澜起科技:Montage Technology 2021 CSR Report

Montage Technology Co. Ltd. Stock code: 688008Montage Technology CSR Report (2021)
About this Report
The 2021 Montage Technology Corporate Social Responsibility Report (hereinafter Scope of this Report
referred to as "this Report") is released by Montage Technology Co. Ltd. (hereinafter
This Report covers Montage Technology and its subsidiaries. This Report covers
referred to as "Montage Technology" or "the Company") to demonstrate the Company's a time frame from January 1 2021 to December 31 2021 in some cases 2022.CSR philosophy practices and achievements during 2021.Release of this Report
Guidelines for Preparation
This Report is released in electronic form and accessible on SSE's website:
SDG Compass www.sse.com.cn.Global Sustainability Standards Board: GRI Sustainability Reporting
Standards (GRI Standards)
Chinese Academy of Social Sciences: Guidelines for the Preparation of Contact Us
Corporate Social Responsibility Reports in China (CASS-CSR4.0) For any queries and comments on this Report feel free to contact us at:
Chinese National Standard: Guidance on Social Responsibility Tel: 021-54679039
Reporting (GB/T36001-2015) Email: ir@montage-tech.com
Shanghai Stock Exchange: Notice on Strengthening the Social Responsibility Undertaking of
Listed Companies and Guidelines for Environmental Information Disclosure of SSE Listed
Companies
About this ReportMontage Technology CSR Report (2021)
CONTENTS
01 Letter from Our Chairman
02 Corporate Social Responsibility Chapter 1 About Montage Technology……...05
Management Indicators Chapter 2 Shareholder Responsibility………13 Chapter 3 Customer Responsibility……….....23
Milestones of Montage Technology.……………….06 Corporate Governance…………………………………14 Product Innovation………………………………………24
Corporate Culture……………………………………….07 Information Disclosure…………………………………18 Quality Management…………………………………29
03 Corporate Social Responsibility Product Portfolio…………………………………………08 Internal Control Management……………………….19 Customer Service………………………………………29
Management Mechanism Products & Services.…………………………………….09 Information Security………………………………….…20
Corporate Events in 2021.……………………….……11 Investor Relations………………………………………..21
Annual Performance……………………………………12 Shareholder Returns……………………………………22
04 ESG Performance in 2021
Chapter 4 Partner Responsibility…………...30 Chapter 5 Employee Wellbeing……………….34 Chapter 6 Social Responsibility……………….45
Supply Chain Management…………………………..31 Employee Policy………………………………………….35 Energy Saving and Environmental Protection…..46
Cooperation with Industrial Chain Partners……..32 Career Development……………………………………36 Public Service……………………………………………47
Investment for Industry Development…………..33 Talent Incentive…………………………………………..39 University-Enterprise Cooperation…………………48
Employee Benefits………………………………………40
49 Suggestion and Feedback Various Activities…………………………………………42
CONTENTSMontage Technology CSR Report (2021)
Letter from Our Chairman
2021 is a year of great significance for Montage Technology. Thanks to Montage Technology always bears in mind its social responsibility in
the stable business growth of interconnect chips and a surge in sales of pursuit of high-quality development. Championing a people-centered
Jintide server platform the Company's annual revenue has hit a record culture the Company is making every effort to provide a "diverse
of RMB 2.562 billion with a YoY growth of 40.49% exceeding the RMB 2 inclusive and equitable" working environment for employees'
billion mark for the first time. development. By the end of 2021 the Company has had more than 500
employees of which 30% are females increasing by 1.2% over the
With the business breakthrough of Jintide CPU as well as the successful previous year; and 21% of the R&D team are females increasing by 1.8%
mass production and shipment of the first-generation DDR5 memory over the previous year. To "achieve open innovation" we have been
interface chips and module supporting chips in the fourth quarter the committed to providing customers with quality products and services in
Company reported Q4 revenue of RMB 969 million with interconnect joint cooperation with partners and contributing to the development of
chips contributing RMB 601 million both setting a quarterly record. the microelectronics industry as a member of the Board of Directors of
Through 2021 the Jintide server platform business reported revenue of JEDEC (Joint Electron Device Engineering Council). To "take responsibility
RMB 845 million with a YoY growth of 27.5 times heralding a promising for shareholders" we continuously optimize our governance and
future of the Company. internal control system including the revision of the Articles of
Association of the Company and 18 internal systems and the re-election
As a leading data processing IC and interconnect IC design company of the board of directors and the board of supervisors with the
Montage Technology is dedicated to providing high-performance proportion of female directors / supervisors / senior executives rising to
low-power IC solutions for cloud computing and AI markets. We always 36% from 19% last year. As investor returns we have accumulatively
"accelerate R&D with focus and innovation" and sustain a high level of distributed over RMB 912 million cash dividends in three consecutive
capital investment in R&D which reaches RMB 370 million in 2021 with a years. To "take social responsibility" we have been doing our part in
YoY growth of 23%. In terms of product development the Company various fields such as energy saving public service university-
continuously launches new products based on its own technological enterprise cooperation and so forth. In 2021 we released the first CSR
and marketing capabilities and realizes the positive cycle of "Reserves - report after our stock market listing.R&D - Mass Production". In 2021 Montage Technology officially
launched the third-generation Jintide CPU and completed the mass Looking forward to 2022 amid an era of thriving digital economy our
production and shipment of the first-generation DDR5 memory interface DDR5 ecosystem will increasingly penetrate the market as new
chips and module supporting chips while focusing on the development technologies and market demands keep driving chip innovation.of the second-generation DDR5 memory interface chips PCIe5.0 Retimer Following the latest technology trends in the chip industry Montage
chips and AI chips as well as the technological reserves in key areas Technology will fulfill market opportunities with timely products and
such as CXL MCR SerDes and Clock Driver. Continuous R&D and make social contributions with innovative products. Meanwhile we will Dr. Howard Yang
innovation have not only strengthened the world-leading position of our attach greater importance to social responsibility especially in
core products but also promoted our new product development. In charitable donation and employee wellbeing improving our ESG Chairman of the Board/CEO of
2021 the Company has been granted 17 patents contributing to a total performance. Montage Technology
number of 126. In addition the Company has been granted multiple
honors such as National Technological Innovation Demonstration
Enterprise and Single Champion Model Enterprise in Manufacturing
Industry.Letter from Our Chairman 1Montage Technology CSR Report (2021)
Corporate Social Responsibility Management Indicators
The Company guarantees The Company provides diversified The Company promotes gender As an IC design company
CLEAN WATER
employees' occupational safety QUALITY EDUCATION on-site training and online
GENDER
EQUALITY equality in recruitment and career AND SANITATION Montage Technology does not
emergency preparedness work- learning courses to help progression. As of the end of 2021 produce any environmental
related injuries and diseases public employees with sustainable female employees account for 30% pollution during operations.health food and accommodation career development. and female directors supervisors and
etc. with comprehensive workplace senior executives account for 36%.facilities and a sound system.Montage Technology is dedicated Safeguard employees' wellbeing With strong R&D and innovation The Company recruits and
AFFORDABLE AND DECENT WORK AND INDUSTRY INNOVATION REDUCE
CLEAN ENERGY to providing high-performance ECONOMIC GROWTH provide competitive remuneration AND INFRASTRUCTURE capabilities the Company has INEQUALITIES evaluates employees based on
low-power IC solutions for cloud and benefits (with an equity developed its core technologies individual capabilities equity
computing and AI markets. incentive coverage ratio of 75% with independent intellectual and non-discrimination
above) and adopt a flat property rights allowing for a principles.management system. virtuous cycle of Technological
Reserves - R&D - Mass Production.The Company reduces the overall In addition to guaranteeing product Advocating low-carbon life and Adhering to "open innovation"
SUSTAINABLE CITIES RESPONSIBLE CLIMATE PARTNERSHIPS
AND COMMUNITIES carbon emissions of the data center CONSUMPTION quality by strictly controlling its ACTION green workplace the Company takes FOR THE the Company actively
AND GOALS
industry through technological PRODUCTION supply chain the Company also energy saving and environmental participates in the formulation
innovation and adopts a series of reviews suppliers' performance in protection actions and regularly of industry standards to further
environmental protection measures energy saving and environmental checks greenhouse gas emissions advance the industry in joint
for sustainable development. protection when selecting to fight climate change. cooperation with partners.cooperative suppliers.In 2021 Montage Technology integrated 12 of the 17 United Nations Sustainable Development Goals (SDGs)
