Supply chain system

Supply chain management policy description

Policy Implement the RBA Code of Conduct of the Responsible Business Alliance as a basic principle for conducting business activities
Commitment Provide products and services that meet customer satisfaction for sustainable prosperity
Responsible unit CSR Committee / Procurement / Quality and Unimicron’s internal demand units
Resources invested Organize supplier conferences, CSR supplier on-site audits, and deficiency counseling
Complaint mechanism Auditing Office Complaint Hotline 0930-351-557
Goals Suppliers comply with quality, cost, delivery date, service, technology, and CSR management system requirements
Action plans Supplier advocacy, supplier evaluation, supplier audits, and supplier assessment
Other measures We have conducted internal and external risk evaluations of suppliers’ material interruption risks. We propose mitigation plans for high-risk suppliers, commit to their implementation, and confirm their effects. Suppliers are all currently down to low-risk levels. Considering that the supply chain risk is not limited to material interruption, at the end of 2017, we also listed the RBA Code of Conduct, regulations, and other potential risks in the supply chain. This new risk evaluation program will begin in 2018.

International regulation implementation

Unimicron complies with the RBA Code of Conduct and requires suppliers to comply with RBA-related practices such as labor, health, safety, environment, ethics, and management systems. Other than providing the newest version of RBA Code of Conduct to suppliers on a regular basis, the Company also requires suppliers to comply with the audit of RBA Code of Conduct, and the Company guides them to meet the requirements of RBA and other supply chain management. In response to supply chain risks, the Company also monitors the financial status of major suppliers and provides guidance on business continuity planning and management, and conflict minerals management in the hopes of reducing supply chain risk.

Supply chain overview

Unimicron’s suppliers mainly include raw materials suppliers, equipment engineering suppliers, waste treatment firms, resident firms (such as security), human resource agencies, and land, sea and air freight contractors. Among these, raw materials and equipment engineering suppliers make up the most important category.

For the major raw material suppliers and equipment suppliers (including Strategykey suppliers) involved in the manufacturing of our products, we have developed a sound quality management and CSR management model for corporate social responsibility, financial risks, conflict minerals, and BCP continuous operation management to meet the principles of corporate sustainable development. At the same time, we have established positive partnerships with suppliers to oversee their CSR related risks, strengthen audit management, and coach and assist in improvement, all in order to lead the overall supply chain towards a sustainable future.

2018 Supply chain management description

Supplier profile analysis Raw materials suppliers Equipment suppliers
Number of suppliers per procurement category (suppliers) 456 98
Proportion of suppliers per procurement category (%) 82% 18%
Percentage of transaction amount per procurement category (%) 62% 38%
Key suppliers per procurement category (suppliers)Note 23 10
Proportion of key suppliers in the procurement category (%) 5% 10%
Percentage of transaction amount by key suppliers in the procurement category (%) 47% 46%
Importance Provide Unimicron with timely and appropriate amounts of raw materials to manufacture products that meet customer requirements Provide advanced equipment and technology to assist Unimicron in producing high-quality products with positive yield rate that meet customer requirements
Management policy For raw material supply partners, we adopt comprehensive QCDST and important supplier CSR supply chain management strategies to ensure supply quality that meets customer expectations. Initial technical exchange, joint development, provision of equipment maintenance, and major supplier RBA Code of Conduct management strategy.

Note: Strategy Key supplier: A major supplier (including customer specified) or a major process supplier for Unimicron’s operations.

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