Supplier Handbook

A Practical Guide to the Supplier Development Process from onsemi

BRD8024S/D
Rev. 25, Apr-2024
68AON48659E.Y

Pushing innovation to create intelligent
power and sensing technologies that solve
the most challenging customer problems.

onsemi.com

BRD8024S/D
Rev. 25, Apr-2024

68AON48659E.Y

Contents
Introduction

3

General Expectations
Non-Disclosure Agreements
Environmental
Delivery Requirements
Quality System
Right of Entry
Business Continuity PlansSupply Chain Security

4
6
6
6
6
6
6

Planning
Supplier Selection

7

Implementation
Qualification Requirements

8

Measurement
Business Reviews
Quality System Assessments
Performance Rating

12
12
13

Improvement
Supplier Goal Plan (SGP)

14

Welcomeonsemi Global Sourcing and Procurement recognizes the critical role our
suppliers play in an increasingly competitive environment. Strong collaborative
relationships are built upon clear communication of performance expectations,alignment of performance goals, and establishing mutual trust andcooperation. Your performance is a vital business strategy for controlling andmanaging risk, and driving continuous improvement into the supply chain.
The purpose of this Supplier Handbook is to communicate our expectations
and to establish a process that will successfully foster a partnership to alignsupplier goals with onsemi goals. This document also serves as a vehicle tocommunicate important onsemi customer requirements to our key suppliers.
It is therefore vital that our suppliers review the expectations put forth in thishandbook and affirm their ability to meet these expectations as part of the
Customer Specification review process. This alignment allows our key suppliers
to be part of our growth and success.
The Supplier Goal Plan described in this handbook will help us prioritize andfocus on common key objectives. Through our common priorities, we cancontinue to meet or exceed our goals in cost , quality, delivery, service andtechnology. We welcome the improvement collaboration with our suppliers toachieve continuous growth and mutual success.

Respectfully,
onsemi Procurement, Operations & Quality

Developed by:
Kazuhiko Katase
Hong Fong Yap
Edward Chung
Rebecca Turner
onsemi Supplier Quality
For the latest revision please visit
www.onsemi.com, or request
a copy of BRD8024S/D fromyour local Supply Management
representative.
© 2012 Semiconductor Components Industries, LLC.

Page 2

68AON48659E.Y • Supplier Handbook

Introduction
onsemi (Nasdaq: ON) offers an extensive portfolio of
power- and data-management semiconductors that
address the design needs of today’s sophisticatedelectronic products, appliances, and automobiles. The
company’s technology portfolio is led by its powermanagement products that set the industry standard
by reducing “leaky electricity” in everyday products andperform the precise management of power in today’s
portable electronic devices.
It is the goal of onsemi to develop a supply basethat provides the quality, productivity, and cost ofownership that enable us to be competitive in themarkets we serve. onsemi is committed to ensuringthat our suppliers have a clear understanding of our
expectations, and have the information required tosuccessfully meet our needs.

PURPOSE
onsemi has created a Supplier Development Programthat is designed with the goal of aligning suppliers withour corporate “Cycle of Success” At the center of Cycleof Success is onsemi’s Core Values, every piece ofthe cycle of success represents an area how
onsemi’s expectations of suppliers tie into thecycle of success. The Supplier Development
Program encourages constant communication
between onsemi and our suppliers, whichenables our suppliers to better understand therole they play in the success of onsemi for ourmutual benefit.
We have several
processes in place
for managing anddeveloping our
suppliers. These
processes are managed
following internal work
instructions. This
handbook is provided
to our suppliers so thatthey can better understand these processes and theirinterrelationships. This handbook also contains onsemi’smutually agreed customer specific requirements (CSRs).
Any questions regarding the content of this handbook
should be directed to your local site contact.
There are five steps to the Supplier Development
Program: Planning, Implementation, Measurement,
Improvement, and Recognition. Each step has beendeveloped with the total supply management cycle inmind, from the time the supplier is first introduced as apotential supplier to the time they become fully matureand require less guidance. This handbook outlines
the steps of the Supplier Development Program andprovides insight to how the program ties into onsemi’s“plan to win.”

BUSINESS PARTNERS
Building quality relationships with other companies gives
onsemi a competitive advantage.

Our Culture“

Integrity”

Employee Value Proposition

PurposeRespect

At onsemi, our contributions matter.
Through our intelligent technology,
we enhance lives and help solve ourcustomers’ most challenging problems.
Together we create a better, moresustainable future. We are onsemi.

