EX-1.02 2 d733854dex102.htm EX-1.02 EX-1.02

Exhibit 1.02

QuickLogic Corporation

Conflict Minerals Report

For The Reporting Period from January 1, 2013 to December 31, 2013

This Conflict Minerals Report (the “Report”) of QuickLogic Corporation (“QuickLogic” or the “Company”) has been prepared pursuant to Rule 13p-1 and Form SD (the “Rule”) promulgated under the Securities Exchange Act of 1934, as amended, for the reporting period January 1, 2013 to December 31, 2013.

The Rule requires disclosure of certain information when a company manufactures or contracts to manufacture products and the minerals specified in the Rule are necessary to the functionality or production of those products. The specified minerals referred to as “Conflict Minerals” are gold, columbite-tantalite (coltan), cassiterite and wolfamite, including their derivatives which are limited to tantalum, tin and tungsten. The “Covered Countries” for purposes of the Rule and this Report are the Democratic Republic of Congo (the “DRC”), the Republic of Congo, the Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia and Angola.

Description of the Company’s Products Covered by this Report

This Report relates to products: (i) for which Conflict Minerals are necessary to the functionality or production of that product; (ii) that were manufactured, or contracted to be manufactured, by the Company; and (iii) for which the manufacture was completed during calendar year 2013.

These products, which are referred to in this Report collectively as the “Covered Products,” are the following:

 

QuickLogic Product Platform Families

    Description    Status
ARCTICLINK®    Semiconductor device    DRC conflict undeterminable
ARCTICLINK II    Semiconductor device    DRC conflict undeterminable
ARCTICLINK III BX    Semiconductor device    DRC conflict undeterminable
ARCTICLINK III VX    Semiconductor device    DRC conflict undeterminable
ARCTICLINK 3 S1    Semiconductor device    DRC conflict undeterminable
ECLIPSE    Semiconductor device    DRC conflict undeterminable
ECLIPSE II    Semiconductor device    DRC conflict undeterminable
ECLIPSE E    Semiconductor device    DRC conflict undeterminable
PASIC®3    Semiconductor device    DRC conflict undeterminable
POLARPRO®    Semiconductor device    DRC conflict undeterminable
POLARPRO 3    Semiconductor device    DRC conflict undeterminable
QUICKDSP    Semiconductor device    DRC conflict undeterminable
QUICKPCI    Semiconductor device    DRC conflict undeterminable
QUICKRAM    Semiconductor device    DRC conflict undeterminable

Description of the Company’s Reasonable Country of Origin Inquiry

As described in this Report, we have determined that the following Conflict Minerals, namely gold, tantalum, tin and tungsten, are necessary to the functionality or production of products contracted to be manufactured by us during the calendar year 2013. As a result, we conducted in good faith a reasonable country of origin inquiry (“RCOI”) reasonably designed to determine if any of these Conflict Minerals originated in the Covered Countries and whether any of the Conflict Minerals may be from recycled or scrap sources. Our supply chain is complex, and there are many third parties in the supply chain between the ultimate manufacturer of the Covered Products and the original sources of Conflict Minerals. The Company does not directly purchase Conflict Minerals from mines, smelters or refiners. Therefore, the Company must rely on the entities we contract to manufacture the Covered Products to provide information regarding the country of origin of Conflict Minerals that are included in the Covered Products. In designing our RCOI, we employed a combination of measures to determine whether the Conflict Minerals in our Covered Products originated from the Covered Countries, and determined that the Company would survey each of its first tier contract manufacturers.

As such, our RCOI primarily consisted of submitting the conflict minerals reporting template prepared by the Electronic Industry Citizenship Coalition and Global eSustainability Initiative (“EICC-GeSI”) to the first tier contract manufacturers of our devices in 2013. Responses were reviewed for completeness, reasonableness and consistency, and we routinely followed up with our contract manufacturers for corrections and clarifications as needed.

We submitted this template to six contract manufacturers which represents 100% of our contract manufacturers. We received responses, which were periodically updated, from each of our manufactures, none of which provided sufficient information to determine the status of the facilities used to process the Conflict Minerals contained in our products.

Based on our RCOI, we were unable to determine that the Conflict Minerals did not originate in the Covered Countries, or if our Conflict Minerals came from recycled or scrap sources.

