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TSMC incorporates suppliers' carbon reduction performance into its selection criteria, striving to achieve its net-zero emissions commitment.
TSMC incorporates suppliers' carbon reduction performance into its selection criteria, striving to achieve its net-zero emissions commitment.

TSMC has committed to achieving net-zero emissions by 2050. In addition to its own climate change management actions, TSMC is actively developing green and low-carbon supply chains to enhance climate resilience. To accelerate the supply chain’s emission reduction progress, starting in 2025, TSMC will officially incorporate carbon reduction performance into its supplier selection criteria. Major emission contributors are required to sign the TSMC Greenhouse Gas Reduction, Emissions Elimination & Neutrality (GREEN) Agreement for Suppliers. By 2030, they will be required to reach emission reduction targets agreed upon by both parties, and gain third-party verification of product carbon footprints by the end of 2026. TSMC aims to collectively strive towards zero-carbon sustainable development and to facilitate the decarbonization of its supply chain, and plans to reduce its business with suppliers who do not comply with these objectives.

Suppliers' achievements and proactive planning in carbon reduction are key factors for TSMC in partner selection and procurement decisions. The goal is to collaborate towards net-zero emissions, foster an environmentally friendly society, establish a sustainable supply chain, and ensure shared success for TSMC and all involved parties.

Vanessa Lee,Vice President of Materials Management at TSMC

Adopting Diverse Strategies to Enhance Green Transformation

Managing supply chain carbon emissions is a crucial aspect of TSMC's net-zero goal. To encourage more suppliers to prioritize and implement carbon management, TSMC incorporates carbon reduction target setting and achievements into supplier selection evaluations. Major emission contributors are required to regularly review their carbon reduction progress and submit new annual and medium-to-long-term plans by designated deadlines each year, ensuring emission reduction results meet expectations and continue to improve. TSMC aims to collaborate with like-minded suppliers to build a green semiconductor supply chain. 

The Company recognizes that different suppliers may be in different stages of development for their carbon management. Leveraging its extensive experience in supply chain carbon management and its own initiatives in carbon reduction, TSMC has crafted the "Supply Chain Carbon Reduction Action Guide." This guide covers four main areas: T: tracking performance and transparency enhancement, S: support for suppliers and specialized service, M: motivation enhancement and magnifying impacts, C: creative collaboration and cost-effective mindset. This assists TSMC and its suppliers in adopting suitable carbon reduction strategies and action plans to enhance green manufacturing. Additionally, in 2024, TSMC launched a carbon reduction subsidy project, offering a total of NT$84 million in grants to increase suppliers' willingness to invest in energy-saving and carbon-reducing equipment, thereby achieving carbon reduction goals.

Supply Chain Carbon Reduction Action Guide
TSMC's New Business Collaboration Standards: Carbon Reduction Performance as a Key Supplier Selection Criterion

SUMCO Corporation is committed to reducing carbon emissions in the manufacturing process, pledging to provide low-carbon silicon wafers, and continue to implement further activities to reduce carbon emissions.

SUMCO Corporation

We have integrated carbon emission management into our core operational strategies and started carbon reduction engagement with upstream raw material suppliers, laying a solid foundation for achieving the net-zero goal.

Siltronic AG

By collaborating with TSMC to develop electronic-grade chemical recycling technology, we promote resource recycling and reduce carbon footprints, contributing to sustainable development together.

LCY Chemical Corp.

TSMC is actively implementing an environmentally and socially responsible operational model. By requiring major emission contributors to sign TSMC GREEN agreements and to continuously enhance their carbon reduction efforts through diverse approaches, TSMC further drives the green transformation of the entire value chain, advancing sustainable practices and creating a net-zero future.

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