Partners

Supply Chain Management

ASIX Electronics is committed to sustainable operations, adhering to regulations, fulfilling social responsibilities, and establishing friendly interactions with the supply chain. The company adopts guidelines for human rights conduct, procurement policies, supply quality management, green product management (hazardous/restricted substances), and responsible minerals as the cornerstone of supply chain management. Suppliers are required to protect labor rights, monitor supply quality, avoid using raw materials from conflict zones or regions with human rights violations, comply with green product regulations, and sign related guarantee declarations. By prioritizing local procurement and implementing emergency substitution mechanisms, the company aims to reduce environmental impacts and foster win-win partnerships with suppliers.

Supplier Code of Conduct

ASIX values supplier human rights and monitors and investigates whether suppliers treat workers well and uphold employer-employee ethics. Suppliers are required to ensure non-discrimination, prohibition of child labor, absence of forced labor, respect for freedom of association, compliance with labor laws, protection of workers' wages from exploitation, and provision of a safe working environment. To safeguard the safety and dignity of suppliers' workplaces and employees, the company conducts investigations in accordance with the Responsible Business Alliance (RBA) standards and requires suppliers to comply with these standards. The 2023 investigation results showed 100% compliance with no violations of labor rights. In 2024, the company will continue to monitor and oversee supplier adherence to these conduct guidelines.

Purchasing Policy

ASIX focuses on IC design, obtaining IC products through purchasing orders and contracted manufacturing. The supply chain mainly includes well-known domestic wafer foundries, packaging, and testing facilities. Suppliers possess various management standard certifications, such as ISO 9001, IATF 16949, ISO 14001, QC 080000, and ISO 45001. This ensures that ASIX's supply chain has adequate resources, product technical capabilities, and environmental and occupational safety management to meet the company's requirements. The company prioritizes local procurement to minimize carbon emissions and energy consumption from transportation. To prevent supply chain interruptions, ASIX has established a second source mechanism to ensure 100% on-time delivery and enhance customer satisfaction.

Quarterly Supplier Delivery Evaluation

ASIX has strict evaluation standards for the delivered procurement items from suppliers, conducted quarterly and annually. These evaluations are incorporated into quality targets, KPIs, and risk and opportunity assessment indicators. The quarterly supplier delivery performance evaluation includes the following items and weightings, with the rating criteria: Excellent Qualified Supplier (91 points or above); Qualified Supplier (81-90 points); Reassessment Needed (70-80 points); Non-compliant (69 points or below).
1. Product Quality (50%)
2. Issuance of Non-conformance or Corrective Action Reports (20%)
3. Compliance with Green Product Regulations (20%)
4. Cooperation and Service Attitude (10%)
The 2023 annual statistics for each supplier's quarterly and average scores show that all suppliers were rated as Excellent Qualified Suppliers (91 points or above), with excellent ratings in all evaluation criteria.

Quarterly Supplier Delivery Quality Evaluation

According to the 2023 annual statistics from the quarterly supplier incoming batch inspections, all suppliers had zero batch rejections each quarter, resulting in a rejection rate of 0%.

Annual Overall Supplier Capability Evaluation

ASIX performs annual evaluation of its key suppliers' business operations, quality management systems, and engineering capabilities through self-assessment checklists or on-site audits. In 2023, five major suppliers were evaluated, with an average score of 89.42 points. Two suppliers were rated as Excellent Qualified Suppliers, and three were rated as Qualified Suppliers.

The annual supplier evaluation items and weightings are as follows, with the rating criteria: Excellent Qualified Supplier (91 points or above); Qualified Supplier (81-90 points); Reassessment Needed (70-80 points); Non-compliant (69 points or below):
1. Business Operations (30%)
2. Quality Management System (40%)
3. Engineering Capabilities (30%)

Green Product Management

ASIX strictly adheres to international green product regulations by establishing the "Green Product Management Procedure", which ensures strict control over product design, raw material usage, manufacturing processes, and packaging materials to prevent the use of hazardous substances. The raw materials and manufacturing processes employed by ASIX's supply chain fully adhere to the EU RoHS (2011/65/EU and (EU) 2015/863 directives) and REACH regulations: "Registration, Evaluation, Authorization, and Restriction of Chemicals". This approach not only fulfills customer demands for green products but also meets international standards, contributing to the protection of the Earth's environment and reducing the environmental impact of products, thereby enhancing the competitiveness of the company's products.

