2020 year-end figures
Total sourcing spend
Completion of RBA assessment by key suppliers
Suppliers with ‘high risk’ RBA and ASML assessment score
Our world-class supplier network helps us to achieve the innovations we strive for.
At ASML, we rely heavily on our supplier network to achieve the innovations we strive for. Long-term relations, close cooperation and transparency with suppliers and partners are key to helping us achieve success by ensuring we conduct our business in a sustainable and responsible manner. With around 4,750 suppliers in our total supplier base, we invest in developing our supply landscape to help suppliers meet our requirements with regard to quality, logistics, technology, cost and sustainability.
Working with our suppliers
We collaborate with our suppliers to develop, manufacture and deliver the innovative and unique parts used in our lithography systems. We build long-term and mutual beneficial partnerships with strategic suppliers, like our partnership with Carl Zeiss SMT.
To ensure a robust supply chain, we conduct annual risk assessments for our critical suppliers, evaluating risk areas such as our suppliers’ financial health, change of ownership, potential supply disruptions (for example, as a result of natural hazards), and situations where we depend on a single supplier for certain parts or modules.
Our ASML supplier profile outlines our approach to supplier management and development, providing an enhanced knowledge base to improve supplier performance dialogue. We use a single framework, which allows us to communicate our process requirements and compliance expectations clearly to our suppliers. We require our suppliers to meet our high standards regarding the quality, logistics, technology, cost, and sustainability of their products and services.
Sustainability of our suppliers
We are committed to conducting our business in a caring and accountable manner, and being recognized as a responsible business partner.
Since 2011, we have been a member of the Responsible Business Alliance, the world’s largest industry coalition dedicated to corporate social responsibility in global electronics supply chains. We have adopted the RBA Code of Conduct which is a set of social, environmental and ethical industry standards.
To strengthen our commitment to a sustainable, resilient and responsible supplier network, we promote the principles of the RBA Code to our suppliers, their suppliers, and our subcontractors. We expect key suppliers to participate in this common effort and encourage our suppliers to develop their own sustainability strategies, policies and processes, and actively pursue our suppliers’ adherence to this code. At the heart of our sourcing strategy is continual monitoring and improving of our supplier’s performance.
ASML Procurement Managers, with direct responsibility for supply chain management, receive RBA Code of Conduct compliance training, which includes how to assess and mitigate the risks of compliance. We assess our supplier’s compliance with the RBA Code of Conduct by a risk-based approach:
- Supplier due diligence, we scan new suppliers on potential high risks. We work with suppliers during the on-boarding process to remedy any issues identified.
- We expect our Strategic and high-risk suppliers to annually complete the RBA Self-Assessment Questionnaire (SAQ) to validate the implementation of the RBA Code of Conduct and to determine a supplier’s potential gaps to the RBA Code of Conduct. We work with suppliers to remedy any issues identified.
- High-risk suppliers are audited at our determination. We conduct supplier audits to address risks identified in our regular risk assessments. These audits also help ensure suppliers deliver what we expect. Lower-risk suppliers, as determined by the RBA Self-Assessment Questionnaire (SAQ), may also be audited at our determination.
Member of the Responsible Business Alliance commit and are held accountable to a common Code of Conduct and utilize a range of Responsible Business Alliance training and assessment tools to support continuous improvement in the social, environmental and ethical responsibility of their supply chains.
Like many companies in the electronics industry, ASML and our suppliers use minerals essential to the manufacturing process. The four main minerals concerned are tin, tantalum, tungsten and gold, also known as 3TG.
We are committed to a conflict-free minerals policy and closely monitor the use of conflict minerals in our supply chain. We support international efforts to ensure the mining of 3TG minerals from high-risk locations does not contribute to conditions of armed conflict or human rights abuses in the Democratic Republic of the Congo or any neighboring countries.
We also encourage our suppliers and sub-suppliers to have policies and due diligence measures in place to ensure the 3TG minerals we use are responsibly sourced.
Building relationships through Annual Suppliers’ Day
Our annual Suppliers’ Day helps us foster strong relationships with suppliers. The day allow suppliers to familiarize themselves with our strategy and targets, including through presentations from senior leadership. It is also an opportunity for us to present awards to suppliers for their contributions to ASML.
In 2020, faced with restrictions to prevent the spread of COVID-19, we organized a hybrid event which 250 supplier representatives attended virtually, with 16 strategic suppliers attending a live event.
The live and virtual Q&A session allowed suppliers to put their questions to senior management.
During the cyber resilience satellite session, 30 of our suppliers’ Chief Information Officers and IT directors discussed the increased focus on strengthening cyber security and controlling risks.