J.R. Pai
2018/11/19
CASE STUDY
TSMC Collaborates with Parts Cleaning Suppliers for Sustainability
TSMC is dedicated to create positive cycles in our supply chain, as sustainability is a critical part of corporate social responsibility. In 2017, TSMC set two strategic focuses – "Strengthening Supply Chain Management" and "Improving Supply Chain Resilience" – and collaborated with upstream and downstream suppliers to build a responsible supply chain. TSMC's cross-department task force benchmarks global best practices to consistently improve supply chain resilience. Beginning in 2012, TSMC has proactively consulted and audited suppliers to enhance their technical and quality management processes. Now in 2018, in addition to requiring new suppliers to comply with TSMC's rules, TSMC has established a professional consulting and audit team with external experts and 3rd party institutions to lead parts cleaning suppliers to enhance their quality for further industry upgrade.
TSMC's Parts Cleaning Supplier Milestones
World Leading Parts Cleaning Requirement
Cleaning of semiconductor parts has a great impact on wafer yield and quality. Parts with soft surfaces or residual particles are a potential source of contamination during production. With semiconductors migrating to more advanced nodes, some smaller particles that were ignored in the past are now impacting quality. As a result, it is a top priority for TSMC to help parts cleaning companies to upgrade and meet requirements of advanced technologies.
Helping Parts Cleaning Suppliers Transition to Advanced Nodes
The Challenge Arises
Taking
on the Challenge
on the Challenge
Finding a Solution
Result
Leading Parts Cleaning Suppliers to Meet World Class Standards
In the semiconductor supply chain, parts cleaning is relatively more labor intensive with more exposure to the chemical and noise. It has always been an audit focus for the RBA (Responsible Business Alliance, previously known as the Electronics Industry Citizenship Coalition, EICC). To have a complete company policy and management methodology, TSMC conducts on-site audit and emphasizes the importance to follow Code of Conduct in RBA.
Strengthen Supplier Human Right and Labor Condition
Related Rules to be Approved by Board
Require parts cleaning suppliers to not use child labor, non-voluntary labor, forced labor, and protect young and pregnant labor in their company policy. Meanwhile, providing freedom of movement (ex. hydration, lavatory), forming associations and channel for appeal will be based on the requirement of RBA, and written in the company policy. As of 2018, all parts cleaning suppliers have fulfilled this, and declared to the government.
Reimburse Foreign Workers' Agency Fee
The parts cleaning industry has high percentage of foreign employees, and the agencies require service charges. After TSMC discussed with suppliers, they have all agreed to compensate foreign employees through cash bonuses. The incidents where suppliers held foreign employee passports were all improved. Starting from 2018, we introduced external audit to ensure adherence to human rights rules.
Upgrading Industry with Environmental Protection
To strengthen the importance of human rights, TSMC has invited ESH to audit parts cleaning suppliers since 2016, hoping to improve their environmental, safety, and hygiene performance. Starting from 2018, TSMC has started to provide classes on environmental, safety, and hygiene to parts cleaning suppliers, and encourage them to get related certifications.
TSMC Consults Suppliers on Enviromental Protection, Safety, and Hygiene
Industry Expert Consultation
- Support Employee Healthcare
- Prevent Sewage pollution such as gutter management, avoidance of contamination
- Waste management including waste storage management, to avoid secondary pollution
- Invite suppliers to classes by the Occupational Safety and Health Administration, improve industrial ventilation design, and personal protective equipment for employees
Professional Skill Enhancement and Demonstration
- Require suppliers to attend professional courses to gain knowledge and techniques
- Plan to introduce 3rd party audit to pass environment management (ISO 14001) and occupational safety (ISO 45001) certification
- Increase audit frequency with focus target