EX-1.02 2 d731435dex102.htm EX-1.02 EX-1.02

Exhibit 1.02

Conflict Minerals Report of Texas Instruments Incorporated

for the Year Ending December 31, 2013

This Conflict Minerals Report should be read in conjunction with the definitions contained in the Securities and Exchange Commission instructions to Form SD and related rules. “Conflict minerals” refers to four specific metals regardless of their country of origin or whether they are financing or benefiting armed conflict: tantalum, tin, tungsten and gold.

During 2011-2013, we established management systems and due diligence procedures (our “CM Process”) as a basis for supply-chain management and disclosure compliance relating to the conflict minerals necessary to the functionality or production of products manufactured by TI, or contracted by TI to be manufactured, and required to be reported for 2013 (collectively, “CMs”). We designed the CM Process with the intent to conform in all material respects with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (Second Edition). The design of the CM Process included the following:

 

    a conflict minerals policy;

 

    an organizational structure and processes intended to ensure that our direct suppliers of CMs and each third-party manufacturer of our products that contain CMs (collectively, “Suppliers”) are made aware of TI’s policy on CMs and that information received by TI that is relevant to supply-chain due diligence reaches TI employees who have knowledge of the SEC disclosure requirements;

 

    a process, which uses a reporting tool and data gathered by an electronics industry initiative (described below), to achieve control and transparency over our CM supply chain and identify the risk that our products may contain CMs financing or benefiting armed groups in the Democratic Republic of the Congo or any adjoining country (each a “Covered Country”);

 

    assessment and management of risks identified through the process described above;

 

    a mechanism for Suppliers and others to communicate to TI their concerns with respect to our CM Process;

 

    reliance on the electronics industry initiative described below to validate supply chain due diligence; and

 

    public reporting of the results of our due diligence.

Our ability to determine the origin and chain of custody of CMs, and whether they directly or indirectly finance or benefit armed groups in any Covered Country (the “Conflict Status”), is limited. Our supply chain for CMs is complex. In many cases, we are four or more steps removed from the smelter or the mine and we depend on information from Suppliers that themselves have incomplete information about the origin of the CMs they supply to us.

To gain insight into the country of origin, chain of custody and Conflict Status of our CMs, we relied primarily on the findings of the Conflict-Free Smelter Program (“CFSP”). Established by members of the Electronic Industry Citizenship Coalition (“EICC”) and the Global e-Sustainability Initiative (“GeSI”), CFSP is a voluntary program in which an independent third party evaluates smelters’ and refiners’ procurement and inventory practices and determines whether the smelter or refiner (“Smelter”) has demonstrated that all the materials it processed originated from conflict free sources.

The measures we took to exercise due diligence on the source and chain of custody of our CMs were as follows:

 

    communicating our CM policy to Suppliers;

 

    directing Suppliers to provide information concerning Smelters in their supply chains by completing and sending to us the Conflict Minerals Reporting Template (a tool developed by members of the EICC and GeSI that provides a common means for suppliers to provide their customers with information on the source of conflict minerals);

 

    analyzing Suppliers’ Conflict Minerals Reporting Template responses for completeness and internal consistency and following up with Suppliers in an effort to get more information;

 

    comparing the information received from Suppliers with the data made available by the CFSP concerning the country of origin and Conflict Status of CMs processed or refined by Smelters; and

 

    reviewing other source materials, such as publications of the United Nations, if we were unable to determine, on the basis of the information provided by Suppliers and CFSP data, (i) the facility and country of origin of the CMs supplied to us, (ii) the Conflict Status of the CMs and (iii) whether the CMs were from recycled or scrap sources.

In responding to our data requests, many Suppliers named all the Smelters they had found in their supply chains, without specifying which Smelters were relevant to CMs actually supplied to TI. Accordingly, we refer below to Smelters as being “potentially” in our supply chain. Moreover, industry efforts to collect and verify origin information were continuing in 2013 and even now are incomplete, particularly for CMs other than tantalum. The results of our due diligence, which are summarized below, reflect these limitations.


Conflict Mineral

  

Determination

Tantalum   

We identified 20 tantalum Smelters as potentially in our supply chain.

 

For 18 of the 20 Smelters, we determined that the tantalum was conflict free based on an independent third-party audit of the Smelters.

 

The origin of the materials processed by the other two Smelters was undeterminable, reflecting the limited information available.

Tin   

We identified 46 tin Smelters as potentially in our supply chain.

 

For nine of the 46 Smelters, we determined that the tin was conflict free based on an independent third-party audit of the Smelters.

 

The origin of the materials processed by the other 37 Smelters was undeterminable, reflecting the limited information available.

Tungsten   

We identified 19 tungsten Smelters as potentially in our supply chain.

 

For one of the 19 Smelters, we determined that the tungsten was conflict free based on an independent third-party audit of the Smelters.

 

The origin of the materials processed by the other 18 Smelters was undeterminable, reflecting the limited information available.

Gold   

We identified 89 gold Smelters as potentially in our supply chain.

 

For 35 of the 89 Smelters, we determined that the gold was conflict free based on an independent third-party audit of the Smelters.

