EX-1.01 2 dp89711_ex0101.htm EXHIBIT 1.01

Exhibit 1.01

 

Advanced Semiconductor Engineering, Inc. 

Conflict Minerals Report

For the year ended December 31, 2017

 

Corporate Overview

 

Advanced Semiconductor Engineering, Inc. (“ASE”, “we”, “our”, “us”) is among the world’s leading companies in semiconductor packaging and testing sector. Our services include semiconductor packaging, production of interconnect materials, front-end engineering testing, wafer probing and final testing services, as well as integrated solutions for electronic manufacturing services in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications. We utilize gold, tantalum, tin and tungsten which are necessary to deliver our packaging, materials and electronic manufacturing services.

 

We have manufacturing facilities located in Taiwan, China, Malaysia, Japan, Singapore, Korea and the United States that provide packaging, testing and materials services to many semiconductor companies around the world. A typical customer engagement involves receiving consigned silicon wafers from the customer, performing a series of manufacturing services to the wafers, and delivering a completed, packaged integrated circuit back to the customer.

 

Since our acquisition of a controlling interest in Universal Scientific Industrial Co., Ltd. (“USI”) in February 2010, we provide a broad range of electronic manufacturing services to a global customer base. We have manufacturing facilities located in Taiwan, China and Mexico that provide electronic manufacturing services. In providing these services, we acquire numerous electronic and non-electronic components, and assemble them into sub-assemblies and finished products.

 

Product Scope

 

We determine gold, tin, tungsten or tantalum (“3TG” or “conflict minerals”) are “necessary to the functionality or production” of a product manufactured or contracted to be manufactured by ASE.

 

(1)For our packaging and materials services, we typically add gold and tin as direct materials in the manufacturing process, and we occasionally add tungsten and tantalum. We do not use gold, tin, tungsten or tantalum in our testing services.

(2)For our electronic manufacturing services, typical materials and components which we utilize include solder (tin based), electrolytic capacitors (tantalum bearing), integrated circuits (gold wire) and high temperature wires (tungsten). Gold, tin, tungsten and tantalum are essential to our electronic manufacturing services.

 

1 

 

All packaging and materials services and electronic manufacturing services we provide contain one or more of the conflict minerals: gold, tin, tungsten or tantalum.

 

Reasonable Country of Origin Inquiry (RCOI)

 

We conducted a reasonable country of origin inquiry (“RCOI”) to determine whether 3TG have originated in the Democratic Republic of the Congo (“DRC”) or its adjoining countries (the “Covered Countries”), or are from recycled or scrap sources.

 

Our RCOI included to:

 

(1)Identify our suppliers who provided us with materials containing 3TG and then use the Conflict Minerals Reporting Template (“CMRT”) developed by the Responsible Minerals Initiative (“RMI”) to facilitate transparency of the supply chain regarding 3TG sourced from the smelters and refiners.

We identified 477 suppliers in the reporting period and used the CMRTs to identify the Smelters or Refiners (“SoRs”) of 3TG and their origin countries.

(i)For our packaging and materials services, a total of 113 suppliers provided us with materials containing 3TG.

(ii)For our electronic manufacturing services, we selected 364 suppliers from a total of 1,610 suppliers who provided us with materials containing metals by the following assessment criteria: (1) the suppliers with purchase amounts greater than US$0.85 million in 2017, which in aggregate accounted for more than 95% of our total purchase amount, and (2) the suppliers whose conflict minerals are used in the services we provide to our top three customers.

(2)Confirm with our suppliers that they are in compliance with our conflict minerals policy and their covenant to disclose the source information of the smelters and refiners under the representation letters.

 

Based on our RCOI results, we have reason to believe that the conflict minerals in our products may have originated in the Covered Countries or may not come from recycled or scrap sources. Therefore, we conducted due diligence on the source and chain of custody of the conflict minerals in our products.

 

Below are the results of our RCOI.

 

2 

 

Packaging and Materials Services

 

Gold

 

During 2017, we purchased gold for our packaging and materials services from a total of 53 suppliers. None of these suppliers are SoRs, and all these suppliers purchased gold from SoRs or from third parties. Based on the CMRTs we collected, we identified a total of 86 SoRs from which we indirectly purchased gold in 2017 for our packaging and materials services. All 53 of our gold suppliers for our packaging and materials services responded to our request to identify the SoRs from which they sourced gold during 2017, representing 100% of our total gold expenditure.

 

Based on an inspection of the list available at www.responsiblemineralsinitiative.org/ conducted on December 31, 2017, all 86 SoRs from which we indirectly purchased gold in 2017 for our packaging and materials services are participants in at least one of (i) the Responsible Minerals Assurance Process (“RMAP”) operated by RMI, (ii) the Gold Industry—London Bullion Market Association (“LBMA”), or (iii) the Gold Industry— Responsible Jewellery Council (“RJC”).

 

Tin

 

During 2017, we purchased tin for our packaging and materials services from a total of 64 suppliers. None of these suppliers are SoRs, and all these suppliers purchased tin from SoRs or from other third parties. Based on the CMRTs we collected, we identified a total of 62 SoRs from which we indirectly purchased tin in 2017 for our packaging and materials services. All 64 of our tin suppliers for our packaging and materials services responded to our request to identify the SoRs from which they sourced tin during 2017, representing 100% of our total tin expenditure.

 

Based on an inspection of the list available at www.responsiblemineralsinitiative.org/ conducted on December 31, 2017, all 62 SoRs from which we indirectly purchased tin in 2017 for our packaging and materials services are participants in the RMAP operated by RMI.

 

Tungsten

 

During 2017, we purchased tungsten for our packaging and materials services from a total of six suppliers. None of these suppliers are SoRs, and all these suppliers purchased tungsten from SoRs or from other third parties. Based on the CMRTs we collected, we identified 32 SoRs from which we indirectly purchased tungsten for our packaging and materials services in 2017. All six of our tungsten suppliers for our packaging and materials services responded to our request to identify the SoRs from which they sourced tungsten during 2017, representing 100% of our total tungsten expenditure.

