Corporate Sustainable Development

Integrate UMC group resources to achieve the most competitive supply chain value through strategic cooperation.

drive suppliers to improve economic, social and environmental performance, and their sustainable development efforts.

Continuously advise vendors on diversifying their supply and localized sourcing

Encouraging suppliers on energy conservation and carbon reduction to form a circular economy.

Actively implement green procurement, pursue economic benefits and consider eco-friendly balance.

Ensure that products and supply chain do not contain conflict minerals.

Focus on suppliers' energy resource use and water resources management to respond to the impact of extreme climate change on the supply chain.

Strengthen waste recycling and reuse, and strive to reduce environmental pollution impact.

• 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.

The latest SD forms may be downloaded as below.

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, cobalt, and mica), 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 Responsible Minerals Initiative (RMI) of RBA. Information on suppliers that meet conflict mineral requirements was acquired from the Responsible Minerals Assurance Process(RMAP) as a basis for supply chain and source management. Suppliers were also required to refer to the latest Conflict Minerals Reporting Template(CMRT) of RBA to provide information related to conflict minerals. Dedicated UMC personnel were assigned to verify a supplier’s compliance to RBA standards for ensuring the total exclusion of conflict minerals usage. If the supplier does not use minerals from qualified smelters in the RMAP list, UMC will refuse to use the product and ask the supplier to propose an improvement plan within a time limit.

The goal of UMC is audit all conflict minerals suppliers every three years.2016-2022 Complete audits of all conflict minerals suppliers ,comply with RBA certification ,and complete conflict-free supply chain management.

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 as below.

UMC have a high regard for the sustainable management of suppliers. In terms of sustainability, we focus on the environmental,

social and corporate governance requirements of suppliers. In response to the supplier's sustainable management, UMC established the "Supply Chain Management Committee" and formulated the "Supplier Evaluation Mechanism" (or the Dow Jones Sustainability Index Selection Mechanism) to regularly manage, evaluate, coach, and track the improvement efforts that vendors are making. The management object of the Supplier Assessment Mechanism evaluation is crucial suppliers who support production, including equipment suppliers, raw material suppliers, facility engineering suppliers, consumables and component suppliers. Each year, these crucial suppliers’ Q (Quality,22.5%), C

(Cost/Financial,22.5%), D (Delivery,22.5%), S (Service,22.5%), S (Sustainability,10%) are evaluated.

Supplier with good sustainable performance, UMC will hold public commendations from time to time UMC supplier evaluation mechanism defines sustainable supplier rating and corresponding measures, and incorporates sustainable management requirements items into the evaluation items according to the level of importance, and send out The questionnaires to suppliers for reply anually. 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 RBA Code of Conduct may receive extra points. This incentive was provided to help guide and encourage suppliers to comply with these standards. 65% of process-releated significant vendors acquire ISO 14001 or other international EHS Management certifications.

Sector-specific risk suppliers screening:

Enter the screening with the terms of the Responsible Business Alliance (Responsible Business Alliance, RBA). For details, please refer to 1-3-2 Sustainable Supply Chain Management in the Corporate Sustainability Report.

Country specific risk and commodity-specific risk suppliers screening:

The Company completed its supply chain risk database and the management system of earthquake spare parts (quartz, fragile

parts) for over 2,000 key raw materials supplied by approximately 100 vendors. 225 significant suppliers of raw materials completed risk

assessment surveys, all of which met UMC's requirements.

The following five standards were adopted to regulate and guide suppliers, hoping to establish a supply chain management system with sustainable development.

The following five standards were adopted to regulate and guide suppliers, hoping to establish a supply chain management system with sustainable development.

The core value of UMC's sustainable supply chain is "Sustainability and Mutual-Development." In addition to the existing environmental training for the suppliers, UMC extended its supply chain management to implement initiatives for sustainability, strengthening the guidance for local suppliers to establish sustainable supply chain capability To enhance the awareness of procurement personnel on sustainability initiatives and effectively implement the sustainable supply chain management, UMC held a number of educational training courses to accelerate the development of sustainable supply chain management.

Contact us: For further information, please see Supplier Contact in General Inquiries.

The latest SD forms may be downloaded as below.

*Tier-1 suppliers : All types of suppliers who provide　production materials, equipment ,parts ,and facility with annual transaction over NT$2 million (excluding one-time vendors)

*Significant suppliers in Tier-1:Refers to the top suppliers ranked by purchase amount that make up 80% of the company's total procurement in dollar terms.

*Significant suppliers in non Tier-1:Significant tier 1 suppliers of our significant tier 1 supplier as Significant non-tier 1 suppliers.

The definition of Significant non-tier 1 suppliers is High-volume, critical component and non-substitutable suppliers.

Through the supplier evaluation mechanism, UMC uses a sustainable self-assessment questionnaire every year to investigate the water use situation in the supply chain and combine it with the low-carbon supply chain plan to counseling suppliers to save water.The cumulative water saving in the supply chain in 2022 (base year: 2020) reached 6.5 million metric tons, and the cumulative water saving in 2030 is expected to reach 20 million metric tons.