Texas Instruments

2012 Corporate Citizenship Report

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Supplier accountability

TI depends on more than 11,000 suppliers to help it create products and services that enhance the company's competitiveness, while improving quality of life in neighboring communities and reducing environmental impacts.

We recognize that innovative thinking, collaboration and transparency create long-term sustainable value. That is why we proactively work with our suppliers to:

  • Proactively reduce environmental and social impacts and mitigate other sustainability risks.
  • Cut costs and improve operational efficiency.
  • Develop innovative approaches to product development.

We conscientiously evolve our own procurement management practices, standards, policies and management systems to not only comply with applicable laws and regulations, but to hold ourselves and our suppliers accountable for responsible conduct and performance.

Risk management

We continually assess risks to our supply chain, whether anticipated (such as emerging regulations), or unexpected (such as natural disasters). Our objective is to ensure that our procurement and supplier-management processes are robust and rigorous enough to prevent shipping delays, escalated costs or impacts to our reputation.

In 2012, we manufactured approximately 70 percent of our semiconductor products internally. This results in significantly lower risks than those faced by companies that rely exclusively on external manufacturing, because we can:

  • Control the efficiency and quality of fabrication processes.
  • Manage the flexibility required to address fluctuations in the different types of process technologies manufactured at each facility and customer demand for our products.
  • Protect our proprietary technology.
  • Increase collaboration with and performance monitoring of our foundry suppliers on semiconductor manufacturing technology.
  • Control the timely implementation of new manufacturing technologies and installation of manufacturing equipment.
  • Adjust the timing of third-party foundry and assembly/test subcontract services.
  • Enhance R&D by engaging with third parties, including software suppliers, universities and select external industry consortia.

We expect those external contractors manufacturing the balance of our semiconductor products to comply with applicable global laws and regulations, and to adhere to our own standards and expectations.