This report is made of material from well-managed, FSC®-certiﬁed forests and other controlled sources. It uses
Non-VOC ink, which does not include volatile organic compounds, and is printed with Toray Waterless Plates®,
which do not require a dampening solution containing alkaline developer or isopropyl alcohol.

LOOK AT THE
EDITORIAL POLICYSMIC Group strives to report on key challenges and topics of high social importance in order to determine materiality.
We declare that this report was made in compliance with the requirements of the GRI standards, and reports the resultsof our efforts to solve social problems through our business.

Period Covered

April 1, 2020 - March 31, 2021 (Includes some information from April 2021 onwards)

Report Scope

25 group companies (includes non-consolidated subsidiaries and associated companies).
Note that SMIC's environmental initiatives are listed separately.

Key Changes

Decrease in consolidated subsidiaries: 2 companies

Membership

RBA, JWES, JIEP, JAPIA, TEA, JCCI

Publication History

Current Issue: October 2021 (Previous Issue: October 2020)

Next Issue

October, 2022

Reference Guidelines

GRI Standards, Environmental Reporting Guidelines, ISO26000*The GRI standards comparison table will be posted on our CSR website.

1

SMIC CSR REPORT 2021

DISCLAIMER
This report contains descriptions of plans andstrategies pertaining to the future activities of
SMIC, as well as predictions and forecasts related
to its business performance. Such descriptions
include estimates and forecasts formed withinformation gathered and analyzed based on whatis available at the time of creation. Please be awarethat SMIC and its related companies assume no
responsibility whatsoever for damages or losses
occurring either directly or indirectly from the use of
the information or content included in this report.
Furthermore, the original text of this report was
written in the Japanese language and has beentranslated into English and Chinese languages forreference. If there are any discrepancies between
the Japanese version and the English or Chineseversions, the Japanese version shall supersede theother versions. Please be aware that SMIC
assumes no responsibility whatsoever for any andall damages occurring from misunderstandings
caused by translated versions of this report.

WORLD

Photo: Kinugaoka Factory, Tochigi Segment

CONTENTS
Editorial Policy and Table of Contents

01

Message from the President andManagement Philosophy

03

SMIC Group: Our Vision and CSR

05

TOPICS 2

Special talk on researchand development

SMIC Group LifestyleSupport Products

TOPICS 1

Footsteps of SMIC Group’s
environmentallycompatible products

07

Lenovo Japan × SMIC

09
11

Analysis to create the future
TOPICS 4

Measures for COVID-19

MANAGEMENT

Efforts to achieve a Zero-Emission
society through Our Environmental
Vision 2050

Governance

33

19

ENVIRONMENT

20

Company Profile / Network

37

SOCIETY

TOPICS 3

Industrial Analysis Service Ltd.

ENVIRONMENT

15
17

Working with Customers

24

Working with Suppliers

25

Working with Employees

26

Activities of Social Contribution

30

SMIC CSR REPORT 2021

2

Message from the President

Four things SMIC wants to achieve to bringabout a sustainable society

connected online using 5G, IoT, and automated operations.
Achieving these four objectives will bear further investment andbusiness continuity, which will lead to the growth of our company. We

Execute

It is my pleasure to introduce the SMIC CSR Report 2021.

believe it important to perform our mission as a socially valued

Day by day, it is increasingly critical that a company conducts its

institution and to achieve a sustainable society.

business activities based on the SDGs (Sustainable Development

The Power to Perform Fighting Spirit−What we want to achieve to welcome in a new era−

Goals) and ESG (Environment, Society, Governance) to help realize asustainable society. We have listened to our stakeholders’

The SMIC Group that meets variedcustomer needs

expectations and requests for us to do so. We aim to meet these
expectations and requests with our management philosophy Ability,

Industrial Analysis Service, our group company, celebrates its 50th

Integrity and Fighting Spirit (trying to solve difficult problems andanniversary in February next year. It was established in 1972 andovercoming any challenges), the SMIC Group set the theme of thisconducts an analysis of non-ferrous metals including solder,

year’s CSR report as Execute the power to perform - fighting spirit –environmental analysis of soil and water quality, an analysis of

What we want to achieve to welcome in a new era.

regulated materials such as RoHS / REACH and phthalates. As a new

We will make a social contribution by achieving the following four

analysis business, the Industrial Analysis Service has begun analysis

objectives to welcome in a new era.

of specific component structures for the purpose of assisting ourcustomers’ development by utilizing orbitrap, cutting-edge analysis
equipment. We will continue to introduce new analysis facilities

1

Establishment of BCP (Business Continuity Plans)

2

Realization of carbon neutral business3

Promotion of low-temperature solder

We will continue business activities to meet the needs of stakeholders

4

Promotion of highly reliable solder

including our customers and to achieve a sustainable society. I

aiming to realize the development in analysis that our customers
expect.

humbly request your continued support and encouragement in thisendeavor.
First, as for the establishment of BCP, we will strengthen our systemthat enables us to continue business activities even under extreme

MANAGEMENT PHILOSOPHY

circumstances. They include outbreaks of infectious disease, such as

Perform our mission as a socially valued
institution via providing universally beneficial products

COVID-19 which has been rampant globally since last year andnatural disasters such as earthquakes and typhoons. We can achieve“Company” is a place where all employees share core values and are able to use the lines of communication as athis by taking various measures such as decentralizing our sales,“dojo” for the mastery of oneself. It is our strongest desire that company growth is directly interwoven withresearch, and management offices in addition to dispersing our

employee happiness – materially and spiritually. In the face of modern society, as the foundation of a company’s

productions sites.

existence, we are expected to continue to provide universally beneficial products year after year. Our management

Second, as for the realization of a carbon neutral business, we will

philosophy is to harmonize societal goals with employee desires, thereby enabling our mission to be a valued

actualize a sustainable production system that enables effective

institution sharing peace, happiness and progress to all of society.
Three key pillars are necessary under this philosophy in order to advance company development and ensure thesuccess of our mission: Ability, Integrity and a Fighting Spirit. These pillars are the three sacred treasures that form

utilization of mineral resources and reduction of greenhouse gas
simultaneously by promoting energy conservation in solder

the cornerstones of every aspect of life.

production and solder recycling.

When these pillars are indomitable inside our institution, a bright, peaceful and vigorous workplace will naturally

Third, as for the promotion of low-temperature solder, we will develop

emerge. We are confident that with this workplace as a driving force we will overcome any challenges and theand offer a solder that enables users to work at a lower temperaturecompany will continue to grow as long as this pioneering spirit is encouraged each and every single day. Together,than before, reducing electricity use. We will also develop soldering

let’s take this philosophy to heart and embrace it as our belief, and build a bridge of peace and friendship across theequipment that controls temperature differences within the circuit,entire corporate landscape while progressing into joyful, healthy lives.
Published in June 1960

The late Mr. Senju Sato, Honorary Chairman
As President
As Chairman
As Honorary Chairman

President RYOICHI SUZUKI

June, 1960 - June, 1978
July, 1978 - May, 2008
June, 2008 - October, 2008

greatly reducing nitrogen usage, cutting power consumption, andgreatly improving flux collection.
Fourth, as for the promotion of highly-reliable solder, we will develop
and offer solder that is effective in various environments to realize
Society 5.0 where No one will be left behind, save the lives that canbe saved, live with a sense of vitality, and everything will be

3

SMIC CSR REPORT 2021

SMIC CSR REPORT 2021

4

SMIC Group: Our Vision and CSR
SMIC engages in CSR and corporate activities aimed at being an outstanding company that helps to realize a sustainable
environment, society, and governance, based on our Management Philosophy, by maintaining sincere relationships with
our stakeholders. We value the 5 aspects defined in the code of conduct of the RBA (Responsible Business Alliance), andthe following four-step process was recommended by the GRI (Global Reporting Initiative) for identifying critical issues,

SMIC Group’s focused SDGs items
Growth of
the Company and Employees
Contributing to customer
satisfaction and a better society

prioritizing events to achieve a better society together with stakeholders, and realizing the society envisioned through ouractivities.

CUSTOMERS■ Provide safe, secure, andstable products and services

PROGRESSION OF
OUR ENTIRE SOCIETY

As a company that provides metal for products and services■ Provide proper eco-friendly
products/services andinformationthat form the infrastructure of society, we SMIC aims tocontribute to the achievement of the SDGs by positioning thefollowing six SDGs as our focus that are deeply interwoven withLOCAL
COMMUNITIES

our business activities.

■Prevent accidents/disasters at
business sites and provide disastersupport in surrounding areas

GLOBALENVIRONMENT■Respect local cultures/customs
and contribute to local
communities■ Prevent global warming andreduce waste■Discontinue use of conflictminerals and control chemical
emissions

1

step

SUPPLIERS■Fairly select and conducttransactions with suppliers■Maintain corporate value andsupport socially responsible
investment

EMPLOYEES■ Fairly evaluate, treat,
train, and fulfill talent
allocation

MANAGEMENTPHILOSOPHY
5SMIC CSR REPORT 2021

■ Consider occupationalsafety and both mental
and physical health

Identification of
key issues and events●

GRI aspects and important RBA self-audit items●

Identification of the scope of impact

3

step

Validation●

Assessment of the scope, impact and period of GRI items●

Approval and disclosure by the management team

2

step

Prioritization●

Severity assessment for stakeholders and the company●

Qualitative and quantitative assessment in the monthly
CSR meeting●

Planning of ESG management strategy

4

step

Review●

Distribution and disclosure of documents in hard andsoft copy (Japanese, English, and Chinese versions)●

Analysis and summary of opinions in
the monthly CSR meeting for utilizing in future meetings

SMIC CSR REPORT 2021

6

SMIC Group Lifestyle Support Products
SMIC Group's products are used everywhere and support every part of our lives, including everyday products such as electronic
devices and mobility products, as well as infrastructure such as wind turbines, base stations, steel towers, and even satellites.
SMIC Group will continue to pioneer the future of bonding through total solutions, and thus contribute to society.

