Supplier Sustainability Management

As the largest foundry services provider, TSMC utilizes its influence. We are concerned about the economic, environmental, and social aspects of the development of its supply chain. TSMC is committed to continuing to upgrade its entire supply chain management performance above international, and become a sustainable force to uplift society.

Strategies, Targets & Achievements

  • With green manufacturing as our objective, TSMC utilizes its influence to lead suppliers to save energy, cut carbon emissions, reduce waste and set up waste management system to upgrade the entire supply chain's management performance to international standards

TSMC Assists Its Suppliers to Achieve 100% Conflict-free Sourcing

TSMC Assists Its Suppliers to Achieve 100% Conflict-free Sourcing

TSMC supports the "responsible sourcing" practice advocated by the Electronic Industry Citizenship Coalition (EICC) and the Global e-Sustainability Initiative (GeSI), and adopts their jointly developed Conflict-Free Smelter Program (CFSP) to require and help our suppliers to source conflict-free minerals. Meanwhile, we have implemented a series of compliance safeguards in accordance with industry leading practices...

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TSMC Collaborates with TSIA to Enhance Occupational Safety and Health of Semiconductor Industry Supply Chain

TSMC Collaborates with TSIA to Enhance Occupational Safety and Health of Semiconductor Industry Supply Chain

The thriving development of Taiwan's semiconductor industry is attributed not only to the joint efforts of Taiwan Semiconductor Industry Association (TSIA) members, but also to the strong logistical support of supply chain vendors. Enhancing the occupational safety and health of supply chain employees is a material issue that TSMC is deeply concerned about. As a result, TSMC actively formulates management...

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Supply Chain Management Measures

There are over 1,500 suppliers doing business with TSMC. To accelerate their alignment with international standards, we have established our own Supplier Code of Conduct based upon the EICC Code. TSMC set up a project to bring sustainability into daily supply chain management by means of supplier selection, audit, performance measurement, training and the annual supply chain management forum.
Supplier Assessment

All suppliers must be qualified and follow the supplier's code of conduct

  • Process related raw material supplier: obtaining ISO9001 certification (Quality Management Systems Standards) is mandatory
  • Facility suppliers and subcontractors: obtaining OHSAS18001 certification (Occupational Health and Safety Assessment Series) is mandatory
  • Local manufacturer: obtaining a valid factory registration certificate issued by the local government and ISO14001 certification (Environmental Management Standards)
Supplier Audits
  • TSMC has set up an audit team and a tutoring team to trace the progress of deficiency improvements. These teams work with suppliers to improve quality and technology, enhance the process and production yield, elevate ESH performance as well as implement automation for capacity expansion. TSMC also requires suppliers' commitment for waste reduction.
Supplier Training
  • TSMC hosts training and workshop time to time. Through different forms of guidance and communication, the performance of environmental and safety and health is expected to be enhanced and aligned with international norms effectively. The course includes workplace hygiene, employee health, fire prevention and maintenance, carbon emission investigation, climate change, regulatory risk, business ethics and conflict minerals.
Supplier Forum and Awards
  • In addition to conveying the sustainable concept and objectives of TSMC, TSMC also awards the outstanding performance and significant contribution in four areas which are excellent quality, cost effective, ensuring supply and sustainability in the supply chain forum.

Supplier Waste Reduction Programs and Results

TSMC believes that the best waste reduction approach is to reduce its generation at the source and make use of circular economies to manage it as a resource. As such, TSMC encourages local material suppliers to initiate waste reduction programs. For 2016, these suppliers collectively reduced their unit waste output by 18.8% (against the 2014 baseline), translating to 17,000 metric tons in cumulative weight since the program started.
Product Category Supplier Main Waste Improvement Means Reduction (%) Cumulative Reduction (Metric Tons)

Supplier 1 Over 70% was developer waste mixed with organic solvent waste 1. Control of water content in sludge
2. Diversion of low-concentration rinsing solution to waste water treatment plant
3. NMP recycle
31% 4,960
Supplier 2 Over 90% was solvent waste, trash, and inorganic sludge 1. Piping segregation
2. Efficiency improvement of organic waste water treatment
20% 674
Supplier 3 Ammonium chloride, waste solutions (IPA, OK-73) 1. Lowering of acid flushing frequency
2. Self-treatment of liquid waste
3. Piping segregation to reduce the volume of highly-diluted solution being treated as chemical waste
9% 428

Supplier 4 Over 80% was inorganic sludge, sludge mixture, and non-hazardous sludge Reutilization of cutting oil to improve the recycling rate of oil and grain 14% 3,549
Supplier 5 Over 70% was non-hazardous sludge Installation of load cell on new slurry tool, and usage optimization of oil and powder 16% 1,820
Supplier 6 Over 90% was non-hazardous and inorganic sludge Recycling of cutting oil 19% 582

Supplier 7 Over 60% was fluoride liquid waste (discounting acetic acid) Reduction of average HF usage for tankers 33% 2,360
Supplier 8 Over 90% was inorganic sludge, activated charcoal 1. Use of ozone machine to lower chemical mixture and sludge production
2. Improvement of bio function to reduce mixing load to reduce sludge production
3. Process improvement of high-waste-output products
4% 420
Supplier 9 Nearly 90% was liquid waste (with flash point < 60°C) and chemical drums 1. Process enhancement to reduce usage of materials
2. Reduction of liquid waste usage in laboratory
26% 219

Supplier 10 Nearly 90% was organic and CaF2 sludge Dehydration 21% 2,196

For more information, please read TSMC 2016 Corporate Responsibility Report:

Responsible Supply Chain - Supplier Sustainability Management

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