The instruments produced by Chroma and its subsidiaries are characterized by low volume and high variety, requiring a wide range of raw materials. The main raw materials include FPGA ICs, power converter ICs, memory, relays, mechanical components, and circuit boards. Currently, these are all sourced through more than three suppliers who distribute products from globally renowned manufacturers. These suppliers have long-term cooperative relationships with the Company, with stable quality and supply, and maintain good relations with Chroma. To ensure interchangeability and competitiveness between suppliers, thereby diversifying procurement risks and appropriately reducing costs while obtaining better services, procurement is centrally managed by the procurement department through both domestic and international vendors. The purchasing unit shall regularly review quotations offered by the supplier. QC and purchasing personnel shall conduct audits at the supplier end to ensure the stability of product quality while assessing the production capability of the supplier.

There were no major changes to the key supplier data for 2025. (Those that accounted for more than 10% of the net purchase amount in the past two years.) A total of 54 new suppliers were added, of which 46 met the criteria for exemption from on-site evaluation, and 8 underwent on-site evaluations. Suppliers are important partners in the Company's operations, and both parties jointly pursue sustainable business operations and growth. We are actively committed to implementing local procurement.

To achieve this policy, the local procurement ratio in Taiwan reached 90.25%, an increase of 1.09% compared to 2024, ensuring an efficient and flexible supply chain.

In raw materials, components, auxiliary materials, or packaging materials, an eco-design concept is implemented. According to Chroma's "Controlled Substances Standards for Materials," the Company's environmental controlled substances are categorized into the following five types for control. The R&D units all adhere to these measures prohibiting the use of the restricted substances listed below when developing new products:

1. RoHS restricted substances, in compliance with the EU RoHS Directive and China's "Administrative Measures on the Control of Pollution from Electronic Information Products," prohibiting or restricting the use of hazardous chemical substances.
2. REACH SVHC restricted substances, as announced by the European Chemical Agency (ECHA), substances of very high concern (SVHC) that are highly hazardous to humans and the environment.
3. Other restricted substances under relevant regulations, as stipulated by the main trading countries' laws prohibiting or restricting hazardous substances, with reference to IEC 62474 Material Declaration Standard for the electrical and electronic industry.
4. Ozone Depleting Substances (ODS), controlled chemical substances announced under the Montreal Protocol.
5. ELV and GADSL restricted substances, as defined in the EU End-of-Life Vehicles Directive and the Global Automotive Declarable Substance List (GADSL).

Since Chroma ATE began implementing hazardous chemicals control in 2005, no hazardous chemical substances have been used in new products, and most legacy products have also been converted to meet compliance. As of the beginning of 2023, there were still 632 products not yet compliant. After product discontinuation and design changes, all were in compliance with control requirements by the end of 2024. In 2025, hazardous chemicals were no longer used in existing finished products.

New suppliers are required to pass performance evaluations and complete supplier evaluation forms in accordance with the Supplier Management Regulations prior to engaging in transactions. They are also required to comply with the Chroma Supply Chain Code of Conduct and sign a procurement contract, an Integrity Commitment, and an Environmental Protection Declaration. In 2025, a total of 54 new suppliers were added, of which 46 met the criteria for exemption from on-site evaluation, and 8 underwent on-site evaluations. Suppliers are important partners in the Company's operations, and both parties jointly pursue sustainable business operations and growth.

Existing suppliers are required to pass an annual performance evaluation. For evaluation results, please refer to the existing supplier management process below.

In accordance with the "Supplier Management Procedures," when selecting new suppliers, the procurement unit requests suppliers to provide material pricing, lead time, specifications, or samples, which are then reviewed and confirmed by the relevant requesting units. Suppliers are also required to perform a self-assessment, and on-site evaluations are conducted when necessary.
The evaluation items include A~M, a total of 12 items. Among them, the corporate sustainability management section includes environmental management, occupational health and safety management, corporate social responsibility, and hazardous substances management. In 2025, there were 54 new suppliers, all of whom underwent corporate sustainability management evaluation.

In addition, to further understand how new suppliers are preparing for the current wave of ESG initiatives, a risk assessment questionnaire is conducted alongside the supplier self-assessment. The assessment covers:

In 2025, there were a total of 728 suppliers, including both new and existing ones. Of these, 255 were suppliers that had a total transaction amount exceeding NT$5 million in 2024 and were new suppliers in 2025. Through responsible supply chain management, Chroma has signed regulatory documents with its suppliers and maintained close communication and cooperation to achieve mutual development and sustainability.

In line with its commitment to and expectations for sustainable supply chain management, Chroma requires new suppliers to sign an "Integrity Commitment" annually. In 2025, 54 new suppliers were onboarded, of which 45 responded to the Integrity Commitment, achieving a response rate of 83.33%. Additionally, a total of 204 suppliers responded to the Risk Assessment Questionnaire, with a response rate of 80%. Suppliers who have not yet responded will be followed up and assisted in signing the required document. The Company will work with its suppliers to create a sustainable supply chain and provide customers with responsible, high-quality services.

In 2025, 255 suppliers signed the Environmental Protection Declaration, Conflict Minerals Survey, and Risk Assessment Questionnaire.

At present, we conduct supplier chain evaluation through the comprehensive supply chain management approach based on Q (Quality), C (Cost), D (Delivery) and S (Service). The objective of supplier management is the fulfillment of commitment to our trading partners to work closely with them through the QCDS supply chain evaluation approach. We seek effective management of logistics and the flow of information and cash. We aim to establish a sustainable and stable supply chain system managed by the vertical integration of the upstream and downstream systems.

Based on the total score of each evaluation item, suppliers are classified into grades A, B, C, and D.
Grade A suppliers: Preferred suppliers.
Grade B suppliers: Qualified suppliers.
Grade C suppliers: Conditionally approved suppliers.
Grade D suppliers: Suppliers under observation, given a six-month period to implement corrective actions. If they still fail to meet the requirements, their supplier qualification will be revoked.

In 2025, a total of 728 suppliers underwent "performance evaluations," including 261 Tier-1 suppliers with annual transaction amounts exceeding NT$5 million. ESG-related surveys are scheduled for April 2026. All evaluation results fell within grades A, B, and C. After years of evaluation, most suppliers are able to meet our requirements. Moving forward, senior management from the Quality Assurance and Procurement units will continue to oversee the process.

In 2025, there were 6 Grade D suppliers, of which 5 were required to undertake corrective actions or re-evaluation, and 1 was suspended. After guidance and observation by Chroma, 5 suppliers were reinstated as qualified suppliers. One supplier was disqualified for failing to meet performance evaluation standards despite the implementation of corrective measures.

To build a sustainable supply chain, we classify key suppliers based on annual transaction amounts.

Chroma invites customers and suppliers to jointly build a low-carbon supply chain and collaborate in creating a sustainable business model.