Effective October 1, 2012, QUALCOMM Incorporated completed a corporate reorganization in which the assets of certain of its businesses and groups, as well as the stock of certain of its direct and indirect subsidiaries, were contributed to Qualcomm Technologies, Inc. (QTI), a wholly-owned subsidiary of QUALCOMM Incorporated. Learn more about these changes

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Conflict Free Minerals

Conflict Free Minerals Policy

Qualcomm is aware that minerals mined in conflict areas in the Democratic Republic of the Congo (DRC) and adjoining countries may be making their way into the electronics industry supply chain and may be fueling human rights violations and environmental degradation in the DRC region.

Qualcomm strives to provide DRC conflict free products by supporting industry-wide efforts to drive transparency in the supply chain and by expecting that our suppliers obtain materials from environmentally and socially responsible sources, including conflict free sources within the DRC and adjoining countries.

Background

In 2010, the U.S. Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), which required the U.S. Securities and Exchange Commission (SEC) to issue rules requiring certain companies to disclose their use of “conflict minerals”—tantalum, tin, gold or tungsten—that originated in the DRC or adjoining countries. In 2012, the SEC adopted rules requiring such companies to disclose their use of such minerals. Companies, including ours, will be required to report on their use of conflict minerals beginning in 2014.

Qualcomm’s Engagement

We want our products to be DRC conflict-free. Even before the enactment of Dodd-Frank, we began working with peers and suppliers to develop systems to assist the electronics industry to be able to produce products without minerals that benefit armed groups in the DRC or adjoining countries whose activities are linked to human rights violations and environmental degradation. To produce DRC conflict-free products and comply with the SEC rule mandated by Dodd-Frank, we have been working since 2010 with our peers and suppliers.

We are working to implement the five-step framework described in 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. We also contribute to industrywide efforts, such as development and implementation of the Conflict-Free Sourcing Intiative Conflict Minerals Reporting Template and the Conflict-Free Smelter (CFS) Program. Through the CFS Program, an independent, third-party auditor evaluates the procurement activities of smelters and refiners to determine whether the smelter or refiner can demonstrate DRC conflict-free sourcing.

We have also joined the Public-Private Alliance for Responsible Minerals Trade to contribute to the development of a clean-minerals sourcing program in the DRC and surrounding areas.

To help suppliers understand and meet our expectations, our semiconductor business unit implemented Conflict-Free Minerals Requirements for Suppliers. The requirements are based on the OECD Due Diligence Guidance’s five-step, risk-based due diligence strategy.

In 2012, we surveyed the semiconductor business’s direct suppliers to assess their conflict minerals usage, the state of smelters and refiners in the supply chain, and their preparedness for achieving DRC conflict-free status. As more smelters and refiners are validated through the CFS Program, we, as well as the entire electronics industry supply chain, will move closer to achieving validated DRC conflict-free status. In the meantime, we intend to work with direct suppliers and smelters and refiners to advocate for participation in the CFS Program. Our membership in the Conflict-Free Sourcing Initiative (formerly known as EICC-GeSI Extractives Work Group) will continue to aid greatly in that effort.