into its corporate social responsibility management in accordance with the Company's situation.Corporate Social Responsibility Management Indicators 2Montage Technology CSR Report (2021)
Corporate Social Responsibility Management Mechanism
The board of directors is responsible for developing corporate social responsibility In April 2021 the Company released the first CSR report after its stock market listing.strategies and goals and the Corporate Social Responsibility Working Group as a sub- In December 2021 the Company was awarded the Shanghai Corporate Social
organization of directorate is responsible for implementing specific corporate social Responsibility Report – Outstanding Enterprise by Shanghai Federation of Economic
responsibility work. Organizations (SFEO) and Shanghai Federation of Industrial Economics (SFIE).In 2021 the Company further optimized the Corporate Responsibility Work Management
System appointing the specific department personnel in charge of social responsibility
work. The Corporate Social Responsibility Working Group held the Annual Social
Responsibility Working Meeting 2021 summarizing the social responsibility work
progress in 2020 and proposing improvement plans for 2021.Board of Directors
Corporate Social Responsibility
Working Group
Corporate Social Responsibility Management Mechanism 3Montage Technology CSR Report (2021)
ESG Performance in 2021
Diverse employee wellbeing measures Gender equality Continuously improved corporate governance
100% labor contract Zero occupational injury rate 30% female employees 36% female directors 100% attendance in meetings Revision of the Articles of
signing rate increasing by 1.2% over the supervisors and senior of directors supervisors and Association of the Company 75% equity incentive coverage previous year executives increasing by 17% senior executives and 18 internal systems
Zero child labor ratio
21% female R&D staff over the previous year Four measures to ensure Anti-fraud policy
Non-discriminatory practices increasing by 1.8% over the information security incorporated into contract
previous year templates
Training system helps employees Annual revenue hit a record Persistent R&D and innovation
with career development high
R&D personnel account for RMB 370 million investment
Four-in-one training 90%+ employee training Annual revenue reaches RMB 2.562 71% of total employees in R&D with a YoY growth of
system coverage ratio billion with a YoY growth of 40.49% 65% of R&D staff with master's 23%
24 hours of training per or higher degree
employee
Keep on improving quality management Advance energy saving and emission Continuous University-enterprise
reduction with innovative technology shareholder returns cooperation
Zero quality incident Continuously high customer
satisfaction The second-generation DDR5 products vs the first-generation 77% cash dividend Co-established lab with
DDR5 products: payout ratio Shanghai Jiaotong University
5% less power consumption on average at the same speed with three project applications approved
ESG Performance in 2021About Montage Technology
Founded in 2004 Montage Technology is a leading data processing IC and
interconnect IC design company. As one of the first batch of listed companies
on SSE STAR Market Montage Technology was listed on the Shanghai Stock
Exchange in July 2019 with stock code 688008.Montage Technology is headquartered in Shanghai with branches in Kunshan
Beijing Xi'an Macao the U.S. and South Korea.Interconnect Jintide Server AI chips
chips PlatformMontage Technology CSR Report (2021)
Milestones of Montage Technology
2021
Montage Technology was
January 2006 recognized as Single Champion
Montage Technology Model Enterprise in
started mass production August 2011 January 2016 Manufacturing Industry and
of its first chip. National Technological Montage Technology DDR3 Innovation Demonstration
Register Buffer and Memory Montage Technology jointly developed a new Enterprise.Buffer chips were certified. general-purpose
processor with Tsinghua
2013 University and Intel. February 2021October
Montage Technology was
May 2004 Montage Technology DDR4 appointed to the Board of
Register Clock Driver and Data Directors of JEDEC.Montage Technology Buffer chips were certified.was founded. June 2006 Since its cumulative profit September 2020
Montage Technology turned positive in 2011
obtained its first granted Montage Technology has
Montage Technology September 2021
invention patent. been profitable for 11
May 2019 started the mass
consecutive years. production of PCIe 4.0 The cumulative shipped
Montage Technology Retimers. quantity of Jintide CPU
June 2008 started the mass exceeded 100000 pcs.
2014 production of the first-Montage Technology October generation Jintide CPU.
DDR2 Advanced Memory
Buffer (AMB) chips were Montage Technology October 2021
certified. received the 2014 GSA
Award for Best Financially Montage Technology started
Managed Semiconductor July 2019 the mass production and
Company. shipment of the first-generation Montage Technology was DDR5 memory interface chips
listed on the Shanghai and module supporting chips
Stock Exchange as one of
the first batch of listed
companies on the Star
Market.About Montage Shareholder Customer Partner Employee 6
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Corporate Culture动止作为涛潭澜渊起深”
Poems from Song Dynasty Poet Su Zhe
Corporate Vision Corporate Mission Corporate Culture
To become an innovative To make data transfer Accelerating with
international IC design more efficient and data focus and innovation
company focusing on data computing more secure
processing IC and
interconnect IC
About Montage Shareholder Customer Partner Employee
Technology Responsibility Responsibility Responsibility Wellbeing Social Responsibility
7Montage Technology CSR Report (2021)
AFFORDABLE AND INDUSTRY
Product Portfolio CLEAN ENERGY INNOVATION AND INFRASTRUCTURE
RCD/DB
SPD/PMIC/TS
CKD
Memory
interface Jintide
related CPU
Interconnect Data
chips processing
"Fast" chips "Big" chips
PCIe CXL
related related AI chips
Focusing on high-speed interconnect and high-performance
data processing related technologies
About Montage Shareholder Customer Partner Employee 8
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Products & Services AFFORDABLE AND INDUSTRY CLEAN ENERGY INNOVATION AND INFRASTRUCTURE
Interconnect Chips Product Line Jintide Server Platform Product Line
Memory Interface Chips Jintide CPU & Hybrid Security DIMM
As the core logic device of server memory module memory interface chips mainly Jintide CPU a series of x86 architecture processors featuring pre-check or dynamic
increases the speed and stability of memory data access to meet the growing demand of security check (DSC) can be used on Jintide and other universal server platforms.server CPU for memory module with high performance and large capacity. The Company
has successively launched DDR2–DDR5 series memory interface chips. The Company has launched the third-generation Jintide CPU with higher performance
in order to meet the increasing demand for CPU performance and security in the server
The Company has successfully developed the first-generation DDR5 memory interface market.chips and started its mass production and shipment in Q4 2021.The hybrid security DIMM adopts the memory monitoring technology with independent
intellectual property rights which can provide more secure and reliable memory solutions
for server platforms.Memory Module Supporting Chips To meet different application needs the Company has launched two series of products: Hybrid Security DIMM
(HSDIMM) and Hybrid Security DIMM-Lite (HSDIMM-Lite).The DDR5 memory module requires three supporting chips namely Serial
Presence Detect (SPD) Temperature Sensor (TS) and Power Management IC
(PMIC).The Company has successfully developed the mass-production version of DDR5
memory module supporting chips together with partners and started the mass
production and shipment in Q4 2021.PCIe Retimer Chips
As an ultra-speed Retimer chip meeting the PCIe high speed data transmission protocol the PCIe Retimer chip AI Chips
has become one of the important components of high speed circuit. It mainly solves the problems such as
misaligned timing large loss and poor integrity when data is transmitted at high speed and long distance The Company is currently developing an AI chip solution consisting of hardware (such as AI chips) and
in a data center. supporting software. It adopts a near-memory computing architecture which aims to solve the bottlenecks
The Company's mass-produced PCIe 4.0 Retimer chips have reached the international advanced level in terms of AI computing in inference applications with high data throughput such as CPU bandwidth performance
of key performance indicators such as power consumption and transmission latency including a 8-lane and GPU memory capacity therefore providing customers with a low-latency and high-efficiency AI
version and a 16-lane version which can be applied to typical application scenarios such as NVMe SSD AI computing solution.server and Riser card.About Montage Shareholder Customer Partner Employee
Technology Responsibility Responsibility Responsibility Wellbeing Social Responsibility
9Montage Technology CSR Report (2021)
AFFORDABLE AND PARTNERSHIP
Products & Services CLEAN ENERGY S FOR THE GOALS
Business Model Industry Status
As an IC design company Montage Technology adopts a fabless operating model. As a member of the Board of Directors of JEDEC Montage Technology serves as the
The Company focuses on key R&D and core customers that is both ends of the chair of three committees and subcommittees under JEDEC and plays a significant
smile curve. In other words the company focuses on IC design and marketing in role in the JEDEC standard-setting. The "1+9" distributed memory buffer subsystem
the industrial chain outsources the other processes to wafer foundries packaging architecture developed by the Company has been incorporated in the JEDEC standards.and testing vendors and sells the tested chips to customers.Montage Technology is one of the three major providers of DDR4 memory interface
