Supply Chain

Basic policy of procurement

Most of our production is outsourced to third parties under fab-lite strategy. It is therefore crucial that we establish a good partnership with suppliers and manufacturing subcontractors to ensure that our highly sophisticated, high value-added products are manufactured properly to meet the requirements of customers and delivered to them in a timely manner. In this respect, we are committed to maintaining a close contact and conducting fair trade with each of these companies to win their trust and construct solid relationships with all of them. We are intent on engaging in ESG initiatives in the entire supply chain so that we can contribute to social issues through business execution.

CSR procurement policy

We go beyond the compliance with laws, regulations, and social norms in each of the countries where we operate and take initiatives to conform to the international CSR standards and guidelines of procurement to meet the expectations of stakeholders. We not only follow "Lasertec Code of Conduct" but also adhere to the Ten Principles of the United Nations Global Compact and the RBA Code of Conduct*1, which is compiled by Responsible Business Alliance (RBA), and take action proactively.

  1. *1The Responsible Business Alliance (RBA) Code of Conduct establishes standards to ensure that working conditions in the electronics industry, or industries in which electronics are a key component, and its supply chains are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible and conducted ethically. In alignment with the UN Guiding Principles on Business and Human Rights, the provisions in this Code are derived from key international human rights standards including the ILO Declaration on Fundamental Principles and Rights at Work and the UN Universal Declaration of Human Rights.
A Labor

We are committed to upholding the human rights of workers and treating them with dignity and respect as understood by the international community. This applies to all workers, including temporary, migrant, student, contract, directly employed, and any other type of workers.

1)Freely Chosen Employment
We do not permit forced labor, bonded (including debt bondage) or indentured labor, involuntary or exploitive prison labor, slave labor, or human trafficking.

2)Young Workers
We do not use child labor in any stage of manufacturing.

3)Working Hours
We comply with the laws and regulations of working hours and do not exceed the maximum hours set by local laws.

4)Wages and Benefits
We pay compensation in accordance with applicable wage laws, including those relating to minimum wage, overtime pay, and legally mandated benefits. We pay workers who work overtime at pay rates greater than regular hourly rates in accordance with local laws.

5)Humane Treatment
We put measures in place to prevent offensive or inhumane treatment of workers, such as violence, gender-based violence, sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, bullying, public shaming, or verbal abuse, or the threat of such treatment.

6)Non-Discrimination/Non-Harassment
We do not engage in harassment or discrimination based on race, color, age, gender, sexual orientation, gender identity and expression, ethnic or national origin, disability status, pregnancy, religion, political party affiliation, union membership, military service status, protected genetic information or marital status, in hiring and employment practices, such as wages, promotions, rewards, and access to training.

7)Freedom of Association
In conformance with local law, we respect the rights of workers to form and join trade unions of their own choosing, to bargain collectively, and to engage in peaceful assembly as well as respect the rights of workers to refrain from engaging in such activities.

B Health and Safety

We recognize that in addition to minimizing incidents of work-related injury and illness, a safe and healthy work environment enhances the quality of products and services, consistency of production, and worker retention and morale.We also recognize that ongoing worker input and education are essential to identifying and solving health and safety issues in the workplace and have the following measures in place.

1)Occupational Safety
We identify and assess worker potential for exposure to health and safety hazards (chemical, electrical and other energy sources, fire, vehicles, and fall hazards) and take appropriate measures to mitigate such hazards.

2)Emergency Preparedness
We identify and assess potential emergency situations and events and minimize their impact by implementing emergency plans and response procedures, including emergency reporting, employee notifications, evacuation procedures, worker training, and drills.

3)Occupational Injury and Illness
We put in place procedures and systems to prevent, manage, track, and report occupational injury and illness.

4)Industrial Hygiene
We identify and assess worker exposure to chemical, biological and physical agents. If any potential hazards are identified, we take appropriate measures to mitigate such hazards.

5)Physically Demanding Work
We identify, evaluate, and control worker exposure to the hazards of physically demanding tasks, such as manual material handling and heavy or repetitive lifting, prolonged standing, and highly repetitive or forceful assembly tasks.

6)Machine Safeguarding
We evaluate production and other machinery for safety hazards and properly install and maintain safety mechanisms to prevent injuries or dangers to workers.

7)Sanitation, Food, and Housing
We provide workers with access to clean toilet facilities, drinking water, and sanitary food preparation, storage, and eating facilities.

8)Health and Safety Communication
We provide workers with appropriate health and safety information and training in their native language or in a language they can understand for the workplace hazards they are exposed to, including but not limited to mechanical, electrical, chemical, fire, and physical hazards.

C Environment

We recognize that environmental responsibility is integral to producing world-class products. We identify the environmental impacts of our manufacturing operation and strive to minimize adverse effects on the community, environment, and natural resources from these operations while safeguarding the health and safety of the public.

