To address supply-chain risks, Ventec actively pursues supplier diversification and develops alternate sources to maintain stability. We manage every link of the chain and center our program on complying with international environmental directives such as RoHS and REACH, conducting regular supplier assessments, and engaging suppliers ad hoc to uphold product quality and meet stakeholder expectations.
Ventec develops and manufactures copper-clad laminates (CCL) and aluminum substrates for printed circuit boards. In 2024, we partnered with about 57 suppliers, mainly located in Taiwan, Mainland China, Korea, and the United States, providing materials such as glass fiber, copper foil, epoxy resins, etc. We value long-term supplier relationships and, pursuant to the Supplier Component Approval & Control Procedure, monitor supplier performance and compliance. All suppliers must pass this procedure and comply with local laws and our requirements, including environmental protection and the prohibition of forced labor and child labor.
Ventec promotes local sourcing to reduce the carbon footprint of raw materials, while supporting local employment and economic development. We emphasize developing local suppliers and strengthening local supply-chain resilience around our key manufacturing sites—Taiwan, Suzhou, Jiangyin, and Shenzhen. In 2024, local-procurement ratios were 50.21% at the Taiwan plant and above 90% at all three plants in Mainland China.
Notes
1. Definition of 'local": Taiwan plant—purchases in Taiwan as a share of total purchases; Mainland China plants—purchases in China as a share of total purchases.
2. Currency: Taiwan plant—NTD; Suzhou/Shenzhen/Jiangyin plants—RMB.
3. The data for the four plants were assured by an independent third party.
4. "Key operating sites" refer to locations of major processes and sales: Suzhou, Taiwan, Shenzhen, Jiangyin.
Ventec manages new-supplier qualification in accordance with the Supplier
Component Approval & Control Procedure, which includes document reviews,
sample/pilot production, and on-site audits. Environmental and social criteria are
built into the selection process. We have established the Green Supplier Technical
Standard, under which new suppliers must submit third-party hazardoussubstances test reports and sign a Green Supplier Agreement and a Declaration
of Non-Use of Environmental Hazardous Substances before being added to the
Approved Supplier List.
During the raw-material evaluation stage, the Procurement team is responsible
for supplier review and for obtaining a Supplier Integrity Commitment and other
required documents. The evaluation confirms evidence such as third-party
lab reports, Environmental Substances Assurance, Green Supplier Agreement,
and REACH survey, to ensure that all products used in production, transport,
and delivery comply with the latest requirements of EU RoHS, REACH, POPs
Regulation, California Proposition 65, the U.S. TSCA, Mainland China RoHS, and
the Global Automotive Declarable Substance List (GADSL).
In 2024, six new suppliers were added; the document-signing rate was 100%, and
100% passed screening against environmental and social standards.
• Green Supplier Agreement
• Green Supplier Evaluation Report
• REACH Survey
• Supplier Quality Development Questionnaire
• Declaration of Non-Use of Environmental
Hazardous Substances
• Supplier Integrity Commitment
• Safety Responsibility Undertaking
• Management-system certification
• Conflict-minerals survey
• Sample testing
• Pilot (small-lot) trial
• Mass trial production
• Required for suppliers with production equipment and facilities.
• Qualified suppliers are added to the Approved Supplier List (ASL).
Ventec also conducts risk assessments, quarterly scoring, and an annual supplier
evaluation for existing suppliers. Suppliers are graded A–D. Quarterly criteria include
quality, procurement, delivery, cost, and after-sales service. Suppliers graded D, or C for
two consecutive quarters, are removed from the Approved Supplier List.
The annual evaluation focuses on major raw-material suppliers—resins, glass fiber,
copper foil, and aluminum sheet cutting. Audits are conducted mainly for the Taiwan
plant (materials designated in Mainland China and agents are excluded). Based on quality
performance and evaluation results, suppliers graded B or below or identified as high risk
may be subject to increased on-site audit frequency.
2024 results: 16 suppliers audited—14 rated A, 2 rated B (A-rate 87.50%). All deficiencies
identified were corrected. Going forward, we will gradually expand audit coverage. To
encourage ESG progress, we increase purchase allocation for well-performing suppliers;
poorly performing suppliers enter a negotiated phase-out process. Regular supplier
coordination meetings are held to help build suppliers' ESG capabilities.
Pursuant to the Environmental Hazardous Substances Control Procedure, Ventec prohibits the use of minerals sourced from conflict regions. For any supplier whose materials contain gold (Au), tantalum (Ta), tungsten (W), tin (Sn), cobalt (Co), aluminum (Al), copper (Cu), lithium (Li), magnesium (Mg), nickel (Ni), or mica, due diligence must be carried out to confirm that the metals are not sourced through the Democratic Republic of the Congo or adjoining countries/regions associated with human-rights abuses. New suppliers are also required to sign agreements that include A No-Conflict-Minerals commitment.