BALL SOLDER, PASTE SOLDERSOLDERING EQUIPMENT

MATERIAL ANALYSIS INSPECTIONSSMIC soldering equipment is

Industrial Analysis Service does

used for the soldering mounting

analysis inspections of harmfulprocess of printed circuit boards

substances contained in various

and electronic components inmaterials and products.

SMIC ball solder and paste solder are used inelectronics and appliances such as smartphones
and PCs, as well as insolar panels, LED lights,
and wind turbines.

manufacturer factories.

PLAIN BEARINGSBAR SOLDER

SMIC plain bearings are

SMIC bar solder is used for theused in the shock absorbers

circuit board mounting process,of automobiles, as well as

which uses soldering equipment.

the undercarriages of construction machines.

ENVIRONMENTAL
ANALYSIS
INSPECTIONS

7

PREFORMED SOLDERSPRINKLERS

SPECIAL ALLOYSSMIC preformed solder are used for

Senju Sprinkler's fire sprinklers

SMIC zinc/tin/magnesium al-in-vehicle mounting in automobiles.

are used in firefighting equipment

loy is used for anti-corrosion

Industrial Analysis Service does anal-around the world, including hous-surface treatment of cast ironysis inspections of contaminants ining, buildings, underground park-

water pipes.

water, air, and soil.

ing lots, and public facilities.

SMIC CSR REPORT 2021

SMIC CSR REPORT 2021

8

TOPICS 1

Footsteps of SMIC Group’s
environmentally compatible
products

2021

May Mother Earth have eternal life.
Passing the torch to the next generation.
We hope to welcome in a new era with you.

2015
Paris Agreement

SMIC always develop environmentally compatible products in line with the social trend
toward environmental footprint reduction based on our management philosophy “perform

Soldering equipment to
reduce power consumption

2008

our mission as a socially valued institution via providing universally beneficial products.”

Dioxin suppression
movement in
the electronic industry

SMIC will continue to develop and offer to the world environmentally friendly products thatcan produce new value and contribute to a sustainable society that the world desires towelcome a new era for the next generation.

2003

tal

en
vironmnEdwar
nd To Reduction
e
r
T
l
a
rint
Soci
Footp

1987
1985

1988

The law concerning the protection of
the ozone layer through the controlof specified substances andother measures.

Montreal Protocol

Halogen-free solder

Vienna Convention

Lead-free solder
Non-washing solder
After soldering, left over flux was washed away with freon.
In the 1980s, it gradually became known that ozone depletion by freon reduces the ozone layers ability to block
hazardous ultraviolet light and is harmful to humans. As acountermeasure, the solder industry promoted the development of non-washing solders that did not use freon. SMIC started with non-washing pate solder inconformity with the US MIL standard, non-washing tar solder, and non-washing flux. This established the basis of today's environmentallyfriendly solder products.

9

SMIC CSR REPORT 2021

Low-temperature solder torealize energy conservation

The restriction of
hazardous
substances

In the past, tin and lead solder were widely used, but as lead isdetrimental for both the environment and human health, leading
to lead-free solder being developed in the late 1980s. The Japan
Electronics and Information Technology Industries Association(JEITA) led the movement in Japan and a national project began.
Lead-free Sn-Ag-Cu solder was adopted as a composite withprominent total balance. SMIC released “M705” as its productname to the market in 2001. Today, partly because we made it
widely available through our patents, it has become an industry-standard lead-free solder widely used around the world.

Previously, printed circuits contained halogen due toits fire-resistant qualities, but when it was discarded and burnt, it generated dioxin and was harmful
to both humans and the environment. As a result,
we shifted to halogen-free printed circuits. Alongwith this development, the movement to use halogen-free electronic components / materials including
solder were accelerated. SMIC has also developed
halogen-free flux materials and offered halogen-free products.

Since the Paris Agreement was adopted in 2015 that
stipulated international cooperation to mitigate climatechange, development and dissemination of energy
conservation / low carbon products globally have been
accelerated. Last year, the Japanese government announced its policy to aim for a decarbonized society by
2050. SMIC developed low-temperature solder that hada lower fusion point than generally used lead-free Sn-AgCu solder. Because SMIC’s low-temperature solder canbe used for soldering at temperatures nearly 50˚C lower than regular lead-free Sn-Ag-Cu solder, through thispower consumption can be reduced by nearly 60%. SMIC
has been continuing to develop products that contributeto decarbonizing manufacturing.

A new type of Nitrogen Atmosphere Reflow Soldering Furnace developed by SMIC introduced aheat circulation system in a new oven, realized
the control of temperature differences within
the circuit, greatly reduced nitrogen usage andpower consumption, and significantly improved
flux collection, therefore reducing power consumption by over 20%.

SMIC CSR REPORT 2021

10

TOPICS 2
Special talk on research and development

What we want to achieve to welcome in a new era

new trend, which was a major achievement.

We cooperated with Lenovo Japan, LLC in the development of low-temperature solder and Lenovo’s LTS (Low Temperature Solder)

As a supplier, we were fortunate to collaborate with Lenovo. It was aprocess. We welcomed Mr. Tadashi Kosuga, Executive Director of Lenovo Japan, LLC and had a discussion with Masato

large-scale, worthwhile project. In the future, it is expected that parts

Shimamura, Councilor of Senju Metal Industry Co., Ltd. and General Manager of R&D Engineering Division, Solder Technicalother than solder and materials may turn themselves into those fit forCenter, about what we wanted to achieve to welcome in a new era.

low temperatures. In that case, we may face new challenges that are
still invisible. Even if we face such a problem, I hope we maintainpartners that can overcome new challenges.

ThinkPad

Moderator: I believe Lenovo as a set manufacturer makes productswith consistently strong demands from end users. What would you liketo ask of SMIC, a material manufacturer, in particular?
Kosuga: We consider it necessary to promote CO2 reduction, aiming
to achieve a carbon neutral business. For this purpose, I have atechnological expectation that SMIC’s low-temperature solder will
lower the fusion point to be even lower than now.

Low-temperature solder

Shimamura: There are two approaches to using solder materials toachieve a carbon neutral business. First, we should develop
low-temperature materials with different elements or materials tolower the fusion point than the current low-temperature solder.

Tadashi Kosuga

Masato Shimamura

Lenovo Japan, LLC.

Senju Metal Industry Co., Ltd.

From now on, we will promote the recycling of the plastic parts ofSecond, we should reduce the energy used to produce solder

ThinkPad and packaging materials.

materials or use clean energy. Once we achieve this, as acomprehensive package, we can promise sustainability and theModerator: I believe you collaborate with various companies. What

reduction of the burden on the environment.

do you ask of partner companies?

Overcome risks and create a new trend

SMT(*1) method which has an extremely high CO2 reduction effect,
Lenovo's LTS process(*2) using the low-temperature paste realized

Kosuga: ThinkPad is our notebook PC brand. I believe it is very

Moderator: The theme of this year’s CSR report is Execute the power

about 7.5t of annual CO2 reduction, which makes our customers very

important to have a brand image of high quality, high reliability, andto perform - fighting spirit. What do you want to achieve and to

happy.

robustness. For example, as for robustness, we had been worried

welcome in a new era with initiatives, such as the SDGs, Society5.0,

This is the collaboratively developed product between SMIC’s

about the fragility of low-temperature solder and recycling plastic at

and a sustainable society?

low-temperature solder and the Lenovo's LTS process in the PC

the beginning of development, but along with the partner companies,

industry including cell phones and servers that puts us ahead of ourwe improved our process and solved the problems. In this way, one of

Kosuga: Nowadays, every company emphasizes the importance ofrivals around the world. It is a big selling point.

the most important features when we select our partner companies is

ESG or the SDGs. We make efforts every day to develop new products

Now, we are working on taking advantage of low temperature

whether they are ready to collaborate with us and make efforts toconsidering the challenge of how we can appeal to ESG. In fact, atsoldering for sub-systems such as memory modules, camera

solve problems together.

Lenovo, we started manufacturing in consideration of ESG early on.

modules, and wireless cards. The Lenovo's LTS process produced in

Now, I belong to the commercial department, but we collaborated withcollaboration with SMIC and using low-temperature solder received

Shimamura: Low-temperature soldering using tin and bismuth is a

SMIC from around 2012 on the joint development of low-temperature

the Gartner best6 supply chain breakthrough award in 2020, and wetechnique known to us from early times, but, as Mr. Kosuga

solder. Mr. Shimamura joined that project, and I really appreciate hishave already shipped out 41.1 million systems based on our process.

mentioned, fragility of joints was its weakness. In the electronics

help. In 2016, Lenovo started mass production of ThinkPad using

We received positive feedback from our customers that they had lessindustry, in fact, it was difficult to make a smooth transition from

low-temperature solder, and we have already shipped out themalfunctions because of the low temperature at the time of

traditional solder to new types. Lenovo overcame qualitative risk andaccumulated total of 38 million PCs to the market to date. By using

production.

succeeded in developing low-temperature soldering. Lenovo created a

Tadashi Kosuga
Lenovo Japan, LLC.
Distinguished Engineer & Executive Director,
Commercial Subsystem Development, CPSD
1987 joined IBM Japan
2005 Moved to Lenovo Japan (at present, Lenovo Japan, LLC.)
Consistently leading technological development primarily at the mass production site ofelectronic parts of ThinkPad, a PC product. Recently, primarily responsible for making
Lenovo's LTS, a new technology, an industry standard.

