Responsible supply chain

Our suppliers are key partners in our efforts to create sustainable value, in and beyond our operations. Together, we can create positive impact for our stakeholders, the planet, and society overall – well beyond our individual scale. We have already taken significant steps in this ongoing journey to a sustainable, responsible supply chain, and we know there is much more to do in coming years.

Our 2022 results

100% Acknowledged our Code of Conduct

100% Supported conflict minerals due diligence

51% Disclosed to CDP supply chain

Code of conduct and due diligence

Since 2014, ASM has applied the Responsible Business Alliance’s Code of Conduct as policy (RBA CoC) throughout its supply chain. We focus particularly on strategic and critical suppliers that collectively represent the majority of our direct materials spend.

At ASM, we require all our suppliers to complete an RBA self-assessment questionnaire to assess their risk factors in our supply chain. Risks are identified based on various aspects, such as their management system availability, but also the presence of vulnerable groups including young workers and foreign migrant workers.

We then actively engage with suppliers who have a high-risk profile to understand the issues, define and drive a remediation plan, and (if necessary) conduct supplier audits. The way in which we handle code commitment, supplier self-assessment, auditing, and corrective action is in line with RBA requirements.

Supplier safety

We extend our intensive commitment to safety into our supply chain. At ASM, we hold ourselves to high standards and we strive to hold our suppliers to the same standards. What this means in practice, for example, is that supplier representatives who come to work at ASM sites are trained on ASM safety expectations and requirements. And we are always looking for additional ways to extend our ZERO HARM! safety vision to all of our supplier partners.

Responsibly sourcing minerals

As a responsible member of the global community, we are committed to addressing human-rights risks and abuses. One possible source of such risk is the trade in conflict minerals. These minerals are mined in the Democratic Republic of Congo (DRC), adjoining countries (Covered Countries) or Conflict Affected High Risk Areas (CARHAs), and profits from the sale of these minerals may directly or indirectly benefit those involved in rebel conflicts and human-rights violations.

Such minerals and the metals created from them – tin, tantalum, tungsten, and gold (3TGs) – can make their way into the supply chains of products used around the world, including the semiconductor industry. That is why we are always vigilant about the provenance of these materials and strive to play a leading role in our value chain to ensure responsible minerals sourcing at every step.

Forced and bonded labor

At ASM, we are committed to offering our employees a safe working environment where they are free to be themselves and to develop a fulfilling long-term career in which they can grow and thrive. In line with these priorities, we want to do everything we can to ensure the protection of human rights in our supply chain, including making sure that it is free of forced and bonded labor (FLBL).

In recent years, our FLBL due diligence has focused on two elements:

Continued engagement in our extended supply chain, with special attention for responsible-minerals sourcing and conformance to the RBA Code of Conduct. We will continue to strengthen our due diligence scope and practices.
Development of a Supplier Risk and Maturity Assessment, including several known indicators of human-rights risks. Based on the outcome of this analysis – and building on prior work we have done related to FLBL mapping in our supply chain – we are developing a targeted strategy for additional due diligence and supplier engagement for 2023 and beyond.

Supply chain diversity

At ASM, we believe that diversity starts with our culture and core values: We care, We innovate, We deliver. Our award-winning employee value proposition – “Power of an Open Mind” – reflects our ambition to grow employee engagement, develop our existing team members, and shape a diverse and inclusive culture.

In similar ways, we are looking to increase diversity in our own supply chain. We are also actively exploring other ways to encourage growth of opportunities in the broader industry supply chain. In 2022, ASM was honored to be selected as co-chair of SEMI’s Manufacturing Ownership Diversity Working Group (known as the SEMI MOD WG).

This SEMI MOD working group is comprised of chip manufacturers, original equipment manufacturers (OEMs), component suppliers and NGOs working to develop a common standard to define supplier diversity within the industry and provide best practices.

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