Corporate Social Responsibility

Water Resources Management Policies

The environmental risk is becoming increasingly severe. Water scarcity, extreme weather events, natural disasters, man-made environmental disasters, and failure to adapt to and mitigate climate change were listed as the top 5 global risks in the Global Risk Report of the World Economic Forum 2017. Innolux performed business impact analysis and business continuity planning based on water resource risks, outlining water conservation and water recycling/reuse as the two focal aspects. Innolux developed the iFM  (intelligent facility management) and used various data statistics to control the water abundance, predict the risk of shortage, and adapt to the water crisis by optimizing the mid and long term stable management of operation. Innolux formulated water-related plans and goals. The Technology Committee of the Facility Engineering Department conducted cross-site integration and implementation and the CSR Committee reviewed the outcome of the plans and goals.

Water Risk Management
Innolux withdrew 24.73 million tons of water in 2016. Most of the water was used in the front-end production processes in the Taiwan site, accounting for 92.8% of the total water usage. Innolux adopted the water risk assessment tool developed by the WRI to identify the situation of sites located in dry areas and the risks of floods and storms, and consequently formulate appropriate management countermeasures.

Water Resources and Risk Analysis↓
Item Taiwan China
Jhunan Tainan Ningbo Foshan Nanjing Shanghai
Water source Yonghe Mountain Reservoir
Liyutan Reservoir
STSP: Nanhua Dam, Zengwun Dam
KSP: Agongdian River, Nanhua Dam, Gaoping River Weir
Ninghai Baixi Reservoir Tanzhou Waterway Qinhuai River Yangtze River
Destination of Water Discharged Hsinkung River STSP: Yanshuei River
KSP: Agongdian River
East Sea Xinan Chong New Qinhuai
Mid and lower
Reaches of Yangtze
Water Conditions Taiwan’s annual rainfall is approximately 1,650 mm which is not regarded as scarcity. However, owing to the high population density, geographic restrictions, and uneven rainfall season, the average rainfall per person is only 1/5 of the global average value.
Taiwan’s water resource now faces challenges.
Approximately 1,650 mm of rainfall a year.
No immediate risks.
Approximately 1,600 mm of rainfall a year.
No immediate risks.
Approximately 1,090 mm of rainfall a year.
No immediate risks.
Approximately 1,166 mm of rainfall a year.
No immediate risks.
Floods and storms* High risk High risk High risk Extremely high risk Extremely high risk High risk
Municipal usage (million ton) 4.35 20.69 0.62 0.61 0.29 0.17
Water use percentage 16.3% 77.4% 2.3% 2.3% 1.1% 0.6%
*Innolux adopted the water risk assessment tool developed by the WRI to identify the situation of sites located in dry areas and the risks of floods and storms, and consequently formulate appropriate management countermeasures.
Water Shortage Contingency Mechanism and Procedures
Phase 1: Water restriction
(BCP Level 1-1)
Phase 2: Cross-plant dispatch
(BCP Level 1-2)
Phase 3: Capacity reduction
(BCP Level2)
Water tank level is full (1.5 to 2 days); cooperate with science park to self-save 3% of water:
1.Reduce the backwash water in the sand filter and activated carbon tanks
2.Reduce cooling tower blow down
3.Reduce acid scrubber blow down
4.Stop PCW blow down
5.Increase water generation rate of the RO system
6.Reduce UF backwash water
7.Increase water generation rate of the RO system
8.Stop sprinklers for irrigation
Cooperate with science park to self-save 5% of water:
1.Execute water distribution to various plants based on the company's water limit regulations
2.Activate cross-plant communication mechanism
3.Cooperate with the science park to identify alternative water sources
Activate BCM:
1.Partially reduce production in the plant
2.Discuss water distribution with relevant authorities
3.Activate water dispatch (tanker dispatch)
4.Use alternative water sources
Water Efficiency Review
In 2017, Innolux participated in the expansion of the membrane bioreactor system (MBR) and improvement work of suspended solids (SS), used secondary recycling water for the wastewater scrubbers, enhanced the PIT recycling and reuse rate, and recycling of process water.
Innolux examined the outcome of the water use indicator “TFT-LCD water consumption per unit input substrate area”. The water consumption intensity in 2017 was 0.329m3/m2, 0.2% lower than 0.330m3/m2 in 2016. It failed to attain the target of 6% reduction. After analysis, Innolux found out that the main reasons were the delay of water conservation projects, recycling water of MBR RRO failed to meet the design value, the recycled raw water discharged by the DMSO and MBR+RO unit did not meet the design value, and the actual capacity is below the estimated value.
In 2018, Innolux anticipates further reducing the water consumption per unit input substrate area by 5%, compared to 2017. The China sites set their annual target for reducing the water consumption per unit input substrate area by 5% for the Ningbo and Foshan sites, 3% for the Nanjing site and 1.5% for the Shanghai site.