chips in the world and its related products have successfully entered the international
mainstream fields of memory server and cloud computing occupying an important
share of the global market.The Company is one of the two major providers of a complete solution of DDR5 memory
interface chips and module supporting chips in the world.R&D Foundry Packaging & Testing Brand & Sales
The Company is one of the major providers that can mass produce PCIe 4.0 Retimer
chips in the world.Wafer Packaging and
Foundry Testing Plant The Only Member of
Global TOP 2 Chinese Board of
Customers DDR5 memory interface
chip supplier Company Directors
that can mass produce PCIe of JEDEC
Wafer Packaging and 4.0 Retimer chips in the world
Foundry Testing Plant
About Montage Shareholder Customer Partner Employee 10
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Corporate Events in 2021
In 2021 the Company was The Company was recognized The Company was granted the The Company was honored as The cumulative shipped
recognized as Single Champion as National Technological 12th Tianma Awards of Best 2021 SSE STAR Market Leading quantity of Jintide CPU
Model Enterprise in Innovation Demonstration Board of Directors and Best Technology Enterprise by SMDC exceeded 100000 pcs.Manufacturing Industry by the Enterprise by the Ministry of Secretary of the Board by and Caijing Magazine.Ministry of Industry and Industry and Information Securities Times.Information Technology of the Technology of the People's
People's Republic of China and Republic of China.the China Federation of
Industrial Economics.PCIe 4.0 Retimer chip was The Company launched the The Company was selected as one The Company started the mass
granted the Innovation Award third-generation Jintide CPU. of the "100 Well-Known Brands of production and shipment of
at the 9th China Information Shanghai Industry in 100 Years" by the first-generation DDR5
Technology Expo (CITE). Shanghai Federation of Industrial memory interface chips and
The Company was appointed to Economics (SFIE). module supporting chips.the Board of Directors of JEDEC.About Montage Shareholder Customer Partner Employee 11
Technology Responsibility Responsibility Responsibility Wellbeing Social Responsibility
February
April
May
July
October SeptemberMontage Technology CSR Report (2021)
Annual Performance
In 2021 the Company reported revenue of RMB 2.562 billion with a YoY growth
of 40.49%; Net profits attributable to shareholders of the listed company
reached RMB 829 million with a YoY decrease of 24.88%.In 2021 the Company hit historic highs in its annual revenue Q4 revenue and
the quarterly revenue of interconnect chips.
2021 Annual Performance 2021 Quarterly Performance Interconnect Chips Revenue Jintide Server Platform Revenue
(100 million RMB) (100 million RMB) (100 million RMB) (100 million RMB)
Revenue Net Profit Net Cash Flow 1H 2021 2H 2021 2020 2021
from Operating
Activities Net Profit Revenue
Annual revenue hit a record high Consecutive quarterly Q4 revenue hit a record high A 27.5 times increase over
revenue growth the previous year
About Montage Shareholder Customer Partner Employee 12
Technology Responsibility Responsibility Responsibility Wellbeing Social Responsibility
Hit a record
highShareholder Responsibility
Corporate Information Internal Control Information Investor Shareholder
Governance Disclosure Management Security Relations ReturnsMontage Technology CSR Report (2021)
Corporate Governance
Shareholders Meeting
Governance Structure
Board of Supervisors
At present the Company has established
a modern corporate governance system
with the shareholders meeting the board
of directors the board of supervisors and Board of Directors
senior executives as the core and formed Audit Committee
a mechanism with clear rights and
responsibilities and standardized Remuneration and
operation among the authority Appraisal Committee
policy-making agency supervisory Nominating Committee
agency and management which enables General Manager
each organization to coordinate and
balance each other and provides an
organizational guarantee for efficient
and stable operation of the Company.The shareholders meeting the board of
directors the board of supervisors and
the senior executives of the Company
shall exercise their powers and fulfill
their obligations in accordance with the
Company Law and the Articles of
Association of the Company.About Montage Shareholder Customer Partner Employee 14
Technology Responsibility Responsibility Responsibility Wellbeing Social Responsibility
Internal Audit Department
Infrastructure Department
Public Relations
Department
Human Resource
Department
Administration
Department
Finance Department
Legal Department
Quality Control
Department
Sales Department
Marketing Department
Operations Department
Market Application
Technology Department
R&D Department
Board of Directors OfficeMontage Technology CSR Report (2021)
Corporate Governance
Governance
Board of Directors Chairman Howard Yang - Chairman and CEO of Montage TechnologyStructure Employee Stephen Tai - General Manager of Montage Technology
Members Directors Yi Shi - Director of Marketing Communications of Montage Technology
In September 2021 the Company elected the second
board of directors consisting of 9 directors 4 of which Non- Rongxin Li - General Manager of Shanghai Youci Information Technology Co. Ltd.are independent directors. Employee
Directors Brent Young - Managing Director of the China Corporate Strategy Office (CCSO) at Intel Corporation and
Meetings Vice President of Intel Corporation
10 meetings were held in 2021 with 100% attendance. Zhiyao Yin - Chairman and General Manager of China Micro Semiconductor Equipment (Shanghai) Co. Ltd.
Responsibilities Changjiang Lv - Professor of Accounting Doctoral Supervisor and Associate Dean of School of
Setting the Company's development goals and making
major business decisions within the authorization scope Independent
Management Fudan University
stipulated by the Articles of Association of the Company Directors Jingdong Liu - Researcher Professor of the Graduate School Doctoral Supervisor and Director of
and shareholders' meetings. International Economic Law Department Institute of International Law Chinese Academy of Social Sciences
Bo Yu - Vice President of Semiconductor Manufacturing International Corporation
Audit Committee Remuneration and Appraisal Committee Nominating Committee
Members Members Members
3 independent directors 3 independent directors 3 directors including 2 independent directors
Meetings Meetings Meetings
7 meetings were held in 2021 with 100% attendance. 3 meetings were held in 2021 with 100% attendance. 2 meetings were held in 2021 with 100% attendance.
Responsibilities Responsibilities Responsibilities
Improving the board of directors' audit evaluation and supervisory Establishing and improving the remuneration appraisal and management Regulating the appointment and recruitment of directors
mechanism and its supervision over the Company and optimizing the system for directors General Manager and other senior executives. General Manager and other senior executives optimizing the
corporate governance structure. Supervising the external audit of the Developing the appraisal standards for directors General Manager and composition of the board of directors as well as reviewing the
Company instructing the Company's internal audit and promoting the other senior executives conducting the appraisal as well as formulating qualifications of directors and senior executives nominated by
establishment of an effective internal control system and the preparation and reviewing the remuneration policies and plans for them. authorized nominees as stipulated in the Articles of Association
of true accurate and complete financial statements. of the Company and making suggestions.About Montage Shareholder Customer Partner Employee 15
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Corporate Governance GENDER EQUALITY
Board Election Professionalism and Diversity of Directors Supervisors and Senior Executives
In 2021 Montage Technology successfully completed the re-
election of the board of directors and the board of supervisors Education background Gender Age
keeping the professionalism and diversity of board members.The new board of directors consists of 9 members and the new
board of supervisors consists of 3 members. Among them
2 employee directors and 1 employee supervisor were
elected through the Workers' Congress.The percentage of females has increased from 0% to 11% on
the new board of directors and remained at 67% on the board Doctor Master Bachelor Female Male
of supervisors. The proportion of independent directors has 60+
increased from 36% to 44%. Meanwhile senior executives were
appointed by the new board of directors with the percentage Professional background Proportion of independent Professional background of
of females increasing from 25% to 50%. directors on the board independent directors
Industry Investment Law Finance & Independent Other Directors Industry Finance & Law
Accounting Directors Accounting
About Montage Shareholder Customer Partner Employee 16
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Corporate Governance
Training for Directors Supervisors and Senior Executives in 2021
To enhance the professional competence of the directors supervisors and senior executives the Company arranged
the following training courses in 2021. Through the training the directors supervisors and senior executives have
gained a better understanding of the current situation and regulatory requirements of the capital market increased
their awareness of risk and standardization and established the basic concept of scientific management. In 2021 the
training time for the directors supervisors and senior executives summed up to
72.5 hours.
