LRCX Lam Research Corporation

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM SD

 

 

SPECIALIZED DISCLOSURE REPORT

 

 

LAM RESEARCH CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware		0-12933		94-2634797
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

4650 Cushing Parkway

Fremont, California 94538

(Address of principal executive offices, including zip code)

Douglas R. Bettinger

Executive Vice President and Chief Financial Officer

(510) 572-0200

(Name and telephone number, including area code, of the person

to contact in connection with this report)

 

 

Check the appropriate box to indicate the rule pursuant to which this form is being filed, and provide the period to which the information in this form applies:

 

x	Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2014.

 

 

 

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Section 1 – Conflict Minerals Disclosure

 

Item 1.01.

Conflict Minerals Disclosure and Report.

Conflict Minerals Disclosure

Lam Research Corporation (the “Company”) conducted in good faith a reasonable country of origin inquiry regarding the conflict minerals (as defined in Form SD) that are necessary to the functionality or production of a product that the Company manufactured or contracted to have manufactured in calendar year 2014 (the “Covered Minerals”). The inquiry was reasonably designed to determine if the Covered Minerals originated in the Democratic Republic of the Congo or an adjoining country or are from recycled or scrap sources.

The Company has determined that it is required to file, and has filed, a Conflict Minerals Report as Exhibit 1.01 to this Form SD. The Conflict Minerals Report is also publicly available at http://investor.lamresearch.com/sec.cfm. The content on any web site referred to in this Form SD is not incorporated by reference into this Form SD unless expressly noted.

 

Item 1.02.

Exhibit.

The Company’s Conflict Mineral Report is included as Exhibit 1.01 to this report.

Section 2 – Exhibits

 

Item 2.01.

Exhibits.

 

Exhibit Number		Description
1.01		Conflict Minerals Report of Lam Research Corporation.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: June 1, 2015

 

 

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EXHIBIT INDEX

 

Exhibit No.		Description
1.01		Conflict Minerals Report of Lam Research Corporation.

 

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Exhibit 1.01

LAM RESEARCH CORPORATION

CONFLICT MINERALS REPORT

For the reporting period from January 1, 2014 through December 31, 2014

This Conflict Minerals Report (this “Report”) of Lam Research Corporation (including its consolidated subsidiaries, the “Company”) has been prepared pursuant to Rule 13p-1 and Form SD promulgated under the Securities Exchange Act of 1934, for the reporting period January 1, 2014 through December 31, 2014 (the “Reporting Period”).

Rule 13p-1, through Form SD, requires the disclosure of certain information if a company manufactures or contracts to manufacture products for which certain “Subject Minerals” (as defined below) are necessary to the functionality or production of such products. “Subject Minerals” are defined herein as: (i)(a) columbite-tantalite (or coltan), (b) cassiterite, (c) gold and (d) wolframite, or their derivatives, which are currently limited to tantalum, tin and tungsten; or (ii) any other mineral or its derivatives determined by the U.S. Secretary of State to be financing conflict in the Democratic Republic of the Congo or an adjoining country (collectively, the “Covered Countries”).

The Company’s operations may at times manufacture, or contract to manufacture, products for which Subject Minerals are necessary to the functionality or production of those products (collectively, its “products” and, individually, a “product”). As required by Form SD, the Company has conducted a good faith reasonable country of origin inquiry regarding the Subject Minerals included in its products manufactured or contracted to be manufactured during the Reporting Period, which are referred to in this Report as the “Covered Minerals,” to determine whether any of such Covered Minerals originated in the Covered Countries and/or whether any of such Covered Minerals may be from recycled or scrap sources. Where applicable, the Company has conducted additional due diligence regarding the sources of the Covered Minerals. The results of the Company’s reasonable country of origin inquiry regarding the Covered Minerals, as well as its additional due diligence regarding the sources of the Covered Minerals, are contained in this Report.

 

I.	Reasonable Country of Origin Inquiry (“RCOI”)

 

A.

During the Reporting Period, the Company took the following measures, based on the Organization for Economic Cooperation and Development’s (“OECD”) due diligence framework, including resources provided by the Electronic Industry Citizenship Coalition and Global e-Sustainability Initiative (together, the “EICC-GeSI”), such as the EICC-GeSI Reporting Template, to determine the source and chain of custody for the Covered Minerals.