Innovation

Disruptor

Excellence

Collaborator

Accountable

RelentlessFigure 1. Culture of Successonsemi • 68AON48659E.Y

Page 3

General Expectations
PURCHASING PRACTICES
We will make purchase decisions based solely on
the best interest of onsemi. Suppliers win onsemi
business based on product or service suitability, price,delivery and quality. Purchasing agreements should be
documented, clearly identify the services or products
to be provided, the basis for earning payment and theapplicable rate or fee. The amount of payments must becommensurate with the services or products provided.

CONTROL OF SUB-TIER SUPPLIERS
To ensure requirements are fully met, it is necessary
to flow down onsemi requirements to any sub-tiersuppliers the 1st tier may choose to use in support ofPurchase Orders placed by onsemi. 1st tier suppliers
are fully responsible for the control of all work placed bythem on such sources to ensure it meets both their andour defined requirements.

BUSINESS PARTNER INFORMATION
We will protect business partner information that issensitive, privileged or confidential just as carefully as
our own. Only those who have a need to know shouldhave access to confidential information. In addition,
we will take the steps necessary to ensure that ourbusiness partners protect the onsemi confidential
information provided to them.

NON-DISCLOSURE AGREEMENTS
onsemi requires non-disclosure agreements toprotect both onsemi and our suppliers in the eventthat confidential information is exchanged. The nondisclosure agreement must be in place and have theappropriate language stated within the agreement prior
to the exchange of such confidential information. The
confidentiality agreement does not serve as a contract
between both parties for other purposes and does
not substitute for agreements such as; a purchaseagreement, consulting agreement, development
agreement or technology agreement.
A separate confidentiality agreement is not required if

Page 4prior to the exchange of information, onsemi and our
supplier have or will have entered into another form ofagreement (e.g., a purchase agreement) which contains
approved confidentiality language.

DATA PROTECTION AGREEMENTS
onsemi is committed to complying with all privacy anddata protection laws and regulations that apply to ouroperations. We strive to protect the personal data of
our employees, customers, and business partners by
ensuring all transfers and processing of such data are
conducted with adequate safeguards and appropriate
security measures in place. onsemi’s data protection
agreement outlines the expectations and obligations
on both the data controller/exporter (onsemi) and thedata processor/importer with respect to the transfer,processing and security of personal data.

CORPORATE SOCIAL RESPONSIBILITY (CSR)
AND RBA CODE OF CODUCT
onsemi is committed to the mission and principlesof the Responsible Business Alliance (RBA) Codeof Conduct relating to labor, ethics, environmental,
health and safety. In addition, onsemi certifies that its
products are free from these restricted materials andthat all metals utilized in our products are not sourced
from conflict-affected and high-risk areas. onsemi is asignatory to the United Nations Global Compact andcommitted to international human rights standards
and local laws. These are rooted in our core values
and reinforced through our Code of Business Conduct.
onsemi is committed to ensuring the highest standardsof social responsibility wherever our products are
made. We insist that our suppliers provide safe working
conditions, treat workers with dignity and respect,prohibit human trafficking and slavery (including the
procurement of commercial sex acts and the use offorced or child labor), promote ethical behavior, use
environmentally responsible manufacturing processes,
and follow principles similar to those stated in our Codeof Business Conduct and Supplier Social Compliance
Commitment. The supplier must conform to all

68AON48659E.Y • Supplier Handbook

General Expectations (cont.)
environmental laws, all applicable laws and regulations,behave ethically and conform to all social responsibility
and conflict mineral requirements which are required
in onsemi’s Statement of Conformance, provide any
requested certifications, and cascade all applicablerequirements down their supply chain.
onsemiSocial Responsibility

CLIMATE CHANGE
Addressing global climate change is a challenge of ourtime. onsemi is dedicated to developing strategies
and programs to meet this challenge. This includes
introducing technology and methods to reduce our
impact on greenhouse gas emissions, air, water andwaste, including effectively utilizing renewable energy
and creating semiconductor products that enable ourcustomers to lower their carbon footprint. We have a
Climate Change Policy and are developing a holistic
climate action plan. We will be reaching out to our
suppliers in the future to learn more about their climate
actions and how we can work together to meet ourgoals.
We require all onsemi suppliers to conduct and reportgreenhouse gas emission inventories on 2024 calendar
year for Scope 1 and Scope 2 emissions by July 1, 2025.
All inventories must receive 3rd party data assurance;
submission of data to CDP ( the Carbon Disclosure
Project) meets this requirement and is preferred. We will
require all onsemi suppliers to conduct and report theirgreenhouse gas emission inventories on 2025 calendar
year for Scope 1 and 2 emissions as well as Scope
3 emissions (if applicable) by May 1, 2026. Supplier
Scope 3 emissions must be included in the inventory ifthey equate to more than 40% of total emissions (i.e.,
Scope 3 emissions is greater than or equal to 40%of the sum of Scope 1, 2, and 3 emissions). Suppliers
should establish a corporate-wide greenhouse gas

onsemi • 68AON48659E.Y

emissions reduction goal. Suppliers shall continually
strive to reduce overall greenhouse gas emissions. All
greenhouse gas emissions inventories and 3rd party
assurance assessments shall be reported to onsemi.

