AMD is taking steps to break the link between the trade in minerals and ongoing conflict and human rights abuses in Central Africa.
The Democratic Republic of Congo (DRC) has been the site of one of the world's worst humanitarian crises throughout the last decade. Illegal armed groups and some Congolese national military units regularly commit human rights abuses while being supported by the trade of minerals. Some have linked this egregious situation to the trade in raw minerals from the DRC, spotlighting the uses of minerals in everyday consumer products. Conflict Minerals generally consist of tin, tantalum, tungsten, and gold (collectively known as 3TG) determined to be financing conflicts in the DRC or an adjoining country. For the purposes of this policy, AMD uses the definition of "Conflict Minerals" found in the SEC conflict minerals rule.
AMD is committed to achieving conflict-free certified sourcing of materials used in products. AMD is a founder of the Public-Private Alliance (PPA) for Responsible Minerals Trade, which is focused on helping the DRC and other governments in the region break the link between the illicit minerals trade and the ongoing violence and human rights abuses; and an active participant in the Responsible Minerals Initiative (“RMI”), which oversees independent third-party audits of smelters and refiner procurement and processing activities to determine if the smelter or refiner processes Subject Minerals originating from conflict-free sources.
AMD believes that an effective approach has three fundamental elements:
- A mineral certification program that enables the traceability and certification of minerals mined in the Democratic Republic of the Congo and adjoining countries (the “DRC region”);
- A conflict-free smelter program that enables third-party validation of each smelter’s sourcing practices and a determination of whether its sources are conflict-free; and
- Due diligence to verify that tin, tantalum, tungsten, and gold in AMD’s finished products can be traced to a certified conflict-free smelter.
AMD adopted the Responsible Business Alliance’s (RBA) Code of Conduct and shares those expectations with our manufacturing suppliers in our annual Supplier Assurance Letter. AMD suppliers shall not knowingly, through trade in Subject Minerals, directly or indirectly, finance or benefit armed groups in the DRC region.
Multi-Stakeholder Dialogue on Conflict Minerals
AMD has been a leader in bringing together NGOs, companies, and socially responsible investors on the conflict minerals. We actively participate in the Responsible Minerals Initiative (RMI), and we were a founder and supporter of the Public-Private Alliance (PPA) for Responsible Minerals Trade. We have also engaged with the U.S. State Department on helping the DRC and other governments in the region reduce conflict and improve security. These efforts, combined with tracking materials through our supply chain, are aimed at helping to bring lasting peace and prosperity to this troubled region.
AMD works with our suppliers to identify the smelters and refiners (SORs) of origin within our supply chain for Subject Minerals utilizing the standardized tracing processes developed by the RMI and to transition over to conflict-free sources. AMD collected 100% of Conflict Minerals Reporting Templates (CMRTs) from our active suppliers for 2017. AMD then compares the list of alleged SORs from its supplier submissions with the Responsible Minerals Assurance Process’s (RMAP) list of Conformant Smelters & Refiners. Given that SORs are several steps removed from AMD, full understanding of the conflict status of the Subject Minerals in our supply chain will take some time.
(RED) Percent Compliant
(BLACK) Responsible Minerals Assurance Process (RMAP)-eligible
- Tantalum: 100% Compliant
- Tin: 100% Compliant
- Tungsten: 100% Compliant
- Gold: 98% Compliant, <2% RMAP-eligible
100% of conflict mineral smelters or refiners identified in AMD’s supply chain have been independently audited, are in-process, or are eligible to participate in the RMAP audit process. AMD’s primary silicon wafer foundries are conflict-free
SMELTERS OR REFINERS
100% of conflict mineral smelters or refiners identified in AMD’s supply chain have been independently audited, are in-process, or are eligible to participate in the RMAP audit process.
AMD suppliers shall not knowingly, through trade in Subject Minerals, directly or indirectly finance or benefit armed groups in the DRC region:
- AMD suppliers shall have documented policies and procedures to demonstrate that the Subject Materials they procure are sourced in accordance with this policy; and
- AMD suppliers, to the extent reasonably practicable, shall trace the Subject Minerals they supply to AMD to a smelter certified under the Responsible Mineral Intiative’s Responsible Minerals Assurance Process (RMAP).
In an effort to break the link between minerals trade and conflict in the DRC, a provision of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) requires certain companies using any of four minerals (tin, tantalum, tungsten and gold) to identify their mine of origin. By tracking and publicly reporting this information, the public can choose products that have no link to the conflict in Central Africa (in other words, are “conflict-free”). Through transparency and market pressure, the goal of the policy is to reduce or eliminate funding to armed groups creating conflict in the DRC.
The Securities and Exchange Commission (SEC) issued a final rule for tracking conflict minerals on August 22, 2012. This rule sets out the due diligence and reporting requirements for U.S. public companies for tracing the sources of tin, tungsten, tantalum and gold that are necessary to the functionality or production of their products. If these conflict minerals are found to originate from the DRC or an adjoining country (the “DRC region”), companies may be required to file an independently audited report with the SEC.
- Based on information provided to AMD by our manufacturing suppliers and the Responsible Mineral Initiative (RMI) as of March 31, 2018
- *Elemetal Refining, LLC: RMAP dispositioned as Non Conformant on 4/18/2017 due to the facility ceasing operations with no indication of reopening operations. Non-conformance is the result the facility's failure to renew its audit status, because it ceased operations (not the result of discovering evidence that implies unethical sourcing contributing to conflict groups within the DRC and its adjoining countries).
- Based on silicon wafers received from GLOBALFOUNDRIES and TSMC as of March 31, 2018