Training Courses
Supervision of Information Disclosure of Listed Companies and Interpretation of Criminal Law Amendments
Standard Performance of Independent Directors Continuous Regulatory Concept and Logic of STAR Market
Key Takeaways of Information Disclosure of Material Asset Research on Accounting Issues of Listed Companies
Reorganization for Listed Companies Case Analysis of Financial Fraud in Listed Companies
Typical Case Analysis of Disciplinary Action
Interpretation of New Delisting Rules
Remuneration Appraisal and Management of Directors
Supervisors and Staff Employed by the Board
Remuneration Plan For Directors and Supervisors
It was approved at the 25th meeting of the first board of directors and the 3rd extraordinary general meeting in 2021.Remuneration Management of Staff Employed by the Board
The performance of staff employed by the board in 2020 was appraised and the basic annual salary plan for the staff
employed by the new board of directors was formulated.About Montage Shareholder Customer Partner Employee 17
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Information Disclosure
Revision of Relevant Strictly Implementing Information Disclosure Procedure
Information Disclosure Systems Information Disclosure Systems
The internal responsible persons review and
submit the information
In 2021 the Company revised the Information Disclosure The Company has strengthened the management of
System Insider Registration and Management System to The Secretary of the board conducts compliance information disclosure fulfilled the duties of the checks and writes announcements
further standardize and detail relevant systems for principal responsible person and ensured that the
information disclosure. announcements disclosed are "truthful accurate Relevant review procedures
complete timely fair concise clear and
* Information Disclosure System understandable". Disclosure
* Business Management System on Postponement of and In addition to the announcements all information to
Exemption from Information Disclosure be published (such as Q&As on SSE E Interaction 58 4
* Insider Registration and Management System investor research and media interviews) was provisional periodic
strictly checked based on the principles notices reports
Specifying the Responsible of truth accuracy and compliance.disclosed disclosed
As required by the Insider Registration
Persons for Information Disclosure and Management System the Company
took measures to keep the number of
insiders to a minimum and registered
* The Chairman of the board is the principal responsible the insiders that have access to the
person for information disclosure. unpublished inside information during
* The Secretary of the board is responsible for coordinating the reporting transmission preparation
and organizing matters related to information disclosure. review disclosure and other processes.* All members of the board are jointly and severally liable.* The board office is the department responsible for
managing information disclosure matters.About Montage Shareholder Customer Partner Employee 18
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Internal Control Management
Internal Audit System 2021 Internal Audit and Control Assessment
Board of Internal Audit In 2021 the Internal Audit Department specifically standardized the procedures related to infrastructure procurement and
Directors Audit Committee Department payment.In strict compliance with Anti-fraud Management System the anti-fraud policy has been integrated as templates into most
procurement and sales contracts since 2021.Department Responsible for Internal Control and The board of directors issued the 2021 Internal Control Assessment Report and Ernst & Young Hua Ming issued the
Internal Control Audit Report for the Company.Its Functions
The Internal Audit Department is responsible for promoting the Company's operational management and assisting the
board of directors and the audit committee in fulfilling their responsibilities. Specifically this includes the review and
evaluation of the following items: the reliability effectiveness and integrity of the internal monitoring mechanism the
appropriateness of the Company's organizational structure systems and procedures the safety and integrity of assets
and the possibility of significant risks to facilitate risk management and other efforts. 2021 Internal Control Evaluation Report
Internal Audit Procedure
Based on the identification of significant deficiency of internal control over financial reporting there were
no significant deficiencies in the internal control over financial reporting as at the base date of the Internal
Development of annual plan Pre-audit investigation Implementation of the audit Control Assessment Report. The board believes that the Company has maintained effective internal control for internal audit of the auditee over financial reporting in all major aspects in accordance with the requirements of the internal control
standard system and related regulations.Follow-up audit on the Submission to the Company's Development of internal Based on the identification of significant deficiencies in the internal control over non-financial reporting
implementation of audit committee or the board audit report based on audit there were no significant deficiencies in the internal control over non-financial reporting as at the base
rectification measures of directors for review opinions or decisions date of the Internal Control Assessment Report.From the base date to the issuance date of the Internal Control Assessment Report there were no
Development of audit files significant changes that may impact the assessment of the effectiveness of the internal control.based on relevant materials
About Montage Shareholder Customer Partner Employee 19
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Information Security
Montage Technology greatly values information security and data privacy protection. The Company has formulated a relatively complete information security management system based on industry features and actual
needs and built a preliminary information security system. The Company has taken four key measures to keep information-related factors (including resources technology and management) under control protect IT
assets from unauthorized access or attacks and prevent all kinds of information risk factors to the greatest extent.In 2021 the Company performed information security awareness training for all new employees while issuing reminders from time to time to improve employees' online security awareness of illegal links such as email
phishing.Network Partition Management Information Security of R&D Department
The Company's intranet is divided into different VLAN network segments according to functions As the most vital data department the R&D Department has adopted the following special
which cannot be assigned arbitrarily. Users cannot access data across network segments. All strategies to protect its core data:
user terminals have been provided with local anti-virus software firewalls and other measures
to strengthen vulnerability management and protection. * Indirectly accessing sensitive data using non-directly connected secure access terminals
and virtual terminals
* Setting up access control for special documents
* Enhancing control on file transfer
Security Protection for User Terminals Standardized Management of Internet Access
Take protective measures in device access control account management & user name and VPN Access
specifications password policies and vulnerabilities & defense.The Company strictly controls Internet access and VPN access.About Montage Shareholder Customer Partner Employee 20
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Investor Relations
In 2021 the Company strictly complied with the Investor Relations Management
System to facilitate effective communication with medium to small investors and
answer investor concerns under the premise of compliance. The Company's stock is included in many major
indexes at home and abroad as well as the
The Company has engaged with
3806 * Held the 2020 Annual Performance Shanghai-Hong Kong Stock Connect programa total of investment Exchange Meeting and the 2021
66 Semi-Annual Performance In 2021 the Company was included in indexes including STAR Next Generation institutions during sessions Exchange Meeting Information Technology Index CSI National Brands Project of Xinhua Index and FTSE
Number of sessions Number of institutions * Media interviews Global Equity Index and was admitted into the Shanghai-Hong Kong Stock Connect program.* Calls with investors
No. Index Effective Time
* Communication with the society 1 CSI National Brands Project of Xinhua Index September 14 2021
through the official website and
official WeChat account 2 STAR Next Generation Information Technology Index August 16 2021
3 FTSE Global Equity Index March 22 2021
2020 2021 2020 2021 * Industry/government forums 4 The Company's stock was admitted into the Shanghai-Hong Kong Stock Connect program February 1 2021
* In 2021 the Company held 5 5 CSI Digital Economy Index December 14 2020
12 shareholders' meetings and 82 performed separate counting of 6 SSE 380 Index December 14 2020
Records of votes from small and medium
7 CSI 300 Index December 14 2020
SSE E interactions
Investor Relations investors for major issues. 8 CSI Semiconductor Industry Index December 14 2020replied
Activities disclosed 9 CSI Artificial Intelligence Index December 14 2020
10 CSI Electronics 50 Index December 14 2020
11 China Semiconductor Chips Index December 14 2020
12 MSCI China A Onshore Index November 30 2020
13 Science and Technology Innovation Board 50 Index June 19 2020
About Montage Shareholder Customer Partner Employee 21
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Shareholder Returns
In 2021 the Company revised the Articles of The Company adopts a positive profit distribution policy and
Association of the Company to clarify: pays back the investors by means of cash dividends while
1. Basic principles of profit distribution policy repurchasing shares by centralized bidding transactions. The year-end closing price
2. Methods of profit distribution: cash stock or both In 2021 the Company planned to distribute a cash dividend
with priority given to cash dividends of RMB 3.0 for every 10 shares and is expected to distribute cash dividends for a total of RMB 339 million. Meanwhile the 3
3. Conditions and intervals of profit distribution Company has repurchased RMB 300 million worth of shares
has risen for
through centralized bidding transactions.
