Supply Chain Management
The main product produced by the company is Lead Frame, primarily made of copper or iron-nickel alloys through stamping and then plating (or proceed pre-plating before stamping process). Products are sold to IDM customers or compound outsourcing facilities producing discrete elements such as Rectifier Diode or Power transistor etc. Products are mainly sold to IDM customers specializing in power components such as rectifiers and power transistors, as well as packaging subcontractors. The main raw materials in the upstream are metal materials such as copper and iron-nickel alloys, and the fluctuation of the material cost and price will affect the company’s operation and profit as well. Since the trading of metal materials is an open and transparent market and the company considered the fluctuation of current raw material price in pricing, so the operating risk is under control. The major customers in downstream are international semiconductor IDM factories or professional packaging foundries, which produce customized products in response to customer needs. The requirements for product innovation, development and launch capabilities and speed
are market competition risks faced by the Company’s industry. There is the relationship between upstream, midstream and downstream of JIH LIN supply chain:.png)
Local Purchasing
As a global citizen, JLT declares that we do not accept the use of metals from conflict minerals, and we require our suppliers to adhere to this conflict minerals purchasing policy. JLT is committed to working closely with all suppliers to create superior and more competitive products, creating a win-win approach in supply chain management. By being part of a green supply chain, we aim to reduce supply chain risks. In 2024, our primary raw material purchasinh was copper materials, accounting for 90.91% of the total purchasing amount. JLT had transactions with a total of 288 suppliers in 2024. Details of the purchasing are as follows:
| Types of Contracts | Area |
2022 |
2023 |
2024 |
|||
|---|---|---|---|---|---|---|---|
| Number of suppliers | The percentage of the total purchase amount（%） | Number of suppliers | The percentage of the total purchase amount（%） | Number of suppliers | The percentage of the total purchase amount（%） | ||
| Contracting and Services | Internal |
84 |
1.5% |
72 |
2.0% |
69 |
0.7% |
| External |
1 |
0.1% |
1 |
0.1% |
1 |
- | |
| Raw Material | Internal |
158 |
5.2% |
145 |
6.4% |
138 |
6.2% |
| External |
10 |
92.4% |
11 |
87.9% |
11 |
91.8% |
|
| Building and Equipment | Internal |
70 |
0.6% |
61 |
2.5% |
63 |
1.0% |
| External |
2 |
0.22% |
5 |
1.1% |
6 |
0.3% |
|
|
Total |
325 |
100.0% |
295 |
100.0% |
288 |
100.0% |
|
|
Note: 1. The term internal refer to Taiwan；The term external refers to regions outside of Taiwan, such as Japan, Korea, Europe, and the United States. 2. The raw materials are mostly specified by the customers, such as copper materials and chemicals. |
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Supplier Evaluation
While striving to become a leading provider of semiconductor-related materials, JIH LIN deeply recognizes that suppliers are our strongest support and partners. In order for both parties to grow together and achieve sustainable operations, the company has established an evaluation system for suppliers, selecting manufacturers whose quality and technical capabilities meet the requirements of JLT to ensure product quality standards.
In order to establish a supply chain that protects the environment, human rights, safety, health, and promotes sustainable development, the company continued to implement the IATF-16949 management system in 2024. We have established regular monitoring items for suppliers and quantified their performance. Finally, external audits are conducted to assess compliance with standard requirements. We also evaluate and screen new suppliers based on the request of ISO 14001 environmental management system.
All copper material suppliers have achieved certification and evaluation in accordance with ISO 9001 purchase control procedures and ISO 14001 environmental management systems. They have consistently received a rating of B grade or higher in the annual supplier evaluations. As for chemical material and other raw material suppliers, all of them have signed a Material Compliance Commitment. Among these suppliers, 9（approximately 43%） have received ISO 14001 environmental management system certification. Suppliers who have not obtained ISO 14001 certification will be evaluated based on the supplier assessment form outlined in our company's Supplier Evaluation Procedure.
In order to manage the sourcing of chemical substances, all chemical suppliers we collaborate with have signed the “Supplier Management Inspection Form” and provided environmental data. This ensures that our partner companies comply with environmental hazardous substance management procedures and control standards. We will not conduct an audit on them If suppliers sign the “Supplier Executive Certificate of Compliance.”
Through supplier evaluation, we strengthen supervision, provide guidance for improvement measures, and encourage voluntary participation in audit actions. For those with unsatisfactory audit results, necessary guidance and assistance are provided. In cases where supplier can’t act in compliance, transaction volumes may be reduced or transactions terminated. In 2024, none of the suppliers we collaborated with were placed on temporary hold due to quality issues or delayed deliveries, nor did any pose significant or potential environmental impacts.
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