Effective Arrangement Past Positions Other Companies Kinship
Shares % Shares % Shares % Title Name Relation

- Master, Communications Engineering,
Vice President Aug. 1,
R.O.C. Male 164,137 0.01% - - - - National Chiao Tung University None None
Rolly Chang 2015
- Technical Specialist, NCSIST
Vice President Aug. 1, - Ph.D., Power Mechanical Engineering, -
R.O.C. Male 173,499 0.01% - - - - None
JC Hsu 2015 National Tsing Hua University invested companies
- Master, Industrial Relations and HRM,
Vice President & CHRO Jun. 1,
R.O.C. Female 174,798 0.01% - - - - Rutgers University None None
Sherry Lin 2016
- HR Director, TSMC
Vice President & General
Nov. 1, - SJD, University of Wisconsin Law School
Counsel R.O.C. Male 144,293 0.01% - - - - None None
2016 - Senior Program Director, TSMC
David Su
Vice President Dec. 1,
R.O.C. Male 142,626 0.01% - - - - Chiao Tung University None None
HW Kao 2017
- Section Manager, ITRI
- PhD., Electrical Engineering, National
Vice President Jan. 1, Tsing Hua University
R.O.C. Male 133,104 0.01% - - - - None None
Mike Chang 2019 - Executive Vice President of MStar
Semiconductor, Inc.
MBA, Marketing and Entrepreneurship,
Vice President Aug. 3, Anderson School of Business, UCLA
U.S.A. Male - - - - - - None None
Vincent Yung Mien Hu 2020 - Master, Electrical Engineering, USC
- Vice President, Intel Corp.
Vice President Nov 1, Chiao Tung University
R.O.C Male 438,003 0.03% 4,404 0.00% 10,000 0.00% None None
Ching San Wu 2020 - Project Manager, Macronix International
CO., LTD.
- Master, Control Engineering, National
Vice President Nov 1, Chiao Tung University
R.O.C. Male 70,927 0.00% 2,022 0.00% - - None None
Alan Hsu 2020 - Senior Engineer, Phoenixtec Power CO.,
LTD.

3.2. Remunerations and Employee Bonus Paid to Key Managers (Note1)
Unit: NT$ thousands
Pension (B) (A+B+C+D) as % of Net Income
Salary (A) Bonus (C) Employee Compensation (D)
(Note2) (Note3)
Remuneration
The Company Consolidated Entities from non-
Name / Title
subsidiary
affiliates
Entities
Entities
Entities
Entities
Cash Stock Cash Stock
Consolidated
Consolidated
Consolidated
Consolidated
The Company
The Company
The Company
The Company
Chairman Ming-Kai Tsai
Vice Chairman & CEO Lih-Shyng Tsai
Vice Chairman (former) Ching-Jiang Hsieh
President Joe Chen
Executive Vice President & CFO & Spokesman David Ku
Executive Vice President Cheng-Te Chuang
Executive Vice President & CTO Kevin Jou
Senior Vice President Kou-Hung Loh
Senior Vice President Jerry Yu
Senior Vice President Jasper Yang

-
2,697
3,130
1.97%
2.10%
80,850
87,972
Senior Vice President SR Tsai
2,115,993
2,254,945
2,199,540
2,346,047
Vice President Rolly Chang
Vice President JC Hsu
Vice President & CHRO Sherry Lin
Vice President & General Counsel David Su
Vice President HW Kao
Vice President Mike Chang
Vice President Vincent Yung Mien Hu
Vice President Ching San Wu
Vice President Alan Hsu

Note1: According to §24, if the company makes a profit during the year, no less than 1% shall be allocated for employee remuneration. g
performance, according to the positions of the executives, contribution to the company's operations (including the practice of the company's core values and leadership management capabilities, financial and comprehensive operation management indicators, etc.),
individual performance, and consideration of the company's future risks and reference to the industry's payment, the remuneration of the company's executives is evaluated by the remuneration committee for its plausibility, and submitted to the board of directors
waiting for resolution. The system, standard, and structure of the remuneration are reviewed anytime under the actual operating situation and related laws to
Note2: Pensions funded/paid according to applicable law.
Note3: Remunerations and bonus of the Company and the entities mentioned in the financial statement are paid to key managers in 2020 were NT$1,313,588 thousand and NT$1,476,646 thousand respectively which were 3.21% and 3.61% of 2020 net income, respectively.
Note4: Mr. Ching-Jiang Hsieh stepped down on July 5, 2021.

3.3. Key Managers Remunerations Scale
Compensation Paid to Key Managers
Remuneration scale for individual key managers
The Company Consolidated Entities
Less than NT$1 million - -
NT$2 million ~ $3.5 million
NT$3.5 million ~ $5 million - -
NT$5 million ~ $10 million - -
NT$30 million ~ $50 million Ching-Jiang Hsieh

Kuo-Hung Loh, Rolly Chang, JC Hsu, Sherry Lin, David Su, HW Kao, Mike Chang,
Ching-San Wu, Alan Hsu
Ming-Kai Tsai, Lih-Shyng Tsai, Joe Chen, David Ku, Cheng-Te Chuang, Kevin Jou, Jerry
Above NT$100 million
Yu, Jasper Yang, SR Tsai, Vincent Yung Mien Hu
Total 20
3.4. Employee Compensation Paid to Key Managers:

None.

4. Corporate Governance Report
4.1. Operation of the Board
Directors in Annual General Meeting on June 15, 2018,

effective immediately (from June 15, 2018 to July 5, 2021). The 8th Board of Directors held 4 sessions in 2021.
The attendance of the Directors is shown in the following table:
Title/Name Attendance in Person By Proxy Attendance Rate in Person (%) Note
Chairman: Ming-Kai Tsai 4 0 100% None
Vice Chairman: Ching-Jiang Hsieh 4 0 100% None
Director & CEO: Lih-Shyng Tsai 4 0 100% None
Director: Cheng-Yaw Sun 4 0 100% None
Director: Kenneth Kin 4 0 100% None
Director: Gon-Wei Liang 4 0 100% None
Independent Director: Chung-Yu Wu 4 0 100% None
Independent Director: Peng-Heng Chang 4 0 100% None

Independent Director: Ming-Tze Tang 4 0 100% None
9th Board of Directors in Annual General Meeting on July 5, 2021,

effective immediately (from July 5, 2021 to July 4, 2024). The 9th Board of Directors held 5 sessions in 2021.
The attendance of the Directors is shown in the following table:
Title/Name Attendance in Person By Proxy Attendance Rate in Person (%) Note
Chairman: Ming-Kai Tsai 5 0 100% None
Vice Chairman & CEO: Lih-Shyng Tsai 5 0 100% None
Director & President: Joe Chen 5 0 100% None
Director: Cheng-Yaw Sun 5 0 100% None
Director: Kenneth Kin 4 1 80% None
Independent Director: Chung-Yu Wu 5 0 100% None
Independent Director: Peng-Heng Chang 5 0 100% None
Independent Director: Ming-Tze Tang 5 0 100% None
4.1.2 Other Required Notes for the Board Meetings:

A. Items listed in Article 14-3 of the Securities and Exchange Act or board resolutions independent directors
have dissenting opinions or qualified opinions recorded or noted in writing in the board meeting minutes:
a. Items listed in Article 14-3: The Company has established an audit committee, and the provisions of
Article 14-
for related information.
b. Written or otherwise recorded resolutions on which an independent director had a dissenting opinion or
qualified opinion: None.
B. Execution status for Article 206 of the Company Act regarding matters bearing on the personal interests of
directors: T themselves when there were conflicts of interests.
a. Establishment of Remuneration Committee, Audit Committee and M&A Strategy Committee: the
Company established the Remuneration Committee on August 24, 2011, elected independent directors
and established the Audit Committee in 2015 AGM, and set up M&A Strategy Committee in 2020 to

b. Corporate governance operations enhancement: T
le
-
The Board passed the amendment elf-

external performance evaluation mechanism on October 26, 2021.
4.1.3 Evaluation of the Implementation of the Board of Directors:
Evaluation Cycle Evaluation Period Evaluation Range Evaluation Method Evaluation Content
The company's performance

measures for the board of directors,
individual directors and functional
committees include at least the
following items:
1. Performance evaluation of the
board of directors: participation in the
company's operations, increase of
decision-making quality of the board
of directors, composition and
structure of the board of directors,
election and continuous education of
directors, and internal control.
The company's board of
2. Performance evaluation of
directors performs an Use internal questionnaires
Performance evaluation of the individual director members: mastery
annual performance to conduct self-evaluation
board of directors, individual of company goals and tasks,
evaluation of the board of Jan 1, 2021 to Dec 31, 2021 of the board of directors
directors and functional awareness of directors'
directors, individual and self-evaluation of
committees responsibilities, participation in
directors and functional directors.
company operations, internal
committees
relationship management and
communication, directors' profession
and continuous education, and
internal control.
3. Performance measures of
functional committees: participation
in the company's operations,
awareness of the responsibilities of
functional committees, decision-
making quality of functional
committees, composition of
functional committees and election of
members, internal control.

4.2. Operation of Audit Committee
The audit committee of the Company consists of three independent directors to supervise the adequate presentation cy
of the company's financial statements, the selection and discharge of the CPA, the independence and performance, the
effective implementation of the Company's internal control, the Company's compliance with relevant laws and
regulations, and the control mechanism for existing or potential risk.
4.2.1 Responsibilities of Audit Committee

The matters discussed in the Audit Committee mainly include:
A. Establish or amend internal control systems
B. Assessment of the effectiveness of the internal control system
C. Operating procedures for obtaining or disposing of assets, engaging in derivative transactions, outward loans to
others, endorsement and guarantee to others
E. Significant assets or derivatives transactions

F. Significant outward loans to others, endorsement and guarantee to others
G. Transaction of public offering, issuance or private placement of equity-type securities
H. Appointment, discharge or remuneration of CPA
I. Appointment and discharge of finance, accounting or internal audit supervisor
J. The annual financial report signed or sealed by the chairman, manager and accountant, and the second quarter
financial report subject to the audit check by the accountant.
Review annual financial report:

The Board of Directors prepared the Company's 2021 annual business report, financial statements and proposal for
profit distribution. The financial statements have been audited and certified by Ernst & Young Taiwan. The
aforementioned business report, financial statements and proposal for profit distribution have been audited by the
Audit Committee and no disagreement has been found.
Assessment of the effectiveness of the internal control system:

The Audit Committee evaluates the effectiveness of the Company's internal control system policies and procedures
(including sales, procurement, production, personnel, finance, information security, compliance and other control
measures), and oversees the internal audit unit operations and review internal control self-assessment result. The
Audit Committee considered the company's internal control system to be effective.
4.2.2 Audit Committee Meeting

The Audit Committee held 7 sessions in 2021. The attendance of the independent directors is shown in the
following table:
Attendance in Attendance Rate in
Title/Name By Proxy Note
Person Person (%)
Independent Director: Chung-Yu Wu Re-elected in the Annual General
7 0 100%
(Convener) Meeting on July 5, 2021
Independent Director: Peng-Heng Chang 7 0 100% As above
Independent Director: Ming-Tze Tang 7 0 100% As above

4.2.3 Other Required Notes for Audit Committee Meeting
A. Any items listed in Article 14-5 of the Securities and Exchange Act, or any resolution not approved by the
Audit Committee but approved by two thirds or more of all directors instead:
a. Items listed in Article 14-5
Any Independent Director
Date Meeting Resolution Having a Dissenting Opinion
or Qualified Opinion
The 16th meeting of Lifting non-competition restriction on managers
Jan 26, 2021
the 2nd Committee Appointment of consultant
Issuance of restricted stock award
2020 business operating report
The 17th meeting of
Mar 18, 2021 20 financial statements
the 2nd Committee
Capital increase of subsidiary MediaTek Investment Singapore Pte. Ltd.
20 internal control statement and self-assessment report Members in the Audit
Committee passed all
The 18th meeting of Acquisition of property
Apr 27, 2021 resolutions unanimously. The
the 2nd Committee Matter of 2020 profit distribution
Board of Directors approved all
The 19th meeting of
Jun 18, 2021 Acquisition of major information equipment resolutions in accordance with
the 2nd Committee
the suggestion of the Audit
The 1st meeting of
Jul 26, 2021 Matter of organization adjustment Committee.
the 3rd Committee
2021 CPA compensation
The 2nd meeting of
Oct 25, 2021 Capital increase of subsidiaries
the 3rd Committee
Disposal of assets and capital increase of subsidiaries
The 3rd meeting of Acquisition of property of Chang Yih Science and Industrial Park
Dec 24, 2021
the 3rd Committee Participation in tender for the development of THSR Hsinchu station special district (2)
b. Other resolution which was not approved by the Audit Committee but was approved by two thirds or
more of all directors: None.
B. Any recusal of Independent Directors due to conflicts of interests: None.
C. Communications of independent directors with internal auditors and CPAs:

a. Internal auditors present the execution and improvement of audit plan to independent directors at least 4
times per annum in the Audit Committee meetings. Internal auditors also report important audit business
to independent directors individually in the quarterly meetings, and communicated and exchanged ideas
to assess the internal control effectiveness.
b. The CPAs report at least twice per annum in the Audit Committee meetings and at least once per annum
to independent directors individually on reports and fully discuss
with independent directors on the issues related to financials, taxes, internal control, etc.

4.3. Corporate Governance Implementation as Required by the Taiwan Financial Supervisory Commission
Implementation Status Reason for Non-
Assessment Item
Yes No Summary Description implementation
1. Does the company establish and disclose the Corporate The Company has established, via Board resolution, corporate governance best-practice principles. Under these principles, the None
Governance Best- Company has established a comprehensive corporate internal governance framework, and fairly treats shareholders while
Governance Best-Practice Principles for TWSE/ Listed protecting their rights.
(1) Does the company establish an internal operating procedure The Company has designated relevant departments, such as Investor Relations, Public Relations, Legal, etc. to handle None
litigations, and implement them according to the procedure?

(2) Does the company keep track of the list of its major None
shareholders as well as the ultimate owners of those shares? outstanding shares.
(3) Does the company establish and execute the risk When designing the structure of its subsidiaries, the Company has implemented a firewall mechanism. The Company and its None
management and firewall system within its conglomerate subsidiaries have established appropriate internal control systems.
structure?
(4) Does the company establish internal rules against insiders None
trading with undisclosed information? nonpublic information. Violators are subject to punishment, investigation, and legal liability.
3. Composition and Responsibilities of the Board of Directors
(1). Does the Board develop and implement a diversification The Company has a None
policy for the composition of its members?
selection of members with diversified backgrounds and perspectives includes but it is not limited to gender, age, nationality,
culture, education background, professional background (such as law, accounting, industry, finance, marketing or technology),
professional skills and industry experience, etc.
In addition, the consideration factors for the nomination of board members also include that the director candidates should have a
reputation for integrity, outstanding achievements, experience and reputation in various professional fields, and promise to invest
, their qualifications shall

meet the requirements of laws and regulations.
The current board of directors of the Company consists of eight directors, including three independent directors (38%). All
ctors, there is one director aged between 51 and 55, one aged between 61
and 65, three aged between 66 and 70, and three aged between 71 and 75. Members of the board of directors have relevant
professional backgrounds in science and technology, finance and economics. Their industry experiences cover various fields in
the semiconductor industry, including upstream (including Director Lih-Shyng Tsai, Director Kenneth Kin and Independent
Director Peng-Heng Chang), IC design engaged by the Company (including Director Ming-Kai Tsai, Director Joe Chen, and
Independent Director Chung-Yu Wu), downstream end product applications (Director Cheng-Yaw Sun), and financial
(Independent Director Ming-Tze Tang).
In addition, in order to achieve diversity in the background, experience and expertise of the board of directors for diverse
perspectives, the board of directors of the Company should include at least one director with academic background, at least one
director with accounting or finance expertise, and at least one director with business management experience. Currently, three of
the eight directors have been working in the academic community for a long time (including Professor Chung-Yu Wu of NYCU,
Professor Ming-Je Tang of CGU and Professor Kenneth Kin of NTHU), five directors have finance experience (including Director

Assessment Item
Ming-Kai Tsai, Director Lih-Shyng Tsai, Director Joe Chen, Independent Director Peng-Heng Chang and Independent Director
Ming-Tze Tang), and six directors have business management experience (including Director Ming-Kai Tsai, Director Lih-Shyng
Tsai, Director Joe Chen, Director Cheng-Yaw Sun, Director Kenneth Kin and Independent Director Peng-Heng Chang). The
Company has reached the goal of constructing a board of diversity.
(2). Does the company voluntarily establish other functional None
committees in addition to the Remuneration Committee and Committee), which holds committee meetings semiannually to ensure that the process and direction of execution plan can meet
the Audit Committee? the expectation of the Board and society. In 2020, the board of directors of the Company resolved to establish an M&A Strategy
Committee, whic
directors. Currently the directors are Ming-Kai Tsai (with expertise in management and strategic planning), Ming-Tze Tang
(with expertise in business/finance and strategic planning), and Peng-Heng Chang (with expertise in business management and
organization planning). The committee has held a meeting in 2021, in accordance with the organizational articles. All members
of the committee attended the meeting with attendance rate of 100%.
(3). Does the company establish a standard to measure the - Directors annually assess the None
performance of the Board, and implement it annually?
Directors Self- mechanism,
including conducting external performance evaluation on the Board of Directors at least once per annum, and the criteria for
external evaluation units.
-assessment covers the following
four major areas or other items required or adjusted by law:
1. Performance measures of the board of directors: participation in the company's operations, increase of decision-making quality
of the board of directors, composition and structure of the board of directors, selection and continuous education of directors, and
internal control.
2. Performance measures of individual director members: mastery of company goals and tasks, awareness of directors'
responsibilities, participation in company operations, internal relationship management and communication, directors' profession
and continuous education, and internal control.
3. Performance evaluation of functional committees: participation in the company's operations, awareness of the responsibilities
of functional committees, decision-making quality of functional committees, composition of functional committees and selection
of members, internal control.
The performance measures indicators of the board of directors shall be based on the company's operations and needs to
nnual
performance evaluation is presented on the Board Meeting in the first quarter of the next year. The result is used as the reference
basis for determining the individual salary and remuneration of directors and members of functional committees. Improvements
can be made in areas that should be strengthened.
According to the most recent (2021) Board performance evaluation (including the evaluation on the overall Board of Directors,
respective functional committees, and individual directors):
The performance evaluation this year used internal questionnaires to conduct self-evaluation of the Board of Directors and self-
nts
is excellent; >4 and <4.3 is good; >3 and <4 is acceptable; <3 is improvement required).
Detailed information regarding the above evaluation were reported to the Board at the Board Meeting of January 27th, 2022. The
Company will continue to review the relevant performance measures to improve its performance.
(4). Does the company regularly evaluate the independence of At least once a year, the Company evaluates the independence and suitability of its CPA. The Company also evaluates the None
CPAs? accounting firm with regard to its financial interests, funding and guarantees, commercial relations, family and personal
relations, employment relations, gifts and special offers rotation of CPAs, and non-audit services, and obtains a statement of

Assessment Item
independence issued by the accounting firm. The results of the most recent evaluations in the last two years were reported to the
Board on Mar. 19, 2021 and Feb. 25, 2022.
4. Does the company established an exclusively (or None
concurrently) corporate governance unit or personnel to be in the Legal & Intellectual Property Department under the General Counsel as the department responsible in March 22, 2019 for
charge of corporate governance affairs (including but not ral
limited to furnish information required for business execution Counsel is an officer of the Company and a qualified attorney with over 3 years of experience in managing legal matters of a
by directors, handle matters relating to board meetings and publicly traded company. Primary duties are to handle related matters according to law and make meeting minutes for board of
director meetings and shareholder meetings, assist in the matters of director appointment and profession enhancement, provide
registration and amendment registration, produce minutes of directors with related information required in conducting business, and assist directors in compliance with laws. Please refer to
board meetings and shareholders meetings, etc.)? - 4.8.3 Supervisor for Corporate Governance Pr
enhancement of the supervisor of corporate governance (page 45).
Implementation in 2021:
1. Conducted matters relating to Board Meetings and Shareholder Meetings
2. Recorded minutes of Board Meetings and Shareholder Meetings
3. Assisted in the matters of director appointment and profession enhancement
4. Provided directors with related information required in conducting business
5. Assist directors in compliance with laws
6. Handle matters relating to company registration and change of company registration
-
5. Does the company establish a communication channel and The Company has established a Corporate Sustainability section with contact information of responsible person on the Company None
build a designated section on its website for stakeholders website. The Company has also established a Stakeholder section to timely respond issues which stakeholders care about.
(including but not limited to shareholders, employees,
customers, suppliers, etc.), as well as handle all the issues they
care for in terms of corporate social responsibilities?
6. Does the company appoint a professional shareholder service None
agency to deal with shareholder affairs?
7. Information Disclosure
(1). Does the company have a corporate website to disclose both The Company discloses financial information and corporate governance items on its company website: None
financial standings and the status of corporate governance? http://www.mediatek.com
(2). Does the company have other information disclosure 1. The Company has designated appropriate persons to handle information collection and disclosure. None
channels (e.g. building an English website, appointing Contact person: Jessie Wang, TEL: +886-(0)3-567-0766 ext.23447 / email: [email protected]
designated people to handle information collection and 2. The Company has established a Spokesperson policy. Spokesman: David Ku; Acting Spokesperson: Jessie Wang.
disclosure, creating a spokesman system, webcasting investor 3. The Company provides investor conferences webcasts and presentation materials on its website in a timely manner.
conferences)? 4. The Company discloses real-time information to shareholders and stakeholders on both Company website and MOPS website.
(3). Does the company announce and report the annual The company announced and reported the annual financial statements within two months after the end of the fiscal year, and As explained in
financial statements within two months after the end of the announced and reported quarterly financial statements as well as the operating status of each month before the prescribed summary description.
fiscal year, and announce and report the first, second, and deadline.
third quarter financial statements as well as the operating
status of each month before the prescribed deadline?

