<SEC-DOCUMENT>0001437749-18-010960.txt : 20180531
<SEC-HEADER>0001437749-18-010960.hdr.sgml : 20180531
<ACCEPTANCE-DATETIME>20180530185132
ACCESSION NUMBER:		0001437749-18-010960
CONFORMED SUBMISSION TYPE:	SD
PUBLIC DOCUMENT COUNT:		2
<RULE>
<RULE-NAME>13p-1
<ITEM>
<ITEM-NUMBER>1.01
<ITEM-PERIOD>20171231
</ITEM>
<ITEM>
<ITEM-NUMBER>1.02
<ITEM-PERIOD>20171231
</ITEM>
</RULE>
FILED AS OF DATE:		20180531
DATE AS OF CHANGE:		20180530

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PDF SOLUTIONS INC
		CENTRAL INDEX KEY:			0001120914
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
		IRS NUMBER:				251701361
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SD
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-31311
		FILM NUMBER:		18869559

	BUSINESS ADDRESS:	
		STREET 1:		333 WEST SAN CARLOS STREET
		STREET 2:		SUITE 700
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95110
		BUSINESS PHONE:		4082807900

	MAIL ADDRESS:	
		STREET 1:		333 WEST SAN JOSE STREET
		STREET 2:		SUITE 700
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95110
</SEC-HEADER>
<DOCUMENT>
<TYPE>SD
<SEQUENCE>1
<FILENAME>pdfs20180529_sd.htm
<DESCRIPTION>FORM SD
<TEXT>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">UNITED STATES</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">SECURITIES AND EXCHANGE COMMISSION</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">WASHINGTON, D.C. 20549</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">__________</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">FORM SD</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">SPECIALIZED DISCLOSURE REPORT</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" style="width:100%;text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt;">

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			<td colspan="3" style="vertical-align:top;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">PDF SOLUTIONS, INC.</p>
			</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Exact Name of Registrant as Specified in its Charter)</p>
			</td>
		</tr>
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			<td colspan="3" style="vertical-align:top;width:100%;">&nbsp;</td>
		</tr>
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			<td style="vertical-align:top;width:33.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Delaware</p>
			</td>
			<td style="vertical-align:top;width:33.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">000-31311</p>
			</td>
			<td style="vertical-align:top;width:33.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">25-1701361</p>
			</td>
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			<td style="vertical-align:top;width:33.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(State or Other</p>
			</td>
			<td style="vertical-align:top;width:33.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Commission File Number)</p>
			</td>
			<td style="vertical-align:top;width:33.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(IRS Employer</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Jurisdiction of</p>
			</td>
			<td style="vertical-align:top;width:33.3%;">&nbsp;</td>
			<td style="vertical-align:top;width:33.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Identification No.)</p>
			</td>
		</tr>
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			<td style="vertical-align:top;width:33.3%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Incorporation)</p>
			</td>
			<td style="vertical-align:top;width:33.3%;">&nbsp;</td>
			<td style="vertical-align:top;width:33.3%;">&nbsp;</td>
		</tr>
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			<td colspan="3" style="vertical-align:top;width:100%;">&nbsp;</td>
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			<td colspan="3" style="vertical-align:top;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">333 West San Carlos Street, Suite 1000</p>
			</td>
		</tr>
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			<td colspan="3" style="vertical-align:top;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">San Jose CA 95110</p>
			</td>
		</tr>
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			<td colspan="3" style="vertical-align:top;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Address of Principal Executive Offices) (Zip Code)</p>
			</td>
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			<td colspan="3" style="vertical-align:top;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Gregory C. Walker (408) 280-7900</p>
			</td>
		</tr>
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			<td colspan="3" style="vertical-align:top;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Name and telephone number, including area code, of the person to contact</p>
			</td>
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			<td colspan="3" style="vertical-align:top;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">in connection with this report)</p>
			</td>
		</tr>

</table>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" style="margin-left:0.1%;width:99.9%;text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt;">

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Check the appropriate box to indicate the rule pursuant to which this form is being filed, and provide the period to which the information in this form applies:</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">\x\ Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2017.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

<div id="PGBK" style="width: 100%; margin-left: 0pt; margin-right: 0pt">
<div id="PGNUM" style="text-align: center; width: 100%">&nbsp;</div>

