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The Global Assembly Journal for SMT and Advanced Packaging Professionals

Volume 9 Number 12, December 2009 ISSN 1474 - 0893

2009 Rep & Distributor Review Investigation and development of tin-lead and lead-free solder pastes to reduce head-inpillow defects China’s export trade for gray-market handsets

Terry Heilman Interview Inside


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Contents

Volume 9, No. 12 December 2009

Global SMT & Packaging is published monthly by Trafalgar Publications Limited. The journal is FREE to qualified professionals and is available by subscription at a cost of $380.00 for the current volume (twelve issues). Periodicals postage paid at Rahway NJ. Postmaster send address corrections to: Global SMT & Packaging, c/o Mercury International Limited, 365 Blair Road, Avenel, NJ 07001. No part of this publication may be reproduced, stored in a retrieval system, transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise without the prior written consent of the publisher. No responsibility is accepted for the accuracy of information contained in the text, illustrations or advertisements. The opinions expressed in the articles are not necessarily those of the editors or the publisher. ISSN No. 1474-0893 © Trafalgar Publications Ltd Designed and Published by Trafalgar Publications Ltd, Bournemouth, United Kingdom Printed by Progress Printing, Lynchburg, VA, USA.

Contents 2

American edition

10

New year—new opportunities Trevor Galbraith

Technology Focus

10 Investigation and development of tin-lead and lead-free solder pastes to reduce head-in-pillow defects Jasbir Bath and Roberto Garcia, Christopher Associates Inc., and Noriyoshi Uchida, Hajime Takahashi, Gordon Clark, Manabu Itoh, Koki Solder

22

18 China’s export trade for gray-market handsets Kevin Wang, iSuppli 22 Combating counterfeit components—industry initiatives for a global problem Nigel Burtt, Enjaybee Associates Special Features

32 44 46 48

2009 Rep & Distributor Review Case Study: Traceability at Semecs Interview—Terry Heilman, Sunstone Circuits Productronica confirrms indstury rebound

34

regular columns

4

Creating flexible circuit assemblies without solder Joe Fjelstad

26 Year end assessment: the path to recovery Walt Custer and Jon Custer-Topai 56 Measuring package on package—possible procedure, comments welcome Bob Willis Other Regular Electronics manufacturing equipment distributors and reps share their insight on current conditions and future trends.—p. 32

www.globalsmt.net

Features

6 52 58 60

Industry News New Products Association News International Diary

Global SMT & Packaging – December 2009 – 1


Editorial

Trevor Galbraith

Editorial Offices Europe Global SMT & Packaging Trafalgar Publications Ltd 8 Talbot Hill Road Bournemouth Dorset BH9 2JT United Kingdom Tel: +44 (1202) 388997 E-mail: news@globalsmt.net Website: www.globalsmt.net United States Global SMT & Packaging PO Box 7579 Naples, FL 34102 USA Tel: (866) 948-5554 Fax: (239) 236-4682 E-mail: news@globalsmt.net China Global SMT & Packaging Electronics Second Research Institute No.159, Hepin South Road Taiyuan City, PO Box 115, Shanxi, Province 030024, China Tel: +86 (351) 652 3813 Fax: +86 (351) 652 0409 Editor-in-Chief Trevor Galbraith Tel: +44 (0)20 8123 6704 (Europe) Tel: +1 (239) 784-7208 (US) E-mail: editor@globalsmt.net Managing Editor Heather Lackey Tel: +1 (866) 948-7778 E-mail: hglackey@globalsmt.net

Circulation & Subscriptions Kelly Grimm Tel: +1 (866) 948-7779 E-mail: subscriptions@globalsmt.net

Advertising

Global SMT & Packaging offers effective print, web, email and video advertising opportunities. Contact your local sales rep today. Americas—Derek Laborie (print & video) Tel: +1 (866) 948-5557 Mobile: +1 (603) 661-5828 dlaborie@globalsmt.net Sandy Daneau (digital) Tel: +1 (866) 948-7775 Cell: +1 (603)-686-3920 sdaneau@globalsmt.net Europe—Andy Kellard Tel: +44 7766 951665 akellard@globalsmt.net Asia/Pacific— Debasish Choudhury Tel: +91 120 6453260 dchoudhury@globalsmtindia.in Korea— Sang Hun Oh Tel: +82 -(0)10-6833 9597 sanghunoh@globalsmt.net

Editor-in-Chief

New year—new opportunities 2009 has proved to be one of the most challenging years in recent history, driven by the fallout in the global economic markets. 2009 started out frighteningly bad and only showed modest recovery, starting June/July. The year ended in a small flourish with a surprisingly strong Productronica (see Productronica Review on page 48). However, recession is “the mother of invention” as some may say, and this was obvious to those who visited Munich. Although there was a lack of non-European manufacturers, there was no lack of distributors and reps from around the world who converged on Munich to seek out the latest equipment and materials to sharpen up their line cards. Distributors and reps are the heart and soul of the electronics manufacturing industry, as many of our readers know. They act as your eyes and ears at events like Productronica to report back on the latest machines and materials that could help you improve your processes, improve your yields or just save you money. Read their predictions for 2010 on page 32. At Global SMT & Packaging, this is also a time for review—where is the market going and what media solutions should we be providing to support our customers and readers in these regions? China continues to be a hot spot, and the Chinese Stimulus Bill will ensure a continued demand for consumer electronics well into 2010. Global SMT & Packaging China continues to grow and is firmly established as the leading western technical magazine in this region. India was not as badly affected as many other regions and continues to grow at a fast pace. In 2010 we will launch a new quarterly print edition of Global SMT

& Packaging Asia, based out of our New Delhi office under the competent direction of Debasish Choudhury. Manufacturers throughout India, Malaysia, Singapore, The Philippines, Thailand, Vietnam and Hong Kong will receive this issue free and it will be available to others at a modest charge. Another burgeoning region is Brazil. The electronics consumer goods market serving Latin America is growing every month. We will be supporting this market with a new trade show for Latin America. SMT Brazilia will be held in the May/June period, and further details will be available in our January issue. January will also witness the launch of our newest website with a host of new features—so, lots to look forward to. Finally, as 2009 draws to a close, we want to wish all our readers a very Happy Christmas and a Prosperous New Year. We endeavor to keep you informed about all the latest developments around the electronics manufacturing world. It is only with your support and the support of our valued customers that we are able to continue to expand our resources and improve the level of reporting you need to keep your practices and processes up to date and competitive. We look forward to continuing this process in 2010. Warmest wishes, Trevor Galbraith.

Asia— Carol Chen tancarole@yahoo.com.tw 2 – Global SMT & Packaging – December 2009

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Title

Creating flexible circuit assemblies without solder

Joe Fjelstad

Creating flexible circuit assemblies without solder Of all the interconnections technologies in use today, flexible circuits are certainly among the most useful. The advantages of the flexible circuit technology have been recounted numerous times in electronic interconnection industry journals and technical proceedings. Flexible circuits are ubiquitous, and it is safe to venture that the reader possesses many of them buried inside the many electronic products they own, from cell phones and MP3 players to laptops and automobiles. Still, the fundamental attribute that makes the flexible circuit option so attractive (i.e. flexibility) is also the attribute that makes them more difficult to build. Manufactures have had to develop and apply a range of new methods and tools to help them get through the process from circuit manufacture to component assembly. In contrast, the rigid board manufacturer’s

task is much easier, both in terms of circuit manufacture and component assembly. Realizing this, flexible circuit manufacturers have developed, over the years, many special tools, fixtures and methods, and equipment makers have developed special machines for handling and processing these highly desirable interconnection products. This same story was repeated when it came to the assembly of the finished flexible circuits, where again, special fixtures and methods are employed to facilitate processing and improve assembly yield. In most cases, the solutions have fundamentally revolved around the ones that allowed flex circuits to mimic their rigid cousins. Thus, with the exception of roll-to-roll processing, flexible circuits are commonly prepared and processed in ways that allow them to appear rigid to the process. The most

basic of these solutions is the stiffener, a piece of rigid material, either conductive or nonconductive depending on design requirements. For a standard flexible circuit, the benefits mostly serve the circuit assembler during processing as the flex circuit manufacturer applies the stiffener as one of the final steps. In contrast, a rigid flex circuit can be fabricated in much the same manner as a standard multilayer circuit with some modifications, depending on the specifics of the design. However, this only is true for the laminated structure as the flexible elements of the rigid flex circuit must be printed, etched and provided with a cover layer or cover coat before it can be integrated and laminated into the final multilayer circuit structure. This paradigm has remained the status quo for the four decades of the rigid flex circuit’s existence.

