Supplier Management

Chipbond is a downstream packaging and testing service provider in the semi-conductor industry. The major processes include manufacture, packaging and testing of various bumps.The major procurement items include raw materials, materials, equipment, and contracted services. To assure the quality of our products, we implement different quality activities aiming at primary raw material and material suppliers to strengthen their quality control. We work with them closely to form a partnership of collaboration and growth and create a win-win situation for both parties.

 

With the goal of sustainable management, the company leads suppliers to jointly practice corporate social responsibility and create sustainable value through the implementation of the existing supplier management system.
Supplier Management Policy

 

 

  • Comply with local regulations by positive actions and also take customers' needs into consideration simultaneously.

  • Carry out corporate social responsibility and adopt zero-tolerance policy in terms of conflict minerals.

  • List corporate social responsibility practices into supplier management mechanism gradually to motivate sustainable development of suppliers.
  • Strengthen suppliers'  capacity by ample communication, practice exchange and cooperation.
  

 

Proccess of Supplier Management

The Company establishes the "Provision for Supplier Management" to create long-term and stable partnership with suppliers in the hope that, through definite management and operation mechanisms, suppliers can satisfy the exceptions of the Company and the requirements of the customer in the aspects of delivery time, quality, technology, and hazardous substance. Currently, the Company performs management and guidance of material suppliers at the following three phases.

 

Supplier management_en.PNG (89 KB)

Evaluation of Suppliers

To ensure the information on the quality, delivery time and other items of the material provided, the Company performs monthly audit of the internally approved major material suppliers to avoid impact on the business operation or production due to external uncertainty and risk. Audit items include five indicators. In addition to deduction of points for nonconforming matters, a bonus point mechanism is established to encourage suppliers to conduct self-improvement.
 
Evaluation of Suppliers_en.PNG (100 KB)

 

Supplier Audit
In 2025, Chipbond conducted audits of 47 suppliers as planned. ESG audit areas covered labor and human rights, health and safety, environment, ethics, and management systems. The audit results showed that all audited suppliers met the Company's requirements. The main categories of deficiencies related to corporate social responsibility were "Quality," "Health and Safety," and "Management System," as illustrated in the figure below. A total of 97% of deficiencies have been corrected, and the remaining items are being tracked for improvement.
2025供應商缺失分類_en.PNG (29 KB)

To reduce the potential impact to the business operation due to supply chain risk, the Company established the "Supplier Code of Conduct Declaration" and "Supplier Integrity Commitment Letter" in 2014 and 2020. Through these document, we convey to our suppliers the requirements of our company regarding the Code of Conduct for Business Partners and the continuous improvement of supplier ESG risk assessment and management mechanisms. In 2025, the Company added 155 new suppliers, and all new suppliers have completed the signing of the "Chipbond Technology Supplier/Outsourcer Code of Conduct Statement" and "Supplier Integrity Commitment", with a signing rate of 100%. We will continue enhancing the supplier risk control and fulfill the CSR together with our business partners.