Our Focuses｜Sustainable Supply Chain｜Conflict Minerals

Responsible Sourcing of Minerals

Winbond actively promotes the requirements of the Responsible Business Alliance (RBA) within supply chain, considering them to be fundament elements of supply chain management. Following the management recommendations of the Organization for Economic Co-operation and Development (OECD) on due diligence, Winbond firstly issued a conflict-free minerals statement; and secondly, based on the composition of its products, conducts material analysis to identify suppliers that require focused investigation for further due diligence implementation. Suppliers are strictly required to select qualified smelters and update information within the validity period. Finally, each year, Winbond produces and publicly declares a conflict minerals due diligence report based on the investigation results.

Responsible Sourcing Management Process

Winbond Conflict-free Minerals Statement

Winbond follows the Responsible Minerals Initiative (RMI) to conduct due diligence on the sources and governance of tantalum, tin, tungsten, gold, cobalt, and mica in its manufactured products to ensure that its procurement practices comply with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas or an equivalent and recognized due diligence framework. At the same time, Winbond also requires all suppliers to adhere to and sign relevant codes of conduct and ethical standards related to sustainability, employee ethics, the Universal Declaration of Human Rights, and the Tripartite Declaration of Principles concerning multinational enterprises and social policy by the International Labour Organization. They are also required to adopt green products, adhere to environmental protection policies, and comply with the Responsible Business Alliance (RBA) standards. In 2023, all qualified suppliers signed Winbond's Code of Ethics and Integrity and Winbond's Supplier Code of Conduct Commitment (including clauses related to RBA and conflict minerals statements), ensuring the absence of "conflict minerals from non-conforming smelters" and products from the Democratic Republic of Congo or adjacent countries and regions and compliance with applicable regional and international laws regarding responsible minerals.

Identification and Results of 3TG Metal Sources

Winbond initially determines the composition of each source product based on the Safety Data Sheets provided by suppliers, identifying whether they contain specific metals. Subsequently, Winbond uses the Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT) to investigate the sources of gold (Au), tantalum (Ta), tin (Sn), tungsten (W), cobalt (Co), mica, and other responsible minerals published by the Responsible Minerals Initiative (RMI) within suppliers' product components. In 2023, a total of 17 surveyed suppliers were investigated, with smelters of various metals located in 26 countries across North America, South America, Europe, Asia, and Central Asia. A total of 114 qualified smelters met the requirements and did not engage in the sale of prohibited products to Winbond. In the future, Winbond will continue to adhere to the policy of conflict-free minerals and will regularly issue due diligence investigations and annual responsible sourcing due diligence reports.
 

In the future, while adhering to our stance of not using conflict minerals, we will take three approaches to prevent and control the risks of 3GT metals. First, continuing to distribute due diligence survey on a regular basis, issuing annual due diligence reports on conflict minerals, and conducting on-site audits of suppliers who use 3GT metals to ensure the responsible procurement undergoing. Second, we will continue to trace domestic and foreign suppliers who adopt 3GT minerals in compliance with regulations and also implement conflict mineral management policies and develop diversified supply risk controlling and prevention. Third, for suppliers who might potentially use or purchase risks of conflict minerals, Winbond will do our best to assist the company in tracing the origin of other compliant minerals. If there is no improvement, Winbond will completely stop trading with the suppliers.
 

• Winbond Responsible Minerals Due Diligence Report