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Supply Chain Management



 
Green Supply Chain
UMC has been aware of the green production trend from the international community and its customers since 2003. Since then, UMC has promoted green supply chain management and established an SOP for green procurement through supplier, processes and materials evaluations. UMC also regularly requires a third-party organization to examine the customer products manufactured at UMC to ensure they meet environmental laws and regulations. To enhances the competitiveness of the entire green supply chain. Major measures are listed as follows.
1. Formed a material composition control list. The list is updated according to international environmental protection regulations and customers' requirement, and is deemed as a self-managed standard that conforms to international trends.
2. Formed a supplier material composition warranty that requires material suppliers' products to be free of hazardous substances, thereby ensuring that UMC's products conform to international requirements.
3. Created evaluation forms to measure each supplier's environmental protection performance.
4. Strengthened employees' ideology for managing hazardous substances through education and training.
UMC's Compressive Diagram for Green Supply Chain
 
Hazardous Substance Process Management (HSPM)
In June 2006, UMC completed Hazardous Substance Process Management (HSPM) and has received IECQ-QC080000 qualification, which made UMC the first semiconductor manufacturer in the world to achieve QC 080000 HSPM for all fabs. The success of this system demonstrates UMC's capability in managing hazardous substances and ensures UMC provides hazardous substance free and environmental friendly products that conform to customers' requirements and international regulations.
 
Find out more about HSPM (please click)
 
Supplier Classification
Supplier choosing: With regard to choosing its suppliers and contractors, their CSR practices will be a primary consideration for UMC, such as their value of green production, environmentally friendly design for products and hazardous substance free.
Classification: Suppliers are classified based on their features and risk level. All suppliers have to fill in UMC's hazardous substance control list and conduct self-evaluation. UMC will conduct either document reviews or on-site investigations to confirm the information they provide. Suppliers who fail to meet the standard have to make improvements in a limited period of time. Suppliers who fail at the new material assessment stage cannot be accepted as UMC qualified suppliers.
The main purpose: To encourage suppliers to establish their hazardous substances internal management system. UMC expects to achieve effective control on environmental-friendly design for products and be hazardous substance free through source management.
 
Green Procurement Management
  • UMC's requirements regarding green procurement, including control rules on tier 2 and tier 3 suppliers

  • UMC's requirements regarding green procurement are sent to its suppliers accompanied with orders through an e-procurement system. In addition, suppliers must upload their examination results for materials and goods through this platform. UMC can then recognize items that violate the rules in advance and take countermeasures immediately.
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    Supplier Evaluations
  • Suppliers' efficiency in managing hazardous substances are included in UMC's supplier evaluations.

  • If suppliers obtain certain certificates for environmental protection efforts or hazardous substances management (ISO 14001 or TS16949 or QC080000), they will accumulate positive points in evaluations.

  • UMC will cease procurement or disqualify the suppliers if they perform poorly in the evaluations.
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    Supplier Training
  • UMC periodically holds supplier training meetings to promote and communicate UMC's policy and methods in implementing its green supply chain management system as well as items that suppliers shall cooperate with. UMC hopes to create a win-win situation for both UMC and suppliers based on green product consensus.
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