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TSMC takes corporate social responsibility seriously, and endeavors to extend our vision to our supplier chain partners for the ultimate goal of uplifting the society together.


To strengthen the collaboration with our suppliers, shorten product development lead time, and eliminate unnecessary costs in the supply chain for quality customer service, TSMC has been striving for localization over the past years and sharing the benefits with our suppliers in a win-win manner. With this significant achievement, TSMC has created a substantial number of employment opportunities in Taiwan as well as reducing carbon emission from transportation.

Green Supply Chain

TSMC Suppliers' Green Requirements
Code Compliance in Environmental Protection: Suppliers must comply with local government regulations, including air pollution control, water pollution control, waste, and toxic material management. If there are violations of law or regulations, suppliers must take corrective action in a timely manner.
Energy Saving and Carbon Reduction Management: Suppliers are required to collect carbon inventory data in their manufacturing plants, develop a product-based carbon footprint, and provide carbon reduction performance data.
Water Resources and Water Management: Suppliers should collect water inventory data in their manufacturing plants to establish a water footprint, and to provide a specific water resource management plan.
Green Products and ban of Hazardous Substances Usage: TSMC promotes "green procurement" and requires raw materials suppliers to provide a statement to ensure that their products do not contain internationally banned hazardous substances harmful to the environment to ensure that products meet customer requirements such as the EU RoHS Directive. If significant deficiencies are found in supplier environmental audits, the supplier will be asked to improve by a purchasing group manager.
Environmental Management System: Suppliers must have environmental management system certification, such as ISO 14001, RC 14001.

Green Requirements for Process Tool Suppliers
TSMC requires equipment suppliers to consider water, power, and material conservation when designing new generations of equipment. TSMC also requires a long-term blueprint for carbon reduction and future environmental strategy. Lower power consumption accessories such high efficiency pumps, motors are the new tool purchasing standard. All these high efficiency components and energy saving design rules are included in the specification. In addition, TSMC verifies that the energy performance of each tool meets or exceeds conditions set in the procurement contract after tool installation is completed.

Promoting Green Label Purchasing
TSMC encourages the use of computer servers, network equipment as well as office equipment and supplies with green labels, including computers and peripherals, recycled printer paper, recycled paper towels, and environmentally friendly cleaning supplies.

Sourcing Conflict-free Materials
TSMC is subject to the U.S. Securities & Exchange Commission (SEC) disclosure rule on conflict minerals released under Rule 13p-1 of the U.S. Securities Exchange Act of 1934. As a recognized global leader in the hi-tech supply chain, we acknowledge our corporate social responsibility to strive to procure conflict- free minerals in an effort to recognize humanitarian and ethical social principles that protect the dignity of all persons. Meanwhile, we have implemented a series of compliance safeguards in accordance with industry leading practices such as adopting the due diligence framework in the OECD's Model Supply Chain Policy for a Responsible Global Supply Chain of Minerals from Conflict-Affected and High Risk Areas issued in 2011.

TSMC is one of the strongest supporters of the Electronic Industry Citizenship Coalition (EICC) and the Global e-Sustainability Initiative (GeSI), and this will help our suppliers source conflict-free minerals through their jointly developed Conflict-Free Smelter Program (CFSP). We have asked our suppliers to disclose and timely update information on smelters and mines since 2011. We also encourage our suppliers to source minerals from facilities or smelters that have received a "conflict-free" designation by a recognized industry group (such as the EICC). We also require those who haven't received such designation to become compliant with CFSP or an equivalent third-party audit program. TSMC requires the use of tantalum, tin, tungsten and gold in our products that are conflict-free. We will continue to renew our supplier survey annually and require our suppliers to improve and expand their disclosure to fulfill regulatory and customer requirements.

To see the latest Form SD filed with the U.S. SEC, please go to http://www.tsmc.com/english/investorRelations/sec_filings.htm or www.sec.gov and search under the ‘Company Filings' section.

Note: For purposes of this section, "conflict-free" minerals refer to: (i) minerals that are derived from smelters (or other relevant sources) that have been validated by the EICC and GeSI CFSP (or an equivalent entity); or (ii) minerals that have been deemed as "DRC conflict free" (as defined under relevant law) under a country of origin reasonable inquiry determination and due diligence framework.
Your feedback on TSMC's progress is appreciated.

For more information or to provide feedback on our CSR strategy, please contact us at csr@tsmc.com.
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