Exhibit 1.01 to GigOptix Form SD for the reporting period from January 1 to December 31, 2014
Conflict Minerals Report
Design of Conflict Minerals Program - Our conflict minerals program is in conformity with the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Second Edition, and related Supplements on Tin, Tantalum and Tungsten and on Gold (collectively, “OECD Guidance”), specifically as it relates to our position in the minerals supply chain as a “downstream” purchaser. Summarized below are the design components of our conflict minerals program as they relate to the five-step framework set forth in the OECD Guidance.
| I. | Establish strong company management systems |
| a. | Operate an internal “Conflict Minerals” team led by our Corporate Quality Department to implement our Conflict Minerals Sourcing Policy, which is posted on our website at www.gigoptix.com. Regularly review such implementation efforts with our Chief Executive Officer (“CEO”) and senior management. |
| b. | Implement a supply chain system of controls and transparency through the use of due diligence tools created by the Conflict-Free Sourcing Initiative (“CFSI”) which includes the Conflict Minerals Reporting Template (“CMRT”), a supply chain survey designed to identify the smelters and refiners that process the necessary conflict minerals contained in our product. |
| c. | Incorporate requirements related to conflict minerals in our standard template for supplier approval process so that current and future suppliers are obligated to comply with our policies on conflict minerals, including participation in a supply chain survey and related due diligence activities. |
| d. | Incorporate requirements related to conflict minerals in our standard template for supplier approval process so that current and future suppliers are obligated to comply with our policies on conflict minerals, including participation in a supply chain survey and related due diligence activities. |
| e. | Maintain records relating to our conflict minerals program in accordance with our record retention guidelines. |
| f. | Enable employees and suppliers to report any concerns relating to our conflict minerals program. |
| II. | Identify and assess risks in our supply chain |
| a. | Identify direct suppliers that supply products to GigOptix that may contain conflict minerals. |
| b. | Conduct a supply chain survey using the CMRT, requesting direct suppliers to identify smelters and refiners and country of origin of the conflict minerals in products they supply to GigOptix. |
| c. | Contact direct suppliers that do not respond to the supply chain survey by a specified date, requesting their responses. |
| d. | Compare smelters and refiners identified by the supply chain survey against the list of facilities that have received a “conflict free” designation from the Conflict Free Smelter Program (“CFSP”) or other independent third party audit program, which designations provide country of origin and due diligence information on the conflict minerals sourced by such facilities. |
| e. | Document country of origin information for the smelters and refiners identified by the supply chain survey. |
| III. | Design and implement a strategy to respond to identified risks |
| a. | Design and adopt a risk management plan that includes due diligence reviews of suppliers, smelters and refiners that may be sourcing or processing conflict minerals from the Covered Countries which may not be from recycled or scrap sources |
| b. | Implement a risk mitigation response plan to monitor and track suppliers, smelters and refiners identified as not meeting the requirements set forth in our Conflict Minerals Sourcing Policy or contractual requirements to determine their progress in meeting those requirements. |
| c. | Perform risk mitigation efforts to bring suppliers into conformity with our Conflict Minerals Sourcing Policy and contractual requirements, which efforts may include working with direct suppliers to consider an alternative source for the necessary conflict minerals. |
| d. | Provide progress reports to our CEO and senior management summarizing our risk mitigation efforts. |
| e. | When required by the Rule, obtain an independent private sector audit of this Report. |
| IV. | Support the development and implementation of independent third party audits of smelters’ and refiners’ sourcing |
| a. | Support development and implementation of due diligence practices and tools such as the CMRT through encouraging use of the tool throughout the supply chain. |
| b. | Support third party audits of supply chain by using the Smelter and Refiner lists as an integral part of our reporting. |
| V. | Report on supply chain due diligence |
| a. | Publicly communicate our Conflict Minerals Sourcing Policy on our company website at www.gigoptix.com |
| b. | Report annually on our supply chain due diligence activities by publicly filing with the SEC. |
Due Diligence
In October of 2012, GigOptix adopted the tools of the Electronic Industry Citizenship Coalition, Incorporated and Global e-Sustainability Initiative (EICC-GeSI) for conflict minerals. Our Conflict Minerals Policy was established and published on our company website at www.gigoptix.com.
GigOptix implemented the requirement on our entire supply chain to use the EICC-GeSI template to identify smelter and mining source information for the tin, tantalum, tungsten and gold in the items supplied to GigOptix. This information is required regardless of whether the supplier is subject to the SEC requirements directly.
