Mellanox Technologies (MLNX)

outside of Israel when we filed the application for funding (and provided the application was approved based on the information disclosed in the application). We have indicated our intent to manufacture outside of Israel on some of our grant applications, and the OCS has approved the manufacture of our IC products outside of Israel, subject to our undertaking to pay the OCS royalties from the sales of these products up to 120% of the amount of OCS funds granted. The manufacturing of our IC products outside of Israel, including those products manufactured by TSMC and ASE, is in compliance with the terms of our grant applications and applicable provisions of Israeli law. Under applicable Israeli law, Israeli government consent is required to transfer technologies developed under projects funded by the government to third parties outside of Israel. Transfer of OCS-funded technologies outside of Israel is permitted with the approval of the OCS and in accordance with the restrictions and payment obligations set forth under Israeli law. Israeli law further specifies that both the transfer of know-how as well as the transfer of IP rights in such know-how are subject to the same restrictions. These restrictions do not apply to exports from Israel or the sale of products developed with these technologies.

 

 

We depend on third-party vendors to manufacture, package and
production test our products as we do not own or operate a
semiconductor fabrication, packaging or production testing
facility. By outsourcing manufacturing, we are able to avoid the
high cost associated with owning and operating our own
facilities. This allows us to focus our efforts on the design
and marketing of our products.

 

Manufacturing and Testing.  We use Taiwan
Semiconductor Manufacturing Company, or TSMC, to manufacture and
Advanced Semiconductor Engineering, or ASE, to assemble, package
and production test our IC products. We use Flextronics to
manufacture our standard adapter card products and custom
adapter cards and switch systems. We maintain close
relationships with our suppliers, which improves the efficiency
of our supply chain. We focus on mainstream processes,
materials, packaging and testing platforms, and have a
continuous technology assessment program in place to choose the
appropriate technologies to use for future products. We provide
all of our suppliers a
12-month
rolling forecast, and receive their confirmation that they are
able to accommodate our needs on a monthly basis. We have access
to on-line production reports that provide
up-to-date
status information of our products as they flow through the
manufacturing process. On a quarterly basis, we review
lead-time, yield enhancements and pricing with all of our
suppliers to obtain the optimal cost for our products.

 

Quality Assurance.  We maintain an ongoing
review of product manufacturing and testing processes. Our IC
products are subjected to extensive testing to assess whether
their performance exceeds the design specifications. We own an
in-house Teradyne Tiger IC tester which provides us with
immediate test data and generates characterization reports that
we make available to our customers. Our adapter cards and custom
switch system products are subject to similar levels of testing
and characterization, and are additionally tested for regulatory
agency certifications such as Safety and EMC (radiation test)
which are made available to our customers. We only use
components on these products that are qualified to be on our
approved vendor list.

 

Requirements Associated with OCS.  Israeli law
requires that we manufacture our products developed with
government grants in Israel unless we otherwise obtain approval
from the Office of the Chief Scientist of Israel’s Ministry
of Industry Trade and Labor, or the OCS. This approval, if
provided, is generally conditioned on an increase in the total
amount to be repaid to the OCS, ranging from 120% to 300% of the
amount of funds granted. The specific increase would depend on
the extent of the manufacturing to be conducted outside of
Israel. The restriction on manufacturing outside of Israel does
not apply to the extent that we disclosed our plans to
manufacture

outside of Israel when we filed the application for funding (and
provided the application was approved based on the information
disclosed in the application). We have indicated our intent to
manufacture outside of Israel on some of our grant applications,
and the OCS has approved the manufacture of our IC products
outside of Israel, subject to our undertaking to pay the OCS
royalties from the sales of these products up to 120% of the
amount of OCS funds granted. The manufacturing of our IC
products outside of Israel, including those products
manufactured by TSMC and ASE, is in compliance with the terms of
our grant applications and applicable provisions of Israeli law.
Under applicable Israeli law, Israeli government consent is
required to transfer technologies developed under projects
funded by the government to third parties outside of Israel.
Transfer of OCS-funded technologies outside of Israel is
permitted with the approval of the OCS and in accordance with
the restrictions and payment obligations set forth under Israeli
law. Israeli law further specifies that both the transfer of
know-how as well as the transfer of IP rights in such know-how
are subject to the same restrictions. These restrictions do not
apply to exports from Israel or the sale of products developed
with these technologies.

 

 

We depend on third-party vendors to manufacture, package and
production test our products as we do not own or operate a
semiconductor fabrication, packaging or production testing
facility. By outsourcing manufacturing, we are able to avoid the
high cost associated with owning and operating our own
facilities. This allows us to focus our efforts on the design
and marketing of our products.

