Conflict Minerals Management Policy
Conflict minerals refer to minerals such as tin, tantalum, tungsten, and gold produced in conflict-affected countries such as the Democratic Republic of the Congo or neighboring countries. Funds generated from conflict minerals flow into the armed forces within the country and not only massacre its citizens, but also violate human rights such as child and forced labor and abuse of women that may occur during the mining process. Amid rising international concerns about this, the US Congress enacted a law (Dodd-Frank Financial Regulatory Reform Act) in 2010 that required reporting on the use of conflict minerals. Investigate whether or not minerals are used and their origin, conduct due diligence on the supply chain, and report the results to the U.S. Securities and Exchange Commission (SEC).
As a responsible corporate citizen, SEMI-TS will ensure that conflict minerals associated with armed forces in conflict zones are not included in the supply chain for the production of SEMI-TS products.
We will establish a conflict minerals business process to comply with the law by applying international standards for regulating conflict minerals, and actively support activities to ban the use of conflict minerals promoted by RMI (Responsible Minerals Initiative). The Mineral Use Reporting Questionnaire will be used to identify the names and locations of all smelters for tin, tantalum, tungsten, and gold used in our products. We will ask our suppliers. We will support our suppliers to purchase conflict minerals from smelters certified under the Responsible Minerals Assurance Process (RMAP). We will establish due diligence procedures in accordance with the OECD Due Diligence Guidance, and we will In this case, we will conduct due diligence on the procedures and data that the partner company has taken to report the use of conflict minerals. We will disclose the current status of our use of conflict minerals to the outside world every year in accordance with the law related to conflict minerals.
SEMI-TS requires all suppliers to fully understand the laws related to conflict minerals in the United States and to strictly comply with the company's conflict minerals management policy so that the company's conflict minerals management policy can be consistently applied within the lower supply chain.
To this end, SEMI-TS' partners must perform the following procedures. Documented conflicts ensure that the products supplied to SEMI-TS do not contain conflict minerals that contribute to the armed forces of the Democratic Republic of the Congo or its neighboring countries. Mineral management policies and procedures must be established. Suppliers must make good faith efforts to find out the names and locations of all smelters in the supply chain where conflict minerals have been purchased. Suppliers must use conflict minerals at the request of SEMI-TS. Reporting questionnaires must be completed and submitted in a timely manner. Suppliers must take corrective action in a timely manner when risks are discovered in the supply chain. If SEMI-TS does not receive sufficient information from suppliers to confirm the use of conflict minerals, or suppliers provide false information In this case, and if a risk is found in the supplier's supply chain, but enforcement measures are not taken, SEMI-TS may suspend business with the supplier.
SEMI-TS will actively participate in international efforts to ban the use of conflict minerals together with its partners and customers, and through this, it will fulfill its social responsibility to protect human rights in the Democratic Republic of the Congo and neighboring countries.