Sustainable Supply Chain｜Supply-Chain Composition Framework

Nuvoton has aimed to establish a semiconductor supply chain that is robust and resilient in the long term. It prioritizes the localization of raw material production, continuously increasing the proportion of local procurement, and gives preference to environmentally friendly products that are low in pollution and recyclable. By implementing social and environmental responsibilities in the supply chain, Nuvoton seeks to have a positive impact on society, the environment, and the economy. All suppliers are required to sign agreements including the "Compliance Commitment Code of Conduct," "Confidentiality Agreement," and "Conflict-Free Minerals Declaration," with sustainability projects integrated into supplier evaluations. Nuvoton has set goals to gradually increase the proportion of key suppliers passing RBA VAP and publishing sustainability reports, encouraging them to obtain international certifications such as ISO 14001 for environmental management systems.

Global Supply Chain

In 2023, Nuvoton had a total of 143 suppliers across various categories including raw materials, quartz, photomasks, outsourcing processing, subcontracting, wafer foundry, and logistics providers. The majority, about 74.8%, were local businesses registered in Taiwan, followed by 18.2% from China, 2.8% from Japan, 1.4% from South Korea, 0.7% from the United States, and 2.1% from other regions. These suppliers have established long-term cooperation and provided stable supplies, with no significant changes in the supply chain observed in 2023. In the same year, Nuvoton Japan had a total of 127 suppliers, with 114 located domestically in Japan and 13 overseas. The majority, accounting for 92%, were local businesses registered in Japan.

Nuvoton's Supplier Types

Chemicals

Outsourcing 

Contractors

Target 

Primer Wafer

Photomasks

 Raw Material Wafers

 Gases 

Outsourcing 

Quartz

Localizing the Production

In recent years, Nuvoton has been committed to localizing the production of raw materials to reduce transportation costs, carbon emissions, and risk diversification. Additionally, it aims to promote local production in Taiwan to increase employment opportunities. Local suppliers for Nuvoton Taiwan are primarily from the Taiwan region, with important operational bases located at the Taiwan headquarters. Similarly, local suppliers for Nuvoton Japan are from the Japan region, with important operational bases located at the Japan headquarters. In 2023, the proportion of locally sourced raw materials for Nuvoton Taiwan reached 41.6%, marking a three-year high. Meanwhile, for Nuvoton Japan, this proportion was 52% in 2023, indicating that local sourcing remains an important strategy for supplier selection. Despite the limitations imposed by industry characteristics, Nuvoton will continue to maintain close relationships with local suppliers in the future, striving to reduce costs and risks together.