© 2013 N-Able Group , All Rights Reserved

N-Able Group International

Ron Jones November 13, 2014


Most companies were conflict undeterminable Most filers did not declare CF status Many filing errors and/or omissions

Didn’t follow OECD Guidelines Declared Conflict Free in CMR without audit Omission of smelter information

Consequences of SEC filing will be minimal Consequences of not conflict free product may be major


Company Filing Declaration

Semiconductor

Intel Form SD, CMR, audit CF stated (IC’s), CU stated (other)

Qualcomm Form SD, CMR, no audit Conflict Undeterminable stated

Marvell Form SD, CMR, no audit Conflict Undeterminable stated

ON Semi Form SD, CMR, no audit Conflict Undeterminable stated

Broadcom Form SD, CMR, no audit Conflict Undeterminable implied

TI Form SD, CMR, no audit Conflict Undeterminable implied

NVIDIA Form SD, CMR, no audit Conflict Undeterminable implied

Analog Devices Form SD, CMR, no audit Conflict Undeterminable implied

Micron Form SD, CMR, no audit Conflict Undeterminable implied

Freescale Form SD, CMR, no audit Conflict Undeterminable implied

AMD Form SD, CMR, no audit Conflict Undeterminable implied

Exar Form SD, CMR, no audit Conflict Undeterminable implied


Company Filing Declaration

OEM Apple Form SD, CMR, no audit Conflict Undeterminable implied HP Form SD, CMR, no audit Conflict Undeterminable implied Microsoft Form SD, CMR, no audit Conflict Undeterminable implied Foundry TSMC Form SD Conflict Free by RCOI UMC Form SD Conflict Free by RCOI GlobalFoundries Private – not required N/A

OSAT ASE Form SD, CMR, no audit Conflict Undeterminable stated Amkor Form SD, CMR, no audit Conflict Undeterminable implied SPIL Form SD, CMR, no audit CF stated, CU stated STATSChipPAC Non US filer N/A



Source: Elm Group & Georgetown Law School

Semiconductor

Med/Surgical Equipment

Auto Parts Broadcast &

Communication Electromedical

Apparatus

10% of filers primary SIC code was semiconductor

Requires that you plan ahead Product shipped on January 1, is conflict free All product shipped during the year is conflict free Can split conflict free from conflict undeterminable

in CMR for filing Must have an audit if declaring conflict free Can file conflict undeterminable in 2014 Cannot file conflict undeterminable in 2015

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Reserved

Intel filed that all IC’s were Conflict Free and stated such for 2013

Intel had an IPSA to enable this Conflict Free declaration

Every IC manufactured and shipped in 2013 used conflict free materials

Non conflict free IC’s could be shipped in 2013 if they were manufactured before 2013


On January 6th, Intel announced that every IC shipped in 2014 would be conflict free

Every IC manufactured in 2014 would use conflict free materials

Any IC manufactured before 2014 but shipped in 2014 would have conflict free materials

Implies that any non-conflict free IC’s would be scrapped and never shipped

Assumed that they will file IC’s as conflict free and have an IPSA to enable this declaration © 2013 N-Able Group , All Rights

Reserved

Every IC manufactured in 2015 would use conflict free materials

Any IC’s manufactured before 2015 but shipped in 2015 would be conflict free

Assumed that they will file IC’s as conflict free and have an IPSA to enable this declaration


Smelter Categories Status

CFSP Compliant Certified with a future expiration date

CFSP Expired – Re-audit in Process (RIP) Certification expired, re-audit underway

CFSP Expired – No RIP Certification expired, no re-audit underway

CFSP Active Filed intent with CFSI, progress monitored

Tungsten Industry – CM Consortium Pledged to get certified within 2 years

CFSP Not Involved No involvement with CFSP – not on any list


Material Compliant Expired RIP

Expired No RIP

Active Not Involved

Total SoR’s on CMRT List

Gold 44 5 12 10 52 123

Tin 18 0 1 26 22 67

Tantalum 26 14 0 6 2 48

Tungsten 7 0 23* 8 2 40

Total 95 19 36 50 78 278

Percent 34% 7% 13% 18% 28% 100%


Based on CFSI Updates through 11/11/14

* TI-CMC


Document Release/Update

EICC/GeSI 2.03a July 25, 2013

CMRT 3.0 April 9, 2014

CMRT 3.01 May 30, 2014

CMRT 3.02 November 7, 2014

CFSI Gold 04/25, 06/20, 07/19, 08/27, 09/02, 09/19, 10/16, 10/23, 11/07, 11/09, 11/10, 11/11