4. Conditions and proportion of cash dividends consecutive years
As per Article 8 of the No. 7 Guidelines for the Self-Regulatory
Supervision of Listed Companies on SSE - Repurchase of Shares Unit: RMB/share
the amount of share repurchase is regarded as cash
dividends and is included in the calculation of the relevant
proportion of cash dividends for the year.Therefore it is expected that the Company will distribute
cash dividends totaling RMB 639 million in 2021 accounting
for 77% of the net profit attributable to shareholders of the
listed company in the consolidated statement.In the future the Company will continue to return the
shareholders by distributing dividends based on the
financial condition capital use and other factors while
ensuring its sustainable sound and stable development. End of End of End of
201920202021
RMB 339 million RMB 300 Cash dividends
cash dividends to be are expected to million worth
distributed (to be account for shares
approved at the repurchased 77% of net
shareholders'
meeting) profit for the year
About Montage Shareholder Customer Partner Employee 22
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityCustomer Responsibility
Product Quality Customer
Innovation Management ServiceMontage Technology CSR Report (2021)
Product Innovation INDUSTRY INNOVATION AND INFRASTRUCTURE
The Company has strong R&D and innovation capabilities in IC design. Over the past 18 years since its establishment the Company has been
dedicated to the development of chips supported by a team of skilled professionals in IC and a self-developed IC design platform. In terms of
product development the Company keeps innovation based on its own technological and marketing capabilities allowing for a virtuous cycle of
Technological Reserves - R&D - Mass Production.Product Innovation System Investment in
Product Innovation
Montage Technology has been investing
The first-generation DDR5 heavily in R&D. In 2021 the Company
Mass Accumulated invested a total of RMB 370 million in memory interface chips Third-generation
underlying R&D increasing by 23.33% over the production Jintide CPU previous year; The total R&D investment DDR5 memory module supporting technologies accounted for 14.44% of the revenue and
chips (PMIC SPD TS) continuously empower has remained at around 15% for many
new product R&D: consecutive years.Under The second-generation DDR5 Fourth-generation First-generation Digital-analog mixed
development memory interface chips Jintide CPU AI chips circuits memory R&D investmentPCIe 5.0 Retimer management & data (100 million RMB)
buffering high-
speed links (such as
SerDes and CXL)
DDR5 MCR PCD/DB processor security &
Technological CKD MXC Fifth-generation Second-generation acceleration
reserves Jintide CPU AI chips
PCIe 6.0 Retimer
201920202021
About Montage Shareholder CCussttoommer Partner Employee 24
Technology Responsibility eRre sponsibility Responsibility Wellbeing
Social Responsibility
Respons
ibilityMontage Technology CSR Report (2021)
Product Innovation INDUSTRY INNOVATION AND INFRASTRUCTURE
Excellent Talents Technical personnel training
Montage Technology has been recruiting excellent technical talents since its establishment Devoted to talent training and innovation since its establishment Montage Technology has
with core technical personnel remaining stable ever since their employment. developed hundreds of professionals in the field of high-speed low-power and digital-analog
mixed circuit design. R&D personnel accounts for about 71% of the Company's total employees
65% of which hold master's degrees or above. This has laid a solid foundation for the Company's
The Company is founded by entrepreneurs with extensive expertise and industry sustainable product innovation.experience:
Howard Yang Stephen Tai The proportion of R&D personnel with master's Age composition of
degrees or above in total R&D personnel
M.S. and Ph.D. in Electrical and Computer B.S. in Electrical and Computer Engineering of Johns the R&D team
Engineering of Oregon State University. Dr. Yang Hopkins University and M.S. in Electrical Engineering 2 employees
was elected a Fellow of the Institute of Electrical of Stanford University. With over 25 years of 103
and Electronics Engineers (IEEE) in 2010. He used experience in semiconductor architecture design employees
to work for companies such as National and engineering management Mr. Tai worked as a
Semiconductor. and co-founded Newave senior design engineer at Sigmax Technology from 14 employees
Semiconductor Corp. a Silicon Valley-type IC 1994 to 1995 and participated in the foundation of
design company in 1997. Marvell Technology Group Ltd. while serving as the
Engineering R&D Director from 1995 to 2003.The core technical personnel have extensive expertise and industry experience with a 73 181
zero employee turnover rate. employees employees
Gang Shan joined the Company in 2005 Zhongyuan Chang joined the Company in 2013 2019 2020 2021
Before joining the Company Mr. Shan used to Before joining the Company Dr. Chang served as a
work for ZTE No.1 Shanghai Research Institute and senior IC design engineer at Alcatel Bell Belgium
served as an engineer at Newave and the Design the Vice President of IDT-Newave and the CTO of
Shanghai Belling. Number of R&D Number of R&D personnel < 30Manager at IDT-Newave. 30-40
personnel with master's degrees (excl. 30) (incl. 30 excl. 40) (incl. 40 excl. 50)
or above
Gang Shi joined the Company in 2017 50-60 60 and above
(incl. 50 excl. 60)
Before joining the Company Mr. Shi served as the Quality Engineer and Quality Manager at Advanced Semiconductor
Manufacturing Corporation Limited Deputy General Manager of Operations at IDT-Newave Vice President of
Operations and General Manager of the First Product Business Group at BCD Semiconductor Manufacturing Limited
and General Manager of Protection Products Division of Discrete Device Business Group and China Marketing Director
of Discrete Device Business Group at Diodes Inc.About Montage Shareholder Customer Partner Employee
Technology Responsibility Responsibility Responsibility Wellbeing Social Responsibility
25Montage Technology CSR Report (2021)
Product Innovation INDUSTRY INNOVATION AND INFRASTRUCTURE
Product R&D in 2021
DDR5 Memory Interface Chips and Memory Module Supporting Chips AI Chips
The Company has completed the logic design system integration and verification of the
The Company has successfully developed the first-generation of memory interface main sub-systems of AI chips. Simultaneously the Company promoted the construction of
chips and memory module supporting chips and started the mass production and AI and big data software ecosystems and completed the functional verification and
shipment in Q4 2021. Meanwhile the Company has completed the prototype tapeout performance evaluation of software and hardware tool chains main AI network models
of the second-generation DDR5 memory interface chips and has them tested by major and typical big data use cases on various simulation platforms with expected results. The
memory module manufacturers and mainstream server platforms for performance Company has also completed the main functional verification and performance evaluation
evaluation. for typical application scenarios on the FPGA Prototyping Platform.In 2021 the Company filed 14 patent applications related to AI chips. With years of R&D
experience and technological accumulation the Company has filed a total of 28 invention
PCIe Retimer Chips patent applications 3 of which have been granted including "Computing Device And
Neural Network Processor Incorporating the Same" "Memory Controller" and "Data
For PCIe 5.0 Retimer chips the Company has completed the prototype tapeout and Conversion Control Apparatus Memory Device and Memory System".component and system-level testing and performance evaluation and shipped
samples to customers and partners for interoperability testing.Jintide Server Platform
For Jintide CPUs the Company has launched the third-generation Jintide CPU
products with enhanced performance which have been applied to multiple
types of servers.About Montage Shareholder Customer Partner Employee 26
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Product Innovation INDUSTRY INNOVATION AND INFRASTRUCTURE
Intellectual Properties Granted Invention Patents
As a technology-intensive IC design enterprise Montage
Technology has always adhered to the R&D strategy of
independent innovation for the strategic consideration The Company has never been involved in any intellectual
of long-term development attached importance to the property litigation or disputes since its listing.protection of independent intellectual property rights
and purchased third-party intellectual property rights End of 2019 End of 2020 End of 2021
when necessary to avoid intellectual property In 2021 the Company was granted a total of 17
infringements. invention patents (increasing by 89% YoY) filed 48 new
invention patent applications (increasing by 37% YoY) Software Copyright Registration
The Company has set up a sound Intellectual Property and registered 16 new IC layout designs (increasing by
Management System to promote patent application and 78% YoY) and registered 2 new software copyrights.maintenance IC design layout registration software
copyright registration commercial and technical secret
protection etc. so as to continuously increase
accumulated intellectual properties enhance the core
competitiveness of products and reduce the risk of 17 48
copyright infringement. End of 2019 End of 2020 End of 2021
invention patent
The Company is equipped with a state-of-the-art granted invention
intellectual property management system and patent patents applications
search & analysis platform that features search query IC Layout Design Registrations
analysis and statistics of patents to achieve the
information management of intellectual property rights. 16 2
The Company has also formulated the Intellectual IC layout design software copyright
Property Incentive Program to reward inventors or registrations registrations