 

Manufacturing and Testing.  We use Taiwan
Semiconductor Manufacturing Company, or TSMC, to manufacture and
Advanced Semiconductor Engineering, or ASE, to assemble, package
and production test our IC products. We use Flextronics to
manufacture our standard adapter card products and custom
adapter cards and switch systems. We maintain close
relationships with our suppliers, which improves the efficiency
of our supply chain. We focus on mainstream processes,
materials, packaging and testing platforms, and have a
continuous technology assessment program in place to choose the
appropriate technologies to use for future products. We provide
all of our suppliers a
12-month
rolling forecast, and receive their confirmation that they are
able to accommodate our needs on a monthly basis. We have access
to on-line production reports that provide
up-to-date
status information of our products as they flow through the
manufacturing process. On a quarterly basis, we review
lead-time, yield enhancements and pricing with all of our
suppliers to obtain the optimal cost for our products.

 

Quality Assurance.  We maintain an ongoing
review of product manufacturing and testing processes. Our IC
products are subjected to extensive testing to assess whether
their performance exceeds the design specifications. We own an
in-house Teradyne Tiger IC tester which provides us with
immediate test data and generates characterization reports that
we make available to our customers. Our adapter cards and custom
switch system products are subject to similar levels of testing
and characterization, and are additionally tested for regulatory
agency certifications such as Safety and EMC (radiation test)
which are made available to our customers. We only use
components on these products that are qualified to be on our
approved vendor list.

 

Requirements Associated with OCS.  Israeli law
requires that we manufacture our products developed with
government grants in Israel unless we otherwise obtain approval
from the Office of the Chief Scientist of Israel’s Ministry
of Industry Trade and Labor, or the OCS. This approval, if
provided, is generally conditioned on an increase in the total
amount to be repaid to the OCS, ranging from 120% to 300% of the
amount of funds granted. The specific increase would depend on
the extent of the manufacturing to be conducted outside of
Israel. The restriction on manufacturing outside of Israel does
not apply to the extent that we disclosed our plans to
manufacture

outside of Israel when we filed the application for funding (and
provided the application was approved based on the information
disclosed in the application). We have indicated our intent to
manufacture outside of Israel on some of our grant applications,
and the OCS has approved the manufacture of our IC products
outside of Israel, subject to our undertaking to pay the OCS
royalties from the sales of these products up to 120% of the
amount of OCS funds granted. The manufacturing of our IC
products outside of Israel, including those products
manufactured by TSMC and ASE, is in compliance with the terms of
our grant applications and applicable provisions of Israeli law.
Under applicable Israeli law, Israeli government consent is
required to transfer technologies developed under projects
funded by the government to third parties outside of Israel.
Transfer of OCS-funded technologies outside of Israel is
permitted with the approval of the OCS and in accordance with
the restrictions and payment obligations set forth under Israeli
law. Israeli law further specifies that both the transfer of
know-how as well as the transfer of IP rights in such know-how
are subject to the same restrictions. These restrictions do not
apply to exports from Israel or the sale of products developed
with these technologies.

 

 

We depend on third-party vendors to manufacture, package and
production test our products as we do not own or operate a
semiconductor fabrication, packaging or production testing
facility. By outsourcing manufacturing, we are able to avoid the
high cost associated with owning and operating our own
facilities. This allows us to focus our efforts on the design
and marketing of our products.

 

Manufacturing and Testing.  We use Taiwan
Semiconductor Manufacturing Company, or TSMC, to manufacture and
Advanced Semiconductor Engineering, or ASE, to assemble, package
and production test our IC products. We use Flextronics to
manufacture our standard adapter card products and custom
adapter cards and switch systems. We maintain close
relationships with our suppliers, which improves the efficiency
of our supply chain. We focus on mainstream processes,
materials, packaging and testing platforms, and have a
continuous technology assessment program in place to choose the
appropriate technologies to use for future products. We provide
all of our suppliers a
12-month
rolling forecast, and receive their confirmation that they are
able to accommodate our needs on a monthly basis. We have access
to on-line production reports that provide
up-to-date
status information of our products as they flow through the
manufacturing process. On a quarterly basis, we review
lead-time, yield enhancements and pricing with all of our
suppliers to obtain the optimal cost for our products.

 

Quality Assurance.  We maintain an ongoing
review of product manufacturing and testing processes. Our IC
products are subjected to extensive testing to assess whether
their performance exceeds the design specifications. We own an
in-house Teradyne Tiger IC tester which provides us with
immediate test data and generates characterization reports that
we make available to our customers. Our adapter cards and custom
switch system products are subject to similar levels of testing
and characterization, and are additionally tested for regulatory
agency certifications such as Safety and EMC (radiation test)
which are made available to our customers. We only use
components on these products that are qualified to be on our
approved vendor list.