Description of the Company’s Due Diligence Process

Based on this information, we performed additional due diligence on the source and chain of custody of these Conflict Minerals based on the Organisation for Economic Co-operation and Development (“OECD”) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (“Framework”) to determine if the Conflict Minerals that may have originated in the Covered Countries benefited armed groups. After performing the RCOI and due diligence in conformity with the Framework, we determined that our Covered Products are DRC Conflict Undeterminable with regard to calendar year 2013 because, for each of our Covered Products, we were unable to comprehensively determine the origin of all Conflict Minerals used in our Covered Products, the facilities used to process them, their country of origin and their mine or location of origin.

The Company’s due diligence measures have been designed to conform to the framework in the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict-Affected and High Risk Areas: Second Edition, including the related supplements on gold, tin, tantalum and tungsten (the “OECD Guidance”). The OECD Guidance is an internationally recognized due diligence framework.

In accordance with the five-step OECD Guidance, the design of our due diligence includes, but is not limited to, the following five steps: (i) establishment of strong company management systems, (ii) identification and assessment of risks in the supply chain, (iii) designing and implementing a strategy to respond to identified risks, (iv) carrying out independent third-party audit of smelter/refiner’s due diligence practices and (v) reporting on supply chain due diligence. A description of certain activities undertaken by us in respect of each of the five steps of the OECD Guidance is described below.

 

1. Establishment of Strong Company Management Systems

We have completed a number of steps to establish a management system for addressing the sourcing of Conflict Minerals in our Covered Products. These actions include:

 

  a. Adopt and Commit to a Supply Chain Policy for Conflict Minerals: Our Conflict Minerals Policy is available at http://www.quicklogic.com/corporate/support/conflict-minerals-policy. Our Policy underscores the Company’s commitment to ethical business conduct and the responsible sourcing of minerals and to working with our suppliers to ensure compliance with SEC regulations.

Our Policy notes the Company’s support of the industry-wide efforts the EICC-GeSI are making to address responsible sourcing of minerals through the development of the Conflict Free Smeller Program (the “CFSP). Our policy discusses the Company’s adoption and use of the industry standard Conflict Minerals Reporting Template and Dashboard (the “Reporting Template”) developed by the EICC-GeSI to collect sourcing information related to conflict minerals as an element of our reasonable country of origin inquiry to verify the responsible sourcing of materials and to support compliance with SEC regulations.

 

  b.

Internal Management to Support Supply Chain Due Diligence: Our Vice President of Finance and CFO, Vice President of Operations, General Counsel and Environmental Compliance Specialist (the “Conflict Minerals Team”) participate in the design and execution of our conflict minerals program and cooperate to manage and support our supply chain due diligence. The Conflict Minerals Team identified the suppliers to be contacted and adopted and approved for use the Reporting Template discussed above. The Environmental Compliance Specialist interacts directly with our contract manufacturers to obtain updated and current Reporting Templates and analyzes the information provided by each contract manufacturer on the sourcing of the conflict minerals used in the manufacture of the Covered Products. Each response is reviewed to identify missing information and unclear responses. The Environmental Compliance Specialist meets regularly with the other members of the Conflict Minerals Team to discuss the results of the due diligence efforts and appropriate follow-up measures to

  be taken with our contract manufacturers. The General Counsel and Vice President of Finance and CFO report on the status of the Company’s supply chain due diligence at all regularly scheduled meetings of the Company’s Board of Directors (five times annually).

 

  c. Controls and Transparency to Support Supply Chain Diligence: We use the EICC-GeSI Reporting Template to identify the smelters and refiners that are in the supply chain of each of our contract manufactures. We periodically review and compare this list to the list of smelters and refiners identified by the EICC-GeSI to be active in the CFSP. This enables us to identify the smelters and refiners that have been determined to be conflict-free and those that are actively progressing towards an audit to determine their status. We have determined that this approach represents the most reasonable effort we can make to determine whether the minerals used in the production of our Covered Products are conflict-free.

 

  d. Supplier Engagement: We are dependent upon our contract manufactures to manufacture the Covered Products. We continue to work with our contract manufacturers to support their efforts to identify the sources and status of the Conflict Minerals used in our Covered Products and to encourage each smelter and refiner in our supply chain to become an active participant in the CFSP. We continue to actively engage with our contract manufacturers to strengthen our relationship with them and we have communicated to our contract manufacturers our commitment to sourcing Conflict Minerals in a manner that does not benefit armed groups in the Covered Countries.

 

  e. Grievance Mechanism: We have grievance mechanisms in place that enable employees and suppliers to report violations of the Company’s policies. We have a compliance hotline which is operated by an independent company that may be called at any time to report grievances and invite individuals with grievances to bring these matters to the attention of the Audit Committee of our Board of Directors by written correspondence on a confidential basis. We also employ an email address by which matters may be brought at any time to the attention of our Conflict Minerals Team by sending an email to conflictminerals@quicklogic.com.

