AMD partners with suppliers to advance human rights and environmental sustainability

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Posted 7 minutes ago

Proposed by AMD

Originally published in AMD Corporate Responsibility Report 2021-22

With around 76% of global trade passing through them, supply chains continue to be one of the most important levers for businesses to create a positive impact in the world.1 By working together, companies and their suppliers can have a significant impact in promoting human rights, fair labor practices and environmental progress.

Over the past few years, our industry has seen unprecedented demand for semiconductor technology, which requires a strong supply chain. The link between resilient and responsible supply chains is clear. Therefore, stakeholder expectations for transparency and data-driven results remain front and center in 2022. Together with our supply chain and industry partners, AMD seizes the opportunity to contribute to social progress and environment of the supply chain.

Although we adhere to the highest standards, we know that social and environmental risks in the supply chain are persistent and real. With the increasing number of electronic devices in use around the world comes the responsibility to ensure that we do the right thing and conduct our business ethically. We are committed to providing high quality products and ensuring that working conditions throughout our supply chain are safe, workers are treated with respect and dignity, and manufacturing processes for our products are respectful. of the environment.

Our approach

As AMD is a fabless semiconductor company, our manufacturing operations depend on a network of carefully selected suppliers. The scope of the AMD Supply Chain Responsibility program includes the manufacturing of our products by suppliers located in Asia, Europe and the United States, as well as the sourcing of raw materials.

We aim to work with our manufacturing suppliers2 to advance supply chain resilience, respect for human rights and environmental sustainability. We take a partnership approach with our suppliers to promote continuous improvement and drive positive change in our value chain.

Our value chain starts with the design process. Our wafer foundry suppliers source raw materials and create a silicon wafer. The wafer is transformed into chips, assembled in a package, tested and shipped as a semiconductor ready for use by our customers. The majority – around 61% – of our supplier spend is with the foundries that supply these wafers. A further 26% of our spend is on factories that manufacture a range of inputs needed to create our products. This concentration of vendor spend allows us to take a long-term approach with key vendors, which is critical to our success.

In our Supply Chain Responsibility Supplier Guide, we share with our manufacturing suppliers our expectations and available resources. Our standard contractual terms for the purchase of goods and services require compliance with applicable laws and regulations, and we reinforce our expectations for responsible social, ethical and environmental conduct. Training is made available to suppliers through the Responsible Business Alliance (RBA) e-learning academy. Topics cover social and environmental issues and are assigned to suppliers based on identified knowledge gaps.

Goals and progress

We are expanding our work with suppliers to positively impact the people who work in our value chain and the planet we all share. Our goals include:

  • 100% AMD Supplier Manufactured2 factories must have a Responsible Business Alliance (RBA) or equivalent audit by 2025.
    • ON TRACK: Between 2020 and 2021, 64% of these supplier factories have undergone an RBA audit.
  • 80% of AMD manufacturing suppliers spend to participate in capacity building activity by 2025.
    • ON TRACK: 61% of these vendors by spend participated in capacity building activities in 2021, including ethical recruitment training.
  • 100% of AMD manufacturing suppliers have public emission reduction targets by 2025.
    • ON TRACK: In 2021, 74% of our manufacturing suppliers have public GHG targets.
  • 80% of AMD manufacturing suppliers source renewable energy by 2025.
    • ON TRACK: In 2021, 74% of our manufacturing suppliers powered by renewable energy.

For more information on supply chain responsibility programs and initiatives at AMD, please see our website.

Footnotes :

  1. https://www.trade.gov/supply-chain-services
  2. AMD Manufacturing Suppliers are suppliers that AMD purchases directly from and who provide direct materials and/or manufacturing services.
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