We sent 92 letters to our entire Approved Vendors List (AVL) requesting the completed EICC-GeSI template in 2012. We learned that the conflict mineral reporting process does not apply to many of our vendors that provide services such as test or packaging that does not involve supplying any metals. We ended up with 58 responses which we combined into our company level reporting. We used this report, compiled in template Version 1 of the EICC-GeSI Conflict Minerals Reporting template, to respond to our customers which requested information from us.
In June of 2013, GigOptix updated to template Version 2.02. Version 2.02 enabled the EICC Smelter ID for most smelters to be readily available. This Smelter ID enables GigOptix to readily determine which smelters are “active” in the EICC-GeSI Conflict-Free Smelter Program (CFSP) and which ones are compliant Conflict-Free Smelters.
Active Smelters & Refiners
Smelters and refiners are identified as Active in the Conflict-Free Smelter Program once they submit a signed Agreement for the Exchange of Confidential Information (AECI) and Auditee Agreement contracts. If a smelter or refiner that has been identified as Active is deemed by the CFSP to not be progressing toward an audit, gap closure, or re-audit for more than 90 days, that smelter or refiner will be removed from the Active list. A company that is unresponsive for 45 days will be removed from the Active list.
Conflict-Free Smelters and Refiners
These lists includes the names, locations and links to conflict minerals policies of all smelters or refiners that are compliant with the relevant Conflict-Free Smelter Program assessment protocols. There is a separate list for tantalum, tin and tungsten smelters and gold refiners.
In December of 2013, when requested by customers, GigOptix segregated reporting at the product line level for our HX product line.
In January 2014, GigOptix began a complete recycle of the entire process to prepare for the SEC filing of the 2013 reporting period results. We assembled a team to review the entire AVL, categorize vendors that supply metals and identify vendors by GigOptix product line. This categorization enabled us to provide complete EICC-GeSI Conflict Minerals Reporting templates to our customers by product line.
100% of the 45 GigOptix vendors that supply metal have responded with completed EICC-GeSI templates by March 2014. GigOptix compiled all inputs into a company level template using EICC-GeSI Conflict Minerals Reporting template Version 2.03a.
As a result of our due diligence prior to 2015, GigOptix found no DRC conflict minerals in the supply chain, but less than 100% of the smelters and refiners were deemed compliant with the relevant Conflict-Free Smelter Program assessment protocols by the EICC-GeSI.
January 2015 began a new cycle for GigOptix to prepare for the SEC filing of the 2014 reporting period results. Building off of our prior experience, we assembled the team to again review the AVL. We eliminated 9 vendors from our list as we did not source from them in 2014. 100% of the 36 GigOptix vendors that supply metal responded with completed EICC-GeSI templates. GigOptix compiled all inputs into a company level template using EICC-GeSI Conflict Minerals Reporting template Version 3.02. Upgrading to the latest EICC-GeSI template version (Version 3.02) provided us with the most current information on compliant smelters. Again we categorized by product line enabling us to provide complete EICC-GeSI Conflict Minerals Reporting templates by product line to our customers that request our information.
As a result of our due diligence conducted in 2015, GigOptix has found no DRC conflict minerals in the supply chain, but less than 100% of the smelters and refiners have been deemed compliant with the relevant Conflict-Free Smelter Program assessment protocols by the EICC-GeSI.
Product Description
Since conflict minerals are necessary to the functionality or production of our products, and less than 100% of the smelters and refiners have been deemed compliant, we are required to provide a description of these products, the facilities used to process the necessary conflict minerals in those products, if known, the country of origin of the necessary conflict mineral in those products, if known, and the efforts to determine the mine or location of origin with the greatest possible specificity.
During this reporting period, we identified the following products that may contain necessary conflict minerals:
| · | 40Gb/s, 100Gb/s and 400Gb/s Drivers and TIAs for fiber-optic telecommunications and data-communications networks. |
| · | High performance MMIC solutions that enable next generation wireless microwave systems up to 90GHz. |
| · | Custom ASIC and Structured ASIC products. |
Facilities, country of origin and efforts to determine the mine or location of origin with the greatest possible specificity:
GigOptix required all of our supply chain to report all smelter and mining source information for the tin, tantalum, tungsten and gold in the items supplied to GigOptix. Since we have a multi-tiered supply chain, this required our vendors to flow the requirement through the chain until each smelter or refiner was identified.
