Supply Chain

Responsible Management of Supply Chain

We ensure that our suppliers build a stronger competitive edge through support and cooperation in order to establish a sound corporate ecosystem and a sustainable supply chain.

 

Driven by our philosophy of fairness, openness, and win-win cooperation, we operate our supply chain with approximately 2,200 suppliers across the globe. We assist all our suppliers in complying with the ‘Samsung Supplier Code of Conduct’ and operating in accordance with relevant local regulations and international standards. Through assessing our suppliers, we manage supply chain risks in terms of sustainability aspects, such as environment, human rights, financials, and etc. Furthermore, we continuously support our suppliers to build mutual competitive edge and growth.

Supply Chain Management Strategy and Five Criteria

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    Economic

    We secure an all-encompassing competitive edge in cost, delivery, quality, technology, and human resources in order to maximize synergy, speed, and efficiency with our suppliers and create a corporate ecosystem that enables sustainable growth.

  •  

    Social

    We request that international standards and regulations be abided by in the areas of human rights management, work environment, ethics, and conflict mineral issues with an aim to build an open and transparent management accountability system that engages all stakeholders along the supply chain.

  •  

    Environmental

    We work solely with Eco Partner-certified suppliers so that we can assess and manage the environmental impact that may occur in their components, raw materials, and manufacturing process.

 
<h3> Creating value through Sustainable management info-graph</h3> <ul> <li>List 1) Cost competitiveness (Economic).</li> <li>List 2) On time delivery (Economic).</li> <li>List 3) Supplier competitiveness (Economics, Social, Environmental).</li> <li>List 4) Response to Risk (Economics, Social, Environmental).</li> <li>List 5) Human resources capacity (Economic)</li> </ul>
This image describe supply chain management strategy and five criteria additional explanation info-graph in sustainability supply chain.

Supplier Operation

At Samsung, we endeavor to build strategic partnerships with top-performing suppliers based on mutual trust. This is why we adopt a fair and transparent process in operating our supplier registration system for new suppliers while performing annual assessments to assist our suppliers in reinforcing their competitive edge and minimizing relevant risks.
Any company who is willing to bring your differentiated technological capability to the table and wishes to do business with Samsung can post their new business proposals on our procurement portal( www.secbuy.com ) anytime. Our International Procurement Center (IPC) serves as the procurement hub, and the IPC enables us to identify outstanding suppliers in strategically important regions across the globe.

Key Evaluation Items of Our New Supplier Registration Program

 
Environment and Safety
Request suppliers to satisfy the criteria set in 22 articles, spanning occupational safety, fire prevention equipment, occupational health, hazardous substances, and environmental facility.
Eight mandatory compliance items : Fire prevention equipment, hazards and waste, sewage and wastewater facility, etc.
 
Labor and Human Rights
Perform mandatory on-site audits on 20 articles, including voluntary work, compliance with work hour regulations, and ban on discrimination.
Three mandatory compliance items : Ban on child labor, guarantee minimum wage, and ban on inhumane treatment.
 
Eco-Partner
Conduct reviews on product environmental policy, education & training and the use of hazardous substances.
Conduct business solely with Eco-Partner-certified suppliers.

Comprehensive Evaluation Process

Comprehensive evaluation process(Year-round evaluation, self-improvement, evaluation, follow-up management) image of info-graph in supply chain.

Partner Collaboration Programs

To live by our business philosophy that ‘our competitive edge at Samsung Electronics comes from the competitive edge of our suppliers’, we further push the boundary of our win-win management initiatives to include both domestic and overseas suppliers. We provide a wide array of programs to support funding, education, and innovation to ensure that our suppliers become globally-competitive.

  • This image describe funding in partner collaboration programs This image describe funding in partner collaboration programs
    • KRW 822.8billion
    • investment in the Win-Win Cooperation Fund

    Funding

    Create funds valued at KRW 1 trillion with commercial banks

  • This image describe employee capacity-building in partner collaboration programs This image describe employee capacity-building in partner collaboration programs
    • 16,209 Persons
    • Attendees of supplier training

    Employee Capacity-Building

    Provide leadership, job expertise, global and other courses by using our supplier-only training facility

  • This image describe innovation initiatives in partner collaboration programs This image describe innovation initiatives in partner collaboration programs
    • 487 companies
    • Suppliers that received Smart Factory support

    Innovation Initiatives

    Plan to assist nearly 1,000 suppliers as well as SMEs without business relationships with Samsung across the nation in improving their manufacturing capacity

[2019 Outcomes of Our Key Win-Win Programs]

* We assist our 1st-tier and 2nd-tier suppliers in voicing their grievances through our direct phone line (+82-80-200-3300), via e-mail (ssvoc@samsung.com), through an online whistle-blowing system on the Win-Win Cooperation Portal (www.secbuy.com), with on-site supplier consultations, and through various exchange meetings.

