Sustainable Supply Chain｜Supply-Chain Composition Framework
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
Composition and Overview of Supply Chain
Since its establishment, 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. Nuvoton requires that suppliers involved in products containing minerals of concern to the Responsible Minerals Initiative (RMI) must 100% sign the "Non-Use of Conflict Minerals Declaration," and all suppliers are required to sign the "Compliance Commitment Code of Conduct" and the "Confidentiality Agreement." All suppliers must go through the review process of Nuvoton's Approved Vendor List (AVL). Suppliers also regularly declare and ensure that the raw materials of Nuvoton products are sourced from qualified smelters, and the source of raw materials of products is 100% traceable. Nuvoton has set goals to gradually increase the proportion of major suppliers1 passing RBA VAP and publishing sustainability reports, and encourages them to obtain international certifications such as ISO 14064 and ISO 14001 for environmental management systems.
Nuvoton's Supplier Types
Localizing the Production
In recent years, Nuvoton has been committed to purchasing raw materials produced locally to reduce transportation costs, carbon emissions and risk diversification. Additionally, it aims to promote local production, better control product quality, shorten delivery time and increase local employment opportunities. Local suppliers for Nuvoton Taiwan are primarily from the Taiwan region, with important operational sites 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 2024, the proportion of locally sourced raw materials reached 44.6% for Nuvoton Taiwan and 60% for Nuvoton Japan based on a growth of 3% and 8% compared with the previous year, 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.
Percentage of Local Procurement Amounts from Raw Material Suppliers as a Proportion of Total Procurement Amounts
Green Procurement
Committed to environmental protection, Nuvoton continuously promotes energy-saving and carbon reduction measures in its offices and various locations. Additionally, it supports the Taiwan government's green procurement policy by prioritizing and procuring environmentally friendly products that comply with "low pollution, resource conservation, and recyclability" criteria. Moreover, Nuvoton incorporates green procurement concepts into its procurement management system to achieve energy saving, carbon reduction, and operational expense reduction goals.