Assessment Item
8. Is there any other important information to facilitate a 1. The Company discloses its financial statements and corporate governance information on its Chinese and English websites None
(http://www.mediatek.com). The Company aims to provide free access to transparent information for employees, investors,
practices (e.g., including but not limited to employee rights, suppliers and stakeholders.
employee wellness, investor relations, supplier relations, rights
require the attention of Directors. The executive team of the Company also reports to the Board periodically. Director training
the implementation of risk management policies and risk records can be found on the MOPS website.
evaluation measures, the implementation of customer relations 3. The Company has already instituted internal control systems as required by law and has properly implemented the system. The
policies, and purchasing insurance for directors and Company also conducts risk assessments on banks, customers, and suppliers in order to reduce credit risks.
supervisors)? 4. All Directors of the Company avoid issues when there are conflicts of interests.
5. The Company maintains D&O insurance for its Directors and key officers.
6. In the succession planning of important management, MediaTek emphasizes that successors should have excellent corporate
strategy planning and operational capabilities, and focus on their core values (integrity, customer focus, innovation, conviction
inspired by deep thinking, inclusiveness, and constant renewal). The candidates of the board of directors of the Company and the
manager of the important management team will go through systematic trainings such as building experience in subsidiaries,
rotating between business units to deepen professional abilities and personal development plans, enhancing the depth and
broadness in their decision-making process and operation, to be ready for the succession.
9. The improvement status for the result of Corporate Governance Evaluation announced by Taiwan Stock Exchange
- cy, and relevant information is disclosed in the Annual Report.
- -
In addition, to fortify intellectual property management, besides establishing intellectual property management plans linked to operation objectives
Property Management System (TIPS)

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.
on August 24, 2011. According to related

regulations of the Securities and Futures Bureau, Financial Supervisory Commission, the professional
qualification and independence criteria of Remuneration C
Number of
Companies
Professional Qualifications and Concurrently
Independence Analysis
Experiences Serve as An
Independent
Director
In accordance with Article 14-6 of the Securities and Exchange Act and the
Regulations Governing the Appointment and Exercise of Powers by the
Remuneration Committee of a Company Whose Stock is Listed on the Taiwan
Stock Exchange or the Taipei Exchange, including but not limited to:
Independent 1.
Director second degree of kinship is a director or a supervisor of the Company or any of its
1
(Convener) affiliates;
Peng-Heng Chang 2.
spouse (or under the names of any other persons);
3. No remuneration was earned in exchange of providing the commerce, law,
- Information
finance, and accounting or related services to the Company or its affiliates in the
Regarding Board Members
past two years.
report for professional qualifications and
experiences of the Board members.
- None of the Board members is under
any of the circumstances in Article 30 of
the Company Act.
1. None
second degree of kinship is a director or a supervisor of the Company or any of its
Independent
affiliates;
Director 3
2. The number of shares of the Company held under the name of the Director and
Chung-Yu Wu th
(0.04%), lower than 1%, in accordance with the independence requirement of
Independent Director;
3. No remuneration was earned in exchange of providing the commerce, law,
finance, and accounting or related services to the Company or its affiliates in the
past two years.
- Possessing corporate management
experience and having been working in
the academic community for a long time.
Currently retired and as an honorary
1. None of the Director, the D
professor of NTU and the Vice chairman
second degree of kinship is a director or a supervisor of the Company or any of its
of Cheng Zhi Foundation
affiliates;
- Previous positions including Assistant
2. The number of shares of the Company held under the name of the Director and
Other Dean of College of Management and
under the names of any other persons) was 5,000 3
Ji-Ren Lee CEO of EMBA in NTU, Assistant Dean
(0.0003%), lower than 1%, in accordance with the independence requirement of
of Teaching and Resource Development
Independent Director;
of College of Management in NTU,
3. A professional individual who, or an owner, partner, director, supervisor, or
Professor of Department of International
officer of a sole proprietorship, partnership, company, or institution that, provides
Business in NTU and Director of Taidah
commercial, legal, financial, accounting or related services to the Company or any
Entrepreneurship Center
affiliate of the Company for which the provider in the past 2 years has received
- Not under any of the circumstances in
cumulative compensation of NT$310,000, not exceeding NT$500,000, in
Article 30 of the Company Act.
accordance with the independence requirement, or a spouse thereof.
Note: During the two years before being elected or during the term of office, not have been or be any of the following:
(1) An employee of the company or any of its affiliates.
(2) A director or supervisor of the company or any of its affiliates.
(3) A natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an
aggregate of one percent or more of the total number of issued shares of the company or ranking in the top 10 in holdings.
(4) A spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of a managerial officer under subparagraph 1 or any of the
persons in the preceding two subparagraphs.

(5) A director, supervisor, or employee of a corporate shareholder that directly holds 5 percent or more of the total number of issued shares of the company, or that ranks
among the top 5 in shareholdings, or that designates its representative to serve as a director or supervisor of the company under Article 27, paragraph 1 or 2 of the Company
Act.
(6) If a majority of the company's director seats or voting shares and those of any other company are controlled by the same person: a director, supervisor, or employee of
that other company.
(7) If the chairperson, general manager, or person holding an equivalent position of the company and a person in any of those positions at another company or institution are
the same person or are spouses: a director (or governor), supervisor, or employee of that other company or institution.
(8) A director, supervisor, officer, or shareholder holding 5 percent or more of the shares, of a specified company or institution that has a financial or business relationship
with the company.
(9) A professional individual who, or an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company, or institution that, provides auditing
services to the company or any affiliate of the company, or that provides commercial, legal, financial, accounting or related services to the company or any affiliate of the
company for which the provider in the past 2 years has received cumulative compensation exceeding NT$500,000, or a spouse thereof; provided, this restriction does not
apply to a member of the remuneration committee, public tender offer review committee, or special committee for merger/consolidation and acquisition, who exercises
powers pursuant to the Act or to the Business Mergers and Acquisitions Act or related laws or regulations.
4.4.3 Remuneration Committee Meeting Status

4th remuneration committee is from July 31, 2018 to June 14, 2021. The
convener, Mr. Peng-Heng Chang held 2 sessions in 2021 and the attendance of members is shown in the
following table:
Attendance in
Title Name Attendance Rate in Person (%) Note
Person
Convener Peng-Heng Chang 2 100% None
Member Chung-Yu Wu 2 100% None
Member Ji-Ren Lee 2 100% None
5th remuneration committee is from July 27, 2021 to July 4, 2024. The convener,
Mr. Peng-Heng Chang held 1 session in 2021 and the attendance of members is shown in the following table:
Attendance in
Title Name Attendance Rate in Person (%) Note
Person
Convener Peng-Heng Chang 1 100% None
Member Chung-Yu Wu 1 100% None
Member Ji-Ren Lee 1 100% None
Any Independent
Director
Date Meeting Proposal Resolution Had a Dissenting
Opinion or
Qualified Opinion
The 6th meeting of the Approved
Jan 26, 2021 Manag remuneration
4th Committee by all Approved by all
The 7th meeting of the remuneration and issuance of attending attending directors
Mar 18, 2021
4th Committee restricted stock award members in the board of
The 1st meeting of the of the director meetings
Aug 13, 2021 Manag remuneration
5th Committee committee
4.4.4 Other Required Notes for Remuneration Committee:

Remuneration C
Remuneration C
B. In cases Remuneration Committee members have dissenting opinions or qualified opinions against the
resolution and recorded with notes in paper, the Company shall list date, number of the Remuneration
Committee meeting, agenda, all members opinion and the follow-up of the members opinion: None.

4.5. Status of Fulfilling Sustainable Development and Differences and Causes of Sustainable Development Best
Practice Principles
Assessment Item
1. Does the Company establish the governance structure to propel The Company established Sustainable Development Committee in 2014. It is the highest-ranking sustainable development None
sustainable development and a dedicated sustainable development unit decision-making unit in the Company and is chaired by Vice Chairman & CEO, Mr. Lih-Shyng Tsai. The Company takes
(or acting in concurrent positions) with first-line management sustainable development as its highest guiding principle. The Committee consists of top managers who are responsible for
authorized by the Board and reporting to the Board? marketing, research and development, sales, human resources, supply chain management, legal, finance, audit and MediaTek
Foundation, and supervise the operation of six working teams, Global Presence, Innovation, Talent, Corporate Governance,
Environmental Management, and Community Engagement.
The Sustainable Development Committee holds meetings semiannually to discuss and review the implementation of the year
and in the past 6 months. Two meetings were held in 2021 with proposals including (1) working progress of the six working
teams; (2) revisions of corporate sustainability related targets and policies; (3) external sustainability trend analysis.
Meanwhile, the Board supervises strategy and implementation of sustainable development, and the representative of the
Committee reports the annual implementation priorities and performances, communication results of stakeholders to the
Board at least once per annum. The Board evaluates related strategies, and the effectiveness of implementation plans and urge
management to make adjustments when required.
2. Does the company conduct risk assessments on environmental, social The Company based on the principle of materiality, conducts risk assessments and planning on environmental, social and None
and corporate governance issues related to the company's operations corporate governance issues related to the company's operations and formulates relevant risk management policies including
and formulate relevant risk management policies or strategies based on risk identification, risk analysis and evaluation, risk response and risk monitoring, etc.
the principle of materiality?
Consideration of various potential business risks and hazards are a prerequisite to pursuing sustainable operation, providing
corporations with response procedures and recovery mechanisms in the event of crises and minimizing unexpected business
impacts. MediaTek uses the Business Continuity Plan (BCP) to respond to various risks and crises, making preparation and
conducting drills for potential risks and disasters through a range of components ranging from damage identification to risk
control. We have also established backup measures at all major sites around critical global locations so that normal operation
of business functions can be resumed in the shortest possible time in an organized and planned manner in the event of a
disaster. Additionally, we also have relevant programs and responses in place to ensure that our clients can continue their
operations even when disasters and crises impact on client interests, and reviews are conducted after the fact to avoid repeated
damage to client interests.
According to risks after evaluation, related risk management policies are as following:
Key topics Risk evaluation items Explanation
Environmental Climate change: Conduct annual reviews of international environmental protection trends
Whether global and formulate environmental protection measures according to
companies conform to operational needs; we also conduct internal training and promotion to help
various environmental our employees understand the impacts on climate change and the
protection trends and Company's environmental protection themes for the year so that they can
standards to slow down adhere to various environmental protection policies when carrying out
the event of extreme their job duties.
climate
Social Risks to human rights: In legal aspect, assure conformance of labor policy to the legal
Conduct evaluation on requirements of domestic and international human-rights conventions.

Assessment Item
risks to human rights to Hold labor-management meeting regularly, discussing implementation of

prevent breach of law human-rights policy, labor environment and conditions, policy and
and damage to labor- compensations/fringe benefits for attaining consensus, to assure
management information transparency and smooth communication between the two
relationship parties.
Governance Legal compliance; the Plan trainings on related topics for the directors and provide corporate
Board function; governance related information depending on the
stakeholder change of regulation. Ensure all employees and operations in the
engagement Company conform to related regulation and internal standards. Construct
various communication channels to engage with stakeholders.
3. Sustainable Environment Development
(1) Does the company establish proper environmental management The Company established the environmental management system according to ISO-14001 and continues to pass third-party None
systems based on the characteristics of their industries? certification. Annual greenhouse gas emission verification is conducted annually in accordance with ISO 14064-1. The
Company tracks the results and disclose related information in the Sustainability R
Company also passed ISO 14064-1 and ISO 50001 third-party energy management system certification.
(https://corp.mediatek.tw/about/corporate-social-responsibility)
(2) Does the company endeavor to utilize all resources more efficiently The Company proactively promotes various energy reduction measures and selects high energy efficiency and equipment None
and use renewable materials which have low impact on the with energy-saving design to lower corporate energy consumption and optimize energy effectiveness.
environment?
Through continuous efforts on energy reduction in 2021, the average power saving rate reached 14.8% (21,500 MWh), above
the original target of 14.2%. Going forward, the Company will continue to plan for green power purchase and evaluate the
feasibility of renewable power generation equipment to gradually increase the usage rate of renewable power. The process to
optimize utilization of raw materials of the Company is as follows: In terms of waste management and recycling, in order to
manage waste efficiently and maximize the benefits of recycling, the Company prioritizes waste reduction, classification for
reuse, adherence to recycling and reutilization. The Company also handles and disposes waste properly and continually
improves waste storage, transport and processes and evaluates the impact on the environment. We choose only qualified
partners for waste disposal and recycling, and also audit the waste processes randomly to ensure the legal disposal of our
waste and fulfill our responsibility in waste management supervision.
(3) Does the company assess the potential risks and opportunities of The Sustainable Development Committee is the highest-ranking organization for climate change management, chaired by None
climate change for companies now and in the future, and take measures Vice Chairman & CEO, Mr. Lih-Shyng Tsai. With regard to climate change, the Committee reviews related strategy and
to address climate-related issues target and manages risks and opportunities annually, and reviews status of implementation as well as discusses future plans.
According to the framework outlined by the Task Force on Climate-related Financial Disclosure (TCFD), the Company
evaluates and updates the risk and opportunity related to climate change annually. To lower the risk, the Company identifies
feasible opportunities and drafts counter measures simultaneously. The assessment of transformation risks mainly applies to
energy management for business operation in the five major aspects including power, water consumption, waste management,
transportation, and greenhouse gas. The assessment of physical risks mainly applies to disasters including water rationing,
power rationing, power outage, typhoon, and flood, and related counter measures will be taken.
T te change is explained in detail and

Sustainability Report.

Assessment Item
(4) Does the company keep records of greenhouse gas emissions, water A. The Company conducts greenhouse gas emission verification annually in accordance with ISO 14064-1, greenhouse None
consumption and total weight of waste in the past two years, and gas emission in the past two years: (Scope 1&2 including all the office buildings in Taiwan)
formulate policies for greenhouse gas reduction, water use reduction or
other waste management? Unit: ton CO2e
Year Scope 1 Scope 2 Total
2020 4,518 52,071 56,589
2021 5,326 61,678 67,004
In 2020, the greenhouse gas emission under scope 1 & 2 was 56,589 tons of CO2e in total. The electricity emission
under scope 2 accounted for 92.02% of total emission; the emission of petroleum gas for daily usage and diesel fuel for
emergency usage under scope 1 accounted for 7.98%.
In 2021, the greenhouse gas emission under scope 1 & 2 was 67,004 tons of CO2e in total. The electricity emission
under scope 2 accounted for 92.05% of total emission; the emission of petroleum gas for daily usage and diesel fuel for
emergency usage under scope 1 accounted for 7.95%.
B. The Company has long been paying attention to water resource environmental protection issues. In terms of water
saving, by implementing daily water conservation, the effectiveness of water resource can be maximized. Water
consumption in the past two years:
Unit: million liters

Year Total water Wafter saving
consumption
2020 407 16.5
2021 382 19.6
The Company invested in various improvement measures, such as using water-saving apparatuses (including inductive
water-saving faucet, water-saving toilet, and water-saving faucet for cleaning water in recycling area) and constructing
recycle air-conditioning condenses water/RO water systems. Under the implementation of water resource management
and water saving techniques, water saving was 16.5 million liters in 2020 with saving rate of 3.9%, and was 19.6
million liters with saving rate of 4.9% in 2021, reaching the target of 4%, which was set in 2020.
C. For the purpose of achieving the maximum benefits of effective waste management and recycling, MediaTek focuses
on the reduction of waste. The Company effectively sorts out, recycles, re-uses, and properly disposes waste, and
continues to limit the impact from storage, transportation, and processing of waste have on the environment. In order to
effectively control the flow of waste, we have carefully selected qualified waste disposal and recycling suppliers, as
well as audited the legitimacy of the waste disposal process randomly to take responsibility for supervising waste
management.
2020 (Unit: ton)
Category Waste category Disposal method Disposal Percentage
amount
General waste Domestic waste Incineration 37.05 45.28%
Waste paper Recycle 13.29 16.25%
Metal containers Recycle 0.20 0.24%
Aluminum containers Recycle 0.20 0.24%
Lighting products Recycle 1.25 1.53%
Hazardous Electronic components, scrap Outsourced 29.83 36.46%
waste materials, and defective products processing
Total 81.82 100%

Assessment Item
2021 (Unit: ton)

Category Waste category Disposal method Disposal Percentage
amount
General waste Domestic waste Incineration 86.76 47.09%
Waste paper Recycle 46.03 24.99%
Metal containers Recycle 0.41 0.22%
Aluminum containers Recycle 0.41 0.22%
Lighting products Recycle 0.02 0.01%
Hazardous Electronic components, scrap Outsourced 50.60 27.47%
waste materials, and defective products processing
Total 184.23 100%
Please refer to 5.3 Facility Management in 2020 MediaTek CSR Report (Sustainability Report) for detailed implementation
and related policies for greenhouse gas, water resource and waste management.
4. Social Topics
(1). Does the company establish management policies and procedures The Company strictly adheres to local laws and regulations and complies with the International Bill of Human Rights (such as None
according to related regulations and International Bill of Human Universal Declaration of Human Rights from the United Nations), maintaining employee freedom of association and
Rights? endeavoring to eradicate violation of human rights.
human-rights policy specifically including:

- Ban on any form of discrimination in employment, giving people equal treatment and respect.
- Help employees to maintain mental and physical health and balance work and life.
- Ban on employment of child labor.
- Ban on forced labor and human trafficking.
- Offer of a safe and healthy working environment.
Please refer to . Corporate Sustainability 1. Corporate Promise 1.1 Employee Experiences for more details.
(2). Does the company formulate and implement reasonable employee Employee compensation None
welfare measures (including compensation, vacations and other The company regularly measures the market compensation level, links company performance to employee compensation and
benefits), and appropriately reflect operating performance or results in bonus, and refers to overall economic indicators to formulate reasonable compensation, and ensures the overall compensation
employee compensation? and bonus are competitive. Meanwhile, through regular performance appraisal and development operation mechanisms, a
two-way communication and interaction platform is provided to achieve organizational and personal development, and
corresponding rewards are given according to performance results, so as to encourage employees and the company to grow
together.
Employee welfare measures

The Company provides benefits that exceed legal compliance requirements, including addition flexible days off to increase
the flexibility for employees to arranging their time off. The Company also provides one day of paid volunteer leave each
year to encourage employees to give back to the society, and for employees with pregnant spouses, provides paternity leave
(including miscarriage during pregnancy) that exceed legal requirements for proper care required.

Assessment Item
In addition, the Company established Employee Welfare Committee and allocates more than NT$200 million of welfare to
the Committee every year, in order to offer benefits with more variety. A flexible welfare policy was implemented in 2019
where employees can apply the subsidies with more flexibility on one or more than five projects, including travel,
entertainment, shopping, health examination and group insurance. The company also provides marriage subsidy, maternity
subsidy, funeral grant and emergency allowance. Each employee has annual health examination, parking space and meal
allowance, etc.
Diversity and equality in the workplace

The Company is committed to creating a friendly and fair workplace, providing equal compensations and promotion
opportunities to global talents. The proportion of female employees at was 20% on December 31, 2021, details as follows:
Male Female
Proportion of all Proportion of all
Number of people Number of people
employees employees
Top managers 63 95% 3 5%
All employees 14,422 80% 3,615 20%
(The above information includes regular employees, contractors, and temporary workers, but not includes employees at
independently operating subsidiaries)
The Company established Women in Tek (WIT), a community centered on female employees, providing mutual support for
them to learn and grow together. Two lectures were held at headquarter in Taiwan in 2021 in the form of both physical and
online to continue to connect female employees from offices around the world.
In addition, the Company value employee welfare, providing physical and mental healthcare for various employee groups to
maintain a good working environment, including (1) maternal healthcare, such as setting up breastfeeding rooms, providing
pregnancy protection and assessment by on-site doctors; (2) in-house preschool, providing a nurturing teaching environment
to assist employees to take care of both family and work; (3) external employee assist program (EAP), providing professional
consultation service in areas of work, family, mental health and legal counseling.
Business performance reflecting on employee compensation

, if the company makes a profit during the year, no less than 1% shall
be allocated for employee remuneration. However, when there are accumulated losses, the compensation amount shall be
reserved in advance. Employees of the company meeting certain specific requirements are entitled to receive employee
remuneration in shares or cash. The requirements are authorized to be determined by the Board.
The Company provides sustainable, reasonable, and competitive compensation to attract top-tier talent and strengthen
retention of existing employees. Every year the company reviews current compensation levels against market rates, taking
macroeconomic indices into consideration, to ensure its competitiveness within the industry. Our overall compensation
policies adhere to the Company's short-term and mid- to long-term operational goals. They have been established in
accordance with the job duties and roles of our employees; employee knowledge, skills, and capabilities; individual
performance and level of engagement. The Company makes appropriate annual adjustments to base salary in accordance with
local macroeconomic indicators, overall market compensation standards, and other relevant guidelines, in order to realize the
spirit of labor-management profit sharing.