Figure 1.Illustrated above is a simplified process for fabricating rigid flex circuits. 1) place components of a temporary or permanent carrier (temporary shown) 2) encapsulate 3) remove carrier 4) apply flexible film or coating 5) access component terminations 6) metalize, image and plate circuits as required 7) apply top flexible film or coating 8) test and flip assembly 9) route channels through flex areas 10) form to shape

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Creating flexible circuit assemblies without solder

But what if one could produce a circuit that was rigid throughout the entire manufacturing process and only became flexible in the final step? In other words, what if one could make a rigid circuit assembly...flex? In a sense, this was tried in the 1980s with a material called Bendflex, introduced by Rogers Corporation, but there were strict limits on bending, and unfortunately the material was not able to gain mind or market share. Still, the basic premise and objectives of that effort remain valid and worthy of pursuit. With this in mind, the following is a description of prospective process for manufacturing what is, in essence, a rigid flex circuit of a new sort. The process is an extension of concepts described earlier in this column based on what has come to be called the Occam Process, a process that is designed to simplify electronic manufacturing and assembly by eliminating solder from the overall process. In the process, copper electroplating is used to make the electronic interconnections instead of molten solder alloys that can require processing at temperatures up to 260˚C, temperatures that can damage both electronic components and the substrates on to which they are mounted. The first step is to place the components on a temporary or permanent carrier. Because the circuit will have flexible or formable areas, the permanent carrier would desirably be of a flexible material. Components are preferably not placed in the areas that are to be later flexed for obvious reasons; however if the components are thin enough, this might be relaxed, but it needs to be weighed against the needs and objectives of the design. Next, the components are encapsulated using a suitable material that may or may not be partially filled. The assembly will now appear to be a substantially rigid panel and can be processed as such. The next step is to access the component leads, which desirably are either of copper or have of a copper finish. The assembly can now be plated using build up plating methods. As with all flex circuits, it is desirable to limit the number of circuit layers through the areas where flexing or bending is anticipated. After completing the buildup of all of all required circuit layers and a final flexible top layer, the assembly can be functionally tested. On completion of testing, the assembly, comprising components and circuits, is flipped over and, using end mills or router bits with rounded cutting edges, the excess material can be removed from the areas

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where flexibility is needed. The basic process steps are illustrated in Figure 1. The total number of steps is significantly less than the traditional methods employed in making and assembling circuits, offering significant cost and time savings overall and worry free compliance with RoHS requirements. Moreover, there are number of special techniques that can be used that are not possible using traditional manufacturing methods including the integration of thermal management solutions such as heat spreaders. The final assembly can then be folded into a compact assembly or formed to fix easily into the desired shape. There are many other possibilities. While the basic Occam process on which this simple concept is predicated is generally viewed as compelling by most knowledgeable technologists, the one recurring question is “What about rework?” This question is best answered with another question: “Why do you need to rework?”—the answer to which is inevitably that the soldering process is imperfect and shorts and opens are common defects and increasingly the high temperatures of lead free solders take a toll on the reliability of electronic components. In addition, as component lead pitches continue to shrink, the challenges grow exponentially more onerous. By focusing on improving simpler processes, the economics of solderless assembly should prove out positively in the long run. In summary, rigid flex circuits are a 40-year-old technology of proven value that could benefit from some rethinking of how they might be manufactured. Processes such as the one described, which are simpler and shorter, should find numerous applications as designers and manufactures come to appreciate the benefits, especially in the light of the challenges facing the industry in the era a lead-free solder. Verdant Electronics founder and president Joseph (Joe) Fjelstad has more than 35 years of international experience in electronic interconnection and packaging technology in a variety of capacities from chemist to process engineer and from international consultant to CEO. Mr. Fjelstad is also a well known author writing on the subject of electronic interconnection technologies. Prior to founding Verdant, Mr. Fjelstad co-founded SiliconPipe a leader in the development of high speed interconnection technologies. He was also formerly with Tessera Technologies, a global leader in chip-scale packaging, where he was appointed to the first corporate fellowship for his innovations.

The winners are coming

Don’t miss the special awards issue next month in

Global SMT & Packaging – December 2009 – 5


Industry News

Industry News KIC and Valor partner for integration into the DynamiX MES Platform Thermal process management product manufacturer KIC has teamed with Valor, a provider of productivity improvement software across the printed circuit board manufacturing supply chain, to integrate KIC’s continuous monitoring systems directly to Valor’s newly released endto-end software suite, DynamiX. KIC’s RPI (Reflow Process Inspection) will be incorporated into Valor’s DynamiX complete assembly production software suite designed to integrate solutions that will assist manufacturers in the design, planning, monitoring, control, scheduling, box build, traceability, test and rework processes. www.kicthermal.com Alpha—Cookson Electronics business in Benelux subject of MBO Alpha—Cookson Electronics Assembly Materials has announced that its Alpha product line trading business, in the Benelux, is the subject of a successful management buy out. The new company is called ROTEC BVBA and is headed up by Tom Gevers, Tom Meeus, Nadine Swerts and Anne-Mie van Hemelrijk. Cookson will retain its stencil manufacturing facilities at the factory in Turnhout, Belgium while Rotec BVBA will be responsible for marketing and selling both laser cut and electroformed stencils throughout the region. www.alphametals.com Essemtec to use Production Solutions’ RED-E-SET products Production Solutions Inc., has entered into an agreement with Essemtec in which Essemtec will use RED-E-SET products and technologies on its screen printers. By combining Essemtec’s advanced top-of-the-line technologies and REDE-SET’s innovative substrate support systems, customers will benefit from products and solutions that will address today and tomorrow’s challenges. RED-ESET is recognized worldwide as a leader in substrate support solutions for not only screen printers and pick-and-place, but also chip shooters and dispensing machines. Incorporating this flexible support tooling will result in reduced changeover times, improved quality of both printing and placement, elimination of

risk of component damage, and reduction in specialized support tooling cost and management. www.essemtec.com, www.production-solutions.com

Speedprint SP700avi stencil printer improves throughput at Harvard Engineering Harvard Engineering recently chose an SP700avi stencil printer from Speedprint Technology Ltd., a division of Blakell Europlacer Group, to improve throughput. Harvard Engineering is one of Europe’s major designers and manufacturers of electronic ballasts and control gear. Earlier this year, the company identified the need to replace its stencil printer. It required a reliable, state-of-the-art printer to ensure that throughput was maintained to the highest standard. It was clear that, technically, the Speedprint SP700avi was the right machine, designed to cope with the rigors of high-volume SMT production, while incorporating the flexibility needed in high-mix, quick product set-up and changeover environments. www.harvardeng. com, www.speedprint-tech.co.uk New SIPLACE factory based on lean production principles Siemens Electronics Assembly Systems GmbH & Co. KG started production at its new factory in Munich that centralizes the production of its state-of-the-art SIPLACE placement machines immediately adjacent to its development departments. The new factory was designed in accordance with the latest lean production principles—just-in-time and Kanban production, flow production, pullprinciple, lot size 1 in all process steps (one-piece flow), separate production teams—cutting production times for SIPLACE placement machines by more than half. Despite the increased output, the production area takes up less than 20