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<div id="PGHDR" style="text-align: left; width: 100%">&nbsp;</div>
</div>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Item 1.01. Conflict Minerals Disclosure and Report</b></p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">PDF Solutions enables customers to reduce the time to market of integrated circuits (&ldquo;ICs&rdquo;), lower the cost of IC design and manufacturing and improve profitability. The Company has developed proprietary hardware and software and provides services that target the entire systems value chain, which is a term used to mean the activities from technology development and the design of a semiconductor product through volume manufacturing of devices and subsequent system assembly and test. PDF Solutions&rsquo; products and services consist of proprietary test structures and electrical test systems, physical intellectual property, enterprise platform software and professional services. The Company&rsquo;s Characterization Vehicle<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>(CV<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>) electrical test chip infrastructure provides core modeling capabilities, and is used by more leading manufacturers than any other test chips in the industry. The Design-for-Inspection<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;">&trade;</font> solution includes the proprietary eProbe<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;e-beam tool and extends the Company&rsquo;s electrical characterization technologies into the e-beam measurement of extremely dense test structures, or DFI&trade; cells, across an entire fabrication process. Proprietary Template<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;">&trade;</font> layout patterns for standard cell libraries optimize area, performance, and manufacturability for designing IC products. The Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>platform for big data unlocks relevant, actionable information buried in wafer fabrication, process control and test data through key components: Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;Yield, Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;Control, Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;Test, Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;ALPS, and Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;Char. The Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;platform is available either on-premise or via software as a service (SaaS).</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">This Specialized Disclosure Form (&ldquo;Form SD&rdquo;) and a copy of PDF&rsquo;s Conflict Minerals Report (filed as Exhibit 1.01 hereto) are being posted to the publicly available Internet site <u><i>www.pdf.com</i></u> upon the filing of this Form SD.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Item 1.02 Exhibits </b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">PDF Solutions&rsquo; Conflict Minerals Report is attached hereto as Exhibit 1.01.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Item 2.01. Exhibits</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:27pt;">The following exhibit is filed as part of this report:</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:27pt;">Exhibit 1.01 &ndash; Conflict Minerals Report as required by Items 1.01 and 1.02 of this Form.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:27pt;">&nbsp;</p>

<div id="PGBK" style="width: 100%; margin-left: 0pt; margin-right: 0pt">
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<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the duly authorized undersigned.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

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			<td style="vertical-align: middle; width: 50%;">&nbsp;</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">PDF Solutions, Inc.</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Date: May 30, 2018</p>
			</td>
			<td style="vertical-align: middle; width: 2%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">By:</p>
			</td>
			<td style="vertical-align: middle; width: 48%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><u>/s/ Gregory C. Walker</u>&nbsp;</p>
			</td>
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			<td style="vertical-align: middle; width: 50%;">&nbsp;</td>
			<td style="vertical-align: middle; width: 2%;">&nbsp;</td>
			<td style="vertical-align: middle; width: 48%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Gregory C. Walker</p>
			</td>
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			<td style="vertical-align: middle; width: 2%;">&nbsp;</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">VP, Finance and CFO</p>
			</td>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>
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<DOCUMENT>
<TYPE>EX-1.01
<SEQUENCE>2
<FILENAME>ex_115581.htm
<DESCRIPTION>EXHIBIT 1.01
<TEXT>
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	<meta charset="utf-8"><meta name="format-detection" content="telephone=no"/>
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<p style="margin-bottom: 0px; text-align: right; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt"><b>Exhibit 1.01</b></font></p>

<p style="margin-bottom: 0px; text-align: left; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:center;"><b>Conflict Minerals Report of PDF Solutions, Inc.</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:center;"><b>in Accordance with Rule 13p-1 under the Securities Exchange Act of 1934</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">This is the Conflict Minerals Report of PDF Solutions, Inc. (&ldquo;PDF Solutions&rdquo; or the &ldquo;Company&rdquo;) for calendar year 2017 in accordance with Rule 13p-1 (&ldquo;Rule 13p-1&rdquo;) under the Securities Exchange Act of 1934 (the &ldquo;1934 Act&rdquo;). Please refer to Rule 13p-1, Form SD and the 1934 Act Release No. 34-67716 for definitions to the terms used in this Report, unless otherwise defined herein.</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">PDF Solutions enables customers to reduce the time to market of integrated circuits (&ldquo;ICs&rdquo;), lower the cost of IC design and manufacturing and improve profitability. The Company has developed proprietary hardware and software and provides services that target the entire systems value chain, which is a term used to mean the activities from technology development and the design of a semiconductor product through volume manufacturing of devices and subsequent system assembly and test. PDF Solutions&rsquo; products and services consist of proprietary test structures and electrical test systems, physical intellectual property, enterprise platform software and professional services. The Company&rsquo;s Characterization Vehicle<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>(CV<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>) electrical test chip infrastructure provides core modeling capabilities, and is used by more leading manufacturers than any other test chips in the industry. The Design-for-Inspection<sup><font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;">&trade;</font></sup> solution includes the proprietary eProbe<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;e-beam tool and extends the Company&rsquo;s electrical characterization technologies into the e-beam measurement of extremely dense test structures, or DFI<sup><font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;">&trade;</font></sup> cells, across an entire fabrication process. Proprietary Template<sup><font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;">&trade;</font></sup> layout patterns for standard cell libraries optimize area, performance, and manufacturability for designing IC products. The Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>platform for big data unlocks relevant, actionable information buried in wafer fabrication, process control and test data through key components: Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;Yield, Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;Control, Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;Test, Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;ALPS, and Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;&ndash;Char. The Exensio<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>&reg;</sup></font>&nbsp;platform is available either on-premise or via software as a service (SaaS).</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><b>Due Diligence (Instructions 1.01(c)(1))</b></p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><u>Overview</u>: In accordance with the Rule 13p-1, PDF Solutions first undertook due diligence to determine whether Conflict Minerals were part of, or used in the manufacture of, any of its products.<font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>1</sup></font> It was determined that tantalum, gold and tin are necessary to the functionality and production of the Company&rsquo;s pdFasTest&reg; testers and eProbe&reg; tools (&ldquo;In-Scope Products&rdquo;). Accordingly, the Company similarly to the prior year, proceeded with a due diligence process based on the internationally recognized due diligence framework that was developed by the Organization for Economic Cooperation and Development as part of its &ldquo;Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas&rdquo; (&ldquo;<b>OECD Guidance</b>&rdquo;) and the Company&rsquo;s Conflict Minerals Policy adopted in 2014, which included:&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">&nbsp;</p>