 

2. Identification and Assessment of Risks in the Supply Chain

Because of our position within our supply chain, it is difficult for us to identify actors upstream from our first tier contract manufacturers. As discussed above, we identified each of our first tier contract manufacturers and we have relied upon them to provide us with the necessary information about the source of Conflict Minerals contained in the products they manufacture on our behalf. Our contract manufacturers are similarly reliant upon information provided by their suppliers to provide information regarding the country of origin of Conflict Minerals that are included in the Covered Products.

We requested each of our contract manufacturers to complete the Reporting Template developed by the EICC-GeSI and review the sourcing information provided in response to our requests for accuracy and completeness. In the event we find the responses to the Reporting Template unclear or incomplete, we contact the contract manufacturer in question for additional information and clarification. We intend to contact each of our contract manufacturers at least once every six months to check on the status of their continuing due diligence and to obtain updated information. We record all information obtained from the Reporting Templates to identify the smelters and refiners in our supply chain. We compare the list of the smelters and refiners in our supply chain to the lists compiled by the CFSP to determine which smelters have been determined to be compliant with the CFSP assessment protocols.

 

3. Designing and Implementing a Strategy to Respond to Identified Risks

In response to this risk assessment, the Company has an approved risk management plan which is implemented, managed and monitored through the above-described Conflict Minerals Team under the oversight of our Board of Directors. As noted above, we participate in the electronics industry’s EICC-GeSI Conflict Free Sourcing Initiative to identify smelters that provide material to our supply chain and to determine whether these smelters are compliant with the CFSI assessment protocols. We support the continued efforts of the EICC-GeSI to complete the audits of smelters that have agreed to date to participate in the CFSI and to encourage other identified smelters to become participants in the CFSI.

As a continuing part of our risk management plan, we have communicated our commitment to the use of conflict-free minerals in the manufacture of our Covered Products and our expectation that the manufacture of our Covered Products will be conflict-free.

4. Carrying Out Independent Third-Party Audit of Supply Chain Due Diligence at Identified Points in the Supply Chain

We do not have a direct relationship with any smelters or refiners in our supply chain and, as a result, we do not directly conduct audits. Instead, we supported the development and implementation of independent third party audits of smelters such as the Conflict-Free Smelter Program (“CFSP”) by encouraging our contract manufacturers and component suppliers to purchase materials from audited, conflict-free smelters and determined whether the smelters that were used to process these minerals were validated as conflict-free as part of the Conflict-Free Smelter Program.

 

5. Reporting on Supply Chain Due Diligence

In 2014, we publicly filed the Form SD and this Report with the SEC, and a copy of this Report and the Form SD are publicly available at http://ir.quicklogic.com/sec.cfm.

This Report includes information about the RCOI methodology utilized by the Company, the design of our due diligence process in conformance with the OECD Guidelines, the list of known smelters utilized in our supply chain identified in our due diligence process and a description of our products that incorporate conflict minerals necessary to the functionality or production of such products.

Findings and Conclusions

Based on the information that was provided by the Company’s contract manufacturers and otherwise obtained through the due diligence process, the Company believes that, to the extent reasonably determinable by the Company, the facilities that were used to process the Conflict Minerals contained in the Covered Products include the smelters and refiners listed below, including whether such smelters participate in the CFSP.

 

