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Supply Chain Management

Giga Computing views suppliers as long-term partners. In addition to essential criteria such as competitive quality, technology, delivery, and cost, in the future, Giga Computing will place greater emphasis on suppliers' adherence to environmental management systems, occupational safety and health systems, CSR, and hazardous substances. We are committed to selecting partners that meet sustainable procurement standards.

 

Supplier Management Policy

Giga Computing follows the "Sustainable Procurement Guidelines" of its parent company, GIGABYTE. The Company refers to the "RBA Code of Conduct" and evaluates risks based on four key management aspects and four zero-tolerance regulations.

 

Four Management Aspects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Four Zero-tolerance Regulations

X Child labor

X Forced/Prison labor

X Discharge of untreated toxic and hazardous substances or materials

X Behaviors that cause immediate injury to employees

 

 

Overview of the Supply Chain

In 2024, Giga Computing HQ and GIGAIPC collaborated with 421 suppliers globally. Suppliers were categorized into two major groups based on procurement targets: raw material suppliers and non-raw material (miscellaneous/engineering) suppliers. In 2024, procurement spending was dominated by raw material suppliers, totaling approximately NTD 115.3 billion and accounting for 99.60% of total procurement spending. Additionally, in 2024, Giga Computing HQ and GIGAIPC's procurement from domestic suppliers accounted for 83.14% of the total number of suppliers, with domestic procurement expenditures comprising 90.70% of the total. As for the U.S. subsidiary, in 2024 only a small amount, approximately 0.29%, was procured from local suppliers; the remainder was shipped from Giga Computing HQ to the local site. Therefore, this year's local procurement ratio excludes the U.S. subsidiary from the data calculation to avoid deviation.

Existing Partners

Each quarter, all suppliers will be evaluated based on quality, cost, delivery time, service, and technical capability. Suppliers with lower scores will undergo annual quality and RBA spot audits, particularly focusing on categories such as chassis, power supplies, and PCBs. For suppliers identified as medium or high risk, we will provide corrective actions and measures, requiring them to implement improvements within 90 days. If no improvement is made, we will gradually reduce procurement from these suppliers, ultimately phasing out those that are unsuitable. In 2024, RBA audits were conducted on 42 suppliers, of which over 83.33% performed well (scoring above 85), and the overall average score was 92.60. In the 2024 overall supplier audits results, no medium- or high-risk suppliers were identified.

Newly Introduced Supplier

Implement procurement management based on a green supply chain, and evaluate suppliers according to the following basic principles:

  • Giga Computing's suppliers must fully comply with local laws and regulations and define their risk control mechanisms (low/medium/high risk).
  • Giga Computing's suppliers should establish environmental, employee health and safety, and hazardous substance management systems. (Supplier environmental safety and health management status survey and supplier environmental safety score evaluation)
  • Comply with Giga Computing's Harmful Chemical Substances Requirement (HCSR) and the REACH Substances of Very High Concern (SVHC) guidelines.

 

 

Conflict Minerals

Tungsten, tin, tantalum, gold, cobalt, and mica are essential raw materials for electronic products. However, if these minerals are sourced from regions where forced labor, or armed conflict occurs, they are classified as conflict minerals, which oppress and harm local human rights and living conditions. Based on its commitment to respecting international human rights and fulfilling CSR, Giga Computing avoids using conflict minerals in its products. The Company conducts conflict minerals usage surveys with first-tier suppliers using the latest Conflict Minerals Reporting Template (CMRT 6.4) and Extended Minerals Reporting Template (EMRT 1.3). According to the suppliers' responses, Giga Computing references the qualified smelters published on the RMI website and the prohibited smelters indicated by customer feedback to manage its supply chain. If any use of non-compliant smelters is discovered, the supplier is immediately notified to make improvements and is placed on a watch list. If the supplier fails to comply, Giga Computing will notify the relevant internal units to evaluate and potentially prohibit the use of that supplier. In 2024, Giga Computing initiated a survey of 243 first-tier suppliers, with a response rate of 97.53% for the CMRT and 96.30% for the EMRT; suppliers that did not respond are continuously tracked and evaluated for the feasibility of discontinuation. In the future, Giga Computing will continue to initiate annual surveys of first-tier suppliers based on the latest versions of the CMRT and EMRT published on the Responsible Minerals Initiative website to update the smelter list.

 

3TG Metal

We further conduct statistical analysis of the CMRT forms submitted by suppliers to understand each supplier's actual management of conflict minerals. Annual statistics are divided into two main aspects: the statistical analysis of responses from all suppliers and, among those, the review of the completeness of management policies for highrisk suppliers confirmed to use 3TG metals in products and processes. In 2024, Giga Computing identified 77 first-tier suppliers using 3TG metals from high-risk areas, and over 95% of these suppliers have established conflict minerals sourcing policies.

 

Overall Status of Suppliers' Responses to the Conflict Minerals Survey

 

 

Management Status of Suppliers Using 3TG Metals Sourced from Covered CountriesNote

 

Note: Covered Countries include the DRC, the Republic of the Congo, the Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia, Angola, and other countries.

 

Cobalt and Mica

In the 2024 survey of first-tier suppliers, 234 suppliers responded regarding their use of cobalt and mica. The results show that 33 suppliers actually used minerals from high-risk areas in their products or processes, and all of them conducted due diligence related to conflict minerals with their suppliers. Although the current use of cobalt and mica is not as widespread as that of 3TG metals, we will continue to conduct investigations to eliminate human rights abuses caused by conflict minerals.