Supplier Work Environment

At Samsung, we fully take on our responsibility in advancing human rights management along the entire supply chain, abide by international human rights agreements to guarantee workplace safety and comply with the code of conduct set by theResponsible Business Alliance (RBA). We regularly monitor all our suppliers in accordance with EICC’s verification standards to identify issues and make necessary improvements. While we encourage our 1st-tier suppliers to create a safe workplace, such commitment to workplace safety extends to our 2nd-tier suppliers by way of 1st-tier suppliers. In doing so, we contribute to building a sound ecosystem across our supply chain.

Supplier Work Environment
<h3>Suuplier Work Environment</h3><dl> <li>self-assessment</li> <li>All 1st-tier supplier conduct annual self-assessments.</li></dl><dl> <li>On-site audits</li> <li>Critical suppliers are selected in consideration of transaction volume and self-assessment outcomes, and they receive on-site audits</li> <li>Year-round and special audits are performed on the employment of apprentices and student workers during the vacation period</li></dl><dl> <li>Third-party audits</li> <li>A RBA-certified auditor performs verifications on suppliers selected randomly</li> <li>Improvement tasks identified as a resdlt of audit outcomes are implemented within three months</li></dl>

Smelter and Refiner in Samsung Electronics' Supply Chain

Samsung Electronics operates a mineral management system based on ''OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas', and manages smelters in the supply chain through suppliers we work with.
We are actively sharing the smelter list with various stakeholders, including our customers.
Additionally, we encourage suppliers to partner with smelters certified by the RMAP (Responsible Minerals Assurance Process), and require uncertified smelters in our supply chain to become certified by the RMAP.

Smelter and Refiner List

(As of the end of Dec., 2019)

Certification Completed Certification in Progress Total
Tantalum (Ta) 40 - 40
Tin (Sn) 76 - 76
Tungsten (W) 41 - 41
Gold (Au) 104 - 104
※Cobalt(Co) - - 30
Smelter list 361KB
PDF Download ⤓

Supplier Responsibility

The products and services offered by Samsung Electronics are a result of the dedication and effort of all our suppliers in the supply chain. Samsung Electronics and our suppliers are responsible for the sustainable satisfaction of our customers and civil society. Also, we promise to take full responsibility of the supply chain based on trust and sincerity for the best value.

Supplier list    
Show List

* Listed in order of name of suppliers in 80% of Samsung Electronics’ transaction volume who agreed to be disclosed.

SUPPLIER ADDRESS

AAC Technologies Holdings Inc.

No.3 Changcao Road, Hi-Tech Industrial Zone, Wujin, Changzhou City,

Jiangsu Province, China

Lot K4-2F, Que Vo Ip Bac Ninh City, Bac Ninh, Vietnam

Yuhang Road., Shuyang Economic Develop Suqian City, Jiangsu Province, China

Adeka Corporation

70, Wanjusandan 2-Ro, Bongdong-Eup, Wanju-Gun, Jeollabuk-Do, Korea

Advantest Corp.

140, 3 Samgongdan 6-Ro, Seobuk-Gu, Cheonan-Si, Chungcheongnam-Do, Korea

Rm.1215, Luneng Plaza, No.18 Taigu Road. Waigaoqiao Free Trade Zone, Shanghai, China

Shin-Marunouchi Center Building, 1-6-2 Marunouchi, Chiyoda-Ku, Tokyo, Japan

Air Products and Chemicals Inc.

7201 Hamilton Boulevard, Allentown, PA, United States

3, Nongseo-Ro, 46Beon-Gil, Giheung-Gu, Yongin-Si, Gyunggi-Do, Korea

Alps Electric Co., Ltd.

33 (Jangduk-Dong) Hanamsandan 5 Byunro, Gwangsan-Gu, Gwangju, Korea

1-7, Yukigaya-Otsukamachi, Ota-Ku, Tokyo, Japan

Applied Materials Inc.

(5F, Korea Design Center Bldg.,Yatap-Dong) 322, Yanghyeon-Ro, Bundang-Gu,

Seongnam-Si, Gyeonggi-Do, Korea

8 Upper Changi North Road, 506906, Singapore

3050 Bowers Avenul, Santa Clara, CA, United States

ASM International N.V.

