Supplier Management Policy


PTC actively invested in the mutual development of IC design and supply chain manufacturing and established a long-term cooperative relationship with suppliers to coexist and prosper. In addition to focus on quality, delivery, and service, PTC also pays attention to the sustainable development of the supply chain and environmental protection.

 


Supplier Selection and Evaluation Criteria Quality System Requirements: Princeton Technology Corp. (PTC) requires all direct material suppliers to be ISO 9001 certified. Suppliers for automotive products must additionally hold IATF 16949 (Automotive Quality Management System) certification.

Environmental and Occupational Health & Safety (EHS): We require suppliers to fully cooperate with our environmental and occupational safety improvement initiatives. Priority is given to vendors certified with ISO 14001 (Environmental Management System) and ISO 45001 (Occupational Health and Safety Management System).

Verification and Ethics: Upon meeting the above requirements, a comprehensive review of the supplier's systems and engineering data is conducted. We ensure that suppliers strictly adhere to business ethics and fulfill their social responsibilities.

On-site Audit and Approval: On-site audits are arranged to verify compliance. Only after successful verification can a vendor be officially recognized as an Approved Supplier of PTC.


PTC schedules annual audit plans for approved suppliers. In practice, suppliers must conduct self-audits based on the audit questionnaire items provided by PTC, which include quality system compliance, production control requirements, and environmental protection regarding materials used, as well as business ethics and social responsibility. In the future, we will continue to refine and incorporate more ESG-oriented evaluation items to ensure that suppliers meet PTC's requirements and align with sustainable development. Upon receiving the data, PTC performs an initial review and, when necessary, requests supporting evidence or conducts on-site audits to ensure data reliability. The 2024 audit results all met company requirements, and no suppliers were disqualified due to issues such as the environment, human rights, or occupational safety.

Additionally, PTC conducts annual performance evaluations for suppliers with transactions within the year, covering items such as quality, delivery, service, and development. The evaluation data serves as a reference for subsequent requests for supplier improvement and procurement allocation. Existing suppliers must achieve a Grade B or above; those with a Grade C are required to make improvements, while those with a Grade D will have their supplier qualification revoked. In 2024, a total of 29 suppliers were evaluated, with 93.1% of the manufacturers achieving a Grade B or above.

          

To promote the local economy and reduce the environmental impact of the supply chain, Princeton Technology Corp. (PTC) is committed to prioritizing the procurement of local raw materials and services to foster regional economic prosperity and sustainable development. At the Company's major operating sites, the local procurement proportion in Taiwan has maintained an average of over 92% over the past three years. Additionally, the average for the China region over the past three years is approximately 85%. Looking forward, PTC will actively seek and support high-quality local suppliers to increase the procurement volume of local raw materials and services, achieving mutual growth for both the enterprise and society.

Regarding the issue of conflict minerals, Princeton Technology Corp. has communicated with and required suppliers to avoid using minerals mined under conditions of armed conflict, human rights abuses, illegal mining, or poor working environments, in order to protect human rights and fulfill social responsibilities.

The Company requires suppliers annually to guarantee that the sources of minerals such as Tantalum (Ta), Tin (Sn), Gold (Au), Tungsten (W), and Cobalt (Co) are legitimate. We verify Conflict Minerals Reporting Templates (CMRT) and Extended Minerals Reporting Templates (EMRT), requiring suppliers to disclose information on their procurement of conflict minerals and identify the sources of their smelters.
In 2024, PTC conducted CMRT and EMRT due diligence for 27 suppliers involved in key transactions, achieving a 100% completion rate.

To ensure product quality responsibility and safety, PTC passed the ISO 9001 Quality Management System certification and obtained the certificate in 2023. We require all raw materials and products used and provided by suppliers to comply with the EU RoHS (Restriction of Hazardous Substances Directive) and REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) regulations. All materials used in PTC products have undergone testing, and the regulations that manufacturers are required to comply with are included in the "Declaration of Non-Use of Prohibited Substances." Furthermore, 100% of the key suppliers surveyed have met these requirements. These measures ensure that our products pose no risks to customer health and safety. In 2024, there were no incidents of non-compliance with regulations or voluntary codes concerning the health and safety of products and services.

To implement hazardous substance management, PTC not only requires suppliers annually to guarantee compliance with RoHS, REACH, and customer-mandated regulations but also requests relevant test reports based on the product Bill of Materials (BOM) to ensure effective management. 100% of the Company's products comply with regulatory requirements. In 2024, there were no incidents of non-compliance with regulations or voluntary codes concerning marketing communications (including advertising, promotion, and sponsorship).