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Supplier and Contractor Management
Strategy and Commitment
Conflict Minerals Management
Supply Chain Management Approach

Strategy

Increase cost leadership

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

 

 

Establish sustainable supply chain capabilities

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

 

 

Enhance the supply capacity within the supply-chain

Continuously advise vendors on diversifying their supply and localized sourcing

 

 

Building a green supply chain

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

 

 

Pay attention to environmental friendliness

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

 

 

No compromise on conflict minerals

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

 

 

Implement sustainable risk management

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

 

 

Focus on environmental issues

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

 

 

Commitment

  • 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.

 

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 as below.

 

Supply Chain Management Approach

Supplier Sustainability Management Capability Evaluation

UMC upholds the supplier policy of “treating suppliers as partners and guiding suppliers for long-term cooperation” to plan a comprehensive management system for suppliers.

 

 

Supplier Sustainability Management Capability Evaluation

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

 

UMC_Supplier_FlowChart_1_En.gif (90 KB)
 

 

 

Required Items For Supplier Sustainability Evaluation

UMC_Supplier_FlowChart_2_En.gif (35 KB)
 

 

 

Establishing Sustainable Supply Chain

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.

 

Project : Sustainable Supply Chain Sharing Session

Strategy

  • Themed with "Sustainability & Co-prosperity", advocate the concept of sustainable development to suppliers

Activity

  • Advocate UMC's human-oriented sustainable conduct and co-prosperity in society
  • Continue promoting supply chain to respond to ESG requirements
  • Continue promoting supply chain to respond to RBA requirements
  • Continue promoting supply chain to respond to of risk management requirements
  • New challenge to sustainable supply chain

 

Project : Sustainable Supply Chain Management Training for Buyers

Strategy

  • Promote sustainable advocacy to be carried out for routine procurement operation. To understand the trend of global business sustainable development

Activity

  • Internal employee training curriculums
  • Buyer's knowledge-RBA execution
  • Supply chain management of green procurement
  • Business Continuity Planning (BCP) of supply chain management
  • How ESG responds to DJSI requirement
  • Conflict mineral management
  • Supplier audit experience sharing

 

Project : Counseling Local Suppliers to Improve

Strategy

  • Enhance suppliers' abilities and productivity; lower workplace safety accidents

Activity

  • Modify bypass installation (Focus on: poor tool uptime)
  • Improve inside components (Focus on: Corrosion issue)
  • Expand production line (Focus on: capacity shortage)

 

Project : Suppliers Localization

Strategy

  • Create local employment opportunities to promote local prosperity

Activity

  • Expand production line in Taiwan

 

Project : Second Source Implementation

Strategy

  • Lower risk of raw material shortage

Activity

  • Evaluate and select qualified suppliers

 

 

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

 

The latest SD forms may be downloaded as below.

 

Contact Us