Sustainable Supply Chain

▌Responsible Supply Chain Management

As a leading technology provider for the global semiconductor industry, MediaTek is located at the front-end of the value chain. All back-end processes involving raw material procurement, OEM manufacturing, packaging, and testing are carried out by 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 will be 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 RBA Code of Conduct, International Labor Office Tripartite Declaration of Principles, and the UN Universal Declaration of Human Rights into its Supplier Code of Conduct. All suppliers are required to take positive action and comply with this code. As a top enterprise in the global electronics industry supply chain, MediaTek spares no effort to safeguard the collective rights and well-being of its staff. The Supplier Code of Conduct adopted by us encompasses 39 indicators in the following five dimensions: Labor and human rights, health and safety, environmental protection, professional ethics, and management systems. We continue to observe and respond to social responsibility standards accorded high importance worldwide. As of 2023, all the suppliers of MediaTek have signed the agreements.

▌Annual and New Supplier Sustainability Risk Assessment Criteria

The scope of issues of concern to global customers and the general public has gradually expanded from price, quality, and service standards to social and environmental laws and standards and legal responsibilities in respective nations. MediaTek has therefore reorganized its supplier evaluation standards in the economic, social, and environmental dimensions. The Company monitors its supply chain to confirm compliance and stepping up of efforts in the field of sustainable development involving corporate governance, energy conservation and carbon reduction, green manufacturing, employee care, and expanded social engagement. The ultimate goal lies in the prevention of risks that harm stakeholder interests including improper management resulting in environmental pollution, product quality aberrations, and production capacity and manpower shortages at any link of the supply chain. Such risks cause shipping irregularities, rising costs, dropping revenues, and thereby negatively affect the reputation, image, and competitiveness of MediaTek. MediaTek requires all new suppliers to meet this assessment criteria. For existing suppliers, we also continuously track and evaluate their suitability based on this criteria every year.

▌Key Supplier Management

To strengthen the effectiveness of supplier management, MediaTek established a supplier corporate sustainability scoring criteria. For "key suppliers", namely suppliers that have a significant impact on the quality of MediaTek's products and production schedules, or suppliers from whom the Company's purchase amount and proportion reach the threshold of materiality, we conduct key management in order to improve the quality and sustainability of green procurement practices and manage operational risks.

In 2024, we expanded the number of evaluated suppliers, with three new ones added. The overall average evaluation score was 77 points. For suppliers ranked lower in scores, MediaTek continues to actively provide guidance for improvement, and encourages them to learn from benchmark suppliers to continuously enhance their sustainable development. This strengthens the supply chain􏘧s support for MediaTek􏘧s sustainability initiatives, to jointly achieve excellent and ongoing sustainability advancements for MediaTek's products After the annual announcement of the evaluation results, we recognize and present the Best Sustainability Partner Supplier Award at the Annual Supplier Conference to encourage and thank the suppliers for their close cooperation and proactive implementation of MediaTek􏘧s sustainability goals in the past year so as to build a sustainable value chain together with MediaTek.

▌Key Material Risk Management

As a front-end service provider of the semiconductor value chain, we harness innovative technologies to minimize the environmental and social impacts of our products. We also conduct risk management for key materials required for the manufacturing process by implementing requirements and selections (incl. conflict mineral surveys and local procurement) for the supply chain with the goal of realizing corporate sustainability.

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," the "Responsible Business Alliance," and the "Global e-Sustainability Initiative," we require our suppliers to provide a "conflict-free guarantee" to demonstrate their commitment to refraining from the use of minerals from conflict zones. In addition to 3TG surveys, we have been utilizing the CRT (Cobalt Reporting Template) to conduct cobalt surveys since 2018. All suppliers will be required to disclose information for all smelters in a detailed manner.

Local Procurement

MediaTek embraces the principle of local procurement to enable local citizens to reap the benefits of economic development and reduce carbon emissions caused by the transportation of raw materials. In the current year, our localized procurement in Taiwan reached over 90%, encompassing the vast majority of both raw materials and general procurement items.

▌Actions Harnessing MediaTek Influence

Actions Harnessing Influence on Suppliers

Our supply chain management vision is inextricably intertwined with our business philosophy. We therefore constantly monitor and abide by International social responsibility-related declarations and standards to foster sustainable growth of the value chain. MediaTek's responsible supply chain initiatives can be summarized 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 a key to achieving sustainable supply chain development. By collaborating closely with Tier 1 suppliers, MediaTek is extending its green manufacturing demands to Tier 2 suppliers and progressively building a carbon footprint database. A cross-functional team has been assembled to work together on continuous improvement projects, to consistently reduce the carbon footprint of products and advance toward net-zero goals.

Supplier Partnership Initiative

As an industry leader, MediaTek bears the significant responsibility for promoting sustainable management. Following our official announcement in 2022 to respond to the global net-zero emissions initiative, we began proactively collaborating with supply chain partners to plan and implement projects focused on green manufacturing and the circular economy to reduce environmental impact, thus demonstrating our commitment to the net-zero goal.

Through the above steps, we collaborate with our suppliers, and regularly review performance and make rolling adjustments to strategies and goals. This collaborative effort is dedicated to achieving energy-saving and carbon reduction targets and has fostered strong partnerships.

For further details, see the “Environmental Management” section of the 2024 MediaTek ESG Report.