CFSI Tin 04/25, 06/20, 07/19, 08/19, 09/19, 10/03, 10/23, 10/31

CFSI Tantalum 04/25, 06/20, 07/19, 08/27, 09/19, 10/15, 10/24, 10/29, 11/08

CFSI Tungsten 04/25, 06/20, 07/19, 08/26, 09/17, 10/15, 10/24, 11/04, 11/06, 11/07

CFSI Active 09/19, 10/09, 10/30, 11/07

Intended for CY2014 and CY2015 Smelter List increased by 62 Change Types

Some are brand new smelters seen for the first time Some previewed when they appeared on the periodic

updates to the Au, Sn, Ta, W and Active smelter lists. Some have disappeared because they were found to not

be carrying out smelter operations or did not meet the definition of a smelter.

Several were removed because they were converted from a company level entry to site level entries.

© 2013 N-Able Group , All Rights

Reserved

CID Company Smelter Site

CID000654 CID002544 H. C. Starck Map Ta Phut, Rayong, Thailand

CID000654 CID002545 H. C. Starck Goslar, Lower Saxony, Germany

CID000654 CID002546 H. C. Starck Laufenburg, Baden-Württemberg, Germany

CID000654 CID002547 H. C. Starck Hermsdorf, Thuringia, Germany

CID000654 CID002548 H. C. Starck Newton, Massachusetts, USA

CID000654 CID002549 H. C. Starck Mito, Ibaraki, Japan

CID000654 CID002550 H. C. Starck Laufenburg, Baden-Württemberg, Germany


CID000654 has been removed from smelter list

Item Attribute Company Products

Driver SEC Final Rule Customer’s Compliance

Scope Company (Product) Individual Product (IC)

Time Annual Real time (daily)

Consequence CSR PR, Investment Ability to ship


Consequences of non CF SEC filing will be minor

Consequences of non CF products may be major

You DO NOT have to become conflict free! Public and private companies face risks if products are not

Conflict-Free Customer may refuse shipments Customer may move you to backup supplier status Customer may remove you from AVL

Companies are already losing business because their products are not conflict free

Customer position on CM will be the deciding factor

PO’s now have CF clauses . . . how many will be enforced?



Your Product PO Action Action

Conflict-Free Accept PO Ship Conflict-Free Product

Not Conflict-Free Decline PO Do not Ship – Lose Revenue

Not Conflict-Free Accept PO Ship Non Conflict-Free Product

Not Conflict-Free Modify PO Request a Waiver to Ship Non Conflict-Free Product

Not Conflict-Free Modify PO Request CM clause change if not reasonable

Intel 60 HP 54 Philips 48 SanDisk 48 AMD 44 RIM 42 Acer 40 Dell 40 Apple 38 Microsoft 38

Moto Mobil 35 Nokia 35 Panasonic 33 IBM 27 LG 27 Samsung 27 Sony 27 Toshiba 21 Lenovo 17 HTC 4


Every Intel Microprocessor we manufacture in 2014 will be conflict-free. Brian Krzanich, Intel CEO, 1/7/14 at CES

Purchase Order Terms and Conditions include: “Products supplied to us must be conflict free”


Conflict Free Computer Company

Component Supply Base

How do you get parts to build and ship a conflict free computer?

Become conflict-free for all your products Work with supplier to get only conflict-free product Obtain waiver from customer using corrective action plan Negotiate changes to unreasonable/incorrect clauses Exercise reasonableness in determining if a material

came from outside DRC+9 or from scrap/recycle SEC says determination should be reasonable not absolute

Get independent conflict minerals data Have continuous improvement and progress documented Exercise “all products but not all suppliers” clause


Demand only Conflict-Free materials or products from your suppliers . . . the push down method


N-Able Group and ProCM manage all aspects of Conflict Minerals, RoHS and REACH compliance

Gather, store, analyze, manage and report compliance data and information to suppliers, company personnel and customers

Actively work with suppliers to improve their compliance support via direct material vendor improvement and selective manufacturing sourcing

We remove CM, RoHS and REACH from your plate . . . think ADP for Payroll


Semi Focused – Fabless, IDM, Foundry, OSAT, Mat’l Valuable for Public and Private companies Wednesday, November 19 8:00 am – 12:00 pm Exar Corporation 48720 Kato Road Fremont, CA 94538 Free



Fab and assembly materials

Assembly materials

Fab materials

Fabless and IDM companies

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