 

Based on an inspection of the list available at www.responsiblemineralsinitiative.org/ conducted on December 31, 2017, all 32 SoRs from which we indirectly purchased tungsten for our packaging and materials services in 2017 are participants in the RMAP operated by RMI or participants in the Tungsten Industry—Conflict Minerals Council (“TI-CMC”).

 

3 

 

Tantalum

 

During 2017, we purchased tantalum for our packaging and materials services from two suppliers. None of these suppliers are SoRs, and all these suppliers purchased tantalum from SoRs or from other third parties. Based on the CMRTs we collected, we identified a total of 32 SoRs from which we indirectly purchased tantalum in 2017 for our packaging and materials services. All two of our tantalum suppliers for our packaging and materials services responded to our request to identify the SoRs from which they sourced tantalum during 2017, representing 100% of our total tantalum expenditure.

 

Based on an inspection of the list available at www.responsiblemineralsinitiative.org/ conducted on December 31, 2017, all 32 of the SoRs from which we indirectly purchased tantalum in 2017 for our packaging and materials services are participants in the RMAP operated by RMI.

 

4 

 

Electronic Manufacturing Services

 

During the reporting period, we selected 364 suppliers from a total of 1,610 suppliers for our electronic manufacturing services for the purpose of identifying SoRs. The 364 suppliers were selected based on the assessment criteria mentioned in the section entitled “Reasonable Country of Origin Inquiry (RCOI)”.

 

Gold

 

Among the 364 selected suppliers, we purchased gold for our electronic manufacturing services from 247 suppliers in 2017. None of these suppliers are SoRs, and all these suppliers purchased gold from SoRs or from other third parties. Based on the CMRTs we collected, we identified 100 SoRs from which we indirectly purchased gold for our electronic manufacturing services. All 247 gold suppliers responded to our request to identify the SoRs from which they sourced gold during 2017.

 

Based on an inspection of the list available at www.responsiblemineralsinitiative.org/ conducted on December 31, 2017, all 100 SoRs from which we indirectly purchased gold for our electronic manufacturing services in 2017 are participants in at least one of (i) the RMAP operated by RMI, (ii) the LBMA, or (iii) the RJC.

 

Tin

 

Among the 364 selected suppliers, we purchased tin for our electronic manufacturing services from 291 suppliers in 2017. None of these suppliers are SoRs, and all these suppliers purchased tin from SoRs or from other third parties. Based on the CMRTs we collected, we identified 73 SoRs from which we indirectly purchased tin for our electronic manufacturing services. All 291 tin suppliers responded to our request to identify the SoRs from which they sourced tin during 2017.

 

Based on an inspection of the list available at www.responsiblemineralsinitiative.org/ conducted on December 31, 2017, all 73 SoRs from which we indirectly purchased tin for our electronic manufacturing services in 2017 are participants in the RMAP operated by RMI.

 

Tungsten

 

Among the 364 selected suppliers, we purchased tungsten for our electronic manufacturing services from 138 suppliers in 2017. None of these suppliers are SoRs, and all these suppliers purchased tungsten from SoRs or from other third parties. Based on the CMRTs we collected, we identified 41 SoRs from which we indirectly purchased tungsten for our electronic manufacturing services. All 138 tungsten suppliers responded to our request to identify the SoRs from which they sourced tungsten during 2017.

 

5 

 

Based on an inspection of the list available at www.responsiblemineralsinitiative.org/ conducted on December 31, 2017, all 41 SoRs from which we indirectly purchased tungsten for our electronic manufacturing services in 2017 are participants in either the RMAP operated by RMI or the TI-CMC program.

 

Tantalum

 

Among the 364 selected suppliers, we purchased tantalum for our electronic manufacturing services from 104 suppliers in 2017. None of these suppliers are SoRs, and all these suppliers purchased tantalum from SoRs or from other third parties. Based on the CMRTs we collected, we identified 42 SoRs from which we indirectly purchased tantalum for our electronic manufacturing services. All 104 tantalum suppliers responded to our request to identify the SoRs from which they sourced tantalum during 2017.

 

Based on an inspection of the list available at www.responsiblemineralsinitiative.org/ conducted on December 31, 2017, all 42 SoRs from which we indirectly purchased tantalum for our electronic manufacturing services in 2017 are participants in the RMAP operated by RMI.

 

6 

 

Part I. Due Diligence

 

Design of Due Diligence

 

ASE designed its due diligence measures to conform to the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Third Edition (the “OECD Guidance”), including the related supplements on tantalum, tin, tungsten and gold.

 

Due Diligence Measures Performed

 

OECD Step 1 Establish strong company management systems
A. Adopt and clearly communicate to suppliers and public

The ASE Group Corporate Policy for Sourcing Conflict Minerals is posted on our website (and attached here as Annex A) to address our commitment to exercise due diligence in accordance with the OECD Guidance.

 

Additionally, we distribute our conflict minerals policy to each of our suppliers of conflict minerals who must agree that the policy will be complied with and required each supplier to certify they understand our conflict minerals policy and will comply with its covenants.

B. Structure internal management to support due diligence

Our conflict minerals management team is a comprehensive cross-functional team under the direction of our Chief Operating Officer (“COO”).

 

The team is responsible for implementing the conflict minerals compliance mechanism, including planning, analysis, tracking, monitoring, and communication and reporting for the business wide initiative.

C. Establish a system of controls and transparency over the mineral supply chain

Conflict minerals procedures are documented in our specifications system and managed by our conflict minerals management team. The bills-of-materials required for different customer products across all manufacturing operations are controlled by our manufacturing execution system software.

 

The primary method for gathering conflict mineral data is through the deployment and gathering of Responsible Minerals Initiative (“RMI”), which is developed by Conflict Minerals Reporting Template (“CMRT”). We store such data and maintain other related records for a minimum of five years in a comprehensive filing system.

 

Aligned with industry practice, we utilize a conflict minerals data tool to manage a large number of suppliers’ CMRTs, auto-validates smelter status with updated RMI smelter list and aggregates smelter reporting for our customers. 