2017 Major Water Conservation Projects
Site Factory Project name Project content Estimated benefit (m3/year)
Jhunan T2 The water discharge recycling, and the rinsing water
from the OMB of the water discharge recycling (WWR)
The OMB resin tower carries out the ion exchange treatment for recycling process and reuse. The resin is saturated and injected with chemicals for regeneration to reduce water consumption. 8,820
T3 In the MBR system, the organic sewage recycling of
a small amount of CF is implemented.
A small portion (6%) of organic processing wastewater from CF is recycled to the MBR collection tank to save the tap water. 905
Tainan Fab6 Recycling of backwashing water during 2B3T resin cleaning The resin cleaning water is recycled to the TFT recycling system of W18 13,440
Fab7 Sewage recycling through thin discharge for TMAH Use the special resin to absorb the TMAH in the sewage and lead the TMAH to the RO filter for recycling. 292,000
Fab7 Water discharge recycling VDG+RO The discharged condensate is recycled to the ACF recycling unit of W17. 29,200
Fab7 REST FR water discharge recycling The membrane bioreactor (MBR) system is implemented for recycling. 51,100
Fab7 REET FR water discharge recycling The bio polisher system is introduced for recycling. 40,150
Fab8 Sewage recycling project for the sewage through the
thin discharge of TMAH (TMAH FR)
Use the resin to remove the TMAH and lead the sewage to the TFT recycling system of W18 for recycling. 350,400
Fab8 RO concentrate sewage recycling project (RRO) Use the RO for the treatment of the raw MBR RO concentrated water to increase the recycling water and reduce the sewage. 262,800
FS HA Water discharge recycling plant of LCM 3 Recycle the discharged process water and use it for bathroom to save the tap water. 25,584
HA/HB Recycling of water discharge for the fire spray cooling
device in HA and HB
Modify the fire spray cooling device in HA and HB. The discharged water is recycled to the industrial pool for the water pump and water house. The water is used for the water supplement of cooling tower and bathroom flushing. 14,400
Increasing the Recycling Rate of Process Water
The Taiwan site saved 288,678,559 tons of process water in 2017 (equivalent to roughly 115,471 standard-sized swimming pools), for an average process water recycling efficiency of 95.4%*. These results exceeded the requirement of 85% regulated by the Science Park Administration.
*Process water recycling rate = (recycling amount of process water + amount of recycled use) / (process water withdrawal+ accumulated amount of recycled water used)
Drought resistance
Reclaimed Water Resources Development Act was approved by the government in December 2015 to enhance national drought resistance. In July 2016, Innolux was the first to support using reclaimed water in panel manufacturing by signing a letter of intent to support Yongkang reclaimed water used in STSP and Tree Valley parks,together with Ministry of Economic Affairs, Ministry of the Interior, Ministry of Science and Technology and Tainan City Government. The Tainan City Yongkang Recycling Plant is one of the six demonstration plants and will be open in 2019. At the first stage Innolux will use 4,000 tons of reclaimed water a day with ultimate goal of 6,000 tons a day. The reclaimed water can serve as a replacement of municipal water with stable quality, thus reduce the impact of water shortages during drought periods, co-create renewable water-friendly environments, and promote sustainable water resources.
Wastewater Treatment
The types of wastewater produced during various production processes include wastewater from cleaning, dying, etching, developing, stripping, as well as water containing chrome and fluoride. Because the wastewater covers organic, acid/alkali and metals and other characteristics of different wastewater, the operational wastewater is diverted and separately collected from the design stage to effectively enhance the efficiency and stability of wastewater treatment equipment. Then, based on the type of wastewater, a combination of biological, fluidized bed crystallization, and coagulation and sedimentation treatment methods is employed to process the wastewater, ensuring that the discharge complies with park regulations.
Innolux produced a total of 19.40 million tons of wastewater in 2017. Of which, the Taiwan sites produced 18.49 million tons, comprising 95.3% of the overall amount, and China sites produced 0.91 million, comprising 4.7% of the total amount.
Item/Year/Site Y2014 Y2015 Y2016 Y2017
Taiwan China Total Taiwan China Total Taiwan China Total Taiwan China Total
Wastewater amount (m3) 19,946,773 1,860,422 21,807,195 18,288,309 1,534,232 19,822,541 16,824,226 1,067,548 17,891,774 18,485,079 913,364 19,398,443
COD (tons) 1,870.50 282.2 2,152.70 1,489.20 289.3 1,778.50 1,892.1 209.7 2,101.7 2,089.9 47.8 2,137.7
BOD (tons) 584.3 119 703.3 447.3 109.1 556.4 648.6 59.89 708.5 799.2 30.49 829.7
SS (tons) 797.6 205.7 1,003.30 734.2 133.5 867.7 632.4 46.85 679.3 1071.2 55.83 1127.0