 

Requirements Associated with OCS.  Israeli law
requires that we manufacture our products developed with
government grants in Israel unless we otherwise obtain approval
from the Office of the Chief Scientist of Israel’s Ministry
of Industry Trade and Labor, or the OCS. This approval, if
provided, is generally conditioned on an increase in the total
amount to be repaid to the OCS, ranging from 120% to 300% of the
amount of funds granted. The specific increase would depend on
the extent of the manufacturing to be conducted outside of
Israel. The restriction on manufacturing outside of Israel does
not apply to the extent that we disclosed our plans to
manufacture

outside of Israel when we filed the application for funding (and
provided the application was approved based on the information
disclosed in the application). We have indicated our intent to
manufacture outside of Israel on some of our grant applications,
and the OCS has approved the manufacture of our IC products
outside of Israel, subject to our undertaking to pay the OCS
royalties from the sales of these products up to 120% of the
amount of OCS funds granted. The manufacturing of our IC
products outside of Israel, including those products
manufactured by TSMC and ASE, is in compliance with the terms of
our grant applications and applicable provisions of Israeli law.
Under applicable Israeli law, Israeli government consent is
required to transfer technologies developed under projects
funded by the government to third parties outside of Israel.
Transfer of OCS-funded technologies outside of Israel is
permitted with the approval of the OCS and in accordance with
the restrictions and payment obligations set forth under Israeli
law. Israeli law further specifies that both the transfer of
know-how as well as the transfer of IP rights in such know-how
are subject to the same restrictions. These restrictions do not
apply to exports from Israel or the sale of products developed
with these technologies.

 

technology assessment program in place to choose the appropriate technologies to use for future products. We provide all of our suppliers a 12-month rolling forecast, and receive their confirmation that they are able to accommodate our needs on a monthly basis. We have access to on-line production reports that provide up-to-date status information of our products as they flow through the manufacturing process. On a quarterly basis, we review lead-time, yield enhancements and pricing with all of our suppliers to obtain the optimal cost for our products.

 

Quality Assurance.  We maintain an ongoing review of product manufacturing and testing processes. Our IC products are subjected to extensive testing to assess whether their performance exceeds the design specifications. We own an in-house Teradyne Tiger IC tester which provides us with immediate test data and generates of characterization reports that we make available to our customers. Our adapter cards and custom switch system products are subject to similar levels of testing and characterization, and are additionally tested for regulatory agency certifications such as Safety and EMC (radiation test) which are made available to our customers. We only use components on these products that are qualified to be on our approved vendor list.

 

Requirements Associated with OCS.  Israeli law requires that we manufacture our products developed with government grants in Israel unless we otherwise obtain approval from the Office of the Chief Scientist of Israel’s Ministry of Industry Trade and Labor, or the OCS. This approval, if provided, is generally conditioned on an increase in the total amount to be repaid to the OCS, ranging from 120% to 300% of the amount of funds granted. The specific increase would depend on the extent of the manufacturing to be conducted outside of Israel. The restriction on manufacturing outside of Israel does not apply to the extent that we disclosed our plans to manufacture outside of Israel when we filed the application for funding (and provided the application was approved based on the information disclosed in the application). We have indicated our intent to manufacture outside of Israel on some of our grant applications, and the OCS has approved the manufacture of our IC products outside of Israel, subject to our undertaking to pay the OCS royalties from the sales of these products up to 120% of the amount of OCS funds granted. The manufacturing of our IC products outside of Israel, including those products manufactured by TSMC and ASE, is in compliance with the terms of our grant applications and applicable provisions of Israeli law. Under applicable Israeli law, Israeli government consent is required to transfer to Israeli third parties technologies developed under projects funded by the government. Transfer of OCS-funded technologies outside of Israel is permitted with the approval of the OCS and in accordance with the restrictions and payment obligations set forth under Israeli law. Israeli law further specifies that both the transfer of know-how as well as the transfer of IP rights in such know-how are subject to the same restrictions. These restrictions do not apply to exports from Israel or the sale of products developed with these technologies.

 

 

We depend on third-party vendors to manufacture, package and
production test our products as we do not own or operate a
semiconductor fabrication, packaging or production testing
facility. By outsourcing manufacturing, we are able to avoid the
high cost associated with owning and operating our own
facilities. This allows us to focus our efforts on the design
and marketing of our products.