D. Strengthen company engagement with suppliers ASE communicates our conflict minerals policy and requirements to relevant suppliers through supplier’s representation letter. In addition to the formal written documentation, ASE is building person-to-person links between employees and suppliers to improve the quality and consistency of supplier communications.

  

 

7 

 

 We hold an annual supplier seminar to announce new requirements, and provide training to suppliers to enable them to better understand how to improve their conflict minerals monitoring mechanism, including smelter data quality.

 

We amended and added conflict minerals terms to our ASE Group Purchase Order pursuant to which our suppliers agree (i) to use industry standard efforts to ensure 3TG materials covered by the purchase order and sourced from mines in the DRC or the Covered Countries do not directly or indirectly finance illegal militia in the above-mentioned area, (ii) to promptly notify us if any materials covered by the purchase order do contain conflict minerals that are not DRC Conflict Free and to provide a report on the mine and/or smelter of origin of the conflict minerals and the related chain of custody and (iii) to only supply us with materials that contain DRC Conflict Free minerals sourced from certified DRC Conflict Free smelter and refinery programs. 

E. Establish grievance mechanism

ASE encourages suppliers and employees to have open and honest dialog on issues of mutual interest.

 

We provide two email addresses (ASE_CM@aseglobal.com and conflict_minerals@usiglobal.com) for general surveys, inquiries and grievances regarding our conflict minerals program. Our conflict mineral mechanism can also be found on our website http://ase.aseglobal.com/en/csr/supply_chain_development/conflict_minerals_compliance

 and http://www.usish.com/english/minerals.asp).

 

OECD Step 2 Identify and assess risk in the supply chain
A. Identify risks in the supply chain

Our process for identifying conflict minerals risk in the supply chain is as follows:

 

(a)  Identify all our suppliers who provide direct materials and components which may contain conflict minerals being necessary to the functionality or production of our products.

 

(b)  Conduct an annual suppliers’ survey through the CMRTs to identify the SoRs and the origin countries of conflict minerals.

 

(c)  Review each received CMRT based on our internal standard procedure to check the quality such as the suppliers’ conflict minerals policies, suppliers’ data collection from next tier suppliers, and SoRs identification and disclosure.

 

(d)  For our electronic manufacturing services, depending on the complexity of the supply chain, we: 

  

 

8 

 

·Assess the value of the annual purchase volume of all conflict minerals.
   
         ·Prioritize conflict mineral sources by dollar volume to leverage impact from available analytical resources.

B. Assess risks of adverse impacts (a) Assess data gathered on the CMRTs to identify potential inconsistencies or “red flags.”
  (b) Define annual supplier risk criteria.  
  (c) Carry out on-site or document audit for suppliers determined as at-risk suppliers according to the risk criteria.
  (d) Follow up as appropriate to resolve items of concern.

OECD Step 3 Design and implement a strategy to respond to identified risks
A. Report finding to designated senior management Periodic reviews are held and status are reported to our COO and Chief Financial Officer (“CFO”) who are also our Corporate Sustainability Committee members and senior management in order for them to be aware of current conflict minerals compliance status.
B. Devise and adopt a risk management plan

Our risk management plan includes tracking SoRs information to check if they may be from DRC or the Covered Countries, or not from scrap or recycled sources.

 

We compare supplier smelter data to RMI RCOI data to identify actual smelter origins.

 

Additionally, we use a corporate standard conflict minerals audit checklist and implement an on-site or document audit process to validate suppliers’ mechanisms related to important aspects of conflict minerals management.

 

Finally, we continue to work with non-compliant suppliers to obtain RMAP certification, or other independence third party audit program. Suppliers unwilling or incapable of achieving such certification are considered to be replaced by compliant suppliers. 

 

C. Implement the risk management plan, monitor and track performance of risk mitigation efforts and report back to designated senior management

We use CMRTs and the up-to-date RMAP compliant smelter lists to monitor and track our suppliers and their SoRs information. For compliance year 2017, our packaging and materials services received CMRTs from 100% of our conflict minerals suppliers surveyed and electronic manufacturing services received CMRTs from 100% of our conflict mineral suppliers surveyed.

 

We request our suppliers to provide an updated response of their CMRTs if there is any change. We maintain a regular communication channel with our senior management as mentioned-above. 

 

 

 

 

9 

 

D. Undertake additional fact and risk assessments for risks requiring mitigation, or after a change of circumstances

We have begun supplier audits to assess the accuracy of data and statements made by larger suppliers. This program will be broadened over time.

 

As a member of the RBA and RMI, RCOI data is accessible to use and to manage our suppliers’ SoRs information. 

OECD Step 4 Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain
 

For Compliance Year 2017, ASE has undertaken an Independent Private Sector Audit (IPSA) of our Conflict Minerals Report in compliance with the requirements set forth in the SEC Conflict Minerals Final Rule and subsequent SEC Guidance.

 

As a member of RMI, we leverage the due diligence conducted on smelters by the RMAP which uses independent third-party auditors to audit the source of the conflict minerals used by smelters. 

OECD Step 5 Report on supply chain due diligence.
  We report annually on our supply chain due diligence activities including the conflict minerals program in our annual sustainability report and we file a Form SD and Conflict Minerals Report (“CMR”) for Compliance Year 2017 with the US Securities and Exchange Commission on or before the May 31, 2018 deadline in compliance with the SEC Conflict Minerals Final Rule and subsequent guidance. This information is publicly available on our company website at http://ase.aseglobal.com/en/csr/supply_chain_development/conflict_minerals_compliance.

   

 

10 

 

Part II. Due Diligence Determination and Product Declaration

 

Product Declaration 

Our RCOI results did not provide us a sufficient level of confidence to enable us to report that all our products are conflict-free. Pursuant to Rule 13p-1 under the Securities Exchange Act of 1934, we therefore conducted additional due diligence on the source and chain of custody of the necessary conflict minerals in our products in order to obtain reasonable and reliable evidence that the gold, tin, tungsten or tantalum used by us in 2017 either (i) did not directly or indirectly benefit violent organizations in the Democratic Republic of the Congo or adjacent regions or (ii) came from recycled or scrap sources.