6 – Global SMT & Packaging – December 2009

percent of the previous floor space. www.siplace.com Sunstone Circuits introduces PCB FAB + Assembly PCB solution provider Sunstone Circuits now offers 2-in-1 ordering capabilities that enable design engineers to order PCBs from Sunstone Circuits and assembly services from Screaming Circuits, all in one place at www.Sunstone.com. As a result of Sunstone’s continued commitment to collaborate with key industry partners to best serve design engineers, customers utilizing Sunstone’s PCBexpress® quick turn or full-feature services can now take advantage of quoting and ordering fully assembled boards for both prototypes or production runs. www.sunstone.com, www.screamingcircuits.com FCT Assembly now offers lab services at its Colorado facility FCT Assembly announces that lab services are now offered at its Greeley, CO, facility. Conventional 63/37, SN100C® lead-free and SAC305 alloys can be analyzed. At the facility, FCT manufactures a full line of leaded and lead-free solder products. The company supplies SN100C and 63/37 solder bars, leaded and lead-free solder pastes, SN100C solder wire, fluxes for leaded and lead-free applications and accessory products. Other services offered at the facility include wet analysis of plating baths and surface analysis of White Tin, OSP and lead-free HAL. Same day quotes and 24-hour turnaround also are available. www.fctassembly.com Juki ships of its 7500th KE2050/2060 machine Juki Corporation shipped the 7500th KE2050/2060 machine from its manufacturing complex in Akita, Japan. The KE2050/2060 series is the all-time bestselling placement machine model in Juki history, and also the bestselling placement machine of all time. “It’s a proud day for all of us at Juki,” said Bob Black, president and CEO of Juki Americas. “We wish to thank our customers worldwide for the fantastic

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Industry News Title

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Global SMT & Packaging – December 2009 – 7


Industry News

sales record of the KE2050/2060 model pair. These workhorse machines have the highest MTBF numbers in Juki’s history, and a price/performance ratio second to none in our industry.” Juki recently introduced the KE2070/2080 model pair, with a 23% performance increase over the KE2050/2060. These enhanced models have already started dynamic sales growth, indicating good market acceptance and building on the KE2050/2060 record of success. www.jukiamericas.com

Appointments David R. Samyn appointed VP & general manager ITW Electronic Assembly Equipment Group David R. Samyn has joined Illinois Tool Works (ITW) Inc. as vice president and general manager, Electronic Assembly Equipment Group. The group is comprised of Vitronics Soltec in Stratham, New Hampshire, and Speedline Technologies of Franklin, Massachusetts. Mr. Samyn previously served as vice president and general manager, Electronics Division of Littelfuse, Inc., for six years, from 20032009. Prior to that, he served as vice president—global sales, with Airfiber, Inc. www.itw.com Stephen LaCroce joins DYMAX as director of applied technology DYMAX Corporation appointed Stephen LaCroce as the director of applied technology. In his new position, Mr. LaCroce will report to Terry Woldorf, chief growth officer, and he will manage the combined activities of the applications engineering and market segment departments. www.dymax.com

Kyzen equips Application Laboratory in Penang, Malaysia Kyzen’s fourth Application Lab, to be located in Panang, Malaysia, will feature a broad range of cleaning equipment and cleaning evaluation devices to provide real-time results for customers while they design their own cleaning process. “Hands-on application testing is invaluable to an engineer designing a new cleaning process,” said Tom Forsythe, Kyzen’s vice president. “Over the past 20 years, Kyzen has developed great expertise in the Applications Lab that our customers will have direct access to in Penang as they do in Europe and North America today.” The laboratory is in the design stage and will be fitted out as the design work is completed. Kyzen’s Penang sales and support office is now fully staffed and actively supporting its Malaysian customers today. www.kyzen.com Aqueous Technologies introduces contract cleaning and cleanliness testing Aqueous Technologies Corp. introduced a full-service contract defluxing and cleanliness testing service in its Southern California facility. Aqueous Technologies’ fleet of award-winning Trident automatic defluxing equipment and Zero-Ion Resistivity of Solvent Extract (ROSE) testers are available for use on any assemblies. From a few assemblies to a few thousand assemblies, Aqueous Technologies provides thorough cleaning/ defluxing and cleanliness testing services. Unlike other companies that only charge by the board, Aqueous Technologies charges by the hour. This is beneficial for customers because Aqueous Technologies’ defluxing equipment are among the fastest machines available. The price is fully inclusive: DI water, defluxing chemicals, and all labor are included in the price. As an additional benefit, Aqueous Technologies offers same-day service at no additional charge. www.aqueoustech.com

8 – Global SMT & Packaging – December 2009

Manncorp introduces five-second online quote service & new product pages Manncorp’s website can now furnish a quotation on any product within five seconds. This landmark feature is activated whenever the five-second digital timer—appearing on every product page—is clicked. As soon as the user provides brief identification information, the countdown begins, and the requested quote is instantly processed and e-mailed. In addition to the new quote format, several new products have been added to the Manncorp site: two new pickand-place systems, a dual-pot wave solder machine, and a low-cost split-vision rework system for BGAs and CSPs. www.manncorp.com The Schmersal Group implements SEHO Systems’ PowerWave

The Schmersal Group recently chose SEHO’s PowerWave for its new electronic manufacturing plant in Boituva, Brazil.The Schmersal Group develops and produces a range of approximately 25,000 different switchgear and control devices. Schmersal chose SEHO’s PowerWave because it offers remarkable performance and fast return on investment. With the PowerWave, complex SMD boards are as reliably soldered as conventional assemblies, as a result of up-to-date solder nozzle geometries and a flexible preheat area. The Schmersal Group chose the PowerWave for its flexible preheat configuration. www.schmersal.de, www.sehona.com Camera, Action, BGA Inspection! Four new video clips featuring BGA inspection and counterfeit detection can be viewed on Soldertec Global’s website. These video clips show how Dage real time x-ray and Fischer XRF equipment are used to measure PCB plating thickness and help detect RoHS restricted elements. www.Soldertec.com

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Title

The Leader in Intelligent Inspection Systems CyberOptics understands the importance of delivering the highest value to customers. Increased productivity and product quality is our goal. Our SE500 Solder Paste and Flex HR Automatic Optical Inspection systems do just that.

SE500 – Fastest, Most Accurate, Best GR&R • Superior inspection speed and accuracy • Ability to inspect solder pads of ultra-small components at line speeds • No system calibration – ELIMINATES FALSE CALLS • Superior measurement capabilities – Highlight the TRUE values for process optimization – Able to inspect flexible circuits with ease

Flex HR™ – High Performance Made Easy • Intelligent inspection system inspects virtually anything – Patented SAM™ technology inspects any component or surface – Detects both typical and unanticipated defects • SAM™ technology self teaches – NOT a simple image comparison software technology – Constantly learning technology – Does not have to be pre-programmed with defect images • High performance at high speed – Zero escapes with lowest false calls (<0.02%/200 ppm) – High speed pre- and post-reflow capabilities • Simple – saves time and cost – SAM™ technology eliminates complex algorithm selection – Only one moving part drives low maintenance cost

Be sure to contact CyberOptics to learn how we can help you improve productivity and product quality. CyberOptics Corporation (Headquarters) 5900 Golden Hills Drive Minneapolis, MN 55416 Telephone: 763.542.5000 Fax: 763.542.5100 www.cyberoptics.com www.globalsmt.net

Global SMT & Packaging – December 2009 – 9


Investigation and development of tin-lead and lead-free solder pastes to reduce head-in-pillow defects

Investigation and development of tin-lead and lead-free solder pastes to reduce head-in-pillow defects Jasbir Bath and Roberto Garcia, Christopher Associates Inc., Santa Ana, California, and Noriyoshi Uchida, Hajime Takahashi, Gordon Clark, Manabu Itoh, Koki Solder, Tokyo, Japan Over the last few years, there has been an increase in the rate of head-in-pillow component soldering defects across a broad segment of industries, including consumer, telecom and military. It has been found to occur not only on lead-free soldered assemblies where the increased soldering temperatures may give rise to increase component/board warpage but also on tin-lead soldered assemblies. In order to reduce this effect, a set of tin-lead and lead-free solder pastes were developed with flux formulations having higher heat resistance—they did not lose their flux activation properties as quickly—and quicker wetting, which helped to reduce the head-in-pillow defect. The results of the evaluation are presented here, along with a review of some of the other causes of head-in-pillow defects and an assessment of industry standards. Keywords: Lead-free, Tin-lead, Head-in-Pillow, Warpage This paper was originally presented at SMTA International 2010.