Assessment Item
T
significantly increased from last year. T
the spirit of profit sharing with employees and encourages all employees
According to statistics of the Taiwan Stock Exchange (TWSE), employees continued to receive pays among
the leading group of the local semiconductor industry, in terms of average cost of employee remuneration, average salary and
median salary of full-time non-managerial employees. The Company provides sustainable, reasonable, and competitive
compensation to attract global top-tier talent and strengthen retention of existing employees.
(3). Does the company provide a safe and healthy working environment With high regard for employees' safety, the company conducted hazard identification and risk evaluation for critical operation None
for employees, and regularly implement safety and health education for or events with higher potential hazard, in quest for zero disaster at workplace. Since 2015, the Company has been holding
employees? comprehensive evacuation drills regularly, outperforming peers, to familiarize all the employees with the evacuation routes,
assembly sites, and participant count. Fire extinguishing and aid for the injured were also included in the drills that took place
at office buildings in Hsinchu, Chupei, and Taipei, with attendance totaling 5,173 and attendance rate of 90.9% as of
December 9, 2021. To assure environmental safety without any blind spot, the company provides irregular safety reminders
to employees and visitors and conducts regular inspection of office, public area, meeting rooms, laboratories, customer
offices, and equipment areas for environmental and operational safety. More details as follows:
- Environment safety management

- Monitor the
conditioning system around the clock.
-
- Conduct labor safety and sanitation training for new employees on a monthly basis.
-
management capabilities on a yearly basis.
- Authorize SGS (valid from July 30, 2019 to July
30, 2022 for ISO 45001).
- Promote traffic and working safety-related concepts and items on an ad-hoc basis.
The Company has a wellness center with on-site doctors from the Hsinchu Branch of NTU Hospital to provide professional
consultation and services. AEDs are located in all office areas, and trainings for AED and CPR are conducted annually to
provide a safe and healthy working environment to employees.
(4). Does the company provide its employees with career development The Company offers a comprehensive career training blueprints to managers and employees, including orientation blueprint, None
and training sessions? professional training blueprint, and management training blueprint, to assist them in learning and growing through structural
programs and diverse learnings methods. The Company also introduced corporate ethics development related programs to
cultivate key capabilities.
Every year in performance reviews, employees and their managers collaboratively plan of future work, goals, and
development plans, assisting employees in building their best development plans through regular reviews and feedback.
(5). With regard to customer health and safety, customer privacy, The marketing and labeling of the Company's products and services comply with relevant regulations and international None
marketing and labeling of products and services, does the company standards. The Company also formulated personal data protection policy and Propriety Information Management (PIM) to
follow relevant regulations and international standards, and formulate manage and protect custome
relevant protection policies and appeal procedures for consumer rights? training programs. Meanwhile, customers communication and policies on customer rights are also established to protect

Assessment Item
(6). Does the company formulate supplier management policies that The company has formulated the MediaTek Supplier Code of Conduct based on the Code of Conduct of the Responsible None
require suppliers to follow relevant regulations on environmental Business Alliance, the ILO Tripartite Declaration of Principles, and the United Nations Universal Declaration of Human
protection, occupational safety and health or labor human rights, and or MediaTek and covers 5 areas: labor and human rights, health and
their implementation? safety, environmental protection, code of ethics and management. With the management system, all suppliers are required to
sign a guarantee to comply with this code of conduct, and implement an annual review to continuously track the actual
compliance of suppliers.
5. Does the company make reference to internationally-used report The 2020 MediaTek CSR Report was prepared in accordance with GRI Standards, and moderate-level assurance was None
preparation standards or guidelines to prepare sustainability reports conducted according to the AA1000 AccountAbility Principles Standards (2018) Inclusivity, Materiality,
and other reports that disclose the company's non-financial Responsiveness, and Impact, and GRI Standards, by the British Standards Institution (BSI) Pacific Branch, which was
information? Did the pre-report report obtain the confidence or
assurance opinion of the third-party verification unit? (https://www.mediatek.tw/corporate-social-responsibilit)
6. If the Company has established the
their implementation:
The Company has set up a sustainable development policy in written form and the practices are in accordance with the Sustainable Development Best Practice Principles The policy shall be implemented
after passed by the Audit Committee and the Board of Directors and is also applied to when being amended.
sustainable development practices:
site at http://www.mediatek.com/corporate-social-responsibility.

4.6. Ethical Corporate Management and Differences and Causes of CSR Practices

4.7. Corporate Governance Guidelines and Regulations
The company has corporate governance guidelines and regulations in place. For more detailed information
http://www.mediatek.com) via Homepage > Investor Relations >
Corporate Governance > Major Internal Policies (https://corp.mediatek.tw/investor-relations/corporate-
governance).
4.8. Other Important Corporate Governance Information

The Company continues to add more resources to enhance corporate governance including adding corporate
governance session and attaching corporate governance guidelines and regulations for download on the
Company website, disclosing material information in a timely matter and host regular investor conferences.
4.8.1 Directors Profession Enhancement Status

Title/Name Date Host by Training / Speech title Hours
Corporate internal fraud prevention and investigation with AI and
Oct 26, 2021 Taiwan Corporate Governance Association 3
Chairman Big Data (I)
Ming-Kai Tsai Corporate internal fraud prevention and investigation with AI and
Big Data (II)
Vice Chairman & Oct 26, 2021 Taiwan Corporate Governance Association 3
Big Data (I)
CEO
Lih-Shyng Tsai Oct 26, 2021 Taiwan Corporate Governance Association 3
Big Data (II)
Big Data (I)
Director & Oct 26, 2021 Taiwan Corporate Governance Association 3
Big Data (II)
President
Evaluation and execution of merger & acquisition from a legal
Joe Chen Nov 5, 2021 Taiwan Corporate Governance Association 3
point of view (I)
Nov 5, 2021 Taiwan Corporate Governance Association 3
perspective (II)
Director Big Data (I)
Cheng-Yaw Sun Corporate internal fraud prevention and investigation with AI and
Big Data (II)
Big Data (I)
Director Corporate internal fraud prevention and investigation with AI and
Kenneth Kin Oct 26, 2021 Taiwan Corporate Governance Association 3
Big Data (II)
Dec 10, 2021 Taiwan Corporate Governance Association How to differentiate under the ESG trend 3
Jul 2, 2021 Securities and Features Institute Corporate governance and security regulations 3
Jul 29, 2021 Securities and Features Institute 3

governance
Corporate sustainability from a risk perspective From corporate
Aug 3, 2021 Taiwan Corporate Governance Association 3
governance to ESG
Independent
Director Oct 26, 2021 Taiwan Corporate Governance Association 3
Big Data (I)
Chung-Yu Wu
Big Data (II)
Nov 2, 2021 Securities and Features Institute Sharing of merger and acquisition - Hostile takeover 3
Merger and acquisition and responsibilities of directors and
supervisors
Mar 4, 2021 Taiwan Corporate Governance Association Corporate governance and security regulations 3
Independent Corporate internal fraud prevention and investigation with AI and
Director Oct 26, 2021 Taiwan Corporate Governance Association 3
Big Data (I)
Peng-Hen Chang
Oct 26, 2021 Taiwan Corporate Governance Association
Big Data (II)
Independent Oct 26, 2021 Taiwan Corporate Governance Association 3
Big Data (I)
Director
Ming-Tze Tang Oct 26, 2021 Taiwan Corporate Governance Association 3
Big Data (II)

4.8.2 Key Management Profession Enhancement Status
Accounting Research and Development Legal responsibilities of The Taxpayer Rights Protection Act
Feb 26, 2021 3
Foundation applicable to enterprises - Practice and case analysis
Executive Vice Accounting Research and Development The latest international financial supervision trend and financial
Feb 26, 2021 3
President & CFO Foundation crime/financial reporting fraud case analysis
& Spokesman Accounting Research and Development
Apr 16, 2021 The latest IFRS Q&A and common mistakes in financial reports 3
David Ku Foundation
Accounting Research and Development The latest developments and counter measures for Profit-seeking
Apr 16, 2021 3
Foundation Enterprise Income Tax
The Institute of Internal Auditors Chinese
Apr 8, 2021 How to detect financial reporting fraud as an audit 6
Associate General Taiwan
Manager, Internal 1. The change in practice and identification of directors and
Audit The Institute of Internal Auditors Chinese
Apr 9, 2021 2. Legal responsibilities and investigation procedures of a 6
Kirin Liu Taiwan
corporate fraud
4.8.3 Supervisor for Corporate Governance Profession Enhancement Status

Securities and Futures Institute Education Practice and case analysis on Breach of Trust and Special Breach
Feb 26, 2021 3
Center of Trust of directors and supervisors
Legal responsibilities of directors and supervisors of public
Apr 24, 2021 Taipei Bar Association 3
companies (I)
Legal responsibilities of directors and supervisors of public
May 8, 2021 Taipei Bar Association 3
companies (II)
Vice President &
General Counsel Oct 26, 2021 Taiwan Corporate Governance Association 3
Big Data (I)
David Su
Big Data (II)
point of view (I)
perspective (II)

4.9. Status of the Internal Control System Implementation
4.9.1 Declaration of Internal Control
MediaTek Inc.
Statement of Declaration of Internal Control
Date: February 25th , 2022
MediaTek Inc. has conducted internal audits in accordance with its Internal Control Regulations for the period ended December 31, 2021, and
hereby declares the following:
1. The Company acknowledges and understands that the establishment, enforcement, and preservation of internal control systems are the
responsibility of the Board and that the managers and the Company have already established such systems. The purpose is to reasonably
ensure the effectiveness (including profitability, performance, and security of assets), the reliability, timeliness, transparency of financial
reporting, and legal and regulation compliance.
2. Internal control systems have limitations, no matter how perfectly they are designed. As such, effective internal control systems may only
reasonably ensure the achievement of the aforementioned goals. Furthermore, the operation environment and situation may vary, hence the
effectiveness of the internal controls systems may vary. The internal control systems of the Company feature certain self-monitoring
mechanisms. The Company will take immediate corrective actions once any shortcomings are identified.
for the
for judging the effectiveness of the design and enforcement of internal control systems. There are five components for effective internal
control as specified by the Criteria of which the procedures for effective internal controls are composed: (1) Control environment (2) Risk
evaluation (3) Control operation (4) Information and communication (5) Monitoring. Each of the elements in turn contains several items,
and the Criteria shall be referred to for details.
4. The Company has adopted the aforementioned internal control systems for an internal assessment of the effectiveness of internal control
design and enforcement.
5. Based on the aforementioned audit findings, the Company holds that within the aforementioned period, its internal control procedures
(including the procedures to monitor subsidiaries), effectiveness and efficiency of operations, reliability, timeliness, transparency of
reporting, and compliance with relevant legal regulations, and design and enforcement of internal controls, are effective. The aforementioned
goals can be achieved with reasonable assurance.
6. This statement of declaration shall form an integral part of the annual report and prospectus of the Company and shall be made public. If
there is any fraud, concealment, or unlawful practices discovered in the content of the aforementioned information, the Company shall be
liable for legal consequences under Articles 20, 32, 171, and 174 of the Securities and Exchanges Act.
7. This statement of declaration has been approved by the Board on February 25, 2022 with all directors present under unanimous consent.
MediaTek Inc.
Chairman: Ming-Kai Tsai
Vice Chairman & CEO: Lih-Shyng Tsai
President: Joe Chen

4.9.2. Disclose the Review Report of Independent Auditors if They are Retained for Reviewing the Internal Control
System
None.
4.10. Reprimands on the Company and its Staff
4.11.1 Major Res

The Company held 2021 Annual General Meeting on July 5, 2021 at the International Convention Center of
MediaTek in No. 1, Dusing 1st Rd., Hsinchu Science Park, Hsinchu, Taiwan. In the meeting, the attended
shareholders approved the following proposals:
Major Proposals Implementation Status
Acknowledgement Items:
1. Adoption of the 2020 business report and financial statements Approved.
Approved a cash dividend per share of NT$21, and distribution record date was set at
2. Adoption of the proposal for distribution of 2020 profits
July 12, 2021. Cash dividend distribution was completed by July 29, 2021.
Resolution passed July 12, 2021 designated as distribution record date, and
1. Discussion of cash distribution from additional paid-in capital
payments completed by July 29, 2021 (NT$16 per share).
2. Issuance of restrict stock award Resolution passed completed first issuance on Aug 31, 2021.
Elected list: Ming-Kai Tsai, Lih-Shyng Tsai, Joe Chen, Cheng-Yaw Sun, Kenneth
3. Re-election of directors (including independent directors) of the 9 th Board Kin, Chung-Yu Wu (Independent Director), Peng-Hen Chang (Independent Director),
Ming-Tze Tang (Independent Director)
4. Suspension of the non-competition restrictions on directors of the 9th Board
Approved.
of the Company
4.11.2 Major Resolutions of Board Meetings

During the 2021 calendar year and as of the printing date of this annual report, 11 Board meetings were convened.
Major resolutions approved at these meetings are summarized below:
Date Meeting Major Approvals
- 2021 first quarter financial outlook
- 2021 operating plans and operating budget and intangible asset budget
- Cancellation of 2020 fourth quarter restricted stock award
Jan 27, The 17th meeting of
- Matter of 2020 fourth quarter new common stock issuance for employee stock option
2021 the 8th board
- Lifting non-competition restriction on directors
- Donation to MediaTek Education Foundation
- Matter of management compensation
- Matter of Director performance and compensation
- Matter of issuance of restricted stock for employees
- 2021 general shareholder meeting date, location, and agenda
- Matter of electing the 9th Board (including independent directors)
- Matter of handling timing and nomination of director candidates for the 9th Board
- Matter of nominating directors
Mar 19, The 18th meeting of - Lifting non-competition restriction on directors
2021 the 8th board - 2020 business operating report
- Matter of 2020 employee compensation
- 2020 financial statement
- Matter of capital increase of MediaTek Investment Singapore Pte. Ltd.
-
- 2020 internal control statement and internal control self-assessment report
- Amend Board of Directors Self-Assessment of Performance
- 2021 second quarter financial outlook
- Cancellation of 2021 first quarter restricted stock award
- Matter of 2021 first quarter new common stock issuance for employee stock option
Apr 28, The 19th meeting of
- Acquisition of real estate
2021 the 8th board
- Matter of 2020 profit distribution
- Matter of cash distribution from additional paid-in capital
- Matter of dividend policy
Jun 18, The 20th meeting of - The general shareholder meeting date and location
2021 the 8th board - Matter of acquisition of material information equipment

Date Meeting Major Approvals
Jul 5, The 1st meeting of
- Matter of election of Chairman and Vice Chairman
2021 the 9th board
- 2021 third quarter financial outlook
- Matter of organization structure adjustment
-
Jul 27, The 2nd meeting of
- Cancellation of 2021 second quarter restricted stock award
2021 the 9th board
- Matter of 2021 second quarter new common stock issuance for employee stock option
- Appointment of Manage of Taipei Branch
- Appointment of members in Remuneration Committee
Aug 13, The 3rd meeting of
-
2021 the 9th board
- 2021 fourth quarter financial forecasts
- 2021 CPA compensation
- Increase in intangible asset budget
- Capital increase of subsidiaries
Oct 26, The 4th meeting of
- 2022 audit plan
2021 the 9th board
- Disposal of assets and capital increase of subsidiaries
-
- Cancellation of 2021 third quarter restricted stock award
- Matter of 2021 third quarter new common stock issuance for employee stock option
Dec 24, The 5th meeting of - Acquisition of property of Chang Yih Science and Industrial Park
2021 the 9th board - Participation in tender for the development of THSR Hsinchu station special district (2)
- 2022 first quarter financial forecasts
- 2022 operating plans and operating budget
- Intangible asset budget
Jan 27, The 6th meeting of - Matter of organization structure adjustment
2022 the 9th board - Cancellation of 2021 fourth quarter restricted stock award
- Matter of 2021 fourth quarter new common stock issuance for employee stock option
- Matter of management compensation
-
- 2021 financial statement
Feb 25, The 7th meeting of -
2022 the 9th board - 2021 internal control statement and internal control self-assessment report
- Capital increase of subsidiaries
4.12. Major Issues of Record or Written Statements Made by Any Director

Dissenting to Important Resolutions Passed by the Board of Directors
None.
4.13. Resignation or Dismissal of Chairman, President, and Heads of Accounting,

Finance, Internal Audit, Corporate Governance Officer and R&D during 2021 and
as of the Date of this Annual Report
None.

5.
Auditors
5.1. Auditor Information
5.1.1 Auditor Fee Information
Unit: NT$ thousand
Accounting Period Covered by

Name of CPA Audit Fee Non-audit Fee Total Remarks
Firm
Shau-Pin Kuo
Ernst & Young
Wen-Fun Fuh
5.1.2 Non-audit fee paid to auditors, the audit firm and its affiliates accounted for more than one-fourth of total audit
fee:
None.
5.1.3 Replaced the audit firm and the audit fee paid to the new audit firm was less than the payment of previous year:
Not applicable.
5.1.4 Audit fee reduced more than 10% year over year:
None.
5.2. Replacement of Independent Auditors in the Last Two Years and in the
Subsequent Periods:
None.
5.3
21:
None.
5.4. Evaluation of the External Auditor s Independence:

The Company Accounting Division evaluates the independence of auditors once a year and receives Statement
The Company has reported the evaluation result to Audit Committee and the Board for their review. Both
approved.
Evaluation Does it meet with
Evaluation item
result independency?
None Yes
financial interest in the Company?
2. Do the Company and the accounting firm engage in mutual financing or mutual guarantee activities? None Yes
3. Do the accounting firm, their affiliates and audit team members have close business relationship with the
None Yes
key managers?
None Yes
directors, key managers or any other position which can have direct and significant impact on auditing?
5. Do the CP
None Yes
6. Do the CPAs provide the Company with non-audit services which are likely to influence their audit
None Yes
service?

6. Net Change in Shareholding and Net Change in Shares
Pledged by Directors, Management and Shareholders with 10%
Shareholding or More
Unit: Shares
2021 Jan. 1 to Feb. 28, 2022
Title/Name Net Change in Net Change in Net Change in Net Change in Shares
Shareholding Shares Pledged Shareholding Pledged
Chairman
126,017 - - -
Ming-Kai Tsai
Vice Chairman & CEO
146,017 - - -
Lih-Shyng Tsai
Director & President
100,814 - - -
Joe Chen
Director
- - - -
Cheng-Yaw Sun
Director
- - - -
Kenneth Kin
Independent Director
- - - -
Chung-Yu Wu
- - - -
Peng-Heng Chang
- - - -
Ming-Tze Tang
Executive Vice President & CFO & Spokesman
80,651 - - 80,000
David Ku
Executive Vice President
57,569 - - -
Cheng-Te Chuang
Executive Vice President & CTO
- - - -
Kevin Jou
Senior Vice President
- - - -
Kou-Hung Loh
60,569 - (6,000) -
Jerry Yu
47,046 - - -
Jasper Yang
50,406 - - -
SR Tsai
Vice President
47,046 - - -
Rolly Chang
Vice President
42,005 - - -
JC Hsu
Vice President & CHRO
50,406 - - -
Sherry Lin
Vice President & General Counsel
40,325 - - -
David Su
Vice President
40,325 - - -
HW Kao
Vice President
50,406 - - -
Mike Chang
Vice President
- - - -
Vincent Yung Mien Hu
Vice President
21,843 - - -
Ching San Wu
Vice President
21,843 - - -
Alan Hsu
Stock Trade with Related Party: None.

Stock Pledge with Related Party: None.

7. Top 10 Shareholders Who are Related Parties to Each Other
As of July 12, 2021. Unit: Share / %
Shareholding under Spouse Shareholding under Top 10 Shareholders Who are
Shareholding
Top 10 Shareholders and Minor 3rd Party Related Parties to Each Other
Shares Proportion Shares Proportion Shares Proportion Name Relationship
Government of Singapore 46,703,015 2.94% - - - - - -
Ming-Kai Tsai 41,342,481 2.60% 40,833,145 2.57% - - Chui-Hsing Lee Spouse
Chui-Hsing Lee 40,833,145 2.57% 41,342,481 2.60% - - Ming-Kai Tsai Spouse
Saudi Arabian Monetary Authority 29,228,833 1.84% - - - - - -
Jyh-Jer Cho 29,064,222 1.83% 10,558,414 0.66% - - - -
Cathay Life Insurance Co., Ltd.