 

Based on our RCOI analysis and due diligence measures described in this report, we made the following product determinations.

 

Packaging and Materials Services: 

Bases on the CMRT we received, all identified SoRs used in our packaging and materials services products were certified by RMI or were in the process of receiving RMI certificates in 2017. We reasonably believe that such SoRs are DRC Conflict-Free.

 

Electronic Manufacturing Services: 

Given the large number of suppliers for our electronic manufacturing services, we developed a sampling program to select material suppliers for the purpose of identifying SoRs. We believe that our due diligence performed based on the sampling program is sufficient and appropriate to provide a reasonable basis for our determination. Based on the CMRT we received, all identified SoRs used in our electronic manufacturing services products were certified by RMI or were in the process of receiving RMI certificates in 2017. Therefore, we reasonably believe that such SoRs are DRC Conflict-Free.

 

Glossary

 

A glossary of abbreviations and terms is included in Annex C.

 

Facilities used to Process Conflict Minerals

 

A list of smelters and refiners that sourced conflict minerals utilized in our services is provided in Annex D.

 

Conflict Minerals Country of Origin

 

A list of countries where conflict minerals were mined or extracted is listed in Annex E. These minerals may have been smelted or refined in the country of extraction or in facilities around the world.

 

11 

 

Part III – Future Due Diligence Improvements

 

ŸContinue to improve our conflict minerals process for new suppliers.

 

ŸContinue to work with our suppliers to confirm that they understand and comply with ASE’s conflict minerals policy and requirements.

 

ŸWork with our suppliers to ensure that the smelters and refiners they source conflict minerals from in our supply chain are actively participating or progressing toward RMAP listing or other independence third party audit programs.

 

ŸAssess suppliers’ due diligence processes through on-site audits so as to assist suppliers to build up and improve their internal management systems.

 

ŸEnhance our conflict minerals data tool with advanced management and analysis functionalities.

 

ŸAnnually hold supplier seminars to assist suppliers with their conflict minerals programs.

 

12 

 

Part IV – Independent Private Sector Audit

 

We obtained an independent private sector audit by KPMG. The independent accountant’s report is set forth in Annex B.

 

13 

 

Annex A – ASE Group Corporate Policy for Sourcing Conflict Minerals

 

The mining and distribution of “conflict minerals”1 originating from the Democratic Republic of the Congo (the “DRC”) are sometimes controlled by violent organizations in order to fund conflict in that country and adjacent regions. Our industry supply chains are inadvertently subject to metals derived from these conflict minerals which can be introduced through the metals we use such as gold, tin, tantalum and tungsten. ASE Group is dedicated to the elimination of these conflict minerals in our supply chain and to using only responsibly sourced “conflict-free minerals”2. We expect our suppliers to source conflict-free minerals from smelters or refineries that have been certified by an independent third party audit program to fulfill our objective. It is also our objective to support the continued use of conflict-free minerals from the DRC and its adjacent regions such that responsible mining is not diminished. We exercise due diligence with our suppliers on the origin and supply chain of minerals in accordance with the “OECD Due Diligence for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas” to establish conflict minerals management mechanism.

 

All suppliers to ASE Group must support this policy by:

 

(a)Being diligent in their assessment and validation of their supply chains to ensure ASE Group’s objectives of a transparent supply chain and conflict-free purchases are inputs to the services and products we produce.

(b)Be in compliance at all times with all regional and international regulations for conflict minerals.

(c)Be in compliance at all times with industry standards for the sourcing and reporting of conflict minerals.

(d)Being diligent and accurate in their formal assurances of conflict-free minerals provided to us.

 

_____________________

1 Conflict minerals are columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives as defined in the Dodd-Frank Act section 1502 and SEC Rule 13p-1 under the Securities Exchange Act of 1934.

 

2 Conflict-free minerals are conflict minerals that through their distribution directly or indirectly do not benefit violent organizations in the Democratic Republic of the Congo and its adjacent regions.

14 

 

Annex B –Independent Accountants’ Report

 

Independent Accountants’ Report

 

To the Board of Directors and Shareholders of Advanced Semiconductor Engineering Inc.:

 

We have examined:

 

Ÿwhether the design of Advanced Semiconductor Engineering Inc. (the “Company”) due diligence framework as set forth in the section titled “Part I. Due Diligence” of the Company’s Conflict Minerals Report for the reporting period from January 1 to December 31, 2017 (the “Conflict Minerals Report”), is in conformity, in all material respects, with the criteria set forth in the Organisation of Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition 2016 (“OECD Due Diligence Guidance”), and

 

Ÿwhether the Company’s description of the due diligence measures it performed, as set forth in the section titled “Part I. Due Diligence” of the Company’s Conflict Minerals Report, is consistent, in all material respects, with the due diligence process that the Company undertook.

 

The management of the Company is responsible for the design of the Company’s due diligence framework and the description of the Company’s due diligence measures set forth in the Conflict Minerals Report and the performance of the due diligence measures. Our responsibility is to express an opinion on the design of the Company’s due diligence framework and on the description of the due diligence measures the Company performed, based on our examination.

 

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the design of the Company’s due diligence framework is in conformity with the OECD Due Diligence Guidance and whether the description of the due diligence measures the Company performed is consistent with the due diligence process that the Company undertook in all material respects. An examination involves performing procedures to obtain evidence about the design of the Company’s due diligence framework and the description of the due diligence measures the Company performed. The nature, timing and extent of the procedures selected depend on our professional judgment, including an assessment of the risks of material misstatement of the design of the Company’s due diligence framework and the description of the due diligence measures the Company performed. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

 

Our examination was not conducted for the purpose of evaluating:

 

Ÿthe consistency of the due diligence measures that the Company performed with either the design of the Company’s due diligence framework or the OECD Due Diligence Guidance;

 

Ÿthe completeness of the Company’s description of the due diligence measures performed;

 

Ÿthe suitability of the design or operating effectiveness of the Company’s due diligence process;

 

Ÿwhether a third party can determine from the Conflict Minerals Report if the due diligence measures the Company performed are consistent with the OECD Due Diligence Guidance;

 

15 

 

 

Ÿthe Company’s reasonable country of origin inquiry (RCOI), including the suitability of the design of the RCOI, its operating effectiveness, or the results thereof; or

 

Ÿthe Company’s conclusions about the source or chain of custody of its conflict minerals, those products subject to due diligence, or the DRC Conflict Free status of its products.