designers of inventions and proprietary technologies in
a move to encourage employees to conduct
technological innovation and promote the output of End of 2019 End of 2020 End of 2021intellectual property achievements.About Montage Shareholder Customer Partner Employee 27
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
INDUSTRY
Product Innovation INNOVATION AND INFRASTRUCTURE
Playing a Significant Role in the
Development of International Standards Development of International Standards
In the DDR4 generation the Company has developed the DDR4 fully
buffered "1+9" memory buffer architecture which has been adopted
by JEDEC as an industry standard. DDR4 generation
The Company's Position in JEDEC In the DDR5 generation the “1+9” memory buffer architecture evolved
JEDEC is the global leader in developing open standards for the into “1+10” which continues to be incorporated in JEDEC standard.microelectronics industry. The mission of JEDEC is to drive the
innovation and development of the microelectronics industry In 2021 the Company took the lead in developing the first-generation
by creating publishing and promoting global standards and and second-generation of DDR5 memory interface chip (RCD/DB)
providing forums for technical exchanges on leading industry standards in the JEDEC organization and played a significant role in the
topics. The organization consists of over 300 member companies development of DDR5 memory module supporting chip standards.working together in more than 100 committees and DDR5 generation
subcommittees. Today the JEDEC standards and publications
have been widely adopted in mainstream semiconductor
memory circuits and related storage devices worldwide.Proud Member of PCI-SIG and CXL
In January 2020 Dr. Howard Yang the Chairman and CEO of
Montage Technology was honored with the JEDEC Distinguished
Executive Leadership Award and became the world's first
recipient of the award.PCI-SIG Member CXL Member
In February 2021 Montage Technology was appointed to the
Board of Directors of JEDEC. At present Montage Technology is PCI-SIG (Peripheral Component Interconnect Special Interest
the only IC design company in China that has been appointed to The CXL (Compute Express Link) Group) owns and manages the open standards of PCI
the Board of Directors of JEDEC. Consortium is an organization led by Intel Specifications. As industry requirements on I/O evolve PCI- to develop CXL technical standards. Until
Currently Montage Technology is serving as the chair of three SIG is responsible for defining and developing new industry now multiple chip companies cloud
committees and subcommittees under JEDEC and plays I/O (input/output) specifications. At present over 900 computing providers and traditional
a significant role in the development of JEDEC standards. industry-leading companies worldwide have joined PCI-SIG. large-scale IT companies have joined
the CXL Consortium.About Montage Shareholder Customer Partner Employee 28
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Quality Management RESPONSIBLE Customer Service CONSUMPTION AND PRODUCTION
The products of Montage Technology mainly target the data center market where high product
quality and stability are required as a matter of life and death for businesses. Driven by a lifelong
commitment to better products Montage Technology places a high value on quality management.The Company has established a sound quality management system by formulating the Quality Customer Satisfaction Management
Manual and has established a highly standardized R&D process and a quality control system
which are constantly evolving based on the actual implementation. The quality management team of Montage Technology conducts customer satisfaction
surveys every six months covering the five dimensions of quality technology service
The whole-process monitoring quality management system covers all product stages and price and delivery.effectively controls the R&D quality risk and cost of each new product improving the Company's
overall quality management level and pushing the Company's product quality to the top tier of
the industry.In 2021 the quality management
system of Montage Technology In 2021 Montage
successfully passed the ISO9001
update certification. Technology maintained
excellent
customer satisfaction.No significant product quality incidents have occurred since the establishment of the
Company in 2004.Quality Management Objectives Customer Recognition
The quality and reliability objective of Montage Technology is ≤ 100 DPPM. The Company has been recognized as the Best Supplier of the Year by customers several times. In 2021 the Company was
Note: DPPM refers to defective parts per million. granted the 2020 Best Cooperation Award by H3C Group.About Montage Shareholder Customer Partner Employee 29
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityPartner Responsibility
Supply Chain Cooperation with Investment
Management Industrial Chain for Industry
Partners DevelopmentMontage Technology CSR Report (2021)
Supply Chain Management RESPONSIBLE CONSUMPTION AND PRODUCTION
In 2021 Montage Technology continued to maintain solid strategic partnerships with suppliers. Although the supply In terms of supplier evaluation the Company selects suppliers based on such
chain capacity is tight with the support of suppliers the Company secured the basic production capacity for major factors as operating conditions quality control production capacity technical
products by predicting the situation and taking effective countermeasures. capacity business cooperation price level and ESG.Supplier evaluation
* Win-win cooperation between supply and demand: The Company works to
develop long-term strategic partnerships with suppliers that have Operating Quality Production Technology Business ESG
comprehensive capabilities to create a competitive procurement supply chain. Price levelconditions control capacity capacity cooperation
Maintaining In terms of supplier management the Company conducts regular evaluations
solid * Sound communication mechanism: The Company establishes an effective and examinations on wafer fabrication and packaging and testing plants
strategic mechanism for communication with suppliers to improve work efficiency. maintaining supervision and control over the process quality.partnerships
Supplier management
* Open just and fair competition environment: Based on the unified supplier
management approach and the supplier management platform the Company
performs statistical analysis on a regular basis to provide the data necessary to Evaluation Examination Supervision Process quality
build a long-term stable supply chain.The Company has enjoyed a long-standing partnership with major suppliers
About Montage Shareholder Customer Partner Employee 31
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Cooperation with Industrial Chain Partners PARTNERSHIPS FOR THE GOALS
The Company has established a sound mechanism for cooperation Increasingly Improved Jintide Server
and sharing with partners in the industry chain to jointly develop new
products and expand potential markets. This mechanism allows the Platform Ecosystem
Company to quickly enter new fields of technology integrate industry
chain resources and join forces with partners to stay a step ahead in Jintide CPU and the hybrid security DIMM have been certified by
potential markets. several partners for compatibility improving the ecosystem
increasingly. Some of the certifications are shown below:
The First-Generation DDR5 Memory
Module Supporting Chips (SPD TS PMIC)
In 2021 the Company and its partners successfully developed the
mass-production versions of the first-generation DDR5 Serial Presence
Detect (SPD) Temperature Sensor (TS) and Power Management IC
(PMIC).Jintide CPU
The Company has jointly developed Jintide CPU with Tsinghua
University and Intel.In 2021 the Company launched the third-generation Jintide CPU.About Montage Shareholder Customer Partner Employee 32
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
PARTNERSHIP
S FOR THE
Investment for Industry Development GOALS
The Company seeks potential partners by utilizing its resources in the upstream and
downstream of the industry chain and drives the development of relevant businesses
through investment and value-added services.Founded in2010 Primarius Technologies is an EDA Company with
international market competitiveness and advanced EDA core
technologies. It has been dedicated to improving the overall
In December 2021 Shanghai technology level and market value of the IC industry providing
Primarius Technologies Co. Ltd. professional and efficient EDA process and tool support as well as
invested by the Company was promoting the further integration between IC design and
listed on SSE STAR Market. manufacturing accelerating process development and chip design
improving IC product yields and performance and enhancing the
In January 2022 Credo Technology overall market competitiveness of IC enterprises through EDA
invested by the Company was methodology innovation.listed on NASDAQ.Credo (NASDAQ: CRDO) founded in 2008 is a global leading
semiconductor design company. It focuses on the development of
SerDes a physical layer high-speed communication technology to
provide low-cost low-power state-of-the-art ultra-high-speed
single-channel 112G/56G/28G commercial solutions for mobile
Internet cloud computing big data 5G and AI applications.About Montage Shareholder Customer Partner Employee 33
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityEmployee Wellbeing
Employee Policy Career Development Talent Incentive Employee Benefits Various ActivitiesMontage Technology CSR Report (2021)
Employee Policy GOOD HEALTH GENDER DECENT WORK REDUCE AND WELL-BEING EQUALITY AND ECONOMIC INEQUALITIESGROWTH
Talents are the foundation and driving force for technical innovation. Montage Technology
has always regarded its employees as the core competitiveness of the Company. Montage By the end of 2021 the total number of employees of the Company reached 527 30% of which
