Responsible supply chain

Our suppliers are key partners in our efforts to create sustainable value, in and beyond our operations. Together, we can create positive impact for our stakeholders, the planet, and society overall – well beyond our individual scale. We have already taken significant steps in this ongoing journey to a sustainable, responsible supply chain, and we know there is much more to do in coming years.

Our 2023 results

99% Acknowledged our Code of Conduct

99% Supported conflict minerals due diligence

88% Disclosed to CDP supply chain

Code of conduct and due diligence

Since 2014, ASM has applied the Responsible Business Alliance’s Code of Conduct as policy (RBA CoC) throughout its supply chain. We focus particularly on strategic and critical suppliers that collectively represent the majority of our direct materials spend.

At ASM, we require all our suppliers to complete an RBA self-assessment questionnaire to assess their risk factors in our supply chain. Risks are identified based on various aspects, such as their management system availability, but also the presence of vulnerable groups including young workers and foreign migrant workers.

We then actively engage with suppliers who have a high-risk profile to understand the issues, define and drive a remediation plan, and (if necessary) conduct supplier audits. The way in which we handle code commitment, supplier self-assessment, auditing, and corrective action is in line with RBA requirements.

Supplier safety

We extend our intensive commitment to safety into our supply chain. At ASM, we hold ourselves to high standards and we strive to hold our suppliers to the same standards. What this means in practice, for example, is that supplier representatives who come to work at ASM sites are trained on ASM safety expectations and requirements. And we are always looking for additional ways to extend our ZERO HARM! safety vision to all of our supplier partners.

Responsibly sourcing minerals

As a responsible member of the global community, we are committed to addressing human-rights risks and abuses. One possible source of such risk is the trade in conflict minerals. These minerals are mined in the Democratic Republic of Congo (DRC), adjoining countries (Covered Countries) or Conflict Affected High Risk Areas (CARHAs), and profits from the sale of these minerals may directly or indirectly benefit those involved in rebel conflicts and human-rights violations.

Such minerals and the metals created from them – tin, tantalum, tungsten, and gold (3TGs) – can make their way into the supply chains of products used around the world, including the semiconductor industry. That is why we are always vigilant about the provenance of these materials and strive to play a leading role in our value chain to ensure responsible minerals sourcing at every step.

Supply-chain capability building

Our supplier development program included the use of an innovative program called the Responsible Factory Initiative. This program, which is linked to the Responsible Business Alliance (RBA), is focused on the development of a supplier’s code of conduct conformance through a multi-phased approach. This starts with an education-oriented gap assessment, deep training for key facility personnel, and coaching through the development and execution of corrective action plans. ASM had four suppliers take part in the program in 2023.

We expect this will be a valuable and sustainable approach to improving supplier conformance to the RBA code. ASM is also invested in the future success of this industry program by participating in the RFI’s Advisory Council.

We also ramped up its supplier communications and training efforts. From 2023, onwards, we implemented a quarterly supplier newsletter to educate on important issues and resources to help suppliers develop their sustainability and human‑rights programs. We also hosted several training sessions for suppliers, with 300 supplier representatives attending these sessions in 2023. They included:

Three webinar sessions on the CDP climate change questionnaire process, and how to report Scope 1 and 2 emissions;
Facilitated a webinar in partnership with the Semiconductor Climate Consortium, Business for Social Responsibility & the We Mean Business Coalition aimed at helping small and medium-sized enterprises (SMEs) to start on their carbon-emissions journey;
Series of six webinars focusing on the upcoming changes to the RBA Code, our updated Responsible Minerals policy, and a review of the mandatory human-rights due diligence regulations; and
Hosted our first-ever Supplier Sustainability Summit with suppliers in Korea in 2023, followed by a second Supplier Sustainability Summit in April 2024 in Phoenix Arizona.

Supply chain diversity

At ASM, we believe that diversity starts with our culture and core values: We care, We innovate, We deliver. Our award-winning employee value proposition – “Power of an Open Mind” – reflects our ambition to grow employee engagement, develop our existing team members, and shape a diverse and inclusive culture.

While we continue to look for ways to increase the diversity of our own supply chain, we have also actively looked for other ways to encourage the growth of opportunities in the broader supply chain. ASM has maintained its engagement in SEMI’s Manufacturing Ownership Diversity working group as we look for ways to expand our reach with diverse‑owned businesses around the world. Members of this organization approach this work from a collaborative perspective to create efficiencies, align on approaches, and create avenues for these businesses to engage with interested partners.

We are continuously looking for more ways to engage and collaborate with our suppliers, so that together we can increase our positive impact. In 2024 and beyond, we plan to take a further targeted approach to supplier engagement and our shared opportunities, based on topic applicability, risk, and considering supplier scale and capabilities.

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