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			<td style="vertical-align: middle; width: 3%;">&nbsp;</td>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&#9679;</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Reviewing and assessing risk in the supply chain; and</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Adopting a strategy to continue responding to risks in the supply chain, including implementation of internal measures to strengthen Company engagement with suppliers, reporting risk management findings and implementing the risk management plan measures to exercise due diligence on the source and chain of custody of those conflict minerals.</p>
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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><font style="font-family:'Times New Roman',Times,Serif;font-size:8pt;"><sup>1</sup></font> Paragraph 1.01(d)(3) of the Rule 13p-1 instructions for Form SD characterizes Conflict Minerals as: (i) columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives, which are limited to tantalum, tin, and tungsten, unless the Secretary of State determines that additional derivatives are financing conflict in the Democratic Republic of the Congo or an adjoining country; or (ii) any other mineral or its derivatives determined by the Secretary of State to be financing conflict in the Democratic Republic of the Congo or an adjoining country.&nbsp;</p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><u>Work with Suppliers</u>: In reviewing and assessing risk in the supply chain and implementing measures to strengthen engagement with suppliers and exercising due diligence on the source and chain of custody of the Conflict Minerals, PDF Solutions conducted a reasonable country of origin inquiry to determine whether the Conflict Minerals included in or used in the manufacture of the In-Scope Products in 2017 originated in the Democratic Republic of Congo or an adjoining country (&ldquo;Covered Country&rdquo;). This inquiry included contacting suppliers of the parts that may contain Conflict Minerals, except for a few large suppliers (U.S. public companies whose statements containing relevant information are available on their websites), and asking them to provide information on the Conflict Minerals contained in each of the parts supplied by that supplier, in particular, the source of the Conflict Minerals, including smelter/refinery information and location of source mines. Each supplier was asked to complete the Responsible Business Alliance Global e-Sustainability Initiative Conflict Minerals Reporting Template.</p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">PDF Solutions followed up with the unresponsive suppliers. Some of the suppliers provided their Conflict Mineral Policy to the Company and/or reported that Conflict Minerals were not used by such suppliers. To the extent certain suppliers did not respond to the survey or did not have a policy available to the public, PDF Solutions continues to follow-up with them.</p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><u>Conclusion</u>: Following a reasonable country of origin inquiry and subsequent due diligence, the Company cannot determine whether or not the In-Scope Products qualifies as DRC conflict free.</p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><b>Product Description and Related Matters (Instructions 1.01(c)(2))</b></p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><u>Description of In-Scope Products</u>: The In-Scope Products are PDF Solutions&rsquo; pdFasTest&reg; testers and related systems and eProbe&reg; e-beam tools.</p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><u>Information About Country of Origin of Necessary Conflict Minerals Used in the In-Scope Products</u>: While PDF Solutions has conducted a thorough due diligence process and endeavored to work closely with its suppliers to survey the supply chain (as described above), we were not able to determine with reasonable certainty the country of origin of the Conflict Minerals used in In-Scope Products.</p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><u>Information About Efforts to Determine Mine or Location of Origin</u>: The description of PDF Solutions&rsquo; due diligence exercise set forth above under the heading &ldquo;Due Diligence&rdquo; covers the Company&rsquo;s efforts to determine the mine or location of origin with the greatest possible specificity.</p>
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