Standard Smelter Name

    Former
Smelter ID		    Current
Smelter ID		    CFSP    Country
Gold            
Aida Chemical Industries Co. Ltd.    1JPN072    CID000019    N    Japan
Allgemeine Gold- und Silberscheideanstalt A.G.    1DEU001    CID000035    CF    Germany
Argor-Heraeus SA    1CHE004    CID000077    CF    Switzerland
Asahi Pretec Corporation    1JPN005    CID000082    CF    Japan
Asaka Riken Co Ltd    1JPN073    CID000090    N    Japan
Caridad    1MEX010    CID000180    N    Mexico
Xstrata Canada Corporation    1CAN064    CID000185    CF    Canada
Chugai Mining    1JPN078    CID000264    N    Japan
Dowa    1JPN015    CID000401    CF    Japan
Heraeus Ltd Hong Kong    1HKG019    CID000707    CF    Hong Kong
Heraeus Precious Metals GmbH & Co. KG    1DEU018    CID000711    CF    Germany
Ishifuku Metal Industry Co., Ltd.    1JPN021    CID000807    CF    Japan
Jiangxi Copper Company Limited    1CHN023    CID000855    N    China
Johnson Matthey Inc    1USA025    CID000920    CF    USA
Johnson Matthey Limited    1CAN024    CID000924    CF    Canada
JX Nippon Mining & Metals Co., Ltd    1JPN028    CID000937    CF    Japan
Kennecott Utah Copper LLC    1USA088    CID000969    CF    USA
Kojima Chemicals Co. Ltd    1JPN074    CID000981    CF    Japan
LS-Nikko Copper Inc.    1KOR032    CID001078    CF    Korea
Materion    1USA033    CID001113    CF    USA
Matsuda Sangyo Co. Ltd    1JPN034    CID001119    CF    Japan
Metalor Technologies (Hong Kong) Ltd    1HKG036    CID001149    CF    Hong Kong
Metalor Technologies SA    1CHE035    CID001153    CF    Switzerland
Mitsubishi Materials Corporation    1JPN039    CID001188    CF    Japan
Mitsui Mining and Smelting Co., Ltd.    1JPN040    CID001193    CF    Japan

Navoi Mining and Metallurgical Combinat    1UZB042    CID001236    N    Uzbekistan
Nihon Material Co. LTD    1JPN071    CID001259    CF    Japan
PAMP SA    1CHE045    CID001352    CF    Switzerland
Royal Canadian Mint    1CAN050    CID001534    CF    Canada
SEMPSA Joyeria Plateria SA    1ESP052    CID001585    CF    Spain
Shandong Zhaojin Gold & Silver Refinery Co. Ltd    1CHN054    CID001622    N    China
Solar Applied Materials Technology Corp.    1TWN056    CID001761    CF    Taiwan
Sumitomo Metal Mining Co. Ltd.    1JPN057    CID001798    CF    Japan
Tanaka Kikinzoku Kogyo K.K.    1JPN058    CID001875    CF    Japan
The Refinery of Shandong Gold Mining Co. Ltd    1CHN053    CID001916    N    China
Tokuriki Honten Co. Ltd    1JPN060    CID001938    CF    Japan
Umicore SA Business Unit Precious Metals Refining    1BEL062    CID001980    CF    Belgium
United Precious Metal Refining, Inc.    1USA076    CID001993    CF    USA
Valcambi SA    1CHE063    CID002003    CF    Switzerland
Western Australian Mint trading as The Perth Mint    1AUS046    CID002030    N    Australia
Yamamoto Precious Metal Co., Ltd       CID002100    N    Japan
Yokohama Metal Co Ltd    1JPN077    CID002129    N    Japan
Pan Pacific Copper Co. LTD    1JPN080       N    Japan
Tantalum            
Exotech Inc.    3USA002    CID000456    CF    USA
F&X    3CHN003    CID000460    CF    China
Global Advanced Metals    3USA005    CID000564    CF    USA
H.C. Starck GmbH    3DEU006    CID000654    CF    Germany
Ningxia Orient Tantalum Industry Co., Ltd.    3CHN009    CID001277    CF    China
Solikamsk Metal Works    3RUS012    CID001769    CF    Russian
Federation
Taki Chemicals    3JPN023    CID001869    CF    Japan
Ulba    3KAZ014    CID001969    CF    Kazakhstan
Tin            
CNMC (Guangxi) PGMA Co. Ltd.    2CHN050    CID000278    N    China
Cookson    2USA001    CID000292    CF    USA
Cooper Santa    2BRA063    CID000295    AU    Brazil
CV Serumpun Sebalai    2IDN008    CID000313    N    Indonesia
CV United Smelting    2IDN009    CID000315    AU    Indonesia
EM Vinto    2BOL010    CID000438    AU    Bolivia
Fenix Metals    2POL064    CID000468    AU    Poland
Geiju Non-Ferrous Metal Processing Co. Ltd.    2CHN012    CID000538    CF    China
Gejiu Zi-Li    2CHN011    CID000555    N    China
Huichang Jinshunda Tin Co. Ltd    2CHN052    CID000760    N    China
Linwu Xianggui Smelter Co    2CHN055    CID001063    N    China
Liuzhou China Tin    2CHN015    CID001070    AU    China

