AMD Partners With Suppliers to Advance Human Rights and Environmental Sustainability

Originally published in AMD 2021-22 Corporate Responsibility Report

With an estimated 76 percent 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 make a significant impact on advancing human rights, fair labor practices and environmental progress.

Over the last few years, our industry has experienced unprecedented demand for semiconductor technology, and this requires a strong supply chain. The link between resilient and responsible supply chains is clear. Consequently, stakeholder expectations for transparency and data-driven results remain a focus in 2022. Together, with our supply chain and industry partners, AMD embraces the opportunity to help drive social and environmental progress in the supply chain.

Although we adhere to the highest standards, we know the social and environmental risks in the supply chain are persistent and real. With the growing number of electronic devices being used globally comes the responsibility to ensure that we are doing the right thing and conducting our business ethically. We are committed to delivering high-quality products and helping ensure that working conditions throughout our supply chain are safe, workers are treated with respect and dignity and the manufacturing processes of our products are environmentally responsible.

Our Approach

As AMD is a fabless semiconductor company, our manufacturing operations depend on a carefully selected network of suppliers. The scope of the AMD Supply Chain Responsibility program encompasses the manufacturing of our products by suppliers, located in Asia, Europe and the United States, and 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 across 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 fabricated into chips, assembled into a package, tested and shipped as a semiconductor ready to be used by our customers. The majority – approximately 61 percent – of our supplier spend is with foundries that supply these wafers. Another 26 percent of our spend is with factories that manufacture a range of inputs needed to create our products. This concentration of supplier spend allows us to take a long-term approach with key suppliers, which is paramount 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 and conditions for the procurement of goods and services require conformance to applicable laws and regulations, and we reinforce our expectations regarding responsible social, ethical and environmental conduct. Training is made available to suppliers through the Responsible Business Alliance (RBA)’s 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 drive a positive impact for the people who work across our value chain and the planet which we all share. Our goals include:

• 100 percent of AMD supplier manufacturing² factories to have a Responsible Business Alliance (RBA) audit or equivalent by 2025.
  • ON TRACK: Between 2020 and 2021, 64 percent of these supplier factories had an RBA audit.
• 80 percent of AMD manufacturing suppliers by spend to participate in a capacity-building activity by 2025.
  • ON TRACK: 61 percent of these suppliers by spend participated in capacity-building activities in 2021, including ethical recruitment training.
• 100 percent of AMD manufacturing suppliers have public emissions reduction goals by 2025.
  • ON TRACK: In 2021, 74 percent of our manufacturing suppliers have public GHG goals.
• 80 percent of AMD manufacturing suppliers source renewable energy by 2025.
  • ON TRACK: In 2021, 74 percent of our manufacturing suppliers sourced renewable energy.

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

Footnotes:

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