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Conflict Minerals Policy

Changzhou Universe Star Electronics Manufacturing Co., Ltd.'s Policy on the Prohibition of the Use of Conflict Minerals

Changzhou Universe Star Electronics Manufacturing Co., Ltd. will implement a policy prohibiting the use of minerals from conflict regions. This policy applies to the entire product production process, including raw materials and parts.

1.1、Definition of Conflict Minerals

Conflict minerals are industrial minerals originating from conflict-affected and high-risk areas in the Democratic Republic of Congo and neighboring countries. These minerals are used as key raw materials in parts for products such as automobiles, mobile phones, and PCs. Specific groups control the distribution channels of these minerals, and to maintain their power, they ruthlessly violate human rights, using child labor, sexual violence, and murder. The profits from these activities fund rebel groups, creating a vicious cycle of conflict. Because of this, companies involved in the distribution or use of these minerals have faced criticism. The Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States, along with global cooperation, has increased pressure to ban the use of conflict minerals.

 

1.2、Types of Conflict Minerals

Tantalum (Ta), Tungsten (W), Tin (Sn), Gold (Au), Cobalt (Co), Mica.

 

1.3、Conflict Mineral Restrictions

•The U.S. Securities and Exchange Commission has enacted legislation prohibiting the use of four major minerals from conflict regions in Africa.

•In June 2012, an order prohibiting the use of conflict minerals was established, including the obligation to report and disclose information on the origin and use of minerals used in products. This restriction applies to companies listed in the United States, but many partner companies, parts suppliers, and contract manufacturers that conduct business with these U.S. companies must also investigate the use of minerals and comply with these restrictions as the prohibition on the use of conflict minerals is promoted.

 

1.4、Changzhou Universe Star Electronics Manufacturing Co., Ltd.'s Response

•After establishing a policy prohibiting the use of conflict minerals, we require all partner companies to agree to and comply with this policy.

•We use the EICC Conflict Minerals Questionnaire to investigate the implementation of this policy by our partner companies to ensure that they prohibit the use of conflict minerals.