Supply Chain Overview
Sustainable Supply Chain Management Goals
Establish a supplier management system and regulations to meet quality, cost, delivery, service, technology, and ESG standards, and require upstream suppliers to fulfill CSR commitments.
Unimicron, adhering to customer requirements, is dedicated to enhancing its ESG management system. Beyond self-regulation, we encourage our suppliers to join us in fostering sustainability and shared prosperity.
Our suppliers fall into seven categories: raw materials, equipment, engineering, waste disposal, on-site services (such as security), human resources brokers, and freight forwarders by land, sea, and air. Among these, raw material and equipment suppliers in Taiwan are paramount, encompassing 704 companies. We have established a robust management system for major raw material and equipment suppliers involved in our manufacturing process, ensuring adherence to quality and ESG principles.
Sustainable Supplier Management
Unimicron promotes sustainable supplier management through the "Supplier Corporate Social Responsibility Letter of Commitment." Based on the RBA Code of Conduct (RBA CoC), the International Labor Organization Convention (ILO), and SA 8000 standards, it covers ethics, human rights, the environment, and health and safety. We require raw material and equipment suppliers to sign this commitment.
Unimicron is committed to establishing a supplier management system and engaging yearly with suppliers to build sustainable, win-win partnerships. To create a resilient supply chain, we focus on ESG policy, the RBA Code of Conduct, business continuity plans, financial risks, conflict minerals, energy conservation, and carbon reduction. The "Supply Chain Management Subcommittee," involving various departments, uses online training, regular guidance, and audits to manage ESG risks and enhance quality, environmental protection, green procurement, safety, human rights, ethics, and supply chain management. The RBA CoC and other potential risks are included in procurement risk assessments. The Materials Department prioritizes mitigation plans for high-risk items as a necessary goal to achieve uninterrupted supply.
Signature Rate of Supplier Corporate Social Responsibility Letter of Commitment
(Unit: %)
Pillars of Supplier Corporate Social Responsibility Letter of Commitment
- Business Ethics Compliance Statement
- Statement of Social Responsibility
- Warranty of Non-infringement
- Environmental Hazardous Substances Use Declaration
- Commitment to the Non-usage of Illegally Mined Raw Materials
2023 Supply Chain Management
| Supplier Profile Analysis in Taiwan Facilities | Raw Material Supplier | Equipment Supplier |
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| Definition | Raw material suppliers for product production | Provide process production and quality inspection equipment |
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| Management Policy | For raw material supply partners, adopt comprehensive quality, cost, delivery, service, and technology management strategies, along with major supplier RBA supply chain management practices, to ensure supply quality meets customer expectations | Advance technology exchanges aligned with Unimicron's development direction, foster joint development, provide equipment maintenance, and implement key suppliers' RBA CoC management |
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| Importance | Provide high-standard, efficient, timely, quality raw materials to Unimicron to meet customer production requirements | Unimicron produces high-quality products with a positive yield rate that meets customer requirements |
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| Number of Suppliers | 530 | 174 |
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| Proportion of Suppliers | 75% | 25% |
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| Percentage of Transaction per Procurement Category (%) | 75% | 25% |
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| Difference Analysis with 2022 | - Supplier Count Difference: There was an increase of 112 raw material suppliers and 10 equipment suppliers, mainly due to the merger of Qun Hong Technology Inc. into Unimicron and the conversion of the subsidiary Subtron Technology.
- Procurement Amount Difference: The Russia-Ukraine war and US inflation control led to a sluggish market in 2023. Consequently, capital expenditures were adjusted, affecting the proportions of raw material and equipment procurement amounts.
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Local Procurement
We uphold the principle of corporate sustainability and aim to promote the entire supply chain's sustainable development. By facilitating operational activities, promoting local economic growth, localizing materials, and supporting local suppliers, we strive to reduce unnecessary air and sea transportation costs and minimize the carbon footprint from material transportation.
Mainland China Facilities
- Raw Material Suppliers
-Percentage of Local Procurement: 83%
-Local procurement increased by 2% compared to 2022. This not only reduces carbon emissions from transportation but also mitigates risks associated with regional political instability. - Equipment Suppliers
-We have successfully partnered with local equipment suppliers to implement our local procurement strategy.
Taiwan Facilities
- Raw Material Suppliers
-Percentage of Local Procurement: 68%
-Local purchases fell by 2% from 2022, mainly due to changes in product structure. Although imports also decreased, the decline was less than the overall reduction in purchases, leading to a 2% increase in the proportion of foreign purchases. The company continues to source substrates from a major Japanese supplier with a plant in Taiwan. Once imported from Japan, some substrates are now produced locally, contributing 29% to our procurement in 2023. - Equipment Suppliers
-We have successfully partnered with local equipment suppliers to implement our local procurement strategy.
Percentage of Local Procurement Amount
(Unit: %)
| Region | 2020 | 2021 | 2022 | 2023 |
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| Taiwan Facilities | 73 | 72 | 70 | 68 |
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| Mainland China Facilities | 84 | 84 | 81 | 83 |
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Note: Local scope includes local suppliers and Taiwan agents.