 

Click here to view the List of Smelters of GIGABYTE Supply Chain

 

Giga Computing views suppliers as long-term partners. In addition to essential criteria such as competitive quality, technology, delivery, and cost, in the future, Giga Computing will place greater emphasis on suppliers' adherence to environmental management systems, occupational safety and health systems, CSR, and hazardous substances. We are committed to selecting partners that meet sustainable procurement standards.

 

Supplier Management Policy

Giga Computing follows the "Sustainable Procurement Guidelines" of its parent company, GIGABYTE. The Company refers to the "RBA Code of Conduct" and evaluates risks based on four key management aspects and four zero-tolerance regulations.

 

Four Management Aspects

 

Four Zero-tolerance Regulations

X Child labor

X Forced/Prison labor

X Discharge of untreated toxic and hazardous substances or materials

X Behaviors that cause immediate injury to employees

 

Overview of the Supply Chain

In 2024, Giga Computing HQ and GIGAIPC collaborated with 421 suppliers globally. Suppliers were categorized into two major groups based on procurement targets: raw material suppliers and non-raw material (miscellaneous/engineering) suppliers. In 2024, procurement spending was dominated by raw material suppliers, totaling approximately NTD 115.3 billion and accounting for 99.60% of total procurement spending. Additionally, in 2024, Giga Computing HQ and GIGAIPC's procurement from domestic suppliers accounted for 83.14% of the total number of suppliers, with domestic procurement expenditures comprising 90.70% of the total. As for the U.S. subsidiary, in 2024 only a small amount, approximately 0.29%, was procured from local suppliers; the remainder was shipped from Giga Computing HQ to the local site. Therefore, this year's local procurement ratio excludes the U.S. subsidiary from the data calculation to avoid deviation.

Existing Partners

Each quarter, we evaluate suppliers on quality, cost, delivery, service, and technical capabilities, and we conduct regular RBA random audits, eliminating suppliers that do not meet our standards. In 2023, we audited a total of 42 suppliers, identifying 3 medium-risk suppliers and 1 high-risk supplier. All identified issues have been addressed, achieving a 100% improvement rate. In the RBA audits, over 90% of the suppliers scored well (with a score of 85 points and above), with an overall average score of 94.32.

Newly Introduced Supplier

Implement procurement management based on a green supply chain, and evaluate suppliers according to the following basic principles:

  • Giga Computing's suppliers must fully comply with local laws and regulations and define their risk control mechanisms (low/medium/high risk).
  • Giga Computing's suppliers should establish environmental, employee health and safety, and hazardous substance management systems. (Supplier environmental safety and health management status survey and supplier environmental safety score evaluation)
  • Comply with Giga Computing's Harmful Chemical Substances Requirement (HCSR) and the REACH Substances of Very High Concern (SVHC) guidelines.

 

Conflict Minerals

Tungsten, tin, tantalum, gold, cobalt, and mica are essential raw materials for electronic products. However, if these minerals are sourced from regions where forced labor, or armed conflict occurs, they are classified as conflict minerals, which oppress and harm local human rights and living conditions. Based on its commitment to respecting international human rights and fulfilling CSR, Giga Computing avoids using conflict minerals in its products. The Company conducts conflict minerals usage surveys with first-tier suppliers using the latest Conflict Minerals Reporting Template (CMRT 6.4) and Extended Minerals Reporting Template (EMRT 1.3). According to the suppliers' responses, Giga Computing references the qualified smelters published on the RMI website and the prohibited smelters indicated by customer feedback to manage its supply chain. If any use of non-compliant smelters is discovered, the supplier is immediately notified to make improvements and is placed on a watch list. If the supplier fails to comply, Giga Computing will notify the relevant internal units to evaluate and potentially prohibit the use of that supplier. In 2024, Giga Computing initiated a survey of 243 first-tier suppliers, with a response rate of 97.53% for the CMRT and 96.30% for the EMRT; suppliers that did not respond are continuously tracked and evaluated for the feasibility of discontinuation. In the future, Giga Computing will continue to initiate annual surveys of first-tier suppliers based on the latest versions of the CMRT and EMRT published on the Responsible Minerals Initiative website to update the smelter list.

 

3TG Metal

We further conduct statistical analysis of the CMRT forms submitted by suppliers to understand each supplier's actual management of conflict minerals. Annual statistics are divided into two main aspects: the statistical analysis of responses from all suppliers and, among those, the review of the completeness of management policies for highrisk suppliers confirmed to use 3TG metals in products and processes. In 2024, Giga Computing identified 77 first-tier suppliers using 3TG metals from high-risk areas, and over 95% of these suppliers have established conflict minerals sourcing policies.

 

Overall Status of Suppliers' Responses to the Conflict Minerals Survey

 

 

Management Status of Suppliers Using 3TG Metals Sourced from Covered CountriesNote

Note: Covered Countries include the DRC, the Republic of the Congo, the Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia, Angola, and other countries.

 

Cobalt and Mica

In the 2024 survey of first-tier suppliers, 234 suppliers responded regarding their use of cobalt and mica. The results show that 33 suppliers actually used minerals from high-risk areas in their products or processes, and all of them conducted due diligence related to conflict minerals with their suppliers. Although the current use of cobalt and mica is not as widespread as that of 3TG metals, we will continue to conduct investigations to eliminate human rights abuses caused by conflict minerals.

 

Click here to view the List of Smelters of GIGABYTE Supply Chain