Sustainable Supply Chain｜Conflict Minerals

Incorporate ESG into supplier evaluation and audit items, leveraging influence to work hand in hand with suppliers in valuing and promoting a vision for a sustainable supply chain.

SDGS

The proportion of main suppliers that completed the RBA VAP in 2023 is

100

Annual response rate for supplier conflict minerals survey.

39.8

The proportion of local procurement in total company procurement reached a record high of

Supply-Chain Composition Framework

Supplier Management

Conflict Minerals

Conflict minerals

Nuvoton Conflict Minerals Management System

Public Statement of Non-Use of Conflict Minerals.

All suppliers are required to sign a "Declaration of Non-Use of Conflict Minerals" and are requested to conduct thorough investigations and disclose reports on responsible sourcing of conflict minerals.

Conduct annual responsible sourcing due diligence on conflict minerals, covering raw material suppliers, outsourced processing suppliers, and outsourced manufacturing suppliers.

The scope of responsible sourcing due diligence on conflict minerals includes Sn, Ta, W, Au, Co, and Mica.

To safeguard international human rights, Nuvoton attaches great importance to the issue of conflict minerals. It has established a Conflict Minerals Management System and publicly announced the Declaration of Non-Usage of Conflict Minerals on the official Nuvoton website. Nuvoton is committed to avoiding the use of metals obtained from illegal mining operations that violate human rights in both product materials and production processes. Suppliers are required to sign a "Declaration of Non-Usage of Conflict Minerals," including wafer outsourcing manufacturers, packaging factories, and raw material suppliers, with a signing rate of 100% over the past three years.

Nuvoton has established Conflict Minerals Management Measures, including:

Comprehensive requirement for suppliers to sign a declaration statement.

Requiring suppliers to sign a "Declaration of Non-Usage of Conflict Minerals” to comply with the prohibition of using conflict minerals.

Regular product surveys

Requiring relevant suppliers to conduct regular and thorough investigations to ensure that metals from conflict areas are not used in the products.

To safeguard human rights, Nuvoton attaches great importance to the issue of conflict minerals. It is committed to avoiding the use of metals from illegal mining that violate human rights in the product materials and production processes. Nuvoton requires semiconductor foundry subcontractors, packaging plants, and raw material suppliers to sign a "Declaration of Non-Usage of Conflict Minerals” to state that tantalum (Ta), tin (Sn), tungsten (W), and gold (Au) used in the manufactured products do not originate from armed groups that violate human rights in the Democratic Republic of the Congo or its neighboring countries/regions. Suppliers are also required to comply with the prohibition of using "conflict minerals" to be listed as qualified suppliers. Furthermore, Nuvoton requires suppliers to conduct thorough investigations and disclose due diligence reports on conflict minerals. The frequency of investigations follows updates to the Responsible Business Alliance (RBA) Code of Conduct. Conflict mineral investigations were conducted for the aforementioned suppliers (including subcontractors), all of which fully complied with the relevant regulations.

Nuvoton adopts the Conflict Minerals Reporting Template (CMRT) released by the Responsible Minerals Initiative (RMI) for conflict minerals including tin, tungsten, tantalum, and gold. Conflict mineral due diligence investigations have been conducted since 2014, covering various suppliers, such as raw material suppliers, subcontractors, and contract manufacturers, to ensure that the mineral materials used in products come from smelters, refineries, or countries recognized by the RMI. In 2023, the tin, tungsten, tantalum, gold, and other mineral materials used by Nuvoton Taiwan came from 202 smelters spanning 63 countries, while those used by Nuvoton Japan came from 7 smelters spanning 6 countries. All smelters used were 100% recognized by the RMI, and none were from areas controlled by non-governmental or illegal military factions in the Democratic Republic of the Congo or neighboring countries.

In addition to 3TG minerals, Nuvoton has expanded the scope of its investigations. In 2021, investigations were conducted on cobalt and mica suppliers, with disclosure of the sources of their smelters to customers. In 2023, cobalt mineral materials used by Nuvoton Taiwan came from 10 smelters spanning 6 countries, with no suppliers using mica. Cobalt mineral materials used by Nuvoton Japan came from 8 smelters spanning 3 countries, while mica came from 3 smelters spanning 1 country. Nuvoton will continue to monitor and oversee the mineral sources provided by suppliers to ensure that its raw materials come from qualified suppliers.