Introduction The head-in-pillow (HIP) soldering defect occurs as a result of the incomplete merging of the BGA/CSP component sphere and the molten solder paste during reflow (Figure 1). The typical situation causing this defect involves the following:

1. D uring the preheat and soak stages of the reflow process, the BGA/CSP sphere and the flux become oxidized. 2. At the early stages of reflow, the solder paste starts to melt, with bleed out of the flux and further oxidation of the BGA/ CSP bumps with a gap between the reflowed solder paste and ball. 3. The flux is then consumed as the solder melts. 4. During the peak reflow stage, the oxide film on the BGA/ CSP sphere surface does not melt with the reflowed solder paste, which has a flux layer with almost no activation. 5. This, along with the fact that the time above liquidous is limited before cooling, causes the head-in-pillow defect. Some of the causes of the separation of the BGA/CSP sphere from the solder paste during reflow are related to component package warpage and inconsistent BGA/ CSP ball sphere size, with component package warpage being especially problematic during lead-free soldering, due to the higher lead-free soldering temperatures. An improper reflow profile may also cause HIP defects if excessive

10 – Global SMT & Packaging – December 2009

Figure 1. Head in Pillow component soldering defect.

warpage of the component and/or the PCB results. During reflow there may also be lifting of certain BGA/CSP spheres from the paste deposit due to the wetting forces acting during reflow. Vaccaro et al.1 showed that large component warpage could be caused by moisture in the part and the use of higher peak lead-free soldering temperatures. This would mean that even though the component may be qualified to a certain moisture sensitivity level (MSL) rating for lead-free soldering according to IPC/ JEDEC J-STD-0202, it still may cause issues in production due to excessive component warpage. For a 37.5 mm square part, an increase in die size from 5 mm x 5 mm to 11 mm x 11 mm could help to reduce the component warpage during the lead-free reflow operation due to the additional stiffening from the larger die size. Lathrop3 also indicated that one of the main factors influencing BGA coplanarity was component laminate warpage due to underfill and over molding operations on the package side. Lin et al.4 conducted a study on PoP (package on package) components using the shadow moiré

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Investigation and development of tin-lead and lead-free solder pastes to reduce head-in-pillow defects



Figure 2. Head-in-pillow defect (warpage, oxidization).

technique to understand the influence of package warpage during lead-free reflow assembly from 25˚C to 260˚C and then back down to 25˚C. Various factors had an influence on warpage, including die size, mold compound thickness and mold compound CTE (coefficient of thermal expansion), substrate material, thickness and copper layer ratio, which could then be optimized to reduce component package warpage. The difficulty with this defect is that it is usually very difficult to detect during inspection and functional level testing. There is partial contact between the reflowed solder paste and the ball sphere but no real metallurgical bond. Thus, when the component is subject to mechanical or thermal stress in the field, head-in-pillow defects lead to failure. Head-in-pillow soldering defects have also been found to be a result of a large temperature gradient (∆T) across the BGA component during reflow5 causing nonuniform melting of the component spheres into the paste. Shadow moiré techniques have also been employed to understand the warpage of the component during reflow with the reflow profile used in the shadow moiré testing machine adjusted to simulate the production reflow oven profile. The warpage effect of the component during the reflow profile can cause the headin-pillow defect so it is important for component warpage/coplanarity behavior during reflow to be understood and controlled by the component supplier during component design to prevent issues occurring in production. Based on this issue, a set of experiments was conducted to develop both tin-lead and lead-free solder pastes to help to reduce the affect. As already discussed, some of the stages in head-inpillow formation are: 1. Inconsistent ball size of the BGA/CSP sphere or a extended time-lag in melting of the solder ball and paste causing solder balls to detach from the solder paste during reflow. 2. As they are apart from one

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another, the solder paste and  solder balls get oxidized. 3. As the reflow time progresses the solder balls start to drop back into the solder paste. 4. The solder paste and solder balls come back into contact. 5. Oxidized surfaces on both ball and paste sides hinder complete merging, causing the defect.

films on the BGA/CSP component sphere.

Based on these stages, fluxes were developed for tin-lead and lead-free solder paste that retained their high activation level during the reflow/cooling stage, which helped to remove the oxidized film formed. Comparing tin-lead (Sn37Pb) with lead-free (Sn3Ag0.5Cu) solder pastes, the lead-free paste would have a higher melting temperature and be more vulnerable to oxidization with the increased temperature during pre-heat and reflow. For these reasons, wetting failures for lead-free solder such as un-molten solder, non-wetting to components, and head-in-pillow defects would occur more often. The tin-lead and lead-free solder pastes were developed to accommodate high pre-heat, and prevent/ reduce the headin-pillow defects caused by component warpage and oxidation (Figure 2). The solder pastes developed addressed certain areas, including flux activation level, heatresistance and paste printability, with the experiments and results reported in the following sections. Experimental To prevent and reduce the head-in-pillow defects, a series of experiments were done to understand and address this issue. Various areas were explored, which are discussed in the following sections. Adjustment of flux fluidity To reduce the oxidization of the solder paste, the flux fluidity was adjusted to have the flux protect the solder more from heat during the pre-heat stage. Heat resistivity improvement of flux The flux was developed so that the activation level of the flux was increased during pre-heat by improving the heat resistivity of flux. Based on this the flux would be better able to remove oxidized

Nitrogen versus air reflow test As head-in-pillow defects were typically caused by oxidization of the BGA/CSP component and deterioration of flux, the occurrence of the defect could be decreased by reducing the oxidization of the BGA/CSP component using flux that could help to remove oxidized film while choosing a more heat-resistant flux. Reducing BGA/CSP component oxidation could also be achieved in a nitrogen environment which would help to reduce oxidation. In case the nitrogen environment could not be used because of nitrogen cost issues, more emphasis on flux development could be employed. The primary development in flux formulations for tin-lead and lead-free solder pastes was to remove the oxidized film on the BGA/CSP component and to improve the heat resistance of the flux. SnPb head in pillow paste development The initial work over the last four to five years was to remove head-in-pillow defects when using tin-lead solder pastes as this was the initial customer problem to help to reduce head-in-pillow component soldering defects in tin-lead soldering. The following section describes the development work in this area. Test method on chip components using tin-lead solder paste To simulate the phenomenon, an oxidized component was placed on top of the previously reflowed and oxidized tin-lead solder paste, and then the combination was reflowed. The evaluation consisted of using three solder pastes: control SnPb Paste A, control SnPb Paste B and improved head in pillow SnPb Paste C. The method developed used the following steps: 1. O xidization of chip component—150˚C for three hours—2125C [0805] chip size, 90Sn10Pb component coating 2. Oxidization of the reflowed solder paste—150˚C preheat for 1 minute followed by 230˚C reflow for 1 minute. The reflow profile used is shown in Figure 3. After oxidizing the chip component and the reflowed solder paste, the chip component was placed on the reflowed solder paste as shown in Figure 4. It would have been preferred to use molten solder paste to replicate the head-in-pillow defect

Global SMT & Packaging – December 2009 – 11


Investigation and development of tin-lead and lead-free solder pastes to reduce head-in-pillow defects

Figure 3. Reflow profile used to oxidize the tin-lead solder paste. (Time over 183˚C = 120 seconds.)

