Crucial 2014 Annual Report Download - page 22

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20
Compliance with new regulations regarding the use of conflict minerals could limit the supply and increase the cost of
certain metals used in manufacturing our products.
Increased focus on environmental protection and social responsibility initiatives led to the passage of Section 1502 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act") and its implementing SEC
regulations. The Dodd-Frank Act imposes new supply chain diligence and disclosure requirements for certain manufacturers of
products containing specific minerals that may originate in or near the Democratic Republic of the Congo (the "DRC") and
finance or benefit local armed groups. These "conflict minerals" are commonly found in materials used in the manufacture of
semiconductors. The implementation of these new regulations may limit the sourcing and availability of some of these
materials. This in turn may affect our ability to obtain materials necessary for the manufacture of our products in sufficient
quantities and may affect related material pricing. Some of our customers may elect to disqualify us as a supplier if we are
unable to verify that our products are DRC conflict free.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our corporate headquarters are located in Boise, Idaho. The following is a summary of our principal facilities as of
August 28, 2014:
Location Principal Operations
Boise, Idaho R&D, including wafer fabrication; reticle manufacturing; test and module assembly
Lehi, Utah Wafer fabrication
Manassas, Virginia Wafer fabrication
Singapore Three wafer fabrication facilities and a test, assembly and module assembly facility
Aguadilla, Puerto Rico Module assembly and test
Xi’an, China Module assembly and test
Muar, Malaysia Assembly and test
Taichung City, Taiwan Wafer fabrication
Hiroshima, Japan Wafer fabrication
Akita, Japan Module assembly and test
Substantially all of the capacity of the facilities listed above is fully utilized. Our Inotera joint venture has a 300mm wafer
fabrication facility in Kueishan, Taiwan. Under our supply agreement with Inotera, we purchase substantially all of the output
of Inotera. We also own and lease a number of other facilities in locations throughout the world that are used for design,
research and development, and sales and marketing activities.
In December 2013, we sold our 200mm wafer fabrication equipment in Kiryat Gat, Israel to Intel and terminated the
related facility lease with Intel. Intel manufactured wafers for us at the Kiryat Gat facility through 2014 through a series of
arrangements.
Our facility in Lehi is owned and operated by our IMFT joint venture with Intel. (See "Part II – Item 8. Financial
Statements and Supplementary Data – Notes to Consolidated Financial Statements – Equity – Noncontrolling Interests in
Subsidiaries – IMFT" note.)
We believe that our existing facilities are suitable and adequate for our present purposes. We do not identify or allocate
assets by operating segment. (See "Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated
Financial Statements – Geographic Information" note.)