 

The origin of the materials processed by the other 54 Smelters was undeterminable, reflecting the limited information available.

The potential Smelters that processed materials of undeterminable origin are identified in the Appendix hereto.

On the basis of our due diligence, we found with respect to each of our products that (1) the information we had gathered had failed to clarify the country of origin and Conflict Status of at least one of the CMs contained in the product and (2) no CMs were from a source that, to our knowledge, was directly or indirectly financing or benefiting armed conflict in a Covered Country.

Our products are in the following categories as described in our annual report on Form 10-K for the year ending December 31, 2013: Analog products (including High Volume Analog & Logic, Power Management, High Performance Analog and Silicon Valley Analog products); Embedded Processing products (including Processors, Microcontrollers and Connectivity products); and Other products (including DLP® products, custom semiconductors known as application-specific integrated circuits and calculators). For further information about our products, please see the description of our products in Item 1 of the Form 10-K, which description is incorporated herein by reference.

Our efforts to determine the mine or location of origin of the CMs consisted of the due diligence measures described above.

Since the period covered by this Report, we have taken, or will take, the following steps to mitigate the risk that our CMs benefit armed groups in the Covered Countries, including to improve our due diligence:

 

    redistribute copies of our CM policy to Suppliers;


    emphasize to them our expectation that they respond fully and promptly to our information requests;

 

    instruct them to advise us if they determine that any person or entity in their supply chain is directly or indirectly financing or benefiting armed groups in the Covered Countries; and

 

    encourage them to direct all Smelters in their supply chains to participate in the CFSP or a similar third-party audit program.

This Conflict Minerals Report and our conflict minerals policy are available on our web site at www.ti.com/conflictminerals. We are not incorporating by reference the contents of our web site into this Conflict Minerals Report.

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Appendix

Listed below are the smelters and refiners we have determined to be potentially in our supply chain for 2013 that have processed CMs of undeterminable origin. As explained above, the presence of a smelter or refiner on the list does not indicate that TI products necessarily contained CMs processed by that smelter or refiner. The location information is as reported by the CFSP as of April 15, 2014.

 

Smelter or Refiner

  

Conflict
Mineral

    

Location

Aida Chemical Industries Co. Ltd.

   Gold      JAPAN

Almalyk Mining and Metallurgical Complex (AMMC)

   Gold      UZBEKISTAN

Asaka Riken Co. Ltd.

   Gold      JAPAN

Atasay Kuyumculuk Sanayi Ve Ticaret A.S.

   Gold      TURKEY

Aurubis AG

   Gold      GERMANY

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

   Gold      PHILIPPINES

Boliden AB

   Gold      SWEDEN

Caridad

   Gold      MEXICO

Cendres & Métaux SA

   Gold      SWITZERLAND

Chimet SpA

   Gold      ITALY

Chugai Mining

   Gold      JAPAN

Daejin Indus Co. Ltd.

   Gold      REPUBLIC OF KOREA

DaeryongENC

   Gold      REPUBLIC OF KOREA

Do Sung Corporation

   Gold      REPUBLIC OF KOREA

FSE Novosibirsk Refinery

   Gold      RUSSIAN FEDERATION


Guangdong Jinding Gold Limited    Gold    CHINA
Heimerle + Meule GmbH    Gold    GERMANY
Heraeus Precious Metals GmbH & Co. KG    Gold    GERMANY
Heraeus Ltd. Hong Kong    Gold    HONG KONG
Hwasung CJ Co. Ltd.    Gold    REPUBLIC OF KOREA
Japan Mint    Gold    JAPAN
Jiangxi Copper Company Limited    Gold    CHINA
JSC Ekaterinburg Non-Ferrous Metal Processing Plant    Gold    RUSSIAN FEDERATION
JSC Uralectromed    Gold    RUSSIAN FEDERATION
Kazzinc Ltd.    Gold    KAZAKHSTAN
Korea Metal Co. Ltd.    Gold    REPUBLIC OF KOREA
Kyrgyzaltyn JSC    Gold    KYRGYSTAN
L’azurde Company For Jewelry    Gold    SAUDI ARABIA
Lingbao Jinyuan Tonghui Refinery Co. Ltd.    Gold    CHINA
LS-Nikko Copper Inc.    Gold    REPUBLIC OF KOREA
Met-Mex Peñoles, S.A.    Gold    MEXICO
Moscow Special Alloys Processing Plant    Gold    RUSSIAN FEDERATION
Nadir Metal Rafineri San. Ve Tic. A.Ş.    Gold    TURKEY
Navoi Mining and Metallurgical Combinat    Gold    UZBEKISTAN


OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet)