Figure 4. Chip component placement on reflowed solder paste.

more accurately, but due to experimental difficulties reflowed solder paste was used. A reflow simulator was used to observe the melting behavior in real time between the reflowed solder paste and the chip component. The reflow simulator equipment used is shown in Figure 5. The reflow conditions used in the reflow simulator had a ramp-up temperature of 1˚C/sec, heating up to 215˚C peak temperature as shown in Figure 6. The atmosphere used during reflow was air. SnAgCu head in pillow paste development For lead-free solder paste development, chip components with reflowed solder paste could also have been used, but at that stage of the development, BGA/CSP spheres were used as it more simulated the actual assembly test conditions.

the reflowed solder on the board pads and reflowed again as shown in Figure 8. The melting behavior was observed in a reflow simulator with inspection of the soldered joints by peeling off the BGA/ CSP component from the test board after reflow. Test vehicle evaluation Test boards were also used to assess head in pillow performance by intentionally oxidizing BGA/CSP components and then assembling onto paste printed test boards followed by reflow to see if the developed solder paste could help to improve head in pillow performance by analysis of soldering to the oxidized BGA/CSP sphere components. Results and discussion SnPb head in pillow paste development results

Results on chip components The wetting of the three different SnPb solder pastes with components with the reflow simulator are shown in Table 1. From Table 1, for the control SnPb Paste A there was no real soldering connection between the reflowed paste and component after reflow. The headin-pillow success rate was not very good because the flux in the solder paste was high in viscosity and tended to stay underneath the component, hindering a good connection/contact between the Figure 5. Reflow simulator used to observe real time component terminal and the solder paste. melting behavior of the reflowed solder paste and The control SnPb Paste A had flux residue the component. which was harder than the flux residue used in head-in-pillow SnPb Paste C. At the higher melting temperatures, the flux residue was less soft than the flux residue for Paste C, which reduced the amount of contact of Paste A compared with Paste C with the component termination increasing the amount of head-in-pillow Test method on assembled boards defects. The same principle would also To look at the joint formation on the apply to BGA/CSP components. The BGA/CSP component, the board was higher the flux viscosity, the more likely reflowed after solder paste was printed   on the test board. The BGA/CSP that there would not be good contact Figure 6. Reflow simulator tin-lead reflow profile between the BGA/CSP component and component was then placed on top of used. (Time above 183˚C = 60 seconds.) the paste causing the head-in-pillow defect. For the control                   NG          OK SnPb Paste B, the flux in the solder paste had a lower viscosity than the control SnPb Paste A which gave good contact between Figure 7. Diagram showing flux activation level evaluation for solder spheres with Figure 8. Joint formation evaluation using a BGA/ the component solder paste. CSP component on reflowed solder paste. termination and the Test method on ball spheres To show the effectiveness of a solder paste in preventing the head-in-pillow defect, a large amount of components and time would be required. To replicate the defect and accelerate the evaluation procedure, an evaluation was conducted to look at flux activation level retention at high temperature using solder ball spheres. This involved printing solder paste onto the test board which was then placed on a static solder pot to melt the solder paste. Once the solder paste had melted, solder spheres were placed on top of the reflowed solder paste at various time intervals during reflow. If a solder ball melted and merged with the reflowed solder paste, it was judged as a good result and termed ‘OK’ When no merger occurred, it was judged as a bad result and termed ‘NG’ as shown in Figure 7.

12 – Global SMT & Packaging – December 2009

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Global SMT & Packaging – December 2009 – 13


Investigation and development of tin-lead and lead-free solder pastes to reduce head-in-pillow defects

210˚C

215˚C





Paste A

Figure 9. Flux flow comparison between two types of flux showing different solder particle coverage. After 30 sec

After 50 sec

After 70 sec

Paste B

Table 2: Retention of flux activation level for leadfree head-in-pillow SnAgCu Paste D (top row) versus control lead-free SnAgCu Paste E (bottom row).

Paste C

SnAgCu head in pillow paste development Table 1. Reflow simulator results for control SnPb Paste A, control SnPb Paste B and head-in-pillow SnPb Paste C.

solder paste, which would help to reduce the head-in-pillow defect. However, as the amount of flux remaining around the reflowed solder paste in contact with the component was relatively small, wetting to the component was not very high, which increased the potential for head in pillow defects. For head-in-pillow SnPb Paste C, with the flux viscosity being lower, the paste made good contact between the component termination and the solder paste. The reduced flux flow compared to control SnPb Paste B helped to leave the required amount of flux around the solder paste in contact with the component, which helped to remove the oxidized component film. In addition, the flux in Paste C retained its flux activity during the tin-lead reflow profile better than Paste A Upon melting

or B, which allowed for better wetting at a lower soldering peak temperature (210˚C). One of the developments for SnPb Paste C was a solder paste with a certain flux fluidity, so that the solder particles were protected more during the preheat and reflow operation which helped to improve head-in-pillow performance as shown in Figure 9 where, in top pictures, the flux flows out during preheat with the top of the solder deposit exposed, leaving it more vulnerable to failures such as the head-in-pillow soldering defect. In the bottom pictures, the flux covers up to the top of the solder deposit as the fluidity of the flux is low. This helps to prevent oxidization of the solder during heating which improves head-in-pillow performance.

20 seconds after melting

Conventional paste

Figure 10. Lead-free paste melting behavior comparing the head-in-pillow paste with the conventional paste.

14 – Global SMT & Packaging – December 2009

Results on ball spheres The testing results for lead-free SnAgCu spheres with the developed lead-free headin-pillow solder paste and a control paste are shown in Table 2. The lead-free SnAgCu head in pillow paste D showed better performance in the solder paste to ball merging test even after longer reflow times versus the control SnAgCu Paste E. This was because the flux used in Paste D was more resistant to heat and capable of removing the oxidized film from solder ball even after the prolonged melting time. As already indicated, the development of the lead-free head-in-pillow paste included improving the coverage of the solder particles after melting to reduce oxidation and improving the flux heat resistivity. By covering the solder surface with flux after melting, the solder was protected from oxidization at peak soldering temperatures, thereby enhancing resistivity to the head-in-pillow defect as shown in Figure 10, compared with a conventional lead-free solder paste. For improved flux heat resistivity tests were done on the flux by heating at 300˚C to determine flux rosin color change. Good results were indicated by only a light color change after heating (Figure 11). As shown in Figure 12, it takes a longer time for the head in pillow SnAgCu Paste D to deteriorate in the bonding

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Investigation and development of tin-lead and lead-free solder pastes to reduce head-in-pillow defects

Conventional flux

Improved flux version

Figure 11. Comparison of flux rosin color after heating at 300ºC for lead-free SnAgCu paste showing conventional versus head-in-pillow solder paste performance.

performance test between the solder paste and the solder ball (60 sec) in comparison with the control SnAgCu Paste E and other SnAgCu paste materials (Pastes F to I) assessed (20 to 50 seconds). Results on assembled boards Test boards were used to confirm the ability of the lead-free head-in-pillow developed paste to have good heat resistivity and fluxing ability in the solder paste to remove oxidized film under more severe test conditions in a reflow simulator as shown in Figure 13. The newly developed head-in-pillow SnAgCu paste D started to form a solder joint between the paste and the solder ball at 225˚C and achieved complete merger with the solder ball at 235˚C. For the control SnAgCu paste E, the merging of the solder paste and ball was incomplete as both the solder and flux were oxidized in the first reflow and the flux remaining was unable to remove the oxidized film on the solder ball during a subsequent reflow. Example visual appearance pictures of the solder joint after peel-off of the component from the board are shown in Figure 14. The lead-free SnAgCu head-in-pillow paste D showed better performance in joint formation compared with the control SnAgCu paste E. The results of the evaluation for the different lead-free SnAgCu pastes are shown in Figure 15, where the head-inInitial

225˚C

235˚C

Cross section

Figure 12. Comparison of the retention of the paste bonding performance for lead-free head-in-pillow SnAgCu Paste D versus the other SnAgCu paste materials.

pillow paste D showed no occurrence of the head-in-pillow defect compared with control SnAgCu Paste E and the other SnAgCu solder paste materials tested. Lead-free SnAgCu solder paste nitrogen versus air atmosphere reflow test results In a study comparing nitrogen versus air reflow, it was found that head in pillow performance improved with the use of nitrogen atmosphere (1,000 ppm O2) presumably because the nitrogen helped to retain and improve flux activity during the reflow profile for the lead-free SnAgCu solder paste as shown in Figure 16. As already indicated, because of concerns for nitrogen cost in reflow PCB side

soldering, the main development work concentrated on improvements of the lead-free SnAgCu paste with improved flux formulations developed using reflow profiles in air atmosphere as already described. Discussion of board and component warpage standards and other factors influencing the head-in-pillow soldering defect As already mentioned, one of the primary factors causing the head in pillow issue is warpage of the component and/ or board. For the component, the JEDEC JEP-95 standard6 refers to measurements of component coplanarity/flatness at room temperature. The maximum package

Component side

Paste D

Paste E

Complete merging

Incomplete

Head-in-pillow defect

Figure 13. Observations in a reflow simulator for oxidized BGA/CSP sphere components with lead-free head-in-pillow SnAgCu Paste D versus the conventional SnAgCu Paste E.

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Figure 14. BGA Joint formation results for lead-free head-in-pillow Paste D versus conventional SnAgCu paste E.