 

Accordingly, we do not express an opinion or any other form of assurance on the aforementioned matters or any other matters included in any section of the Conflict Minerals Report other than the section titled “Part I. Due Diligence.”

 

In our opinion,

 

Ÿthe design of the Company’s due diligence framework for the reporting period from January 1 to December 31, 2017 as set forth in the Company’s Conflict Minerals Report is in conformity with the OECD Due Diligence Guidance in all material respects; and

 

Ÿthe Company’s description of the due diligence measures it performed for the reporting period from January 1 to December 31, 2017 as set forth in its Conflict Minerals Report is consistent with the due diligence process that the Company undertook in all material respects.

 

/s/ KPMG

 

Taipei, Taiwan (the Republic of China)

 

April 27, 2018

 

  

 

16 

 

Annex C – Glossary

 

Term Explanation
ASE Advanced Semiconductor Engineering, Inc.
USI Universal Scientific Industrial Co., Ltd.
RMI Responsible Minerals Initiative
RMAP Responsible Minerals Assurance Process
CMRT Conflict Minerals Reporting Template
DRC Conflict Free DRC Conflict-free minerals are conflict minerals that, through their mining or distribution, directly or indirectly, do not benefit violent organizations in the Democratic Republic of the Congo and its adjacent regions
RBA Responsible Business Alliance
GeSI Global e-Sustainability Initiative
OECD Organisation for Economic Co-operation and Development
LBMA London Bullion Market Association
RCOI Reasonable Country of Origin Inquiry
RJC Responsible Jewellery Council
SoRs Smelter or Refiner
TI-CMC Tungsten Industry—Conflict Minerals Council

   

 

17 

 

Annex D – Smelter List

 

Metal Smelter Identification Number Smelter or Refiner Name Smelter Country
Gold CID000015 Advanced Chemical Company UNITED STATES OF AMERICA
Gold CID000019 Aida Chemical Industries Co., Ltd. JAPAN
Gold CID000035 Allgemeine Gold-und Silberscheideanstalt A.G. GERMANY
Gold CID000041 Almalyk Mining and Metallurgical Complex (AMMC) UZBEKISTAN
Gold CID000058 AngloGold Ashanti Corrego do Sitio Mineracao BRAZIL
Gold CID000077 Argor-Heraeus S.A. SWITZERLAND
Gold CID000082 Asahi Pretec Corp. JAPAN
Gold CID000090 Asaka Riken Co., Ltd. JAPAN
Gold CID000113 Aurubis AG GERMANY
Gold CID000128 Bangko Sentral ng Pilipinas (Central Bank of the Philippines) PHILIPPINES
Gold CID000157 Boliden AB SWEDEN
Gold CID000176 C. Hafner GmbH + Co. KG GERMANY
Gold CID000185 CCR Refinery - Glencore Canada Corporation CANADA
Gold CID000233 Chimet S.p.A. ITALY
Gold CID000328 Daejin Indus Co., Ltd. KOREA, REPUBLIC OF
Gold CID000359 DSC (Do Sung Corporation) KOREA, REPUBLIC OF
Gold CID000362 DODUCO GmbH GERMANY
Gold CID000401 Dowa JAPAN
Gold CID000425 Eco-System Recycling Co., Ltd. JAPAN
Gold CID000493 OJSC Novosibirsk Refinery RUSSIAN FEDERATION
Gold CID000689 HeeSung Metal Ltd. KOREA, REPUBLIC OF
Gold CID000694 Heimerle + Meule GmbH GERMANY
Gold CID000707 Heraeus Metals Hong Kong Ltd. CHINA
Gold CID000711 Heraeus Precious Metals GmbH & Co. KG GERMANY
Gold CID000801 Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd. CHINA
Gold CID000807 Ishifuku Metal Industry Co., Ltd. JAPAN
Gold CID000814 Istanbul Gold Refinery TURKEY
Gold CID000823 Japan Mint JAPAN
Gold CID000855 Jiangxi Copper Co., Ltd. CHINA
Gold CID000920 Asahi Refining USA Inc. UNITED STATES OF AMERICA
Gold CID000924 Asahi Refining Canada Ltd. CANADA
Gold CID000927 JSC Ekaterinburg Non-Ferrous Metal Processing Plant RUSSIAN FEDERATION
Gold CID000929 JSC Uralelectromed RUSSIAN FEDERATION
Gold CID000937 JX Nippon Mining & Metals Co., Ltd. JAPAN

  

 

18 

 