1)Environmental Permits and Reporting
We obtain, maintain, and keep current all required environmental permits (e.g., discharge monitoring), approvals, and registrations, and follow their operational and reporting requirements.

2)Pollution Prevention and Resource Reduction
We endeavor to minimize or eliminate our emissions of pollutants and generation of waste either at the source or by practices such as adding pollution control equipment; modifying production, maintenance, and facility processes; or by other measures. We conserve our use of natural resources, including water, fossil fuels, minerals, and virgin forest products by practices such as modifying production, maintenance, and facility processes, substituting materials, re-use, conservation, and recycling, or other means.

3)Hazardous Substances
We identify, label, and manage chemicals, waste, and other materials hazardous to humans or the environment to ensure that they are handled, transported, stored, used, recycled or re-used, and disposed of safely.

4)Reduction of Solid Waste and a Responsible Approach to Disposal and Recycling
We have implemented a systematic approach to identify, manage, reduce, and responsibly dispose of or recycle non-hazardous solid waste.

5)Monitoring, Control, and Management of Air Emissions
We characterize, routinely monitor, control, and treat as required prior to discharge air emissions of volatile organic chemicals (VOC), aerosols, corrosives, particulates, ozone-depleting substances, and combustion byproducts generated from our operations. We effectively manage ozone-depleting substances in accordance with the Montreal Protocol and applicable regulations.

6)Adherence to Material Restrictions
We adhere to all applicable laws and regulations regarding the prohibition or restriction of specific substances in products or manufacturing, including labeling for recycling and disposal.

7)Water Management
We implement a water management program that documents, characterizes, and monitors water sources, use and discharge; seeks opportunities to conserve water; and controls channels of contamination.

8)Tacking and Minimizing Energy Consumption and Greenhouse Gas Emissions
We establish a company-wide greenhouse gas reduction goal. We track and document our energy consumption and all relevant Scopes 1 and 2 greenhouse gas emissions and publicly report this information alongside our greenhouse reduction goal. We also look for methods to improve energy efficiency and minimize our energy consumption and greenhouse gas emissions.

D Ethics
To meet our social responsibilities and to achieve success in the marketplace, we uphold the following ethical standards.

1)Business Integrity
We uphold the highest standards of integrity in our business interactions and have a zero-tolerance policy prohibiting all forms of bribery, corruption, extortion, and embezzlement.

2)No Improper Advantage
We do not promise, offer, authorize, give, or accept bribes or other means of obtaining undue or improper advantage. We also implement monitoring, record-keeping, and enforcement procedures to ensure compliance with anti-corruption laws.

3)Disclosure of Information
We perform all business dealings transparently and reflect them on our books and records accurately. We disclose information regarding our labor, health and safety, environmental practices, business activities, structure, financial situation, and performance in accordance with applicable regulations and prevailing industry practices. We do not commit any falsification of records or misrepresentation of conditions or practices in the supply chain.

4)Intellectual Property
We respect intellectual property rights, conduct transfer of technology and know-how in a manner that protects intellectual property rights, and safeguard customer and supplier information.

5)Fair Business, Advertising, and Competition
We uphold standards of fair business, advertising, and competition.

6)Protection of Identity and Non-Retaliation
We maintain a whistleblower protection program that ensures the confidentiality, anonymity, and protection of supplier and employee whistleblowers, unless prohibited by law.

7)Responsible Sourcing of Minerals
We adopt a policy and exercise due diligence on the source and chain of custody of the tantalum, tin, tungsten, and gold used in the products we manufacture to reasonably assure that these materials are sourced in a way consistent with the Organisation for Economic Co-operation and Development (OECD) Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas or an equivalent and recognized due diligence framework.

8)Privacy
We are committed to meeting reasonable privacy expectations for the personal information of everyone we do business with, including suppliers, customers, consumers, and employees. We comply with privacy and information security laws and regulatory requirements when personal information is collected, stored, processed, transmitted, and shared.
E Management Systems

We establish and adopt a management system that is designed to ensure: (a) compliance with applicable laws, regulations, and customer requirements related to our operations and products; (b) conformance with this policy; and (c) identification and mitigation of operational risks related to this policy. This system also facilitates continual improvement and contains the following elements.

1)Company Commitment
Policy statements on the company’s social and environmental responsibility affirming our commitment to compliance and continual improvement, endorsed by management executives, and posted in facilities in the local language.

2)Management Accountability and Responsibility
A clear identification of the executives and company representative(s) responsible for ensuring implementation of the management systems and associated programs, and a regular review by management of the status of the management systems.

3)Legal and Customer Requirements
A process to identify, monitor, and understand applicable laws, regulations, and customer requirements.

4)Risk Assessment and Risk Management
A process to identify the legal compliance, environmental, health and safety, and labor practice and ethics risks associated with our operations.

