How Intel Audits Conflict Minerals

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April 25 (Bloomberg) –- Intel Director of Supply Chain Carolyn Duran discusses conflict minerals and mapping the company’s supply chain. She speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg) Correction: A graphic was updated to fix a regional map. This report was originally published on April 25.)

You are watching "bloomberg west," where we focus on technology and the future of business.

I am emily chang i want to focus on elon musk speaking about the successful landing of a usable boost stage in the atlantic.

It was destroyed by high waves, but it bodes well for the ability.

I want to get back to peter cook in washington, our chief washington correspondent.

He has also had more news at this news conference, elon musk, announcing that spacex will legally challenge the contract awarded to you l.a., the partnership between lockheed martin and boeing, the consortium that launches military satellites into space.

They had a monopoly on that business.

Spacex is being considered by the air force for future contracts, but before they are certified and open to that competition, they are challenging the most recent contracts being awarded to ula.

They are protesting, as other contractors have the right to do in these instances, but they are taking a risk in the relationship with the air force going forward.

Elon musk has tried to challenge in the past but they were told they do not have the legal standing.

Now the question is do they have the legal standing, and grounds for protesting the contracts that have been awarded to ula going forward.

That is perhaps more news than that word of the reusable booster and the somewhat successful soft landing in the atlantic ocean.

Thank you, peter cook, for that update.

You have heard of conflict diamonds, but some of your favorite electronic devices might have the same issues -- laptops, game consoles, smartphones, they are made with a variety of precious metals and a handful have been designated as conflict minerals.

Cory johnson is back from new york.

This is a big deal.

Armed groups like in the democratic republic of the congo have earned millions trading the minerals that are at the heart of your smart phone like tin, tantalum, which restores electricity and battery life.

Gold is used in some of the connective wires.

The trade of those minerals is helping to finance armed conflicts all over the world.

Chip giant intel is becoming the first company ever to ship conflict-free.

Carolyn durant joins us now.

How do you even find out if they are conflict-free?

How can you audit all of that?

It is a challenge we have had and we have been tackling for the last five years.

First thing is to understand technically where they fit.

They are a technical supply company -- intel is a technical company and we make our processors, so the first up was straightforward.

Then comes the investigative reporting, understanding how to get down to the mind.

The supply chain did not know.

We did not know.

We went down the chain and found smelters, a place in the supply chain where you can do auditing from the mine to the smelter.

We have worked with other injuries -- industries to put an audit program in place.

I have never actually wondered before how you audit a smelter.

Tell me, what do you do?

We do it in three straps -- steps.

We want to make sure they care about the issue with a policy.

At the second is a mass balance -- the transitions over time, and how much mineral, ore, or recycled material came in and how much product they sold in understanding the scope of what came in and out.

If a smelter said they took in enough order to make 25 tons but they sold 40 tons, there would be an obvious gap.

Once you have the -- go ahead.

We have a map that shows the places you have to trail through in the supply chain.

Talk to me about the global nature of that.

For our supply chain, we have identified 150-to-250 different smelters into our product line.

Part of that found smelters in over 80 different countries so far -- 80 different smelters, excuse me, in 21 different countries that we have personally visited to look at the supply chain, how they process materials, and the transactions coming in and out.

Why the conflict is focused in the drc, the supply chain is literally around the world.

What is the message you give the smelters to care about this because fundamentally it is a commodity business where it is about the cost of the input?

From our perspective, that has been one of the biggest challenges.

We were for janet -- fortunate that in the 10thwe had several early adopters that worked well with us.

In some cases it is supply chain pressure put upon industries to help join the cause and drive forward.

It took a lot of tenacity, and in many cases, when you get down to the fundamental audit, the supply chains actually do those transactions and mass balances as part of their inventory anyway, so asking them to demonstrate where it came from was a smaller leap once they understood the issue.

Do they really care?

It is a fundamental, human rights issue, and it does not always play well in business.

I would say it is a mixed bag.

There were some smelters that truly do care and i am confident they are doing it because it is the right thing.

Others, supply chain pressure.

One companies like intel and others said we need this to happen, it became some they need to do for their own business sake.