Gold CID000957 Kazzinc KAZAKHSTAN
Gold CID000969 Kennecott Utah Copper LLC UNITED STATES OF AMERICA
Gold CID000981 Kojima Chemicals Co., Ltd. JAPAN
Gold CID001029 Kyrgyzaltyn JSC KYRGYZSTAN
Gold CID001078 LS-NIKKO Copper Inc. KOREA, REPUBLIC OF
Gold CID001113 Materion UNITED STATES OF AMERICA
Gold CID001119 Matsuda Sangyo Co., Ltd. JAPAN
Gold CID001147 Metalor Technologies (Suzhou) Ltd. CHINA
Gold CID001149 Metalor Technologies (Hong Kong) Ltd. CHINA
Gold CID001152 Metalor Technologies (Singapore) Pte., Ltd. SINGAPORE
Gold CID001153 Metalor Technologies S.A. SWITZERLAND
Gold CID001157 Metalor USA Refining Corporation UNITED STATES OF AMERICA
Gold CID001161 Metalurgica Met-Mex Penoles S.A. De C.V. MEXICO
Gold CID001188 Mitsubishi Materials Corporation JAPAN
Gold CID001193 Mitsui Mining and Smelting Co., Ltd. JAPAN
Gold CID001204 Moscow Special Alloys Processing Plant RUSSIAN FEDERATION
Gold CID001220 Nadir Metal Rafineri San. Ve Tic. A.S. TURKEY
Gold CID001259 Nihon Material Co., Ltd. JAPAN
Gold CID001325 Ohura Precious Metal Industry Co., Ltd. JAPAN
Gold CID001326 OJSC "The Gulidov Krasnoyarsk Non-Ferrous Metals Plant" (OJSC Krastsvetmet) RUSSIAN FEDERATION
Gold CID001352 PAMP S.A. SWITZERLAND
Gold CID001386 Prioksky Plant of Non-Ferrous Metals RUSSIAN FEDERATION
Gold CID001397 PT Aneka Tambang (Persero) Tbk INDONESIA
Gold CID001498 PX Precinox S.A. SWITZERLAND
Gold CID001512 Rand Refinery (Pty) Ltd. SOUTH AFRICA
Gold CID001534 Royal Canadian Mint CANADA
Gold CID001555 Samduck Precious Metals KOREA, REPUBLIC OF
Gold CID001573 Schone Edelmetaal B.V. NETHERLANDS
Gold CID001585 SEMPSA Joyeria Plateria S.A. SPAIN
Gold CID001622 Shandong Zhaojin Gold & Silver Refinery Co., Ltd. CHINA
Gold CID001736 Sichuan Tianze Precious Metals Co., Ltd. CHINA
Gold CID001756 SOE Shyolkovsky Factory of Secondary Precious Metals RUSSIAN FEDERATION
Gold CID001761 Solar Applied Materials Technology Corp. TAIWAN, PROVINCE OF CHINA
Gold CID001798 Sumitomo Metal Mining Co., Ltd. JAPAN
Gold CID001875 Tanaka Kikinzoku Kogyo K.K. JAPAN
Gold CID001916 The Refinery of Shandong Gold Mining Co., Ltd. CHINA
Gold CID001938 Tokuriki Honten Co., Ltd. JAPAN
Gold CID001955 Torecom KOREA, REPUBLIC OF

  

 

19 

 

Gold CID001977 Umicore Brasil Ltda. BRAZIL
Gold CID001980 Umicore S.A. Business Unit Precious Metals Refining BELGIUM
Gold CID001993 United Precious Metal Refining, Inc. UNITED STATES OF AMERICA
Gold CID002003 Valcambi S.A. SWITZERLAND
Gold CID002030 Western Australian Mint (T/a The Perth Mint) AUSTRALIA
Gold CID002100 Yamamoto Precious Metal Co., Ltd. JAPAN
Gold CID002129 Yokohama Metal Co., Ltd. JAPAN
Gold CID002224 Zhongyuan Gold Smelter of Zhongjin Gold Corporation CHINA
Gold CID002243 Gold Refinery of Zijin Mining Group Co., Ltd. CHINA
Gold CID002290 SAFINA A.S. CZECH REPUBLIC
Gold CID002314 Umicore Precious Metals Thailand THAILAND
Gold CID002459 Geib Refining Corporation UNITED STATES OF AMERICA
Gold CID002509 MMTC-PAMP India Pvt., Ltd. INDIA
Gold CID002510 Republic Metals Corporation UNITED STATES OF AMERICA
Gold CID002511 KGHM Polska Miedz Spolka Akcyjna POLAND
Gold CID002516 Singway Technology Co., Ltd. TAIWAN, PROVINCE OF CHINA
Gold CID002560 Al Etihad Gold LLC UNITED ARAB EMIRATES
Gold CID002561 Emirates Gold DMCC UNITED ARAB EMIRATES
Gold CID002580 T.C.A S.p.A ITALY
Gold CID002582 Remondis Argentia B.V. NETHERLANDS
Gold CID002605 Korea Zinc Co., Ltd. KOREA, REPUBLIC OF
Gold CID002761 SAAMP FRANCE
Gold CID002777 SAXONIA Edelmetalle GmbH GERMANY
Gold CID002778 WIELAND Edelmetalle GmbH GERMANY
Gold CID002779 Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH AUSTRIA
Gold CID002850 AU Traders and Refiners SOUTH AFRICA
Gold CID002857 Modeltech Sdn Bhd MALAYSIA
Gold CID002918 SungEel HiTech KOREA, REPUBLIC OF
Tantalum CID000092 Asaka Riken Co., Ltd. JAPAN
Tantalum CID000211 Changsha South Tantalum Niobium Co., Ltd. CHINA
Tantalum CID000291 Conghua Tantalum and Niobium Smeltry CHINA
Tantalum CID000456 Exotech Inc. UNITED STATES OF AMERICA
Tantalum CID000460 F&X Electro-Materials Ltd. CHINA
Tantalum CID000616 Guangdong Zhiyuan New Material Co., Ltd. CHINA
Tantalum CID000914 JiuJiang JinXin Nonferrous Metals Co., Ltd. CHINA
Tantalum CID000917 Jiujiang Nonferrous Metals Smelting Company Limited CHINA
Tantalum CID000973 King-Tan Tantalum Industry Ltd. CHINA
Tantalum CID001076 LSM Brasil S.A. BRAZIL

  

 

20 

 