 

Manufacturing and Testing.  We use Taiwan
Semiconductor Manufacturing Company, or TSMC, to manufacture and
Advanced Semiconductor Engineering, or ASE, to assemble, package
and production test our IC products. We use Flextronics to
manufacture our standard adapter card products and custom
adapter cards and switch systems. We maintain close
relationships with our suppliers, which improves the efficiency
of our supply chain. We focus on mainstream processes,
materials, packaging and testing platforms, and have a
continuous

technology assessment program in place to choose the appropriate
technologies to use for future products. We provide all of our
suppliers a
12-month
rolling forecast, and receive their confirmation that they are
able to accommodate our needs on a monthly basis. We have access
to on-line production reports that provide
up-to-date
status information of our products as they flow through the
manufacturing process. On a quarterly basis, we review
lead-time, yield enhancements and pricing with all of our
suppliers to obtain the optimal cost for our products.

 

Quality Assurance.  We maintain an ongoing
review of product manufacturing and testing processes. Our
IC products are subjected to extensive testing to assess
whether their performance exceeds the design specifications. We
own an in-house Teradyne Tiger IC tester which provides us with
immediate test data and generates of characterization reports
that we make available to our customers. Our adapter cards and
custom switch system products are subject to similar levels of
testing and characterization, and are additionally tested for
regulatory agency certifications such as Safety and EMC
(radiation test) which are made available to our customers. We
only use components on these products that are qualified to be
on our approved vendor list.

 

Requirements Associated with OCS.  Israeli law
requires that we manufacture our products developed with
government grants in Israel unless we otherwise obtain approval
from the Office of the Chief Scientist of Israel’s Ministry
of Industry Trade and Labor, or the OCS. This approval, if
provided, is generally conditioned on an increase in the total
amount to be repaid to the OCS, ranging from 120% to 300% of the
amount of funds granted. The specific increase would depend on
the extent of the manufacturing to be conducted outside of
Israel. The restriction on manufacturing outside of Israel does
not apply to the extent that we disclosed our plans to
manufacture outside of Israel when we filed the application for
funding (and provided the application was approved based on the
information disclosed in the application). We have indicated our
intent to manufacture outside of Israel on some of our grant
applications, and the OCS has approved the manufacture of our IC
products outside of Israel, subject to our undertaking to pay
the OCS royalties from the sales of these products up to 120% of
the amount of OCS funds granted. The manufacturing of our IC
products outside of Israel, including those products
manufactured by TSMC and ASE, is in compliance with the terms of
our grant applications and applicable provisions of Israeli law.
Under applicable Israeli law, Israeli government consent is
required to transfer to Israeli third parties technologies
developed under projects funded by the government. Transfer of
OCS-funded technologies outside of Israel is permitted with the
approval of the OCS and in accordance with the restrictions and
payment obligations set forth under Israeli law. Israeli law
further specifies that both the transfer of know-how as well as
the transfer of IP rights in such know-how are subject to the
same restrictions. These restrictions do not apply to exports
from Israel or the sale of products developed with these
technologies.

 

 

Quality Assurance.  We maintain an ongoing review of product manufacturing and testing processes. Our IC products are subjected to extensive testing to assess whether their performance exceeds the design specifications. We own an in-house Teradyne Tiger IC tester which provides us with immediate test data and generation of characterization reports that we make available to our customers. Our adapter cards and custom switch system products are subject to similar levels of testing and characterization, and are additionally tested for regulatory agency certifications such as Safety and EMC (radiation test) which are made available to our customers. We only use components on these products that are qualified to be on our approved vendor list.

 

Requirements Associated with OCS.  Israeli law requires that we manufacture our products developed with government grants in Israel unless we otherwise obtain approval from the Office of the Chief Scientist of Israel’s Ministry of Industry Trade and Labor, or the OCS. This approval, if provided, is generally conditioned on an increase in the total amount to be repaid to the OCS, ranging from 120% to 300% of the amount of funds granted. The specific increase would depend on the extent of the manufacturing to be conducted outside of Israel. The restriction on manufacturing outside of Israel does not apply to the extent that we disclosed our plans to manufacture outside of Israel when we filed the application for funding (and provided the application was approved based on the information disclosed in the application). We have indicated our intent to manufacture outside of Israel on some of our grant applications, and the OCS has approved the manufacture of our IC products outside of Israel, subject to our undertaking to pay the OCS royalties from the sales of these products up to 120% of the amount of OCS funds granted. The manufacturing of our IC products outside of Israel, including those products manufactured by TSMC and ASE, is in compliance with the terms of our grant applications and applicable provisions of Israeli law. Under applicable Israeli law, Israeli government consent is required to transfer to Israeli third parties technologies developed under projects funded by the government. Transfer of OCS-funded technologies outside of Israel is permitted with the approval of the OCS and in accordance with the restrictions and payment obligations set forth under Israeli law. Israeli law further specifies that both the transfer of know-how as well as the transfer of IP rights in such know-how are subject to the same restrictions. These restrictions do not apply to exports from Israel or the sale of products developed with these technologies.