DECARBONIZATION, ENERGY EFFICIENCY AND
RECYCLING
New onsemi Supplier Greenhouse Gas Emissions
Inventory Requirements

Deadline

Greenhouse gas emission inventories of the 2024
calendar year for Scope 1 and Scope 2 emissions.
onsemi requires 3rd party data assurance;
submission of data to CDP meets this requirement
and is preferred.
Greenhouse gas emission inventories of the 2025
calendar year, for Scope 1 and 2 (mandatory)
and Scope 3 emissions (if applicable). Scope 3
emissions must be included in the inventory ifthey amount to more than 40% of total emissions.

July 01, 2025

May 01, 2026

onsemi requires 3rd party data assurance;
submission of data to CDP meets this requirement
and is preferred.

The decarbonization of onsemi’s operations is being
achieved through optimization of manufacturing
processes, fuel and switching of high global warming
potential process gases, abatement, energy efficiency,
and leveraging renewable energy. Thus, onsemi will
be engaging with suppliers to understand their carbon
emissions and to collaborate on the decarbonizationof our suppliers’ operations. In addition, onsemi will
also be working with suppliers to improve upon thereuse, recycling, and other recovery operations forreprocessing materials to make new materials.
Climate-Related onsemi Resources:
www.onsemi.com/site/pdf/Climate-Change-Policy.pdf
www.onsemi.com/site/pdf/sustainability-report.pdf

Page 5

General Expectations (cont.)
ENVIRONMENTAL
All purchased materials, services and products used inpart manufacture shall satisfy current governmental,
statutory and regulatory requirement, and safety
constraints on restricted, toxic and hazardous materials;
as well as environmental, electrical and electromagnetic
considerations applicable to the country of manufactureand sale. All purchased materials, services and products
must conform to onsemi environmental requirements
described in the latest revision of Product ChemicalContent Brochure BRD8022/D (68MON39567E).
Suppliers must be prepared to provide supporting
evidence of conformance.
http://www.onsemi.com/pub_link/Collateral/BRD8022-D.PDF

COMPLIANCE WITH THE LAWS
Supplier agrees that in all dealings with the U.S.
Government or with its customers that do businesswith the U.S. Government, compliance to the Federal
Acquisition Regulation (“FAR”) rules will apply.

DELIVERY REQUIREMENTS
onsemi requires suppliers to strive for 100% On-Time
Delivery (OTD) performance utilizing FIFO methodology.
onsemi will monitor the supplier’s delivery performanceand request corrective actions when appropriate.
Suppliers should take the necessary actions to avoid
premium freight charges. In the event that premium
freight will be charged to onsemi and cannot be
avoided, the supplier shall contact onsemi and receive
approval prior to shipment. Failure to comply may resultin premium freight charges debited to the supplier's
account.

QUALITY SYSTEM
Risk management focused ISO9001 QMS certificationis the minimum expectation required for the directmaterial supplier, foundry and subcontractors.
ISO9001 certification must include accreditation markfrom recognized IAF MIL member. Demonstration ofconformance to IATF16949 may be required. Use ofProcess FMEA (Failure Modes and Effects Analysis) andother Automotive Core tools is recommended. Foundry
and subcontractor suppliers who supply the product
Page 6

to our automotive customers need to be in compliancewith IATF16949 requirement.
onsemi shall be afforded the right to evaluate andmonitor the supplier’s quality system as needed.
Suppliers that currently meet recognized industry
standards but have a history of poor performance or
chronic quality issues will be monitored and assessed toensure proper improvement. Suppliers must be prepared
to provide the copy of the latest valid certification.
Suppliers are required to notify onsemi immediately, inthe case of ISO9001 or IATF16949 certification loss or
temporary suspension.

RIGHT OF ENTRY
onsemi, regulatory authorities and our customers
shall be afforded the right to verify at the supplier’s
premises that the supplier’s material, services or productconforms to specified requirements. This includes
all facilities involved in the order and all applicable
records. Verification shall not absolve the supplier of the
responsibility to provide acceptable material, services or
product, nor shall it preclude subsequent rejection by
onsemi.

