Our Focuses｜Sustainable Supply Chain｜Toward Net-Zero Supply Chain

  • Our Focuses
  • Sustainable Supply Chain
  • Toward Net-Zero Supply Chain

Sustainable Supply Chain

Winbond anchored its sustainable supply chain program in "Practicing Responsible Procurement," and a "People-oriented", integrating ecosystem thinking into governance and day-to-day supply chain operations. Through the dual transformation pillars of digitalization and decarbonization, Winbond strengthened controls, data collection, and collaboration mechanisms to support measurable progress.
In a volatile operating environment, maintaining business continuity requires innovation and agile response. Winbond worked with suppliers through audits, training, and digital data systems to strengthen operational resilience and manage ESG risks across the supply base.
Winbond strengthened supplier engagement and expanded value-chain collaboration. In 2025, Winbond received an A rating in the CDP Supplier Engagement Assessment (SEA), achieving Leadership level recognition.
Through value-chain climate collaboration, Winbond supported partners’ low-carbon transition and co-developed a climate-resilient sustainable supply chain ecosystem.

Read Chapter Report Contents
SDGs 17 Partnerships for the Goals
SDGs 13 Climate Action
SDGs 12 Responsible Consumption and Production
SDGs 9 Industry, Innovation and Infrastructure
SDGs 8 Decent Work and Economic Growth

CDP Supplier Engagement Assessment

A List

OSAT Suppliers have Established Production Capacity for Renewable Energy-Based Products

100

%

Co-learning Hours of Eco Supply Chain System

56842

Hours

Toward Net-Zero Supply Chain
Supply Chain Composition and Management Framework
Sustainable Risk Assessment
Toward Net-Zero Supply Chain
Sustainable Raw Material Management
Sustainable Supply Chain Communication
Conflict Minerals

Low-carbon Supply Chain Strategy and Management

 

Addressing significant concerns about extreme climate events and reducing carbon emissions has become a primary focus for international brand manufacturers. Achieving net-zero emissions by 2050 has garnered consensus among numerous countries and enterprises worldwide. Winbond advocates leading by example and believes that effective propagation of carbon reduction efforts starts internally.

Internally, Winbond has established sustainable procurement practices (including local, circular, and green procurement), implemented an internal green logistics management system, and supported outsourced partners in developing low-carbon technologies. Externally, Winbond encourages and promotes carbon reduction initiatives among suppliers, regularly collects data to monitor progress towards carbon reduction goals, organizes various supplier engagement activities to build consensus on carbon reduction, and collaborates with government subsidy projects to reduce carbon management costs for suppliers and lower entry barriers. Together with suppliers, Winbond aims to become a responsible corporate citizen committed to sustainable practices.
 

 

Low Carbon Supply Chain Strategy - Comprehensive Carbon Reduction Management

Leading by Example - Carbon Reduction Initiatives at the Supply Chain Source

 

To advance toward the 2050 net-zero target, Winbond in 2025 continued supplier ESG engagement activities related to energy conservation and carbon reduction and expanded the scope of supply chain decarbonization. Winbond led by example by starting with Scope 3 reductions, including upstream transportation, backend packaging and testing services, and waste treatment. Annual carbon reductions reached 11,459 tCO₂e, and Winbond continued to encourage suppliers to set Science Based Targets initiative (SBTi) targets. 
In supply chain collaboration, Winbond Taiwan and 13 suppliers applied in 2023 to the Industrial Development Administration, Ministry of Economic Affairs, for the “Low-Carbon and Smart Manufacturing Upgrade and Transformation Subsidy Project (Large Leads Small).” Over two years, the project completed over 30 carbon reduction initiatives, reducing 19,995 tCO₂e and exceeding the target by 240%. Winbond demonstrated low-carbon supply chain governance performance through two pillars: “Lead by Example—Internal Scope 3 Emission Reduction” and “Expansion and Impact—Low-carbon Supply Chain Governance.”

