Management Strategy
As a leading technology provider for the global semiconductor industry, MediaTek is located at the front-end of the value chain in IC design. All back-end processes involving raw material procurement, OEM manufacturing, packaging, and testing are carried out by suppliers (hereinafter referred to as “suppliers”), which results in the formation of partnerships characterized by professional division of labor and mutual cooperation. Therefore, supply chain management is MediaTek’s top priority in addressing operational and climate-related risks. We are committed to promoting sustainable development with our supply chain partners.
Supplier Code of Conduct
In 2015, MediaTek officially incorporated principles and initiatives such as the Responsible Business Alliance (RBA) Code of Conduct, the International Labour Organization (ILO) Tripartite Declaration of Principles, and the UN Universal Declaration of Human Rights into its Supplier Code of Conduct, requiring all suppliers to respond to and comply with these standards. As a premier enterprise in the global electronics industry supply chain, MediaTek continues to safeguard the collective rights and well-being of its personnel. The Supplier Code of Conduct we have formulated encompasses five major dimensions: Labor and Human Rights, Health and Safety, Environmental Protection, Professional Ethics, and Management Systems, with a total of 39 corresponding indicators, continuously responding to internationally valued social responsibility standards. Since 2023, all of MediaTek’s suppliers have completed their signings.
New and Annual Supplier Sustainability Risk Assessment Criteria
As the issues of concern to global customers and even the general public have gradually expanded from price, quality, and service standards to social and environmental regulatory standards and legal responsibilities in respective nations, MediaTek has consolidated evaluation standards across three major dimensions—economic, social, and environmental—to monitor the supply chain’s strict compliance and continuous strengthening of corporate governance, energy conservation and carbon reduction, green procurement and production, employee care, and expanded social engagement in corporate sustainability. This aims to prevent risks from improper management at any link that could cause environmental pollution, product quality anomalies, production capacity and manpower shortages, and other harms to stakeholder interests. Such risks would cause shipping irregularities, rising costs, and declining revenues for MediaTek, thereby affecting the Company’s reputation, image, and competitiveness. MediaTek requires all new suppliers to meet this assessment standard, and existing suppliers are also continuously tracked and evaluated annually for suitability.
Key Supplier Management
To strengthen the effectiveness of supplier management, MediaTek established supplier corporate sustainability scoring standards. For “key suppliers” —namely suppliers that have a significant impact on MediaTek’s product quality and production schedules, or suppliers whose procurement amounts and proportions reach the materiality threshold—we conduct focused management to improve the quality and sustainability of green procurement practices and manage operational risks.
100% of supplier evaluations were completed, with 100% passing (> 60 points), and the continuous improvement proposal activities are continued and tracked in the following year’s evaluation. For suppliers ranked lower in scores, MediaTek continues to actively provide guidance for improvement, encouraging them to reference benchmark suppliers’ practices for continuous enhancement of sustainable development, strengthening the supply chain’s support for MediaTek’s sustainability initiatives, and jointly achieving sustainability excellence for MediaTek products with ongoing progress. After the annual announcement of evaluation results, recognition and presentation of the MediaTek Best Sustainability Partner Supplier Award takes place at the Annual Supplier Conference to encourage and thank suppliers for their close cooperation and proactive implementation of MediaTek’s sustainability goals in the past year, building a sustainable development value chain together with MediaTek.
Key Material Risk Management
As the front-end of the semiconductor value chain, in addition to applying innovative technologies to reduce the environmental and social impacts of our products, MediaTek conducts risk management for key materials in product manufacturing through requirements and selections for the supply chain, including conflict mineral surveys and local procurement, to achieve corporate sustainable development.
Conflict Minerals
Protection of human rights is one of MediaTek’s core concepts in the field of social responsibility. We have been conducting conflict mineral surveys since 2011. Pursuant to relevant norms and regulations of the “Conflict-Free Smelter Program (CFSP),” the “Responsible Business Alliance (RBA),” and the “Global e-Sustainability Initiative (GeSI),” we require our suppliers to provide a “Conflict-Free Metal Guarantee” to demonstrate that the metals used in their products are not sourced from conflict zones. In addition to 3TG due diligence, we have been utilizing the CRT (Cobalt Reporting Template) to conduct cobalt surveys on suppliers since 2018. All suppliers are required to disclose all smelter information in detail.
