2022 Sustainability Report
Material Topic: Supply Chain
The quality requirements for semiconductor materials are some of the highest in any manufacturing sector. As JSR pushes the boundaries of physics with the newest semiconductor structures, the slightest excursions in the quality of raw materials can have major impacts on JSR Micro’s products and customers’ performance. Keeping the supply chain functional through the extraordinary circumstances of the reporting period of the last two years has required a heightened level of focus.
New Formulated Cleans Supply Chain
Roll out of the formulated cleans facility in Oregon required a new dedicated supply chain. Prior to the rapid growth of the formulated cleans product offering, limited production of formulated cleans occurred at the Sunnyvale lithography factory. To accommodate the increased demands of the Oregon plant, numerous new suppliers had to be established. Many suppliers were interested in supporting the formulated cleans business but did not have the level of quality required. For example, although some suppliers were FDA certified, JSR’s requirements far exceed the quality requirements for human consumption. The formulated cleans supply chain must consistently deliver purity down to the level of parts per million. This level of sensitivity makes it possible to detect trace contamination from outside influences such as an undisclosed supplier pump change or the use of different tanker trucks. With these constraints in mind, a reliable formulated cleans supply chain has been established. JSR has built a strong relationship with suppliers, working together to advance the supply chain to a level that will satisfy the most discerning formulated cleans customers.
Robust Supply Chain Delivers Despite Global Challenges
JSR succeeded in making all customer deliveries throughout the reporting period. This was a notable achievement given supply chain volatility, which required significant adaptability. Raw material suppliers of both lithography and formulated cleans had, at times, lead times four times longer than normal. As a result, some orders were placed more than a year in advance in order to secure production materials. JSR drastically increased its volume of air freight to help fill demand gaps due to numerous delays with cargo ships and port access. Ground freight continued to be mostly reliable, but the ability to be flexible with changing customer demand became increasingly difficult to accommodate. Inventory management was significantly more important and the amount of “safety stock” was increased to ensure customer obligations were met. Supplier communication also became much more critical and frequent. Given JSR’s well-established relationships with preferred suppliers, and the support of its dedicated employees, it was possible to meet these global challenges.
Sustainability and Supplier Diversity
There are continuing trends in the semiconductor industry toward a higher level of sustainability in supply chains. Customer audits now consistently include information requests on the topic of reduced impact throughout the supply chain. JSR recognizes that supplier diversity is crucial to a robust supply chain. Strong relationships with our suppliers support our commitment to quality and sustainability. JSR fosters mutually beneficial connections with diverse suppliers by engaging them in the procurement process.
Diverse suppliers are defined as organizations that are 51% or more owned and operated by a person or persons belonging to one of our designated diverse groups: Women, LGBTQIA+, Marginalized Groups (African American, Asian Pacific Islander American, Hispanic American, Native American, among others), Veterans, and People with Disabilities. Whenever possible, we are excited to bring these diverse groups to our family of suppliers.
This year, we plan to benchmark our current supply chain vendors as we bring awareness to the need for a more diverse value chain. JSR is also committed to establishing a certification program geared toward financing the attainment of third-party supplier certifications.
414-1 New suppliers that were screened using social criteria
No new suppliers were onboarded during the reporting period.