 

 Internal Scope 3 Emission Reduction in 2025

CategoryKey Initiatives and Carbon Reduction Performance
Raw materials decarbonization
  • In 2025, coached significant suppliers to complete product carbon inventories; annual reductions in upstream value chain (Scope 3, Category 1) reached 4,625.8 tCO₂e.
Upstream transportation
  • Completed multi-source traceability for 9 significant materials; six were shifted to Local Procurement, reducing emissions by 725.0 tCO₂e.
  • Introduced a shared logistics mechanism and engaged two suppliers in shared-transport models, reducing 0.3 tCO₂e annually.
  • Implemented Packaging Optimization 2.0 and paperless low-carbon import/export operations; for sample shipments, adopted safe minimal packaging to avoid over-packaging, reducing packaging and transportation emissions by 251.6 tCO₂e annually.
Backend packaging and testing services
  • Conducted regular product carbon footprint inventories; the third inventory will be conducted in 2026 to track changes across seven major OSAT suppliers and set hotspot reduction targets.
  • Continued packaging material decarbonization projects (anti-static boxes replacing paper cartons, Reel material reduction, Carrier Tape recycling and reuse, Tube material recycling and reuse, removal of duplicate labels), reducing 285.9 tCO₂e.
  • Introduced energy-efficient test production equipment, reducing 3,702.0 tCO₂e.
Waste disposal
  •  Reduced the incineration treatment ratio for IPA waste liquid (CTSP Fab: 30%→15%; Kaohsiung Fab: 20%→10%), reducing 391.2 tCO₂e in 2025.
  • Shifted spent waste expanded polystyrene (EPS), corrugated plastic board, and ultrapure water (UPW) filter cores from incineration to recycling treatment, reducing 3.9 tCO₂e in 2025.
     

Sustainable Procurement

 

Winbond worked with suppliers as “+1” sustainability partners and leveraged procurement to drive sustainability impact, transforming economic benefits into long-term momentum for shared prosperity with existing and potential suppliers. In 2025, Winbond fully implemented three sustainable procurement strategies: local procurement to reduce greenhouse gas emissions from international transportation; circular procurement to promote material circularity and reuse; and green procurement to encourage suppliers to develop environmentally friendly products and services.

Local Procurement

Circular Procurement

Green Procurement

 

Description

To strengthen operational resilience, Winbond prioritized local procurement of critical raw materials required for wafer manufacturing (chemicals, gases, targets, and wafers). In 2025, external challenges—including new international climate agreements, carbon fees, layered tariffs, inflation controls, and supply chain regionalization and shortening—continued to affect supply chain resilience and operational stability. Winbond therefore focused on two key initiatives: enhancing green and low-carbon processes at manufacturing sites and optimizing the local procurement mix for critical raw materials to strengthen resilience and mitigate operating risks. In 2025, the local procurement spend ratio was 37.3% for Winbond (Taiwan), 30.3% for Nuvoton (Taiwan), and 43.7% for Nuvoton (Japan), all remaining above 30%. Looking ahead, Winbond will continue multi-track traceability to strengthen resilience for critical raw materials, strategically expand local procurement to production equipment, critical spares, and components, and assess localization feasibility across supply resources to build a more flexible and reliable supply chain.
 

 

Proportion of local procurement amount of raw materials

 

 

 

 

Description

Winbond advanced circular procurement by focusing on operational processes at its Central Taiwan Science Park (CTSP) Fab and Kaohsiung Fab. Winbond identified products and services with circular benefits and worked closely with suppliers through procurement strategies to maximize resource efficiency. In 2025, circular value was generated through recycling and remanufacturing of scrap targets, scrap wafers, and various hardware, creating more than NT$12.42 million in circular revenue (NT$10.0 million for Winbond Taiwan and NT$2.42 million for Nuvoton Taiwan). Looking ahead, Winbond will prioritize procurement of products with repairability, reusability, and high recycling potential to accelerate progress toward sustainability goals. 

 

Performance in 2025

 

 

Description

Winbond Taiwan embedded the “sustainable living” concept and used procurement to drive transformation across the supply chain and employee lifestyles. On the manufacturing side, Winbond prioritized high-efficiency, low-pollution, and recyclable equipment and building materials. Reported green procurement under the Ministry of Environment “Green Procurement Declaration Platform” exceeded NT$430 million. On the employee side, Winbond promoted sustainable living each quarter, engaging 2,735 participants by the end of 2025. Going forward, Winbond will expand the scope of green procurement and develop diversified green products and services, extending initiatives across administrative and manufacturing systems at the group level. 

 

 

Performance in 2025

  •  The value of green procurement reported via the Ministry of Environment “Green Procurement Declaration Platform” for Private Enterprises and Groups” exceeded NT$439 million. 
  • The Kaohsiung Fab achieved over NT$112 million in green procurement and was recognized as an “Outstanding Enterprise for Net-Zero and Green Living.”
     

