A long-term partnership between Infineon and its suppliers is a core element of our corporate supplier management philosophy. Compliance with our requirements in the areas of human rights and labor, environmental protection as well as occupational safety and health is crucial when selecting new suppliers and evaluating existing business partners, as well as for decisions regarding future supplier development.

Supplier Management is the organization, controlling and development of supplier relationships. By anchoring sustainability and human rights requirements and monitoring measures in the procurement process, we increase the effectiveness of our supplier management, reduce possible risks, create transparency along the supply chain and initiate improvement processes at suppliers.

Our Supplier Code of Conduct is based on internationally recognized guidelines, such as the Principles of the UN Global Compact and the fundamental principles of the International Labor Organization as well as our Human Rights Policy, our Business Conduct Guidelines. Infineon is a global member of the Responsible Business Alliance (RBA) and therefore has integrated the principles of the RBA Code of Conduct into the Supplier Code of Conduct.

All of our Suppliers shall comply with the requirements described in our Supplier Code of Conduct and agree on contractual control mechanisms to verify compliance with those. In addition, each of our suppliers shall ensure that its affiliates, contractors and subcontractors also comply with all requirements described herein. Following a risk-based approach, major and high-risk suppliers, amongst others, are informed whenever there is an update of this document and trained on the current processes to monitor their compliance to the Infineon Supplier Code of Conduct.

Respect for human rights is a matter of course for Infineon. Avoiding conflict minerals in the supply chain means that we are contributing towards the prevention of human rights abuses.

Infineon is not listed on US stock exchanges and therefore not legally required to publish a report on conflict minerals. Nevertheless, as a member of the Responsible Minerals Initiative, we uphold our voluntary commitment to responsibility within the supply chain. At the same time, our comprehensive declaration on the use of conflict minerals supports those of our customers who are required to perform due diligence within their supply chains to fulfill their reporting duties in accordance with the requirements of the United States Securities and Exchange Commission (SEC).

Since Infineon does not source these metals directly from mines or smelters, we identify their origin in close cooperation with our direct suppliers. For this purpose, we have introduced a standardized process throughout the organization based on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas in order to create the necessary transparency within our supply chain. Our targets and our requirements of our supply chain are set forth in the Infineon Conflict Minerals Policy and the Supplier Code concerning the Responsible Sourcing of Conflict Minerals. Read our Conflict Minerals Policy and our Supplier Code for a Responsible Sourcing of Conflict Minerals.

The Democratic Republic of the Congo has around 50 percent of global cobalt reserves and produces the largest quantity of cobalt in the world. Serious concerns have been raised in several reports about the social and environmental impact of cobalt extraction, including child labor and unsafe working conditions in cobalt mines. As a responsible company, Infineon has therefore, as of the 2020 fiscal year, expanded its activities relating to social and environmental responsibility in the supply chain and voluntarily included cobalt in its due diligence program for the responsible procurement of minerals. We also identified relevant suppliers of material containing cobalt in the course of our investigation in the 2024 fiscal year and requested them to report cobalt smelters in their supply chain.

The mica group represents 37 types of minerals with layered structures (layered silicates) that allow them to be split into thin flakes or sheets. In two major mica-producing countries, India and Madagascar, mica supply chains rely heavily on artisanal and small-scale extraction as well as manual processing. Since the 2022 fiscal year, we have conducted an annual review of our production materials for the use of mica.

To ensure transparency, we make the results of our assessment available to our   customers in the form of a combined Cobalt and Mica Declaration (Extended Minerals  Reporting Template).

Know more in our Sustainability Report page 48-51.