Our Fabless Production Model
We operate on a fabless manufacturing model, outsourcing our fabrication, assembly, test, and distribution. This strategy allows the company to focus on designing innovative products while minimizing fixed costs and capital expenditures. Within our company, the supply chain management team is responsible for developing and maintaining long-term supplier relationships. The global operations team is responsible for package development, test program development, and quality.
Supply Chain Management
At Cirrus Logic, we hold ourselves and our suppliers to a high standard of professional conduct. We focus proactively on supply chain due diligence within our manufacturing process to identify, assess, and mitigate potential risks.
As part of this effort, we are an affiliate member of the Responsible Business Alliance (RBA), an industry coalition dedicated to corporate social responsibility in global supply chains, including ensuring safe working conditions and respect for the environment. We publicly declare our support for the RBA Code of Conduct and implement appropriate due diligence in line with its standards through effective management systems. We require our manufacturing suppliers to acknowledge their obligation to comply with our Supplier Code of Conduct, which communicates our standards related to labor, health and safety, environment, ethics, and management systems. Our code was developed with input from both the RBA Code of Conduct and more stringent customer requirements, and it is regularly reevaluated and updated to address emerging risks and regulations.
In addition, all of the company’s foundries, assembly, and test suppliers maintain ISO 14001 environmental management system certificates. This demonstrates their commitment to high environmental standards and responsible management of related environmental impacts.
Visit our Supplier Quality Management site for more information on how we build product quality through supplier relationships.
Supplier Engagement
Over the past two years, Cirrus Logic has engaged with our suppliers to better understand their existing sustainability practices and identify areas for collaboration and continuous improvement. We believe this may contribute positively to our business resilience long term.
In FY24, we introduced a new program to conduct additional due diligence and further assess potential risk in our supply chain. This program consists of two pillars:
Risk Assessment
The first pillar leverages existing industry standards by utilizing RBA tools to assess the risk profiles of our foundry, assembly, and test suppliers through their performance as measured by the RBA’s Validated Assessment Program (VAP). The VAP is the industry standard for on-site supplier compliance assessment and is conducted by independent third-party audit firms. These audits produce in-depth evaluations of each supplier, as measured against the RBA Code of Conduct.
Sustainability Expectation
The second pillar establishes and communicates to our suppliers through a supply chain policy specific expectations for their activities relating to emissions and commitment to sustainability. A critical part of this program requires our suppliers to track and report relevant data to us on an annual basis.
We believe this program will assist in differentiating the risk level of our manufacturing suppliers and enable Cirrus Logic to focus resources on higher-risk suppliers to help improve their sustainability performance.
Supply Chain Ethics
Cirrus Logic is committed to the highest standards of product quality and business integrity in all relationships with its third-party suppliers. Cirrus Logic also commits to ensuring that working conditions throughout our supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally and socially responsible. We are committed to acting in an ethical manner, with integrity and transparency in all business dealings. We share our current Anti-Slavery Statement below, and you can also review our prior 2020, 2021 and 2022 statements.
Responsible Sourcing
Cirrus Logic collaborates closely with our supply chain partners to support responsible sourcing of materials. Each year, to be transparent, we leverage our membership in the Responsible Minerals Initiative to prepare a Conflict Minerals Report that summarizes our due diligence efforts. You can read more in our current Conflict Minerals Report.
Product Responsibility
Cirrus Logic is committed to prohibiting and restricting the use of certain hazardous substances in the design and manufacturing of our semiconductors. We conform to applicable regulatory requirements including EU RoHS and EU REACH compliance to minimize environmental impacts.
Refer to the Corporate Compliance site for additional information.
