Conflict Minerals: Impact of SEC Regulations

CONFLICT MINERALS IMPACTS OF SEC REGULATIONS updated data as of Dec. 1, 2012 WHAT ARE 3TG PARTS VS. CONFLICT MINERAL PARTS? The four minerals below comprise of what are called 3TG (three "T's and a "G"). When these materials originate in the Democratic Republic of the Congo (DRC) they are considered conflict minerals and now have a regulated obligation to be announced. There have been concerns that the trade of conflict minerals by armed groups is financing conflict in the DRC region and is contributing to a humanitarian crisis. WHY? Ta Au" TIN TUNGSTEN TANTALUM GÖLD MAIN PRODUCT CATEGORIES CONTAINING 3TG MINERALS Quantity (in millions) 3 2.5 2 1.5 1 0.5 Electric and Electronic Passives Interconnects Semiconductors Optoelectronics and Displays Components Product percentage that contains 3TG 29.2% 25.2% 27.9% 18.7% 6.5% Electric and Electronic Components Passives Interconnects Semiconductors Optoelectronics and Displays Any product containing 3TG minerals does not necessarily contain conflict minerals. TOP 10 PRODUCTS WITH 3TG PARTS Electrical and Electronic Compotnents E Passives Interconnects MEMS Oscillators Connector Headers Connector Card Edge and PCB Receptacles 161 751 Capacitor Tantalum Solid SMD Crystal Oscillator Resistor Fixed Single-Surface Mount Switch Push Button Resistor Fixed Switch Slide Resistor Trimmers, Potentiometer Single-Through Hole and Rheostat 60% 20% 20% are Passives including Frequency Controls, Capacitors, and Resistors are Electrical and Electronic Components both Electromechanical are Interconnects including Connectors CONFLICT MINERALS: THE SEC of all parts contain 3TG Minerals 3TG 25% and could potentially have Conflict Minerals! NEW REGULATION: “THE RULE" As of Aug. 22, 2012, the Securities and Exchange Comission is mandating public disclosure of conflict minerals. This will make US Manufacturers and Contract Manufacturers file a form with the SEC called Form SD if they are using conflict materials that originated in the Democratic Republic of the Congo (DRC). According to the SEC, "companies that are required to file a Conflict Minerals Report must exercise due diligence on the source and chain of custody of their conflict minerals". The first report is due on May 31, 2014 (for the 2013 calendar year) and then annually. POLICY Only 52% of parts and 17% of suppliers with 3TG Minerals have a published policy regarding Conflict Minerals How Suppliers with a published Conflict Mineral status are currently listed 40 Progress In Not 37 Confict Free Clear Some Suppliers with large quantities of parts containing 3TG Minerals have a confirmed conflict free status including: Samtec Texas Instruments CONFLICT FREE • AVX • KEMET Electronics COMPANY Vishay • TT electronics Only 30% of parts containing 3TG minerals are currently confirmed as Conflict Free Infographic by: Feeling overwhelmed by new Conflict Mineral policies? SILICONEXPERT TECHNOLOGIES Find out how SiliconExpert can help at www.siliconexpert.com CONFLICT MINERALS IMPACTS OF SEC REGULATIONS updated data as of Dec. 1, 2012 WHAT ARE 3TG PARTS VS. CONFLICT MINERAL PARTS? The four minerals below comprise of what are called 3TG (three "T's and a "G"). When these materials originate in the Democratic Republic of the Congo (DRC) they are considered conflict minerals and now have a regulated obligation to be announced. There have been concerns that the trade of conflict minerals by armed groups is financing conflict in the DRC region and is contributing to a humanitarian crisis. WHY? Ta Au" TIN TUNGSTEN TANTALUM GÖLD MAIN PRODUCT CATEGORIES CONTAINING 3TG MINERALS Quantity (in millions) 3 2.5 2 1.5 1 0.5 Electric and Electronic Passives Interconnects Semiconductors Optoelectronics and Displays Components Product percentage that contains 3TG 29.2% 25.2% 27.9% 18.7% 6.5% Electric and Electronic Components Passives Interconnects Semiconductors Optoelectronics and Displays Any product containing 3TG minerals does not necessarily contain conflict minerals. TOP 10 PRODUCTS WITH 3TG PARTS Electrical and Electronic Compotnents E Passives Interconnects MEMS Oscillators Connector Headers Connector Card Edge and PCB Receptacles 161 751 Capacitor Tantalum Solid SMD Crystal Oscillator Resistor Fixed Single-Surface Mount Switch Push Button Resistor Fixed Switch Slide Resistor Trimmers, Potentiometer Single-Through Hole and Rheostat 60% 20% 20% are Passives including Frequency Controls, Capacitors, and Resistors are Electrical and Electronic Components both Electromechanical are Interconnects including Connectors CONFLICT MINERALS: THE SEC of all parts contain 3TG Minerals 3TG 25% and could potentially have Conflict Minerals! NEW REGULATION: “THE RULE" As of Aug. 22, 2012, the Securities and Exchange Comission is mandating public disclosure of conflict minerals. This will make US Manufacturers and Contract Manufacturers file a form with the SEC called Form SD if they are using conflict materials that originated in the Democratic Republic of the Congo (DRC). According to the SEC, "companies that are required to file a Conflict Minerals Report must exercise due diligence on the source and chain of custody of their conflict minerals". The first report is due on May 31, 2014 (for the 2013 calendar year) and then annually. POLICY Only 52% of parts and 17% of suppliers with 3TG Minerals have a published policy regarding Conflict Minerals How Suppliers with a published Conflict Mineral status are currently listed 40 Progress In Not 37 Confict Free Clear Some Suppliers with large quantities of parts containing 3TG Minerals have a confirmed conflict free status including: Samtec Texas Instruments CONFLICT FREE • AVX • KEMET Electronics COMPANY Vishay • TT electronics Only 30% of parts containing 3TG minerals are currently confirmed as Conflict Free Infographic by: Feeling overwhelmed by new Conflict Mineral policies? SILICONEXPERT TECHNOLOGIES Find out how SiliconExpert can help at www.siliconexpert.com