BUSINESS CONTINUITY PLANS
All suppliers are expected to develop a documented
business continuity plan that enables the supplier tocontinue to perform critical functions and/or provide
services in the event of an unexpected interruption.
These plans should be verified through Business
continuity assessment.

SUPPLY CHAIN SECURITY
Suppliers are expected to ensure the Security of the
Supply Chain. Suppliers are expected to participate in
US Customs and Border Protection’s C-TPAT (CustomsTrade Partnership Against Terrorism) program,(or international equivalent), or provide a written
confirmation of meeting the minimum security criteriaof the program. Suppliers will provide onsemi their SVI(Status Verification Indicator) number as evidence thatthey are a member of C-TPAT. Suppliers, appropriate to
the product, shall have a process and controls in place
to prevent the use of counterfeit parts.

68AON48659E.Y • Supplier Handbook

Planning
PURPOSEThe first step in Supplier Development Program isplanning with emphasis on supplier selection. We mustensure that we only select suppliers that meet our
expectations and have the capability to fulfill all of ourrequirements. The supplier selection process enables
the Strategic Sourcing team at onsemi to review
suppliers and select the most qualified based on the
supplier’s performance and the needs of onsemi. Below
is a general outline to the supplier selection process.

SUPPLIER SELECTION
The supplier selection process begins when
the technology development group or onsemi’s
manufacturing operation has a requirement for a newmaterial, or we are looking for alternate sources ofsupply for existing materials, services or products.
The Strategic Sourcing Managers will review thecurrent supply base and determine if there are any
current suppliers that can meet our business needs.
Our goal is to direct new business to our preferred orapproved suppliers. If the Strategic Sourcing Manager
determines that our current supply base does not havethe capability to meet our needs, a new supplier will beselected.

onsemi • 68AON48659E.Y

The Strategic Sourcing Managers at onsemi have theultimate responsibility in selecting suppliers. There
are several factors that are evaluated in the selection
process. Examples of these factors are listed below• Does the supplier have the technology to meet
onsemi’s needs?
• Is the supplier cost competitive?
• Is the supplier able to meet delivery/capacity
requirements?
• Does the supplier agree to support value added
service programs and initiatives?
• Does the supplier have the technical, physical andfinancial resources to support onsemi’s future
demands?
Suppliers are also evaluated based on the status of their
quality system by VDA 6.3 audit methodology. Supplier
Quality Engineers (SQE) will either visit the supplier’s
manufacturing site and perform an on-site assessment,or ask the supplier to perform a self-assessment. The
assessment process is outlined on page 12 of thismanual. After the supplier has been evaluated and it isdetermined that the supplier meets onsemi’s needs,
the supplier is asked to provide material to begin thematerial, services or product qualification process,according to the applicable Production Part Approval
Process (PPAP) and onsemi requirement.

Page 7

Implementation
The implementation step ensures that the supplier’s
material, services or product processes are properly
qualified by onsemi. This step also ensures that there
is a material, services or product verification process
in place and that suppliers stay current with material,
services or product specification revisions.

QUALIFICATION REQUIREMENTS AND
PRODUCT/PROCESS CHANGE NOTIFICATION(PCN)
Qualification process is always required prior to thefirst production shipment, for example: a new material,
service or product supplier; a material, service or
product modified by an engineering change (e.g.: design
records, specifications, material) or being re-qualified
which was disqualified due to major quality problem or
production delivery time lapse (typically for 2 years).
A major change in the manufacturing of the material,
service, product, or process flow requires a notification
to onsemi. This encompasses all items within the “Cycleof Success” including New Product Development. Thesechanges may include but are not limited to:• A change to design records• A change in a quality conformance including
procedure, test/inspection methods• A change in the site of manufacture• New tooling or modified tools which can be
expected to influence the integrity of the final
product, upgrade or rearrangement of existingtooling or equipment, including equipment
transferred to and from a different site
• A change/addition/deletion of a process step
(which could affects customer requirement for fit,
form, function, performance)• A source change for raw material or supplier• A change in raw material composition• A change to handling, packaging or storage
methods• Additional changes as defined in material
specification

