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TriQuint Policy on Conflict Minerals - TriQuint Semiconductor

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<str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> <str<strong>on</strong>g>Policy</str<strong>on</strong>g> <strong>on</strong> C<strong>on</strong>flict <strong>Minerals</strong><br />

<str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> Semic<strong>on</strong>ductor, Inc.<br />

2300 NE Brookwood Pkwy<br />

Hillsboro, Oreg<strong>on</strong> 97124<br />

USA<br />

Thank you for your request c<strong>on</strong>cerning C<strong>on</strong>flict <strong>Minerals</strong> in <str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> products. <str<strong>on</strong>g>TriQuint</str<strong>on</strong>g><br />

has been working with its supply chain for almost three years, tracing the origins of the<br />

C<strong>on</strong>flict <strong>Minerals</strong> derivatives in its products. <str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> shares your c<strong>on</strong>cerns about the<br />

use of natural resources to fund armed c<strong>on</strong>flict in the Democratic Republic of the C<strong>on</strong>go<br />

(DRC), and is working to ensure that our activities are not c<strong>on</strong>tributing to the issue. At<br />

the same time, we also want to make sure that our acti<strong>on</strong>s do not lead to a ban <strong>on</strong> all<br />

minerals coming from the DRC regi<strong>on</strong>, as that would unfairly impact the many legitimate<br />

artisanal miners working there.<br />

Dodd-Frank Wall Street Regulati<strong>on</strong> and C<strong>on</strong>sumer Protecti<strong>on</strong> Act Requirements<br />

It is important to understand the requirements of the Dodd-Frank Wall Street Regulati<strong>on</strong><br />

and C<strong>on</strong>sumer Protecti<strong>on</strong> Act signed <strong>on</strong> July 21, 2010. Sec. 1502 of this bill requires<br />

companies that report to the SEC and whose manufactured goods c<strong>on</strong>tain metals derived<br />

from C<strong>on</strong>flict <strong>Minerals</strong> or any other mineral or its derivatives determined by the<br />

Secretary of State to be directly or indirectly financing c<strong>on</strong>flict in the Democratic<br />

Republic of the C<strong>on</strong>go (DRC) or an adjoining country to:<br />

a. Disclose annually <strong>on</strong> the company’s website whether any C<strong>on</strong>flict <strong>Minerals</strong> used<br />

in the company’s products originated from the DRC or an adjoining country.<br />

b. If the C<strong>on</strong>flict <strong>Minerals</strong> did originate in the DRC or adjoining countries, the<br />

company must file annual reports to the SEC describing the Due Diligence<br />

measures taken to identify the sourse of the C<strong>on</strong>flict <strong>Minerals</strong> used in the<br />

company’s products.<br />

c. This report should be audited and certified by an independent 3 rd party with the<br />

company’s annual SEC report that includes:<br />

i. a descripti<strong>on</strong> of the products manufactured or c<strong>on</strong>tracted to be manufactured<br />

that are not c<strong>on</strong>flict free,<br />

ii. the identity of the independent auditors of the report,<br />

iii. the facilities used to process the c<strong>on</strong>flict minerals,<br />

iv. the country of origin of the c<strong>on</strong>flict minerals,<br />

v. the efforts to determine the mine or locati<strong>on</strong> of origin, and<br />

vi. a certificati<strong>on</strong> statement by the company.<br />

What are C<strong>on</strong>flict <strong>Minerals</strong> and their derivatives?<br />

The Dodd-Frank Wall Street Regulati<strong>on</strong> and C<strong>on</strong>sumer Protecti<strong>on</strong> Act defines “C<strong>on</strong>flict<br />

<strong>Minerals</strong>” as:<br />

a. Columbite-tantalum (coltan), cassiterite, gold, wolframite, or their derivatives; or


<str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> Semic<strong>on</strong>ductor, Inc.<br />

2300 NE Brookwood Pkwy<br />

Hillsboro, Oreg<strong>on</strong> 97124<br />

USA<br />

b. Any other mineral or its derivatives determined by the Secretary of State to be<br />

financing c<strong>on</strong>flict in the DRC or an adjoining country.<br />

It is important to note that this definiti<strong>on</strong> of C<strong>on</strong>flict <strong>Minerals</strong> means that all coltan,<br />

cassiterite, gold, and wolframite are C<strong>on</strong>flict <strong>Minerals</strong>, regardless of the source of the<br />

minerals. If the source was determined to be located in the DRC or adjoining countries<br />

