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Supply Chain Management

Supply Chain Sustainability Management

Supply Chain Sustainability Management

DB HiTek is building a stable, sustainable, and responsible supply chain seeking mutual development with all suppliers.

ESH Management for
Partner Companies

Supplier Sustainability Management Process
(P-D-C-A cycle)

For sustainable growth with its partner companies, DB HiTek conducts ESH evaluation in consideration of transaction size, transaction performance, ESH evaluation result, and level of sustainable management.

  • Plan: Compliance with Domestic/International Regulations, Enhance Competitive Power, Enhance Competitive Power
  • Do: Ethical Purchasing
  • Check: Written Evaluation
    • Evaluation for New Registration Temp/New Company Evaluation: Review finance/quality/ESH → Checkcertification/warranty
    • Regular Evaluation: Performance evaluation of existing partnered companies
    • Evaluation Management: Evaluation results gathered → Corrective actions and reflected in future contracts
  • Action: Reflected in Contract and Education

Management of Supply Chain Sustainability

DB HiTek has established the "DB HiTek Code of Conduct" based on the guidelines of the Responsible Business Alliance (RBA) to ensure responsible business practices. In addition, DB HiTek has also formulated and distributed the "DB HiTek Supplier Code of Conduct" for its partner companies. DB HiTek actively and continuously encourages its partner companies and their executives and employees to fulfill their corporate social responsibilities. DB HiTek requests compliance with the "DB HiTek Supplier Code of Conduct," and receives the Self-Assessment Questionnaire (SAQ) for monitoring.

SAQ submission once per year: 55 out of 57 major partners in 2024 (response rate: 96%)

Supply Chain Risk Management

DB HiTek conducts regular evaluations to build a more robust and sustainable supply chain. Once a year, the quality/environment/purchase departments analyze and evaluate the process quality/environmental system/technology/credit rating of partner companies in various fields. In 2024, supplier evaluations were carried out for 63 suppliers, assessing five key capabilities: financial soundness, cooperation, delivery, quality management, and environmental performance. We continue to promote responsible supply chain management through regular supplier monitoring and due diligence.

Evaluation of Partner Companies’ ESH

Based on the supplier evaluation form of the Partner Company Management Procedure, DB HiTek conducts an annual environmental management risk assessment, covering three categories (system management, chemical substance management, and raw material management) across 23 items for key partner companies.

Classification 2024 2023 2022
No. of Evaluated Companies 75 39 36
Average Score
(out of 100) 		99.4 99.3 94.7

Assessed companies: Top 90% of wafer, chemical, gas, target, mask purchases

Regular Evaluation Criteria for Environmental Management Risks

System Management
(8 items) 		Establishment of structured regulations, procedures, and management organization Establishment of internal audit regulations and audit plans
Chemical Management
(9 items) 		Evaluation and assurance of compliance with environmental regulatory standards Management of incidents such as industrial accidents
Raw Material Management
(6 items) 		Standards for judging nonconforming products and hazardous substances Prevention of shipment of nonconforming products containing hazardous substances

Management of ESH Risks in
Partner Companies

Risk Exposure Level

The risk exposure level refers to the extent of potential risks related to human rights, labor, safety, environment, and ethics within the operational environment of a business. It is an assessment process used to identify social and environmental risk factors associated with the characteristics of the country or region where the organization operates, its business model structure, or its specific operational processes. Relevant items in the assessment questionnaire categorized under "Risk" are used for this evaluation.

ESG Assessment Report page

ESG Improvement Recommendations

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to view the content.

Finding Description Improvement
Plan		 Planned Completion Date
Partner Company Assessment and ESG Management Support Partner companies are encouraged to conduct risk assessments and carry out improvement activities not only for safety risks, but also in areas such as environmental protection, labor and human rights, information security, and ethical management. Risk assessment items and methods should be designed based on the geographic, industrial, operational, and organizational characteristics of each partner company. Regular assessment should be conducted, and any identified risks should be managed and corrected. It is also recommended to establish a policy for reflecting assessment results in business transactions. Mid-term
28/03/2028 		To be implemented according to internal regulations
Improving the Ratio of Women and Persons with Disabilities It is recommended to regularly monitor workforce diversity and enhance policies and working environments that support women and minority groups. This includes regularly tracking the ratio of women and persons with disabilities within the total workforce and executive-level positions, as well as monitoring changes in these trends over time. Recruitment criteria should be updated to ensure diverse candidate consideration, and systems should be introduced to remove barriers for women and disabled employees. Mid-term,
28/03/2028 		To be implemented according to internal regulations

Conflict Minerals Management

DB HiTek ensures that conflict minerals related to such armed forces in conflict zones are not included in the supply chain for its products.

Major Policy

  • Policy 1

    In order to supply raw materials to DB HiTek, suppliers must submit a Declaration of Conflict-Free Minerals (3TG) to prove that their materials are not conflict minerals.

  • Policy 2

    DB HiTek regularly provides suppliers with a list of certified smelters to ensure compliance with the RMAP requirements and conducts checks to ensure their continued adherence. The results of these inspections are also shared with customers.

  • Policy 3

    We are putting our utmost effort into establishing a stable supply chain by continuously updating domestic and international conflict minerals regulations.

3TG: Tantalum (Ta), Tungsten (W), Tin (Sn), Gold (Au)

Major Detailed Activities

  1. 1
    Request pledge of nonuse from suppliers of raw material to not use minerals from conflict zones
  2. 2
    Maintenance through regular status inquiry
    • Provide a regularly updated list of certified smelteries to raw material suppliers and check current status
    • When non-certified smelters are identified, request for improvement and monitoring of current status
    • 100% RMAP certification rate as of the end of 2023

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      to view the content.

      Classification Tantalum Tungsten Tin Gold
      No. of suppliers - 3 - -
      No. of RMAP smelters - 8 - -
  3. 3
    In the process of detailed operations regarding conflict minerals, listen to various VOCs from raw material suppliers for process improvement

Download

  • Conflict Minerals Management Report
    Download

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