vpic1com

The procurement strategy comprehensively considers factors such as supplier quality, price, delivery schedules, and cooperation to select suitable suppliers. Since these raw material suppliers are not exclusive and there are at least two suppliers available for the same materials, the supply sources are relatively sufficient, thus avoiding the risk of over-concentration in procurement. Since 2016, including both customer bulk purchases and the Company’s own procurement of raw materials and parts, the proportion of local procurement has gradually increased from below 50% to 80–90%. In recent years, due to global climate change potentially causing disasters such as typhoons, droughts, floods, and disruptions in transportation and communications, the Company requires major raw material suppliers to prepare contingency plans to minimize the impact of incidents that may disrupt the Company’s supply. Suppliers are also required to manage their own suppliers accordingly and to comply with the Company’s integrity policy.