Weekly, why does intel care?

We care because it is the right thing to do.

We are a global supply chain and we felt we could make a difference.

Interesting stuff.

Intel's supply chain director, carolyn duran, to i very much.

Thank you.

Move over staples center, the l.a. form just got a hundred million dollar makeover and it is luring some big acts.

That is next on "bloomberg west ." ? welcome back to "bloomberg west." i'm emily chang.

All week long we have been looking at how technology is changing hollywood.

Moviemakers like to say content is king, but what if you cannot find the content?

Epix is investing heavily in the user interface.

Jon erlichman has more.

I think a lot when i'm sitting in front of the tv about what i am going to watch, so the user interface becomes an important part of the story.

Epix is the home of this, working on -- working a lot on this.

The ceo joins us from new york.

Before we get into the user interface, tell us how much content, how many movies you have at your fingertips and how many your subscribers have?

It is great having partners in mgm, lions gate.

With the studios, we have exclusive rights to about 35 titles in every year.

And on our digital website, we are close to the 3000 of the 15,000 titles in the library of the three studios.

We are able to offer an incredible breadth of content of what consumers can get access to.

It is an amazing amount of contact.

-- content.

What about navigating through it -- what are the things you are doing to make sure people are watching a lot of that stuff.

There are always people that prefer the linear experience, just like tv right now, hoping to curate and bring content people want to see.

There are always people that want to do that.

We also have a set top box on demand.

But with the 3000, you have to find interesting ways to do search and discovery.

My wife and i love watching romantic comedies, but my kids will get upset with us if we watch "it's complicated" one more time.

You can go to our website, and you will see there is like the old blockbuster stores.

There is the new releases, and you could go into the different categories and genres.

You can find other categories for search, define it by years, categories, actors, actresses, directors, but the most fun thing we do is six degrees of separation.

We take two actors and see how they are connected in a filmography.

What is fascinating to us is when people do that, they find something new, and 90% of the people watch one of the movies we have recommended.

In that duration, search, and discovery, we are trying to find easier ways.

We will go old-fashioned, which is linear, here is comedy, here is drama, or more fun things like how to connect.

Explore this.

I said he factor for the subscriber -- explore the curiosity factor for the subscriber.

Speaking of search, amazon has in making a deal out of this voice search for fire tv.

The amazon product -- we launched on xbox connect to your years ago, and they do voice-activated as well.

A lot of this is a fun, cool, hip and to do.

On xbox we did 1.5 million downloads of their app in 10 days.

People are into finding new ways to play with these devices.

Is it into the nomenclature that we all know how to do it and it works perfectly?

No, but the amazon product, i have played with it, it works really well.

You mentioned the amazon product, the xbox product.

It is a different experience if you are watching through traditional cable on your television and using any of these life forms.

-- platforms.

Roku would be another.

Does it change what people end up watching on epix and these platforms?

New release titles are always the big drivers.

When you have "hunger games," "sky fall," and "star trek" those are the things people are immersed in.

We are finding that people are getting more engaged into the libraries if you find an easy way for them to get their.

Our country has always had a love affair with movies going back for almost 100 years.

Our job is to find a way to make it available for them.

We are on 450 different devices today between the xbox, the ps3, the ps four, the ipad, the iphone, and we have to use a technology these devices allow us to use to enable the search and discovery.

No doubt.

Thank you, margaret berg -- mark greenberg, ceo of epix, talking about the home viewing experience changing.

What about going out, seeing a concert, like here in los angeles where the l.a. forum spent 100 million on a new renovation to be current and modern.

Here is what we find out.

The l.a. forum has hosted every big musical act you can think of, but in its older years it has battled with attention with its younger crosstown rival, the staples center.

The l.a. forum reopened in january after a massive makeover.

Let's check it out.

Over here you have some of the eagles equipment, the first performers in the new l.a. forum . the madison square garden company has spent $100 million on renovations.

It was arguably the most important music venue in the world at one time.

Nobody does it better than msg, as you see at the garden, and they saw an opportunity to return it to its original splendor and more.

We came in, took the seats out, basically gutted the building.

