Semiconductor firms under investor scrutiny for alleged links to violations of international law
"Investors step up engagement with semiconductor firms over Russian weapon systems", 30 August 2023
Evidence that Western-made microelectronics are being used in Russian weapons systems has prompted a ramp-up in investor engagement with manufacturers.
...[S]hareholders at Microchip Technologies Inc voted on a proposal calling on the semiconductor firm's board of directors to commission an independent third-party report on its due diligence process to "determine whether its customers' use of its products contribute or are linked to violations of international law"...
...More broadly, investors are keen to ensure that firms have sufficient risk mitigation and due diligence processes in relation to conflict-afflicted and high-risk areas (CAHRA)...
...Among the firms identified as manufacturers of the "most prevalent" components found in Russian systems were Texas Instruments, Microchip Technology Inc and Analong Devices Inc (ADI)...
...A spokesperson for Microchip told Responsible Investor (RI) that the firm does not support or condone the use of its products for applications for which they are not authorised, including actions by Russia against Ukraine, or any other military actions against civilians in conflict-affected areas. "In order not to participate in such harmful activities, we comply with trade restrictions and take care to maintain supply chain integrity using various methods."... The firm also ended relationships with Russian customers and distributors, and warned non-Russian customers and distributors not to ship into Russia...
...A spokesperson for ADI pointed to its statement on combating unauthorized resale for diversion of products, which said the firm is committed to complying with all applicable laws and regulations int he countries where it operates. "Following Russia's invasion of Ukraine, and in compliance with U.S. and EU sanctions, Analog Devices ceased business activities in Russia, and in the Russian-backed regions of Ukraine and Belarus, and promptly instructed all of our distributors to halt shipments of our products into these regions. Any post-sanctions shipment of our products is a direct violation of our policy and the result of an unauthorized resale or diversion of ADI products."...
...At the time of publication, Texas Instruments had not responded to Responsible Investor's requests for comment.