Figure 15. Solder joint formation of the different lead-free SnAgCu pastes tested.

Global SMT & Packaging – December 2009 – 15


Investigation and development of tin-lead and lead-free solder pastes to reduce head-in-pillow defects

cause head-in-pillow joints if it does not deposit sufficient solder paste or if there is inaccurate print registration on the board. The BGA/CSP component placer could also be the cause of head-in-pillow defects if there is inaccurate x-y component placement or if there is insufficient downward pressure pushing the component spheres into the solder Figure 16. Occurrence of head-in-pillow soldering defect in air versus nitrogen paste deposit. Some atmosphere during lead-free SnAgCu soldering. of the remedies have been to modify stencil warpage at room temperature is 3 to 8 mils thickness and stencil apertures to increase (0.075 to 0.2 mm), dependent on the ball paste deposition to compensate for the pitch from 0.4 mm to 1.27 mm7. However, component package and board warpage component coplanarity and flatness at causing the defects10. In addition to solder room temperature could be different than paste inspection to ensure good paste at the SMT reflow temperatures at which deposits, the placement pressure in the HIP defects occur. JEITA and JEDEC pick and place machine could be adjusted standards are being developed to provide to ensure the BGA balls were correctly guidelines on the component coplanarity seated in the printed solder paste. and flatness specifications during SMT Optimization of the reflow profile reflow8,9. Some of the suggested changes also may be needed as well as the include having a maximum package already mentioned development of flux warpage during reflow of 3 to 6 mils (0.075 formulations with higher heat resistance mm to 0.15 mm) dependent on the ball throughout the reflow profile which could pitch in the range of 0.4 mm to 1.27 mm7. help to reduce the head-in-pillow defects For the board, current IPC standards on tin-lead and lead-free assemblies. refer to a maximum board flatness of In summary, the head-in-pillow defect 7.5 mils/inch7. For a large I/O BGA has many potential causes, including component, this would allow the component and board warpage, ball maximum coplanarity/warpage along coplanarity and ball oxidation, paste the board pad diagonal to be too high. volume and type, component placement The current board standards do not scale and reflow profile used. Some of correctly with package size and I/O count these, such as warpage, oxidation and and need to be adjusted accordingly. coplanarity, may be increased by the Currently, there is work underway by higher temperatures associated with iNEMI to measure board land coplanarity lead-free soldering. The typical solution at room and reflow temperatures7. Based would require a systematic approach to on this work, recommended acceptance identify the specific cause leading to the criteria will be proposed to the relevant issue which would then focus efforts on IPC standard groups. In addition, the removing/ reducing the defect rates. results of the INEMI work will be provided and input into the board and component Conclusions coplanarity requirements for JEITA and Newly developed tin-lead and lead-free JEDEC so common standards can be solder pastes have been shown to help to developed. reduce the occurrence of the head-in-pillow Some other areas to consider when a defect by controlling flux fluidity and head-in-pillow issue has occurred are to improved heat resistance of the flux used check for insufficient solder paste deposit in the solder paste. by understanding stencil aperture and However this would only be a partial stencil area/ aspect ratios as well as nonsolution as there also needs to be progress wetting of the component or board due in reducing warpage of components to potential contamination or excessive and boards during reflow by updating/ oxidation of the coating. In production, developing the industry standards related the solder paste screen printer could also to this area.

16 – Global SMT & Packaging – December 2009

Future work As already indicated more work is needed on development of standards for the component and board to reduce warpage during reflow. Also new developments are starting to occur with Halogen-free lead-free head in pillow solder pastes to develop new halogen-free flux formulations with improved heat resistance and fluxing ability. Acknowledgements The authors would like to acknowledge the support of the various persons at Koki Solder who helped to develop the test methods and formulate the new fluxes for the tin-lead and lead-free head-in-pillow solder pastes. References 1. B.T. Vaccaro et al., Plastic Ball Grid Array Package Warpage and Impact on Traditional MSL Classification for Pb-free Assembly, SMTAI conference, 2004. 2. IPC/JEDEC J-STD-020 standard, Moisture/Reflow Sensitivity Classification for Nonhermetic Solid State Surface Mount Devices, 2008. 3. R. Lathrop, BGA Coplanarity Reduction during the Ball Attach Process, SMTA Pan Pacific conference, 2008. 4. W. Lin et al., Material and Package Optimization for PoP Warpage Control, SMTA Nepcon Shanghai conference, 2007. 5. B. Smith, A Proposed Mechanism and Remedy for Ball-in-Socket and Foot-in-Mud Soldering Defects on Ball Grid Array and Quad Flat Pack Components, SMT magazine, 2006. 6. JEDEC Publication 95 (JEP 95), JEDEC Registered and Standard Outlines for Solid State and Related Devices, 2000. 7. M. Varnau, Implementing High Temperature Component Requirements for Components and PWBs, INEMI presentation, www. inemi.org. 8. JEITA-ED-7306 standard, Measurement methods of package warpage at elevated temperature and the maximum permissible warpage, 2007. 9. JEDEC JEP 95 SPP-024A standard, Reflow Flatness Requirements for Ball Grid Array Packages, 2009. 10. M. Mehrotra et al., BGA Warpage and Assembly Challenges, SMTAI conference, 2004.

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China’s export trade for gray-market handsets

China’s export trade for gray-market handsets Kevin Wang, iSuppli

China’s 3G handset market is set to grow dramatically, with iSuppli forecasting the domestic 3G market to reach 25 million units in 2010, a stunning increase of 333% from 2009. Operating alongside China’s “official” handset market is the export trade for gray-market handsets, which has also grown rapidly during the first half of 2009. Keywords: Gray Market, Mobile Telephones, 3G Handsets, China

This article was excerpted from iSuppli’s report, “China’s Export Trade for Graymarket Handsets to Reach 110 Million Units in 2009”

In a burst of activity, China’s mobile operators are stepping up their pace to build 3G networks in the country. For instance, China Telecom has completed the deployment of CDMA2000 EV-DO networks in 342 cities, and by the end of June, China Mobile and China Unicom will have installed 3G networks in 38 cities and 56 cities, respectively. China’s 3G handset market is set to grow dramatically, with iSuppli forecasting the domestic 3G market to reach 25 million units in 2010, a stunning increase of 333% from 2009. China’s 3G market will keep growing in the next five years, thanks to the continued decline of both 3G handset prices and service fees, and local 3G handsets are projected to reach 63 million units by the end of 2013. Operating alongside China’s “official” handset market is the export trade for gray-market handsets, which has also grown rapidly during the first half of 2009. Graymarket handsets, which are characterized by a fake IMEI (International Mobile Equipment Identity) number and carry no test/quality assurances or network entry permits, are not recognized by the Chinese

government. Nevertheless, Chinese suppliers of graymarket handsets have been so successful that iSuppli believes they are grabbing market share away from international handset OEMs like Nokia. About 50 million graymarket handset units were exported from China during the first half of 2009, and the total export trade for graymarket handsets will grow to 110 million units when the year finishes, considerably up from 60 million units in 2008. Despite the success of the export trade for gray-market handsets, its local counterpart, the domestic trade for graymarket handsets, has lost momentum in China. The diminished appeal of graymarket handsets for the local populace can be attributed to a number of reasons, including the lack of new handset features, which has greatly affected sales, as well as concerns among China’s consumers about quality and aftersales service. Some leading gray handset suppliers have also begun to introduce their own brands— becoming legal OEMs in the process. iSuppli estimates that the domestic industry for gray-market handsets will decline to 35

Figure 1. Gray-market handset development timeline.

