About MPCT
Risk Management
The risk management framework of MGC PURE CHEMICALS TAIWAN, INC.(MPCT) is established based on the regulations of its parent company, Mitsubishi Gas Chemical Company, Inc. Its goal is to effectively identify and manage risks associated with the company’s business activities, minimizing potential losses.
MPCT has set up a Risk Management Committee chaired by the chairman of the board. The committee members consist of department managers, with the administration office managed by the General Administration Department.
01
Business Risk
MPCT operates in the upstream semiconductor industry, one of the most volatile and closely watched global sectors. Insufficient R&D capacity to develop products that meet market demands in time could result in reduced market share and customer loss. To address this, MPCT has established a research and development center staffed with top talent and equipped with cutting-edge laboratory instruments to respond to the dynamic semiconductor industry.
02
Product Quality Management Risk
Product quality is a fundamental requirement in any industry. Defects, packaging anomalies, or sampling analysis errors can directly affect customers and lead to losses. MPCT's quality policy focuses on maintaining stable product quality and strengthening supply chain management to achieve zero customer complaints, zero hazards, and zero accidents.
03
Natural Disaster and Accident Risk
Located at the intersection of the Philippine Sea Plate and Eurasian Plate, Taiwan is prone to natural disasters like earthquakes and typhoons, which could disrupt operations and affect delivery to customers. MPCT conducts emergency response drills twice a year, including scenario-based exercises for natural and man-made incidents, to enhance employee readiness.
04
Information Security Risk
With the rise of big data and AI, information security has become a matter of national security, particularly in the semiconductor industry, which is of strategic geopolitical importance. A lack of proper cybersecurity measures could lead to data breaches or IT infrastructure failures, causing significant losses. MPCT employs endpoint detection and response (XDR) technology, remote server backup mechanisms, and annual cybersecurity emergency drills to enhance employee response capabilities.
05
Compliance Risk
Compliance with laws and regulations is a one core objective of three internal control objective and the minimum requirement for business operations. Non-compliance could result in regulatory fines, internal dissatisfaction, and damage to corporate reputation. To ensure compliance, MPCT has established a Compliance Committee to oversee related operations.
06
Human Rights Risk
The growing emphasis on ESG and CSR, especially in developed countries, has imposed stricter requirements on businesses. Violating these standards could lead to legal liabilities, international sanctions, and reputational damage. MPCT has adopted a "Corporate Action Policy," "Code of Conduct," and "RBA (Responsible Business Alliance) Code of Conduct" to ensure adherence by all employees.
07
Climate Change Risk
Climate change poses significant global risks, including intensified storms, concurrent droughts and floods, and accelerated sea-level rise. Without greenhouse gas reductions, the Earth could become uninhabitable by the end of this century. MPCT has established a Greenhouse Gas Inventory and Energy Management Office, committed to energy conservation and carbon reduction to meet stakeholder expectations.
08
Business and Investment Risk
As a high-capital-expenditure industry, semiconductor investments that fail to meet expected returns could lead to significant losses. MPCT carefully evaluates all investments internally before presenting them to the board of directors for final approval to maximize investment benefits.
09
Exchange Rate Risk
Frequent geopolitical conflicts have caused fluctuations in the exchange rates of major currencies. To mitigate this risk, MPCT uses forward foreign exchange contracts and other financial tools.
10
Operating and Financing Risk
MPCT conducts regular credit checks on customers to minimize the risk of bad debts. In dealings with major banks, the company provides rigorous long-term investment plans and cash flow forecasts to facilitate smooth financing operations.