If there is one thing that really makes this the premier concert venue, maybe not just in the u.s. -- i got it.

One thing, the sound.

Don henley says it is the best sounding building in the world, coming from a guy who knows.

It is no accident.

They put sound baffling everywhere you top -- everywhere.

Top acts are noticing.

Case will make a stop.

They will host the mtv music awards where miley cyrus made a splash last year.

They can play in stylish rooms or the fitness room.

I get to test my fear of heights.

We are in the tension grid.

If you are a leading expert, somebody who has to get harnessed up here, you can walk along, "star wars"-like.

I also noticed you have your own mood lighting here at the forum.

We have the led lights.

We call it our starry night.

Pretty incredible here at pretty -- incredible.

Pity jamie.

They are going after the concert crowd, they want to go after the sports crowd, but they want to make it great with technology.

There is a new higher-end camera aimed at professional photographers.

We will show you how it works live right here on "bloomberg west." next.

? welcome back to "bloomberg west." i am emily chang.

When lytro launch its first consumer camera in 2012, the technology was revolutionary, letting users re-focus after the fact.

They have a new lytro illum and silicon valley has helped to fund the push.

Lytro ceo jason rosenthal is here with me with the new camera.

Tell me all about it.

Thank you.

This is a big step forward.

We have rebuilt the camera from the ground up, a huge novel -- level of capabilities here show us how it works.

I will get you framed up.

I'm using depth access, which captures all of the depth in the scene.

We have a beautiful shot of you.

That is not a beautiful shot of me.

I look awful.


there is my face.

If you try tapping -- if you try tapping the background you should bring that into focus as well.



Oh, there you go.


So, why are you guys going after the professional market versus consumers?

The professional camera market is large, about $22 billion a year, 22 million cameras shipped.

The folks that gravitated toward a technology where this group of creative pioneers, people that want to stand out with visual differentiation in their work, produce pictures you cannot get anywhere else.

It was a natural evolution to move up the chain that way.

Would a professional photographer need refocusing technology?

Don't they take perfect pictures?

Lytro is more than refocusing.

We are evolving camera 3.0. , 1.0 was about film, 2.0 film-to-digital, and 3.0 is captioning rich data, and applying powerful algorithms to do things you have never been able to do.

Remind us how the technology works.

When you are taking a picture with lytro illum, you are getting all of the depth data, the three-dimensional data in the shop.

That lets us do things like create lenses and have zoom and light capture that you have never had before.

You can do a lot of things you always had to get right at the time you took the picture.

All of that goes into software post-processing.

The camera is $1600. that is right.

Has nikon or canon ever tried to buy you because it seems like a feature?

At our core, we are a software company.

We are using rich data to bring this new capability to cameras.

It is a different way of thinking.

Could you license the software to canon or nikon?

We absolutely can.

Our focus is building the fast and -- and to end use for consumers.

What kind of people are buying this?

It ranges from the top-end, professional photographers, to creative professionals, all the way down to mass consumers and aspiring professionals.

It goes back to people that want to differentiate their work and do something you cannot do with any other camera.

I want this on my phone.

That is what i want.

You bring up a great point.

Our vision overtime is anything that has a sensor with a lens in front of it will benefit from camera 3.0 technology.

Phones, medical imaging, film and television production, security surveillance -- over time we hope that you will see lytro technology in every device like that.


I can really use it because i'm not a really good picture taker.

Lytro ceo, jason rosenthal, thank you.

Time for the bwest byte, one number that tells a lot.

Cory johnson is in new york.

Jon erlichman is in l a. cory, what do you got?

This is a picture.

240 -- that is astronaut steve swanson with an orbit when he snapped this selfie.

Very cool stuff.

I love how his partner tweeted it is really hard to take a selfie in a space suit.

They tried several times and this is the best they got.

Maybe yours will be better that way.

You should try.

The selfie thing is getting out of control.

I know.

I am trying to limit myself.

It is getting uncool.

Selfie like crazy.

I am all for it.

Thank you, guys.

Stewart for watching.

We will see you later.

? . .

This text has been automatically generated. It may not be 100% accurate.


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