Supplier RBA Specification Audit Training

TSMC Cooperates with Third Party to Perform Audits and Strengthen Supply Chain Management

Chandler See
Kidd Hsu

As a responsible purchaser, TSMC works with suppliers to achieve excellence in quality, cost, delivery, environment and safety, and implements responsible supply chain management through the four implementation guidelines of "compliance with standards", "risk assessment", "participation in audits" and "continuous improvement". To thoroughly carry out participation in audits, TSMC not only encourages suppliers to actively take part, but also plays a role of supervision and support. Since 2018, TSMC has cooperated with third-party auditing companies, exceeding the standards of the Responsible Business Alliance (RBA) for implementing supplier audits in our drive to lead suppliers to meet international standards.

Responding to Global Sustainability Trends and Setting Goals and Practices for Improving Supply Chain Management

In order to improve the sustainability performance of our supply chain, TSMC called on suppliers to respond to the responsible supply chain action plan to establish a semiconductor green supply chain. In terms of specific actions, as of the end of 2017, 86.5% of existing suppliers and 100% of major suppliers have signed the TSMC Supplier Code of Conduct. In 2018, further responding to global sustainability trends, TSMC entrusted third-party professional organizations to perform supplier audits in an effort to exceed RBA requirements. After several months of evaluation, TSMC decided to cooperate with Intertek, a world-renowned certification body in 2018, and required 30 suppliers to cooperate with third-party audit companies, accept professional audits according to RBA regulations, and require improvements major audit findings. The completion rate of improvements are required to be over 80%.

Ensuring Supplier Audit Cooperation Through Education Training and Promotion

In order to ensure that suppliers are clearly aware of and can cooperate with the relevant audit process, in 2018 TSMC invited 35 supplier partners to participate in a supplier education training course. Intertek outlined the supplier code of conduct, supply chain risk assessment, and RBA audit specifications.

Supplier Code of Conduct

TSMC requires suppliers to comply with the TSMC Supplier Code of Conduct and the laws and regulations of the country in which they operate, and tracks the supplier's compliance with this code as a basic condition for purchasing decisions. TSMC has also begun to require suppliers to encourage their downstream suppliers, contractors, and service providers to recognize and adopt this code with the same standards.

Supply Chain Risk Assessment

Define, request, and rate definitions for management responsibilities, risk assessments, critical consumables, plant areas, power supply, water supply, finished goods inventory, critical data, drills, and supplier communications.

RBA Specification Audit

In the education training course, the audit process, sources of evidence, violation levels, and the list of documents to be prepared are specified in detail to ensure that the suppliers participating in the audit can fully cooperate.

Third Party Company Audit Process

TSMC attaches great importance to the improvement of suppliers' sustainable management capabilities, and deepens the sustainability of the overall supply chain through RBA audit instructions and training courses. In 2018, the supplier education training course was attended by 35 manufacturers and 70 supplier management representatives. TSMC will continue to work closely with Intertek to conduct a comprehensive inspection of the supplier's sustainable management through professional audits to find potential problems, identify opportunities for continuous improvement, and regularly track the progress of the TSMC Sustainable Development Goals.