Page 8

Notification of any intended source change during New
Product Development phase, shall be in writing to theProject Manager and Development Engineer prior tochange.
The Manufacturer, Supplier or Distributor shall notify
onsemi with a letter of intent and obtain onsemi’s
written approval at least 6 months in advance of
the implementation of above major changes to theirprocesses (Product/Process Change Notification,
PCN). If documented in the material specification, thenotification could be at a minimum of 12 months before
first ship date of product.
Signed PSW (Parts Submission Warrant) by onsemi isrequired for above major changes for all direct material
suppliers. Additional PPAP data with PSW are requiredfor Backend or Plating supplier’s changes. Subcontractor
and foundry suppliers must allow onsemi a minimum
period of 24 months for automotive, military, aerospaceor medical products and 12 months for others products
from the time of submission until the effective changetakes place.
For subcontractor and foundry change requests,
the change information needs to be managed via
PCN submission into the CRM (Change Request
Management) system. The timeline will initiate from thepoint of acceptance.
The change notification (PCN) shall contain following:• A description of the proposed change andsupplier’s PCN number• A list of part numbers affected• An explanation of the reason(s) for the change,
including any benefits to onsemi• A proposed timeline for the implementation of thechange• Supporting data such as: records of results,
conclusions from the supplier site change
management

68AON48659E.Y • Supplier Handbook

Implementation (cont.)
Once the change notification has been reviewed andthe change level has been determined, the onsemi
contact person will provide an initial response to the
supplier. This response will be one of the following:• The proposed change is not significant and the
supplier may proceed with implementation• The proposed change is significant and will beapproved for implementation once the conditionsof the qualification requirements outlined in thechange request are satisfied and approved by theonsemi Change Action Board (CAB)• The proposed change is significant and is not
acceptable to onsemi and may not be implemented
on product supplied to onsemi
For all subcontractors and foundry change requests, theacceptance and approval of all PCNs will be formallycommunicated through the CRM system.

EVALUATION AND QUALIFICATION SAMPLE
SHIPMENT
To clearly categorize and segregate these samples as
Non-Production material, the evaluation or qualification
samples shall be clearly identified on outer packaging/shipping containers nearby or next to the product labels(as applicable).

MATERIAL, SERVICE OR PRODUCTVERIFICATIONTo ensure our customers receive only the highest quality
product, onsemi has developed a material, service or
product verification process that verifies conformanceto specifications. onsemi manufacturing operation or
SQE’s will work with suppliers to implement one of thefollowing methods of verification:• Receipt and evaluation of statistical data provided
by the supplier

For all direct material suppliers, the change acceptanceand approval of all PCNs will be formally communicatedthrough the PSW sign off process.

• Confirmation of C of C or C of A as per customer
requirement

In the event that qualification is required, the onsemi
contact person will communicate all sample and datarequirements and will provide final notification of
approval. The PSW will also be used to communicate thefinal notification of approval for the proposed change.

• Receiving inspection and/or testing

END OF LIFE (EOL) NOTICE REQUIREMENT
When a product is terminated a product termination
notice (PTN or EOL) has to be sent at least one year
prior to the termination of the product, allowing aminimum 6 months from the notice to place final orders,and 12 months from the notice for final shipments. If
documented in the material specification, notice of
product discontinuance will be 12 months for placing
final orders and 24 months from the notice for final
shipments.

• Second or third party assessments of supplier sites• Part evaluation by an accredited laboratory or
Reliability Audit Program (RAP)
There are several factors that determine which method
will be used. In general, for suppliers with demonstrated
process capability we will utilize assessments, whereas
receiving inspection or SPC data will be required forsuppliers with unstable capability. When requested,
suppliers are expected to provide statistical data and/or
allow quarterly assessments at their facilities.

Subcontractor and foundry suppliers must allow onsemi
a minimum of 24 months for automotive, military,
aerospace or medical product and 12 months for otherproduct from the time of submission of the EOL notice.
onsemi • 68AON48659E.Y

Page 9

Implementation (cont.)
SPECIFICATION DISTRIBUTION AND
ACCEPTANCE
The External Manufacturing system (ExMAN) ensures
our suppliers stay current with applicable material,
service or product specification revisions. Suppliers are
subscribed to specifications using the supplier’s email
addresses. When changes are made to specifications,the supplier will be automatically notified via email thru
the ExMAN system. Suppliers must assign contact thatwill be responsible to review, distribute specification
changes and releases throughout the supplier’s
facility. These contacts must understand the urgency
to specification changes and respond to the system
accordingly with compliances.
The ExMAN system provides different types of notices:• New Subscription (Message that indicates that you
have been subscribed to message)• Activity (Message indicating that activity is
occurring on a specific document)
The supplier will also receive specification compliancenotification message with the recently revised or new
release spec. For material specifications, suppliers must
log into the system by the link provided to notify onsemi
that they either comply to the new specification,changes that have been made within 14 days or thatthey have found discrepancies within the document. For
policy specifications, suppliers have 30 days to reply
to changes. The response from the supplier will send
to local site contact if discrepancies are found. The
onsemi contact person will work with the supplier tocorrect them and ensure the all specifications are in-linewith their capability.