EU ROHS 2.0 Restricted Substances Investigation

ASIX conducts regular audits of third-party testing reports (such as SGS) provided by suppliers for IC product raw materials to ensure compliance with the EU RoHS 2.0 restricted substances regulations. Below are the regulatory concentration limits. The 2023 review showed that all product raw material test reports complied with the regulations, with no instances of exceeding the limits.

EU REACH SVHC Investigation

ASIX regularly reviews whether the IC products supplied contain SVHC (Substances of Very High Concern), which pose significant toxicity and risks to the environment and human health. According to Article 58 of the REACH regulation, the European Chemicals Agency (ECHA) evaluates and identifies SVHC based on carcinogenic, mutagenic, and reproductive toxicity properties (CMR substances), persistent, bioaccumulative, and toxic properties (PBT/vPvB substances), or other substances of equivalent concern (e.g., endocrine disruptors). Notification to ECHA is required if both of the following conditions are met:
1. The concentration of SVHC in the finished product exceeds 0.1% (w/w).
2. The total annual volume of SVHC manufactured or sold within the EU exceeds one ton.

As of 2023, there are 235 identified SVHCs (in 29 batches). ASIX’s regular audits have shown full compliance, with no instances of exceeding the concentration or total volume thresholds requiring notification.

Conflict-Free Minerals Management

To ensure the responsible procurement of minerals, ASIX has established a conflict minerals policy statement. This policy commits to thoroughly investigating the supply chain to ensure that metals such as gold (Au), tantalum (Ta), tungsten (W), cobalt (Co) and tin (Sn) are not sourced from conflict areas in the Democratic Republic of the Congo or illegally smuggled by armed groups or illicit organizations. Additionally, metals exported from the following countries are non-compliant with the "conflict-free" standard: the Democratic Republic of the Congo, Rwanda, Uganda, Burundi, Tanzania, and Kenya (the UN Security Council recognizes these countries as being linked to the Congo mineral belt). ASIX declares that all products sold to customers and metals used in the downstream supply chain meet conflict-free mineral standards. The company continuously monitors supplier mineral sources for compliance using the Responsible Minerals Initiative (RMI) Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT). It employs a 100% product-specific investigation method and conducts comprehensive re-evaluations whenever the investigation templates are updated or the smelter list changes to ensure adherence to responsible mineral procurement and due diligence.

In 2023, the company conducted investigations based on CMRT and EMRT templates, with results indicating 100% compliance. All used metal minerals were from compliant smelters. In 2024, ASIX will continue its due diligence efforts, requiring suppliers to regularly update investigation data and strictly supervise corrective measures for any non-compliant smelters until compliance is achieved.

Customer Relationship Management

The customer relationship management policy of ASIX focuses on establishing long-term partnerships with upstream and downstream supply chain vendors. Strategically cooperating with wafer foundries, design service companies, and packaging and testing plants ensures a stable supply of chips, superior quality, and competitive pricing. Simultaneously, long-term relationships with key customers ensure the overall operational stability of the company. Maintaining relationships with downstream customers is crucial. ASIX not only offers the best value and competitive chip solutions but also sustains strong long-term customer relationships through the most timely and professional technical support services.

To provide the most timely and professional technical support and promptly relay customer feedback to the R&D department, ASIX has implemented an internal system for tracking customer technical issues. Personnel from the sales, technical support, and R&D departments can use this system to access the latest customer feedback and discuss it in regular weekly meetings to ensure all customer issues are promptly addressed. For high-growth and key premium customers, ASIX directly manages business marketing and technical support after-sales services, reinforcing long-term partnerships with these key customers.

Customer Satisfaction Survey

ASIX conducts annual customer satisfaction surveys, including aspects after-sales service, engineering support service, order lead times, product quality, and environmental measures. The 2023 survey results indicated an overall average satisfaction rating of 4.7 out of 5, with zero complaints regarding customer privacy violations over the year.