26,365,084 1.66% - - - - - -
(Chairman: Tiao-Kuei Huang)
Fubon Life Assurance Co., LTD

24,748,000 1.56% - - - - - -
(Chairman: Richard M. Tsai)
Vanguard Emerging Markets Stock
Index Fund, a series of Vanguard 20,245,630 1.27% - - - - - -
International Equity Index Funds
Tin-Ren Liu 19,236,763 1.21% 1,634,879 0.10% - - - -
New Labor Pension Fund

18,608,719 1.17% - - - - - -
Management Committee
8. Long-Term Investment Ownership

As of December 31, 2021. Unit: Share / %
Investments by the Company Investments Directly or Indirectly Controlled by Total Investment
Long-Term Investments (1) Directors and Managers of the Company (2) (1) + (2)
Shares Portion Shares Portion Shares Portion
MediaTek Investment Singapore Pte. 2,932,854,882 100% - - 2,932,854,882 100%
Ltd.
Hsu-Ta Investment Corp. 399,380,103 100% - - 399,380,103 100%
MediaTek Singapore Pte. Ltd. 326,907,879 100% - - 326,907,879 100%
MStar Co., Ltd. 13,350,000 100% - - 13,350,000 100%
HFI Innovation 174,691,821 100% - - 174,691,821 100%
Spidcom Technologies 146,200 100% - - 146,200 100%
Richtek Technology Corp. 148,482,806 100% - - 148,482,806 100%
MediaTek Capital Co. 29,000,000 100% - - 29,000,000 100%
Airoha Technology (Cayman) Inc. 61,092,908 66% 22,886,194 25% 83,979,102 91%
Airoha Technology Corp. 3,473,292 5% 61,092,908 81% (Note) 64,566,200 86%
IC PLUS Corp. 13,025,454 19% 650,000 1% 13,675,454 20%
Intellectual Property Innovation 3,000,000 30% - - 3,000,000 30%
Corporation
Note: Through holding 91% of Airoha Technology (Cayman) Inc., which owns 89% of Airoha Technology Corp., the Company indirectly owns 81% of Airoha Technology
Corp.

1. Capital and Shares
1.1. Capitalization
As of February 28, 2022; Unit: shares / NT$
Authorized Capital Paid-in Capital Remarks
Issue
Month/ Price Capital Date of
Year (per Sources of Capital Increase by Approval &
Shares Amount Shares Amount
share) (shares) Assets Other Approval
than Cash Document No.
Restricted stock award
Feb 18, 2021
cancellation: 24,840
Jan 2021 1,590,250,608 15,902,506,080 - Yuan-Shang-Tze
Employee stock options
exercised: 213,265 No. 1100004417
May 17, 2021
Apr 2021 10 1,590,335,788 15,903,357,880 - Yuan-Shang-Tze
exercised: 147,053 No. 1100013953
Aug 12, 2021
Jul 2021 1,590,379,117 15,903,791,170 - Yuan-Shang-Tze
No. 1100022931
exercised: 72,924
Sep 17, 2021

Aug 2021 1,598,760,298 15,987,602,980 - Yuan-Shang-Tze
issuance: 8,381,181
No. 1100027114
Nov 11, 2021
cancellation: 9,514
Oct 2021 1,598,841,998 15,988,419,980 - Yuan-Shang-Tze
exercised: 91,214 No. 1100033289
Feb 21, 2022
Jan 2022 10 1,598,872,559 15,988,725,590 - Yuan-Shang-Tze
No. 1110005519
exercised: 48,260
Currently under
Jan 2022 10 1,599,029,833 15,990,298,330 amendment
issuance: 157,274
registration

Authorized Capital
Type of Stock Remark
Outstanding Un-Issued Total
Common Stock 1,599,029,833 400,970,167 2,000,000,000 Listed on TSE
Shelf Registration: None.
1.2. Composition of Shareholders

As of July 12, 2021; Unit: shares / %
Government Financial Other Juridical Foreign Institutions
Type of Shareholders Individuals Total
Agencies Institutions Persons & Persons
Number of Shareholders 1 75 789 2,731 111,238 114,834
Shareholding 2 102,232,148 116,222,332 1,037,479,951 334,474,279 1,590,408,712
Holding Percentage 0.00% 6.43% 7.31% 65.23% 21.03% 100.00%

1.3. Distribution of Shareholding
1.3.1 Distribution of Common Stock
Common Share Number of Number of
Ownership
Shareholder Ownership Shareholders Shares held
1 ~ 999 72,136 6,891,357 0.43%
1,000 ~ 5,000 35,597 60,640,680 3.81%
5,001 ~ 10,000 2,771 20,586,078 1.29%
10,001 ~ 15,000 927 11,540,570 0.73%
15,001 ~ 20,000 511 9,138,355 0.57%
20,001 ~ 30,000 537 13,176,431 0.83%
30,001 ~ 40,000 297 10,486,577 0.66%
40,001 ~ 50,000 206 9,284,519 0.58%
50,001 ~ 100,000 574 40,679,637 2.56%
100,001 ~ 200,000 431 62,658,063 3.94%
309 88,640,727 5.57%
400,001 ~ 600,000 154 75,180,654 4.73%
600,001 ~ 800,000 80 55,600,434 3.50%
800,001 ~ 1,000,000 51 45,771,733 2.88%
Over 1,000,001 253 1,080,132,897 67.92%
Total 114,834 1,590,408,712 100.00%
1.3.2 Distribution of Preferred Stock: Not Applicable.
1.4. Major Shareholders

Top 10 Shareholders Number of Shares held Ownership (%)
Government of Singapore 46,703,015 2.94%
Ming-Kai Tsai 41,342,481 2.60%
Chui-Hsing Lee 40,833,145 2.57%
Saudi Arabian Monetary Authority 29,228,833 1.84%
Jyh-Jer Cho 29,064,222 1.83%
Cathay Life Insurance Co., Ltd. (Chairman: Tiao-Kuei Huang) 26,365,084 1.66%
Fubon Life Assurance Co., LTD (Chairman: Richard M. Tsai) 24,748,000 1.56%
Vanguard Emerging Markets Stock Index Fund, a series of Vanguard International Equity Index 20,245,630 1.27%
Fund
Tin-Ren Liu 19,236,763 1.21%
New Labor Pension Fund Management Committee 18,608,719 1.17%

1.5. Market Price, Net Worth, Earnings, Dividends per Common Share
Unit: NT$ / Shares
2020 2021
Item
(Distributed in 2021) (Distributed in 2022)
Highest
Market Price
Per Share Lowest
(Note1)
Average
Book Value Before Distribution

Per Share After Distribution 197.81
Weighted Average Shares 1,573,329,335 1,579,074,576

Earnings
Per Share Not-Adjusted 26.01 70.56
EPS
Adjusted 26.01 *
Cash Dividends 37 *
Dividends Stock Earning Distribution - *

Per Share Dividend
Capital Distribution - *
Accumulated Undistributed Dividend - -
Price/Earnings Ratio (Note2)

Return on
Price/Dividend Ratio (Note3) *
Investment
Cash Dividend Yield (Note4) 6.82% *
Note1: Retroactively adjusted for stock dividends and stock bonuses to employees
Note2: Price/Earnings Ratio = Average Market Price / Earnings Per Share
Note3: Price/Dividend Ratio = Average Market Price / Cash Dividends Per Share
Note4: Cash Dividend Yield = Cash Dividends Per Share / Annual Average Market Price
1.6. Dividend Policy and Status

1.6.1 Dividend Policy under the Articles of Incorporation
According to Article 24-1 of the Articles of Association of the Company, since the Company is in an industry
that is in a growth phase, the
current and future investment environment, needs for capital, domestic and overseas competition, capital
budgeting plans, etc., to come out with a proposal that strikes a b
-term financial plans. Each year, the Board of Directors shall prepare a profit distribution
nal factors,
the Company may distribute all distributable profits for the year; dividends to shareholders may be distributed in
cash or in stock, and the cash dividends shall not be lower than 10% of total dividends to shareholders.
The board of directors has resolved in accordance with the articles of association. In line with the company's
financial business development goals and plans, and without consideration of other special circumstances, the
Company's dividend distribution is based on the principle of distributing 80% to 85% of the year's net income.
The Board adopted a proposal for 2021 profit distribution as follows:

Cash dividends to common shareholders from retained earnings is NT$91,147,046 thousand and cash
distributed from additional paid-in capital in capital surplus to common shareholders is NT$25,585,136
thousand, which totals NT$116,732,182 thousand, or NT$73 per share of cash to common shareholders. The
Chairman will then
determine an ex-dividend date.
1.7. Effect of 2021 Share Dividends to Operating Performance and EPS

Not applicable.

1.8. Employee and Remuneration to Directors
1.8.1 and Remuneration to Directors as Stated in the Articles of Incorporation
If the company makes a profit during the year, no less than 1% shall be allocated for employee remuneration and
amount shall be reserved in advance. Employees of the company meeting certain specific requirements are
entitled to receive employee remuneration in shares or cash. The requirements are authorized to be determined
by the Board. D is in cash.
1.8.2 Proposed Compensation and Remuneration to Employees and Directors
percentage of profit of the year. If the estimated amounts differ from the actual distribution resolved by the Board
of Directors, the Company will recognize the change as an adjustment to income of next year. A resolution was
approved at the board meeting held on March 16, 2022
to directors. The details of discrepancy between the aforementioned approved amounts and the estimated amounts
in 2021 are as follows.
Unit: NT$ thousands
Board Reason of
Items Estimate Difference
resolution difference
Employee Compensation Cash 1,513,219 1,513,219 - -
Remuneration to Directors 153,213 153,213 - -

1,513,219 thousand, the Company also expects to distribute employee bonus of
NT$28,751,169thousand.
1.8.3 Earnings Retained in Previous Period (2020) Allocated as Employee Compensation and Directors Remuneration
Unit: NT$ thousands
AGM Reason of
Items Estimate Difference
resolution difference
Employee Compensation Cash 546,125 546,125 - -
Remuneration to Directors 55,295 55,295 - -
1.9. Repurchase of Company Shares:

Not applicable.
2. Status of Corporate Bonds

None.
3. Status of Preferred Stocks

None.
4. Status of GDR/ADR
None.

5. Status of Employee Stock Option Plan
5.1. Issuance of Employee Stock Options
As of February 28, 2022; Unit: shares / NT$ thousands
Employee Stock Options Granted 6th Grant 15th Grant 16th Grant
Approval Date by the Securities &

Aug. 9, 2011 Aug 9, 2012 Aug. 9, 2013
Futures Bureau
Issue (Grant) Date Aug. 24, 2011 Aug. 14, 2012 Aug. 22, 2013
Number of Options Granted 2,109,871 1,346,795 1,436,343
Percentage of Shares Exercisable to

0.13% 0.08% 0.09%
Outstanding Common Shares
Option Duration 10 years 10 years 10 years
Source of Option Shares New Common Share New Common Share New Common Share
2nd Year: Up to 30% 2nd Year: Up to 30% 2nd Year: Up to 30%

Vesting Schedule 3rd Year: Up to 60% 3rd Year: Up to 60% 3rd Year: Up to 60%
4th Year: Up to 100% 4th Year: Up to 100% 4th Year: Up to 100%
Shares Exercised 1,300,140 683,983 648,945
Value of Shares Exercised 356,172 193,103 238,812
Shares Unexercised (Note) - 158,460 266,444
Adjusted Exercise Price Per Share

- 280.4 368.0
(NT$)
Percentage of Shares Unexercised to

- 0.0099% 0.0167%
Outstanding Common Shares
Note: The number of invalid shares due to resignation was deducted. The sixth issuances are terminated in August, 2021.

5.2. Employee Stock Option Granted to Management Team and to Top 10
Employees:
As of February 28, 2022; Unit: shares / NT$ thousands
Exercised Not Exercised
Number Number
of Option Number of
Number Acquired / of Option Option /
Title Name of Option Number Exercise Number Exercise
Number Option / Number Option Number
Acquired of Option Price of Option Price
of Option amount of Option amount of
Issued (NT$) (Note3) (NT$)
Issued Option
(Note2) (Note2) Issued
(Note2)
Jonathan
Strange
Bernard
Tenbroek
John Finbarr
Moynihan
James K
Manager and employee
Farley
Douglas P
Remington
391,774 0.025% 357,563 295.1 105,535 0.022% 34,211 332.7 11,383 0.002%
Vincent Del
Vecchio
Russell
Mestechkin
Stacy Ho
Henry
Vickers
John Lee
(Note 3)
managers are not granted with employee stock option.
Note2: The share issued is calculated based on the amended number of total share issued approved by Ministry of Economic Affairs on Feb 21, 2022.
Note3: As of the printing date of the annual report, the employee has left the Company.

6. Status of New Employees Restricted Stock Issuance
6.1. Issuance of New Restricted Employee Shares
Type of New Restricted
2018 New Restricted Employee Shares
Employee Shares
Date of Effective
Aug. 13, 2018
Registration
Issue date Sep. 6, 2018 Feb. 27, 2019 Apr. 12, 2019 Jul. 15, 2019
Number of New Restricted
12,259,550 2,205,888 17,818 2,182,958
Employee Shares Issued
Issued Price (NT$) None
New Restricted Employee
Shares as a Percentage of 0.77% 0.14% 0.001% 0.14%
Shares Issued
1. If an employee continues to be employed with the Company through the vesting dates after granted new restricted employee
shares, without any -compete and NDA
, are
eligible to receive the vested shares. The maximum portions of the vested shares of each year are 34%, 33%, and 33% for the year
ended 2019, 2020, and 2021 respectively. The actual portions of the vesting shares shall be determined by achievement of both the
personal performance .
2. -end performance rating for the year
preceding the vesting date and shall be an I (Meets Expectations) rating or better. And, the work result has to meet the
determined with reference to Revenue, Gross Margin, Operating Margin, and Return on Equity (ROE) operating index targets.
Achievement of Operating Index Targets for a particular vesting date shall be determined by the Company with reference to the
fiscal year ending in the year prior to the vesting date. Each objective sets two targets (as following table). Achieving either one of
the target is considered achieving the objective. The actual shares received is set according to the level of achievement with
Vesting Conditions of New
individual employee.
Restricted Employee Shares
Company
Operating Target A Operating Target B
Objectives
Revenue Increase 5% YoY
Gross Margin (%) Increase 1.5ppt YoY
Increase 20% YoY in 2018; Higher than the average of
Operating Margin (dollar) Increase 15% YoY in previous three years
2019/2020
Operating Margin (%) Increase 2% YoY

1. During the vesting period, the employees may not sell, pledge, transfer, give to another person, create any encumbrance on, or
otherwise dispose of, restricted employee shares, excluding inheritance.
speech, resolution and voting right, etc., are in
dividend,
Restricted Rights of New legal reserve and capital surplus distributable right, subscription rights of capital increase, etc. are in accordance with the
sure date for issuance of bonus shares, book closure date for cash dividends,
book closure date for subscription rights of capital increase, book closure date for AGM provided by Article 165-3 of the Company
Act, or statutory book closure date for other event to ex-rights (ex-dividend) record date, when employees achieve the vesting
evant
regulations.
1. After new restricted employee shares are issued, the shares must immediately be deposited in trust. Furthermore, before the
vesting conditions have been met, the employee may not for any reason or in any manner request that the trustee return the new
restricted employee shares.
Custody Status of New
2. During the period in which the new restricted employee shares are placed in trust, the Company shall have full discretion to act
as agent for the employee to conduct with the share trust institution matters including, but not limited to, the negotiation, signing,
amendment, extension, rescission, and termination of the trust agreement, and giving of instructions for the delivery, utilization, or
disposition of the assets in trust.
1.In the event that (i) the employment with the Company is terminated through the vesting dates, (ii) employee violates on any
Measures to be Taken When r policies, (iii) personal performance criterion and the
Vesting Conditions are not to
Met act as agent for the employee to conduct the share trust institution matters, the Company will redeem the issued restricted employee
shares and cancel the full number of the share with immediate effects.

2018 New Restricted Employee Shares
Employee Shares
2. During the vesting period, if the employee quits, is fired or is laid off, the Company will redeem the unvested and cancel the
restricted employee shares with immediate effects.
Employee Shares that have
2,028,321 403,066 2,389 372,354
been Redeemed or Bought
Back
Number of Released New
10,231,229 1,802,822 15,429 1,810,604
Number of Unreleased New
0 0 0 0
Restricted Shares
Ratio of Unreleased New
Restricted Shares to Total 0% 0% 0% 0%
Issued Shares (%)
Impact on possible dilution
of shareholdings

2021 1st New Restricted Employee Shares
Employee Shares
Date of Effective
Jul. 29, 2021
Registration
Issue date Aug. 31, 2021 Feb. 23, 2022
8,381,181 157,274
Employee Shares Issued
Issued Price (NT$) None
New Restricted Employee
Shares as a Percentage of 0.52% 0.01%
Shares Issued
1. If an employee continues to be employed with the Company through the vesting dates after granted new restricted employee
-compete and NDA
or policies and achie
eligible to receive the vested shares. The maximum portions of the vested shares of each year are 34% for 2022, 67% for 2022 and
2023 combined, and 100% for 2022, 2023 and 2024 combined. The actual portions of the vesting shares shall be determined by
individual years from 2021 to 2023, the period from 2021 to 2022, the period from 2022 to 2023, and the period from 2021 to 2023.
The objectives should be evaluated respectively within the six periods to receive vested shares. Upon duplication of evaluation
periods, vested shares shall be based on whichever number that is higher. The share shall be rounded down to the nearest integer.
2. -end performance rating for the year
preceding the vesting date and shall be an I (Meets Expectations) rating or better. And, the work result has to meet the
determined with reference to Total Shareholder Return Ranking of Top 50 Listed Companies in Taiwan, Revenue Growth, Gross
Vesting Conditions of New Margin, and Operating Margin. Thresholds and targets are set for the four objectives respectively. Based on rounded down numbers,
Restricted Employee Shares 0%/50%/100% of vested shares shall be received when
vested shares shall be calculated by interpolation and rounded to the percentile if result falls between threshold and target. The
objectives and according target ranges are shown in below table, and the actual targets are set within the target ranges by the
Company and employees respectively. The level of achievement is evaluated based on the audited financial statements of each
period.
Total Shareholder Return

Company Revenue Gross Operating
Ranking of Top 50 Listed
Objectives Growth % Margin % Growth %
Companies in Taiwan
Operation Objective Weighting 20% 25% 25% 30%
Operating Target Range P25~P50 +10%~+23% 44%~46% 15%~18%

1. During the vesting period, the employees may not sell, pledge, transfer, give to another person, create any encumbrance on, or
otherwise dispose of, restricted employee shares, excluding inheritance.
2. During the vesting peri
3. During the vesting period, other restricted employee shar

Restricted Rights of New
legal reserve and capital surplus distributable right, subscription rights of capital increase, etc. are in accordance with the
ncy.
book
closure date for subscription rights of capital increase, book closure date for AGM provided by Article 165-3 of the Company Act,
or statutory book closure date for other event to ex-rights (ex-dividend) record date, when employees achieve the vesting condition,
ct or relevant regulations.
1. After new restricted employee shares are issued, the shares must immediately be deposited in trust. Furthermore, before the
vesting conditions have been met, the employee may not for any reason or in any manner request that the trustee return the new
restricted employee shares.
Custody Status of New
2. During the period in which the new restricted employee shares are placed in trust, the Company shall have full discretion to act as
agent for the employee to conduct with the share trust institution matters including, but not limited to, the negotiation, signing,
amendment, extension, rescission, and termination of the trust agreement, and giving of instructions for the delivery, utilization, or
disposition of the assets in trust.
1.In the event that (i) the employment with the Company is terminated through the vesting dates, (ii) employee violates on any terms
Measures to be Taken When agent

Vesting Conditions are not for the employee to conduct the share trust institution matters, the Company will redeem the issued restricted employee shares and
Met cancel the full number of the share with immediate effects.
2. During the vesting period, if the employee quits, is fired or is laid off, the Company will redeem the unvested and cancel the
restricted employee shares with immediate effects.
Employee Shares that have
17,699 0
been Redeemed or Bought
Back

2021 1st New Restricted Employee Shares
Employee Shares
Number of Released New
0 0
Number of Unreleased New
8,363,482 157,274
Restricted Shares
Ratio of Unreleased New
Restricted Shares to Total 0.52% 0.01%
Issued Shares (%)
Impact on possible dilution
of shareholdings

6.2. List of Executives Receiving New Restricted Employee Shares and the Top
Ten Employees with New Restricted Employee Shares
As of February 28, 2022; Unit: shares and NT$ thousands
Released Unreleased
New
Released Unreleased
No. of Restricted
Restricted Restricted
New Shares as a
No. of Issued Amount Shares as a No. of Strike Amount Shares as a
Title Name Restricted Percentage
Shares Price (NT$ Percentage Shares Price (NT$ Percentage
Shares of Shares
(Note 1) (NT$) thousands) of Shares (Note 1) (NT$) thousands) of Shares
(Note 1) Issued
Issued Issued
(Note 2)
(Note 2) (Note 2)
Chairman Ming-Kai Tsai
Vice Chairman
Lih-Shyng Tsai
& CEO
President Joe Chen
Executive
Vice President
David Ku
& CFO &
Spokesman
Executive Cheng-Te
Vice President Chuang
Executive
Vice President Kevin Jou
& CTO
Senior Vice
Kou-Hung Loh
President
Senior Vice
Jerry Yu
President
Senior Vice
Jasper Yang
President
Senior Vice
SR Tsai
President
Vice President Rolly Chang
Vice President JC Hsu

Manager and employee
Vice President
Sherry Lin
& CHRO
3,971,457
2,815,268
6,786,725
Vice President
0.42%
0.25%
0.18%
0
0
&
David Su
General
Counsel
Vice President HW Kao
Vice President Mike Chang

Vincent Yung
Vice President
Mien Hu
Vice President Ching San Wu
Vice President Alan Hsu
Employee CK Wang
Employee CH Wang
Employee Yi-Ching Lee
Employee Martin Lin
Employee Miles Sun
Employee Ryan Chen
Employee Alex Chen
Employee DW Tseng
Employee PC Tseng
Employee SA Hwang
Employee HC Hwang

Employee JS Pan
Employee Alan Cheng
Employee Harrison Hsieh
Employee Leo Shieh
Employee Evan Su
Note 1: The number of unrestricted shares and the number of unrestricted totaled 6,786,725 shares, including 532,198 shares that have been recovered.
Note 2: The share issued is calculated based on the amended number of total shares issued approved by Ministry of Economic Affairs on February 21, 2022.
7. Status of New Shares Issuance in Connection with Mergers

and Acquisitions
None.
8. Financing Plans and Implementation

8.1. Uncompleted share issuance or private placement or completed transactions
without expected benefits in the past 3 years:
None.

