Supplier and Contractor Management



To protect the environment and emphasize society's obligation, labor rights, security, health and the goal of a continually developing supply chain.


Our suppliers should have a sustainable procurement policy to manage vendor's quality, cost leadership, delivery, service/response, and sustainability. For fulfilling demand in accordance with UMC and promote the spirit of competition.


To regard vendor as a partner, and guide vendor for the long-term cooperation. To corporately build up the eternal supply chain of the steadily developmental semiconductor.


To cooperate with upstream & downstream vendors and collaboratively create business opportunities.


Ensure that the products and supply chain are free from conflict minerals supplied from the Democratic Republic of Congo (DRC) or adjoining countries.



To firmly believe the key point of an enterprises management is to fulfill economic, environmental, and society obligations. To voluntarily reinforce the enterprise's commitment to these obligations, and promote the benefits to customers, employees, suppliers & the community.


To monitor fire and earthquake damage, security risks & hygiene, environment, and labor rights. Supply chain risk management is also a competitive capability; as such, the company shall focus on supply chain vendors risks and voluntarily provide any assistance, if necessary.


To ask suppliers to conduct the survey and management of the current business operating status, material sourcing diversification and the geographic dispersion of suppliers' production. To reduce the material shortage risks from extreme climate or serious natural disasters.


To build up our risk evaluation program for supply chain vendors and establish an eternal evaluation method for them. To regard the method as the risk evaluation element and become one of the most important UMC procurement strategic references with elements of delivery date, quality, finance and business operation.


UMC requires suppliers to guarantee conducting suppler assessment and obtaining supplier signatures non-conflict minerals and ensure that products from suppliers the use of tin, tantalum and tungsten. UMC shall exercise due diligence in supply chain audits to exclude the use of conflict minerals from the Democratic Republic of Congo (DRC) or Central Africa. UMC encourages suppliers to promote similar management policy. UMC has announced related procurement policy to CSR column in the official website to ensure metal procurement procedure meets social and environmental responsibility.


To respect and protect the rights of intellectual patent property and conduct fair trade, advertisement and competition.


To commit to business integrity and forbid any inappropriate profit acceptance, corruption, extortion, or defalcation. To establish an identification and penal security mechanism.

UMC is a party to the global consensus for supporting supply chain and source management and uses certified sources of minerals from non-conflict areas. UMC also requires suppliers to ensure that their products and supply chain are free from conflict minerals. When selecting new suppliers or assessing existing suppliers, UMC shall exercise due diligence in supply chain audits to exclude the use of conflict minerals from the Democratic Republic of Congo (DRC) or adjoining countries.

Conflict Minerals Management

At UMC, we enforce conflict minerals management according to the Disclosures Relating to Conflict Minerals prescribed in Rule 13p-1 of the U.S. Securities and Exchange Act of 1934 of the US Securities and Exchange Commission (SEC). During new supplier selection, UMC requires new suppliers to introduce assessment systems and to present sourcing of minerals from conflict regions. Existing suppliers are also required to actively investigate and verify specified materials (gold, tantalum, tin, and tungsten), sign agreements prohibiting the use of conflict minerals, or provide a declaration thereof. UMC also exercises due diligence when implementing our investigations, and annual supplier audits were carried out to check whether upstream smelters / refiners of the suppliers utilize conflict minerals. Lot traceability for the supply chain is in place to ensure that no conflict minerals have been used. UMC is also an active participant of global advocacy groups such as the Conflict-free Sourcing Initiative (CFSI) of EICC-GeSI. Information on suppliers that meet conflict mineral requirements was acquired from the Conflict-free Smelter Program (CFSP) as a basis for supply chain and source management. Suppliers were also required to refer to the latest Conflict Minerals Reporting Template of EICC to provide information related to conflict minerals. Dedicated UMC personnel were assigned to verify a supplier’s compliance to EICC standards for ensuring the total exclusion of conflict minerals usage.

In addition to implementing conflict minerals management according to corporate policy and commitment, UMC also submits Specialized Disclosure (SD) forms to the U.S. SEC while publishing the completed forms on its official website to declare the outcomes of conflict minerals management efforts and demonstrate our commitment to corporate social responsibilities.

The latest SD forms may be downloaded through the link at the right of this web page.

Supply Chain Management Approach

a. Total supply chain management

UMC has planned a comprehensive supplier management approach, and expects to establish a sustainable supply chain management mechanism for providing control and counsel in the following 4 major dimensions:

New supplier

Review suppliers' dimensions of quality/finance/price/delivery/service/sustainability.

