Supplier Code of Conduct

TSMC is committed to ensuring that working conditions in its supply chains are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible and conducted ethically. To this end, TSMC established this Supplier Code of Conduct ( “Code”) and requires our suppliers to operate in accordance with the principles outlined in this Code and in full compliance with the laws, rules and regulations of the countries in which they operate. In addition, TSMC also expects our suppliers to hold their suppliers, contractors, and service providers to the standards defined in this Code.

TSMC will assess its suppliers’ compliance with this Code when making purchasing decisions. It is our intention to collaborate closely with our suppliers to drive continuous improvement through communication, audits, and follow-up assessments. However, failure to comply with this Code or cooperate with our auditors may result in termination of business relationship.

The provisions in this Code are derived from the Responsible Business Alliance (RBA) Code of Conduct and are in alignment with the UN Guiding Principles on Business and Human Rights, as well as key international human rights standards including the ILO Declaration on Fundamental Principles and Rights at Work and the UN Universal Declaration of Human Rights.

The Code is made up of five sections. Sections A, B, and C outline standards for Labor, Health and Safety, and the Environment, respectively. Section D adds standards relating to business ethics; Section E outlines the elements of an acceptable system to manage conformity to this Code. In relation to Section D and considering that Integrity is the most important core value of TSMC, suppliers are reminded NOT to:

  1. Resort to any illegal, unethical, anti-competitive, or improper business activities.
  2. Ask for, accept, give, or offer any monies, non-nominal gifts, excessive entertainment, benefits, bribes or kickbacks from/to any TSMC employee, employee's family, friends, or acquaintances.
  3. Invite or offer any TSMC employee, employee's family, friends, or acquaintances, to participate in any form of equity rights, grants, options, “friends of family” or “founders” shares, or other similar benefits from us.
  4. Disclose information regarding business activities, structure, financial situation and performance not in accordance with applicable regulations, agreements and prevailing industry practices.
  5. Falsify records or misrepresent conditions or practices in the supply chain.

Code of Ethics and Business Conduct can be downloaded here.

The full copy of the Code can be downloaded here.

TSMC Guidance on Supplier Business Conduct can be downloaded here.

Rules for Managing Interaction between TSMC and Sales Personnel

The “Rules for Managing Business Interaction with Vendor” was implemented by TSMC for the purpose of ensuring the proper division of labor within TSMC and avoiding unnecessary conflict and dispute of commercial interests. When sales personnel of supplier engages in business interaction with TSMC, in principal he or she should interact with TSMC's procurement personnel. If there is a need to interact with non-procurement personnel, the following rules shall be followed:

  1. Sales personnel shall not make contact with TSMC non-procurement personnel without TSMC Procurement's knowledge, arrangement, or participation. In particular, sales personnel of supplier shall not discuss or negotiate with non-procurement personnel on matters relating to commercial clauses, including but not limited to: the decision to purchase, price, payment term, delivery date, incentive, compensation, free items, testing or services.
  2. Unless absolutely necessary, sales personnel of supplier should not participate in technical specification or engineering improvement discussion held by TSMC's non-procurement personnel. In the event that such personnel must participate, he or she would do so only when TSMC Procurement participates in the discussion and accompanies the sales personnel.