(Angola, C<strong>on</strong>go, Central African Republic, Sudan, Uganda, Rwanda, Burundi, Tanzania,<br />

and Zambia), then reporting to the SEC is required, al<strong>on</strong>g with the audited and certified<br />

due diligence report, as described above.<br />

The comm<strong>on</strong> derivatives from these minerals are:<br />

a. Coltan – columbium (niobium) and tantalum<br />

b. Cassiterite – tin<br />

c. Gold<br />

d. Wolframite – tungsten<br />

<str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> uses all five of these metals in its products. Not every product c<strong>on</strong>tains every<br />

metal, but almost every product c<strong>on</strong>tains at least <strong>on</strong>e of these metals.<br />

What has <str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> d<strong>on</strong>e so far?<br />

<str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> has modified its Banned and Restricted Substances Specificati<strong>on</strong> to ban metals<br />

from the C<strong>on</strong>flict Regi<strong>on</strong> that are c<strong>on</strong>tributing to armed c<strong>on</strong>flict in the regi<strong>on</strong>. It is<br />

important to note that <str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> has not banned all C<strong>on</strong>flict <strong>Minerals</strong> from the DRC and<br />

adjoining countries – just those mineral sources that are being used to fund armed<br />

c<strong>on</strong>flict.<br />

<str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> has been working with its Customers and Suppliers to understand all of the<br />

issues around C<strong>on</strong>flict Metals. As menti<strong>on</strong>ed above, <str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> has been surveying its<br />

supply chain to trace the origin of the metals in comp<strong>on</strong>ents and materials purchased for<br />

almost three years. Due to recent industry focus <strong>on</strong> this issue, <str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> has begun to<br />

receive more detailed resp<strong>on</strong>ses from suppliers regarding the origins of the C<strong>on</strong>flict<br />

<strong>Minerals</strong> supplied. It is estimated that approximately 90% of the C<strong>on</strong>flict <strong>Minerals</strong><br />

origins have been traced either to the smelter or mines, and sometimes both. We have not<br />

identified any C<strong>on</strong>flict <strong>Minerals</strong> that originate in the DRC or adjoining countries at this<br />

time. If we identify any C<strong>on</strong>flict <strong>Minerals</strong> sourced from this regi<strong>on</strong>, we will work with<br />

the Electr<strong>on</strong>ic Industry Citizenship Coaliti<strong>on</strong> (EICC) and knowledgeable agencies and<br />

organizati<strong>on</strong>s to determine if the C<strong>on</strong>flict <strong>Minerals</strong> are a source of funding for armed<br />

c<strong>on</strong>flict. If we determine that the source is a legitimate, legally-operating mine, we will<br />

work to put into place appropriate risk-mitigati<strong>on</strong> measures to m<strong>on</strong>itor the mine’s<br />

activities. By these acti<strong>on</strong>s, we hope to mitigate the impact of the requirements of the<br />

Dodd-Frank law <strong>on</strong> the legal miners of the DRC and adjoining countries who are not<br />

c<strong>on</strong>tributing to the armed c<strong>on</strong>flict in the regi<strong>on</strong>.


<str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> Semic<strong>on</strong>ductor, Inc.<br />

2300 NE Brookwood Pkwy<br />

Hillsboro, Oreg<strong>on</strong> 97124<br />

USA<br />

<str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> has also put procedures in place to require all suppliers of new materials and<br />

comp<strong>on</strong>ents to investigate their supply chain to ensure that any C<strong>on</strong>flict <strong>Minerals</strong> in their<br />

products have not c<strong>on</strong>tributed to armed c<strong>on</strong>flict, prior to those materials being used in<br />

<str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> products.<br />

In additi<strong>on</strong>, <str<strong>on</strong>g>TriQuint</str<strong>on</strong>g> is a participant in the OECD C<strong>on</strong>flict <strong>Minerals</strong> Due Diligence Pilot<br />

Project, working to develop appropriate due diligence procedures for the management of<br />

C<strong>on</strong>flict <strong>Minerals</strong>.<br />

If there are any questi<strong>on</strong>s regarding C<strong>on</strong>flict Metals, Product Compliance, or Corporate<br />

Social Resp<strong>on</strong>sibility issues at <str<strong>on</strong>g>TriQuint</str<strong>on</strong>g>, please c<strong>on</strong>tact us at rohs_info@tqs.com.<br />

John Sharp Date: 10-Aug-2012<br />

Corporate Product Compliance Manager

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