Request new suppliers to sign UMC Supplier and Employee Professional Ethics and Code of Conduct

New suppliers will be recognized once suppliers’ condition meets UMC's requirements


Score based on supplier assessment

Evaluation scores below UMC require dealer, UMC will stop purchasing or Cancellation of qualified supplier qualification


Suppliers of class distinction made base on the basis of characteristics and risk

According to their hierarchy when competition in the annual audits

Evaluation results based on guidance to meet the company requirements

and training

Non Regular dealer training course

Advocate and communicate with UMC extended supply chain management practices

b. New Suppliers Selection

Sustainable Supplier Assessment

· Supplier cooperation in terms of material delivery/stock management
· Emergency response plan for material provision
· Banned conflict minerals disclosure
· Suppliers annual financial report

· Greenhouse gas emission information and carbon risk management
· Water resource usage information and water risk management
· Energy usage information and risk management
· Waste production information and management
· Overall environmental assessmentl

· Performance in human rights and labor index

· Labor and professional ethics
· Human resource assets and development
· Labor criteria assessment

· Community assessment
· Sustainability and corporate social responsibility
· Others: Business sustainability plan, social impact
· Employee safety

Currently, criteria for selecting new suppliers include

To evaluate the supplier qualification from the aspects of quality, finance, price, environment, and labor rights. Suppliers shall be qualified in accordance with the terms of UMC's conditions.

c. Supplier Training Course

The supplier is a very important part of the Green Supply Chain Management System. Hence, it's necessary to hold training courses for suppliers periodically and communicate about the policies and methods of UMC's Green Supply Chain Management System. This practice helps align UMC with suppliers for the green production, cooperating to achieve a win-win policy.

d. Sustainability Suppliers Assessment

UMC takes suppliers sustainability management seriously. UMC focuses on dimensions of suppliers’ environmental, social and management. For major suppliers (procurement amount is over 80%), including equipment suppliers, facility suppliers, spare parts suppliers etc. Annually assessment includes dimensions such as Q (Quality), C (Cost/ Financial), D (Delivery), S (Service) and S (Sustainability).

Supplier management performance was included as an indicator item in supplier assessments conducted by UMC. UMC requires all its suppliers to sign the “Supplier and Employee Professional Ethics Agreement”, asking its suppliers to strictly follow the Codes of Conduct and social responsibility related regulations. Also, suppliers should require their suppliers, contractors and service providers adopt and obligate the above regulations. The extent of suppliers’ obligation will be condition when procurement strategy is estimated. Suppliers having certifications related to environmental protection or hazardous substance management (ISO 14001, TS 16949, or QC080000) or can demonstrate capabilities in fulfilling the requirements of the EICC Code of Conduct may be provided with additional points. This incentive was provided to help guide and encourage suppliers to comply with these standards. For suppliers whose assessment scores are too low, UMC may suspend procurement or remove them from the list of qualified suppliers.

With key point to business sustainable operation, UMC takes suppliers as partners and draws suppliers in a long-term corporation to build up a stable developed sustainable supply chain and reduce delivery risk. Targeting at “sustainability” items to assess, UMC audits suppliers at three dimensions of economy, environment and society. UMC enforces suppliers to emphasis on E.S.G. internal control and reach to requirement of sustainable supply.

Supplier Risk Management

In order to fully understand the operation conditions of suppliers, such as their material source distributions as well as their material production line locations, and also minimize the risk of material shortage due to extreme climate or devastating natural disaster, UMC has established a risk assessment system for collaborated suppliers. UMC primarily conducts an annual sustainability risk survey, audits and scores major suppliers annually. This fully demonstrates the close cooperation between the company and its partner suppliers to facilitate the commitment to increase overall value of the supply chain.
Supplier's Risk Assessment

UMC Supplier Risk Management

Business Sustainability Plan

Request suppliers to formulate contingency plans and procedures for potential natural or man-made threats that may result in their production loss to ensure operational continuation and impact reduction for UMC.

Earthquake Risk

UMC offers vendors instructions on strengthening earthquake resistance and establishing emergency notification systems so that in the event of a disaster, the suppliers can immediately report the situation and update recovery progress to UMC. UMC shares experience with suppliers for fire prevention.

Climate Change and Water Risk

UMC requires suppliers to prepare a response plan, such as production backup plan and increased inventory to reduce the impact of an incident.

Suppliers’ Origin Investigation

Target at key material suppliers for origin investigation, emergency notice system should be ready to response.

Circular Economy

To respond fulfilling corporation social responsibility, as a citizen on the earth, UMC is devoted to environmental protection, energy saving and carbon reduction. In order to expand corporation social responsibility, UMC proposed (UMC 3R League) RRR Major League in 2017 through reuse, recycle and reduce. UMC invited suppliers to join the green supply chain and upgrade the green supply chain. 26 suppliers joined in 2017 to start the 3-year RRR Major League Project, including suppliers for bulk chemical material (9 suppliers), suppliers for waste treatment (10 suppliers), and suppliers for parts clean and maintenance (7 suppliers). In addition to quantification index for reviewing output of energy saving, waste reduction and circular economy, UMC held 3 seminars for sharing experience, inviting suppliers to share their experience, in order to promote UMC’s green supply chain policy. UMC expects to have consensus for green products with suppliers and works on it to be win-win.

UMC’s Mutual Announcement for Supply Chain Triple R League
• We commit to “No pollution as target, meet or beyond environmental rules”.
• We commit to “Environment management fulfillment, and merge into organization management”.
• We commit to ”Develop environmental friendly technology, enforce to reduce waste from origin and prevent pollution”.
• We commit to ”Follow international environmental trend, use recycling energy and resource proproperly”.

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