Cmi consistently views suppliers as strategic partners, firmly believing in mutual support and growth with its supplier partners. Cmi’s supply chain is primarily divided into four major categories: raw materials, equipment, molds and tools, and subcontracting suppliers. In 2023, the focus continued on integrating raw material suppliers.

Cmi’s primary production and operational bases are located in East China and Taiwan. To promote local industrial clusters and regional economic development, the company strives to collaborate with local suppliers whenever possible. Except for certain specialized materials and equipment that need to be procured internationally, Cmi actively engages in exchanges and technical cooperation with local suppliers to increase local procurement rates.

Supplier Development

Cmi’s main products are flexible printed circuit boards (FPC), with upstream raw materials including copper foil substrates, chemicals, films, and electronic components, and downstream applications in various electronic products, including information, communication, and consumer products. Therefore, the characteristics of upstream materials, manufacturer processes, and technical levels significantly impact the quality of FPC. Consequently, the expertise and cooperation of upstream, midstream, and downstream suppliers are crucial.

Cmi has established a “Quality Management System” to effectively manage the quality of supplier deliveries. Additionally, the company has developed relevant documents such as the “Supplier Integrity Management Commitment” and the “Conflict Minerals Free Guarantee,” extending our social responsibility concepts and requirements to the supply chain. Suppliers are required to comply with and commit to these standards to ensure all operations meet environmental, labor regulations, and international corporate social responsibility standards. This is to ensure suppliers meet ESG audit sustainability management requirements.

Supplier Evaluation

To ensure suppliers meet the company’s needs in terms of delivery quality, quantity, timing, price, and sustainability, Cmi has established supplier management measures. These measures include evaluating the quality, delivery time, environmental, and social aspects of suppliers and new entrants. Supplier evaluations for 2023 have been implemented.

Note: Headquarters has not yet implemented environmental and social assessments for suppliers; implementation is planned for 2024.

Note: Headquarters has not yet implemented environmental and social assessments for suppliers; implementation is planned for 2024.

In 2023, the results of the evaluations for new and existing suppliers met the company’s management requirements, with no suppliers causing termination of services due to significant violations of environmental and social regulations.

Supplier Risk Management

To avoid impacts on company production efficiency due to major disasters, unanticipated closures, or other issues, Cmi has established a risk assessment mechanism to strengthen supplier management.

Cmi conducts annual risk assessments and evaluations of suppliers to ensure ongoing operations. Appropriate preventive measures are taken to avoid and minimize potential harm to Cmi’s operations, safeguarding stakeholder interests. Cmi maintains relationships with at least two suppliers for major equipment and subcontracting processes to ensure stable service supply and reduce potential operational interruption risks.