 

1.

The Company sent a letter in June 2014 to its direct-spend suppliers which the Company believed could provide materials containing Covered Minerals (collectively, the “Covered Suppliers”) requesting that such suppliers: (a) determine whether they supplied the Company with Covered Minerals; (b) using resources provided by the EICC-GeSI, identify smelters in their supply chain that supply Covered Minerals; and (c) download, complete and return the EICC-GeSI Reporting Template to the Company.

 

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2.

The Company subsequently: (a) filed and logged received responses; (b) followed up with Covered Suppliers that had provided incomplete information, conflicting information or a response the Company believed required clarification; and (c) continued to make efforts to engage Covered Suppliers that did not respond to the Company’s requests for information through various channels of communication.

 

B.

After taking the measures described in A. above, the Company was unable to determine whether its products manufactured or contracted to be manufactured during the Reporting Period contain Covered Minerals from the Covered Countries. As a result, the Company exercised due diligence on the source and chain of custody of Covered Minerals in its supply chain as described in Part II below.

 

II.	Due Diligence and Risk Mitigation

The Company’s due diligence process, which significantly overlaps the Company’s RCOI process described above, is based on the OECD’s due diligence guidelines. In addition to the RCOI, the Company has done the following since the start of 2014 to determine the mine or location of origin for the Covered Minerals included in its products:

 

1.

Company Management Systems

 

a.

Maintain Appropriate Organizational Structure to Support Due Diligence

The Company has established an organizational structure to support its due diligence process that includes processes for handling requests for information, escalations to management regarding any issues or problems, surveying of suppliers and documentation of any responses and red flags associated therewith.

The Company’s due diligence process is carried out by individuals in the Company’s supply chain organization, who are supported by an inter-disciplinary support team comprised of members of the legal department, finance, engineering, customer account teams and environmental health and safety departments to help address any questions associated with the reasonable country of origin inquiry and/or due diligence process.

The Company continues to make available online training regarding conflict minerals regulation and the impact thereof on the Company for the following groups of individuals: (i) supply chain business managers; (ii) representatives of the customer account teams; (iii) directors of the environmental health and safety group; (iv) senior management of the supplier engineering team; and (v) senior management of the supply chain group. The Company also provides reports and briefings on the requirements and implications to Company management.

 

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b.

Communicate Conflict Mineral Policy

The Company has adopted and communicated to suppliers and to the public a Conflict Minerals Policy Statement. A copy of the Policy is publicly available at http://www.lamresearch.com/company/corporate-social-responsibility/supply-chain. The content on any web site referred to in this Report is not incorporated by reference into this Report unless expressly noted.

 

c.

Company Engagement with Suppliers

The Company continues to include a standard provision in the terms and conditions of its purchase orders requiring its suppliers to promptly provide accurate, complete and timely information and documentation to assist the Company as it may request to comply with Rule 13p-1 and Form SD, including disclosing whether any of the suppliers’ deliverables contain Covered Minerals and, if so, to provide such information as the Company may request to allow the Company to determine whether such Covered Minerals are DRC conflict free (as such term is defined in Form SD). The Company is also in the process of incorporating similar requirements into relevant commonly used supplier contract templates to further strengthen supplier engagement in the due diligence process.

 

d.

Internal Process Improvements Associated with Covered Minerals

The Company continues to evaluate various process improvements that may be available to it at different points in the supply chain life cycle to enhance the transparency of Covered Mineral usage and disclosure.

 

2.

Identify and Assess Risks in the Supply Chain

The Company’s methods for identifying and assessing risks in the supply chain are set forth above in the description of the Company’s Reasonable Country of Origin Inquiry.

 

3.

Design and Implement Strategy to Respond to Risks

 

a.

Devise Risk Management Plan

The Company has prepared a risk management plan to respond to any situations which might arise involving Covered Minerals identified as being sourced from the Covered Countries, which includes carrying out the due diligence described in this Report, understanding the products impacted by any supplied materials identified as containing Covered Minerals, understanding the extent of the Company’s reliance on such materials, and working with the Company’s suppliers to ensure that any Covered Minerals are sourced responsibly wherever possible.

