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Sustainable Supply Chain
Supply Chain Management

Supply Chain Management

Sustainable Supply Chain
日期
2025.11.12

Industry Overview: Upstream and Downstream Relationship

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EZconn has established a strong presence in the communications and internet industry, playing a critical "midstream" role within the overall industry value chain. Upstream, we are supported by a diverse range of raw material and component suppliers, providing a solid foundation for production. Downstream, its customer base includes telecommunications companies, system integrators, and equipment providers. By accurately understanding customer needs, EZconn is committed to vertically integrating the industry chain and delivering highly competitive products.

Product Portfolio and Proportion of Local Purchase

EZconn’ product portfolio is primarily divided into two main categories, reflecting our expertise and contributions across different communication sectors:


Radio Frequency Connector (RF Connectors):

These products are widely used in consumer telecommunications, computers and peripherals, and automotives industry. Notably, the supply chain for our RF connectors is predominantly based in Taiwan, with 95% of procurement in 2024 sourced from local suppliers. This not only creates more local employment opportunities from an economic perspective but also significantly reduces carbon emissions and delivery time during transportation. In addition, the reuse of plastic and cardboard packaging materials enhances packaging efficiency, underscoring EZconn’s commitment to environmental sustainability.


Optical Fiber Component (OP Components):

As a core business segment, OP components are mainly used in optics LAN equipment, telecommunication optics transmission equipment, and cable TV optics transmission equipment industry—making them essential components in modern high-speed communication. Key raw materials for OP components include EPI-Wafer and chips. However, due to the inability of domestic suppliers in Taiwan to fully meet the required specifications, we primarily source these materials from major international suppliers. In recent years, as the manufacturing of products has gradually expanded in China, the international logistics distance from overseas suppliers has increased, inevitably contributing to higher transportation-related carbon emissions and costs. To address this challenge, EZconn has established an operational base in the Philippines, with plans to ship critical materials directly to the production site in the future, thereby effectively reducing both carbon emissions and logistics expenses.

Definition and Management of Key Suppliers

EZconn defines suppliers with significant influence on the company’s operations as key suppliers. Disruptions in these suppliers would significantly impact production, so they are managed and communicated with as a priority. We identify key suppliers for RF connectors and OP components product lines based on the following criteria:


RF Connectors:

Key suppliers of RF connectors are identified primarily based on the core metal materials they provide. These core materials represent the highest procurement costs, with 78% of purchases sourced from 24 suppliers. This demonstrates their critical influence on our operations and justifies their designation as priority partners for management and collaboration.


OP Components:

Key suppliers for OP components are identified according to the following conditions:

  1. High Transaction Volume and Value: Suppliers with more than six transactions per month and ranking in the top 10% of annual procurement value.
  2. Irreplaceability and Technical Criticality: Suppliers providing unique items or possessing key technologies that are difficult to substitute.

Furthermore, to enhance risk management, we classify suppliers with two or more product rejections in a year—based on feedback from the quality assurance department— as high-risk suppliers. These suppliers are also treated as key partners requiring intensified communication to maintain overall supply chain quality and stability. Looking ahead, EZconn aims to deepen sustainability collaborations with downstream customers and jointly build a resilient, transparent, and responsible supply chain.

Resource Circulation and Material Management of Product Lines

EZconn continues to toward its goals of resource circulation and sustainable development. Within our two main product lines, we actively promote waste recycling and reuse strategies for the RF connector product line, aiming to achieve effective resource management.


RF Connectors

All major raw material waste generated during production is processed by professional contractors and remanufactured into raw materials for reuse in the production cycle. The recycling rate of these raw materials is approximately 70%. In 2024, the total volume of raw materials used was 882,336 kilograms, of which approximately 617,635 kilograms of waste were reprocessed, effectively achieving resource circularity.


OP Components

Due to the material characteristics and process requirement, the current production cycle of OP components is not suitable for a recycling and remanufacturing model. As a result, there is currently no applicable recycling process for raw materials in this product line. EZconn will continue to monitor and assess future technological developments to explore further possibilities for the use of sustainable materials.

Restricted Substances Management Practices and Performance

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EZconn remains committed to closely monitoring and complying with the latest international regulations on restricted and prohibited substances under the RoHS directive to ensure that all raw materials meet the highest international standards. We impose strict requirements on suppliers, setting maximum allowable concentrations for hazardous substances in raw materials and strictly prohibiting the use of the following ten chemicals: cadmium (Cd) (maximum allowable concentration: 100 ppm), lead (Pb), mercury (Hg), hexavalent chromium (Cr6+), polybrominated biphenyls (PBBs), polybrominated diphenyl ethers (PBDEs), di(2-ethylhexyl) phthalate (DEHP), dibutyl phthalate (DBP), benzyl butyl phthalate (BBP), and diisobutyl phthalate (DIBP). In addition, we enforce strict control over the composition of packaging materials and restricts the use of perfluorooctane sulfonate acid (PFOS) and perfluorooctanoic acid (PFOA) to ensure compliance with international regulations and contribute to environmental protection.


EZconn is dedicated to implementing rigorous risk controls at the source of raw material procurement to minimize potential harm to the environment, occupational health and safety, and human rights. We integrate restricted substances management into our supply chain risk management strategy through the following measures:


  1. Survey and Audit of Supplier Raw Materials: EZconn ensures that suppliers' raw materials comply with the Responsible Minerals Initiative (RMI) and relevant banned or restricted substances regulations, Hazardous Substance Free (HSF), and the Restriction of Hazardous Substances (RoHS).
  2. REACH Compliance: If a supplier’s products contain Substances of Very High Concern (SVHC), EZconn requires the supplier to fulfill its duty to communicate, ensuring full transparency of information.
2024 Achievements in Restricted Substances Compliance

To enhance the management of restricted substances, EZconn actively collaborated with our suppliers in 2024 to sign a series of important compliance documents related to restricted substances. A summary of these signed agreements is provided in the table below:

左右托拉查看表格資訊

Investigation Category

RF Connector Suppliers

OP Component Suppliers

HSF Guarantee Letter

3

5

SVHC New Questionnaire (2024 A)

71

32

SVHC New Questionnaire (2024 B)

59

31

Total

133

68


2024 Supplier Audits

In 2024, EZconn conducted ISO 9001 audits on our suppliers, using both document-based reviews and on-site audits. These audits aimed to ensure that all raw materials complied with international environmental standards. A summary of the audit results is presented in the table below:

左右托拉查看表格資訊

Product

Supplier Type

Audit Method

Number of Suppliers

RF Connectors

New

On-site audit

2

Existing

On-site audit

9

OP Components

New

Document review

7

On-site audit

1

Existing

Document review

9

On-site audit

1

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