Technology is committed to creating a diversified and inclusive work environment. The are females increasing by 1.2% over the previous year. Females account for 21% of the R&D
Company has been working hard to attract and retain outstanding talents by offering technicians increasing by 1.8% over the previous year.exciting and challenging career opportunities various talent incentive measures and
a comprehensive employee benefits system. Thanks to these efforts the Company has
maintained a stable workforce.Attach Importance to Employees' Human Rights
[Protection of human rights and privacy] The Company attaches importance to the protection
of human rights and privacy of all employees.[Non-discriminatory practices] The Company treats all employees equally without any
discrimination. The Company treats all applicants equally without discrimination on the basis 527 30% 21%
of nationality race gender age marital status maternity status disability etc.[Prohibition of child labor] The Company explicitly prohibits the recruitment of children under employees in total of employees are females of R&D personnel
the age of 16. are females
[Open communication channel] The Company implements a flat management system
encouraging direct communication between employees and management while holding
occasional staff seminars to provide a smooth communication channel between employees
and management. Encourage Employee Development
Montage Technology gives full play to the potential and initiative of employees helps employees
achieve their learning and development goals and establishes a talent training system.* In 2021 the Company's labor contract * In 2021 the occupational injury rate Committed to the growth and development of every employee the Company provides multiple
signing rate was 100%. was 0%. development channels and promotes the career planning and development of employees
* In 2021 the Company's commercial * In 2021 the employee mortality rate according to business needs. Promotion opportunities are offered based on employee
insurance coverage rate was 100%. was 0%. performance competence development potential vacancies and other factors.* In 2021 0 working day was lost due to * The employee turnover rate of the The Company has created a sound environment for the development and growth of fresh
occupational injuries. Company has remained at a low level graduates and implemented personalized training approaches that shorten their growth cycle.in the industry for 3 consecutive years.About Montage Shareholder Customer Partner Employee 35
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Career Development QUALITY EDUCATION
The Company has been introducing excellent talents from Education and Training of Employees
home and abroad strengthening the construction of the
talent team paying attention to the improvement of In 2021 the Company actively and efficiently carried out various types of talent training programs in line
employees' capabilities continuously improving the with its strategic objectives including:
comprehensive quality of employees through education
training etc. and providing good opportunities and
platforms for employees to give full play to their subjective
initiative in their career development.Employee Training Approaches
* Considering the abilities potentials and interests of Montage Chip Montage Star Program Montage Freshmen Montage Youth Program
each employee Program A 6-month training Program Internal technology and
* Setting career goals based on business needs Training program for program for fresh Training program for project experience learning
managers graduates new employees and sharing program etc.* Individualized cultivation
* Promotion & growth
Face-to-face training online teaching project discussions seminars team building activities etc.On-Campus Recruitment
In 2021 the Company recruited 29 fresh graduates from
Xi'an Jiaotong University Southeast University Hefei sessions hours above
University of Technology Xidian University and other of face-to-face training of teaching trainees training coverage rate
well-known universities in China bringing new energy to
the Company. The Company also developed a customized
training plan for them to facilitate their growth.About Montage Shareholder Customer Partner Employee
Technology Responsibility Responsibility Responsibility Wellbeing Social Responsibility
36Montage Technology CSR Report (2021)
Career Development
Case I: Training for Fresh Graduates —— Montage Star Program
Montage Technology has launched the Montage Star Program for 2021 fresh graduates to help them adapt to changes from campus to workplace and complete on-boarding within 6 months.The six-month training program includes one week of face-to-face learning (introduction to corporate culture responsibilities of each department and company products showroom and lab
tour training exams reading activities kick-off CEO seminar team building activities goal communication workshops etc.) supervisor coaching for licensed induction training communication
and coaching mid-term and final assessments as well as professional and general competency training.About Montage Shareholder Customer Partner Employee
Technology Responsibility Responsibility Responsibility Wellbeing Social Responsibility
37Montage Technology CSR Report (2021)
Career Development
Case II: Training for Technical Managers —— Montage Chip Program
To improve the business level of the Company's technical managers and create a good learning atmosphere as well as to help new employees quickly integrate into the Company's technical
management system Montage Technology has developed a training program for technical managers and veteran employees to enable technical managers to systematically think and analyze
from various perspectives such as technology management strategy formulation and implementation helping build a learning R&D team.About Montage Shareholder Customer Partner Employee 38
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Talent Incentive DECENT WORK AND ECONOMIC GROWTH
Montage Technology has established a talent incentive system in line with its development Equity Incentive
strategy and actual situation as required by relevant national laws and regulations. The
remuneration package includes base pay equity incentives special rewards etc. The The Company launched the restricted stock incentive plan in 2019 and
Company combines corporate culture values work environment and career development completed the first-period vesting for the incentive recipients of the first
opportunities with competitive remuneration and benefits to motivate top performers and granted and the reserved granted incentive objects in 2021. The core principle
attract and retain talents enabling a win-win situation for the employees and the Company. of the Company's equity incentive is to allow employees to benefit from the
achievements of the Company's development. The total number of the first
granted and reserved granted incentive objects exceeded 95% of the
Intellectual Property Incentive Company's total employees at the time of the award.In 2021 the Company vested 395 incentive recipients in total accounting for
The Company directly aligns the employees' innovative contribution with their incomes 75% of the Company's total employees by the end of the period.allowing them to share the benefits brought by technological innovation by taking an
active part in innovation. The implementation of this incentive measure will further mobilize the
A total of 129 patent relevant awards were granted to the employees in 2021. enthusiasm of employees give play to the innovation ability of the team and
provide a powerful guarantee for the improvement of the Company's
operating efficiency and the long-term and steady development of the
Company's business.The Company's second meeting of the second session of the Board of Directors
held on October 28 2021 approved the Proposal on the Repurchase of the
Company's Shares by Centralized Competitive Trading agreeing to repurchase
part of the issued RMB common shares of the Company by its own funds
through the SSE trading system by centralized competitive trading. All the
repurchased shares will be used for the employee stock ownership plan
and/or share incentives at an appropriate time.Note: According to the Statistics and Analysis Report on the Practice of Equity
Incentives of A-Shares Listed Companies in 2021 released by Realize Investment
Consulting Co. Ltd. the proportion of the number of equity incentive objects in
the total number of listed companies in 2021 is 22.49% on average.About Montage Shareholder Customer Partner Employee 39
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
Employee Benefits
Employee Benefits
The Company provides employees with a safe and healthy work environment national statutory social The Company strives to build a safe culture to create a safe and healthy working environment for employees.insurance housing provident fund as well as various benefits including paid leave commercial The Company offers pre-job and on-the-job occupational health examinations for employees to safeguard
insurance physical examination marriage and childbirth allowance and meal allowance. their health.* Paid leave: In addition to statutory annual leaves additional paid leave is granted as appropriate. The Company regularly conducts sanitary supervision and spot checks and inspections in the common area
* Commercial insurance. Comprehensively cover the risks that employees may encounter during their to ensure food and water safety and continuously improve the working environment.employment and alleviate the economic pressure on the employees in medical treatment through
group supplemental health insurance.* Settlement and residence permit support: The Company provides employees with residence permits
residence transfers and settlements of residence for fresh graduates.* Meal allowance: The Company provides lunch allowances for employees.* Marriage and childbirth allowance: In addition to the statutory marriage and childbirth benefits the