Table 1 below lists the facilities which, to the extent known, processed the necessary conflict minerals in GigOptix products.
| Metal | Smelter or Refiner Facility Name |
| Gold | Advanced Chemical Company |
| Gold | Aida Chemical Industries Co. Ltd. |
| Gold | Allgemeine Gold-und Silberscheideanstalt A.G. |
| Gold | Almalyk Mining and Metallurgical Complex (AMMC) |
| Gold | AngloGold Ashanti Córrego do Sítio Minerção |
| Gold | Argor-Heraeus SA |
| Gold | Asahi Pretec Corporation |
| Gold | Asaka Riken Co Ltd |
| Gold | Atasay Kuyumculuk Sanayi Ve Ticaret A.S. |
| Gold | Aurubis AG |
| Gold | Bangko Sentral ng Pilipinas (Central Bank of the Philippines) |
| Gold | Boliden AB |
| Gold | C. Hafner GmbH + Co. KG |
| Gold | Caridad |
| Gold | CCR Refinery – Glencore Canada Corporation |
| Gold | Cendres + Métaux SA |
| Gold | Chimet S.p.A. |
| Gold | Chugai Mining |
| Gold | Codelco |
| Gold | Daejin Indus Co. Ltd |
| Gold | DaeryongENC |
| Gold | Do Sung Corporation |
| Gold | Dowa |
| Gold | Eco-System Recycling Co., Ltd. |
| Gold | FSE Novosibirsk Refinery |
| Gold | Guangdong Jinding Gold Limited |
| Gold | Heimerle + Meule GmbH |
| Gold | Heraeus Ltd. Hong Kong |
| Gold | Heraeus Precious Metals GmbH & Co. KG |
| Gold | Hunan Chenzhou Mining Group Co., Ltd. |
| Gold | Hwasung CJ Co. Ltd |
| Gold | Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited |
| Gold | Ishifuku Metal Industry Co., Ltd. |
| Gold | Istanbul Gold Refinery |
| Gold | Japan Mint |
| Gold | Jiangxi Copper Company Limited |
| Gold | Johnson Matthey Inc |
| Gold | Johnson Matthey Ltd |
| Gold | JSC Ekaterinburg Non-Ferrous Metal Processing Plant |
| Gold | JSC Uralelectromed |
| Gold | JX Nippon Mining & Metals Co., Ltd. |
| Gold | Kazzinc Ltd |
| Gold | Kennecott Utah Copper LLC |
| Gold | Kojima Chemicals Co., Ltd |
| Gold | Korea Metal Co. Ltd |
| Gold | Kyrgyzaltyn JSC |
| Gold | L' azurde Company For Jewelry |
| Gold | LS-NIKKO Copper Inc. |
| Gold | Materion |
| Gold | Matsuda Sangyo Co., Ltd. |
| Gold | Metalor Technologies (Hong Kong) Ltd |
| Gold | Metalor Technologies (Singapore) Pte. Ltd. |
| Gold | Metalor Technologies SA |
| Gold | Metalor USA Refining Corporation |
| Gold | Met-Mex Peñoles, S.A. |
| Gold | Mitsubishi Materials Corporation |
| Gold | Mitsui Mining and Smelting Co., Ltd. |
| Gold | Moscow Special Alloys Processing Plant |
| Gold | Nadir Metal Rafineri San. Ve Tic. A.Ş. |
| Gold | Navoi Mining and Metallurgical Combinat |
| Gold | Nihon Material Co. LTD |
| Gold | Ohio Precious Metals, LLC |
| Gold | OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet) |
| Gold | OJSC Kolyma Refinery |
| Gold | PAMP SA |
| Gold | Prioksky Plant of Non-Ferrous Metals |
| Gold | PT Aneka Tambang (Persero) Tbk |
| Gold | PX Précinox SA |
| Gold | Rand Refinery (Pty) Ltd |
| Gold | Rio Tinto Kennecott |
| Gold | Royal Canadian Mint |
| Gold | Royal Canadian Mint |
| Gold | Sabin Metal Corp. |
| Gold | SAMWON METALS Corp. |
| Gold | Schloetter Co Ltd |
| Gold | Schone Edelmetaal |
| Gold | SEMPSA Joyería Platería SA |
| Gold | Shandong Zhaojin Gold & Silver Refinery Co. Ltd |
| Gold | Shanghai Gold Exchange |
| Gold | So Accurate Group, Inc. |
| Gold | SOE Shyolkovsky Factory of Secondary Precious Metals |
| Gold | Solar Applied Materials Technology Corp. |
| Gold | Southern Copper Corporation |
| Gold | Sumitomo Metal Mining Co., Ltd. |
