Supplier Sustainability Management

TSMC is dedicated to driving a positive cycle in the industry and supply chain, and actively seeks collaboration with supplier partners. The Company contributes to the sustainable development of the supply chain to ensure a safe work environment, labor relations with respect and dignity, operation in line with code of ethics, and to facilitate environmental protection.

Strategies, Targets & Achievements

  • Sustainability Risk Management
    All suppliers are required to comply with the Code of Ethics and Business Conduct, and to follow regulations on human rights and conflict-free minerals. TSMC continues to conduct sustainability risk assessments, and encourages major critical suppliers to join the Responsible Business Alliance (RBA)
  • Local Supply Chain Optimization
    Enhance the core capability of local suppliers, protect the rights of entry-level local labor, and increase local sourcing. Cooperate with suppliers to conserve electricity and water, and reduce waste

Continuously Improving Supply Chain Sustainability

TSMC cares about the sustainability of the environment, the society, and the economy, aiming to improve supply chain management and influence the industry towards sustainability by building a responsible supply chain. Therefore, TSMC set two strategies ‒ Sustainability Risk Management and Local Supply Optimization ‒ based on the five core categories stated in the TSMC Supplier Code of Conduct: Labor, Health and Safety, Environmental Requirements, Ethics, and Management, to ensure continuous improvement. Five Action Plans have been created based on these core values, propelling TSMC's path towards sustainability into a positive cycle.

Responsible Supply Chain Action Plan

TSMC collaborates with its suppliers to implement the “Sustainable Supply Chain Action Plans." Through the two strategies of Sustainability Risk Management and Local Supply Optimization, the Company leads the suppliers to continuously improve their economic, environmental and social sustainability to bring about positive change.

Implement Responsible Supply Chain Management

TSMC strives to drive the industry and its supply chain into a positive cycle. To fulfil the Company's commitment to a responsible supply chain, TSMC takes concrete actions and implements the 4 guiding principles of Code Compliance, Risk Assessment, Audit Participation, and Continuous Improvement. By doing so, TSMC ensures that its supply chain provides a safe workplace, treats workers with respect and dignity, operates in line with code of ethics, and works to promote environmental protection.
Rules of Implementation
Management Measures

Exert Supply Chain Influence Power

TSMC implements its Responsible Supply Chain Action Plan and proposes five corresponding actions. Through continuous improvement and enhancing supply chain management, we and our suppliers create a sustainable future together.
Local Supply Chain Optimization
Process Advancement and Quality Improvement
Ensure Occupational Safety and Health
Reduce Environmental Impact
Sustainability Risk Management
Strengthen Supply Chain Resilience
Safeguard Labor Rights
Problems / Challenges Tactics / Actions Number of Suppliers Performance
Challenges in improving measurement technology, enhancing quality, and expanding output capacity for advanced processes
Hold two 2019 Advanced Process Materials Forums 33
Provide consultation for suppliers on capacity deployment, improving advanced measurement technology, and enhancing manufacturing quality 28
  • Invited 33 material suppliers for advanced processes to the event; a total of 150 people participated in discussions on the future road map for the quality of advanced processes, driving synchronized growth for suppliers and TSMC
  • Completed 77 quality improvements for materials of advanced processes; 28 suppliers completed 100% of capacity deployment according to the mass production needs for 7 nm and 5 nm processes

For more information, please read TSMC 2019 Corporate Responsibility Report:

Responsible Supply Chain - Supplier Sustainability Management

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