CORRECTIVE ACTION AND PREVENTIVEACTION (CAPA)
onsemi and our suppliers should strive for “Zero Quality
Incidents,” but when they do occur, the supplier musthave a Corrective and Preventive Action System that
includes containment, root cause analysis, (including
5-Why analysis, Ishikawa analysis, or other root cause
determination tool applied to the system and escaperoot cause) corrective action, effectiveness verification

Page 10and prevention of recurrence. When onsemi issues
a Supplier Quality Incident (SQIN) or External Failure
Analysis Request (EFAR) for material or product out ofconformance, the supplier must provide the onsemi site
contact with a containment action within 24 hours anda detailed corrective action plan (in 8D format) within
5 calendar days upon receipt and analysis of defectsample and/or supplier acknowledgement.

NON-CONFORMING MATERIAL, SERVICE OR
PRODUCT CONTROL
onsemi will not accept material, which does notconform to specified requirements, and it may be cause
for rejection and return to the supplier for credit orreplacement, as mutually agreed.
Occasionally, however, a supplier may wish to submit
variant material, service or product for consideration.
To avoid rejection upon receipt, a request for temporary
deviation from specification shall be submitted
to onsemi prior to shipment. This request will be
evaluated, and only after a written approval fromonsemi, the material, service or product can be shipped
to onsemi. Lack of response from onsemi does NOT
constitute acceptance of the non-conforming material,
service or product.

PROCESS CONTROLThe supplier must have a documented process forplanning and implementing production activities.
Production must occur under controlled conditions
using documented and revision controlled procedure,
instructions, and reference material, as requested by thelatest release of ISO9001 and IATF16949.

INSPECTION & TESTING
The supplier must have a documented process to verify
that all requirements for onsemi product have been met
prior to shipment. Appropriate measurement and test
equipment must be available, and record of inspection
must be maintained. Should supplier subcontract
to another party for measurement, supplier mustensure the subcontractor is in accordance with theserequirements and provide documentation to onsemi.

68AON48659E.Y • Supplier Handbook

Implementation (cont.)
CERTIFICATE OF CONFORMANCE (C OF C)
The supplier must issue a C of C for each lot, run orbatch of material, service or product shipped to onsemi
stating conformance to the requirements stipulated in
the PO, detail specifications and this document. The
C of C elements may appear on a traveler or otherdocumentation accompanying a shipment, but mustsatisfy the following minimum requirements:• Manufacturer’s name and address• onsemi’ or Customer’s name and address, asapplicable to the shipment• Part/Device identification• Lot/date code(s)• Quantity of devices in shipment• Statement certifying product conformance andtraceability (For Mold compound suppliers, include
annual UL94 results with the test date, test sample
thickness and test result.)• Name and date of transaction• PO number• Specification number• Drawing number, if applicable

CERTIFICATE OF ANALYSIS (C OF A)
Certificate of Analysis requirements, if applicable, willbe specified in the PO and Procurement Specification or
onsemi detailed specifications

STATISTICAL PROCESS CONTROL (SPC)
Suppliers must be actively pursuing the use of SPC
throughout their processes. Suppliers must send
applicable statistical reports to governing site as
defined in the appropriate baseline and/or procurement
specification.
The supplier must be able to demonstrate continual
improvement through the utilization of SPC methods
and meet Cpk ≥ 1.67 for critical parameters of thequalified parts. (see AIAG SPC manual for guidance).

Any exceptions must be reviewed and approved byonsemi.

CALIBRATION
Calibration of equipment used in the manufacturingof product for onsemi shall be in accordance with
ANSI/NCSL (1) Z540.1, ISO/IEC17025 or other National
traceable standard. Should supplier subcontract toanother party to perform the calibration, supplier mustensure the subcontractor is in accordance with samerequirements and provide documentation to onsemi.

MEASUREMENT SYSTEM ANALYSIS (MSA)
Before a measurement system can be used to verify a
DOS (Design Output Specification) on onsemi product,
it must demonstrate required detection capability.
The supplier should repeat gage R & R studies when
warranted by measurement system change and have asystematic method to improve gage system.

DOCUMENT CONTROLThe supplier must have a documented process
to ensure that quality system documents, design
specification, and other product related documents arecontrolled. Controlled documents must be reviewed
by appropriate personnel and approved prior to theirrelease and use.

CONTROL OF RECORDS
Quality records shall be maintained in a manner sothey remain legible and retrievable upon request. Asa default, without product specific requirements, thesupplier shall keep the quality records for a minimumof 15 years unless otherwise specified. These records
shall also include inspections, tests, Material Review
Board (MRB) documents, product/process/equipment
qualifications, C of A’s and C of C’s.
The supplier must retain quality records for provided
products and each component or materials within those
products.

