Supplier diversity is a business strategy that drives the inclusion of diverse-owned businesses in the procurement of goods and services within an organization. Diverse groups vary globally in accordance with local laws but often include underrepresented groups such as women and local in-country minorities. Diverse companies are currently certified by being at least 51 percent owned, operated, and controlled by diverse individuals. Supplier diversity does NOT include lowering bidding standards or awarding business based on diversity status.
Three focus areas of the MOD working group include:
Awareness – Increase awareness of the benefits of having diverse ownership within the supply chain. Currently the MOD working group is developing a Supplier Diversity standard to distribute globally.
Ability – Increase the ability of diversely owned companies to compete on equal footing and win competitive bids with prime suppliers and end users
Adoption – Increase the adoption of diverse suppliers with the semiconductor industry based on their performance.
Key benefits of supplier diversity include:
- Promoting competition that drives improved innovation and cost savings.
- Enables companies with Supplier Diversity programs to qualify for new opportunities that require diverse supply chains.
- Aligns with common corporate values such as equality and awarding business to the best supplier.
History of Group
In 2018, SEMI members Applied Materials, Lam Research, TEL, and Intel approached SEMI with the idea to form a new special interest group that would work with to increase the available diverse suppliers within the semiconductor industry. SEMI was supportive and a small group formed with ad-hoc meetings. Over time the group increased in size and began developing a common standard to define supplier diversity within the industry and provide best practices. MOD has supported panels at multiple SEMICONs as well as other supplier diversity programming. A panel at SEMICON West 2022 highlighted what manufacturers are doing to support diverse suppliers and what those suppliers can do to participate in the semiconductor value chain. The MOD group continues to grow with expanding membership and encourages participation by all.
Partnering for Success - Strengthening the Supply Chain Through Diversity
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4 Ways to Get Involved!
Be Bold. Take the Lead – don’t wait for someone else
Join the SEMI Working Group
Garima Gautam - firstname.lastname@example.org
William Olson - email@example.com
Grow where you’re planted
Influence progress locally in your country or town
Mentor smaller companies
Start your own internal program
• Make public commitments
• Check your existing supply chain
• Encourage sub-suppliers to get certified
• Update policies to include diverse suppliers in bidding
• Participate in SEMI MOD sponsored events
Join an NGO
Many exist to develop diverse suppliers. See Reference section for a few to consider
Want Supply Chain Resilience? Call for Diverse Suppliers!
Roundtable discussion addressing the methodology and approach behind supplier diversity, industry/supplier connections (matchmaking), path to certification to engage with the semiconductor industry and the diverse supplier experience.
Diversity Certification & Benefits
Diversity certification of a supplier is important because it authenticates that the business is owned, managed, and controlled by a qualifying diverse group.