VisEra regards suppliers as the most important strategic partners. In addition to providing products that meet customer expectations, we invite suppliers to jointly fulfill corporate social responsibility while supporting environmental protection and social values. VisEra’s suppliers for seven major procurement categories include raw materials, equipment and components, plant operation and engineering, outsourced service providers, waste disposal, service providers, and products. There were 587 suppliers in transactions in 2022. We identify tier 1 suppliers and key suppliers based on the procurement amount and the importance of the products and implement corresponding management measures to reduce supplier risks.

Convene two material preparation meetings each week for key materials such as photoresists and target materials, and implement continuous review of the quantity of raw material inventory with related personnel based on the customer demand volume. Photoresist materials generally involved joint development and there is only one supplier. To mitigate the material supply interruption risks, we ensure that the suppliers have backup plants. We maintain at least two main suppliers with backup plants for each target material. There has not been any shortage in supplies or interruptions that impacted production at the Company in the last three years or in the most recent period. Direct materials of VisEra are coated on products and do not need to be recycled. Therefore, there are no investments or plans for technologies for recycling materials. Other raw materials such as tetramethylammonium hydroxide (TMAH), isopropyl alcohol (IPA), and solvents are disposed as waste or recycled according to waste management practices after use.

In terms of the management structure, the Materials and Resources Department is the unit responsible for managing the supply chain. It convenes regular communication meetings every year to coordinate with all units on the implementation of strategies and targets involving suppliers’ environmental protection, friendly workplace, supplier management, quality management and value innovation. To enhance improvements and achieve sustainable management in environmental, social and economic aspects, VisEra established the Supplier Review Board (SRB) in the second quarter of 2022. As a principle, it holds supplier review meetings every two weeks to rule on the invalidation of new suppliers or existing suppliers for the purpose of improving supplier management.