Supply Chain

Supply Chain Policy

Strategy

Strengthening Cost Leadership

Integrate the resources of the UMC Group and work with suppliers to realize the most competitive supply chain value.

Establishing Sustainable Supply Chain Capabilities

Collaborate with suppliers to enhance their economic, social, and environmental efficacy and jointly advance initiatives towards sustainable development.

Strengthening Supply Capacity within the Supply Chain

Cooperate with suppliers to diversify supply sources, local procurement, etc.

Building a Green Supply Chain

Promote energy conservation and carbon reduction among suppliers to foster a circular economy.

Environmental Considerations

Actively implement green procurement, pursuing economic benefits and balancing environmental considerations.

Procurement Activities that Ensure the Absence of Conflict Minerals

Ensure both products and supply chain are free from any conflict minerals.

Implementation of Sustainable Risk Management

Focus on the energy resource utilization and water resource management of suppliers is essential to address the impact of extreme climate change on the supply chain.

Environmental Initiatives

Strengthen recycling and reuse of waste resource, and strive to reduce the impact of environmental pollution.

Commitment

• We believe that the cornerstone of corporate management is to fulfill our economic, environmental, and social responsibilities. We voluntarily reinforce the Company's commitment to these responsibilities and promote benefits to customers, employees, suppliers, communities, and all stakeholders.
• We monitor supply chain for fire, earthquake damage, health, safety, security, environment, labor, and human rights. The Company places emphasis on the risks associated with suppliers responsible for the supply chain, recognizing that effective supply chain risk management can also serve as a competitive advantage. As such, the Company provides support to our suppliers as needed. We request suppliers to research and manage their current business operations, diversification of raw material procurement, and dispersion of supplier production regions to mitigate the risk of material shortages due to extreme weather or severe natural disasters.
• We build a risk assessment program for the supply chain and establish a methodology for evaluating supplier sustainability. This method is considered a risk assessment element and is one of the most important references in USJC's procurement strategy, which includes delivery, quality, financial, and business operations elements.
• UMC Group actively requests its suppliers to sign a declaration prohibiting the use of metals (gold, tantalum, tin, and tungsten) with high risks of conflict and associated with forced labor and human rights violations, from conflict mining countries, or to provide a declaration to prevent the procurement of conflict metals from the Democratic Republic of Congo (DRC) or Central Africa. UMC Group also encourages our suppliers to promote similar management policies. We respect and protect intellectual property rights and conduct fair trade, advertising and competition.
• We strive to operate our business with integrity and do not engage in any fraudulent or unfair profit-taking.

In order to support this supply chain policy, UMC Group requires our suppliers to comply with the following Code of Conduct.