Statement From Qualcomm on Supply Chain
SAN DIEGO, March 16, 2011
Qualcomm is deeply saddened by the devastating earthquake and tsunami that struck Japan last week. Our thoughts are with the people of Japan as they cope with the loss and destruction caused by this natural disaster.
Based on a review of our extended semiconductor supply chain, we do not foresee any significant impact in our ability to supply product to our customers due to the events in Japan. Qualcomm has multiple, geographically diverse sources for supply as well as production processes specifically designed to enable us to mitigate disruptions in our supply chain.
With regard to the availability of Bismaleimide Triazine (BT) resin, Qualcomm uses either BT-based or epoxy-based laminate materials in our chipset packages. To account for any potential disruption in BT supply, we believe our use of buffer stock and adjustments to our near term material mix will enable us to mitigate potential supply disruptions to our customer base.
We will continue to monitor this rapidly developing situation.
Except for the historical information contained herein, this release contains forward-looking statements that are subject to risks and uncertainties, including the scope and severity of the events that have occurred or could occur in Japan and in nearby regions, the effect of those events on supply chain vendors located in areas which are or may become subject to the aftermath of the events which occurred or could occur in Japan, the anticipated time it will take for the adverse events in Japan and any other affected regions to be satisfactorily addressed, the length of the time period of any disruption in the availability of BT resin on commercially satisfactory terms and volumes, the ability of the Company’s alternative supply chains to timely respond to any changes in production on commercially satisfactory terms and conditions, the size of the Company’s buffer stock in relation to the anticipated duration of the disruptions caused by the events in Japan, and changes in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year ended September 26, 2010, and most recent Form 10-Q. The Company undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.