   Gold      RUSSIAN FEDERATION
OJSC Kolyma Refinery    Gold      RUSSIAN FEDERATION
Prioksky Plant of Non-Ferrous Metals    Gold      RUSSIAN FEDERATION
PT Aneka Tambang (Persero) Tbk    Gold      INDONESIA
PX Précinox SA    Gold      SWITZERLAND
Rand Refinery (Pty) Ltd.    Gold      SOUTH AFRICA
Sabin Metal Corp.    Gold      UNITED STATES
Samwon Metals Corp.    Gold      REPUBLIC OF KOREA
Schone Edelmetaal    Gold      NETHERLANDS
Shandong Zhaojin Gold & Silver Refinery Co. Ltd.    Gold      CHINA
So Accurate Group, Inc.    Gold      UNITED STATES
The Great Wall Gold and Silver Refinery of China    Gold      CHINA
The Refinery of Shandong Gold Mining Co. Ltd.    Gold      CHINA
Tongling Nonferrous Metals Group Co., Ltd.    Gold      CHINA
Torecom    Gold      REPUBLIC OF KOREA
Umicore Brasil Ltda.    Gold      BRAZIL
Yamamoto Precious Metal Co., Ltd.    Gold      JAPAN
Yokohama Metal Co. Ltd.    Gold      JAPAN
Zhongyuan Gold Smelter of Zhongjin Gold Corporation    Gold      CHINA


Zijin Mining Group Co. Ltd.

   Gold    CHINA

Changsha South Tantalum Niobium Co. Ltd.

   Tantalum    CHINA

JiuJiang JinXin Nonferrous Metals Co. Ltd.

   Tantalum    CHINA

CNMC (Guangxi) PGMA Co. Ltd.

   Tin    CHINA

Cooper Santa

   Tin    BRAZIL

PT Prima Timah Utama

   Tin    INDONESIA

CV Serumpun Sebalai

   Tin    INDONESIA

CV United Smelting

   Tin    INDONESIA

EM Vinto

   Tin    BOLIVIA

Fenix Metals

   Tin    POLAND

Gejiu Zi-Li

   Tin    CHINA

Huichang Jinshunda Tin Co. Ltd.

   Tin    CHINA

Jiangxi Nanshan

   Tin    CHINA

Kai Unita Trade Limited Liability Company

   Tin    CHINA

Linwu Xianggui Smelter Co.

   Tin    CHINA

Metallo Chimique

   Tin    BELGIUM

Minmetals Ganzhou Tin Co. Ltd.

   Tin    CHINA

Mitsubishi Materials Corporation

   Tin    JAPAN

Novosibirsk Integrated Tin Works

   Tin    RUSSIAN FEDERATION


O.M. Manufacturing (Thailand) Co., Ltd.

   Tin    THAILAND

PT Artha Cipta Langgeng

   Tin    INDONESIA

PT Babel Inti Perkasa

   Tin    INDONESIA

PT Bangka Putra Karya

   Tin    INDONESIA

PT Bangka Tin Industry

   Tin    INDONESIA

PT Belitung Industri Sejahtera

   Tin    INDONESIA

PT DS Jaya Abadi

   Tin    INDONESIA

PT Eunindo Usaha Mandiri

   Tin    INDONESIA

PT Mitra Stania Prima

   Tin    INDONESIA

PT Sariwiguna Binasentosa

   Tin    INDONESIA

PT Stanindo Inti Perkasa

   Tin    INDONESIA

PT Tambang Timah

   Tin    INDONESIA

PT Tinindo Inter Nusa

   Tin    INDONESIA

PT Refined Bangka Tin

   Tin    INDONESIA

Rui Da Hung

   Tin    TAIWAN

Soft Metais Ltda.

   Tin    BRAZIL

PT Timah

   Tin    INDONESIA

White Solder Metalurgia

   Tin    BRAZIL

Liuzhou China Tin

   Tin    CHINA


Yunnan Chengfeng

   Tin    CHINA

China Rare Metal Materials Company

   Tin    CHINA

A.L.M.T. Corp.

   Tungsten    JAPAN

Kennametal Huntsville

   Tungsten    UNITED STATES

Guangdong Xianglu Tungsten Industry Co., Ltd.

   Tungsten    CHINA

Chongyi Zhangyuan Tungsten Co. Ltd.

   Tungsten    CHINA

Dayu Weiliang Tungsten Co., Ltd.

   Tungsten    CHINA

Fujian Jinxin Tungsten Co., Ltd.

   Tungsten    CHINA

HC Starck GmbH

   Tungsten    GERMANY

Hunan Chenzhou Mining Group Co.

   Tungsten    CHINA

Hunan Chun-Chang Nonferrous Smelting & Concentrating Co., Ltd.

   Tungsten    CHINA

Japan New Metals Co Ltd.

   Tungsten    JAPAN

Ganzhou Non-ferrous Metals Smelting Co., Ltd.

   Tungsten    CHINA

Ganzhou Huaxing Tungsten Products Co., Ltd.

   Tungsten    CHINA

Kennametal Fallon

   Tungsten    UNITED STATES

Tejing (Vietnam) Tungsten Co. Ltd.

   Tungsten    VIETNAM

Wolfram Bergbau und Hütten AG

   Tungsten    AUSTRIA

Wolfram Company CJSC

   Tungsten    RUSSIAN FEDERATION

Xiamen Tungsten Co. Ltd.

   Tungsten    CHINA

Zhuzhou Cemented Carbide Group Co. Ltd.

   Tungsten    CHINA