 

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b.

Reporting of Conflict Minerals Surveying Results to Management

The Company has apprised members of senior management of the status and results of the inquiry and due diligence process to allow for any appropriate feedback and guidance.

 

c.

Continued Supplier Engagement

When necessary or requested the Company continues to work with its suppliers to educate them about Subject Minerals and to encourage responsible sourcing and usage of independently certified conflict-free smelters and refiners.

 

4.

Independent Third-Party Audit of Smelter’s / Refiner’s Due Diligence Practices

Where possible, the Company has relied on third party assurances and certifications. For example, the Company accepts as reliable any smelter that is a member of the EICC-GeSI Conflict Free Smelter program. To the extent that other audited supplier certifications are provided to the Company, the Company may consider reliance on a case-by-case basis.

 

5.

Report Annually on Supply Chain Due Diligence

This Report and the Company’s prior annual Conflict Minerals Report for calendar year 2013 are publicly available at http://investor.lamresearch.com/sec.cfm.

 

III.	Product Description

The following products are within the scope of Rule 13p-1 and Form SD.

1. Etch and Photoresist Strip Products

A series of wafer fabrication products that selectively remove materials from the wafer to create features and patterns of a device and to remove the photoresist mask:

 

a.

2300® Kiyo® product family

b.

2300® Versys® Metal product family

c.

2300® Flex™ product family

d.

2300 Syndion® product family

e.

G400®, GxT®, G3D®

f.

TCP® 9400DSiE product family

2. Deposition Products

A series of high-productivity thin film deposition systems that form a device’s sub-microscopic layers of conducting (metal) or insulating (dielectric) materials:

 

a.

SABRE® product family

b.

ALTUS® product family

c.

VECTOR® product family

d.

SPEED® product family

e.

SOLA® product family

 

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3. Clean Products

A series of single-wafer wet and plasma-based wafer cleaning products that remove particles and residues from the wafer surface before and after adjacent processes:

 

a.

DV-Prime®

b.

Da Vinci®

c.

SP Series

d.

2300® Coronus®

4. Legacy Products

Multiple series of refurbished and newly built previous-generation products from Lam, as the original equipment manufacturer (“OEM”), for applications that do not require the most advanced wafer processing capability.

 

IV.	Smelter / Refiner and Country of Origin

Based solely on information that was provided by the Covered Suppliers (as described above), some of which was on an entity level without specification as to application with respect to the specific Covered Minerals the Company purchased, and without independent verification, the Company believes that the facilities that were used to process the Covered Minerals may have included some or all of the EICC-GeSI and/or Conflict Free Smelter Initiative recognized smelters and/or refiners listed below:

Smelter / Refiner Facility Names

 

Allgemeine Gold- und Silberscheideanstalt A.G. Accurate Refining Group Advanced Chemical Company Aida Chemical Industries Co. Aktyubinsk Copper Company Allgemeine Gold und Silberscheideanstalt A.G. Allied Material (A.L.M.T) Corp Allied Material Corporation Almalyk Mining and Metallurgical Complex (AMMC) Amalgamated Metal Corp AngloGold Ashanti Mineração Ltda Argor-Heraeus SA Asahi Pretec Corp Asahi Riken Co. Atasay Kuyumculuk Sanayi Ve Ticaret A.S. ATI Metalworking Products		Aurubis AG Bangko Sentral ng Pilipinas (Central Bank of the Philippines) Bauer Walser AG Boliden AB Caridad CCR Refinery – Glencore Canada Corporation Cendres & Métaux SA C. Hafner GMBH + Co Chaozhou Xianglu Tungsten Industry Co Ltd Chimet SpA China Minmetals Corp. China National Gold Group Corporation China Rare Metal Materials Company China Tin Group Co. Chongyi Zhangyuan Tungsten Co Ltd Chugai Mining Co., LTD Codelco Colt Refining		Cookson Conghua Tantalum and Niobium Smeltry CooperMetal CV DS Jaya Abadi CV Duta Putra Bangka CV JusTindo CV Makmur Jaya CV Nurjanah CV Prima Timah Utama CV United Smelting CV. Serumpun Sebalai CV Venus Inti Perkasa D Block Metals Daejin Indus Co. DaeryongENC Daye Nonferrous Dayu Jincheng Tungsten Industry Co. Do Sung Corp. Doduco Douluoshan Sapphire Rare Metal Co. Dowa Eco-System Recycling Co., LTD.

