As a leader in the global logic IC industry, we work hand in hand with our suppliers not only pushing the forefront of technology development, but also pursuing sustainability development. So far, we have already demonstrated the leadership in supply chain sustainability by initiating a suite of activities such as carbon management to mitigating climate change, hazardous substance restriction for green products, risk management including business continuity plans for reducing losses from natural disasters.

Based on TSMC’s procurement policy, sustainability is a key factor as important as quality, cost and delivery. It will be seriously considered in purchasing cases. Your understanding and collaboration will be highly appreciated.

General Sustainability Requirements for Suppliers

1. Green Supply Chain Requirements:

  1. Energy Saving and Carbon Reduction: Suppliers are requested to collect carbon inventory data in their manufacturing facilities, develop product-based carbon footprint and provide carbon reduction performance results.
  2. Water Resource Management: Suppliers are requested to collect water inventory data in their manufacturing facilities, brief water saving results as well as risk adaptation plans for water scarcity should the suppliers be located within water risk sensitive regions.
  3. Waste Management: Suppliers are requested to continuously improve waste reduction performances in their manufacturing facilities such as raising recycling and reuse ratios.
  4. Green Products and Hazardous Substances Control Specification: Suppliers are requested to comply with environmental codes those may apply including PFOS / PFOA / Conflict Minerals/ RoHS/ REACH and others in response to global trends.
  5. Cascade 2nd Layer Green Supply Chain: Suppliers are requested to work with their upstream suppliers for the similar efforts of what TSMC requests.
  6. Environmental Management System and Goal Setting: Suppliers are requested to be ISO14001, RC14001 or other equivalent environmental management system certified with goals set.
  7. Others: Suppliers are encouraged to implement green procurement, adopt green building designs, promote environmental education, etc.

2. Safety, Health, and Risk Management Requirements:

  1. Business Continuity Plan: Suppliers are requested to establish business continuity plans with risk identification, risk controls and recovery procedures drills. Drills are also required to ensure continuity of material supply to TSMC.
  2. Natural Disaster (example earthquake) Management: Learning from Japan’s 0311 Earthquake, it becomes TSMC’s policy that suppliers located in earthquake hazard area have to have alternate manufacturing facilities distantly separated and estimated lead time for production transfer.
  3. Climate Change Risk Management: TSMC deems water shortage of suppliers’ facilities due to climate change a top risk that may impact TSMC’s businesses.
  4. Fire prevention: Suppliers should identify fire hazards when using dangerous chemicals and facilities. Plans need to be in place to prevent catastrophic fire.
  5. Management System: Suppliers are requested to be OHSAS18001 or equivalent systems certified.
  6. Cascade 2nd Layer Supply Chain Management: Suppliers are requested to work with their upstream suppliers for the similar efforts of what TSMC requests.
  7. Logistic Risk Management: Suppliers are requested to mitigate their logistic service risks, In particular, appropriate people training and contingency plans need to be enhanced in the dangerous or hazardous chemicals transportation.

3. Supply Chain Labor Right Requirements and Electronic Industry Citizenship Coalition (EICC):

  1. Playing a key role in global ICT supply chain, TSMC has adopted the most updated EICC Standards to better protecting labor rights including working conditions of suppliers, and request suppliers to cascade these efforts to their 2nd layer suppliers.