Sustainable Supply Chain

Telecom Industry Value Chain

Issue Date:2023/06/29

Value Chain of Telecom Industry

The value chain of the telecom industry is an interdependent and interlocking ecosystem. Construction of infrastructure offers a quality fundamental security; communication services provide basic communication functions; and value-added services supply more diverse and innovative application services. The above-mentioned upstream and downstream elements jointly foster the value chain of the telecom industry. Mobilized by digital convergence, content providers/integrators, application service providers, network equipment and terminal device suppliers, etc. are even more important value chain partners for telecom service providers.

Chunghwa Telecom adopts the strategy of “extensive alliance” to, ongoingly better itself in services of fixed network, mobile, data, and eICT as well as strengthen the partnership with its suppliers throughout the supply chain to form a closer industrial ecosphere, introduce more quality services, and facilitate the digital upgrade and transformation of the industries in Taiwan together.


CHT Supply Chain

The CHT supplier partners can be divided into types of property (50%), service (13%), and construction (16%), projects and tenders (14%), repair (2%), and other (5%). Now that its scope of operation is mainly of Taiwan, aside from professional network communication equipment to be procured internationally, we substantially put the philosophy of “local procurement” into action to facilitate the development of local economy. The ratio of local procurement at Chunghwa Telecom was 97% in 2022, increased by 8% compared to last year. The total procurement amounted over NT$70 billion.  

2022 Supply Chain Spend Analysis
Category Spend Value (% of total spend) Number of Suppliers
Total 27.54% 691
Domestic 27.49% 690
Foreign 0.05% 1
Marketing/consulting services/general affair
Total 15.62% 2,380
Domestic 15.56% 2,369
Foreign 0.06% 11
Consumer Electronics
Total 25.46% 70
Domestic 25.46% 70
Total 1.86% 677
Domestic 1.86% 677
Information Services and Equipment
Total 3.73% 332
Domestic 2.42% 312
Foreign 1.31% 20
Telecommunication Equipment
Total 25.80% 1,171
Domestic 20.07% 1,158
Foreign 5.73% 13
100.00% 4,351

When a supplier has transactions with Chunghwa Telecom in different transaction categories (for example, Supplier A has transactions in both engineering and decoration), the number of suppliers will be counted repeatedly according to the type of suppliers, but the total number of suppliers is based on different Repeat suppliers for statistics.