18 – Global SMT & Packaging – December 2009

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China’s export trade for gray-market handsets

million units in 2009. In coming up with this report, iSuppli hopes to provide a cogent picture of the entire supply chain underlying China’s handset market, ranging from semiconductor vendors to mobile carriers, and includes forecasts for subscribers and handset shipments by technology and by feature. Also assessed is the future impact of 3G on the country. In addition, the report provides detailed analysis of the leading domestic handset OEMs, ODMs, and the top handset independent design houses (IDHs). Findings and implications China’s mobile operators are accelerating the build-up of 3G networks in the country. China Telecom has completed the deployment of CDMA2000 EV-DO networks in 342 cities, while China Mobile and China Unicom will have established by June 2009 3G networks in 38 cities and 56 cities, respectively. China’s 3G handset market is expected grow dramatically in 2010 and reach 25 million units, an amazing growth of 333% from 2009. With both 3G handset price and service fees declining, China’s 3G market will keep growing in the next five years, climbing to 63 million units by the end of 2013. China’s export trade for gray-market handsets continued to grow quickly during the first half of 2009. In fact, iSuppli believes that the Chinese suppliers of gray-market handsets are outmaneuvering international handset OEMs like Nokia. iSuppli believes that 50 million gray-market handset units were exported from China in the first half of 2009. The total export trade for gray-market handsets will grow to 110 million units this year, up from 60 million units in 2008. In comparison, the domestic trade for gray-market handsets lost its momentum within the country, stymied by the lack of new handset features that greatly affected sales, as well as concerns among consumers on the quality and after-sales service of the handsets. Some leading gray handset suppliers have also begun to introduce their own brand of handsets. in the process becoming legal OEMs. iSuppli estimates the domestic trade for gray-market handsets will decline to 35 million in 2009. While Mobile TV is a very popular feature in phones for Chinese consumers, it can be experienced only with handsets supporting TD-SCDMA, China’s proprietary 3G standard. The China export market for TV phones is growing very quickly at present, with most TV phone shipments consisting of gray-market

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Components Suppliers

Baseband CMOS Sensor LCD Module PCB

Independent Design Houses

Hardware and Software design Mechanical design

Manufacturers

Integrators

PCB SMT

Choose models

Testing

Look for buyers

Packaging

Logistic

Industry Design

Distributors

Small retailers Tier 3 cities Oversea market: Africa, South Asia and South American

MMI design

Figure 2. Gray-market handset food chain.

Figure 3. Gray-market handset sales channel.

handsets. China’s export trade for analog TV phones will grow to 20 million units in 2009, with target markets including India, the Middle East, and Africa. At the same time, China’s export ISDB-T (digital mobile) TV phone market is accelerating in growth this year, with Brazil—which adopted the Japanese Mobile TV standard in 2008— serving as the target market for Chinese suppliers of gray-market ISDB-T TV phones. Chinese handset manufacturers are actively developing the smart-phone market despite challenges to the availability and utilization of resources. Smart phones are currently being developed by not just the leading Chinese OEMs but also by Chinese handset IDH firms. For instance, HiSilicon Technologies Co. Ltd., formerly the ASIC Design Center of Huawei, introduced the K3 platform for Windows Mobile smart phones in March 2009. With the use of the K3 turnkey solution, Chinese handset IDH firms are able to introduce smart phones within three months of their development, and suppliers of gray-market handsets are able

to sell Windows Mobile smart phones at prices lower than $150. In addition to the above, many Chinese handset IDH firms are currently developing Androidbased smart phones. Handset shipments from Chinese IDH firms continued to grow in H1 2009, reaching 106.2 million units, up 23% compared to the same period last year. The growth of handset shipments can be attributed to the increased export shipments of gray-market handsets and to the rapid growth of Chinese IDH firms focusing on the overseas market, such as Eidolon, Prowave, Hexing, Sigmatel and Even. Nonetheless, the margin for gray-market handsets continues to decline because of a lack of new handset features, and IDH firms now have to compete with one another mainly on price. With gross margins for most products lower than 10%, half of Chinese IDH firms face financial losses. Gray-market handsets The export trade for gray-market handsets continued to grow quickly in H1 2009,

Global SMT & Packaging – December 2009 – 19


China’s export trade for gray-market handsets

AP: Hisilicon Hi3611 BB: NXP 5209

Gray market Retail Price < $150

OS: Window Mobile 6.1 Display: 2.8” QVGA Touch Wi-Fi GPS

Hardware: Triones Tech Co., Ltd

AP: Hisilicon Hi3611

Software: Aqumula Communications Ltd

BB: Qualcomm

BB: Infineon ULC2

OS: Window Mobile 6.1

AP: Samsung S3C2448

Display: 2.8” QVGA Touch Wi-Fi GPS

Figure 4. Windows Mobile smart phone for the gray market.

with Chinese suppliers of gray-market handsets shipping phones to every emerging market in the developing countries. Because of their low price, Chinese gray-market handsets are popular in the emerging markets, where the handset segment has not been as hard hit during the global economic crisis as that of the developed countries. Aside from low price, the gray-market handsets provided by Chinese manufacturers are rich in multimedia functionality. iSuppli believes that the Chinese suppliers of gray-market handsets are beating the international handset OEMs like Nokia at their own game. China exported some 50 million gray-market handset units during H1 2009, iSuppli believes, and the total export trade for gray-market handsets will grow to 110 million units this year, up from 60 million in 2008. The rise in exports of China’s grayhandset market contrasts with the decline of the domestic trade for graymarket handsets, which fell from 50 million in 2007 to about 40 million units in 2008. Because of decreasing profit margins, many small suppliers of gray-market handsets will exit the market. iSuppli anticipates that domestic shipments of gray-market handsets will decrease to 35 million units in 2009. The trade for Chinese gray-market handsets has accelerated and come a long way since Taiwanese handset semiconductor supplier MediaTek first entered China in 2004. At that time, it took the equivalent of 300 engineers 300 days—not to mention a huge infusion of capital—to develop a handset. In addition to baseband products, MediaTek provided its customers with reference designs, development boards, core software, and applications. Today, with turnkey

Figure 5. android smart phone for the gray market.

solutions, Chinese companies only need about 100 engineers to introduce a commercially viable product within 100 days or so. For all the advancements made by Chinese companies, however, MediaTek is not to be outdone. The company’s baseband products offer integrated MP3 playback functionality at very competitive prices, and MediaTek solutions continue to climb in popularity and gain stability in their applications. Attracted by the fast-growing domestic handset market, many capable employees left handset OEM firms, such as ZTE, to start their own design house companies. These handset IDH firms provide solutions to the players in the gray-market handset trade that do not have authorization from the government to manufacture and sell handsets in China. In turn, these gray-market handset suppliers arrange for electronic manufacturing service (EMS) companies to make handsets based on the IDH designs. The suppliers then distribute these handsets through their own sales channels to Tier 2 and Tier 3 cities, as well as the rural markets. None of the handsets are tested by regulators–which shortens their time to market and saves on testing fees. Graymarket handset players generally do not pay value-added taxes and, therefore, profit illegally from their participation in the market. Chinese handset IDH firms Handset shipments from Chinese IDH firms continued to grow in H1 2009, reaching 106.2 million units, up 23% from a year ago. The main reason for growth can be attributed to the increased export shipments of gray-market handsets market and the rapid growth of IDH firms focusing on the oversea market, such

20 – Global SMT & Packaging – December 2009

as Eidolon, Prowave, Hexing, Sigmatel and Even. Nonetheless, the margin for gray-market handsets continues to decline because of a lack of new handset features, and IDH firms now have to compete with one another mainly on price. With gross margins for most products lower than 10%, half of Chinese IDH firms face financial losses. At present, most Chinese handset IDH firms serve the gray or white box market, making the typical IDH business model one of high risk. Considering the ease with which one is able to establish a new handset IDH in China—there are hundreds of handset IDH firms at the moment in the country—a good customer base is considered the most precious resource. A small IDH could very well shut down simply because of the loss of one client. In addition to the high risks they bear, IDH firms find it hard to continue expanding their shipment levels, seeming to experience a decline in efficiency even as production volume rises. So far, the record for the biggest shipment volume from a Chinese IDH stands at 18 million units, held by Wingtech in 2007. A third problem appears to involve top management in general, said to become less experienced when the number of employees in a firm grows from, say, 50, to several hundreds. One good area for Chinese IDH firms lies in the white-box handset market, which remains strong not only in China but also the world over. Because the market is very fragmented, Chinese IDH firms can join efforts with local system integrators and compete with leading-brand OEMs. Overall, life seems good for most middle-size IDH firms that are staffed by about 100 employees and enjoy 4-5 million shipment units year. For these firms, making money is easier, and costs are not