*1 SMT : Surface Mount Technology*2 Lenovo's LTS process : Lenovo's Low Temperature Solder Process

11

SMIC CSR REPORT 2021

SMIC CSR REPORT 202112

cooperation with TAK-G, our affiliated company, implement recycling

operability, quality, and costs. There are very few customers who taketesting, outcomes, and results through verification. This way you will

solder. It is extremely important to collect and sort used solder. Oura risk but place top priority on the social and environmental

find your supporters within your environment through daily

company’s solder combines various elements in accordance withsustainability. Lenovo is a rare exception. Technology and know-how

communication within your organization, which I believe is essential.

customers’ requests. It is much more effective to recycle solder-mixed

fostered in such new challenges will be gradually supplied to themetal with the same composition than extracting specific metal

platform, which will change the global tide. I feel it is extremely

Shimamura: This is my 26th year in this company. Not only theelements out of mixed solder. Once we can achieve such aimportant to listen to customers’ requests not only from thetechnology and products that were new when I joined the company

mechanism and flow, we can provide a sustainable and lessperspective of immediate technological improvement or simple

have become obsolete, but also things that are 5 to 10 year old may

burdensome circulation of resources.

profitability but also from a perspective that they make us facebecome so. This is a fast-changing world. As a result, it is not good toessential problems in society and lead us to a higher stage.

have a passive attitude to solve the problems presented. By grasping
the psychology of the next customers and market, you should create

Moderator: Besides recycling, what are you working on?

themes in an active manner. I would like to expect that young
Kosuga: We are starting a new approach to how our customers canSomething you should challenge and take a risk foreven if they fail. Everyday I feel it's quite important that we at thecontribute to being carbon neutral by using our products in theMasato Shimamura
Senju Metal Industry Co., Ltd.
Councilor / General Manager of Solder Technical Center,
After serving as President of Senju Comtek Corp. (the U.S.),
2018 appointed as General Manager of Solder Technical Center2020 appointed as Councilor of Senju Metal Industry Co., Ltd.

researchers have the attitude to accomplish what they feel appropriate

market. An example is charge optimization by the battery

Moderator: Today, the manufacturing front lines should keep one eyemanagement level should adopt a management style that extracts

management system installed in the ThinkPad. If you implement rapid

on the Earth and social environment. Could you both give a message

such energy from our young engineers.

charge by constantly connecting a notebook PC to the power source,

to young engineers living in such an age.
Moderator: Both of you have shown your hopes for the new era andthe amount of consumed electricity will increase, and the battery’s

expections of the next generation.

lifespan shortens. By managing the power source so that it can be

Kosuga: I have been in research and development for over 30 years

charged only when it is necessary, you can reduce electricity

since I was with IBM and learned that product development is about

consumption and prolong the battery’s lifespan. Our current challenge

constantly challenging and taking risks. From that perspective, it is

Shimamura: Under COVID-19, we cannot have a face-to-faceis how we can contribute to a carbon neutral society from ourimportant to increase the probability of success by accumulating ameeting and can only meet online, but it was my pleasure to talk withcustomers’ side.

large amount of experimental outcomes. However, the risk still

Mr. Kosuga after a long time, and he has filled me with energy. I will

Moderator: It is very important for any industry to pay attention to theremains but I take it. So I would like to suggest young engineers tosave this energy, but I will not decrease my energy for development. I

environment including the CO2 reduction. What does Lenovo thinkgain the courage to move forward when they find something. You

hope this can be used as an opportunity to move on to the next stage.

don’t need to take the risk alone, go talk to your supervisor and find a

Thank you.

The key to recycling is collecting used products.

about its attention to environment?

Customers’ voices that will lead us to a higher level

way to face it. That’s why communication is extremely important. Take
Kosuga: For example, as for plastic materials, in cooperation with

Moderator: Today, corporations are requested to listen to various

other manufacturers in the same industry, we are promoting

stakeholders’ opinions and reflect those views in their businesspost-consumer recycling(*). It is important to improve theactivities. What kind of input do you particularly listen to?

a risk on a daily basis so you can move forward - risks that are inModerator: Thank you very much for your contribution today.

infrastructure because the key to a steady supply of recycling
materials is to increase the collection rate of used products. In

Kosuga: Our major customers are corporate users. Sometimes, we

addition, there is a movement not to use plastic materials for vinyl andreceived an order for tens of thousands of items from one company. If

sealer for packing. The industry as a whole supports this movement

something happens, we will receive feedback immediately. Voiceswith Lenovo as its leader. As a corporation, we strongly promote

from corporate users are very important. On the other hand, we

environmentally friendly, green products.

cannot ignore each general user’s voice. As for reading and analyzing*Post-consumer recycling:
Collect used products that had been shipped out to the market and reproduce them as commodities

customer’s feedback after using the products through the web forum,
each employee takes advantage of the network and collects feedback
not only from corporate users but also from general users.

Shimamura: We have been focusing on selling environmentally13

friendly products and selling is the end of the cycle. After customers

Shimamura: Solder materials have a very broad platform and ouruse the products, how can we recycle them and reproduce them ascustomers’ fields are varied. It is indispensable to listen to ourcommodities? How can we make recycling energy conservative andcustomers’ feedback and requests to get their attention to find value

effective? These are challenges we have to tackle. Our company inin our materials. Nevertheless, many requests are concerning

SMIC CSR REPORT 2021

SMIC CSR REPORT 2021

14

Moving analysis from understanding
the current situation to creating the future
Previous analysis meant primarily measuring the amount of the target material. We will broaden our analysis service to be consistently consciousness of improving at the technological level and the introduction of new analysis facilities to achieve a sophisticated analysis of what ourcustomers’ pain points and analysis of a high degree of social contribution to assist research and development for corporations.

A corporation with high quality and reliability that makes acontribution to the maintenance and prevention of polluting
the Earth environment
Environment
analysis

fostered over 50
years

Non-ferrous
metal analysis●Proper power of

proposal

Analysis ofregulated materials
such as the restriction of hazardous
substances●Diversified

equipment

Satisfying the desire to know, IAS can now
specify the structure of components thatwere unknown due to our previous analysis.

TOPICS 3

Industrial Analysis
Service
Analysis to create the future
Cerebrating the 50th anniversary

Surface analysis
Organic andinorganic compounds
Structural
analysis●Empirical value

Analysis using high performance analysis equipment LC/FTMS (Orbitrap)
Orbitrap is a piece of high-performance analysis equipment specialized in structural analysis of desired components.
IAS’ previous analysis method (equipment) was limited to narrowing down the candidate components to a few hundred kinds.
By utilizing orbitrap, it is possible to specify what exactly this desired component is.

With previous analysis method:

Industrial Analysis Service (IAS) will have its 50th anniversary on 8 February 2022. The
research department of SMIC branched off to form IAS. By applying high-level analysis technology on non-ferrous metal materials, environment, the restriction of hazardous substancesthat have been fostered, it will develop analysis services in new fields.

Unable tospecify

Unknowncomponent
Able tospecify!

With orbitrap:

What can be understood once components are specified
History of Industrial Analysis Service

2020

Start surface analysis
business

1972

Former name
SMIC’s Solder material
Research department

Establishednon-ferrous metal analysis businessStart various environmental analysis
businesses

Corporate changes

Structural analysis of the components in chemicals
Confirmation of differences between products performance■ Structural analysis of decomposition products and impure substances● Investigation into the causes of failures● Confirmation of unintentional present components
■

2005

2019

Limit on using the restriction of
hazardous substances
Start material analysis business(Facilities installed in Japan for the first time)

Start organic substanceanalysis businessSupporting product research and development, acquiring detailed information andspecifying the causes of failure may improve production technology and lead to thedevelopment of new products.

Social changes

1967

Basic Law for Environmental
Pollution Control

2006

Execution of EU restrictionof hazardous substances

To meet further needs
We will continue to introduce cutting-edge analysis facilities based on our philosophy of more accurate and faster to continue meeting customers’ need for analyses

1970

Start so-called “Pollution Diet”

15

SMIC CSR REPORT 2021

of higher accuracy and quicker delivery. At present, following orbitrap (for organic compounds), we introduce “Laser Ablation – ICP-MS” that enables depth direction
analysis and without pretreatment for inorganic compounds and to apply for surface analysis.

SMIC CSR REPORT 2021

16

TOPICS 4

Measures for COVID-19
Considering business continuity as a social responsibility for manufacturing companies, theSMIC Group has been promoting BCP (Business Continuity Plan) measures. Even in the
COVID-19 era, we have been implementing various continuous and advancing efforts sincelast year to achieve business continuity based on the above philosophy.

Our system to deal with the emergence ofpeople who tested positive for COVID-19.

New way of communication through remote technology

We have established guidelines and systems at the time of the

We continued smooth business operations inspite of the challenges to have in-person meetings with customers or conference with a large

emergence of people who tested positive for COVID-19 to deal withnumber of people by promoting new ways of communicating through the utilization of remote technology in various areas.

the situation swiftly. Utilizing the business continuity plans, in case oflong absence of employees, we are prepared to continue to provide

Distribution of product demonstration and experiments to customers through the live streaming system

customers with products.

System organization chart in responce to positive COVID cases
Establishing an organization and internal decontamination team, we are doing ourbest to conduct a swift response and field restoration.
Contact

RequestInstruction

Health institution
Decontaminationcompany
In-house
decontamination team

Emergency
response
core team
Progress
reportResponse
instruction

Situation analysis
Response instruction

Outbreaknotification

Person in charge ofthe outbreak site

Emergency
response
sub team

Employees

Customers

Establishment of a system that can continue
business by introducing a group support system
This system allows the smooth distribution of the right people
with the appropriate skills and techniques in the right jobs
among our groups companies. We do our best to make aneffective use of our skills and techniques to meet social needs
and to maintain employment.

Contact

Promotion of telework and enhancement of split shifts

We have been taking measures to protect our employees’ health and safety such as supporting early workplace vaccinations, infection prevention andmaintaining social distance implemented from last year and intensifying preventive measures through the introduction of new machines.

SMIC Group made efforts to mitigate the COVID-19 infection risk insummer by providing workplace vaccination opportunities to those
employees and their families who hope to get vaccinated.

17

SMIC CSR REPORT 2021

Remote audit through the live streaming system
As for the annual customer audits that we conduct manytimes during the year, it has become possible to conduct a
remote audit without customers coming to our offices
through the live streaming system. As for the internal audit,
it has become possible to do so without moving aroundsites, which has led operations to be more efficient.

Instruction

Efforts towards preventive measures

We support vaccination by collaboratingwith industrial doctors.