1. Business Scope
1.1. Business Scope
1.1.1 The Main Business Activities of the Company
A. Design, develop, produce, manufacture and market the following products:
a. Multimedia Integrated Circuits (IC);
b. Computer peripheral ICs;
c. High-end digital consumer ICs;
d. Other application specific ICs;
e. Patent and circuit-layout licensing and services of the above-mentioned products
B. Provide the above-mentioned products with software and hardware application design, test, maintenance,
and technological consultation services
C. Import and export of the above-mentioned products
1.1.2 Revenue Mix (2021)

Product Category Multimedia Chipsets Others (Note)
Revenue Mix 99.09% 0.91%

Note: Others include revenue from technical services and licensing fees.
1.1.3 Products Currently Offered by the Company

A. Mobile communication chipsets;
B. Tablet and Chromebook chipsets;
C. Bluetooth chips;
D. Wireless LAN (WLAN) chips;
E. Global Positioning Satellite (GPS) chips;
F. Connectivity combo SoCs that integrated Bluetooth, FM, WLAN, GPS, etc.;
G. Artificial Intelligence of Things (AIoT) device SoCs;
H. Smart home connectivity chips;
I. Bio-sensing analog front-end chips;
J. Optical storage chipsets;
K. DVD player SoCs;
L. Blu-ray DVD player chipsets;
M. Highly-integrated digital TV controller chips;
N. xDSL chipsets;
O. Automotive chipsets;
P. Power management and controller chips for various electronics;
Q. USB PD Type-C controller chips; and
R. Consumer and enterprise ASIC chips

1.1.4 New Products Planned for Development
A. Next generation highly-integrated mobile communication chipsets;
B. Next generation tablet and Chromebook chipsets;
C. Next generation highly-integrated multi-functional wireless communication SoCs;
D. Next generation artificial intelligence of things (AIoT) device SoCs;
E. Next generation low-power smart home connectivity chips;
F. Next generation highly integrated 8K Ultra HD smart TV chips;
G. Next generation 10G PON(passive optical network) chipsets;
H. Next generation NBASE-T Ethernet physical chipsets;
I. Next generation power management and controller chipsets for various electronics;
J. Next generation server power management and controller chipsets; and
K. Next generation consumer and enterprise ASIC chips
1.2. Industry Outlook

1.2.1 The semiconductor manufacturing supply chain:
The semiconductor industry can be categorized as: upstream IC design companies, midstream wafer foundries,
and downstream IC packaging and testing service providers. Major international semiconductor companies
usually operate vertically across the value chain, from IC design and manufacturing to packaging, testing, and to
systems integration. However, as the rapidly-evolving industry environment requires higher capital expenditures,
horizontal model is able to focus resources on specific field more efficiently to meet industry trends, which has
proven to be an outperforming model compared to the integrated one.
The major business of an IC design company is to design and sell semiconductor products, or to design products
based on
requires other processes such as photo mask, wafer fabrication, packaging and testing, etc. In general, IC design
companies outsource almost 100% of photo mask, wafer fabrication, and IC packaging to specialized
manufacturing partners. Most companies also outsource their IC testing to specialized testing houses, while some
IC design companies keep a certain portion of testing in-house.
In the semiconductor supply chain, IC design is a knowledge-intensive industry with a relatively high return on
investment, and coupled with the complete semiconductor industry ecosystem and ample talents in Taiwan, IC
design attracts interests from many suppliers as well as investors.
1.2.2 Industry Outlook, Trends and Competition
A. Wireless Communication Products
a. Smartphone
Wireless technologies have driven the developments in mobile communication platforms, with handset the most
scalable. According to Strategy Analytics, worldwide handset shipment reached 1.7 billion units in 2021, and is
expected to grow steadily to nearly 2.0 billion units in 2026, with smartphone estimated to grow to over 1.7 billion
units from 1.4 billion units during the same period. On the other hand, according to Counterpoint, MediaTek
ranked 1st in global handset SoC shipment in 2021, with a market share of 38%.

(In million units) Worldwide Handset Shipment Forecast
2,000
1,500
1,000
500
-
2021 2022 2023 2024 2025 2026
Source: Strategy Analytics, December 2021
(In million units) Worldwide Smartphone Shipment Forecast

2,000
1,500
1,000
500
-
2021 2022 2023 2024 2025 2026
Source: Strategy Analytics, December 2021
Global communication technologies continue to evolve and upgrade. As 5G migrates toward large-scale
commercialization, its features such as enhanced mobile broadband (eMBB), massive machine type
communication (mMTC), and ultra-reliable low latency communication (URLLC) are contributing to the long-
term application development of cloud computing, internet of vehicles and IoT. These applications lifted the
hardware and performance requirements of mobile devices and brought up the prices of end products, which
further pushed the evolution of the whole industry. As the penetration rate of 5G increases, 5G smartphones have
gradually replaced 4G smartphones to become the mainstream generation in developed countries, and replaced
4G smartphone in the high-end market of developing countries.
In addition to mobile communication, consumers also focus on advanced camera applications and higher
performance of multimedia, such as multi-lens photography, on-line gaming, video streaming, social networking,
augmented/virtual
and features of mobile computing products continue to upgrade, such as integrating and enhancing network
connections, optimizing gaming control, picture quality and some adjustments to enhance the overall gaming
experience. And the higher performance AI accelerator not only improves photo quality but also provides stronger
computing power with lower power consumption.
The rapid growth of the wireless communication market comes with intensifying competition, primarily from
semiconductor companies in the US, Europe, Mainland China and Taiwan. Not only will the semiconductor
companies have to compete for new technology specifications and launch more advanced products but also need
to take cost management and technical support into account to offer comprehensive total solutions and product
development services to customers.
In terms of smartphone, MediaTek establishes partnerships with worldwide operators and distribution channels
to proactively expand global market. MediaTek, being in the leading group, participated in the first wave of large-
scale 5G commercialization by launching 5G multimode SoC, and accelerated 5G migration by working closely
with customers and global ecosystem. In addition, MediaTek continued to expand product lines by entering 5G
flagship market to further strengthen the comprehensiveness of product portfolio. The Company also launched
5G Open Resource Architecture to reinforce customer cooperation and build differentiated flagship and high-end
products to provide excellent customer experiences. MediaTek will also continue to cultivate 4G market to
maintain leading market share.
b. Internet of Things (IoT)

In addition to smartphones, internet of things, various connectivity device and Internet of Vehicles are all
important applications in wireless communication. The recent acceleration of digital transformation has increased
consumer demand for higher bandwidth, leading to the rise of number of devices connected to the internet, the
upgrade of remote multimedia applications, and the growth of advanced computing applications. Examples
included expanding 5G technologies into more platforms such as laptop, rising WiFi 6 penetration in high-end
routers, PON, and laptop, as well as consistent WiFi 5 demand at high level in mainstream market. The IoT
products integrated with 5G, WiFi, GPS and Bluetooth features are also boosting the market demand for wireless
communications, including AI voice assistant devices, smart home appliances and Bluetooth ear buds. Moreover,
software streaming and augmented/virtual reality applications have raised the requirement for connectivity and
specifications of consumer electronics including game console and TV. Internet of Vehicles and Industrial IoT
are also becoming important platforms in wireless communication.
The Company is leveraging the technology advantage in mobile computing, wireless communication, and
multimedia, and the comprehensive IPs across different platforms to continuously develop new generation ICs
for wireless communication in cellular and WiFi, and SoCs for ARM architecture with integrated connectivity,
to grasp future trends and opportunities by applying them to various computing platforms, TV, router, broadband,
IoT devices, game devices and automotive.
B. Digital TV Products
Global digital TV shipment is stable and the 4K Ultra High Definition (4K Ultra HD) has matured and become
the mainstream technology in the market, with 8K Ultra HD gaining traction. Higher yield rate and lower
production costs of OLED panels both contribute to the gradually increasing shipment of OLED TV. As panel
technology develops and consumers pursue better picture quality, the need for higher resolution is growing. 8K
technology continue to develop, enabling more refined picture and audio quality to satisfy consumer demand. In
addition, the adoption of AI more flexibly elevates user experiences. For instance, through AI scene detection,
content with low resolution can be transformed to high resolution for detail enhancement. Meanwhile, new
applications are triggered by the impact of Covid-19, such as video conferencing or home gym when cameras are
added to TVs.
MediaTek leads the industry by launching multi-core smart TV SoCs and adding AI to enhance picture quality
through automatic scene detection. Our products also support coding and decoding specifications for 8K UHD
TVs. MediaTek now proactively cooperates with TV makers to launch 8K products.
C. ASIC Products
As technology advances at much faster pace, electronic products become obsolete at faster rates. In order to
differentiate products, the demand for customization in consumer electronics, large data centers, automotive
electronics, industrial automation, communication industry, artificial intelligence and related areas is increasing.
Particularly, with the trend of digitalization, tremendous amount of data grows in an incredible rate that therefore
sets data center and high-speed transmission related applications, such as switches, storage devices, and high-
speed computing to be the market focus. MediaTek has been dedicated to developing high-speed transmission
IPs for many years and the IPs are now recognized by many first-tier customers. MediaTek will continue to
establish cross-platform and long-term relationships with our partners, and actively expand the business portfolio
into new areas.
D. Analog Products
C
continues to increase. Analog IC is in charge of data and signal transmission between users and machines, and
therefore have very extensive applications, for example, computers and their peripheral applications,
communications, automotive electronics, consumer electronics and new applications such as smart home, IoT,
etc. Traces of analog IC can be found in almost all electronic systems.
E. Broadband Networking Products

Global broadband industry continues to grow as the number of broadband user increases. According to research
reports, at the end of the fourth quarter of 2021, there were over 1 billion of broadband users globally, growing
steadily at annual growth rate of 5%. Among which, Mainland China was the world's largest single market, and
its main technology was xPON, which was gradually developing towards 10GPON since 2020. In recent years,
under the FTTH trend, many regions have accelerated the deployment of xPON, such as emerging countries like
Central and South America, Southeast Asia and India, as well as Europe and North America. The rapid growth
of overseas market has made them the next key driver. In order to cope with the high traffic load of 5G mobile
communications in the future, higher speed 10G fiber fixed network broadband has become the foundation of 5G
mobile communications.
1.3. Technology and R&D

1.3.1 R&D Spending
date of this annual report, the R&D spending was NT$17,599,214 thousand.
1.3.2 Developed Technologies or Products in the Last Fiscal Year and Year-to-Date
A. Highly integrated 5G smartphone SoCs and thin modem;
B. Highly integrated LTE chipsets;
C. Highly integrated tablet chipsets;
D. Highly integrated artificial intelligence of things (AIoT) chipsets;
E. Highly integrated smart home connectivity chips;
F. Highly integrated WLAN SoCs;
G. WiFi 6 wireless communication chips;
H. Highly integrated advanced smart assistance chips;
I. Highly integrated 8K Ultra HD smart TV chipsets;
J. Highly integrated UHG chipsets;
K. Highly integrated terabyte passive optical network (xPON) chipsets;
L. Power management and controller chipsets for various electronics;
M. USB PD Type-C controller chipsets;
N. Next generation brushless DC motor;
O. Consumer and enterprise ASIC chips;
P. Highly integrated automotive SoC for eCockpit and telematics.

1.4. Long- and Short-Term Business Development Plans
1.4.1 Short-Term Business Development Plans
L. Keep our finger on the pulse of market trend and customer need, continue to develop highly competitive
new products, and adopt more advanced process/more optimized circuit design architecture to introduce
high price-performance mainstream products to stimulate market demand.
M. Combine newly- existing platform advantages to provide
customers with complete total solutions. Understand and serve customers, and facilitate customers time-
to-market to seize market opportunities.
N. Enhance existing long-term partnerships with customers and expand customer base as well as market
share by implementing efficient marketing strategies. Meanwhile, work closely with related partners in
various industries such as operators to expand business opportunities.
O. Maintain close relationship with supply chain partners including foundries, packaging companies and
testing houses. Ensure real-time communications with customers and manufacturing partners to
effectively respond to market changes, secure sufficient capacity, and ensure smooth delivery as well as
AR/inventory management.
P. Maintain systematic and flexible financial systems to support various R&D and sales activities.
1.4.2 Long-Term Business Development Plans

Q. Participate actively in global standard committees and strengthen long-term relationship with world-class
customers and partners to develop various business opportunities.
R. Continue to develop innovative products and maintain market-leading positions in different markets.
Enhance product competitiveness and profitability through new product developments, product design
optimization, cost control, etc.
S. Continue to work closely with supply chain partners and co-develop more cost-effective solutions.
T. Recruit and retain global talents with different expertise for future products and market development.
Establish comprehensive internal training systems to share knowledge and experiences.
U. Establish comprehensive global management systems to ensure internal operation efficiency and effective
external communications. Maintain good relationship with capital markets and seek investment targets for
business expansion.

2. Market, Production, and Sales Outlook
2.1. Market Analyst
2.1.1 Major Markets
2021
Region
Sales (NT$ thousands) Percentage
Export sales 457,220,510 92.66%

Domestic sales 36,194,072 7.34%
Total 493,414,582 100%
2.1.2 Market Share

According to Topology Research Institute and Gartner, worldwide semiconductor market revenue was US$583.5
billion in 2021, and MediaTek s market share was 3.0%, ranking No.7 worldwide and No.4 in global fabless
semiconductor industry.
2.1.3 Major Markets
A. Wireless Communications Products

The replacement trend brought by technology migration to 5G and WiFi 6 following the deployment of base
stations and related infrastructures, are driving the market demand for wireless communication, especially for
smartphone. The trend is expected to expand to consumer electronics and IoT related applications such as laptop,
tablet and CPE, with more to come in the future. Covid-19 increased the demand for remote communication such
as video conferencing and accelerated digital transformation. The requirement for higher bandwidth usage further
drives the upgrade trend of new generation Internet devices and equipment hardware. Users become more focused
on the functionality of consumer electronic products with more advanced technologies and upgrades from
applications and connectivity. The higher bandwidth requirement driven by connection speed and AI functions
will stimulate more demand for wireless communication chips, and smart IoT, smart city as well as
augmented/virtual reality demand will also broaden the application of wireless communication products. In
addition, with the automotive digitalization trend, new cars will gradually be equipped with wireless
communication capabilities as the foundation for Internet of Vehicles (IoV) and autonomous driving. It is
expected that 5G, IoT and IoV to become the important drivers for future wireless communication market.
B. Digital TV Products
Global digital TV shipment is stable. New generation TV SoCs provide product differentiation with AI processor
integration to further enhance picture and audio quality. With smart TV functions, users can surf the Internet,
watch video on demand, install applications or games to enhance user experience.
C. ASIC Products
Technology advances rapidly, and with massive data, rapid growth in cloud and AI, and demand for metaverse
applications, high-speed transmission and data center related demand are also rising. MediaTek has diverse
product lines and comprehensive products across platforms. We steadily invest in cutting-edge technologies,
incorporating multiple advanced IPs such as multimedia, connectivity, high-speed transmission and data
computing, to provide the most competitive consumer and enterprise ASICs.
D. Analog Products
According to IC Insights, analog IC market grew 25% in 2021 with shipment growth of 20%, mainly driven by
automotive, whose shipment grew 30%. Analog IC market continues to grow steadily. MediaTek, with high

potential in global analog IC market, will continue to work with Taiwan foundries and leverage our advantages
from accumulated experiences.
E. Broadband Networking Products

Customers increasingly value the quality of network drives the upgrades of global networking product and
equipment specification. The fiber-to-the-home (FTTH) policy of Mainland China has greatly increased the
number of users. With the increase in specifications of network speed and bandwidth, demand from overseas
markets such as Europe, North America and emerging markets is expected to drive the next wave of growth. The
Company has advanced and complete networking product lines, such as GPON, 10GPON, xDSL, and high speed
Ethernet, etc. MediaTek will continue to develop faster networking products to seize upgrade opportunities and
steadily expand domestic and overseas markets in the future.
2.1.4 Competitive Advantage
A. Outstanding Team
working together in the multimedia industry for many years and has
grown with the participation of outstanding talents. Many of our staff are senior IC design and system
engineers. The exceptional quality of human resources and team spirit developed through long-term
-
term prosperity and deliver continuous innovation.
B. Strength in System-on-a-Chip (SoC) Development

SoC has been a hot topic of the technology industry for many years. The Company has a large pool of talented
IC and system designers. Through their joint efforts, MediaTek has been able to launch competitive SoC
products every year.
2.1.5 Favorable Developments, Unfavorable Factors and Countermeasures
Favorable Developments
A. Advantages in possessing advanced and comprehensive wireless communication IP portfolio.

Continue to invest in technology to maintain platform competitiveness
Mobile devices and IoT have become indispensable produ
user experience stimulates technology upgrades and drives the growth of related IC industries. The Company
spares no effort in the development of wireless communications and consumer electronic products. It has the
most complete IPs in the industry, including 4G/5G mobile communications, WiFi 5/6/6E, new generation of
Bluetooth communications and audio technology, and participates in setting international standards. The
Company continues to invest in the n
in the life cycle of many products, providing customers industry-leading technologies, convenient and stable total
solutions for prompt design-ins among different consumer electronics platforms.
In addition, with the rising importance of computing and power performance capabilities in smart platforms, as
well as the broadening ARM-based computing applications, MediaTek also continuously invests in advanced
processes and packaging technologies, hoping to expand and penetrate into the high-end and flagship segments
of various applications through a more complete product line.
B. Integrating internal artificial intelligence platform with rich IP portfolio, leading the industry to
create new trends of smart consumer devices
MediaTek possesses key technologies in smart devices with extensive capabilities in wired and wireless
connectivity, low power consumption processors, AI, multimedia and augmented/virtual reality. And many of
these technologies have been successfully integrated to smartphone, TV chip, tablet, game console, smart IoT,
etc. The ecosystem built by various smart connected devices is coming to completion, which will enable

customers to co-
industry trends as well as enhance user experiences.
C. Continue the collaboration with first-tier customers to develop highly competitive ASICs
The product cycle of ASICs is significantly longer than other traditional consumer electronics and requires high
technology integration capability. MediaTek has been developing multimedia and high speed transmission IPs
for many years, possessing complete IPs and large product platforms. With the SoC integration capability in
advanced process and large-size packaging experience, the Company provides highly-recognized superior
product development services to first-tier customers.
D. Demand for analog products continues to grow

High-frequency wireless applications become broader and demand for linear regulator with low noise, ultralow
dropout and low power consumption is expected to grow sharply. In addition, demand for power management
and battery management are also rising along with environmental awareness. These trends are expected to drive
MediaTek sales and developments.
E. xPon and VDSL to become growth drivers for the broadband market
xPON has been replacing xDSL for years, accounting for more than 80% of market share. Overall wired
broadband market continues to grow steadily. MediaTek has complete product portfolio of xPON across
high/mid/low-end segments, and is able to provide customers with the most comprehensive and competitive
products. 10 GPON will become another new trend of the year, increasing the broadband demand in households
and enterprises.
With rise of remote communication such as video conferencing, the demand for bandwidth has greatly increased
in households and enterprises, where higher bandwidth, security and stability are becoming essential to broadband.
The mobile communication developments in 5G and even 6G, as well as WiFi upgrades are sure to accelerate the
demand and growth for broadband communication, as 5G backhaul, deployment of microcell base stations,
connection between router and switch all rely on the development of broadband network.
Unfavorable Factors and Countermeasures

The IT industry moves at a fast pace and new technology may emerge at any time. The intense end-product
competition has brought inevitable pricing pressures given the relatively short product life cycle.
In the extremely competitive technology industry, the Company is always prepared and has been intensively
developing new products, enhancing competitiveness, and providing better products with its outstanding
employees. In addition to continuing to market the existing products, the Company also works proactively on
next generation products, aiming to increase competitiveness by bringing high-quality products to the market
ahead of competitors.
2.2 Key Product Applications and Manufacturing Processes

2.2.1 Key Product Applications
broadband networking, which are applied to mobile phones, digital TVs, PCs, digital appliances, wearables and
IoT products. Key product applications are listed below:
A. Wireless Communication Products

-level, mainstream, mid/high-end and
flagship 5G/4G/3G smartphones, tablets, Chromebook and feature phones. Peripheral chips such as Bluetooth,
WLAN, GPS, NFC and wireless charging are not only used in mobile phones, but also in other applications such
as routers, TVs, set-up-boxes, smart wearables, smart home appliances, IoT applications, automotive, game
consoles, notebooks and portable navigation devices, etc.