An action plan shall accompany the report for all agreed
critical parameters with a Cpk < 1.67.

onsemi • 68AON48659E.Y

Page 11

Implementation (cont.)
IDENTIFICATION & TRACEABILITY
The supplier is obliged to ensure the traceability of thematerials or products, that it supplies. The traceability
code shall be put on each of the packing boxes forevery lot that is delivered. The supplier must be able
to perform forwards and backwards manufacturing
lot identification and traceability for any material orcomponent used in the supplied product.
The supplier must ensure that in the event an error is
discovered, it will be possible to identify an isolate thedefective materials or products and therefore limit thequantities and period affected by the problem, including
personnel contribution to product or service conformity
and product safety (if applicable).

TRAINING
The supplier must have a documented process defining
qualification and training, and maintain records for all
personnel. Training and certification activities must
be planned, carried out, and documented, including
personnel contribution to product or service conformity
and product safety (if applicable).

Measurement
PURPOSE
onsemi utilizes several processes to evaluate andcontrol our supplier’s quality systems and products.
Business reviews, assessments, performance rating,and material/product verification are used to evaluate
our suppliers performance to our expectations. Below isa brief outline of the controls that onsemi uses.

BUSINESS REVIEWS
On an annual basis, onsemi Strategic Sourcing
Managers and Manufacturing Operation will schedulebusiness reviews with preferred suppliers. The purposeof the meetings is to review items such as:• Supplier Performance• Progress toward established goals-SGP• Assignment and review of action items• Expectations• Technical issues• Cost reduction opportunities• Market conditions• Future demand
Page 12• New products and technologies• Additional business opportunities• Financial issues• Corrective action status• Premium freight• Quality System• Planned major process changes / productterminations expected (next 5-10 years’ horizon)
The business reviews are essential in forming andmaintaining a strong relationship with our preferredsuppliers. Both the supplier and onsemi are able
to communicate each other’s goals and identify
opportunities for improvement.

QUALITY SYSTEM ASSESSMENTS
Supplier assessments are used as a systematic andindependent examination to determine whether a
supplier’s quality system meets the quality standard
requirements. These assessments are also used todevelop ISO9001 certified suppliers to automotive
standards and other applicable onsemi customer
requirements.
68AON48659E.Y • Supplier Handbook

Measurement (cont.)
At onsemi, suppliers will be assessed by performing
periodical assessment through either MEA or VDA6.3
check list with focus on risk management and the useof automotive core tools such as SPC, MSA, FMEA andControl plans. Re-Audit and Purchase Prohibit shall beidentified based on VDA6.3 rating for material supplier,and other criteria for foundry and subcontractors.
onsemi will plan to audit each supplier regularly using
a risk-based approach and with a goal of performing anaudit at one of the supplier’s sites at least every 5 years.

• Assembly and Test Yield Improvement• Process Monitoring• Returned Material Authorization (RMA)• 8D Responsiveness and Effectiveness

Delivery• Stockouts (Line Down)• Delivery Performance (Including Premium Freight)• Capacity

VDA6.3RatingRe-Audit Requirement

Purchase Prohibit

A

None

None

B

Re-Audit within 12 6 Months

New Product

Re-Audit within 6 3 Months

Current Product orPurchase in Some
ConditionC• Quality System Assessments• Cycle Time Reduction

Service• Responsiveness• Accurate Reporting

Cost

PERFORMANCE RATING• Price Leadershiponsemi has developed a performance rating systemthat measures preferred suppliers in the areas of Quality& Reliability, Delivery, Cost, and Technology & Service.
The supplier’s performance is tracked on a quarterly
basis and is frequently reviewed to ensure that suppliers
are meeting the needs of onsemi. Each category isweighted based on the criticality to onsemi.

• Participation in 3 Year Price Productivity Roadmaps

The rating system also serves as a useful tool in tracking
data in several ways such as:• Tracking a supplier’s progress• Evaluating suppliers by commodity• Evaluating suppliers by onsemi
manufacturing site
The system works well and has become a useful toolin the supplier development process. Following is themeasurement criteria defined for each area.

Quality• Incoming Quality Incidents• Line Quality Incidents• Participation in Cost Reduction Programs• Payment Terms• Provide Cost Transparency• Cost Sharing• Support of onsemi Systems/Tools

Technology• Capability to meet current technology requirements• Technology roadmap aligns with onsemi futuretechnology
The Supplier Quality team or External Manufacturing
operation team will evaluate the performance of thepreferred suppliers and notify the suppliers of theresults. (Quarter/Semi-annual/ Annual)Suppliers with scores below Set Goal of Total scores or
Quality score will have a specific improvement action
plan that may include onsite assessment. Goals andratings will be communicated with supplier by Score
Card.