MediaTek Responsible Minerals Policy
As a world-leading semiconductor IC design company, MediaTek operates under an outsourced manufacturing model and is deeply committed to addressing human rights, labor rights, and environmental sustainability issues within our global supply chain. Upholding the international principles of "Responsible Sourcing" and "Corporate Sustainable Development," MediaTek actively responds to responsible minerals initiatives. We require that all gold (Au), tantalum (Ta), tungsten (W), and tin (Sn) contained in our products be sourced from responsible and compliant sources.
To realize this commitment, MediaTek aligns with international frameworks, including the Organization for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (CAHRAs), the Responsible Business Alliance (RBA) Code of Conduct, and the Responsible Minerals Initiative (RMI). We collaborate closely with our outsourced manufacturing suppliers to jointly implement responsible sourcing principles. MediaTek requires suppliers to ensure that the aforementioned minerals contained in their supplied products are sourced exclusively from conformant smelters and refiners validated by the RMI’s "Responsible Minerals Assurance Process" (RMAP) or equivalent independent third-party audit programs. Furthermore, MediaTek requires suppliers to deepen their supply chain due diligence and conduct regular mineral sourcing traceability assessments using the Conflict Minerals Reporting Template (CMRT) and the Extended Minerals Reporting Template (EMRT) released by the Responsible Minerals Initiative (RMI). This continuous effort aims to expand the investigation scope of critical minerals and enhance the transparency and traceability throughout the supply chain
MediaTek is dedicated to building close collaborative relationships with all suppliers and industry partners, continuously promoting the comprehensive implementation of responsible minerals practices, and fulfilling our responsibility toward corporate sustainable development
Note:
Responsible Minerals refer to specific minerals whose extraction, trade, and transportation processes do not involve or contribute to armed conflict, widespread violence, severe human rights violations, or environmental degradation.
Local Procurement
MediaTek upholds the principle of local procurement, aiming to keep economic development opportunities for local residents while also reducing carbon emissions from material transportation. Group-wide local procurement spending for the year reached NT$307 billion, with both raw materials and general procurement being the primary sources.
Actions Harnessing MediaTek Influence
Our supply chain management vision is closely aligned with our business philosophy. We continue to monitor and comply with international social responsibility-related declarations and standards, aiming to drive sustainable growth of the value chain. MediaTek’s journey in practicing responsible supply chain management is as follows:
Sustainable Supply Chain Net-Zero Workshop
Starting in 2024, MediaTek expanded its carbon reduction requirements to include the Tier 2 supply chain. Reviewing product carbon footprint results is an important pathway to achieving sustainable supply chain development. By collaborating closely with Tier 1 suppliers, MediaTek extends its low-carbon manufacturing requirements to the Tier 2 supply chain and progressively builds a carbon footprint database. A cross-functional team has been assembled to work together on continuous improvement projects, consistently reducing product carbon footprints and advancing toward net-zero goals.
Supplier Partnership Initiative
As an industry leader bearing the significant responsibility of promoting sustainable management, MediaTek officially announced in 2022 its response to the global net-zero emissions initiative and began proactively collaborating with supply chain partners to plan and implement projects focused on green manufacturing and the circular economy to reduce environmental impact, demonstrating the commitment to the net-zero declaration.
To further strengthen the participation momentum and sustainability performance of supply chain partners, MediaTek established a supplier sustainability incentive system. Through clear selection mechanisms and positive feedback, suppliers are encouraged to internalize sustainability actions into their operational management processes, jointly enhancing supply chain sustainability resilience.
Through the above steps, we collaborate with suppliers, regularly reviewing performance and making rolling adjustments to strategies and targets, jointly dedicated to achieving energysaving and carbon reduction goals, and have established good cooperative relationships.