Company also provides additional marriage and childbirth allowance for employees.* Team building activities: A monthly departmental activity fund is provided to promote communication
among colleagues and improve team cohesion.* Annual physical examination: The Company arranges a routine physical examination annually to help
employees prevent diseases and stay healthy.Safety Drill
Marriage
Commercial and
insurance In 2021 the Company organized childbirth
Settlement allowance employees to participate in a fire drill to
and residence Annual Team improve their awareness and ability to Paid leave permit physical building
support examination activities
implement self-rescue in response to
unexpected accidents.Meal
allowance
About Montage Shareholder Customer Partner Employee
Technology Responsibility Responsibility Responsibility Wellbeing Social Responsibility
40Montage Technology CSR Report (2021)
Employee Benefits DECENT WORK AND ECONOMIC GROWTH
Work Environment Labor Union Protection
The Company has set up a labor union to protect the rights and interests of
employees and provided a platform for employees to participate in democratic
communications such as surveys interactive interviews talks questionnaires and
network communications to master the conditions of all the factors affecting
employee satisfaction with rights and interests including cultural inclusion
organizational care teamwork and career development and provide personalized
support to employees by identifying key factors.In 2021 recommended by the
Company's labor union employee
Pengzhan Zhang was awarded the
Shanghai May Day Labor Medal.About Montage Shareholder Customer Partner Employee 41
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
DECENT WORK
AND ECONOMIC
Various Activities GROWTH
"Learning" at
Montage Technology
Business communication meetings and experience-sharing sessions
About Montage Shareholder Customer Partner Employee 42
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
DECENT WORK
AND ECONOMIC
Various Activities GROWTH
"Fun" at
Montage Technology
Friendly sodalities and warm birthday parties
About Montage Shareholder Customer Partner Employee 43
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilityMontage Technology CSR Report (2021)
DECENT WORK
AND ECONOMIC
Various Activities GROWTH
"Playing" at
Montage Technology
Pleasant outdoor team building activities and lively club activities
About Montage Shareholder Customer Partner Employee 44
Technology Responsibility Responsibility Responsibility Wellbeing Social ResponsibilitySocial Responsibility
Energy Saving Public Service University-
and Enterprise
Environmental Cooperation
ProtectionMontage Technology CSR Report (2021)
RESPONSIBLE
SUSTAINABLE CONSUMPTION CLIMATE
CITIES AND AND ACTION
Energy Saving and Environmental Protection COMMUNITIES PRODUCTION
Pollution-Free Business Model Paying Attention to the Investigation Energy Conservation and Emission
Montage Technology seeks to realize harmonious of Partners' Energy Conservation and Reduction & Waste Sorting
development of the Company and environment. The
Company adopts a fabless operating model which allows the Environmental Protection Indicators The Company advocates "energy saving and emission
Company to give full play to its technological advantages for reduction" policies in daily business. The Company
rapid development of relevant products without having any When selecting partners the Company attaches great importance encourages employees to use their own cups rather than
foundry so the daily operation is free of environmental to examining the performance of a potential partner in energy disposable paper cups in the office; requires employees
pollution. conservation and environmental protection by identifying risks that to print on both sides of the paper to avoid wasting
may cause environmental impacts on the society. paper; strictly controls the daily water consumption in the
The Company has formulated strict green product implementation office to avoid wasting water resources; strengthens
policies and strategies: The main products (including RCD DB power saving management installs self-control devices
Technology Advancement for Low PMIC SPD TS and PCIe Retimer) are required to comply with China
to monitor power consumption equipment and requires
RoHS and EU RoHS REACH requirements and are halogen-free. all employees to turn off the power after use reducing power consumption in the office. In 2021 the Company's
Carbon Emission The first-generation DDR5 memory interface chips and module electricity consumption reduced by about 7% per capita.supporting chips mass-produced by the Company in 2021 also At the same time the Company strictly implements waste
With the performance improvement and quantity increase of comply with China RoHS and EU RoHS REACH requirements
servers the power consumption of related products has and are halogen-free.sorting by reducing the number of garbage bins in the
office and posting waste sorting slogans.gradually become a prominent problem. Montage Technology
has made reducing power consumption one of the main goals in
the product design stage and has independently developed a
series of low-power consumption design technologies to
effectively reduce product power consumption assist end-users
to reduce energy consumption and protect the environment.Taking DDR5 RCD chips as an example technological
advancement has reduced the power consumption of the
second-generation DDR5 products by more than 5% compared Waste Water saving sorting and emission
reduction
to the first-generation products at the same rate. According to
relevant research with every 1W reduction in power
consumption on semiconductor devices the overall power
consumption of data centers will be reduced by 2–3W.The Company has never had any litigation or punishment
related to environmental protection since its establishment.About Montage Shareholder Customer Partner Employee Social 46
Technology Responsibility Responsibility Responsibility Wellbeing ResponsibilityMontage Technology CSR Report (2021)
Public Service
Montage Technology has long been committed to public welfare support and has been giving back to society based on the development achievements of the Company. The Company formulates
and implements a proper public welfare support plan every year in which senior executives practice and encourage all employees to actively participate to achieve the harmonious development
of the Company and society. The Company actively organizes volunteer activities for its employees every year. In 2021 the Company's employees voluntarily donated blood (totaling
31 employees) donated books and clothes to poor areas and served special education centers to provide care for autistic children.
Case I: Book Donation Activity Case II: Organizing Employees to Participate in
In 2021 Montage Technology's (Xi'an) employees actively participated in the public Voluntary Blood Donation
welfare activity of "Donating Books for Building Dreams" donating nearly 100 books in just
one week and the Company was granted the honor of "Public Welfare Enterprise". Voluntary blood donation is a traditional public welfare activity of Montage Technology.In 2021 a total of 31 employees of Montage Technology participated in voluntary blood
These books have been sent to Chonger Township Central Primary School in Ruoergai donation.County Tibetan Qiang Autonomous Prefecture of Ngawa Sichuan Province and Pingba On November 12 2021 Montage Technology's (Kunshan) employees came to the blood
Township Middle School in Jingshan County Hubei Province helping mountain schools donation house on Chaoyang Road. They donated 200CC blood respectively
build libraries that enrich children's extracurricular life. The donated books helped children contributing to the social medical industry and warming the world with their love.learn knowledge and perceive the world through reading and built a bridge for them to
explore the world and realize dreams.About Montage Shareholder Customer Partner Employee Social 47
Technology Responsibility Responsibility Responsibility Wellbeing ResponsibilityMontage Technology CSR Report (2021)
University-Enterprise Cooperation
Montage Technology has carried out extensive talent exchange and technical
cooperation with famous universities in China such as Tsinghua University Shanghai
Jiao Tong University and Duke Kunshan University aiming to cultivate high-quality
talents and promote the application of advances in science and technology.Cooperation Cases
The Company and Shanghai Jiao Tong University established the "Joint Laboratory for
Frontier Technology of IC Design"
On June 16 2021 the "Joint Laboratory for Frontier Technology of IC Design" (hereinafter referred to as
the "Joint Laboratory") jointly built by Montage Technology and Shanghai Jiao Tong University was
inaugurated. As a world-class university and a world-class enterprise respectively both parties will
leverage this platform to fully promote the deep integration of sci-tech innovation and industrial
applications in the field of IC satisfying national development needs.The joint laboratory will focus on the cooperation in technological innovation and talent training to
achieve technological breakthroughs in key areas cultivate high-quality talents for the industry and
strive to be a new engine for economic and social development in line with national innovation-driven
development strategies.Three project initiation requests have been approved by the Management Committee and Academic
Committee of the Joint Laboratory in 2021 marking the beginning of the Joint Laboratory's substantive
operations.About Montage Shareholder Customer Partner Employee Social 48
Technology Responsibility Responsibility Responsibility Wellbeing ResponsibilityMontage Technology CSR Report (2021)
Suggestion and Feedback
Thank you for reading our 2021 Montage Technology CSR Report. In Please rate the following on a scale of 1 to 5 (1 being the lowest
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