• Repeat Quality Incidents
onsemi • 68AON48659E.Y

Page 13

Improvement
PURPOSETo remain competitive we must continuously improve
our products and processes and work with our suppliers
to improve them as well. To achieve this, onsemi hasdeveloped the Supplier Goal Plan (SGP). The SGP isused to prioritize goals and track progress. This process
enables both the supplier and onsemi to work together
and form a strong working relationship.

SUPPLIER GOAL PLAN (SGP), CONTINUALIMPROVEMENT PLAN (CIP), SUPPLIER IN FOCUS(SIF)
The onsemi SGP/CIP/SIF process is used to identify
goals and opportunities for improvement based on thecontrols listed in the previous section (i.e. performance
rating, assessments/audits, material verification, etc.).

Page 14

The process is simple. First, the cross functional teamwithin onsemi will evaluate the overall performanceof the supplier. After opportunities for improvement or
specific goals are identified, onsemi will schedule ameeting with the supplier to review the results. During
this meeting, both parties will work together to develop
and agree upon the SGP, CIP or SIF activity.
This process ensures a working relationship between
both parties and helps the supplier understand how
they can improve their performance. The Supplierimprovement will be reviewed on a regular basis
minimum. Time will be set aside for suppliers to provide
updates during scheduled business reviews or otherpreviously scheduled meetings.

68AON48659E.Y • Supplier Handbook

Change History
LetterRevision

NumberRevision

Effective
Date

Y

25

Apr-2024

onsemi • 68AON48659E.Y

Summary of Changes
Addition of text on page 2 regarding expectations of the Customer Specification review
process. Updated number of months in table on page 13.

Page 15

Sales and Design AssistanceWorldwide Technical Support

www.onsemi.com/support
For a comprehensive listing of
onsemi Sales Offices, Distributors,
and Rep Firms, please visit:
Americas & EMEA: www.onsemi.com/sales
China: www.onsemi.cn/sales
Japan: www.onsemi.jp/sales

onsemi,, and other names, marks, and brands are registered and/or common law trademarks of Semiconductor Components Industries, LLC dba “onsemi” or its affiliates
and/or subsidiaries in the United States and/or other countries. onsemi owns the rights to a number of patents, trademarks, copyrights, trade secrets, and other intellectual property.
A listing of onsemi’s product/patent coverage may be accessed at www.onsemi.com/site/pdf/Patent-Marking.pdf. onsemi reserves the right to make changes at any time to any
products or information herein, without notice. The information herein is provided “as−is” and onsemi makes no warranty, representation or guarantee regarding the accuracy of theinformation, product features, availability, functionality, or suitability of its products for any particular purpose, nor does onsemi assume any liability arising out of the applicationor use of any product or circuit, and specifically disclaims any and all liability, including without limitation special, consequential or incidental damages. Buyer is responsible for its
products and applications using onsemi products, including compliance with all laws, regulations and safety requirements or standards, regardless of any support or applications
information provided by onsemi. “Typical” parameters which may be provided in onsemi data sheets and/or specifications can and do vary in different applications and actual
performance may vary over time. All operating parameters, including “Typicals” must be validated for each customer application by customer’s technical experts. onsemi does notconvey any license under any of its intellectual property rights nor the rights of others. onsemi products are not designed, intended, or authorized for use as a critical component inlife support systems or any FDA Class 3 medical devices or medical devices with a same or similar classification in a foreign jurisdiction or any devices intended for implantation in thehuman body. Should Buyer purchase or use onsemi products for any such unintended or unauthorized application, Buyer shall indemnify and hold onsemi and its officers, employees,
subsidiaries, affiliates, and distributors harmless against all claims, costs, damages, and expenses, and reasonable attorney fees arising out of, directly or indirectly, any claim of
personal injury or death associated with such unintended or unauthorized use, even if such claim alleges that onsemi was negligent regarding the design or manufacture of the part.
onsemi is an Equal Opportunity/Affirmative Action Employer. This literature is subject to all applicable copyright laws and is not for resale in any manner.

ADDITIONAL INFORMATIONTECHNICAL PUBLICATIONSTechnical Library: www.onsemi.com/design/resources/technical-documentation
onsemi Website: www.onsemi.com

BRD8024S-25 | PDF

ONLINE SUPPORT: www.onsemi.com/support
For additional information, please contact your local Sales Representative at
www.onsemi.com/support/sales

BRD8024S/D