Procurement Policy

1. Introduction

In order to contribute to the progress of society, technology, and the enrichment of people's lives, and in accordance with our Corporate Purpose & Mission , "Enabling Leading-Edge Technologies", Advantest Corporation and its affiliates ("Advantest Group") provide products and services of both high quality and high reliability in the test and measurement field. It is also for this purpose that we strive to develop leading technologies, enhance productivity, and improve the quality of our support services. We believe that such is not realizable without the cooperation of our suppliers who are important members of the value chain. As such, it is our hope that our suppliers understand our Basic Procurement Policy and Supplier Expectations and cooperate with us to fulfill our corporate social responsibilities.

2. Basic Procurement Policy

We will evaluate and select our suppliers on a fair and equitable basis, taking the following factors into account:

a) Approach to Environmental Conservation

We encourage our suppliers to supply us with goods and services that have the smallest negative impact on the environment so that we can develop and manufacture environmentally friendly products.

b) Respect for the Human Rights of Workers

We strive to promote procurement from suppliers who respect the code of conduct for human rights as defined in international norms and codes of conduct, including but not limited to the prohibition of child and forced labor, the prohibition of discrimination on the basis of race, gender and other grounds, and upholding the freedom of association.

c) Ensuring the Quality and Safety of Products and Services

As a manufacturer of test equipment, in order to fulfill our duty of contributing to the ability of our customers to produce high quality products, we will strive to procure goods and services that satisfy our requirements with respect to quality and safety.

d) Pricing of Products and Services

In order to realize product price levels that satisfy our customers, and based on the principle of market competition, we will seek to purchase goods and services at optimal price levels. Additionally, along with procuring goods and services that proactively adopt new technology, methods, and materials, we will encourage our suppliers to proactively promote value engineering activities.

e) Observing Delivery Deadlines, Stable Supply Capabilities and the Ability to Cope with Fluctuations in Demand

In order to respond to customer delivery deadlines and fluctuations in the demand for our products, we will strive to ensure that we can procure, on a stable basis, goods and services at the necessary times and in the necessary volumes.

f) Technical Capabilities

We will proactively adopt original, innovative, and superior technologies in the fields of design, processing, and packaging.

3. Supplier Expectations

As a company operating in the global arena, we are committed to and promote procurement activities in line with the objectives of international principles and norms such as the Ten Principles of the United Nations Global Compact (UNGC), the United Nations International Bill of Human Rights, the Guiding Principles on Business and Human Rights, the human and environmental rights as described in relevant international conventions*1 ("Relevant International Conventions") and the Responsible Business Alliance (RBA) Code of Conduct.

We also expect our suppliers:

  1. (1)
    To observe the protected human rights and environmental interests and prohibitions set out in the below international principles and standards in order to fulfill our joint social and environmental responsibility throughout the supply chain by taking appropriate measures, such as the consideration of human rights and related environmental rights in the selection of suppliers, the implementation of related training and development, providing access to complaints procedures, conducting risk-based controls as well as obligating and monitoring supplier's sub-suppliers with regard to the protection of human and environmental rights.
    • The core labor standards of the International Labor Organization (ILO) with their five basic principles on freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labor, the effective abolition of child labor, the elimination of discrimination in respect of employment and occupation, and a safe and healthy working environment
    • United Nations International Bill of Human Rights
    • Guiding Principles on Business and Human Rights
    • Relevant International Conventions*1
  2. (2)
    To comply with the laws and regulations applicable to suppliers in the countries in which they are doing business and accepted social practices, including, but not limited to:
    • Prohibitions on irregular conduct such as bribery and corruption
    • Avoiding any business behavior which might be considered improper, including behavior that might give rise to the appearance of a conflict of interest
    • Abiding by the rules of fair competition and anti-trust laws
    • Abiding by the import and export laws and regulations, taking into consideration the possible export of Advantest Group products and services
    • Abiding by the privacy laws and regulations concerning personal information of business partners
    • Abiding by the intellectual property laws
  3. (3)
    To, in accordance with "Advantest Green Procurement Guidelines", establish environmental management systems, including, but not limited to that of ISO 14001, and to promote environmental conservation activities and the procurement of goods, services, and production activities that have the smallest negative impact on the environment while paying regard to resource conservation. Suppliers are also encouraged to reduce or eliminate use of potentially hazardous substances.
  4. (4)
    To establish quality management systems and carry out quality control activities for goods and services and ensure the safety of goods and services in accordance with the provisions of master purchase agreements, individual contracts, and quality assurance agreements.
  5. (5)
    To supply goods and services at competitive prices and to continually endeavor to reduce prices.
  6. (6)
    To establish a flexible and stable supply system to ensure the on-time delivery of, and the prompt response to requests for, goods and services, and to respond to rapid fluctuations in the demand for the same.
  7. (7)
    To constantly strive to improve their technological capabilities, to foster technological innovation, and to provide us with goods and services that adopt advanced technologies so that we can provide our customers with products that are safe and that meet their needs.
  8. (8)
    To conduct stable and sound company operations so that we can establish long-term business relationships. In order to confirm such, we request that our suppliers disclose necessary information to us, including, but not limited to, corporate and financial information.
  9. (9)
    To establish information management systems to prevent leaks of confidential information and to maintain such information obtained through business with Advantest Group in strict confidence.
  10. (10)
    To cooperate with our survey, which uses the Conflict Minerals Reporting Template (CMRT), the format of the Responsible Minerals Initiative (RMI) so that we can ensure transparency in the procurement of materials and parts.
    We consider the responsible sourcing of minerals as one of our important social responsibilities, and we will drive initiatives to eliminate the adoption of any parts and components which consist of any raw materials that may contain the conflict minerals*2 mined and extracted by the use of fraudulent funds or by any illegal methods.
  • *1
    Relevant International Conventions:
  • The International Labour Organization (ILO) Convention No. 29 of 28 June 1930 concerning Forced or Compulsory Labour (BGBl. 1956 II S. 640, 641) (ILO Convention No. 29)
  • The Protocol of 11 June 2014 to the ILO Convention No. 29 of 28 June 1930 concerning Forced or Compulsory Labour (BGBl. 2019 II S. 437, 438)
  • The ILO Convention No. 87 of 9 July 1948 concerning Freedom of Association and Protection of the Right to Organise (BGBl. 1956 II S. 2072, 2071) amended by the Convention of 26 June 1961 (BGBl. 1963 II S. 1135, 1136) (ILO Convention No. 87)
  • The ILO Convention No. 98 of 1 July 1949 concerning the Application of the Principles of the Right to Organise and to Bargain Collectively (BGBl. 1955 II S. 1122, 1123) amended by the Convention of 26 June 1961 (BGBl. 1963 II S. 1135, 1136) (ILO Convention No. 98)
  • The ILO Convention No. 100 of 29 June 1951 concerning Equal Remuneration for Men and Women Workers for Work of Equal Value (BGBl. 1956 II S. 23, 24) (ILO Convention No. 100)
  • The ILO Convention No. 105 of 25 June 1957 concerning the Abolition of Forced Labour (BGBl. 1959 II S. 441, 442) (ILO Convention No. 105)
  • The ILO Convention No. 111 of 25 June 1958 concerning Discrimination in Respect of Employment and Occupation (BGBl. 1961 II S. 97, 98) (ILO Convention No. 111)
  • The ILO Convention No. 138 of 26 June 1973 concerning Minimum Age for Admission to Employment (BGBl. 1976 II S. 201, 202) (ILO Convention No. 138)
  • The ILO Convention No. 182 of 17 June 1999 concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour (BGBl. 2001 II S. 1290, 1291) (ILO Convention No. 182)
  • The International Covenant of 19 December 1966 on Civil and Political Rights (BGBl. 1973 II S. 1533, 1534)
  • The International Covenant of 19 December 1966 on Economic, Social and Cultural Rights (BGBl. 1973 II S. 1569, 1570)
  • The Minamata Convention of 10 October 2013 on Mercury (BGBl. 2017 II S. 610, 611) (Minamata Convention)
  • The Stockholm Convention of 23 May 2001 on Persistent Organic Pollutants (BGBl. 2002 II S. 803, 804) (POPs Convention), as amended by the Decision of 6 May 2005 (BGBl. 2009 II S. 1060, 1061)
  • The Basel Convention of 22 March 1989 on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (BGBl. 1994 II S. 2703, 2704) (Basel Convention), as amended by the Third Regulation to Amend the Annexes to the Basel Convention of 22 March 1989 of 6 May 2014 (BGBl. II S. 306/307)
  • *2
    The conflict minerals are defined as the four metals, including tantalum, tin, gold and tungsten, and the ore of the four minerals, including columbite-tantalite (coltan), cassiterite, gold and wolframite. The Democratic Republic of the Congo and its adjoining countries are the places of production of these minerals. Mining and trading of these minerals are believed to be the source of funds to the armed groups and have been conducive to the conflicts or have been the root causes of the human-rights violation, the labor problems, etc. The Dodd-Frank Wall Street Reform and Consumer Protection Act, established in the United States in July 2010, incorporated the provision and the obligation to disclose the information on the product usage of the conflict minerals produced in these countries and have become the source of funds to the armed groups.
  • *4
    Please refer to the "Advantest Green Procurement Guidelines". The guidelines are available at the following Web address:

4. Information Contact

If an Advantest employee is ever witnessed or suspected or have violated or are suspected of violating the Code of Conduct, business contracts, or laws or regulations in the course of transactions, or is suspected of ethical misconduct, please use this Compliance Hotline to report the matter. We will confirm the facts of the reported matter and take appropriate action. At this time, we may ask for your cooperation. The Company will not cause any disadvantage to the whistleblower or the company he or she works for as a result of the report. However, the above does not apply in the event that the report is made for the purpose of slander or defamation, such as by intentionally providing incorrect information.

December 31, 2023
Advantest Corporation
Soichi Tsukakoshi
Chief Production Officer