COVID-19 forced us to change our sales methods. It wasindispensable for customers to come to our company andconduct product demonstrations and experiments when wesell automated solder equipment. COVID-19 made it difficult
to do so. It has now become possible to do these things
remotely through the use of the live streaming system.

We have intensified our preventive measures
such as sterilization, maintenance of social distance,and movement restriction.
Introduction of non-contact
instrument for measuring bodytemperature at the entrance

Promotion of air ventilation
through CO2 monitoring

We expanded the eligibility of telework employees and strengthened the security measures of telework. We also tried to limit the negative
effects in case of the emergence of staff infected with COVID-19 by enhancing the distribution of offices and the introduction of flex time.

Remote sales through web meetings

Enhancing the distribution of offices

We have introduced individual separate booths tomeet the increase in demand for meeting rooms.

We distributed our sales and back-office departments between the head
office, Soka segment, and Tochigi segment. In addition, we are dividing
employees into groups by building and rank at each site.

SMIC CSR REPORT 2021

18

E N V IR ON M E N T

Environment

Efforts to achieve a
Zero-Emission society throughOur Environmental Vision 2050
It is important for us that we address global environmental issues

Environmental Policy

contamination) as critical issues deeply connected to the very

Environmental
Vision 2050

existence of humanity, and a common mission for all of us. We will

THE THREE GOALS IN SOCIETY(such as global warming, acid rain, soil pollution, and water

ENVIRONMENTAL
PHILOSOPHY

We believe conservation of the global environment is the shared mission of all humanity. Based on our mission and withthe purpose of realizing a sustainable society, we strive to harmonize our business activities with the global environment, and make every effort to protect our rich nature and diverse ecosystems.

realize a zero-emission society and contribute toward building asustainable society through our business activities.

1 Attain A LOW CARBON SOCIETY
Taking on the challenge of building a zero-greenhouse gas society
Promoting energy saving in our corporate activities

2 Attain A CYCLICAL SOCIETY
Conserving global resources through recycling

Environmental Administration Structure
We established the Environment Committee as an organization to takemeasures necessary for reducing our burden on the global environment.
The committee deliberates on the formulation and implementation of plans
related to pollution prevention and environmental conservation. Every year
at the Management Committee, we identify environmental risks and opportunities, and decide our environmental activity policies based on items
identified.

Environmental Organizational Chart
President
Management Committee

Operating Officer
Proposals

Emergency
Reports

OrdersCSR Promotion Headquarters

3 Attain a society that lives in
HARMONY WITH NATURE

Conserving biodiversity and endeavoring to realize
a society with zero-use of harmful chemicals thatpose a risk to the environment

SecondEnvironmental Plan
(FY2020 – FY2030)

Efforts towards
a carbon neutral business
Reduce CO2 emissions from level measured
in FY2013 (17,328 t-CO2) by 25% by FY2030

Environmental Management System
We defined an environmental philosophy and environmental policy thatserve as the guiding principles for environmental activities and built anenvironmental management system based on ISO14001, so that we canconduct PDCA. With regard to our four priority themes relating to the environment (reducing greenhouse gases, reducing waste, reducing harmful
chemicals, and nature conservation activities), each site and business unit
both in Japan and abroad set annual goals and action plans, and conduct
activities aimed at reducing our environmental footprint.

Environmental Measures Department
Reports

Requests

Requests

Domestic Sites

Overseas Sites
Committee at each site

Environment Committee

Health & Safety Committee

Disaster Prevention Committee

Environmental Risk
We determine various environmental risks such as climate change problems and pollution caused by waste, sets strict voluntary administrative
standards for preventing environmental accidents and pollution accidents,
and takes various measures to address these in conducting business. In
order to minimize damage expected in the event of an emergency, we conduct emergency response drills once per year. In FY 2020, we did not havea single environmental accident or pollution accident. We will continue totake preventive measures against environmental accidents in the future.

Environmental Footprint Material Balance
INPUT

OUTPUT

Raw Materials

13,258 t

Water Supply

460,919 m3

EnergyGHG(All domestic bases)

16,921 t-CO2

Scope 13,129 t-CO2

Scope 2

13,792 t-CO2

Drainage

456,310 m3

Electricity

33,640 MWh

City Gas

1,214 km3

BOD

1t

LPG

19 t

COD

2t

A Fuel Oil

16 kl

ChemicalSubstances

14.8 tEnvironmental Training

Promote product recycling
Develop products using 100% 3R* materials

Cut use of harmful chemical
substances to zero
Zero usage of chemical substances that impact
the human body or the environment

Conserve biodiversity
Conserve biodiversity through environmental
conservation activities
19

SMIC CSR REPORT 2021

*3R = Reduce, Reuse,Recycle

We conduct various types of environmental training, such as general environmental training (once per year), ISO14001 training (regularly), waste
management training (regularly), and emergency response training (during
emergency response drills) to raise employee awareness of the environment and to maintain and improve our environmental management system.

Environmental Audits
Compliance evaluators work with managers of related departments to
conduct environmental law compliance evaluations twice a year, in orderto check that environment-related measurements and notifications havebeen carried out properly, that there are no problems, and that measuresrequired by law have been taken. They also conduct internal audits once a
year to confirm the effectiveness of ISO14001.

*PRTR Notification Targets

Kerosene

18 kl

Final Amount ofWaste Disposed

0.9 t

Gasoline

87 kl

Amount Recycled

935 tLight Oil

29 kl

ChemicalSubstances

853.7 t*PRTR Notification Targets
Intake/output diagram of Tochigi Segment, which accounts for the majority of all our Japanese bases

SMIC CSR REPORT 2021

20

E N VI RO NM ENT

Environment
Greenhouse Gas Reduction

Waste Reduction/Recycling

We track our energy usage and greenhouse gas emissions by taking quantitatively monitoring and measuring the en-

CORE PRINCIPLE

CORE PRINCIPLE

vironmental footprint caused by its business activities, and promote energy conservation and CO2 emissions reduction

We conduct waste reduction and recycling activities based on the principles of 3R (Reduction, Reuse, Recycling).

activities to prevent or mitigate global warming.

Reduction of greenhouse gas emissions (Scope 1, Scope 2)

SMIC Group’s Solder Recycling System

We have improved work efficiency in its factories,

In cooperation with TAK-G, our affiliate company, we have been recycling solder for about 40 years.

IMPROVEMENTS(Tochigi Segment)

PREDICTED ANNUAL
POWER SAVINGS (kWh/year)

Conservation of energy of air compressors (fixing air leakage and improved
use of devices to reduce air consumption)

9,017

ergy as part of its efforts to reduce greenhouse gas

Reduction in the use of standby mode (turning off power when local exhaustfans are not operating)

12,799emissions. In FY2020, we reduced our greenhouse

Conversion to LED lighting

45,641

gas emissions by 270.3 t-CO2.

Improving facilities (conversion to invertor of oil hydraulic pump and chiller
circulation pump)

4,743

Conservation of energy by setting calendar timers on air conditioners

4,594

We assumed responsibility as manufacturer to meet stakeholders’ expectation as material manu-

Stop operating sintering furnace on the weekend

161,089

facturers when recycling minerals was not popular. We will continue to actively promote investment811

in human resources and technological innovation toward further development of a system in which

upgraded machinery such as air conditioners andtransformers, converted to LED lighting in offices andfactories, and promoted other activities to save en-

Renewal of water-supply pumpWith the emergence of lead-free solder in the 2000s, an old era with two elements, tin and lead,
into a new era with three elements, tin, silver, and copper. Today, we use more elements. Becauseof this development, it was required to install facilities to deal with multiple elements for recycling
solder. As a result, we developed special technology that limited the emergence of hazardous
materials to the absolute minimum and a solder recycling system that could reproduce high-purity
solder in our own refining method. The importance of recycling solder is increasing nowadays, andthe amount of recycling has doubled in the last few years, and this is expected to continue.

*Figures in FY2020

Domestic Sites: Reducing greenhouse gas emitting activities

Energy usage (kl)(t-CO2)7,300

350.00304.94300.00270.3
236.49250.00245.266,900

100.00

6,800

50.00

6,700

0

6,600

2016

2017

2018

7,243

7,093

2019

2020

1.30

1.275

1.25
6,903

1.235

1.233

1.20
6,830

1.155
6,665

2016

2017

of limited mineral resources and the control of air pollution.

1.40
1.35

7,000
141.87

Output Rate (kl/¥10,000,000)

7,200
7,100

200.00150.001.376

we collect the used solder products of our company and recycle them and the realization of recycling solder with multiple elements in order to achieve a sustainable society with effective utilization

Domestic Sites: Energy usage and revenue output rate

2018

2019

2020

Flow of the solder recycling system❶ Collecting used solder and leftover solder material❸ Reproduction as solder materials

We collect the paste solder leftover

All high-purity solder materials re-

1.15

material and dross that emerged

produced by TAK-G are returned to

1.10

from soldering equipment (oxide

SMIC where they are processed to

1.05

formed by tin and lead in the solder)become various new products de-

1.00

left after being used by our custom-

pending on usage.

ers as well as leftover material fromprocesses at SMIC.

Scope 3 Emissions
We calculate our annual consignment volume of cargo in Japan from thetransport segment and distance for each product category, and monitor
and report the items required by Scope 3 of the CDP (Carbon Disclosure
Project). In FY2020, our emissions in Scope 3, Category 9 (downstream
transport) of the CDP were 1189.7 t-CO2. We also do monitoring of CO2
emissions related to employee commutes. By aggregating truck packages
used for product shipping, we are reducing CO2 emissions in our transportation.

❷ High-temperature reduction treatment and electrolytic refining treatment

Domestic Sites: CO2 emissions and revenue output rate
CO2 Emissions (t-CO2)

Output Rate (t-CO2/¥100,000,000)

1,400

4
1,221.9

1,200

1,110.9

600

833

2.28
1.93

1.66

2

400

1

200
0

21

SMIC CSR REPORT 2021

2016

2017

2018

2019

2020

environmental pollution by developing and using an incineration furnace that restrained
exhaust gas and hazardous materials in accordance with the Act on Special Measures

2.06

1.63

Collected dross and paste solder leftover material are heated to a high temperatureand collect solder with reduced oxide. For this process, we make efforts to prevent

3

958.3

1,000
800

1,189.70concerning Countermeasures against Dioxins.