C. Wafer Foundry Process
Wafer fabrication is outsourced to foundries. The wafer manufacturing process begins by entering a module and
then going through etching, photo, thin film and diffusion with masks. The finished wafers must be tested
before shipping to the next stage.
D. Wafer Testing Process

A finished wafer must be checked for conformity in its electronic functions. Non-functional dies will be marked
and sorted out later.
E. Packaging Process
The good dies on the wafer will go through the packaging process as indicated below:
Wafer Mount Die Saw Die Bond Wire Bond Molding
Solder/ Trimming/
Branding Packing Shipping
Plating Dejunking
2.3. Supply of Essential Raw Materials

Wafers are major raw materials and are mainly procured from foundry partners, including Taiwan
Semiconductor Manufacturing Limited Company (TSMC), United Microelectronics Corporation (UMC), and
GlobalFoundries. These suppliers have been able to maintain good quality and process capability, satisfying the
Company The Company negotiates pricing with suppliers according to market supply and
demand conditions. It also reviews production and service quality periodically with its suppliers. The Company
not only continues to strengthen its cooperation with existing manufacturing partners, but also actively surveys
and engages with other potential suppliers to ensure the supply, quality, and cost of procurement.
2.4. Key Supplies & Customers

2.4.1 Key Suppliers
Names of suppliers accounting for more than 10% of the total purchase in any of the previous two years:
Unit: NT$ thousands
2020 2021
% of
% of
Amount Total Amount
Supplier Relation Supplier Total Relation
Purchased Purchas Purchased
Purchase
e
Not Related Not Related
Supplier A 79,000,104 55.48% Supplier A 142,693,691 63.34%
Party Party
Supplier C 13,528,677 9.50% Supplier B 15,241,080 6.77%
Party Party
Supplier B 10,582,154 7.43% Supplier C 12,245,257 5.44%
Party Party
Others 39,290,552 27.59% Others 55,097,678 24.45%
Total 142,401,487 100.00% Total 225,277,706 100.00%
The key supplier changes primarily due to product mix change.

2.4.2 Key Customers
Names of customers accounting for more than 10% of the total sales in any of the previous two years:
Unit: NT$ thousands / %
2020 2021
% of % of
Customer Sales Total Relation Customer Sales Total Relation
Revenue Revenue
Customer A 3,622,661 1.12% Customer A 70,405,724 14.27%
Party Party
Customer B 1,921,222 0.60% Customer B 54,477,584 11.04%
Party Party
Customer C 20,053,059 6.22% Customer C 51,255,548 10.39%
Party Party
Others 296,549,046 92.06% Others 317,275,726 64.30%
Total 322,145,988 100.00% Total 493,414,582 100.00%
2.5. Production Volume and Value in the Past Two Years

Unit: thousand pieces / NT$ thousands
2020 2021
Production Production Volume Production Value Production Production Volume Production Value
Capacity Capacity
Multimedia and Handset Chipsets Not applicable 11,314,897 187,691,980 Not applicable (Note)
Note: The Company -house production capacity.
2.6. Sales Volume and Value in the Past Two Years

Unit: thousand pieces / NT$ thousands
2020 2021
Domestic Sales Export Sales Domestic Sales Export Sales
Volume Value Volume Value Volume Value Volume Value
Multimedia and handset Chipsets 2,981,339 35,857,367 9,668,927 453,043,153
Others 336,705 4,177,357
Total 2,981,339 36,194,072 9,668,927 457,220,510

3. Employees
2022
2020 2021
(As of Feb 28)
Management
R&D
Number of
Sales & Marketing
Employees
Manufacturing
Total
Average Age
Average Years of Service
Doctoral
Master
Education University & College
High School
Total
4. Material Contracts
Agreement Type Counterparty Term Summary Restrictions
Rambus and the Company renewed the patent licensing
Patent licensing Rambus Inc. From Jan. 1, 2017 None
agreement, effective retrospectively to the beginning of 2017.
Patent settlement and Both parties reached a patent cross-licensing agreement and
Broadcom Ltd. From Oct. 19, 2017 None
licensing agreed to file for dismissal of all patent lawsuits by both sides.
Jiangsu Wannianda
Real estate MediaTek (Chengdu) Inc., a subsidiary of MediaTek Inc.,
Construction Group Co., From Sep. 3, 2018 None
construction announced to build a new office building on rented land.
Ltd. etc.
Patent licensing ATI Technologies ULC From Sep. 16, 2019 Both parties reached a patent cross-licensing agreement None
Jiangsu Wannianda
Real estate
Construction Group Co., From Nov. 15, 2019 MediaTek (Wuhan) Inc. announced to build a new office building. None
construction
Ltd
Note: For the other related contractual commitments, please refer to Financial age F1~page F149.
5. Information Security Management

5.1. Information Security Management Strategy and Structure
5.1.1 Information Security Risk Management Structure
A. Corporate Information Security Governance organization

For managing information security risks, the Company established the Information Security Committee, chaired
by Executive Director, to review the implementation of information security, product security and data security,
and periodically report the inspection result to the Board of Directors. The Information Security Committee holds
a meeting at least every 6 months or anytime dependent on information security requirement. The chairman of
the Committee represents Information Security Committee and reports to the Board of Directors every year.
a. Information Security: Including the management, planning, supervision and implementation of information
security.
b. Product Security: Including product safety framework planning and introduction, industry standard
compliance, protocol formulation, training, threat risk modeling, testing procedure and vulnerability
management.

c. Data Security: Including the planning, implementation and discussion of intellectual property information
management standards.
5.1.2 Policy for Information Security
A. Corporate Information Security Management Strategy and Structure

1. To strengthen information security management, MediaTek refers to international cybersecurity standards (such as
the NIST Cybersecurity Framework) and complies with both international and domestic regulations to establish
information security standards.
2. To ensure the confidentiality, integrity and availability of information, MediaTek adopts the strategy of layered
cybersecurity detection and defense to proactively set preventive protection and lower the risks of unauthorized use,
damage or leak of information.
3.
measures to ensure the product safety and privacy, including but not limiting to security requirement, framework
analysis, threat analysis, code screening, security incidents response and leak management.
4. The cybersecurity response team should swiftly react and take necessary measures upon occurrence of cybersecurity
incidents, and shorten the time required for operation resumption to lower potential damages. The team should also
follow standard procedures to report and investigate the incident.
5. through trainings to establish the concept that the
responsibility of information security falls on everyone.
B. Corporate Information Security Management and Continuous Improvement Structure

To strengthen information security, MediaTek monitors internal information security conditions and refers to the
National Institute of Standards and Technology Cybersecurity Framework of the United States to formulate
information security protection and control measures.
C. Managerial Plans
a. Information Security Protection and Control Measures
Identity Examine business environment, key resources and services to develop a risk management
system that conforms to daily operations, including formulating information security
standards and establishing asset management systems.
Protect Formulate and implement corresponding defense measures to strengthen key resources and
services, including Identity Access Management (IAM), antivirus software, endpoint
protection and system repairment and management.
Detect Establish real-time cybersecurity detection and warning mechanisms, including email
protection, intrusion detection, Security Operations Center (SOC) and periodically examine

information system framework.
Respond Establish the Cyber Security Incident Response Team (CSIRT) to take charge of the
management of cybersecurity incidents, including investigation, identification and providing
plans for improvement. The reporting and handling of cybersecurity incidents should follow
the standard procedures.
Recover Formulate data back-up plans to shorten the time required for operation resumption upon
occurrence of cybersecurity incidents.
b. Review of cybersecurity results

Governance of MediaTek was awarded the Information Security Leadership Award at the 14th TCSA in
information security 2021
Periodically conduct red team drills and review computer information security
Assessment of Integrate threat information from third party to determine and manage external risks
information security
third-party information security assessment tool
MediaTek was the first company in Taiwan to complete BSIMM assessment

MediaTek is a member of CNA to keep up with security issues at all times
Result of product
security MediaTek established Product Security Leak Detection Incentive Plan
MediaTek announces product security leakage status on its website monthly to deal with
product security issues under full visibility
D. The number of employees participating in the management of information security was 188 in 2021,
and the related expenses was NT$243mn.
5.2. Information Security Risks and Countermeasures

With respect to information technology security risks and management measures, MediaTek, as a fabless
semiconductor company, possesses many computers, instruments and information systems related to IC design
business, which must be defended with an information security management system. Even if MediaTek has
established such an information security management system, there is no guarantee that the computer systems it
manages or maintains is able to completely avoid any aggressive hacker attacks. Due to the rapid changes in
activities, hackers may further affect the operation of the Company with the loss of important data. On the other
hand, the Company's information system, including upstream and downstream partners and customer data are
becoming increasingly large. Only through continuous testing and evaluation of network, and system architecture
and sophisticated security management measures can the effectiveness of security measures be ensured.
management, penetration testing, malware detection and interference, two-factor verification mechanism, social
engineering drill, etc., and is equipped with intrusion detection systems at important information systems and
network monitoring. MediaTek operates a security monitoring center and a team to unify the recording and
continuously monitor and analyze the aforementioned important security incidents, and to ensure the detection
effectiveness of security incidents by establishing a professional dedicated security team.
h
substantial property losses. In order to avoid the impact of such incidents, MediaTek has conducted system
vulnerability tests since 2014, simulating important hackers' attacks to confirm whether there are system
vulnerabilities. In 2019, it began to implement automated vulnerability scanning to ensure the completeness of
security inspection coverage. In 2020, resources were invested to perform more advanced red team / blue team
drills to discover and fix vulnerabilities in the information system as many as possible.

Certain hacker groups continue to attack IT companies that master key technologies. Once the system is infiltrated,
backdoor programs will be implanted in the internal information system. To detect whether the information
system has been implanted with backdoor programs or malicious programs, MediaTek has been implementing
internal automated and large-scale malware detections periodically in 2015 to ensure the safety of information
system. This type of hacking method often penetrates the Company's information system through social
engineering malicious mail or any method of deceiving employees. In addition to repairing the loopholes of the
information system, MediaTek implemented social engineering drills and performed security training on
employees based on the results in 2015, to strengthen the information protection awareness of employees and the
Company.
In light of the fact that some information systems purchased from third-party vendors may be vulnerable and
could be infected by computer viruses, MediaTek has included system security requirements and specifications
in the outsourcing information system contract, and clearly established loophole patching policies to avoid
potential risks that may impact company operations. MediaTek continues to build a trusted corporate environment
through the aforementioned security control measures. However, even if a trusted environment is constructed,
MediaTek has strengthened the employee password policy and introduced a two-factor authentication mechanism
to reinforce the identity authentication of the information system in 2019.
5.3. Major Information Security Incidents

No material findings were found in the information security audit in 2021, nor was there any violation of
information security that may cause leaks of customer information or fines.

1. Corporate Promise
1.1. Employee experiences
MediaTek has long been devoted to pursuing to build a healthy relationship with its employees and provided
employees with challenging tasks and excellent experiences that meet with requirements. The Company has
instituted responsible units specialized in compensation and benefits, training and development, global
recruitment, as well as employee experiences, to propel and implement various policies at the company level. In
addition, MediaTek cooperates with managers through HR Business Partner (HRBP), a specialized human
resource strategic partner, at the business level to prosper the developments within units. Positive and active
employee experien
also devotes to the following aspects to continue to provide employees with the most complete working
experience:
A. Employment
With an aim of building up a diverse and inclusive workplace, MediaTek strictly adheres to local laws and
regulations and complies with the International Bill of Human Rights (such as Universal Declaration of Human
Rights from the United Nations), maintaining employee freedom of association and endeavoring to eradicate
violation of human rights. In terms of hiring, the Company prohibits all discriminatory behaviors during
employment, and does not discriminate against employees based on race, age, gender, sexual orientation,
disability, pregnancy, political affiliation, or religion. MediaTek also requires all employees to complete the
Sexual Harassment Prevention training, aiming to build up a diverse and inclusive workplace. All employees
must sign written labor contracts according to law. Work Rules clearly stipulate that there should be no incidence
of forced labor, and employee work hours are set in accordance with labor laws.
B. Employee Communication
nels, assistance
from managers and communication effectiveness evaluation. MediaTek has hosted communications conferences
and established an online communication platform, in addition to communications with supervisors from different
levels to meet the obj
assist employees in understanding the Company and its policies, and solving problems for employees and the
policies and campaign promotions, Hot Paper, the internal electronic newsletter, is issued on a monthly basis.
a timely manner. For example, AI Chatbot was introduced at the end of 2020, firstly to respond questions
regarding human resources and services. In addition, regular face-to-face meetings are held for employee
representatives to meet with top management to discuss and respond to major issues to achieve better mutual
understandings between employees and the Company and thus reaching cohesiveness.
C. Employee Cohesiveness
In addition to the formal communication channels, MediaTek also hosts various events such as corporate events
(year- -Autumn Festival
and Christmas), departmental activities (department family days, department outings and birthday celebrations),
group outings, club events, etc. These activities are designed to suit needs of different employee groups so that
we can have more participation from employees and their families and strengthen interaction and connection
between employees.
Take club promotion as an example, there were 63 employee clubs in total at the end of 2021 with over 25% of
employees participating in at least one club. Due to Covid-19, the enrollment scheduled in July 2021 was

suspended, but is expected to restart in 2022. MediaTek offers employees reimbursements and allowances to
effectively expand and extend the reach of clubs, which are highly valued as keys to employee cohesion and a
sense of community.
Besides these events, HRBPs also continue to strengthen the bond between employees and supervisors at the
business unit levels. Not only do the customized workshops, lectures and projects make business operations more
effective, but they also smoothen the communication between employees and supervisors.
D. Work Environment Safety and Employee Healthcare

The Environmental Safety and Health Policy is the highest guideline for the Company's environmental safety
management. In order to meet ISO 14001 and ISO 45001 requirements, MediaTek regularly conducts
environmental safety and health management system audits and publishes the environmental safety and health
policy on the internal website. In accordance with the "Education and Training Management Procedures", the
Company educates employees at all levels of the Company; and the contractors are required to comply with the
"Management Procedures for Contracting the Environmental Safety and Security", so that both internal and
external members can fully understand the environmental safety and security policy and ensure the relevance and
effectiveness of the continuous operation of the environmental safety management system.
MediaTek has provided high-quality health checks and post-check consultations to its employees for more than
16 years. Higher-risk groups such as senior managers, female staff and testing staff receive additional testing
items such as eyesight checks, mammograms, cervical smear tests, blood lead concentration tests, etc. The focus
is placed on preventive care so that effective treatments can be given before actual symptoms occur. On the other
hand, professional doctors health consulting service and clinical services are provided to offer employees reliable
medical information. Also, MediaTek provides each department exclusive medical session so that executives can
give appropriate medica
Moreover, as for physical wellbeing enhancement, MediaTek built onsite fitness centers at different office
buildings to cultivate the habit of regular exercise. An annual wellbeing enhancement event was held in 2021 and
MediaTek designed different programs targeting different employees who regularly, rarely or never exercised.
This event aims at helping the staff to develop regular exercise routines through exciting programs and teamwork.
Although all sports events were suspended in mid-May due to Covid-19, MediaTek continued to take care of
on the annual health analysis. The utilization rate for the various sports facilities at the Health & Lifestyle Center
(including a fitness center, badminton court, basketball court, table tennis room and aerobics room) reached 100%
after the ease of Covid-19 impact. MediaTek offers additional service hours at noon and on holidays to provide
more exercise opportunities for employees. The Company also hires blind masseurs recommended by Hsinchu
and Taipei Association of Blind Masseurs whose services are provided inside the fitness center.
With respect to mental healthcare, the Company not only establishes physical emergency relief measures to
relieve employees' mental stress when facing emergencies but also holds mental health lectures and mental stress
index assessment service. MediaTek also signed contracts with professional Employee Assistance Program to
allow employees access to professional mental and legal consulting and assistance without pressure while their
privacies are protected.
E. Employee Services
MediaTek provides employees with friendly and enjoyable working environment through overall policies and
lessen worries and meet personal needs. The Company continues to offer a working environment that is safer and
with higher quality, such as optimizing space and replacing old chairs. In addition, the indoor smoking area was
removed and relocate to outdoor in 2021.
The Company provides healthy, hygienic, and diversified food choices
There were over 20 eateries across headquarter buildings in 2021. Moreover, MediaTek continues to operate in
accordance with policies from the epidemic prevention team and adopts multiple measures to assure a safe dining
environment for employees.

F. Care for the Employees and Their Families
MediaTek not only established employee-friendly relationship policies and environment but also provides one-
on-one care and assistance to addr range from emergency
assistance (such as car accidents or family emergencies) and psychological counseling/referral. Employee care
systems and HR Business Partner closely observe departments and cond focus
group interviews, and random interviews on abnormal results, to identity the reasons and improvement actions to
help departments take necessary rectification measures to solve the problems.
Also, MediaTek understands that behind every hard-working employee, there is a supportive family. Therefore,
the Company takes the initiatives to extend company resources to family members of employees. Not only that
announced to set up in 2018. The first enrollment of the preschool took place in 2019 and has now entered the
third year. There are currently 135 students enrolled in the preschool.
G. Employee Welfare Committee

MediaTek has founded Employee Welfare Committee whose members represent and are nominated by each
department in accordance with the Organization Regulations on the Employee Welfare Committee. The purpose
of this committee is to oversee Employee Welfare Committee funds and to promote various benefits. MediaTek
has been allocating higher percentage of revenue than what is stipulated by law to sponsor Employee Welfare
Committee, allowing the Committee to offer benefits with more variety. At the same time, MediaTek takes
cohesiveness of each department and the flexibility of personal benefits into account, and set up departmental
allowances for interaction activities, birthday celebrations or family days. In 2019, MediaTek implemented
flexible welfare policy for the first time, allowing employees to apply the flexibility of the subsidy to five major
projects, truly reflecting the beauty and spirit of employee welfare.
H. Continuing Education and Training System

The Company provides a comprehensive training system for a challenging and learning environment to inspire
There are various
rank and nature of work:
a. Management Training System: Help managers develop their training blueprint based on skills required for
their positions.
b. Orientation: Orientation hosted by Human Resources Department helps new staff to better fit in the
workplace by learning company policies, corporate culture, working environment, etc.
c. General Training: Fundamental training sessions for employees in all departments and job functions are
held to meet regulatory and company policy requirements.
d. Technical Engineering Training: Provide various professional trainings and development programs for
engineers in accordance with different assignments they have and different phases they are at.
e. Professional Knowledge Training: Training designed for specific profession development according to
different specialty such as environmental safety, finance and accounting, human resources, information
technology, intellectual property, marketing & sales, quality assurance management, etc.
f. Personal Effectiveness Training: Help employees improve the personal skills and knowledge needed for
daily assignments, cultivate different capabilities and enhance working effectiveness.
g. Language Training: Based on provide different levels of English learning
programs to help them utilize English at work and thus enhance global competitiveness.
h. External Training: Enhance employee quality and skills to help business development and complement
insufficiency of internal trainings.