 

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EM Vinto Engelhard Corp. Exotech F&X Fenix Metals FIR Metals & Resource, Ltd. FSE Novosibirsk Refinery Fujian Jinxin Tungsten Co., LTD Gannon & Scott Ganzhou Grand Sea W & Mo Group Co Ltd Ganzhou Huaxing Tungsten Co. Ltd. Ganzhou Nonferrous Metals Smelting Co Ltd. Ganzhou Seadragon W & Mo Co., Ltd. Gejiu Non-Ferrous Metal Processing Co. Ltd. Geijiu Kai Meng Industry and Trade Gejiu Zi-Li Metallurgy Co., Ltd. Global Advanced Metals Global Tungsten & Powders Corp Gold Bell Group Guangdong Jinding Gold Ltd. Guangxi Pinggui PGMA Co. Ltd. Hangzhou Fuchunjiang Smelting Co., Ltd. H.C. Starck GmbH HC Starck GmbH Heimerle + Meule GmbH Heraeus Ltd Hong Kong Heraeus Precious Metals GmbH & Co. KG Henan Zhongyuan Gold Smelter Co. Hengyang King Xing Lifeng New Materials Co. Hi-Temp Huichang Jinshunda Tin Co. Hunan Chun-chang Non-ferrous Smelting & Concentrating Co., Ltd. Hwasung CJ Co. Ltd. Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited Ishifuku Metal Industry Co., Ltd. Istanbul Gold Refinery		Japan Mint Japan New Metal Jiangxi Copper Company Limited Jiangxi Dinghai Tantalum & Niobium Co., Ltd. Jiangxi Nanshan Jiangxi Rare Earth Metals Tungsten Group Corp Jiangxi Tungsten Industry Group Co Ltd Jiangxi Rare Earth & Rare Metals Tungsten Group Jiangxi Richsea New Materials Co., Ltd. Jiangxi Xiushui Xianggan Nonferrous Metals, Co., Ltd. Jiangxi Yaosheng Tungsten Co., Ltd. Jiujiang Jinxin Nonferous Metals Co., Ltd Jiujiang Tambre Co., Ltd. Jiujiang Zhongao Tantalum & Niobium Co., Ltd. Johnson Matthey JSC Ekaterinburg Non-Ferrous Metal Processing Plant JSC Uralectromed JX Nippon Mining & Metals Co., Ltd Kazzinc Ltd Kemet Blue Powder Kennametal Inc. KGHM Polska Miedz Spotka Akcyjna King-Tan Tantalum Industry Ltd. Korea Metal Kojima Chemicals Co.,Ltd Kyrgyzaltyn JSC L’ azurde Company For Jewelry Linwu Xianggui Smelter Co. LS-Nikko Copper Inc Luoyang Zijin Yinhui Gold Smelting Co. Ltd. Malaysia Smelting Corp Malipo Haiyu Tungsten Co. Ltd. Materion Advanced Metals Matsuda Sangyo Co. Ltd Metallo Chimique Metallurgical Products India		Metalor Technologies (Hong Kong) Ltd Metalor Technologies SA Metalor USA Refining Corporation Met-Mex Peñoles, S.A. Mineração Taboca S.A. Minmetals Ganzhou Tin Mitsubishi Materials Corp. Mitsui Mining & Smelting Molycorp Silmet Moscow Special Alloys Processing Plant Nadir Metal Rafineri San. Ve Tic. A.Ş. Navoi Mining and Metallurgical Combinat Nihon Material Co., Ltd. Niihama Nickel Refinery Ningxia Orient Tantalum Industry Co., Ltd. Nui Phao H.C. Starck Tungsten Chemicals Manufacturing Ohio Precious Metals Ohura Precious Metal Industry Co., Ltd. OJSC Kolyma Refinery OMSA PAMP SA Pan Pacific Copper Co. Ltd. Penglai Pengang Gold Co. Ltd Plansee Prioksky Plant of Non-Ferrous Metals PT Alam Lestari Kencana PT Aneka Tambang (Persero) Tbk PT Artha Cipta Langgeng PT ATD Makmur Mandiri Jaya PT Babel Inti Perkasa PT Babel Surya Alam Lestari PT Bangka Kudai Tin PT Bangka Putra Karya PT Bangka Timah Utama Sejahtera PT Belitung Industri Sejahtera PT BilliTin Makmur Lestari PT Eunindo Usaha Mandiri PT Fang Di MulTindo PT Hanjaya Perkasa Metals PT HP Metals Indonesia PT Inti Stania Prima

