Sustainable Supply Chain

Management of Conflict Minerals

VisEra supports customers and works hard to become a responsible member of the supply chain to the society and the environment. We are committed not to use minerals including associated with armed conflict, forced labor, or child labor abuse, or mined under other illegal and harsh working conditions. The Company requires all suppliers to cooperate with the ban on the use of minerals from conflict areas. Suppliers must disclose the smelter information to pass the new material certification and proceed with transactions. If the disclosed information is incomplete or if the materials are not provided by a qualified smelter, VisEra shall continue to request improvements from suppliers and will not rule out seeking alternative sources.

VisEra requires suppliers to sign the “Compliance Statement for the Code of Professional Ethics and Supplier Code of Conduct” and conduct annual conflict minerals surveys of direct raw material suppliers and contractors. We require direct raw material suppliers and contractors to provide raw materials that meet corporate social responsibility, including current legal requirements. For materials containing gold (Au), tantalum (Ta), tungsten (W) or tin (Sn), or any materials that are considered “conflict minerals” by law in the future, suppliers are required to investigate and disclose their origin, avoid conflict areas, or confirm that they are sourced from smelters certified by the Responsible Minerals Initiative (RMI). If incomplete information is disclosed or if unqualified smelters are used, VisEra will continue to require improvements from suppliers.

VisEra shall update the “RMI Conflict Minerals Reporting Template” at least once every year to mitigate the risks of omitting newly classified minerals and new regulatory requirements. The latest version of the questionnaire was used in 2022. If necessary, we will audit the supplier or the smelter to ensure that the raw materials supplied meet social responsibility requirements. In 2022, we used the Conflict Minerals Reporting Template (CMRT) and the Extended Minerals Reporting Template (EMRT) questionnaires to survey 14 suppliers of direct materials and the questionnaire response rate was 100%. We identified 7 smelters which were all RMI-certified smelters and the disqualification rate was 0%. As neither the direct material suppliers nor the contractors used conflict minerals, there were no acquisition restrictions or difficulties and no follow-up improvements were required. There have been no significant changes or increases in the price of raw materials by suppliers due to the management of conflict minerals.