Malaysia Smelting Corporation (MSC)    2MYS016    CID001105    CF    Malaysia
Metallo Chimique    2BEL017    CID001143    N    Belgium
Mineração Taboca S.A.    2BRA018    CID001173    CF    Brazil
Minmetals Ganzhou Tin Co. Ltd.    2CHN051    CID001179    N    China
Minsur    2PER019    CID001182    CF    Peru
Mitsubishi Materials Corporation    2JPN020    CID001191    CF    Japan
Novosibirsk Integrated Tin Works    2RUS021    CID001305    N    Russian
Federation
OMSA    2BOL022    CID001337    CF    Bolivia
PT Babel Inti Perkasa    2IDN025    CID001402    N    Indonesia
PT Bangka Putra Karya    2IDN028    CID001412    AU    Indonesia
PT Bangka Tin Industry    2IDN058    CID001419    AU    Indonesia
PT Belitung Industri Sejahtera    2IDN030    CID001421    N    Indonesia
PT Bukit Timah    2IDN032    CID001428    CF    Indonesia
PT DS Jaya Abadi    2IDN059    CID001434    N    Indonesia
PT Mitra Stania Prima    2IDN037    CID001453    N    Indonesia
PT Refined Banka Tin    2IDN038    CID001460    AU    Indonesia
PT Stanindo Inti Perkasa    2IDN040    CID001468    AU    Indonesia
PT Tambang Timah    2IDN049    CID001477    CF    Indonesia
PT Timah    2IDN042    CID001482    CF    Indonesia
PT Tinindo Inter Nusa    2IDN044    CID001490    AU    Indonesia
Thaisarco    2THA046    CID001898    CF    Thailand
White Solder Metalurgia    2BRA054    CID002036    CF    Brazil
Yunnan Chengfeng    2CHN047    CID002158    AU    China
Yunnan Tin Company Limited    2CHN048    CID002180    CF    China
Metahub Industries Sdn. Bhd.          N    Malaysia
PT Bangka Kudai Tin    2IDN027       N    Indonesia
PT Bangka Timah Utama Sejahtera    2IDN029       N    Indonesia
PT BilliTin Makmur Lestari    2IDN031       N    Indonesia
PT Koba Tin    2IDN036       N    Indonesia
PT Timah Nusantara    2IDN043       N    Indonesia
Tungsten            
A.L.M.T. Corp.    4JPN020    CID000004    AU    Japan
ATI Tungsten Materials    4USA001    CID000105    N    USA
Chongyi Zhangyuan Tungsten Co Ltd    4CHN004    CID000258    N    China
Global Tungsten & Powders Corp    4USA007    CID000568    CF    USA
HC Starck GmbH    4DEU008    CID000683    AU    Germany
Hunan Chun-Chang Nonferrous Smelting & Concentrating Co., Ltd.    4CHN023    CID000769    AU    China
Jiangxi Rare Earth & Rare Metals Tungsten Group Corp    4CHN009    CID000868    N    China
Jiangxi Tungsten Industry Group Co Ltd    4CHN010    CID000875    AU    China
Wolfram Bergbau und Hütten AG    4AUT012    CID002044    AU    Austria
Wolfram Company CJSC    4RUS013    CID002047    AU    Russian
Federation
Xiamen Tungsten Co Ltd    4CHN014    CID002082    AU    China

Zhuzhou Cemented Carbide Group Co Ltd    4CHN015    CID002236    N    China
Xiamen Tungsten Co Ltd    4CHN028    CID002320    AU    China
China Minmetals Nonferrous Metals Co Ltd    4CHN003       N    China
Ganzhou Grand Sea W & Mo Group Co Ltd    4CHN016       N    China
ALMT    4CHN020       N    China

“CF” indicates that as of May 22, 2014, the smelter participates in the CFSP and has been certified and audited by the CFSI.

“AU” indicates that the smelter has agreed to participate in the CFSP, but that as of May 22, 2014, the audit process has not yet been completed.

“N” indicates that as of May 22, 2014, the smelter is not listed by the CFSP as having agreed to participate in the CFSP.

DRC Conflict Undeterminable

After exercising the due diligence described above, the Company was unable to determine whether or not each of the Covered Products qualify as “DRC conflict free,” as defined under the Rule. Accordingly, the Company has reasonably determined that each of the Covered Products is “DRC conflict undeterminable,” as defined in the Rule.

Future Steps

We have communicated our expectations, as reflected in our Conflict Minerals Policy, to our contract manufacturers and other suppliers. Since the end of 2013, we have continued to engage with our first-tier suppliers to update their information on the source and chain of custody of conflict minerals in our supply chain and to require that all smelters utilized agree to participate in the CFSP.