Applied Materials Launches Sustainable Supply Chain Initiative

  • SuCCESS2030 (Environmental and Social Sustainabilitysupply chaincertification) yesApplied MaterialsTen-year roadmap for companies to create more sustainable supply chains

  • Applied Materials today announced a set of Environmental, Social and Corporate Governance (ESG) goals and targets that are a key part of the company’s overall commitment to achieving them

  • Key supplier commitments are guided by shared goals and strategies to reduce emissions, conserve resources, and promote progress in ethics, human rights, diversity and inclusion

SANTA CLARA, Calif., July 21, 2020 – Applied Materials today announced a major new initiative to build a more sustainable and fair supply chain for semiconductor and Display manufacturing.

SuCCESS2030 (Supply Chain Certification for Environmental and Social Sustainability) will optimize the selection, procurement, packaging, warehousing, transportation and recycling of materials and spare parts to reduce energy consumption, reduce emissions and conserve resources . The program also works to promote the advancement of ethics, human rights, diversity and inclusion at all stages of the supply chain.

“As part of Applied’s commitment to sustainability, we are expanding our focus from our own business to the entire supply chain,” said Stephen Gustafson, vice president of operations and aftermarket quality at Applied Materials. “We believe that a positive impact on the supply chain will Amplified across the industry. Thank you to our suppliers for working with us on this initiative.”

“The SuCCESS2030 plan announced today leads the industry, aligns with Intel’s 2030 corporate responsibility goals, and is at the heart of building a responsible and sustainable end-to-end supply chain for the future semiconductor industry,” said Shaheen Dayal, vice president of Intel Fab Technology Procurement. . We face a wide range of challenges that need to be addressed, which makes our collective sense of urgency stronger. These challenges cannot be overcome alone, but only through the collaboration of major organizations, industries, and countries. response.”

Under the SuCCESS program, Applied Materials’ supplier performance and capability assessments will in future require suppliers to fulfill the following shared commitments:

Reduce supply chain carbon emissions through multimodal transport, reduce industry reliance on air transport, and set a medium-term target of 15% emissions reductions by 2024.

· Supply chain transition to recycled content packaging, with the goal of expanding the proportion of recycled content packaging to 80% by the end of 2023

Completely phase out phosphate pretreatment of metal surfaces by 2024.

· Develop a diversity and inclusion strategy that incorporates key metrics and meaningful actions to achieve and significantly increase by 2024 the percentage of spending by businesses that cater to women and minorities, as well as increase the representation of women and other minority groups and work with our industry associations to significantly increase the industry’s diverse talent pool by 2030.

· Comply with the Responsible Business Alliance Code of Conduct 6.0 and Applied Materials’ Standards of Business Conduct and Human Rights Policy.

The program is part of Applied Materials’ overall commitment to ESG, and the company’s president and CEO Gary Dixon outlined the ESG principles and metrics under this commitment in a keynote speech at the 50th SEMICON West (click here See related content here).

The SuCCESS program underpins Applied’s ESG supply chain strategy, including support for ethical labor practices, responsible mineral sourcing, and other programs aligned with industry principles such as the RBA (Responsible Business Alliance) Code of Conduct, SEMI Guidelines, and Applied Materials Company Standards of Business Conduct.

Applied Materials will manage the program through the newly created SuCCESS office, which will conduct metrics monitoring, compliance audits and training, and coordinate with participating companies. Beginning in 2021, Applied Materials will also add a new “Sustainability” category to its annual Supplier Excellence Awards event.

Key suppliers from around the world who have joined and collaborated to support Applied Materials’ SuCCESS program include: Advanced Energy, Benchmark Electronics, Inc., Foxsemicon Integrated Technology Inc., NGK INSULATORS, LTD, Ultra Clean Holdings, Inc. and VAT.

Reviews from Supply Chain Manufacturers

“Applied’s SuCCESS program aligns with our long-term commitment to conserving resources by reducing energy and water use and improving recycling practices,” said Yuval Wasserman, CEO of Advanced Energy. “We were the first to participate in this Applied Materials initiative. , which is in line with our ISO 14001 environmental management standard compliance work.”

Jeff Benck, President and CEO of Benchmark, said, “Our organization is committed to providing a safe and respectful workplace for our employees and conducting business in a socially responsible and sustainable manner. Applied Materials is helping the semiconductor supply chain further With a focus on resource conservation and conservation, we are very excited to contribute to the SuCCESS program.”

Kevin Chiu, CEO and President of Foxsemicon Integrated Technology, said: “We welcome any measures that help us reduce our carbon footprint. We will enrich our logistics portfolio and expand the Applied Materials’ SuCCESS program provides support.”

Hiroto Matsuda, Senior Vice President of NGK INSULATORS, LTD. and Vice President of the Process Technology Business Group, said: “Our sustainability mission is to protect the planet’s environment, promote industry development, create a better energy future, and contribute to the well-being and well-being of people around the world. Happiness contributes. We just celebrated our 101st anniversary recently and we unanimously support Applied’s SuCCESS program.”

Jim Scholhamer, CEO of Ultra Clean Holdings, said: “Supply chain resilience is not just about speed of operations and the ability to deliver on time. Today’s supply chain leaders recognize that we are collectively responsible for environmental stewardship, which requires us to bring together our ability to innovate. , to overcome the challenges we all face. We thank Applied Materials for leading this initiative.”

“We are committed to using natural resources sustainably to reduce our negative impact on the environment,” said Mike Allison, CEO of VAT. “Applied Materials’ SuCCESS program is an important industry-wide call to action to continue to be proactive and responsible. supply chain practices.”

About Applied Materials

Applied Materials (NASDAQ: AMAT), a leader in materials engineering solutions, is behind nearly every new chip and advanced display produced worldwide. With technologies that can change materials at the atomic level under production-scale conditions, we enable our customers to make it possible. Applied Materials believes that our innovations will drive the future of advanced technology.

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