Sustainable Supply Chain Management
The supply chain is an important extension of the YTEC value chain. We actively invest in the sustainable development of the supply chain to ensure that suppliers and contractors provide high-quality products and services in a sustainable manner and abiding by business ethics.
Supplier and Contractor Management
YTEC is committed to provide the best service to the global electronic semiconductor foundry industry supply chain as our responsibility. As a leader in the domestic semiconductor testing services and a AOI/ATE our own machine product manufacturer, we regard suppliers as long-term cooperative partners, and advocate the joint establishment of a sustainable supply chain with suppliers. Therefore, YTEC is committed to responsible procurement and the technical capabilities development of the supply chain to continue providing the most excellent quality and green services to our customers.。
Supplier Management-Local Procurement
Due to professional factors, part of the semiconductor test equipment and main IC parts, tapes, etc., must rely on foreign original suppliers. For the selection of suppliers, unless otherwise specified by the customer, we try to use local suppliers as much as possible, so that all kinds of resource services play the best efficiency while supporting local employment opportunities and economic stability.
Contractor Management
The personnel employed by the contractor receive the contractor safety and health lecture and study training organized by the Environmental Safety Department before the construction of the factory, and the non-planned or temporary construction personnel entering the Company shall sign the "Affidavit for Contractor’s Environmental Safety and Health Management Notification", "Affidavit for Construction Personnel" and "Operation Permit Application" before the construction and after received the Contractor's Safety and Health Management explained by the Workplace Overseers.
New Supplier
AfterYTEC’s trading model is understood and agreed with YTEC’s philosophy of honesty, integrity and green procurement, there were about 70 new suppliers signed back the "Letter of Commitment for Integrity, Honest and Confidentiality" and the "Letter of Guarantee for Non-use of Hazardous Substances", and started a new page of joint cooperation with YTEC.
Supplier Audit
In order to enhance the overall competitiveness of the supply chain. We have established an inter-departmental supply chain management team. to conduct supplier audits on a regular basis. In addition to include the supplier’s quality, price cost, service level, environmental protection, work safety and health, technology and other factors into the evaluation items to ensure its quality standards, and provide necessary counseling in a timely manner, so that YTEC's supply chain can maintain the best competitiveness.
In order to ensure the sustainable management performance of suppliers, the geographic locations and production processes where suppliers operate are inspected to assess potential environmental or social risks faced by suppliers to reduce supply chain risks. In 2016, we completed annual sustainability audit for a total of 10 suppliers. Aiming at the deficiencies found in the audit, the supplier shall be requested for improvement measures immediately, and conduct a written confirmation in the following year. Through the implementation of this review mechanism cycle, not only can we reduce the risk of our suppliers, but also maintain the effective management mechanism.
Sustainable Supply Chain Management：
Green Procurement
YTEC takes the provision of green products as one of our quality policy, and takes the concepts of green products and green enterprises deeply rooted in the YTEC Green Product Management System, to meet customer requirements for green products and comply with international laws and regulations, and contribute our efforts for green environmental protection and social responsibility.
The supplier must guarantee: all raw materials, solvents, consumables and packaging materials used in the production or service process of all products provided toYTEC are in compliance with the relevant international environmental protection laws and regulations and the control content spacified in the "Management Specification for Prohibited and Restricted Substances of Green Products" established by YTEC; or all comply with the control content specified in the RoHS environmental laws and regulations. And to ensure that the test results and case materials provided are correct and trueful.
When the supplier's own raw materials and process materials change, the supplier shall proactively provide YTEC with a notification of the change, and provide a test report or a change report to prove that it will not affect the compliance of environmentally hazardous substances.
Furthermore, it is continuously updated and effective in response to SONY SS-00259. YTEC will also continue to carry out - Use of Prohibited and Restricted Substances Questionnaire to relevant suppliers, to survey the use of each substance by the supplier.
YTEC has fully introduced a Hazardous Substance Process Management System, established a green procurement process, established a name list of qualified green suppliers through hazardous substance information and supplier review operations, to ensure that all purchased materials have been approved by YTEC and purchased materials for use are all green materials to avoid contaminating customer products.
After being registered as the Green Qualified Supplier of YTEC, we require the supplier to update its test report every year, and arrange supplier audits on a planned basis to ensure the supplier's supply capability of green manufacturing process.
Green Procurement Process:
Supplier Ethical Management
YTEC has always taken honesty and integrity as the code of conduct for YTEC personnel, therefore, in related business activities with suppliers, including procurement transaction negotiation, supply, service, contracting, technical cooperation exchanges, logistics, payment and other businesses in fulfilling transaction contracts. Suppliers are able to make following commitments in honesty, integrity and confidentiality obligations when making contact with relevant personnel of YTEC:
Comply with the Principle of Honesty and Trustworthiness
Commitment to guarantee that the products, specifications, quality, service standards, bills, warrants, rights and other information provided are true during the process of transaction conclusion and transaction fulfillment, and there is no conduct of false, deceiving, forgery, or alteration.
Principle of Confidentiality Obligations
The promised party agrees to YTEC that all related information related to YTEC will not be used or disclosed or deliver to any third party without the consent of YTEC.
Principle of Honest and Integrity
The promised party abides by the relevant integrity system of YTEC. And promises to agree to resist and disclose to YTEC the acts of soliciting and accepting bribes.
Fulfil the liability for breach of contract
The promised party promises to make its employees and their agents abide by the obligations of this Letter of Commitment.
Conflict Minerals Commitment
As a good corporate citizen, the company should fulfill its social responsibilities, respect human rights, and continue to pay attention to the issue of conflict minerals. Committed to a detailed investigation of the supply chain to ensure that metals such as Tin (Sn), Tantalum (Ta), Tungsten (W), and Gold (Au) are not mined through anarchy or illegal groups, high-risk conflict areas.
YTEC declares and promises not to accept the use of metals from high-risk areas; at the same time, requires YTEC's suppliers to take corporate social responsibility to ensure that products do not use such high-risk materials.
Since 2012, YTEC has required suppliers to ensure that the parts, components, materials and finished products provided to YTEC must meet the standards required by the document "Non-Conflict Minerals policy". and promise the following terms:
- Declare that all products provided and production processes are conflict-free minerals.
- Follow the Due Diligence Guidance For Responsible Business Conduct of the Organisation for Economic Cooperation and Development (OECD), and regularly check the source of materials to ensure that they are not used: Metals such as Gold (Au), Tantalum (Ta), Tungsten (W), Tin (Sn) are not passed through anarchy or illegally It is obtained by mining in groups and high-risk conflict areas.
- Do our best to control and investigate, do not directly or indirectly use mineral materials from conflict areas, and cooperate with the response to the policy statement on the non-use of conflict minerals.
- Requirement suppliers shall communicate this requirement to their upstream and downstream suppliers.
Supplier Relationships and Rights and Interests of Stakeholders
In view of the Company’s increasing emphasis and requirements for corporate social responsibility, in order to implement and strengthen the normalization and transparency of the company - procurement environment, abide by honesty and integrity, and enhance the corporate competitiveness, therefore, the Company proposes the request for all suppliers / subcontractors to sign the "Letter of Commitment for Integrity, Honest and Confidentiality". This action is for the Company to declare to the suppliers/ subcontractors that both parties must uphold the philosophy of business integrity, no improper benefit acquisition or transfer, and try their best to protect intellectual property rights and promote the determination of integrity in any procurement transaction, and then establish the Company's corporate integrity to implement corporate social responsibility. Reporting hotline is set up for colleagues to strengthen their independence. Maintain a smooth communication channel with correspondent banks, employees, customers, suppliers, etc.