TSMC Director Handy Ko (right) awards LCY Corp with “Excellence in Environment, Safety and Hygiene”.
TSMC Director Handy Ko (right) awards Ares Green Technology Corporation with “Continuous Improvement in Environment, Safety and Hygiene".
TSMC Director Han-Wen Fung (right) communicates face-to-face with suppliers.
CASE STUDY

TSMC’s First Annual Supply Chain Environment, Safety and Health Award

Leveraging Influence to Develop World Class Green Supply Chain
Larry Sun
2019/03/20

As the world's leading semiconductor IC foundry, TSMC leverages its influence and industry leadership to establish the “Supply Chain Environment, Safety and Health (ESH) Award”, with the goal of encouraging a concerted effort by upstream and downstream supply chain manufacturers to make continuous efforts in building a responsible green supply chain together.

To recognize the outstanding performance of excellent suppliers and encourage more partners to to improve their ESH performance, TSMC invited more than 160 suppliers in December 2018 to attend the "Responsible Supply Chain Forum", where the first "Supply Chain ESH Award" was unveiled. Sustainability partners were awarded with “Excellence in Environment, Safety and Health” and “Continuous Improvement in Environment, Safety and Health” for their outstanding sustainability management and ESH performance.

Five-year ESH Evaluation Ensures Continuous Improvement

In addition to offering improvement suggestions based on continuous on-site evaluations, TSMC provides further assistance, including the Responsible Supply Chain Forum, conducting training courses, and initiating projects on energy saving, carbon reduction and occupational hygiene .
TSMC is dedicated to helping suppliers achieve comprehensive improvement.

With TSMC’s support, suppliers’ ESH performance has continued to improve in recent years. The results of TSMC's on-site evaluations show the average score has increased by 9% in the past five years, while that of some suppliers improved by more than 20%. The establishment of a safe and healthy workplace and reduction of environmental impact were the most significant among those improvements. Director of Material Supply Chain Management, Handy Ko, and Director of Corporate ESH Division, Han-Wen Fung, presided over the first Supply Chain ESH Award and recognized the outstanding efforts of the award-winning suppliers.

Top Management of Sustainability Partners Directly Drive ESH Improvement

LCY Chemical Corp, which provides electronics grade chemicals to TSMC, was awarded “Excellence in Environment, Safety and Health". LCY Group Chairman Bowei Li, who actively participates in ESH management, personally reviewed ESH performance and promoted the company’s excellent ESH management. LCY achieved the highest score of TSMC’s supplier ESH assessment, and H.C. Wang, director of the Electronics Business Division, received the award on behalf of LCY Corp.

I am grateful to TSMC for providing constructive improvement suggestions and recognizing the efforts and achievements of LCY Corp over the years. The DNA of environmental safety is not only deeply ingrained in the company’s upper management, but also integrated into the daily routines of our frontline employees. In the future, we will continue to reduce environmental impact, maintain a safe and healthy workplace, and provide customers with consistently high-quality electronic grade chemicals.

- H.C. Wang, Director of Electronics Business Division, LCY Corp.

Ares Green Technology Corporation provides TSMC with excellent component cleaning services. To follow TSMC's high standards for the operating environment of cleaning processes, Ares Green Technology participated in TSMC’s supply chain occupational hygiene project in 2017. A team of experts led by Prof. Yu-wen Lin from Fu Jen Catholic University provided specific suggestions for management and hardware improvement through document review and on-site factory evaluation.

Under the leadership of General Manager Tsai Yumin, Ares Green Technology Corporation has been devoted to environmental safety management and related improvement projects which were designed to effectively reduce occupational hygiene risk, improve workplace environments and employee health management. Since 2018, Ares Green Technology has actively sought out improvement opportunities, and successfully established an automated cleaning system in its new factory which significantly reduces employees’ exposure to hazardous substances. For their effort, Ares Green Technology received the well-deserved “Continuous Improvement in Environmental, Safety and Health” award for its outstanding efforts.

Ares Green Technology Corporation Improvement Plan

TSMC will continue to work closely with suppliers to ensure appropriate workplace environments and maintain ethical partnerships. A new “Excellence in Environmental Protection Award” will be introduced this year to encourage suppliers to continue their improvements in different areas of environmental protection and create a world-class green supply chain.