| Gold | Suzhou Xingrui Noble |
| Gold | Tanaka Kikinzoku Kogyo K.K. |
| Gold | The Great Wall Gold and Silver Refinery of China |
| Gold | The Refinery of Shandong Gold Mining Co. Ltd |
| Gold | Tokuriki Honten Co., Ltd |
| Gold | Tongling nonferrous Metals Group Co.,Ltd |
| Gold | Torecom |
| Gold | Umicore Brasil Ltda |
| Gold | Umicore SA Business Unit Precious Metals Refining |
| Gold | United Precious Metal Refining, Inc. |
| Gold | Valcambi SA |
| Gold | Western Australian Mint trading as The Perth Mint |
| Gold | YAMAMOTO PRECIOUS METAL CO., LTD. |
| Gold | Yokohama Metal Co Ltd |
| Gold | Yunnan Copper Industry Co Ltd |
| Gold | Zhongyuan Gold Smelter of Zhongjin Gold Corporation |
| Gold | Zijin Mining Group Co. Ltd |
| Tantalum | Changsha South Tantalum Niobium Co., Ltd. |
| Tantalum | Conghua Tantalum and Niobium Smeltry |
| Tantalum | Duoluoshan |
| Tantalum | Exotech Inc. |
| Tantalum | F&X Electro-Materials Ltd. |
| Tantalum | Global Advanced Metals Aizu |
| Tantalum | Global Advanced Metals Boyertown |
| Tantalum | Guangdong Zhiyuan New Material Co., Ltd. |
| Tantalum | H.C. Starck GmbH Goslar |
| Tantalum | H.C. Starck GmbH Laufenburg |
| Tantalum | H.C. Starck Hermsdorf GmbH |
| Tantalum | H.C. Starck Inc. |
| Tantalum | H.C. Starck Ltd. |
| Tantalum | H.C. Starck Smelting GmbH & Co.KG |
| Tantalum | Hengyang King Xing Lifeng New Materials Co., Ltd. |
| Tantalum | Hi-Temp |
| Tantalum | JiuJiang JinXin Nonferrous Metals Co., Ltd. |
| Tantalum | Jiujiang Tanbre Co., Ltd. |
| Tantalum | KEMET Blue Powder |
| Tantalum | King-Tan Tantalum Industry Ltd |
| Tantalum | LSM Brasil S.A. |
| Tantalum | Metallurgical Products India (Pvt.) Ltd. |
| Tantalum | Mineração Taboca S.A. |
| Tantalum | Mitsui Mining & Smelting |
| Tantalum | Molycorp Silmet A.S. |
| Tantalum | Ningxia Orient Tantalum Industry Co., Ltd. |
| Tantalum | Plansee SE Liezen |
| Tantalum | Plansee SE Reutte |
| Tantalum | RFH Tantalum Smeltry Co., Ltd |
| Tantalum | Shanghai Jiangxi Metals Co. Ltd |
| Tantalum | Solikamsk Magnesium Works OAO |
| Tantalum | Taki Chemicals |
| Tantalum | Tantalite Resources |
| Tantalum | Telex |
| Tantalum | Ulba |
| Tantalum | Zhuzhou Cement Carbide |
| Tin | Alpha |
| Tin | China Tin Group Co., Ltd. |
| Tin | CNMC (Guangxi) PGMA Co. Ltd. |
| Tin | Cooper Santa |
| Tin | CV Duta Putra Bangka |
| Tin | CV JusTindo |
| Tin | CV Makmur Jaya |
| Tin | CV Nurjanah |
| Tin | PT Prima Timah Utama |
| Tin | CV Serumpun Sebalai |
| Tin | CV United Smelting |
| Tin | EM Vinto |
| Tin | Fenix Metals |
| Tin | Minsur |
| Tin | Gejiu Kai Meng Industry and Trade LLC |
| Tin | Gejiu Non-Ferrous Metal Processing Co. Ltd. |
| Tin | Gejiu Zi-Li |
| Tin | Guangxi Huaxi Group Co.,Ltd |
| Tin | Huichang Jinshunda Tin Co. Ltd |
| Tin | Jean Goldschmidt International |
| Tin | Jiangxi Nanshan |
| Tin | Laibin Huaxi Smelting Co., Ltd |
| Tin | Linwu Xianggui Smelter Co |
| Tin | Magnu's Minerais Metais e Ligas LTDA |
| Tin | Malaysia Smelting Corporation (MSC) |
| Tin | Metallic Resources Inc |
| Tin | Metallo Chimique |
| Tin | Minmetals Ganzhou Tin Co. Ltd. |
| Tin | Nathan Trotter & Co.,Inc. |
| Tin | Novosibirsk Integrated Tin Works |
| Tin | O.M. Manufacturing (Thailand) Co., Ltd. |
| Tin | O.M. Manufacturing Philippines, Inc. |
| Tin | OMSA |
| Tin | Operaciones Metalurgica S.A. |
| Tin | Poongsan Corporation |
