CASE STUDY

TSMC Holds "Responsible Supply Chain Seminar" for the First Time, and Works with Suppliers for Sustainable Future

Li-Wei Yeh

2018/12/24

Teresa Peng

2018/12/24

As the world's largest dedicated semiconductor foundry, TSMC has exerted its influence as an industry leader and committed to continuously improve the overall level of the supply chain to serve as a force to uplift society.

In 2017, the company introduced a "Responsible Supply Chain Action Plan", leveraging "Strengthening Supply Chain Management" and "Improving Supply Chain Resilience" to lead more first and second-tier key suppliers to join the effort.

In 2018, in order to help suppliers better understand TSMC’s progress in sustainability and to ensure that both parties can focus on the same goal and take positive actions, the first "Responsible Supply Chain Seminar" officially made its debut, inviting experts from various fields and 150 supplier representatives to communicate on the topic of the sustainable future.

The First "Responsible Supply Chain Seminar"


Participants	150 suppliers which handling original materials, spare parts, factory and waste treatment
TSMC Experts	Legal：Morris Cheng, Deputy Director EHS：FM Hsu, Director Supply Chain Management：Clement Fu, Deputy Director, and Chandler See, Manager Resource regeneration and water saving：Tony Lien, Manager, and Meg Ho, Project Manager
Target	Review the supply chain, continue to communicate and ensure that no human rights violations occur Give necessary counseling and training to all levels of suppliers Ask suppliers to follow TSMC’s code of conduct for suppliers
Four Main Themes	Decent Work Conflict Minerals EHS Labor Rights

Setting Long-term Goals with Suppliers and Identifying Opportunities for Continuous Improvement

One of the highlights of the Responsible Supply Chain Forum is that TSMC clarified its priorities for the year and set long-term goals.

In 2018, TSMC started to work with third-party audit company "Intertek" to conduct in-depth audits of suppliers, and comprehensively examined the problems that may be faced by sustainable management, as well as identified opportunities for continuous improvement.

For "supplier inventory", two selected major themes - "Strategies and practices for promoting energy conservation and water conservation" and "Recycling and value enhancement of waste resources", were shared by TSMC experts based on practical experience, calling on suppliers to respond to the "Responsible Supply Chain Action Plan". In order to further establish a green semiconductor supply chain, TSMC invited all representatives to discuss opportunities for cross-border recycling of materials and energy resources, aiming to achieve a positive development of the supply chain with a target of 80% of waste converted to plant resources by 2022.

The first "Responsible Supply Chain Seminar" was jointly witnessed by TSMC and supplier representatives to examine long-term goals, closely review the semiconductor supply chain in terms of economic, environmental and social aspects, and dare to make commitments and emphasize that we respect human rights that are in line with international standards. We look forward to working with upstream and downstream suppliers to continuously improve and jointly build a world-class responsible supply chain.