Some solder with high temperature reduction treatment contains multiple elements such as bismuth and nickel. In order to eliminate these and increase purity,
we implement an electrolytic refining treatment to separate only the targeted metal on a stripping sheet by taking advantage of difference in ionization tendencies.

Incinerator for high temperature
reduction treatment

Electrolytic refining equipment

SMIC CSR REPORT 2021

22

S OC I E T Y

E N VI RO NM ENT

Environment

Working with Customers

Efforts to reduce waste emissions

Securing the quality and safety of our products

We made efforts to reduce waste emissions since 2013, such as recycling solder, collecting plastic byproducts, and recycling bearing product scraps. We have
now achieved a recycling rate of 99% of waste.
Domestic Sites: Total Waste Emissions and Recycling Rates
Total Waste Emissions (t)

96.5

1,400

800

99.9

1,260.9

1,200
1,000

99.9

1,028

1,071.8

967.3
73.7
757.5

1,070.7

99.9

1,297.2
1,296.3 1,149.7
1,259.7
1,148.9

Paper

400

Waste Plastic

51% (478.73t)

Waste Oil

200
0

Metal Scraps

940.6t6% (55.15t)

40

1. We shall comply with related laws and regulations as well as customer demands, and improve customer satisfaction by supplying products and services
with consideration for quality and safety.

FY2020:Total Waste
Emissions

6% (52.37t)

60

600

Quality and Safety Policy

3% (32.28t)
80

940.6

2014

2015

2016

2017

2018

2019

Overseas Site Data and Initiatives
Overseas Sites: Total Waste Emissions and Recycling Ratesites alike based on four priority themes related to the environment (reducing greenhouse gases, reducing waste, reducing harmful chemicals,
and nature conservation activities). This includes collecting and recycling
product containers and packaging, as well as reducing power usage bymanaging operations of manufacturing equipment. We hold meetings with

Total Waste Emissions (t)

400.0
343.1
300.0

2000

322.0
66.7

Recycling Rate (%)

80

367.2

302.2

50.7

66.2

79.3
263.0

60

100.0

20

0

0

2017

2018

2019

2020

Reduction of harmful chemicals
Our development, purchasing, manufacturing, and environmental departments manage chemical substances based on
our environmental management system to protect our health and the environment and to realize safe and secure social

CORE PRINCIPLE

life. In particular, per our plans we are implementing a reduction or prohibition of the use of chemicals that have a large
environmental footprint. We also define reduction goals every year and make focused efforts.

Quality Audits

We have obtained the international standard ISO9001 at 21 manufacturing

We conduct internal quality audits twice per year in order to maintainsites both in Japan and abroad. Additionally we have obtained the auto-

IATF16949 certification, in both our solder division and bearings division

motive industry quality management system certification IATF16949 at 16

at our Japanese manufacturing sites and sales locations including groupsites in Japan and abroad.

companies. We also conduct regular quality audits once per year at all of

Initiatives to Improve Quality

Preventing Quality Defects

To eliminate defects in our deliveries, processes, and acceptences, SMIC

We established our affiliate company Industrial Analysis Service (IAS) in

has formulated annual quality activity plans and requires each business1972 for defect prevention purposes. As a third-party institution, IAS con-unit to set its own goals to work towards reducing defects. In case of aducts inspection and analysis processes that are typically done internally.

defect, we compile recurrence countermeasures, incorporate analysis re-

We decide pass or failure results based on the results of that analysis,

sults into our improvement plans for the following year, and make quality

which helps to prevent cheating and false pretenses in the inspection pro-

improvements continuously according to the PDCA cycle. We also givecess.

quality excellence awards to overseas factories that have made excellent
achievements in order to elevate the level of quality of the entire group.

Initiatives to Improve CS
We are striving to drive CS (Customer Satisfaction) through working to im-

Emissions and movement of PRTR law-specified chemicals

Soil and groundwater pollution countermeasures

We comply with the PRTR law to track the amount of applicable substances

We are taking the following initiatives as soil and groundwater pollution

to customers, engaging in joint development, participating in technology

we handle, emit, and transport.

countermeasures. We also work to prevent pollution by conducting emer-

seminars and technology conferences, and exhibiting at exhibitions. These

gency response drills, as well as risk training to prevent leaks of polluted

efforts have been highly evaluated, and in FY2020 we won the awards

water.

shown on the right.

Emissions and movement of PRTR law-specified chemicals
14,84615,00012,00014,841

ChemicalEmissions(kg)

10,910ChemicalTransportation
(kg)

9,474
9,000

8,338

Soil

Water quality
and groundwater

6,000

0

Voluntary component analysis (once per year)

0

0

0

0

0

2016

2017

2018

2019

2020

SMIC CSR REPORT 2021

Rainwater

prove our sales activities and technology innovation by making proposals

Intel Supplier Continuous
Quality Improvement Award

ROHM CO., LTD.
Excellent Quality Award

Product Chemical Management

Nissan Motor Corporation Certificate
of Appreciation for Supplier Score
Card Excellent Quality

Final drain and groundwater inspections (chlorine residue, pH,

We conduct management of chemicals based on our environmental man-

Per REACH rules, we have completed full registration of the chemicals we

etc. conducted daily)

agement system, in order to comply with the RoHS directives and REACH

handle and acquired SDS from our suppliers, in order to relay information

Component analysis and measurement of drain water andrules, which are European chemical regulation laws made to protect hu-

to customers based on Articles 31 and 32. We supply customers with SDS

man health and the environment. We have laid out a dedicated team sys-

& GHS labels, compliant with GHS (Globally Harmonized System of Classi-

tem and are complying with chemical inspections of our products.

fication and Labelling of Chemicals).

groundwater (conducted monthly)

3,000

23

Obtained Quality Management System Certification

our manufacturing sites both in Japan and abroad.
40

tion suitable for their region and circumstances.
2016

3. We shall set quality policies and targets for activities, conduct regular reviews and as necessary, and evaluate opportunities for improvement (intervals,
frequency, and circumstances) of the management system.

53.3

each overseas site once annually in order to ascertain their annual plan andinitiatives, so we can promote initiatives aimed at environmental conserva-

2. We shall construct, implement, and maintain a quality management system in accordance with our established quality manuals, and continuously improvethe effectiveness of this system.

4. We shall evaluate the necessity of changes to our quality management system, and if changes are necessary, we shall review our system to maintain its
adequacy in light of our management philosophy.

18% (171.74t)

2020

We conduct environmental activities at its overseas sites and domestic

we strive to improve the quality of our products throughout the product lifecycle.

16% (150.35t)
Sludge

99.4

935.4

933.1

We have defined a Quality & Safety Policy, and in order to enable customers to use our products with peace of mind,

Other

Recycling Rate (%)

Recycling Output (t)99.9

CORE PRINCIPLE

Domestic Sites: Breakdown of Waste Emissions

Voluntary component analysis (twice per year)

SMIC CSR REPORT 2021

24

S O CIET Y

Working with SuppliersWorking with Employees

Procurement Activities

Our Principle on Human Resources

We comply with laws relating to procurement and automotive industry fair trade guidelines set forth by METI (the Japanese Ministry of Economy, Trade and Industry) in order to define the basic stance of our purchasing policy (practice

We consider our employees to be important assets. In light of this, we respect the human rights and personality

CORE PRINCIPLE

of each individual employee, and are striving to build workplace environments where a diverse range of humanfair and faithful procurement with an emphasis on respect for suppliers), as well as our CSR procurement policy whenresources can realize their potential.

conducting procurement from suppliers.

CORE PRINCIPLE

Our basic stance toward our suppliers is to request they follow the requirements of IATF16949, ISO9001 and ISO14001,
as well as item 14 of the supply chain assessment guidelines defined by the RBA such as observation of law and social
norms and the promotion of a business continuity and recovery plan in case of emergency.
We will continue to observe procurement compliance and work towards establishing a safe and secure supply chain inorder to contribute to society through procurement and build good relationships with our suppliers.

CSR Sourcing Policy
1

Senju Metal Industry Co., Ltd. "Quality and Safety Policy"

2

Senju Metal Industry Co., Ltd. "Environmental Policy"

3

Senju Metal Industry Co., Ltd. "Purchasing Policy"

4

Senju Metal Industry Co., Ltd. “Basic Stance Toward our Suppliers”

5

IATF 16949 requirements that must be considered for deliverables

6

Environmental management requirements that must be considered
for deliverables

CSR Procurement Initiatives
Our procurement departments and the related development and manufacturing departments conduct audits of suppliers both in Japan and abroad,according to yearly plans. In FY2020, as in previous years, our suppliers in

Respect for Human Rights
Basic policy on Human Rights and Labor

Fair Evaluation and Our Personal Statement System

We define our policy and goals for human rights and labor in its Basic CSR

We conduct human resource evaluations twice a year in order to apply the

Policy and Practical CSR Goals, respectively. Embracing the principles ofresults to proper guidance for capacity development and human resource

Ability, Integrity, and Fighting Spirit noted in our management philosophy,

training. Through this process, we fairly and justly evaluate the work perfor-

we are striving to build an environment where employees can work en-

mance abilities of employees, and reflect our findings in promotions, raises,

thusiastically. Based on the belief that harassment absolutely must not be

and bonuses. We have also established a personal statement system withtolerated, we conduct harassment prevention training to better educate

the purpose of improving our workplace environments. Individual employ-

our employees.

ees answer an annual questionnaire of what they think about and what
they want from their jobs and workplace environments. Through these ini-

Japan and abroad cooperated with our supply chain assessment, and no

tiatives, we are working to make improvements that will enable employees

problems were found.
Even under the negative influence of COVID-19, we conduct online meetings with suppliers and endeavour to maintain close communication withthem.

to better fulfill their potential.