Tantalum CID001163 Metallurgical Products India Pvt., Ltd. INDIA
Tantalum CID001175 Mineracao Taboca S.A. BRAZIL
Tantalum CID001192 Mitsui Mining and Smelting Co., Ltd. JAPAN
Tantalum CID001200 NPM Silmet AS ESTONIA
Tantalum CID001277 Ningxia Orient Tantalum Industry Co., Ltd. CHINA
Tantalum CID001508 QuantumClean UNITED STATES OF AMERICA
Tantalum CID001522 RFH Tantalum Smeltry Co., Ltd. CHINA
Tantalum CID001769 Solikamsk Magnesium Works OAO RUSSIAN FEDERATION
Tantalum CID001869 Taki Chemical Co., Ltd. JAPAN
Tantalum CID001891 Telex Metals UNITED STATES OF AMERICA
Tantalum CID001969 Ulba Metallurgical Plant JSC KAZAKHSTAN
Tantalum CID002232* Zhuzhou Cemented Carbide Group Co., Ltd. CHINA
Tantalum CID002307 Yichun Jin Yang Rare Metal Co., Ltd. CHINA
Tantalum CID002492 Hengyang King Xing Lifeng New Materials Co., Ltd. CHINA
Tantalum CID002504 D Block Metals, LLC UNITED STATES OF AMERICA
Tantalum CID002505 FIR Metals & Resource Ltd. CHINA
Tantalum CID002506 Jiujiang Zhongao Tantalum & Niobium Co., Ltd. CHINA
Tantalum CID002508 XinXing HaoRong Electronic Material Co., Ltd. CHINA
Tantalum CID002512 Jiangxi Dinghai Tantalum & Niobium Co., Ltd. CHINA
Tantalum CID002539 KEMET Blue Metals MEXICO
Tantalum CID002544 H.C. Starck Co., Ltd. THAILAND
Tantalum CID002545 H.C. Starck Tantalum and Niobium GmbH GERMANY
Tantalum CID002547 H.C. Starck Hermsdorf GmbH GERMANY
Tantalum CID002548 H.C. Starck Inc. UNITED STATES OF AMERICA
Tantalum CID002549 H.C. Starck Ltd. JAPAN
Tantalum CID002550 H.C. Starck Smelting GmbH & Co. KG GERMANY
Tantalum CID002557 Global Advanced Metals Boyertown UNITED STATES OF AMERICA
Tantalum CID002558 Global Advanced Metals Aizu JAPAN
Tantalum CID002568 KEMET Blue Powder UNITED STATES OF AMERICA
Tantalum CID002707 Resind Industria e Comercio Ltda. BRAZIL
Tantalum CID002842 Jiangxi Tuohong New Raw Material CHINA
Tantalum CID002847 Power Resources Ltd. MACEDONIA, THE FORMER YUGOSLAV REPUBLIC OF
Tin CID000228 Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. CHINA
Tin CID000244 Jiangxi Ketai Advanced Material Co., Ltd. CHINA
Tin CID000292 Alpha UNITED STATES OF AMERICA
Tin CID000306 CV Gita Pesona INDONESIA
Tin CID000309 PT Aries Kencana Sejahtera INDONESIA
Tin CID000313 CV Serumpun Sebalai INDONESIA

  

 

21 

 

Tin CID000315 CV United Smelting INDONESIA
Tin CID000402 Dowa JAPAN
Tin CID000438 EM Vinto BOLIVIA (PLURINATIONAL STATE OF)
Tin CID000468 Fenix Metals POLAND
Tin CID000538 Gejiu Non-Ferrous Metal Processing Co., Ltd. CHINA
Tin CID000760 Huichang Jinshunda Tin Co., Ltd. CHINA
Tin CID000942 Gejiu Kai Meng Industry and Trade LLC CHINA
Tin CID001070 China Tin Group Co., Ltd. CHINA
Tin CID001105 Malaysia Smelting Corporation (MSC) MALAYSIA
Tin CID001142 Metallic Resources, Inc. UNITED STATES OF AMERICA
Tin CID001173 Mineracao Taboca S.A. BRAZIL
Tin CID001182 Minsur PERU
Tin CID001191 Mitsubishi Materials Corporation JAPAN
Tin CID001231 Nankang Nanshan Tin Manufactory Co., Ltd. CHINA
Tin CID001314 O.M. Manufacturing (Thailand) Co., Ltd. THAILAND
Tin CID001337 Operaciones Metalurgical S.A. BOLIVIA (PLURINATIONAL STATE OF)
Tin CID001399 PT Artha Cipta Langgeng INDONESIA
Tin CID001402 PT Babel Inti Perkasa INDONESIA
Tin CID001419 PT Bangka Tin Industry INDONESIA
Tin CID001421 PT Belitung Industri Sejahtera INDONESIA
Tin CID001428 PT Bukit Timah INDONESIA
Tin CID001434 PT DS Jaya Abadi INDONESIA
Tin CID001438 PT Eunindo Usaha Mandiri INDONESIA
Tin CID001448 PT Karimun Mining INDONESIA
Tin CID001453 PT Mitra Stania Prima INDONESIA
Tin CID001457 PT Panca Mega Persada INDONESIA
Tin CID001458 PT Prima Timah Utama INDONESIA
Tin CID001460 PT Refined Bangka Tin INDONESIA
Tin CID001463 PT Sariwiguna Binasentosa INDONESIA
Tin CID001468 PT Stanindo Inti Perkasa INDONESIA
Tin CID001471 PT Sumber Jaya Indah INDONESIA
Tin CID001477 PT Timah (Persero) Tbk Kundur INDONESIA
Tin CID001482 PT Timah (Persero) Tbk Mentok INDONESIA
Tin CID001490 PT Tinindo Inter Nusa INDONESIA
Tin CID001493 PT Tommy Utama INDONESIA
Tin CID001539 Rui Da Hung TAIWAN, PROVINCE OF CHINA
Tin CID001758 Soft Metais Ltda. BRAZIL
Tin CID001898 Thaisarco THAILAND
Tin CID001908 Gejiu Yunxin Nonferrous Electrolysis Co., Ltd. CHINA
Tin CID002015* VQB Mineral and Trading Group JSC VIET NAM

  

 

22 

 

