Tech industry is failing to root out forced labour in supply chains

Only 3 out of 45 of the world’s biggest ICT manufacturers score more than half marks

Human rights abuses in the supply chains of the electronics we all rely on are endemic. Policies and targets are improving, but the reality for the migrant workers who make up a growing proportion of the workforce, remains bleak.

Global tech giants NVIDIA, Qualcomm and Texas Instruments are among dozens of firms putting the lives and livelihoods of supply chain workers at risk by failing to meet even the most basic expectations of human rights due diligence, a new report published today reveals.

Only three out of 45 of the world’s biggest ICT companies scored over 50/100 for tackling forced labour and other human rights abuses in their supply chains, and the average score was just 20/100.

The analysis comes courtesy of KnowtheChain, a resource provided for companies and investors by the Business & Human Rights Resource Centre. The KnowTheChain ICT Benchmark 2025, published today, is based on research conducted between June to December 2024. It examines the 45 largest global ICT manufacturers and benchmarks them against a range of indicators including: recruitment, purchasing and monitoring practices, and workers’ rights to organise.

Research findings

Long, complex supply chains hide more than cybersecurity risks and the potential for economic disruption. The welfare of the workers assembling our phones, laptops and high-performance chips necessary for generative AI to fulfil its potential is a subject which hasn’t received any real attention since the suicides at the Foxconn factory in China briefly troubled the national press in 2011.

This research suggests that, whilst the most egregious forms of abuse have reduced in frequency, there remains much to do.

In addition to the average score being just 20/100, almost half (20) of the firms within the analysis scored less than 15/100. This includes BOE (0), SMIC (3), Luxshare Precision Industry (4). BOE and Luxshare Precision Industry are key suppliers for Apple.

Broadcom and Infineon Technologies (both 8), FujiFilm (9), Panasonic (10), NVIDIA (11), Texas Instruments (12), Motorola and Canon (both 13), and Qualcomm (14).

Only three manufacturers scored over 50 - Samsung Electronics (61), Hewlett Packard Enterprise (53) and Cisco Systems (51).

KnowTheChain conducted the research by contacting all the benchmarked companies in April 2024, inviting them to join introductory webinars to ensure their participation in the research. They were sent questionnaires and given the opportunity to review initial findings and disclose additional information from September to November 2024. KnowTheChain also evaluated additional public disclosure provided by nearly two thirds (64%) of the companies.

KnowTheChain also conducted qualitative research, interviewing 29 migrant workers across 16 facilities in Taiwan. Taiwan was selected because it produces 90% of the worlds advanced chips. Taiwan has a large migrant workforce, and that brings a lot of associated risks of forced labour and exploitative practice.

A case study highlighted by the report was of Bangladeshi migrant workers at Kawaguchi Manufacturing, a plastics factory in Malaysia supplying two of the benchmarked companies. Workers reported they had not been paid for up to six months and were forced to work seven days a week. They had also been charged extortionate recruitment fees to obtain their jobs which had caused them to incur debt. If workers complained, they were threatened with deportation.

Growing reality gap

What the research picks up is the same problem as seems to be occurring across all aspects of ESG assessment and reporting. There is progress in establishing policies and targets, but a growing gap between policy and practice, in this case on the fundamental due diligence processes that are critical to addressing forced labour.

For example, two thirds disclosed how they conduct human rights risk assessments on their supply chains but just one in five disclosed specific examples of engaging with stakeholders to assess risks showing little evidence of commitment to worker-centric models of risk identification.

Like so many of us, it seems that these companies just don’t want to know.

Other headlines from the research include the fact that the ‘Just-in-Time’ production models which are already widely used in the sector create a greater risk of abuse to workers. This risk is likely to become more pronounced as the economic uncertainty caused by tariffs and trade wars escalates.

Áine Clarke, Head of KnowTheChain and Investor Strategy at the Business & Human Rights Resource Centre said: ‘The ICT sector continues to neglect its responsibility to uphold worker rights across supply chains and underperforms compared to sectors like apparel & footwear on key issues like support for freedom of association. It must step up its efforts to root out forced labour in supply chains as a matter of urgency.

‘The benchmark findings on corporate human rights due diligence are particularly concerning as most electronics manufacturing is done in jurisdictions that pose heightened risk of forced labour including China, Taiwan and Malaysia where human rights risks are well documented.

‘While many companies are adept at disclosing human rights policies, there is little evidence these commitments are being implemented in practice or having an effect on workers on the ground. The identified and widening gap between corporate commitments and their implementation means workers continue to be at risk of exploitation

‘Paper promises are not enough to meet growing legal and stakeholder expectations. ‘Businesses must engage directly with rightsholders and move beyond a tick-box attitude to due diligence.’