 

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PT Koba Tin PT Mitra Stania Prima PT Panca Mega Persada PT Pelat Timah Nusantara PT Prima Timah Utama PT Rajwa International PT Refined Banka Tin PT Sariwiguna Binasentosa PT Stanindo Inti Perkasa PT Sumber Jaya Indah PT Supra Sukses Trinusa PT Timah Nusantara PT Tinindo Inter Nusa PT Tirus Putra Mandiri PT Tommy Utama PT Wahana Perkit Jaya PT Yinchendo Mining Industry PX Précinox SA Rand Refinery (Pty) Ltd Republic Metals Corporation RFH Royal Canadian Mint Sabin Metal Corp. Samduck Precious Metals Samwon Metals Sanher Tungsten Vietnam Co., Ltd. Schone Edelmetaal SEMPSA Joyeria Plateria SA Shandong Zhaojin Gold & Silver Refinery Co., Ltd Shanghai Jiangxi Metals Co. Sichuan Metals & Materials Imp & Exp Co Solar Applied Materials Technology Corp. Solikamsk Metal Works Sumitomo Metal Mining Co., Ltd. Telex Tejing Tungsten Co. Ltd. Thaisarco The Great Wall Gold and Silver Refinery of China The Refinery of Shandong Gold Mining Co., Ltd Tokuriki Honten Co., Ltd Ulba Umicore Brasil Ltda Umicore SA Business Unit Precious Metals Refining Valcambi SA Western Australian Mint trading as The Perth Mint		Wolfram Bergbau und Hütten AG Wolfram Company CJSC Xiamen Tungsten Co., Ltd. Xinhai Rendan Shaoguan Tungsten Co., Ltd. Yamamoto Precious Metal Yichun Jin Yang Rare Metal Yokohama Metal Co., Ltd. Yunnan Chengfeng Non- Ferrous Metals Co., LTD Yunnan Tin Company Limited Zhaojin Group and Gold Mineral China Co., Ltd. Zijin Mining Group Co. Ltd

 

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As the Company’s engagement with the supply chain for its products evolves and matures, this list may change to reflect improvements in the quality of information provided to the Company.

Based solely on information that was provided by the Covered Suppliers (as described above), some of which was on an entity level without specification as to application with respect to the specific Covered Minerals the Company purchased, and without independent verification, the Company believes that the countries of origin of the Covered Minerals for the above listed facilities include:

 

Australia		Indonesia		Russian Federation
Austria		Italy		Saudi Arabia
Belgium		Japan		South Africa
Bolivia		Kazakhstan		Spain
Brazil		Republic of Korea		Sweden
Canada		Republic of Kyrgyzstan		Switzerland
Chile		Malaysia		Taiwan
China		Mexico		Thailand
Estonia		Netherlands		Turkey
Germany		Peru		United States
Hong Kong		Philippines		Uzbekistan
India		Poland		Vietnam

As the Company’s engagement with the supply chain for its products evolves and matures, this list may change to reflect improvements in the quality of information provided to the Company.

Forward-Looking Statement Disclaimer

Statements made in this Report that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to, those regarding the Company’s expected future supplier diligence and engagement efforts and development of related due diligence processes. Some factors that may affect these forward-looking statements include: regulatory changes and judicial developments relating to conflict minerals disclosure; changes in our supply chain, components and parts, or products; and industry developments relating to supply chain diligence, disclosure and other practices. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks, including those detailed in documents filed by us with the Securities and Exchange Commission. These uncertainties and changes could cause actual results to vary from expectations. The Company undertakes no obligation to update the information or statements made in this Report.

 

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