RESPONSIBLE
PROCUREMENT

Responsible Procurement A Promoter of Shared Value

Suppliers have always been Nanya's most important business partners. We aim to enhance cooperation to create greater value and share the value and benefits of cooperation and create a sustainable future.

From 2019 to 2024, the refund for blue-collar migrant workers regarding items such as brokerage fees, transportation fees, service fees, medical examination fees NT$ 110.78 million
Among suppliers of 3TG metals (tin, tantalum, tungsten, gold), cobalt, and mica, the number of smelters recognized by the RMI in supplier reports 255 smelters
Among suppliers of strategic metals subject to international import/export restrictions (aluminum, copper, nickel, and zinc), the number of smelters recognized by the RMI in supplier reports 29 smelters

Strategy and Performance of Material Topics

2024 Performance

Sustainable Supply Chain Management

Use 100% conflict-free minerals and responsibly procured minerals
Completion of SAQ by significant suppliers: 100%
100% completion rate of deficiency improvements by suppliers with high sustainability risk in audits
100% of suppliers signing Supplier Code of Conduct
100% completion of audits and guidance for significant suppliers
Implement at least 2 supplier sustainability guidance projects

2025 Goal

Sustainable Supply Chain Management

Use 100% conflict-free minerals and responsibly procured minerals
Completion of SAQ by significant suppliers: 100%
100% completion rate of deficiency improvements by suppliers with high sustainability risk in audits
100% of suppliers signing Supplier Code of Conduct
100% completion of audits and guidance for significant suppliers
Implement at least 2 supplier sustainability guidance projects

Strategy

Sustainable Supply Chain Management

Conflict-free Metals and Responsible Minerals Sourcing Management: Nanya Technology ensures that all products are free from conflict minerals
Supply Chain Risk Management: Suppliers undergo regular evaluations covering quality, delivery, service, cost, technology, and sustainable management

Sustainable Supply Chain Management

Sustainable Supply Chain Management Strategy

Nanya Technology's screening criteria for direct production material suppliers mandate not only ISO 9001 and ISO 14001 third-party verification but also rigorous internal evaluations. Utilizing an electronic supplier evaluation management system, we assess suppliers across six key aspects: quality, delivery, service, cost, technology, and sustainability. The sustainable management indicator (sustainability) accounts for 19% of the overall score, ensuring suppliers meet our requirements for sustainable supplier management. Furthermore, once a supplier is selected, we conduct audits to confirm the effective implementation of their sustainable management practices.

Sustainable Supplier Risk Management
Implement risk assessment through self-evaluation questionnaires for suppliers, and strengthen supplier risk management through audits and improvement tracking.
Supplier Cooperation and Exchange
Periodically organize supplier conferences and supplier evaluations on the basis of cooperation and mutual aid, and provide guidence for suppliers to increase social, economic, and environmental benefits, in order to achieve sustainable development of suppliers.
Improve the Sustainability of Suppliers
Nanya pays attention to environmental and social sustainability issues while pursuing economic benefits, and continues to work with suppliers in projects related to sustainability.
Responsible Mineral Procurement
Nanya is committed to a responsible procurement management strategy for the ban on conflict minerals to satisfy current and future market, legal, and regulatory expectations.

Sustainable Supply Chain Management Process

Nanya Technology has established a comprehensive supply chain management procedure. We ensure our suppliers meet our standards and requirements through a cycle involving five key processes: sustainability regulation, active risk assessment, sustainability risk assessment questionnaire, sustainability audit/improvement guidance, and supplier capability building. Through risk assessment and audits, we monitor the risk level of our supply chain and guide suppliers to improve and build capacity, gradually strengthening the sustainability performance of the supply chain.

Supply Chain Sustainability Projects

In response to changes and updates to sustainability trends, Nanya Technology Corporation will continue to improve supplier sustainability through seminars and project guidance, which raise suppliers' awareness and ability to achieve sustainability.

Improve the Sustainability of Supply Chains

2024 Nature and Climate Synergy Supply Chain Workshop

Sustainable Development Mutual Benefit Initiative

Recognizing TNFD as an emerging risk and financial disclosure framework, Nanya Technology hosted a "Nature and Climate Co-prosperity Supply Chain Workshop" on November 26, 2024. Approximately 30 suppliers, from industry sectors ranging from chemical manufacturing to electronics and plastic products, sent their climate and nature specialists to participate. This initiative aimed to deepen suppliers' understanding of environmental sustainability issues and strengthen nature and climate strategy management in the upstream supply chain.
During the workshop, experts from National Taiwan University of Science and Technology and National Taipei University of Technology were invited to present on theories and practices of climate and nature sustainability management. The sustainability team of our supplier, Formosa Advanced Technologies, also gave a talk about their projects on decarbonization and biodiversity under the theme "The Best Energy Is Energy Saving," showcasing case studies of energy-saving projects that reduced energy use and carbon emissions in production. This talk not only vividly introduced practical energy-saving experience but also strengthened collaboration across the value chain.

Responsible Mineral Sourcing Management

Nanya Technology is committed to managing conflict-free minerals and implementing a responsible procurement strategy. We actively manage the responsible procurement of tantalum, gold, tin, tungsten, and cobalt to meet current and future market expectations as well as legal and regulatory requirements. We have also published a Responsible Mineral Sourcing Policy to align with the requirements for responsible metal procurement, uphold our responsibilities as part of the Responsible Business Alliance (RBA), and achieve the goals of the Responsible Minerals Assurance Process (RMAP). Since 2022, Nanya Technology has added the statement "Comply with RMI Policy and Conflict Mineral-Free" to its product labels, declaring that the company's products meet the mandate of the Responsible Minerals Initiative (RMI) and are free from conflict minerals.

Result of Responsible Mineral Procurement Due Diligence

As a DRAM supplier, Nanya Technology conducted due diligence on its supply chain. After comparing its findings with the Responsible Minerals Initiative (RMI) qualified smelter list, 284 smelters or suppliers were identified in the 2024 supply chain investigation.Among them, 255 smelters or suppliers reported information concerning the gold, tantalum, tin, tungsten, cobalt, and mica currently used in our company's product supply chain. Approximately 27.5% (78) of these smelters reported that their mineral sources might originate from the Democratic Republic of Congo or adjoining countries, or from recycled/scrap metals. According to supply chain reports, these 78 smelters have all confirmed that their mineral sources comply with the Responsible Minerals Assurance Process (RMAP) policy requirements and have been approved as legitimate smelters by the Responsible Minerals Initiative (RMI).