Human Resource Training
We encourage all employees to constantly work to obtain new knowledge,pose of improving quality and skill of soldering among employees. While

with the aim of cultivating professionals who are capable of making rationalsuch a program exists for employees, we aim to expand training to include

decisions from a broad perspective. We conduct appropriate training at ev-

a soldering school for our customers as well, as an effort to establish theery level and separate training for all employees, having examined effective

new culture of SMIC Group firmly.

methods based on training implementation regulations.

Basic Stance Toward our Suppliers

Since FY2020, we have conducted soldering aptitude tests with the purCompliance with laws and social norms

We have established a scholarship fund grant program with the purpose of2

Consideration of human rights and laboraiding employees as they advance to undergraduate or graduate university

3

Consideration of Health & Safety

4Prohibition of bribery and fair trade5

Healthy business management

have built close relationships with customers in the electronics industry.

6

Provide quality, timely delivery, and a steady supply

Since 2014, we have been a member of the RMI (Responsible Minerals

7

Preparation for emergency and business continuity

programs to obtain more advanced and sophisticated knowledge and skills.

Initiatives in Responsible Mineral Procurement

9

Promotion of responsible mineral procurement

Moving forward, in order to conduct responsible mineral procurement as ameans to address a wider range of risks than the conflict minerals we haveaddressed so far, we will call on all of our supplier refineries to renew their

11 Emphasis on provision of information

RMAP certification, with the aim of sustaining a safe and secure supply

12 Information security

chain for SMIC products.

SMIC CSR REPORT 2021

we also offer Assistance for Acquiring Special Skills.
Soldering Aptitude Tests
Rank-Based Training

sible Minerals Assurance Process) and obtain third party certification. In
February 2015, all of our supplier refineries received RMAP certification.

14 Social contribution

and support them as they obtain more sophisticated skills and knowledge,

Initiative), and have urged our refineries to submit to the RMAP (Respon-

Consideration for the environment

13 Eliminating relationship with antisocial forces

In order to encourage employees to engage in voluntary self-improvement

In January 2011, we joined the RBA (Responsible Business Alliance), and

8

10 Emphasis on VE (Value Engineering) activities

25

Education Support System

1

Group Training
Upper
Management
MiddleManagement

Manager Training(Advanced)
Manager Training (Beginner)

New Hire
Employees

Evaluator Training(New
Appointees)

Mid-Career Employee Training

Mid-Career Employee (Advanced)
Mid-Career Employee (Beginner)

New Hire Employee Follow-up Training

New Hire Employee Training

Role Based Training Drills

Theme-Based
Self Education

Fieldwork
Training

Englishe-learning Conver- Overseas
sationSite

OJTCapable Manager
Basic Course(New Appointees)

Capable Manager Basic
Course(New Appointees)

Lower
Management
Mid-Career
Employees

Distance Training

Distance Training for New
Hire Employees

Soldering
Aptitude
Test

Salesperson
Training(Advanced)
Salesperson
Training(Beginner)

Technical
Sales
Position
Training

Engineer
Training

SMIC CSR REPORT 2021

26

S O CIET Y

Working with Employees
Health & Safety

Making Worker-Friendly Workplaces
We are working to build workplace environments where employees can work energetically, such as by providing sup-We have clearly stated the basic steps necessary to prevent workplace accidents, with the aim of enriching its healthport for work/life balance and conducting activities to improve the welfare and mutual kinship of employees. In addition,and safety activities. We have also established health and safety management regulations and a Health & Safety Pol-

CORE PRINCIPLE

icy, for the purposes of ensuring the health and safety of our employees, and promoting the formation of comfortable

CORE PRINCIPLE

we have taken various measures and made improvements so that employees can work with peace of mind, such as
reducing and managing long working hours by tracking working hours and hours in the office with an employee atten-

workplace environments.

dance system.
Health & Safety Policy

1. We shall enrich our health and safety activities based on the Labor Standards Act and Industrial Safety and Health Act of Japan, in order to promote theformation of comfortable workplace environments.
2. The company shall establish a health and safety management system, and actively promote necessary measures though its organizations and managerial
posts in order to prevent labor accidents.
3. Employees shall comply with the law and rules established by the company, and work to prevent labor accidents and promote maintenance of health.

Labor Health & Safety Management

Safety Training

Based on the law, we have established health and safety management

We regularly conduct the following training for employees, so that they cansystems according to the scale of each site. We prepare annual activity

learn knowledge and skills relating to health and safety.

plans that define activity goals and priority activities, and conduct health●Training at the time of hiringand safety activities based on these plans.

●

Education and training when responsibilities are changed●

Special training for employees doing hazardous or harmful work●

Foreman training (including refresher training for employees who
have been in-training foreman for five years)●

Other health and training for supervisors●

Health and safety training to improve health and safety standards for
employees doing hazardous or harmful work●

Training for qualified personnel (forklift drivers, etc.)

Incidence of Serious Labor Accidents
We have kept our rate of labor accidents (accident rate) below the averagefor the entire Japanese manufacturing industry.

Accident Rate

FY2016FY2017FY2018FY2019FY2020

0

0.47

0.49

0

0.92

Supporting Work/Life Balance

Welfare and Social Interaction For Employees

We have established childcare leave and family care leave systems based

Our in-house organization Senyukai holds group and recreational activities

on the Child Care and Family Care Leave Act, so that employees can main-with the purpose of encouraging social interaction among employees. We

tain work/life balance and work with peace of mind. We have also taken

have also established a Labor Committee with the purpose of improving

measures to reduce prescribed working hours at the request of employees.

workplace environments and en-

This system is in fact used by employees who have small children so thatsuring safety at work as the rep-they can balance childcare with their career.

resentative of employees. This
committee actively contributes
to realizing safe, worker-friendly
workplaces and the developmentof the company.

Diversity
We respect the diversity of differences between individual employees, such as ethnicity, gender, work history, age,values, family structure, and lifestyle. By utilizing these differences, we can effectively adapt to the constantly changing

CORE PRINCIPLE*Rate of Labor Accidents: (Time off work accidents + No time off work accidents) / Total Working hours × 1,000,000

realizing workplaces where employees feel happy, can stay longer, and do rewarding work with peace of mind.

We conduct health examinations and has established a consultation count-Support Suited to Each Workplace

er in accordance with the law. In order to reduce the burden of personal

At our factories, we supply employees with salt-fortified foods as a pre-injury and illness suffered by employees, we have established a system

ventive measure against heat stroke in summer, and also milk as a healthfor employees to enroll in cancer insurance at the company's expense.

measure, in order to maintain their health and to support their ability to

We also have a system for the company to bear part of medical expenses

work safely.

individual burdens for employees.

General Health Examinations

1 time/year

Lifestyle-related Disease Medical
Examination

2 times/year

27

SMIC CSR REPORT 2021

Details
Implementing general health or lifestyle-related disease medical examinations for employees
Implementing guidance on lifestyle improvements for those who desire it.

Special Health Examination

2 times/year

We conduct health examinations with special items for employees engaged in hazardous
work as stipulated by law.

Stress Checks

1 time/year

Complete questionnaires and offer advice to encourage individual mental health care awareness and lifestyle changes.

Cancer Insurance System

25 years old
or olderThe company pays the insurance premiums for employees 25 years of age or older who enroll incancer insurance, thereby reducing the burden of unexpected cancer-related diseases on employees.

Medical Expense Reimbursement System

As needed

The company bears part of the cost of medical insurance required for treatment of illness andinjury suffered by employees in their private lives.

Consultation Office

Any time

Workplace and job counseling with vocational counselors.

WelfareOther

Frequency/Period

Promoting Advancement of Women

Hosting Diversity Study Groups

We have formulated a general entrepreneur action plan based on the Act

At diversity study groups, we set themes each time with a focus on differenceson Promotion of Women's Participation and Advancement in the Workplace,among employees and have the participants speak with each other about theirand is working to promote the advancement of women.

experiences and circumstances. This allows participants to share their own ideas,
advice, and efforts, so they can make new discoveries. These study groups also

incurred at a medical institution for one month. This helps to relieve the

HealthManagementbusiness environment and diversifying needs of customers, and believe in the potential of each individual employee sothat they can demonstrate their abilities. In order to make this possible, we are addressing diversity, with the aim ofHealth Maintenance

Various Systems

Experience event of getting bamboo shoots sponsoredby Senyukai on the premises of Kinugaoka Factory,

Training & Seminars

offer a chance to build more worker-friendly environments and allow for deeper

We regularly host training and seminars according to the needs andmutual understanding between employees and between the company andcircumstances to promote the ambition of our employees.

employees. In FY2020, exploiting COVID-related movement restrictions to ouradvantage, we were able to hold study meetings across offices by utilizing the TV

Employment of Disabled People

conference system. These diversity study groups held six meetings, with a total

We have long worked to employ disabled people, and has developedof 55 participants, exchanging opinions on hardships and efforts on telework

workplace environments where people with disabilities can work

employees and employees

enthusiastically and with peace of mind.

who are currently bringing
up children.