 

 

 

Dissemination and Influences Governance Power in Winbond Supply Chain

 

As global brands increasingly emphasize the carbon reduction capabilities of their supply chain members, the trend towards supply chain-based carbon reduction units is becoming clearer worldwide. To ensure each supplier gradually becomes a participant in Winbond's supply chain carbon reduction efforts, Winbond has established a Carbon Management Portfolio strategy. This strategy integrates four key approaches: Data Governance, Sustainable Learning from Large to Small, Management Transformation, and Joint Identification of Development Opportunities, forming the core of Winbond's low-carbon governance across its supply chain.

  • Objectives
    • By 2030, ensure that Tier-one suppliers are informed and equipped with information, knowledge, and capabilities for carbon management and reduction.
    • Achieve a 10% reduction in carbon emissions across the supply chain by 2030 (baseline year: 2021).
    • Achieve net-zero emissions across the supply chain by 2050.
  • Winbond's Supply Chain Low-carbon Initiative Milestones

 

 

Low Carbon Supply Chain Management Process

 

Carbon Management Strategy Portfolio

Management Process

Item and Performance

Large Leads Small Initiative
 

1. Identify conflicts

2. Carbon reduction declaration

4. Fostering Collective Awareness

  • ESG co-learning workshops for critical suppliers

    • Invite long-standing suppliers with outstanding performance in carbon reduction to participate in ESG collaborative learning

    • By 2025, a cumulative total of 38 collaborative learning sessions will have been conducted.

  • Management Forum: Sustainable Supply Chain Management Forums
    • Total of 6 sessions conducted.
  • Technical Forum: Advanced Packaging Technology Forum
    • Total of 6 sessions conducted.

Data Governance

3. Data Governance

  • Sustainable Supply Chain Resource Usage Survey

    • In 2025, Winbond Taiwan surveyed 250 suppliers directly related to Winbond Scope 3 emissions to review annual electricity savings, water usage, waste generation, and GHG reduction performance.

    • For suppliers listed by the Ministry of Environment with carbon emissions greater than 25,000 tons, communicate with them to disclose the inspection results and encourage them to carry out energy conversion and related emission reduction measures.

    • 2025 Survey Results

      • Number of Suppliers Achieving the Annual 1% Electricity Saving Target : 38

      • Number of Suppliers Achieving the Annual 5% Water Saving Target :10

      • Number of Suppliers Achieving the Annual 1% Waste Reduction Target : 20

      • Cumulative Number of Suppliers Certified to ISO 14064-1:2018: 49

      • Cumulative Number of Suppliers Certified to ISO 14067:2018: 23

      • Cumulative Number of Suppliers Certified to ISO 50001: 28

      • Number of Suppliers Disclosing through CDP: 77

         

        [Note] The electricity conservation, water conservation volume and waste reduction volume were management data provided by suppliers based on the principle of good faith.

 

Managing transformation

1. Identify conflicts

3. Data Governance

4. Fostering Collective Awareness

  • Conduct ESG education and training for colleagues in the supply chain management center to strengthen internal colleagues’ empathy for suppliers’ carbon reduction efforts, replace requirements with encouragement, assistance, and reciprocity, and reduce the resistance of various suppliers to carbon reduction efforts.

    • Training hours in 2025: 34 hours (person)

  • Sustainable work digitization: Establishing Winbond Electronics supplier platform

    • Routine supply chain operations

    • Supplier ESG Interaction Platform

    • Outsourcer product carbon footprint information exchange module

    • Green product operations management module

Identifying Development Opportunities Together

5. Carbon Abatement together

  • Led by Winbond, and with the establishment of an ESG sustainable supply chain team, a consortium comprising 13 suppliers including raw materials, packaging and testing, machinery and equipment, and factory engineering, successfully applied for a full NT$30 million subsidy from the Industrial Development Bureau of the Ministry of Economic Affairs.
  • In 2025, Winbond’s low-carbon transformation collaboration project within the sustainable supply chain was successfully concluded, completing over 30 carbon reduction initiatives and achieving total reductions of 19,995 tCO₂e—exceeding the target by 240%. The project was selected as an annual low-carbon achievement demonstration case by the Industrial Development Administration, Ministry of Economic Affairs.
  • Winbond held 1 briefing session on the Sustainable Supply Chain Transformation Diagnostic Subsidy Program, with a special invitation extended to suppliers with smaller procurement volumes and limited transformation resources. A total of 220 participants attended.