We are pleased to present the SMIC Group’s CSR Report for FY2023.
Although the COVID-19 is steadily being brought under control, the problems of wars among nations, civil wars and civil strife due to political instability, soaring raw material prices, and intensifying disasters due to climate change are having a major impact on the social economy. In light of these social conditions, this year's CSR Report will focus on the BCP system and health and safety under the theme of Resilience II - Transcend Any Situation with Flexibility and Integrity as a continuation of last year’s report.

Establishment of a BCP system to continue to fulfill supply responsibilities for our customers

Last year, our manufacturing sites were damaged by the COVID-19 lockdown in Shanghai and flooding caused by heavy rains in Malaysia. This made it difficult to supply our customers. However, this did not cause any serious problems because we had a BCP system in place to cover supply at our manufacturing sites around the world. To ensure that our customers have peace of mind in the event of a situation like this occuring in the future, we are strengthening our BCP system for all solder materials and enhancing disaster prevention measures, such as improving our facilities and in-house infrastructure, in response to natural disasters such as floods and earthquakes.

Creating a workplace where employees feel safe and secure

In the area of health and safety, water-connected sprinklers developed by Senju Sprinkler, a Group company, have been deployed at our manufacturing sites in Japan as a fire prevention measure, and we are working to establish evacuation routes and systems that allow employees to safely evacuate if a fire should break out in the factory.
In addition, factories where people must be present at all times have the potential for high incidences of occupational accidents, we are working to improve safety by preventing human error through the automation of manufacturing equipment, reducing employee workloads and improvements in the workplace environment.

Profitability is essential for contributing to sustainability

Continuously taking appropriate actions to address various issues in business activities, such as supply chain, BCP, health and safety can only be accomplished by securing enough revenue to make such actions feasible. To this end, we believe that our contribution to sustainability involves continuing to be a company that can flexibly respond to changes in the business environment based on a solid revenue base.
We also believe that it is important to properly understand the situation and circumstances in order to determine the most effective way to deal with the problem. We will scrutinize the general information around us and take the appropriate action for our company, drawing on our past experience. We will share information on these measures with all employees and promote mutual understanding of their importance.

Low-temperature soldering solutions that contribute to carbon neutrality in the environment

What can we leave behind for the next generation? As a manufacturing company that handles heavy metals, this is the most important question we must consider. As we face the global challenges of energy supply and global warming, we are promoting our business activities with low temperature as our keyword. Low-temperature solder with a tin-bismuth (Sn-Bi) composition has a melting point 80℃ lower than that of lead-free solder (which is commonly used today), and requires less energy for melting, thereby reducing CO₂ emissions.
While this material offers advantages, it is extremely rigid and brittle making it challenging for mass production. Additionally, due to its low melting point, it is prone to the formation of solder oxides (dross), which has made it historically challenging to implement through soldering devices.
We believe that it is necessary to make such materials easy for customers to use and to ensure a stable supply. We launched MILATERA, a solution that contributes to CO₂ emissions reduction through low-temperature solder mounting by combining our technological capabilities in materials, equipment, and production methods to overcome the challenges associated with the use of low-temperature solder.
As one of our legacies for the next generation, we intend to serve as a socially valued institution.
The SMIC Group will continue to engage in business activities to meet your needs, while contributing to the realization of a sustainable society. We look forward to your continued support and encouragement.

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