Results of education and training in the latest fiscal year are as follows:
2021 Jan. 1 to Feb. 28, 2022
Numbers
Categories Number of Numbers of Total cost Number of Total cost
Hours of Hours
classes attendees (NT$) classes (NT$)
attendees
Management Training 132 3,069 17,911 11 287 3,866
System
Orientation 169 3,426 11,936 30 538 1,462
Technical/engineering 134 4,504 15,974 8 543 2,961

training
1,376
73 2,624 12,225 49,603 thousand 2 17 142
Personal effectiveness thousand
Language training 53 1,639 26,526 3 177 4,159
External training 518 518 16,410 38 38 1,716
Total 1,079 15,780 100,981 92 1,600 14,306
I. Retirement System
Retirement plans in domestic and international business sites were set in accordance with local regulations.
MediaTek provides defined benefits plans under the Labor Standards Act, and defined contribution plans under
the Labor Pension Act. There were 99.2% of employees applied to defined contribution plans and 0.8% of
employees still applied to defined benefits plans (namely rules in accordance with Labor Standards Act) in 2021.
Under the Labor Standards Act, MediaTek provides pension based on an emplo
average monthly salary for the six-month period prior to retirement. The contribution amount equals to 2% of
salaries paid each month and is deposit in Bank of Taiwan under the name Supervisory Committee on Labor
Retirement Funds. Under the Labor Pension Act, M
pension account under Bureau of Labor Insurance. The contribution amount equals to at least 6% of each
ined contribution plans were 2,068 million
NTD in 2021.
In addition to the pension reserve required by law, MediaTek also conducts actuarial calculation on pension
reserve through qualified actuaries and contributes pensions and recognizes reserve as a pension liability on
1.2. Supplier Management

As a technology leader in the semiconductor industry, MediaTek is at the forefront of the value chain IC design.
Subsequent processes such as raw material procurement, OEM, packaging and testing are all conducted by
suppliers, forming a partnership based on each firm's expertise. However, we have realized that the key impact
and influence on society and environment comes from our suppliers upon conducting risk evaluation and carbon
footprint verifications. Hence, how to partner with our suppliers to reduce potential risks on the society and
environment has become our top priority.
We commenced the CSR audit in 2016. In addition to requiring suppliers to sign a CSR guarantee statement,
MediaTek also manages effectiveness of supplier's sustainability actions through the EICC - ON online
management system. Moreover, MediaTek also autonomously produced an EICC training course for all suppliers
to assist them in better understanding and complying with relevant regulations. We hope to effectively exert the
influence we have as industry leader, and collaborate with suppliers to work toward sustainable business models.
To build a long-lasting, stable partnership with suppliers and achieve the vision of sustainable development,
MediaTek has incorporated standards and proposals that fall under the three primary perspectives of economy,
society and environment into our scope of sustainable management of suppliers, aiming to regulate potential risks
and uncover potential market opportunities.
From an economic perspective, besides the basic factors of meeting deadlines, production capacity, service, and
quality, we also require that suppliers remain in compliance with the IATF16949 quality management system for
the automobile industry in coordination with MediaTek's strategic planning for the IoT market, and for joint
developments in the Internet of Vehicle (IoV) market. From an environmental perspective, we require suppliers
to introduce the ISO 14001 and QC080000 Environmental Management System. We also strive to ensure that
suppliers do not use hazardous substances. We assess suppliers by complying with national regulations in
different countries, Sony Green-Partner and QC080000 standards for the product safety requirements from
international customers. From the social aspect, we ensure that suppliers fulfill their social responsibility, comply
with international labor rights, and provide a healthy and safe work environment according to the RBA Code of
Conduct, SA8000, and ISO 45001 standards.
MediaTek performs supplier risk evaluations from economic, environmental and societal perspectives in order to
investigate each supplier's standards under these perspectives and identify potential risks. Step 1: Suppliers
undertake self-assessments to ensure their levels of compliance for each indicator and provide supporting
materials. Step 2: MediaTek performs assessments and on-site audits to confirm the data against the self-
assessments and supplemental information from suppliers and ensure the completeness and accuracy of the data.
2. Social Participation
2.1. Science Education and Academic Support
2.1.1. National Elementary School Science Project Award
MediaTek Foundation was founded by MediaTek in 2001 and taking technology talent fostering as its core
mission. Since 2011, it has started a series of activities to support elementary school students to develop
inquisitive spirit toward science projects, held teacher training camps, science project awards, donated popular
science education books, and provided reserved quota for schools from remote area to encourage more students
to explore the field of science. Until 2021, MediaTek foundation has encouraged over 26,000 students to
participate in science activities to learn its mystery, laying the foundation for Taiwan's technological
competitiveness from elementary school.
a long-term companionship program for
screening process for science project

county and city
s for teachers and students to invest themselves
in science projects without worries.
A total of 96 projects were received in 2021, among which, 40 projects (35 schools) were selected after initial
screening process and 40% were reserved for students in remote or disadvantaged schools. 35 Projects won the
County/City Science and Technology Exhibition Awards, and 10 projects won the National Science and
is aiming to
support students in schools lacking related resources to have the opportunity to present their science projects in
national competition. With the 40% of rural schools being supported, the works have earned the positions to
compete in county and city science exhibitions and national science exhibitions, including Chiayi Da-Shiang
Elementary School (83 students in the school) won the first place in earth science in the county and city
competition, and Kinmen Jinhu Elementary School (601 students in the school) won the first place in chemistry,
Changhua Tong An Elementary School (46 students in the school) won the second place in applied science of
living, and Keelung Badou Elementary School (465 students in the school) won the third place in biology in the
national competition, and Kinmen Chung Cheng Elementary School (1125 students in the school) won the second
place in applied science of living.
The teachers training camp for science project in the second stage was held online due to Covid-19 and 67 teachers
were participated. The students under their lead were nearly 200.
In the promotion plan for science reading in the third stage, 50 science books were provided to inspired students
to learn more about science. Under this plan, 1,365 response cards were received and 1,201 people participated
in sharing with friends and family. Some schools even further held science reading events to spread science
knowledge to the whole school.
In addition, MediaTek Foundation cooperated with the Science Education Center to sponsor the National Science
and Technology Exhibition Enterprise Award -

encourage junior and senior high school science projects to demonstrate more everyday applications. MediaTek
also held a master lecture at 2021 Taiwan SciFest. Professor Chou Yi Chia, the winner of Up-and-Coming Star
in UNESCO Awards For Women in Science, was invited to give a lecture on "Girl Power Exploring New
Science from the World of Atom". 230 people participated in the event.
2.1.2. Program
Based on the teacher training programs started from 2017, MediaTek initiated the first STEM program in 2021
to further extend the influence into elementary and junior high schools. This program encourages elementary and
junior high school teachers who are enthusiastic about science education to create distinctive applied science
lectures that introduce program design and IoT to help students build key capabilities and explore the possibilities
of science in life.
The STEM program provides summer workshops to strengthen the technology and teaching capabilities of
science teachers. It offers up to 50 thousand NTD of subsidies that can be utilized flexibly based on demand from
each school due to difference
development and provides up to 8 thousand NTD of subsidies for personal research on introducing new lectures
and new technologies. Another 10 thousand NTD of subsidies will also be granted to teachers who lead students
to participate in national applied science competitions that are held by the government during the program period.
With various inventive plans, STEM program should be the backbone for teachers with new ideas and attempts.
The program assisted 29 elementary and junior high schools in establishing official science classes or clubs in
2021, and has assisted 45 official classes, 14 clubs in total, covering 496 students in junior high schools and 1,006
students in elementary schools. It is expected to expand to 455 students in the second semester of 2021, a total of
1,987 students.
2.1.3. Teamed up with Taiwan Science and Education Museum and Department of Electrical Engineering, National
Taiwan University to hold Young TITC AI High School Camp
In view of the increasing importance of AI applications, the rooting of AI talents also requires the joint investment
resources of enterprises, academia, and the public sector. Therefore, together with the Taiwan Science and
Education Museum and the Department of Electrical Engineering of National Taiwan University, the first Young
Talent Intelligence Technology Camp (TITC) was held in the summer of 2019. The Camp enrolls students
equipped with programing capabilities to join a six-day camp during the summer vacation, plus after-school
return coaching and results announcement, in hope to cultivate future AI talents. In addition to professional
software and hardware implementation, the course also brings demonstrations of industrial technology into
electronic module, sensor and calculator application implementations, so that the participants can take the lead in
experiencing and learning about the new generation AI technology. Through the actual operations including
number guessing games, 8 puzzle games and Othello games, the camp also achieves the effect of edutainment,
where participants learn the correct understanding while welcome the new generation, and acquire multiple
technology capabilities needed in the future, as well as important concepts and applications of smart technology.
In 2021, the 3rd Young TITC enrolled 33 high school students and 2 junior high school students. To expand the
depth of the Camp, after the projects from the Camp were published, 20 projects (24 students in total) were
selected for follow-up training. Experts and scholars were matched to give one-on-one tutoring, and students
were encouraged to register for 2021 Taiwan International Science Fair. The students have achieved remarkable
results. A total of 17 out of the 20 projects have been trained to register for the Taiwan International Science Fair,
and 11 have passed the preliminary review with 8 of which were under Computer Science and Information. Nearly
50% of projects in that category were proposed by students from the Camp.
2.1.4. Establish the MediaTek Fellowship

MediaTek Fellowship was established in 2001, which holds the value proposition that knowledge can drive a
better future. In order to promote academic technology research and encourage/help graduate students who have
ambition to pursue a doctoral degree domestically, from 2002, MediaTek Fellowship started to reward
outstanding electric engineering and information technology graduate students to pursue a doctoral degree
domestically to cultivate future domestic technology research and education talents and thus to enhance the

Since 2002, 63 students from universities such as NTU, NTHU and NCTU have received the fellowship, each
receiving NT$35,000~NT$50,000 per month for 48 months at most. The Fellowship allows the students to
dedicate themselves to fundamental research without worries. There were 3 doctoral degree students fulfilled the
fellowship term in 2021. Some of the fellowship recipients have entered the industry or academia and begun
making contributions in the field of research.
2.1.5 Partnership with Academia and Research Publications

MediaTek has had 85 papers published on International Solid-State Circuit Conference (ISSCC) up until 2022,
the only company in Taiwan that has been selected for publication for 19 consecutive years. The 2 papers
published this year focused on the audio decoder and the high-performance ARM v9 CPU. The audio decoder
reached ultra-high motion range of 126dB and ultra-low distortion of -117dB, applicable to Metaverse devices
with rich 3D audio effects and flagship smartphones with stereo level. The flagship smartphone ARM v9
processor adopted 5nm process node. A CPU subsystem equipped 3 computing levels and a clock rate of 3.4GHz
was embedded with 27% of improvement in performance. ISSCC is the best place for the technical exchange of
industry, academia and research experts of international semiconductor and SoCs. MediaTek has had papers
selected every year for more than a decade. The research and development capabilities of the company are being
seen.
In addition, MediaTek has started the higher education industry-academia cooperation since 2002 through
MediaTek Advanced Research Centers (MARC). From 2013, the Company has built MediaTek innovative
research centers in National Taiwan University, National Tsing Hua University and National Yang Ming Chiao
total funding has exceeded 1 billion NTD in the past 20 years. The schools joined collaborated have expanded
from National Taiwan University, National Tsing Hua University and National Yang Ming Chiao Tung
University to Nation Cheng Kung University, National Chung Cheng University and National Taiwan University
of Science and Technology. In addition to the collaboration with top universities in Taiwan, the Company has
cooperated with more than a dozen of well-known international universities in the past 10 years, such as Harvard,
MIT and USC. According to different developments in the technical field, various forward-looking technology
developments are conducted with different international universities respectively to quickly integrate with
international standards.
After Executive Yuan enacted National Key Fields Industry-University Cooperation and Skilled Personnel
Training, to further respond to the key fields promoted by the government to solidify the core position in the
global semiconductor value chain, MediaTek founded respective research centers in National Taiwan University,
National Tsing Hua University and National Yang Ming Chiao Tung University at the end of 2021, with millions
of dollars invested in the three centers every year. In accordance with the need for talent cultivation, MediaTek
design knowledge to the academia. With rich industrial experiences, the Company hopes to cultivate students to
adapt to the fast-changing industry and obtain the latest technology information.
W
greatly increased fields related to AI applications and 6G. MediaTek also participates in various academic
research institutions, such as MIT CSAIL Lab, Khronos Group, Taiwan Semiconductor Association, Taiwan
Semiconductor Industry-University R & D Alliance, National Taiwan University System Chip Center, etc. This
year, the Company also joined Semiconductor Research Corporation (SRC), which is an important global
semiconductor organization that has been established for more than 40 years. SRC offers billions of USD to the
academia for various forward-looking semiconductor research, with efforts from Intel, AMD, IBM, Micron,
Qualcomm, TI, TSMC, Samsung, ARM and the government and academic units of the United States. MediaTek
C).
Under the current international circumstance and technology developments, MediaTek focuses on the core
business and invests more resources in the higher education in Taiwan to cultivate more high quality talents to
help corporates in Taiwan better face challenges in the World.

2.2. Community Innovation
2.2.1. Genius at Home Digital Social Innovation Competition
can be changed through technology, more connected with the world and everyone is potentially capable of
in 368 local townships in Taiwan to make a difference for their hometowns by innovatively applying technology
to make improvements and hence influence the society.
In 2021, 455 teams registered for the competition with over 1,800 participants, breaking the record. The
improvement proposals were made for 200 townships in 22 cities and counties in Taiwan, including Kinmen,
Matsu and Lanyu. The proposals touched on many fields, such as exercise, medicine, placemaking, ecosystem,
education, environmental protection and social care. Needs from the society including public health and epidemic
prevention, digital education, and e-commerce for supplies have also become fields for improvement post Covid-
In addition to
advocating social innovation and calling on the public for participation, MediaTek actively led the value creation
and provided training and coaching mechanisms for the 21 teams in the finals. The Company not only assigned
21 level-one managers as technical consultants of the teams, but also provided guidance from the perspective of
technical thresholds, organizational effectiveness, financial advice, etc. Six professional professors in the field of
design thinking were also invited as the mentor of the finalist team. Two months of training were provided by
both the consultants and mentors. In September 2021, 6 workshops were held in Taipei, Tainan and online to help
the teams refocus the pain points, review the effectiveness of the proposal and find out the direction for
improvement.
The competition eventually selected one group for the one-million first prize, three groups for excellence prize
and five groups for special prize. The first prize team, Disaster Prevention Team across Time and Space, focused
on Wulai District in New Taipei City and conducted potential disaster evaluation through integrating radar
satellite earth observing system, IoT environmental sensors and disaster monitoring APPs, as well as the
experiences and knowledge long accumulated from local residents. It is expected that with the platform, people
and the government will be able to sense disasters and take preventive measures earlier.
The competition has entered its fourth year, and the winning teams in the past two years can apply for local
implementation to fulfill the projects. With guidance for technology, business model and support from rewards,
there are 9 teams entering the local implementation stage.
encourage the social innovation through -one management was
to provide people with the heart to change society and create better future. This is also the implementation of
2.2.2. Support the 2021 NASA hackathon and encourage people to use AI technology to solve earth problems
In order to encourage co-building a better future for earth through technology, MediaTek supported the
.
From seeking solutions from data provided by NASA, this award would be presented to 4 projects with foresight,
technology capabilities and application potentials.
2.3. Charity and community participation

2.3.1. In Memory of President Mr. Chiung-Lang Liu - Sponsor IC Radio Broadcasting Program and Book Donation
Events
Identifying with the spirit of equality of arts and science from Mr. Chiung-Lang Liu, the president of National
Tsing Hua University, MediaTek exclusively sponsors a program broadcasting on IC Radio hosted by the former
president Mr. Chiung-Lang Liu. In 2021, 78 episodes was recorded and broadcasted with a total audience of 890
thousand and click rate of 2,448.

To continue to promote the spirit of the President and encourage junior high and high school students to read and
write, MediaTek held a series of reading events in 2021 and donated a total of 244 sets of books (2,928 books) to
129 schools, including 116 schools in Hsinchu/Miaoli region and 13 schools in other cities and counties. 2 sharing
and guiding reading events were hosted in remote schools in Hsinchu by volunteers in the reading and writing
teaching team. There were 195 articles solicited with 20 of which winning the excellence award and 10 winning
the honorable mention award.
2.3.2. Greater Chao Nan Project

The MediaTek Foundation has partnered with Lovely Taiwan Foundation on the "Greater Chao Nan Cultivation
Plan" in Pingtung, that aims to preserve local culture through education with the introduction of resources for arts
and humanities and popular science education. The Greater Chao Nan Cultivation Plan is a four-year scheme that
has gradually launched four initiatives including "Chao Academy", "Agriculture@ChaoNan", "Blue Sky
Classroom", and "Slow-Touring the Greater Chao Nan Region." The initiatives are in hopes of weaving the
natural and human cultural of Chao-zhou and Nan-zhou in Pingtung and accumulating the beauty and goodness
of Taiwan. 2021 marked the second year of the four-year scheme. A total of 710.5 hours of classes across the
four initiatives were arranged and benefitted 979 people.
2.3.3 Volunteering
The Company always encourages employees to interact with the society and engage in volunteering, including
interacting with the Ren-Ai Special Education Center in 2003, planting organic vegetables with Hua-Kuang
Special Education Center in 2004, participating in greening, cleaning and arrangement of Morning Light School
- Beautiful Green World event with regard to International Day of
the Blind in 2006, and providing various volunteer services in the 12 elementary schools in rural Hsinchu from
2007. The Company organized to set up Volunteer Club in 2011 to further promote the volunteering spirit to the
Company level. And employees have since been proactively organized events to expand fields of care, including
caring elders in nursing homes, visiting orphanage or participating in activities held by social welfare
organizations, accompanying disadvantaged children, etc. MediaTek continuously provides aid and care for
disadvantaged groups and expands the spirit of social contribution actively through long-term volunteering
services held by the employees.
MediaTek has launched annual volunteering leave since 2015, encouraging employees to participate in
contributing to the society and care for the groups in need. The Company also started organizing volunteers to
engage in science education promotion, reading program in remote areas and charity events to make contribution
to society. In 2021, there were three teams with a total of 52 volunteers participating in 1,416 hours of services
and benefitted 769 people. In particular, the reading and writing team published selected articles of children for
the third year with 52 volunteers joining the service program of National Yang Ming Chiao Tung University to
develop online article correction platform. There were 14 schools benefitted from the volunteer service, including
Dahu, Shui-Yuan, Ching-Tsao-Hu and Gau-Feng elementary schools in Hsinchu City; Baoshan, Bei-Pu, Dung-
Hai, Po-Ai, Shi-Hsing and Liu-Jia elementary schools in Hsinchu County; Dong-He elementary school in Miaoli
County; Tong-An and Ping-He elementary schools in Changhua County.
2.3.4 Environmental Activities

MediaTek not only engages in public welfare businesses but also cares about environmental issues. It has been
actively involved in various environmental activities such as personal cutlery for all employees and reduced use
of disposable cutlery. Due to Covid-19, the Company initiated the environmental protection paper lunch box
measure to sort all paper lunch boxes into the recycle system. In addition, the Company also set up charging
stations in the parking lot of headquarter to contribute to energy sustainability.
3. Environmental Efforts
MediaTek continues to promote various environmental protection activities as well as energy-saving and carbon-reduction
measures. In addition to winning the national awards of the "Enterprise Environmental Protection Award" and the "Energy

Conservation Standard Award" in 2018, the Company has been receiving higher scores in environmental protection in the
Corporate Citizen Award since 2017.
MediaTek passed ISO 14064-1 GHG emission verification in 2020 and 2021 and passed ISO 50001 energy management
system verification in 2021.
3.1. Long-Term, Mid-Term and Short-Term Goals

3.1.1. Short-Term Environmental Goals
The short-term goals are to implement green product design, packaging, and procurement to reduce waste in
resources and energy, as well as participate in international environmental activities.
3.1.2. Mid-Term Environmental Goals

The mid-term goals are t
environmental awareness. Through recycle and reducing the use of resources, employees are encouraged to
identify with environmental protection and to value the precious natural resources. MediaTek also holds energy-
saving and carbon-reduction activities for employees on an ad-hoc basis.
3.1.3. Long-Term Environmental Goals

The long-term goals are to fully comply with regulatory environmental rules and to implement environment
protection and occupational safety and sanitation system. Also, the Company regularly reviews execution result
and improves continuously.
3.2. -Savings Measures and Results

MediaTek believes that being environmentally friendly and reducing the carbon footprint is part of its social
3.2.1. Efforts in energy reduction
A. IT Facility Energy-Saving Management

MediaTek improves the air conditioning environment and conducts system control in the equipment room to
reduce air conditioning waste. The Company has also built new IT facilities with new energy-saving
technologies. The annual saving in 2021 was approximately NT$32.15 million.
A.
increases environmental temperature as well as conducts system control to reduce air conditioning waste.
In addition, the Company replaces traditional fluorescent lamp with LED lighting to generate air
B. New high-density data center is built by new power-saving technologies, which has better power usage
effectiveness (PUE) compared to the traditional IT facilities. The annual saving was NT$28.35 million.
B. Office Area Air Conditioning Energy-Saving Management

MediaTek selects energy-saving system equipment and continues to improve the control system requirements
to reduce air conditioning waste. The annual saving in 2021 was approximately NT$13.15 million.
A. MediaTek selects VAV air conditioning system, which conserves significant energy in air ventilation.
Compared with the traditional AC control system, the new system can save 15~30% of power, equivalent
to about NT$5.68 million in savings.
B. MediaTek adjusts water cooling control system from fixed flow to variable flow, so the required volume of
cooled water, the number of active air conditioners and the operation time of air conditioners can be
adjusted accordingly, with approximately NT$ 2.01 million in savings.
C. MediaTek adjusts
operation hours, loaded on/off frequency, etc. into account. Making group machines run parallelly can also
reduce the number of active machine and thus save energy. The annual saving was approximately NT$2.21
million.
D. MediaTek implements air conditional power saving measures in office areas and water cooling machine
rooms. The Company increases temperatures of environment and chilling water as well as lowers the

number of active air conditioners and operation time, to achieve energy-saving without affecting equipment
ation. The annual saving was approximately NT$3.25 million.
C. Office Lighting Energy-Saving Management

MediaTek continues to introduce energy-saving lighting equipment and takes several measures, including
lowering lighting consumption and shortening lighting time. The annual saving in 2021 was approximately
NT$15.2 million.
a. Without affecting driving safety, MediaTek halves the lighting units in parking lots and undertakes
systematic reductions in lighting in non-peak hours. In addition, it limits parking to one floor during
holidays and turn off lighting in unused floors to save energy with an annual saving of approximately
NT$2.24 million.
b. MediaTek replaces traditional fluorescent lamp with LED lighting in staircases, parking lots, equipment
rooms, shortens lighting time, and uses only LED lighting in the newly-setup office areas to save energy,
with an annual saving of approximately NT$12.96 million.
D. Equipment Improvement to Save Energy

MediaTek improves equipment hardware and optimizes conditions of systematic operation to lower power
waste and save energy with an annual saving of approximately NT$4.01 million in 2021.
a. MediaTek conducts power-saving in testing areas and warehouse by adjusting temperature and humidity
control settings, including lowering output pressure of dry oil, increasing temperature settings, adjusting air
conditioner control, lowering parameters of temperature system, etc. to save energy with an annual saving
of approximately NT$1.89 million.
b. -cooled to
water-cooled to save energy with an annual saving of approximately NT$0.63 million.
c. MediaTek uses modularized UPS for traditional IT facility expansion. Compared to the original standalone
system, UPS can increase electricity conversion efficiency by about 15% to save energy with an annual
saving of approximately NT$1.49 million.
E. Fee Reduction Management

MediaTek changes calculation for electricity fees from two-tier to three-tier and continues to review and track
the differences between the power usage contract and fluctuations in electricity fees, as well as the continued
benefits of power conservation since changing to three-tier pricing. The annual saving in 2021 was
approximately NT$8.47 million.
The Company reduced 10,794 tons and 6,922 tons of carbon dioxide emissions in 2021 and 2020, respectively
(a savings of 21,500,000 kWh and 13,600,000 kWh). The calculating standard of the aforementioned carbon
dioxide emissions is based on the release of Bureau of Energy, Ministry of Economic Affairs. The 2021
statistics was based on electricity emission coefficient that 1 kWh of electricity emission is equal to 0.502
kilogram of carbon dioxide, while the 2020 statistics was based on 0.509 kilogram of carbon dioxide.
3.2.2. Efforts in Water Saving

A. The Company replaces traditional faucets/toilets with water-saving faucets/toilets. Usage of water was reduced
by approximately 2,480 tons in 2021 and carbon emission was reduced by 377 kg/CO 2e.
B. The Company implements a rainwater collection storage tank. Approximately 830 tons of rainwater was
collected in 2021 for cooling water towers and watering plants. Carbon emission was reduced by 126 kg/CO2e.
C. Approximately 16,257 tons of condensed water and RO water was recycled for gardening and approximately
2,471 kg/CO2e of carbon emission was reduced in 2021.
3.2.3. Waste Management and Recycling

For the purpose of achieving the maximum benefits of effective waste management and recycling, MediaTek
focuses on the reduction of waste. The Company effectively sorts out, recycles, re-uses, and properly disposes
waste, and continues to limit the impact from storage, transportation, and processing of waste have on the
environment. In order to effectively control the flow of waste, we have carefully selected qualified waste disposal
and recycling suppliers, as well as audited the legitimacy of the waste disposal process randomly to take
responsibility for supervising waste management.
3.2.4. In-Door Air Quality Management
Automatic carbon dioxide monitoring systems are installed in the office area, and environmental inspection is
conducted every six months to ensure air quality, and all inspection results should be compliant with the indoor
air quality standard of 1,000 ppm.
3.2.5. Green Transportation

A. The Company leases large buses to transport employees to and from work through four main routes.
B. The Company provides a cross-plant shuttle bus every 20 minutes, and has changed to electric shuttle bus
since July 2019.
C. The Company sets up 10 M-Bikes for colleagues to ride across plants.
D. The Company provides two electric motor vehicles for business use.
The annual green transportation mileage exceeds 970,000 kilometers.
3.2.6. Others:
The Company continues to promote perspectives and polices for environmental protection, including electricity
and water saving, recycling and respond to activities held by government and environmental groups.
3.3. Environment Safety Management

A. Monitor the operation a
system and air-conditioning system around the clock.
B.
C. Conduct labor safety and sanitation training for new employees on a monthly basis.
D. Conduct
emergency management capabilities on a yearly basis.
E. Authorize SGS to audit the Compan
F. Promote traffic and working safety-related concepts and items on an ad-hoc basis.