Tin CID002036 White Solder Metalurgia e Mineracao Ltda. BRAZIL
Tin CID002158 Yunnan Chengfeng Non-ferrous Metals Co., Ltd. CHINA
Tin CID002180 Yunnan Tin Company Limited CHINA
Tin CID002455 CV Venus Inti Perkasa INDONESIA
Tin CID002468 Magnu's Minerais Metais e Ligas Ltda. BRAZIL
Tin CID002500 Melt Metais e Ligas S.A. BRAZIL
Tin CID002503 PT ATD Makmur Mandiri Jaya INDONESIA
Tin CID002517 O.M. Manufacturing Philippines, Inc. PHILIPPINES
Tin CID002530 PT Inti Stania Prima INDONESIA
Tin CID002570 CV Ayi Jaya INDONESIA
Tin CID002572 Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company VIET NAM
Tin CID002592 CV Dua Sekawan INDONESIA
Tin CID002593 CV Tiga Sekawan INDONESIA
Tin CID002706 Resind Industria e Comercio Ltda. BRAZIL
Tin CID002757 PT O.M. Indonesia INDONESIA
Tin CID002773 Metallo-Chimique N.V. BELGIUM
Tin CID002774 Elmet S.L.U. SPAIN
Tin CID002776 PT Bangka Prima Tin INDONESIA
Tin CID002816 PT Sukses Inti Makmur INDONESIA
Tin CID002829 PT Kijang Jaya Mandiri INDONESIA
Tin CID002835 PT Menara Cipta Mulia INDONESIA
Tin CID002848 Gejiu Fengming Metallurgy Chemical Plant CHINA
Tin CID002849 Guanyang Guida Nonferrous Metal Smelting Plant CHINA
Tin CID002858 Modeltech Sdn Bhd MALAYSIA
Tin CID002859 Gejiu Jinye Mineral Company CHINA
Tin CID002870 PT Lautan Harmonis Sejahtera INDONESIA
Tin CID003116 Guangdong Hanhe Non-Ferrous Metal Co., Ltd. CHINA
Tungsten CID000004 A.L.M.T. TUNGSTEN Corp. JAPAN
Tungsten CID000105 Kennametal Huntsville UNITED STATES OF AMERICA
Tungsten CID000218 Guangdong Xianglu Tungsten Co., Ltd. CHINA
Tungsten CID000258 Chongyi Zhangyuan Tungsten Co., Ltd. CHINA
Tungsten CID000499 Fujian Jinxin Tungsten Co., Ltd. CHINA
Tungsten CID000568 Global Tungsten & Powders Corp. UNITED STATES OF AMERICA
Tungsten CID000766 Hunan Chenzhou Mining Co., Ltd. CHINA
Tungsten CID000769 Hunan Chunchang Nonferrous Metals Co., Ltd. CHINA
Tungsten CID000825 Japan New Metals Co., Ltd. JAPAN
Tungsten CID000875 Ganzhou Huaxing Tungsten Products Co., Ltd. CHINA

  

 

23 

 

Tungsten CID000966 Kennametal Fallon UNITED STATES OF AMERICA
Tungsten CID001889 Tejing (Vietnam) Tungsten Co., Ltd. VIET NAM
Tungsten CID002011 Vietnam Youngsun Tungsten Industry Co., Ltd. VIET NAM
Tungsten CID002044 Wolfram Bergbau und Hutten AG AUSTRIA
Tungsten CID002082 Xiamen Tungsten Co., Ltd. CHINA
Tungsten CID002095 Xinhai Rendan Shaoguan Tungsten Co., Ltd. CHINA
Tungsten CID002315 Ganzhou Jiangwu Ferrotungsten Co., Ltd. CHINA
Tungsten CID002316 Jiangxi Yaosheng Tungsten Co., Ltd. CHINA
Tungsten CID002317 Jiangxi Xinsheng Tungsten Industry Co., Ltd. CHINA
Tungsten CID002318 Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. CHINA
Tungsten CID002319 Malipo Haiyu Tungsten Co., Ltd. CHINA
Tungsten CID002320 Xiamen Tungsten (H.C.) Co., Ltd. CHINA
Tungsten CID002321 Jiangxi Gan Bei Tungsten Co., Ltd. CHINA
Tungsten CID002494 Ganzhou Seadragon W & Mo Co., Ltd. CHINA
Tungsten CID002502 Asia Tungsten Products Vietnam Ltd. VIET NAM
Tungsten CID002513 Chenzhou Diamond Tungsten Products Co., Ltd. CHINA
Tungsten CID002535 Jiangxi Xiushui Xianggan Nonferrous Metals Co., Ltd. CHINA
Tungsten CID002541 H.C. Starck Tungsten GmbH GERMANY
Tungsten CID002542 H.C. Starck Smelting GmbH & Co. KG GERMANY
Tungsten CID002543 Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC VIET NAM
Tungsten CID002551 Jiangwu H.C. Starck Tungsten Products Co., Ltd. CHINA
Tungsten CID002579 Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji CHINA
Tungsten CID002589 Niagara Refining LLC UNITED STATES OF AMERICA
Tungsten CID002649 Hydrometallurg, JSC RUSSIAN FEDERATION
Tungsten CID002724 Unecha Refractory metals plant RUSSIAN FEDERATION
Tungsten CID002815 South-East Nonferrous Metal Company Limited of Hengyang City CHINA
Tungsten CID002827 Philippine Chuangxin Industrial Co., Inc. PHILIPPINES
Tungsten CID002830 Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd. CHINA
Tungsten CID002833 ACL Metais Eireli BRAZIL
Tungsten CID002843 Woltech Korea Co., Ltd. KOREA, REPUBLIC OF
Tungsten CID002845 Moliren Ltd. RUSSIAN FEDERATION

 

*CID002232 & CID002015 SoRs were determined to be in ASE’s conflict minerals supply chain as of December 31, 2017. However such SoRs were subsequently found to be inoperative during 2017.

 

24 

 

Annex E – Countries of Origin of Conflict Minerals

 

It is likely that we used conflict minerals from many of the following sources as well as some that are not identified.

 

 

Argentina Australia Austria Benin
Bolivia (Plurinational
State of)
Brazil Burkina Faso Burundi
Cambodia Canada Chile China
Colombia Congo (Democratic
Republic of the Congo)
Ecuador Eritrea
Ethiopia France Germany Ghana
Guatemala Guinea Guyana Honduras
India Indonesia Japan Kazakhstan
Laos Madagascar Malaysia Mali
Mexico Mongolia Mozambique Myanmar
Namibia Nicaragua Nigeria Panama
Peru Portugal Russian Federadtion Russian Federation
Rwanda Senegal Sierra Leone South Africa
Spain Thailand Togo Uganda
United Kingdom of Great Britain and Northern Ireland United States of
America
Uzbekistan Viet Nam
Zimbabwe Recycle/ Scrap    

 

 

 

 

25