Sustainable Supply Chain｜Supplier Management
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.
57
%
The proportion of main suppliers that completed the RBA VAP in 2025 is
100
%
Annual response rate for supplier conflict minerals survey
30.3
%
The proportion of local procurement in Nuvoton Taiwan's total procurement reached 30.3%, while that of Nuvoton Japan reached 43.7%
Sustainable Supply Chain Management
Nuvoton has established a Supplier Management Team under the Sustainability Development Committee to formulate and implement policies related to sustainable supplier management. Through its influence, Nuvoton aims to work with suppliers to promote corporate sustainability and achieve its vision of developing a sustainable supply chain.
For Nuvoton Taiwan, the sustainable supply chain strategy focuses on establishing risk management measures for critical materials and setting short-, medium-, and long-term targets to increase the proportion of major suppliers that complete the RBA Validated Assessment Program (VAP) and publish sustainability reports. For Nuvoton Japan, different risk assessment frequencies are established for all suppliers, including outsourced semiconductor assembly and test (OSAT) providers and foundries. Nuvoton Japan also conducts various surveys to assess and manage supply chain sustainability and provides procurement personnel with training on Japanese government procurement regulations.
As a semiconductor company engaged in upstream chip design and midstream wafer manufacturing, Nuvoton closely collaborates with suppliers across the industry value chain to establish partnerships based on specialized division of labor and mutual cooperation. As a key player in the global semiconductor industry, Nuvoton considers collaboration with suppliers to build a sustainable supply chain to be a key aspect of its sustainability management.
Nuvoton places great importance on labor rights throughout its supply chain and requires suppliers to comply with applicable laws and regulations in the countries where they operate, as well as relevant international industry codes of conduct, including the Responsible Business Alliance (RBA) Code of Conduct and any subsequent changes or amendments. Qualified suppliers on the Approved Vendor List (AVL) are required to sign the "Code of Conduct Compliance Commitment" and the "Confidentiality Agreement." The signing rate has remained at 100% over the past three years. In 2025, Nuvoton's suppliers had no reported human rights disputes involving child labor, forced labor, or violations of employees' freedom of association or collective bargaining rights.
For the risk management of critical materials, including wafers, chemicals, gases, targets, and quartz, Nuvoton has established three main control strategies. In 2025, there were no incidents of critical raw material shortages:
Supplier Selection and Evaluation
Nuvoton's selection mechanism for new suppliers is designed with reference to RBA standards. It considers multiple factors, such as the use of hazardous substances, quality, price, and environmental considerations. Suppliers meeting Nuvoton's requirements must sign agreements including the "Code of Conduct Commitment," "Confidentiality Agreement," and "Declaration of Non-Usage of Conflict Minerals." Nuvoton also requires suppliers to faithfully execute all transactions without harming Nuvoton's interests or reputation to become qualified suppliers. Additionally, Nuvoton encourages suppliers to obtain international certifications such as ISO 14001 for environmental management systems. If suppliers cannot obtain these certifications promptly, Nuvoton requires them to provide a schedule for obtaining the certification.
| Selection Mechanisms for Suppliers | |
|---|---|
 Environmental Management System Certification |
|
 Code of Conduct |
|
 Conflict Minerals Management |
|
Risk Assessments
In 2025, Nuvoton undertook sustainability risk assessments for 99 major and raw material suppliers, achieving a 100% pass rate. The assessment findings indicated that none of the suppliers posed actual or potential environmental or social impact events, and no partnerships were terminated due to significant deficiencies. Nuvoton Taiwan conducts the RBA VAP audit for major suppliers on an annual basis. The audit encompasses an evaluation of suppliers' ESG risk assessments across all three dimensions. Should deficiencies be discovered during the audit process, suppliers are expected to submit comprehensive improvement plans detailing specific actions and timelines. Nuvoton also provides timely guidance and support while maintaining follow-up to ensure compliance.
In 2025, 14 suppliers were audited, representing 90% of AVL suppliers in terms of transaction amounts, with 8 suppliers successfully passing the RBA VAP audit—an increase of 1 supplier compared to 2024. Furthermore, Nuvoton performs annual audits of packaging and testing suppliers to ensure adherence to quality standards. In 2025, 10 packaging and testing suppliers were audited, achieving a 100% pass rate without any significant deficiencies. Nuvoton Japan also conducts regular assessments of existing suppliers, which include sustainability activity surveys and scope 3 emissions assessments, requiring suppliers to make improvements as necessary based on the survey results.