1. Financial Status
1.1. Consolidated Report
Unit: NT$ thousands
Item 2020 2021 Change % of Change
Current Assets 291,862,293 346,864,726 55,002,433 19
Funds and Investments 116,766,859 128,123,366 11,356,507 10
Property, Plant and Equipment 38,971,343 49,111,180 10,139,837 26
Intangible Assets 76,271,667 73,525,649 (2,746,018) (4)
Other Assets 10,034,165 63,251,827 53,217,662 530
Total Assets 533,906,327 660,876,748 126,970,421 24
Current Liabilities 143,798,425 211,106,280 67,307,855 47
Non-current Liabilities 15,023,451 16,122,574 1,099,123 7
Total Liabilities 158,821,876 227,228,854 68,406,978 43
Common Stock 15,902,755 15,988,903 86,148 1
Capital Surplus 76,745,750 59,776,045 (16,969,705) (22)
Retained Earnings 217,635,230 302,649,721 85,014,491 39
Other Equity 61,606,056 53,656,597 (7,949,459) (13)
Treasury Shares (55,970) (55,970) - -
Non-controlling Interest 3,250,630 1,632,598 (1,618,032) (50)
Total Equity 375,084,451 433,647,894 58,563,443 16
Explanation for changes that exceed 20% and reached NT$10 million in the past two years:
(1) Increase in property, plant and equipment: Mainly due to acquisition of land, buildings and computer communication equipment.
(2) Increase in other assets: Mainly due to contract prepayments.
(3) Increase in current liabilities: Mainly due to increase in short-term debt and other payables.
(4) Decrease in capital surplus: Mainly due to capital surplus paid as cash dividend.
(5) Increase in retained earnings: Mainly due to increase in annual net profit.
(6) Decrease in non-controlling interest: Mainly due to change in ownership in subsidiaries.

1.2. Parent Company
Unit: NT$ thousands
Current Assets 143,621,071 154,562,926 10,941,855 8
Funds and Investments 244,691,569 316,693,591 72,002,022 29
Property, Plant and Equipment 20,388,079 29,877,083 9,489,004 47
Intangible Assets 58,505,350 57,272,022 (1,233,328) (2)
Other Assets 6,139,793 37,871,610 31,731,817 517
Total Assets 473,345,862 596,277,232 122,931,370 26
Current Liabilities 93,079,755 146,384,287 53,304,532 57
Non-current Liabilities 8,432,286 17,877,649 9,445,363 112
Total Liabilities 101,512,041 164,261,936 62,749,895 62
Common Stock 15,902,755 15,988,903 86,148 1
Capital Surplus 76,745,750 59,776,045 (16,969,705) (22)
Retained Earnings 217,635,230 302,649,721 85,014,491 39
Other Equity 61,606,056 53,656,597 (7,949,459) (13)
Treasury Shares (55,970) (55,970) - -
Total Equity 371,833,821 432,015,296 60,181,475 16
(1) Increase in funds and investments: Mainly due to change in financial assets at fair value through profit or loss.
(2) Increase in property, plant and equipment: Mainly due to acquisition of land and computer communication equipment.
(3) Increase in other assets: Mainly due to contract prepayments.
(4) Increase in current liabilities: Mainly due to increase in short-term debt and other payables.
(5) Increase in non-current liabilities: Mainly due to increase in long-term account payables.
(6) Decrease in capital surplus: Mainly due to capital surplus paid as cash dividend.
(7) Increase in retained earnings: Mainly due to increase in annual net profit.

2. Operating Results
Unit: NT$ thousands
Net Sales 322,145,988 493,414,582 171,268,594 53
Operating Costs 180,610,472 261,809,987 81,199,515 45
Gross Profit 141,535,516 231,604,595 90,069,079 64
Operating Expenses 98,316,277 123,564,361 25,248,084 26
Operating Income 43,219,239 108,040,234 64,820,995 150
Non-Operating Income and Expenses 4,363,447 18,811,819 14,448,372 331
Net Income before Income Tax 47,582,686 126,852,053 79,269,367 167
Income Tax Expense 6,144,113 14,979,520 8,835,407 144
Net Income 41,438,573 111,872,533 70,433,960 170
Other Comprehensive Income, net of tax 31,140,808 3,804,201 (27,336,607) (88)
Total Comprehensive Income 72,579,381 115,676,734 43,097,353 59
Net Income Attributable to Owners of the 40,916,800 111,421,062 70,504,262 172

Parent
Total Comprehensive Income Attributable to 72,047,329 115,241,937 43,194,608 60
Owners of the Parent
(1) Increase in net sales: Mainly due to increase in 5G SoC shipment.
(2) Increase in operating costs: Mainly due to increase in net sales.
(3) Increase in gross profit: Mainly due to better product mix.
(4) Increase in operating expenses: Mainly due to increase in R&D expenses.
(5) Increase in non-operating income and expenses: Mainly due to increase in dividend income and gains on disposals of investments.
(6) Increases in operating income, net income before income tax: Mainly due to increase in net sales.
(7) Decrease in other comprehensive income, net of tax: Mainly due to decrease in share of profit or loss of affiliate companies and
joint ventures accounted for using equity method.
(8) Increases in total comprehensive income, net income attributable to owners of the parent and total comprehensive income
attributable to owners of the parent: Mainly due to increase in net income.

2.2. Parent Company
Unit: NT$ thousands
Net Sales 168,337,908 305,571,342 137,233,434 82
Operating Costs 94,346,514 174,236,062 79,889,548 85
Gross Profit 73,991,394 131,335,280 57,343,886 78
Unrealized Gross Profit on Sales (41,711) (566,377) (524,666) 1,258
Realized Gross Profit on Sales 115,258 163,622 48,364 42
Net Gross Profit 74,064,941 130,932,525 56,867,584 77
Operating Expenses 58,107,793 79,255,447 21,147,654 36
Operating Income 15,957,148 51,677,078 35,719,930 224
Non-Operating Income and Expenses 27,677,569 69,227,264 41,549,695 150
Net Income before Income Tax 43,634,717 120,904,342 77,269,625 177
Income Tax Expense (Income) 2,717,917 9,483,280 6,765,363 249
Net Income 40,916,800 111,421,062 70,504,262 172
Other Comprehensive Income, net of tax 31,130,529 3,820,875 (27,309,654) (88)
Total Comprehensive Income 72,047,329 115,241,937 43,194,608 60
(1) Increase in net sales: Mainly due to increase in 5G SoC shipment.
(2) Increase in operating costs: Mainly due to increase in net sales.
(3) Increase in gross profit: Mainly due to better product mix.
(4) Increase in unrealized (realized) gross profit on sales: Mainly due to increase in transactions between affiliated companies.
(5) Increase in operating expenses: Mainly due to increase in R&D expenses.
(6) Increase in non-operating income and expenses: Mainly due to increase in share of profit or loss of subsidiaries, affiliate
companies and joint ventures accounted for using equity method.
(7) Increases in operating income, net income before income tax, income tax expense and net income: Mainly due to increase in net
sales.
(8) Decrease in other comprehensive income, net of tax: Mainly due to decrease in share of profit or loss of subsidiaries, affiliate
companies and joint ventures accounted for using equity method.
(9) Increase in total comprehensive income: Mainly due to increase in net income.

3. Cash Flow Analysis
Unit: NT$ thousands
Net Cash Provided by
Cash Balance Net Cash Outflows from Investing Impact of Foreign Cash Balance Remedy for Cash Shortfall
Operating Activities in
Dec. 31, 2020 and Financing Activities in 2021 Exchange Ratio Dec. 31, 2021 (Investment & Financing Plan)
2021
$196,579,745 $47,094,744 $(56,875,776) $(3,094,119) $183,704,594 -
3.1.1 Analysis of the Change in Cash Flow in 2021

Operating activities: Net cash inflow of NT$47,094,744 thousand, mainly from operating profits.
Investing activities: Net cash outflow of NT$ 28,924,484 thousand, mainly due to acquisition of property and
equipment, and increase in refundable deposits.
Financing activities: Net cash outflow of NT$ 27,951,292 thousand, mainly due to distribution of cash
dividend.
3.1.2 Remedial Actions for Cash Shortfall

The Company has ample cash on-hand; remedial actions are not required.
3.1.3 Cash Flow Projection for Next Year

Not applicable.
3.2. Parent Company

Unit: NT$ thousands
Cash Balance Net Cash Provided by Net Cash Outflows from Investing and Cash Balance Remedy for Cash Shortfall
Dec. 31, 2020 Operating Activities in 2021 Financing Activities in 2021 Dec. 31, 2021 (Investment & Financing Plan)
$96,917,833 $48,779,819 $(74,348,282) $71,349,370 -
3.2.1 Analysis of the Change in Cash Flow in 2021

Operating activities: Net cash inflow of NT$48,779,819 thousand, mainly from operating profits.
Investing activities: Net cash outflow of NT$45,655,158 thousand, mainly due to capital increase of subsidiary
and acquisition of property and equipment.
Financing activities: Net cash outflow of NT$28,693,124 thousand, mainly due to distribution of cash dividend.
3.2.2 Remedial Actions for Cash Shortfall

The Company has ample cash on-hand; remedial actions are not required.
3.2.3 Cash Flow Projection for Next Year

Not applicable.

4. Major Capital Expenditure
4.1. Major Capital Expenditure and Sources of Funding
Unit: NT$ thousands
Status of Actual or Projected Use of
Actual or Planned Source of Estimated Capital Requirement Capital
Plan
Capital (2021 and 2020)
2021 2020
Fixed Assets - Land, Office Building and Cash flow generated from
R&D Equipment operation $21,985,034 $16,985,369 $4,999,665
Intangible Assets - Software, IPs and Cash flow generated from
Patents operation $10,238,921 $4,998,345 $5,240,576
4.2. Expected Future Benefits

1. Fixed Assets - Land and office buildings:
and well-planned space is necessary for attracting
talents to develop new products.
2. Fixed Assets - R&D equipment:

R&D e
development cycle.
3. Intangible assets: Software, IPs and patents:

It is necessary for the Company to strengthen its patent protection in order to navigate the current competitive
landscape, which is often mired in complex patent disputes. The Company has continued its efforts to obtain
high-v to many of the
5. Investment Policies
nvestments focus on long-term strategy and financial return. Investment profit from equity
method investment in 2021 was NT$978,482 thousand. The Company will continue to evaluate investment plans
prudently under the aforementioned policy.
6. Risk Management
6.1. Risks Associated with Interest Rate Fluctuation, Foreign Exchange
Volatility, and Inflation
Risks associated with foreign currency:
operating activities (when revenue or expense are denominated in a different currency from the
functional currency) and The Company reviews its assets
and liabilities denominated in foreign currency and enters into forward exchange contracts to hedge the exposure
from exchange rate fluctuations. The level of hedging depends on the foreign currency requirements from each
operating unit. As the purpose of holding forward exchange contracts is to hedge exchange rate fluctuation risk,
the gain or loss made on the contracts from the fluctuation in exchange rates are expected to mostly offset gains
or losses made on the hedged item. The foreign currency sensitivity analysis of the possible change in foreign
inated in foreign
volatility in the exchange rates for USD. When NTD appreciates or depreciates against USD by 0.1%, the profit
for the years ended December 31, 2021 and 2020 decreases/increases by NT$27,447 thousand and
increases/decreases NT$4,777 thousand, while equity decreases/increases by NT$46,080 thousand and
NT$76,336 thousand, respectively.
Risks associated with interest rate:

The Company interest rate with variable interest
rates and bank borrowings with fixed/
investments in credit-linked deposits and interest rate-linked deposits are affected by interest rate. The market
value would decrease (even lower than the principal) when the interest rate increases, and vice versa. The market
values of exchange rate-linked deposits are affected by interest rates and changes in the value and volatility of
the underlying. The following sensitivity analysis focuses on interest rate risk and does not take into account the
interdependencies between risk variables.
The interest rate sensitivity analysis is performed on items exposed to interest rate risk as of the end of the
reporting period, including investments and bank borrowings with variable interest rates. At the reporting date,
an increase/decrease of 10 basis points of interest rate in a reporting period could cause the profit for the years
ended December 31, 2021 and 2020 to increase/decrease by NT$3,875 thousand and NT$2,492 thousand,
respectively.
Risks associated with inflation:

1 operations.
The Finance Department is responsible for related risk management.
6.2. Risks Associated with High-Risk/High-Leveraged Investment; Lending,

Endorsements, and Guarantees for Other Parties; and Financial Derivative
Transactions
inancial management, it does not engage in investments that are either
high-risk or highly leveraged. The Company has in place a complete and thorough policy and internal control
scheme governing lending, endorsements, guarantees for other parties, and financial derivative transactions. For
accordance with relevant provisions. The Company engages in derivative transactions for hedging purposes. Any
gains or losses from such transactions should roughly cancel out gains or losses in the underlying assets. For the
last fiscal year and year to date, all the transactions are in accordance with relevant provisions.
The Finance Department is responsible for related risk management.
6.3. Future R&D Plans and Expected R&D Spending

R&D Project Name Schedule
Next generation 1.6TbE high speed Ethernet PHY chips Early 2023
Next generation highly-integrated mobile communication SoCs and chipsets End of 2022
Next generation tablet chipsets End of 2022
Next generation highly-integrated wireless communication chips End of 2022
Next generation low-power AIoT and smart home connectivity chips End of 2022
Next generation highly-integrated 8K UltraHD Smart TV chips End of 2022
ext generation power management and controller chipsets End of 2022
Next generation terabit passive optical network (xPON) chipsets End of 2022
Next generation ten megabyte NBASE-T Ethernet physical chipsets End of 2022
in a highly integrated and

economical manner. R&D expenses in 2021 and 2020 were NT$96,080,761 thousand and NT$77,324,828
thousand, accounting for 19% and 24% of revenue respectively. The Company will continue to invest in R&D to
develop products for next generation communication standard. The budget for R&D projects abovementioned
accounts for approximately 80% of 2022 total R&D budget which is estimated to be 20% of 2022 revenue.
6.4. Risk Associated with Changes in the Political and Regulatory Environment
Major domestic and foreign policy and legal changes in the most recent year and up to the date of publication of
closely if any change in policies and laws that may affect the company's operations, and adjusts the relevant
internal regulations of the company.
the political and regulatory environment.
6.5. Impact of New Technology and Industry Changes

Technologies in the electronics and semiconductor industries are constantly changing. New standards and
applications continuously emerge in wireless communication and smart edge platforms. The Company will
continue to invest in research and development, to improve operating efficiency, and to monitor the latest trend
of the market, in order to secure and expand our market share.
6.6. isis Management

The Company has always maintained a humanistic philosophy toward management and provides a working
environment that is both challenging and nurturing for its employees, who are able to grow and realize their full
potential. The Company upholds the partnership with our suppliers and customers and implements corporate
conviction inspire by deep thinking, customer focus, constant renewal, innovation and teamwork. As of the
6.7. Risks Associated with Mergers and Acquisitions

The Corporation, and Intel Corporation consensually ended the deal
of Enpirion, a power management solution product line in July 2021, which has no significant impact on the
.
em and execution.
6.8. Risks Associated with Facility Expansion

office buildings in Hsinchu Science Park, Chang Yih Science and Industrial Park, Tai Yuen Hi-Tech Industrial
Park, Taipei City, and relevant oversea areas. Expansion plans are under prudent assessments to ensure they fully
meet operation needs such as space for working, labs and the rest. Results of the benefit assessment are within
the C
is responsible for managing the risks associated with plant
expansion.
6.9. Risks Associated with Purchase Concentration and Sales Concentration

flexible and diversified, and is able to deal with any emergencies from
any of its production lines. Therefore, there is no risk associated with purchase concentration. Sales concentration
ny clients throughout Japan, Korea, Europe,
Southeast Asia, and Greater China.
and sales concentration.

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Tel: +886 (0)3-567-0766

MediaTek Inc. Headquarters:

MediaTek Inc. Taipei Office:

MediaTek Inc. Website:

MediaTek Inc. | 2021 Annual Report

MediaTek Inc. | 2021 Annual Report

MediaTek Inc. | 2021 Annual Report

Annual Compass Intelligence Awards in IoT, Mobile, and Emerging Tech

Ranked top 3 in -Asia

MediaTek Inc. | 2021 Annual Report

MediaTek Inc. | 2021 Annual Report

Selected as FTSE4Good Index component

2017 Science Park Bureau

MediaTek Inc. | 2021 Annual Report

2014 Center and BCG

Once again won Outstanding Asia-

MediaTek Android smartphone platform included in the Wi-

MediaTek Inc. | 2021 Annual Report

MT5395, highly-integrated 3D/Internet TV SoC, honored as

ninth continuous years

Front- tive in-

-HD ATSC DTV SoC, by SIPA

Method for Overdrive Voltage Circuit Appl

MediaTek Inc. | 2021 Annual Report

-ray DVD player chipset, by SIPA

Launched ATSC and DVB-T high-resolution LCD TV chipset

DVD-Recorder Backend single-chip, by SIPA

-read/write (DVD-R/W) optical storage chipset, by SIPA

-speed COMBI optical storage chipset by SIPA

-integration DVD-Player chipset by SIPA

-speed CD-R/RW chipset by SIPA

-ROM chipset by SIPA

-ROM digital data/servo processor by SIPA

1997 Founded on May 28th

MediaTek Inc. | 2021 Annual Report

1.1. Organization Chart

MediaTek Inc. | 2021 Annual Report

Wireless Research, design and promote mobile communication chips

MediaTek Inc. | 2021 Annual Report

2.1. Information Regarding Board Members

MediaTek Inc. | 2021 Annual Report

MediaTek Inc. | 2021 Annual Report

MediaTek Inc. | 2021 Annual Report

Experience in industry/academia Professional Competency

Employed by the Aged

Ming-Kai Tsai V 71-75 V V V V V V

Lih-Shyng Tsai V 66-70 V V V V V V V V

Joe Chen V 51-55 V V V V V V V

Cheng-Yaw Sun 61-65 V V V V V

Kenneth Kin 71-75 V V V V V V V V

Peng-Heng Chang 66-70 V V V V V V

Ming-Tze Tang 66-70 V V V V V V

MediaTek Inc. | 2021 Annual Report

MediaTek Inc. | 2021 Annual Report

Compensation Earned as Employee of the Company

Chairman - - - - 18,025 18,025 - -

MediaTek Inc. | 2021 Annual Report

NT$1 million ~ $2 million - - - -

NT$2 million ~ $3.5 million - - - -