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.
50
%
The proportion of main suppliers that completed the RBA VAP in 2024 is
100
%
Annual response rate for supplier conflict minerals survey.
44.6
%
The proportion of local procurement in total company procurement reached a record high of
Sustainable Supply Chain Management
As a key player in the semiconductor supply chain, with a focus on chip design upstream and wafer manufacturing midstream, Nuvoton closely collaborates with suppliers in the industry chain to form partnerships based on specialized division of labor and mutual cooperation. As a global semiconductor industry leader, collaborating with suppliers to build a sustainable supply chain is a key indicator of Nuvoton's sustainable development management. Nuvoton pays attention to labor rights in the supply chain, requiring suppliers to operate in compliance with relevant laws of their operating countries and comply with relevant international industry codes of conduct, including the Responsible Business Alliance (RBA) Code of Conduct and any changes or amendments thereto. All manufacturers in the supply chain are required to sign the "Compliance Commitment Code of Conduct" and "Confidentiality Agreement." Over the past three years, 100% of Nuvoton's suppliers have signed the Supplier Code of Conduct. In 2024, Nuvoton's suppliers did not experience any human rights disputes related to child labor, forced labor, violation of the freedom of association or collective bargaining rights of employees.
In the risk management of critical materials (wafers, chemicals, gases, targets), Nuvoton employs three main control strategies. In 2024, there were no instances of critical 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 2023, we conducted RBA risk assessments for our top 92% suppliers by revenue, covering ESG risk evaluation content (including environmental, social, and governance aspects).
Starting from 2024, key suppliers are required to undergo regular assessments, including completing a self-assessment questionnaire (SAQ) on the Business Continuity Plan (BCP) and compliance with product-related regulations and customer specifications. Nuvoton commits to continually assessing supplier risks, measuring the extent of negative environmental and social impacts, and devising improvement plans to enhance the resilience of the overall supply chain.
