Localized Supply Chain
Sustainable Procurement
In addition to aggressively localizing technology and equipment, THSRC has implemented a localized procurement strategy on the premise of ensuring the safety and quality of equipment. This strategy not only decreases reliance on foreign suppliers, but also reduces carbon footprint from overseas transportation, achieving the dual effect of balancing procurement costs and effectively shortening the lead time for equipment conversion. At the same time, local suppliers of rail transportation industry can take this opportunity to obtain certification of the international railway industry standard quality system, greatly enhancing the image and popularity of the domestic rail transportation industry.
In 2025, the total amount of material purchases conducted by THSRC was approximately NT$2.7 billion, where the amount of procurement from local suppliers accounted for 81.2% of the total amount. Meanwhile, the amount of labor service procurement in 2025 exceeded NT$19.9 billion, of which 99.5% came from local service procurement. Over the past two years, both material and labor service procurement from local suppliers have shown significant growth. The figures are presented right.
Procurement from Local Suppliers
To achieve sustainable procurement's goal, THSRC have followed the "Green Procurement Declaration for Private Enterprises and Group" announced by the Ministry of Environment of the Executive Yuan, giving priority to the procurement of products and services with eco-labels, green labels, carbon footprint labels, and carbon reduction labels. In 2025, the total amount of green procurement reached NT$390 million, covering key items such as administrative supplies, business machine supplies, drinking fountains, electric refrigerators, and green building materials (such as energy labeling equipment and products with carbon footprint certification). Moreover, since THSRC has obtained carbon label certification, expenses incurred from employees traveling for business by HSR were also included in the green procurement amount, demonstrating our active decarbonization efforts across operational processes and the value chain. THSRC mandates suppliers to provide products that comply with green procurement and integrates the supplier's sustainability-oriented performance into the supplier selection criteria, while continuously verifying whether suppliers adhere to environmental regulations. The details of green procurement are as below:
Green Procurement Amount in 2024-2025
Local Development
In its efforts to promote the growth of local rail technologies and capabilities, THSRC is committed to localizing the rail supply chain. Through collaborations with government research projects and universities, the Company is expanding the domestic supplier base and deepening the local supply chain for high-speed rail materials and components. In 2025, THSRC successfully completed 58 alternative sourcing cases, and visited a total of 157 local suppliers. Through joint work with 142 alternative materials-developing suppliers from 2011 to 2025, the Company was able to save approximately NT$4.52 billion. In addition to expanding the recruitment of manufacturers, THSRC has also broadened the cooperation with industry, government, academia, and research to jointly develop high-speed railway equipment and system innovation technology. Through these efforts, THSRC has contributed to the localization of railway transportation and achieved the goal of "Localization of Domestic Vehicles." Relevant cooperation projects in 2025 include:
THSRC continues the 5-year medium-to-long term plan (2023-2027) to create a better service environment for passengers. In 2025, the Company actively implemented the railway industry localization strategy by collaborating with domestic manufacturers to jointly develop bolts and fasteners for tracks. We passed the EN 13146 standard test, which ensured that fasteners (such as elastic clips, bolts, and spacers) between the rails and sleepers maintain track stability and safety under highspeed, high-pressure, and dynamic loads. The plan also supported technology upgrades and development in related domestic industries.
Local Business
To promote local industries and create local business opportunities, THSRC has established HSR station markets or local specialty pavilion across the entire line. The Company takes concrete actions to support products made from local materials and create local employment opportunities. The Company imposes low rent to assist local businesses in setting up stalls in these markets or product museums to promote locally produced goods. For example, Yunlin Station incorporated the unique characteristics of Yunlin County's agricultural and food industries by accommodating multiple local brands into its market channels, such as Lover Honey Co., Ltd. and Uncle Gan's Sweet Potato. These outlets exhibit and sell agricultural products and unique souvenirs based on local produce, providing passengers with direct access to Yunlin's high-quality agricultural achievements at this major transportation hub.
