Intel ahead of curve on supply chain diversity targets

Intel has passed the $2 billion mark in diverse supplier spending, the company has said.

The announcement follows Intel’s pledge three years ago to increase global annual spending with diverse suppliers to that level.

The company says its commitment to a more inclusive supply chain allows it to “leverage our purchasing power to address social gaps in our pursuit of fair business practices”. 

Included in the diversity milestone are Intel says it has achieved earlier than slated:

• $250 million with US black-owned suppliers by the end of 2023.

• $800 million annually with minority-owned suppliers globally by the end of 2023.

The company says it has been able to hit these targets earlier than planned because its processes and incentives encourage diverse suppliers to work with it. Another reason given by Intel is that its rapid manufacturing expansion around the world in recent years has allowed it to bring in more suppliers than ever before.

Intel diversity programme 15 times 2015 levels

Intel Corporate VP of Global Supply Chain Operations, Jackie Sturm, said: “This $2.2bn represents nearly 15 times the annual total when our supplier diversity program launched in 2015, and double our 2019 results.

“When we launched our supplier diversity program there was limited awareness among semiconductor manufacturers of the positive benefits diverse suppliers bring to the supply chain. 

“Through several initiatives and proactive partnerships with our largest non-diverse suppliers and industry groups, we have led the expansion of diverse-owned suppliers across the semiconductor industry.”

In 2016, the company began inviting its manufacturing and construction suppliers to join it in building a more inclusive supply chain. 

“We encouraged these suppliers to create their own supplier diversity programs,” says Sturm.

She added: “We also report their spending with diverse subcontractors working on Intel contracts by incentivising them with supplier scorecard points, which are prerequisites for prestigious Intel supplier awards. While originally this initiative was small, today it represents 45% of our 2022 total reported diverse spending.”

In 2018, Intel, along with three of its largest suppliers, created the SEMI Manufacturing Owners Diversity (MOD) Working Group to further increase awareness and opportunities. 

“Now, this working group encompasses more than 70 corporations, diverse-owned companies and certifying NGOs,” says Sturm. “It has established a diversity baseline for the semiconductor supply chain that didn’t exist before.”