5)Improvement Objectives
Written performance objectives, targets, and implementation plans to improve our social, environmental, and health and safety performance, including a periodic assessment of our performance in achieving those objectives.

6)Training
Programs for training managers and workers to implement this policy, our procedures, and improvement objectives and to meet applicable legal and regulatory requirements.

7)Communication
A process for communicating clear and accurate information about this policy and our practices, expectations, and performance to workers, suppliers, and customers.

8)Worker Feedback, Participation, and Grievance
Ongoing processes, including an effective grievance mechanism, to assess workers’ understanding of and obtain feedback on or violations against practices and conditions covered by this policy and to foster continuous improvement.

9)Audits and Assessments
Periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content of this policy, and customer contractual requirements related to social and environmental responsibility.

10)Corrective Action Process
A process for timely correction of deficiencies identified by internal or external assessments, inspections, investigations, and reviews.

11)Documentation and Records
Creation and maintenance of documents and records to ensure regulatory compliance and conformity to company requirements along with appropriate confidentiality to protect privacy.

12)Supplier Responsibility
A process to communicate the requirements of this policy to suppliers and to monitor supplier compliance with them.

Lasertec Code of Conduct
  1. 1We never cease to make the efforts of R&D and innovation to create high value-added products for customers. We strive to be a company that continues to grow with customers and society.
  2. 2We, as a good corporate citizen, comply with laws and regulations, act in accordance with the articles of incorporation and social norms, conduct fair trade and proper business activities, promote environmental protection, and contribute to the progress of local communities.
  3. 3We communicate with customers and society at large in a timely and appropriate manner and disclose corporate information proactively and fairly.
  4. 4We respect our employees' human rights and personality, and strive to make our workplace healthy, safe, fair, hospitable, and full of job satisfaction.
  5. 5We manage the assets and rights of our own as well as of third parties' in a strict manner, never infringe on them under any circumstances, and use them fairly. We also take all possible measures to ensure information security.
  6. 6Our top management, board members, and department managers act in accordance with this action guideline in an exemplary manner, establish an internal structure for its implementation, and keep all concerned parties fully informed.

Examples of initiatives to increase the effectiveness of CSR procurement

  • Periodic policy briefings to major suppliers
  • CSR procurement policy sent to new suppliers

Request for our suppliers

We adhere to the RBA Code of Conduct. We ask you to understand the purpose and intent of our CSR activities and adhere to the Code as well. We also request that you ask your suppliers to do likewise.


We believe it is our social responsibility to maintain the uninterrupted supply of our products to customers. To ensure that we can continue or swiftly resume business operations in the event of natural disasters or other emergency situations, we formulate, implement, and keep improving our business continuity plan (BCP). However, your cooperation is crucial for our BCP to function effectively. We therefore ask that you formulate, implement, and keep improving your own BCP as well and request your suppliers to do likewise.

Declaration of Partnership Building

We have formulated a "Declaration of Partnership Building"*1 and announced it publicly to promote the creation of new value throughout the entire supply chain while adhering to social norms by building better relationships with our business partners and furthering our healthy trade practices.

  1. *1The "Declaration of Partnership Building" was established at the "Council on Promoting Partnership Building for Cultivating the Future", whose members are comprised of the Chairman of the Japan Business Federation, the Chairman of the Japan Chamber of Commerce and Industry, the President of the Japanese Trade Union Confederation, and the ministers of relevant ministries (Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of Health, Labour and Welfare, Ministry of Agriculture, Forestry and Fisheries, and Ministry of Land, Infrastructure, Transport and Tourism). The declaration is intended to show the determination to build a new type of partnership by promoting cooperation, coexistence, and coprosperity among partners in the supply chain and others seeking value creation.

Compliance Helpline for Business Partners

For the prevention, early detection, and swift resolution of compliance issues, we have put in place a compliance helpline for our suppliers, subcontractors, and other business partners. If you find any violation or potential violation of laws and regulations regarding our business practices, or the conduct of our officers and employees, please use this helpline to submit your report from the following website.

URL: https://www.dial-soudan.jp/cp/lasertec/login?lang=en
ID:lasertec Password:lasertec1960

  • Notes about the helpline:
    • This helpline is not for making business inquiries. If you have such an inquiry, please contact the department in charge.
    • We will not treat whistleblowers or their employer companies unfavorably for their whistleblowing reports.
    • All information contained in your whistleblowing report, including personal information, will be used only by our officers and employees responsible for handling compliance matters and only to the extent necessary to respond to the reports. We will not disclose such information to any third party without your prior consent unless we are required to do so by law. For information about the handling of personal information, please see our privacy policy.
    • This helpline is a third party-operated system with strict security control, available 24 hours a day, 365 days a year. You can submit reports either in Japanese or English, anonymously if you choose to do so.