Philosophy and Goals

Sustainable consumption and production are key elements in achieving sustainable development goals and are the foundation for sustainable business operations. PSMC is to build a sustainable supply chain in accordance with the core spirit of the Responsible Business Alliance (RBA), to evaluate suppliers to ensure that their business partners are in line with the company's sustainability philosophy, and to strengthen the resilience of the supply chain through a risk identification mechanism and contingency measures for material shortages. At the same time, we have implemented green procurement and continue to implement sustainable consumption and production models in our daily operations. In addition, we have further implemented due diligence on conflict minerals to ensure that our products are not affected by any illegal or unethical procurement practices. PSMC strives to implement the spirit of responsible consumption and production, demonstrating its professionalism and commitment to sustainable supply chain management.

  • 100 %

    Evaluation

    Passing rate of vendor evaluation.

  • 100 %

    Selection Form

    Achieving rate of creating and auditing selection forms of new suppliers.

  • 100 %

    No Conflict Minerals

    Rate of agreement on not using conflict minerals ratio.

Supplier audits

PSMC’s Supplier Management Regulations is based on the “Code of Conduct of the RBA” (formerly known as EICC), specifying a statement on supplier code of conduct, requiring suppliers to duly comply with the code in terms of labor, health and safety, environment, business ethics, management systems, and other business conduct and to fully comply with the laws and regulations of the country/ region where they operate. We also audit our suppliers in the annual audit.

 

 

 

 

 

Green Procurement

In order to conform to the global trend of green products, PSMC has given priority to evaluate the use of green label products and services recognized by governments and international organizations, and has included them in the selection mechanism of procurement methods and supplier evaluation. In 2022, the total amount of green procurement by PSMC was approximately NT$160 million, including domestic products and services with Type I environmental protection labels, energy saving labels, carbon labels, green building materials labels, solar power and certificate purchases, LED lamps, as well as green products from overseas, Energy Star products, EPEAT Registry tools, and TCO-Certified products by the Swedish Federation of Professional Employees; PSMC will continue to expand its investment in green procurement in the future.

 

 

 

Conflict Minerals

PSMC is committed to respecting and protecting human rights, practicing high standards of social ethics and fulfilling corporate responsibilities. To this end, PSMC asks all target and gas suppliers with whom we have dealings to commit to not using upstream suppliers and countries of origin in conflict minerals areas in order to achieve the goal of 100% conflict-free minerals. We also call on all of our supplier partners who have business dealings with PSMC to join the Responsible Business Alliance's "No Minerals Accepted from Conflict Mines" pledge and ask our raw material suppliers to comply with the following requirements:

 

  • Suppliers must fulfill their social and environmental responsibilities.
  • Suppliers must ensure that no products are made from the minerals extracted in the areas of Congo, or its neighboring countries that are in armed conflicts, or extracted in poor working conditions.
  • Suppliers must disclose the source of the minerals, such as Ta, Sn, Au, and W; and complete investigation forms.
  • Suppliers must convey PSMC’s policy of "no conflict minerals" to their upstream suppliers and supply chains.

 

No Conflict Minerals Statement

Conflict minerals are from the Conflict-Affected and High Risk Areas, or neighboring armed countries that illegally mine such minerals: tantalum (Ta), tin (Sn), tungsten (W), gold (Au) and Cobalt(Co).

 

  • Tantalum (Ta), tin (Sn), tungsten (W) , gold (Au):PSMC and its suppliers have committed themselves to avoid using conflict minerals, have proceeded to conduct an annual detail research in its supply chain and updated its research data, and checked and collected the latest information on the RMI official website every year. If there are any updates, the supplier will be requested to provide the update and feedback.
  • Cobalt(Co):If there are any updates in the conflict mineral template, the supplier will be requested to provide the update and feedback. This encourages suppliers to participate in Responsible Minerals Assurance Process (RMAP). If cobalt is in the scope of CMRT management, PSMC will require suppliers to strictly obey the rule of CMRT.

 

Supplier Code of Conduct

PSMC established the Supplier Code of Conduct based on the「Responsible Business Alliance (RBA, formerly known as EICC) Code of Conduct」. It requires suppliers to make sure that their labor, health and safety, environment, business ethics and the management system are subject to the code, and that suppliers are to strictly obey the laws/ rules of the country/ area where their business run. The aforementioned will be checked in the pre-selection and annual supplier audit, suppliers’ status of compliance with this Code will be one of the considerations for PSMC’s evaluation of and decision making on the purchasing.

 

RBA Commitment  

 

Policy of Raw materials

Powerchip Semiconductor Manufacturing Corporation (PSMC) is a professional wafer manufacturing company. Sustainable development is the core vision of the corporation. PSMC has established a comprehensive policy of the raw material and the commitment are implemented after approval of the president to ensure it's procurement behavior and to meet standards regarding to account environmental, social and governance (ESG) factors.

PSMC is committed to abiding by the following concepts and principles and we will establish a sustainable, stable and responsible supply chain to bring positive impacts to the enterprise, society and the environment through the promotion and implementation of these raw material policies.

 

  1. Sustainability first: Commitment to give priority to the purchase of sustainable raw materials verified by third parties, encouraging suppliers to increase the production of recycled raw materials and plan to increase the proportion of sustainable raw materials and recycled raw materials. We are seeking to establish long-term cooperative relationships with suppliers and work together to reduce consumption of energy and resource in the production process and the impact on local communities and groups, and to minimize the negative impact of the use of raw materials on sustainable development.
  2. Supply chain transparency: The advocacy requires suppliers to provide detailed information on the source and manufacturing process of their products to ensure compliance and traceability of the raw materials.
  3. Risk Management: Committed to identifying and managing risks related to raw material procurement, including supply interruptions, price fluctuations and regulation changes, etc., to lower down the uncertainty through pre-planning and risk assessment.
  4. Continuous improvement: To improve the policy and process of raw material procurement continuously and establish a model of sustainable raw material procurement through cooperation with suppliers, PSMC welcomes suggestions and feedback from internal and external stakeholders to create a more resilient and sustainable supply chain.
  5. Comprehensive compliance: Avoid using raw materials containing materials from globally important biodiversity sites and adhere to all relevant laws, regulations and standards.