(1Dong, Chungnam Technopark Cheonan Valley)136, Jiksan-Ro,Jiksan-Eup, Seobuk-Gu, Cheonan-Si, Chungcheongnam-Do, Korea

3440 E University Phoenix Drive, Phoenix, AZ, United States

ASM Lithography Inc.

Suites 3704-3706 37/F Tower Two Times Square, 1 Matheson Street Causeway Bay,

Hong Kong

25, 5Gil, Samsung 1 Ro, Hwasung-Si, Gyeonggi-Do, Korea

2650 W. Geronimo Place Chandler, AZ, United States

AU Optronics Corp.

1 Li-Hsin Road.2, Science-Based Industrial Park, Hsinchu Taiwan

5 Li-Hsin Road.6, Science-Based Industrial Park, Hsinchu Taiwan

Avago Technologies Ltd.

No 1 Yishun Avenue 7, Singapore

Biel Crystal Manufactory Ltd.

Block A, 10/F., A1-A5 Mei Hing Ind. Bldg.,16-18 Hing Yip Street, Kwun Tong,

Kowloon, Hong Kong

BOE Technology Group Co., Ltd.

No. 118 Jinghaiyi Road., Bda, Beijing, China

Bujeon Electronics Co., Ltd.

Phuong Lieu Commune-Que Vo District, Bac Ninh, Vietnam

No 903, 3/2 Street, Phu Xa Commune, Thai Nguyen City, Thai Nguyen Province, Vietnam

BYD Co., Ltd.

No.3001, Baohe Road, Baolong Industrial Town, Longgang, Shenzhen, China

Xiangshui River, Economic Development Zone, Daya Bay, Huizhou, Guangdong, China

No 2, Yadi Road, The New-Type Industrial Park, Xi'an National Hi-Tech

Industrial Development Zone, China

CammSys Corp.

Ba Thien Industrial, Ba Hien Commune, Binh Xuyen Distric Vinh Phuc Province, Vietnam

Canon Inc.

(9F,10F),607, Teheran-Ro, Gangnam-Gu, Seoul, Korea

One Canon Park, Melville, NY, United States

30-2, Shimomaruko 3-Chome, Ohta-Ku, Tokyo 146-8501, Japan

Cirrus Logic Inc.

7B Nightingale Way, Quartermile Edinburgh, United Kingdom

Coretronic Corp.

No.2-1.Nanke 6Th.Road, Tainan Science-Based Industrial Park Tainan County, Taiwan

Corning Inc.

One Riverfront Plaza Corning, NY, United States

Daeduck Electronics Co., Ltd.

(Jeongwang-Dong), 335, Somanggongwon-Ro, Gyeonggi-Do, Korea

Daeyoung Electronics Co., Ltd.

Lot HT-2-1, Road D2, Ho Chi Minh Hi-Tech Park, Tang Nhon Phu B Ward, Dist. 9, Vietnam

Daifuku Co., Ltd.

14, Dongtanjiseong-Ro, Hwaseong-So, Gyeonggi-Do, Korea

7406 West Detroit Street, Chandler, AZ, United States

4-103, Komakihara, Komaki, Aichi, Japan

DAP Corporation

474-22 Anseongmachum-Road, Miyang-Myeon, Anseong-City, Kyunggi-Do, Korea

Dongjin Semichem Co., Ltd.

644, Baekbeom-Ro, Seo-Gu, Incheon, Korea

Dongwoo Fine-Chem Co., Ltd.

132, Yakchon-Ro, Iksan-Si, Jeollabuk-Do, Korea

Dongyang E&P Inc.

76, Jinwisandanro, Jinwi-Myeon, Pyeongtaek-Si, Gyeonggi-Do, Korea

Nhan Hoa Ward-My Hao District-Hung Yen Province, Vietnam

Doosung Tech

Luong Son Ip, Hoa Son Commune Hoa Binh Luong Son, Vietnam

Dr Enc SA de CV

Manufacturas 622 Santa Rosa Jauregui Queretaro, Mexico

Dreamtech Co., Ltd.

No.100, Huu Nghi Road, Vsip Bac Ninh Tu Son Town, Bac Ninh, Vietnam

Edwards Limited

96, 3 Gongdan 1-Ro, Seobuk-Gu, Cheonan-Si, Chungcheongnam-Do, Korea

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