| Tin | PT Artha Cipta Langgeng |
| Tin | PT Babel Inti Perkasa |
| Tin | PT Bangka Kudai Tin |
| Tin | PT Bangka Putra Karya |
| Tin | PT Bangka Timah Utama Sejahtera |
| Tin | PT Bangka Tin Industry |
| Tin | PT Belitung Industri Sejahtera |
| Tin | PT Bukit Timah |
| Tin | PT Citralogam |
| Tin | PT DS Jaya Abadi |
| Tin | PT Eunindo Usaha Mandiri |
| Tin | PT Karimun Mining |
| Tin | PT Koba Tin |
| Tin | PT Mitra Stania Prima |
| Tin | PT Pelat Timah Nusantara Tbk |
| Tin | PT REFINED BANGKA TIN |
| Tin | PT Sariwiguna Binasentosa |
| Tin | PT Stanindo Inti Perkasa |
| Tin | PT Tambang Timah |
| Tin | PT Timah (Persero), Tbk |
| Tin | PT Tinindo Inter Nusa |
| Tin | Rui Da Hung |
| Tin | Soft Metais, Ltda. |
| Tin | Thaisarco |
| Tin | Tongding Metal Material Co.,Ltd. |
| Tin | White Solder Metalurgia e Mineração Ltda. |
| Tin | Yunnan Tin Company, Ltd. |
| Tin | Yunnan Chengfeng Non-ferrous Metals Co.,Ltd. |
| Tungsten | A.L.M.T. Corp. |
| Tungsten | Air Products |
| Tungsten | Chenzhou Diamond Tungsten Products Co., Ltd. |
| Tungsten | Chongyi Zhangyuan Tungsten Co., Ltd. |
| Tungsten | Dayu Weiliang Tungsten Co., Ltd. |
| Tungsten | Fujian Jinxin Tungsten Co., Ltd. |
| Tungsten | Ganzhou Huaxing Tungsten Products Co., Ltd. |
| Tungsten | Ganzhou Jiangwu Ferrotungsten Co., Ltd. |
| Tungsten | Ganzhou Non-ferrous Metals Smelting Co., Ltd. |
| Tungsten | Ganzhou Seadragon W & Mo Co., Ltd. |
| Tungsten | Global Tungsten & Powders Corp. |
| Tungsten | Golden Egret Special Allloy Coop. |
| Tungsten | Guangdong Xianglu Tungsten Co., Ltd. |
| Tungsten | H.C. Starck GmbH |
| Tungsten | Hitachi Metals, Ltd. |
| Tungsten | Hunan Chunchang Nonferrous Metals Co., Ltd. |
| Tungsten | Japan New Metals Co., Ltd. |
| Tungsten | Jiangxi Gan Bei Tungsten Co., Ltd. |
| Tungsten | Jiangxi Xinsheng Tungsten Industry Co., Ltd. |
| Tungsten | Kennametal Fallon |
| Tungsten | Kennametal Huntsville |
| Tungsten | Nanchang Cemented Carbide Limited Liability Company |
| Tungsten | Ninghua Xingluokeng Tungsten Mine Co., Ltd. |
| Tungsten | North American Tungsten Corporation Ltd. |
| Tungsten | Pobedit JSC |
| Tungsten | Tejing (Vietnam) Tungsten Co., Ltd. |
| Tungsten | Vietnam Youngsun Tungsten Industry Co., Ltd |
| Tungsten | Wolfram Bergbau und Hütten AG |
| Tungsten | Wolfram Company CJSC |
| Tungsten | Xiamen Tungsten (H.C.) Co., Ltd. |
| Tungsten | Xiamen Tungsten Co., Ltd. |
| Tungsten | Xinhai Rendan Shaoguan Tungsten Co., Ltd. |
| Tungsten | Zhuzhou Cemented Carbide Group Co Ltd |
Countries of origin of the conflict minerals these facilities process are believed to include: Australia, Austria, Belgium, Bolivia, Brazil, Canada, Chile, China, Ethiopia, Germany, Hong Kong, India, Indonesia, Japan, Malaysia, Mexico, Mozambique, Namibia, Perú, Poland, Portugal, Russia, Rwanda, Sierra Leone, Spain, Switzerland, Taiwan, Thailand, United States, Zimbabwe
Future Due Diligence Measures
During the reporting period for the calendar year ending December 31, 2015, we are continuing to engage in the activities described above in “Design of Conflict Minerals Program” and “Due Diligence.” In our efforts to attain a conflict-free supply chain for our products, we intend to continue to contact our suppliers and require our entire supply chain to identify smelter and mining source information for the tin, tantalum, tungsten and gold in the items supplied to GigOptix.
