Supply Chain Management

As part of supplier risk management, Darfon classifies suppliers by risk level. Based on the characteristics of each business unit, the Company defines critical materials, components, and key suppliers and evaluates them using three factors: supplier production processes, management processes, and monitoring and control mechanisms. The results are then used to determine each supplier’s risk level. Darfon applies corresponding supply chain management mechanisms to suppliers at different risk levels to ensure stable supply quality. Based on the 2025 assessment, all major suppliers were classified as low risk and did not have any significant impact on production.

Critical Raw Material Risk Management

To reduce the operational impacts of supply chain disruptions and cost fluctuations, Darfon Electronics has established a critical raw material risk management mechanism covering major raw materials used in finished products, such as plastics, metal parts, and battery cells. Critical materials may be exposed to uncertainties arising from availability and physical constraints on access, price volatility, and regulatory changes, potentially affecting operational stability. Darfon therefore continues to monitor raw material availability and supply security.

To diversify these risks, Darfon Electronics adopts strategies including supplier diversification, material reserves, the development of alternative materials, and procurement from alternative sources. The Company also actively invests in the R&D and application of technologies for recycling and reusing critical materials, thereby strengthening resource resilience and its capacity for sustainable operations.