SMIC CSR REPORT 2021

28

S O CIET Y

Working with Employees

Activities of Social Contribution

Employee Data

Natural Environment Protection
FY2016FY2017FY2018FY2019FY2020

Employees
In Japan

1,584

1,694

1,731

1,747

1,761

Overseas

601

643

627

631

596

2,185（37.3%）

2,337（35.0%）

2,358（36.0%）

2,378（36.8%）

2,357（37.5%）

Male

—

—

1,233

1,242

1,201

Female

—

—

569

533

530

In Japan

—

—

518

488

468

Overseas

—

—

38

115

158

Total *Numbers in parentheses are the ratio of women——

Total *Numbers in parentheses are the ratio of womenArakawa waterfront supporters

Moka environment partnership meeting

Headquarters ︱ 2020.11.7 ︱ 6 people

Tochigi Segment ︱ four times/per year ︱ 67 people

Conservation of Satoyama [an area where farmland meets the forest] Volunteer

Co-sponsoring a grouse protection fundKansai Segment ︱ 2020.6.28 ︱ 5 people

Senju System Technology Co., Ltd. ︱ 2021.3.16

Kureha Hillside Bamboo Forest Maintenance Volunteer

Donation of recycled materials to city hall

Senju System Technology Co., Ltd. ︱ 2020.11.1

Senju Solder (Phils.) Inc. ︱ 2021.1.30

Regular Employees

Contract Employees

556（50.2%）603（56.6%）626（56.4%）

Managers (In Japan)
Male

104

100

105

116

119

Female

5

5

6

7

9

4.59%

4.76%

5.41%

5.69%

7%

Male

—

—

—

74

47

Female

—

—

—

42

38

Ratio of Female Managers

—

—

—

36.21%

44.7%

Ratio of Female Managers
Managers (Overseas)

Recruiting Situation
Male

34

44

79

47

23

Female

14

16

23

18

19

Total

48

60

102

65

42

20.8%

10.0%

15.6%

16.9%

17.59%

8.65

7.4

9.8

8.5

9.08

Average Rate of Paid Leave Taken

57.50%

59.41%

62.63%

62.49%

58.2%

Employees Taking Child Care Leave

11

8

12

10

22

Return Rate After Child Care Leave

100%

100%

91.70%

100%

100%

Employees Taking Family Care Leave

0

3

1

0

1

Return Rate After Family Care Leave

100%

33%

100%

100%

100%

14.2

13.7

15.6

14.4

9.03

21

18

17

16

16

2.6%（2.0%）

2.2%（2.0%）

2.2%（2.2%）

2.1%（2.2%）

Turnover (3 years after hiring)
Various Leave Systems
Average Days of Paid Leave Taken / Year (Days)

Labor Hours
Average Overtime Hours / Month (hours)
Employment of Disabled People
Number of Disabled Employees
in parentheses are
Ratio of Disabled Employees *Numbers
the legal employment ratios

29

SMIC CSR REPORT 2021

2.02%（2.3%）

SMIC CSR REPORT 2021

30

S O CIET Y

Activities of Social Contribution
Culture / Education / Community Outreach
Providing solder materials for industrial arts at junior high school

Co-sponsoring illumination operations around the East exit of Yatsuka Station

Book donations for children in poor areas

Co-sponsoring COVID-19 support event

Headquarters ︱ 2020

Soka Segment ︱ 2020.12.6

Senju Metal (Shanghai) Co., Ltd. ︱ 2020.12.24

Senju（Thailand）Co.,Ltd. ︱ 2020.5.3. ︱ 10 people

Co-sponsoring an illumination event

Co-sponsoring the kids dance of Kumano Shrine

Donation to an organization for people with disabilities

Koriyama Sales Office ︱ 2020.11.13

Senju System Technology Co., Ltd. ︱ 2020.8.25

Senju Electronic (Taiwan) Co., Ltd. ︱ 2020.3.28

Donation to organization supporting women
Senju Electronic (Taiwan) Co., Ltd. ︱ 2020.11.13

Myoko Cafe
The Adachi-ku organization for people with disabilities Yu-Ai Kai* operates cafés and shops at various
facilities in Adachi-ku, Tokyo and provides people with disabilities with places to work every day.
Myoko Café located in a corner of the main office of SMIC is one of them accepting people with intel-

Sekido Museum of Art
Sekido Museum of Art inside the SMIC headquarters building was established by the Sato Artcraft Research & Scholarship Foundation in April 2006, with the purposes of promoting cultural exchange andmutual understanding between countries and refining culture in Japan, both through arts and crafts.
Works in the museum's possession were built up from the collection of the late Honorary Chairman
Senju Sato, and the museum's name Sekido is in fact the alias of Mr. Sato himself.
Sekido Museum of Art conducts activities to help everyone in the community enjoy fine art, including
special exhibits with a focus on works in the museum's collection, such as Concert in the Museum
events.

31

SMIC CSR REPORT 2021

lectual disabilities using the Adachi-ku welfare facilities for people with disabilities. We provide themwith opportunities to connect with society through work. The Jobs at Myoko Café increases theiropportunities to move around on public transport for themselves. We support them in fostering positive and independent characteristics by doing each and every detailed operation such as exchanging
messages over the telephone, café operations, and bread sales and to acquire more sophisticatedsocial skills. SMIC affirms the activities. Since 2005 when the former mail office building was rebuilt
into the current one, we have been supporting their activities by providing the café space, paying fortheir utility costs, and ordering drinks when we have internal meetings.
*This is an organization established about 40 years ago. Its aims are for groups of families of those who have impaired eyesight, hearing impairment, trouble in arms and legs, intellectual disabilities, and who became disabled in the middle of their lives due to accidents or illnesses cometogether to understand each other’s disabilities, to promote sociability, and to provide places to work.

SMIC CSR REPORT 2021

32

M A NA GEM ENT

GovernanceCorporate Governance
We will develop and operate its management system and construct its corporate governance system, while maintaining

BASIC POLICY

sound, fair, and highly transparent management, and adapting to the changing times. The basic policy of the group is tofulfill its explanation responsibilities by disclosing information in a fair manner to all stakeholders.

Corporate Governance System
We are working to augment our governance through our meetings of shareholders and board of directors based on the law, as well as by assigning corporate
auditors, inspectors, and tax auditors, and by developing the CSR Promotion Headquarters, Management Committee, and Strategy Committee.

Senju Holdings Co., Ltd.
General Meeting of
Shareholders
Appointment/Dismissal*1: Includes operation of subsidiaries*2: Includes monitoring of subsidiaries

Disclosure of Information

Senju Metal Industry Co., Ltd.

Auditors
AuditsBoard of Directors

Inspectors
ReportPresident

Code of Ethics

Appointment
DirectProposal
ProposalApproval

ReportManagement Committee*1

Submission and Reportingof Important Matters

Information System
Division
Direction/
Supervision

President

Ryoichi Suzuki

Representative
Director

Tomohide Hasegawa

Executive Director

Yuji Kawamata

Board of Director

Yuka Sato

Board of Director

Tetsuya Okuno

Corporate Auditor(External)

Shoju Sato

Inspector

Kazutoshi SakaguchiCounselor

Motoyuki Ohtake

Counselor

Yasuhiro Ishii

Counselor

Setsuo Tanaka

Deputy Director

Toshimaru Sumiyashiki

Submission and Reportingof Important Matters

Other Guidelines

Bearings and Special
Products Department

AuditsDevelopment Technology
Department

Production Technology
Department

International Business
Department

Audits

Quality Assurance
Department

Finance Department

General Affairs Department

AuditsIndustrial Analysis
Service Ltd.

Overseas Affiliates

EuropeSafety Assurance Export Management OfficeDirectDirectSubmission and Reporting of Important Matters

North America

China

Senju Giken Co., Ltd.

Southeast Asia

our employee work rules. Employees faithfully follow these policies, goals, and rules, and work to maintain order within

Status of Compliance Activities

Business Audit Office *2

Senju Electronic Corp.

Management
Committee

with fair trade ethical principles.

DirectQuality Audit Office *2

Senju Sprinkler Co., Ltd.

Board ofDirectors

the company. The SMIC Group's Basic CSR Policy and Practical CSR Goals serve operate our companies in compliance

Environment Committee

Training Committee

Solder Department

Domestic Affiliates

CORE PRINCIPLE

Labor Committee

Industrial Machinery
Department

Operating
OfficerNamepolicy and practical goals based on the Basic CSR Policy. We have also explicitly stated the importance of compliance inDisaster Prevention
Committee

Execution of BusinessDirection/Supervision

SMIC CSR REPORT 2021  Introduction to Directors, Auditors, and Executive Officers

We consider our philosophy of management to be essential to compliance, and so has defined its basic compliance

Health and Safety
Committee

Strategy Committee
Sales Committee

Direct33

Auditors and Inspectors
We have appointed one auditor and one inspector. These officers carry out
audits of daily management activities, including the execution of duties bydirectors.
Corporate auditors and inspectors attend the Board of Directors, where they
fulfill their duty to prevent illegal or exceedingly unjust resolutions from being
made, as well as to ensure the conduct of activities according to the law.

Tax Audit(External)

Other Committees

Operating Officer

Direction/
Supervision

Business
Departments

Board of Directors
The Board of Director consists of 5 directors, 1 corporate auditor, and 1 inspector. It follows relevant laws and regulations as well as the Articles of Incorporation to appoint or dismiss executive officers and make resolutions on
the agenda from the Management Committee, as the final decision-making
body of SMIC business management. We have established ethical regulations
and information disclosure regulations, which are defined separately as indicators for deliberations and decisions by the Board of Directors.
Management Committee
The Management Committee consists of directors and executive officers. It
deliberates on legal matters and determines or approves important mattersin the execution of business. It also submits matters related to businessexecution to the Board of Directors that should be deliberated or decided
by the Board of Directors.
We have established various other regulations, BCP management regulations, crisis management regulations, and information security regulations,which are defined separately as indicators for deliberations and decisions
by the Management Committee.
Executive Officer System
We have introduced an executive officer system, and the executive officer
general managers appointed by the Board of Directors manage the division ofduties among departments they are in charge of. Based on the business plan of
the company, they formulate and execute the business plan of the departments
they are in charge of. As officers in charge, they give direct orders on importantmatters in guidance of the department they are in charge of.

Compliance

Challenge Proposals

Planning and Executionof Management Policy

CSR & Public Relations
Division

Audit Supervision System

Decision Making in Management

Information Disclosure
Guidelines

CSR Promotion
Division

Board of Directors and Business Execution System

Senju System Technology
Co., Ltd.

Other Asian Regions

We conduct various types of training (CSR training, environmental training,procurement policy for supplier training, safety assurance export management training), as well as internal audits, and audits of suppliers in order
to comply with various laws relating to business activities. In our internal
audits, the Business Audit Department conducts several different auditsof sites both in Japan and overseas, for the purpose of maintaining soundcorporate compliance. This includes safety assurance export audits basedon the Foreign Exchange and Foreign Trade Act, CSR audits based on the
RBA code of conduct, and information security audits of the handling ofconfidential information at all sites both at home and abroad. In FY2020,
we implemented a remote audit at domestic sites including our group companies as a measure under COVID-19. Each business unit quickly takes thecorrective measures recommended in each audit in order to make continuous improvements to our management system.

FY2020 Audits(unit: the number of actual cases)

Audit Target

Business Audits

Senju Metal Industry
Group Companies (in Japan)
Group Companies (Overseas)
Committees, etc.
Total

67
33
0
0
100

Safety Assurance
Specified Shippers
Export

35
3
0
0
38

17
3
0
0
20

Established an Internal Reporting Hotline System (Smile Mail)
We have established a dedicated internal reporting hotline (Smile Mail) to
discover misconducts and take corrective actions early on, which enables
employees to anonymously report and consult about problems involving all
employees’ human rights (harassment, etc.) and problems involving compliance (violations of laws and internal regulations, problems with corporate
ethics and social norms, etc.).
SMIC CSR REPORT 2021

34

M A NA GEM ENT

GovernanceRisk Management
PRINCIPLE ANDRISK MANAGEMENTSYSTEM

Safety Assurance Export Management
We acknowledge problems such as the proliferation of weapons of mass

agement, we have appointed the president of the company as the person

As a matter of responsibility for a company located upstream on its supply chain, we have assumed all manner of risks

destruction, preventing excess accumulation of conventional weapons, andin charge of safety assurance export management and established thelisted below. In response to this, we have established dedicated business units and committees to respond to each risk

trade wars between countries. In response, we have placed restrictions on

Safety Assurance Export Management Office under the president's pur-and are taking measures to prevent risks and minimize losses.

exports to maintain order in states of tension and comply with laws forview, and thus developed and enriched our export management system.

maintaining international peace and safety, as well as upholding the For-We also implement audit of each business unit by self-check.

eign Exchange and Foreign Trade Act. In order to implement export man-

Possible risks*Natural disasters such as earthquakes and typhoons;*Infectious diseases such as the novel influenza and COVID-19;*Information security risks such as information leaks and unauthorized access;*Export management risks including safety assurance trade;*Intellectual property risks such as patent infringement and technology leakage;*Environmental risks such as climate change problems and waste contamination;*Risks concerning human rights and labor such as harassment etc.

Initiatives Toward Business Continuity
We conduct evaluations, analysis, and countermeasures of various risks

Production backup system to ensure stable supply

to keep damage to a minimum, build up our risk management in order toenhance the potential for continuity of business, implement a system toCustomerpromote rapid recovery of important business, and formulate various planssuch as our Plan For Recovery of Equipment After Disasters. We are also

CLASSIFICATIONTRADE INSPECTIONSSHIPMENT MANAGEMENTThe Development Department classifies items

The Sales Department checks applications

When shipping using logistics, we check thatby checking against a cargo list (export regu-

and end users of exported cargoclassification and trade inspections are com-lation list) regulated by export control-related

plete, and confirm that cargo upon deliery

laws including the Foreign Exchange and For-

matches the shipping cargo and leave docu-

eign Trade Act.

mentation.

By making notifications on regulations and training, and conducting inter-

Safety Assurance Export Management Training

nal audits once pear year, we maintain regulatory compliance, and have

We conduct classification and trade inspections, as well as training on

achieved recognition from METI (Ministry of Economy, Trade and Industry)safety assurance export management for employees in charge of shipment

as a company that has developed a voluntary management system for

management. (FY2020: Conducted at 40 business units.) We also conductsafety assurance trade management.

training for top management, produce training materials that easily explain*From "Official Announcement of Companies Producing Export Management Internal Regulations"

augmenting our backup system, so that when there is a site experiencing

relevant laws, and provide training to various business units.

https://www.meti.go.jp/policy/anpo/compliance_programs_pdf/20210401_kouhyougenkou.pdf

extreme difficulty with production due to a disaster or other emergency,
we can continue production in collaboration with other sites in Japan and
Product Supply

overseas.

Product Supply

Certification

Regular Emergency Drills

Certification

We conduct evacuation drills, firefighting drills, and first aid courses (AED
SMIC Groupcourses) with guidance from fire departments and security companies, inorder to protect the life and limb of employees from disasters such as

Domestic Manufacturing Sites

Overseas Manufacturing Sites

We make effective use of our intellectu-

Patents etc. Held

al property system for the products andWe secure, maintain, and control intellectual property rights for the pur-technologies produced everyday by ourpose of protecting and increasing the value of the SMIC brand.

earthquakes and fires.

development and manufacturing divisions,

We also participate in com-ensuring appropriate security of rights andprehensive fire drills con-confidentiality. While respecting others’ducted by fire departments

intellectual property rights, we are com-with jurisdiction, in an effort

mitted to developing our original technol-

to strengthen collaboration
with local communities.

(As of May 2021)
PATENTSTRADEMARKSIn Japan

Overseas

In Japan

Overseas

515

1,690

113

421

ogies.
First aid courses (AED courses)

Information Security

35Intellectual Property

Through these activities to support ourIntellectual Property Education

business, we make further contributions

We regularly host study sessions primarily for the Technology Develop-

to a sustainable environmental society.

ment Department, take practical initiatives focused on the patent system, ompany Secret Management /C
Personal Information Protection

In light of damages suffered due to cyber attacks in recent years, we arefurther augmenting management and operation of information security. Our

know-how management, and patent searches, and are working to improve

We have established Corporate Secret Management Regulations and Per-

Information Security Department formulates basic action plans, and we aremanagement of product development and manufacturing risks.

sonal Information Management Regulations, and is working to prevent

improving our capability to detect threats and take adequate backups toleaks of confidential information by managing personal information held byensure that we can contain damages that do occur and recover quickly.

the company, as well as the information of customers and suppliers.

Methods of cyber attacks change on a daily basis, so we conduct regularAlso, we act appropriately to laws and regulations including the EU GDPR

training about rules and threats for employees, and raise awareness of the(European Union General Data Protection Regulation).

importance of information security.

SMIC CSR REPORT 2021

SMIC CSR REPORT 2021

36

COMPANY PROFILE / NETWORKEUROPE

4JAPAN

locations23

Of which are manufacturing
sites: 1 location

locations
Of which are manufacturing
sites: 9 locations

AMERICASENJU METAL INDUSTRY

Co., Ltd.

■ Segments in Japan■ Domestic Sales Locations

Tochigi Segment
Matsuyama Factory /Kinugaoka Factory
Soka Segment

ASIA

19

7

locations

Tohoku District Sales Office (Sendai)

Of which are manufacturing
sites: 3 locations

Kitakami Sales Office / Koriyama Sales Office
Chubu District Sales Office (Nagoya)Matsumoto Sales Office / Toyama Sales OfficeKansai Segment

Kansai District Sales Office (Osaka)

Nishiwaki Factory /Kansai Special Sales Development Dept /Naka Factory

Kyoto Sales Office / Himeji Sales Office

Chubu Segment

Kyushu District Sales Office (Fukuoka)

locations

Of which are manufacturing
sites: 10 locations

COMPANY PROFILE

LIST OF MAJOR AFFILIATED COMPANIESSENJU METAL INDUSTRY CO., LTD. / SMIC GROUP
DUNS# 690663091■ BUSINESS PORTFOLIOESTABLISHED

April 15, 1938

HEADQUARTERS ADDRESS

23 Senjuhashidocho, Adachi-ku, Tokyo
120-8555

PRESIDENT

Ryoichi Suzuki

of processed goods• Manufacture and sale of fire extinguishing equipment (affiliated company

CAPITAL (SIMPLE)¥400,000,000• Manufacture and sale of machinery related to the above businesses

EMPLOYEES (CONSOLIDATED)

2,357 (As of March 31, 2021)• Internal dispatch business

Headquarters

SMIC CSR REPORT 2021

business)

Senju Metal (Shanghai) Co., Ltd.

Senju Sprinkler Co., Ltd.

Senju Manufacturing Europe s.r.o..

Senju Metal (Huizhou) Co., Ltd.
Senju Metal (Hong Kong) Limited
Senju Electronic Materials (Hong Kong) Co., Ltd.

ASIA

Senju Giken Co., Ltd.

Senju (Malaysia) Sdn. Bhd.
Senju Trading (M) Sdn. Bhd.

AMERICA

Senju (Thailand) Co., Ltd.

Senju America Inc.

Senju Solder (Phils.) Inc.

Senju Comtek Corp.

Beijing Senju Electronic Materials Co., Ltd.

Senju Fire Protection Corp.

Beijing Senju Fire Fighting Equipment Co., Ltd.

Senju Electronic (Taiwan) Co., Ltd.
Senju Metal Industry Co., Ltd. Kaohsiung Branch
Senju Metal Korea Co., Ltd.

Senju Metal (Tianjin) Co., Ltd.

Segments in Japan

Tochigi Segment Matsuyama Factory

Senju Metal Europe GmbH

Senju System Technology Co., Ltd.

• Manufacture and sale of soldering equipment

Shanghai Senju Business Management Consulting Co., Ltd.

Industrial Analysis Service Ltd.

• Manufacture and sale of metal powders and bearings¥78,424 million(April 1, 2020 - March 31, 2021)

REVENUE(CONSOLIDATED)EUROPE (GERMANY, CZECHIA)

Senju Electronic Corp.

• Smelting, alloying, casting, and expansion of metals, manufacture and sale

• Manufacture and sale of solvents and adhesives for soldering■ BUSINESS SCALE

37

JAPAN

Affiliated Companies in Japan

Tochigi Segment Kinugaoka Factory

Soka Segment

Kansai Segment Nishiwaki Factory

Industrial Analysis Service Ltd.

Senju Sprinkler Co., Ltd.

Senju Electronic Corp.

Senju Giken Co., Ltd.

Senju System Technology Co., Ltd.

SMIC CSR REPORT 2021

38