www.globalsmt.net


China’s export trade for gray-market handsets

quite that high compared to their largersized counterparts Chinese IDH firms are actively developing smart phones. HiSilicon Technologies Co., Ltd., previously the ASIC Design Center of Huawei, introduced in March 2009 the K3 platform, compatible with Windows Mobile smart phones. With this turnkey solution from Huawei, handset IDH firms in China will now be able to introduce smart phones within three months of development. At present, suppliers of gray-market handsets sell Windows Mobile smart phones at prices lower than $150. Many Chinese handset IDH firms are developing Android-based smart phones. Shenzhen-based design house Triones Tech Co., Ltd. has successfully introduced a model with the Infineon ULC2 baseband and the Samsung applications processor S3C2448. Triones will ship this Androidbased smart phone, which costs a mere $120, to operators in Southeast Asia. Chinese handset OEMs In general, the business of Chinese OEMs focusing on the overseas market was greatly affected by the economic crisis and competition from the domestic suppliers of gray-market handsets. Nevertheless, a few business concerns continued to thrive, including those of of Tianyu, Lenovo, and Goinee, all of which benefited from the growing domestic handset market during the first half of 2009. Domestically designed handset shipments A total of 165.7 million handset units were shipped in first half of 2009, representing 19% growth from the year-ago level, by Chinese handset makers, which included OEMs, independent design houses and original design manufacturers. However, shipments from Chinese OEMs declined 31% compared to the same period last year. The design houses constitute the main growth driver for the handset shipments of Chinese makers, with Chinese handset IDH firms shipping 106.2 million handset units in H1 2009, an impressive 89% increase from the first half of 2008. iSuppli believes that total handset shipments from Chinese makers will amount to 363.5 million units in 2009, up 20% from 2008. Chinese OEMs and IDH firms will ship 122.2 million units and 224 million units, respectively, at annual growth rates of -12% and 51% for the year. The majority of growing handset shipments will be shipped to the overseas market, with Chinese handset makers exporting 244.8 million

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12675 Danielson Court, 403 | Poway, CA 92064 Phone: 858-486-1088 | www.production-solutions.com units globally in 2009. The largest part of growth will come from increasing overseas gray handset shipments. Handset IC market At present, MediaTek dominates China’s gray market for handsets, with each handset IDH using MediaTek’s solutions. Because of tight supply, the company did not even have to slash a single penny from its current price in January for all its products. iSuppli expects that MediaTek will ship about 300 million baseband units in China for 2009 and garner 83% share

of the GSM-based baseband market. One Taiwanese company, MStar, is offering baseband products for gray-market handsets. Its EDGE platform MSW8528 supports a 3-megapixel camera as well as RMVB. While MStar plans to offer low-priced products to compete with MediaTek. it is difficult to predict the company’s chance for success on this score.

Global SMT & Packaging – December 2009 – 21


Combating counterfeit components—industry initiatives for a global problem

Combating counterfeit components—industry initiatives for a global problem Nigel Burtt, Enjaybee Associates, Swindon, United Kingdom

The UK Electronics Alliance (UKEA) organised a seminar in a hotel near London Heathrow airport in October 2009 to discuss the problems the global electronics industry faces with component counterfeiting. It also announced its own online forum website which gives free access to a reporting facility and searchable database of suspect devices. The seminar detailed other industry initiatives that were in progress and eight presenters spoke on different aspects to this topic, providing important insights into what is a major global problem for our industry. Keywords: Counterfeit Components, Obsolescence, Intellectual Property Crime, Grey Market Supply, Recycled Parts, Safety-Critical Systems.

On October 15th 2009, the UK Electronics Alliance1 (UKEA) organised a seminar in a hotel near London Heathrow airport to discuss the problems the global electronics industry faces with component counterfeiting. There was a timely reminder of the seriousness of this issue presented immediately to the delegates concerning the news that three people in California had just that week been indicted by the United States Attorney’s Office for dealing in counterfeit ICs that they sold to the United States Navy2. One of these people has now in fact pleaded guilty to the charges involved3. The day was opened by UKEA’s Roger Rogowski who outlined the background behind the organisation of this event and the concept behind UKEA’s work on this topic and others which is to share information and best practice throughout the industry, whilst also aiming to avoid any overlap of initiatives and ideas. Roger mentioned that there had been some widely seen conventional media coverage concerning the counterfeiting of medicines, where the consequences are easily understood to be potentially deadly. However, the dangers associated with counterfeiting electronic components ending up in safety-critical systems, aerospace and military products and other high reliability applications are not so widely understood, but are equally serious. The first presentation was given by Adam Fletcher of the Electronics Components Supply Network4 (ECSN), who were active participants in the organisation of the event, along with the Components Obsolescence Group5 (COG.) He cited figures from the OECD in 2005 that estimated the international trade in

22 – Global SMT & Packaging – December 2009

counterfeit goods was worth around US $200 billion and a recent update6 shows that this continues to rise. As an indication of the gravity of this as it applies specifically to electronics manufacturing, he said that it was now common for the unorthodox distribution channels commonly known as “the grey market” to be referred to in the USA now as “the orange market” instead, to indicate the perceived business risk. He offered some examples where devices had been found to be functional and genuine articles but later discovered to have been re-marked to indicate an improved specification in order to increase the price, such as: a 120 ns access memory device marked as 80 ns; a commercial grade IC marked to indicate military grade performance; 4 MB flash memory marked as a 16 MB part. These type of alterations can be difficult to detect reliably and are increasingly common, but also common are parts offered as new or obsolete legacy stock that have in fact been removed from products that have been disposed of as WEEE. There has been some mainstream media coverage of illicit operations, in China for example, carrying out such “re-cycling” which focussed on the local environmental damage and human health problems this causes. It is also very clear, given the rudimentary techniques used to remove the components and the lack of proper precautions to avoid electrostatic and humidity damage, that there should be product safety concerns since we know that such devices can end up in locally made equipment or sold on the global market as legacy stock or refurbished devices for use in manufacturing operations in other countries.

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Global SMT & Packaging – December 2009 – 23


Combating counterfeit components—industry initiatives for a global problem

This topic was picked up by another speaker, Bill Goldie of Retronix, who have tackled this aspect of the problem head-on by setting up authorised operations in China to test, process and supply devices sourced locally. Their Asian facilities have found that 90% of failures of devices they have detected are from improperly recovered parts, far more than those found to be deliberately counterfeited or re-marked. Whilst several audience members were adamant that recovered devices should not be used and Asian brokers were to be avoided, certainly for their own supply chain at least, Bill pointed out that an international standard IEC62309 “Dependability of products containing reused parts—Requirements for functionality and tests” existed which indicated that the industry had already decided that devices recovered from endof-life product could be used legitimately. The problem as he saw it was rather how to detect devices obtained from improper and unauthorised recycling operations and ensure that these could not enter the supply chain. Peter Marston of Rochester Electronics noted in his presentation that the semiconductor industry was very aware of the problem and was already taking steps at a global level to fight it and raise awareness of the dangers it creates. Trade associations within the World Semiconductor Council8 (WSC) in the USA (Semiconductor Industry Association9 – SIA) and the EU (European Electronic Component Manufacturers Association10 – EECA) have worked together to create an anti-counterfeiting task force (ACTF) which has already produced some useful and successful initiatives, such as working with US and EU border and customs authorities to provide guidance and training on the extent of the problem. They have also set up a Reliable Electronics Component Supplier (RECS) authorisation scheme working with Chinese government ministries and industry bodies to promote those suppliers who do use legitimate sourcing supply chains. The ACTF have correctly identified that the Chinese government must be part of the solution and that China recognizes the dangers from counterfeiting, since such devices are more likely to find their way into locally made product sold in its own market than into imported or exported goods. Amongst the delegates there were a high proportion of people from companies working in the aerospace and military markets, understandably so, as they are

Figure 1. Bill Goldie presentation—Photo courtesy of Charles Battersby of Semelab and COG

perhaps most exposed to these problems given the critical nature of the products they manufacture and the effect on their supply chains that the RoHS Directive, and similar legislation subsequently adopted by other nations, has had. There were also two speakers from the industry, Jo Vann of GE Aviation and Dave Akhurst of General Dynamics. Jo explained how the aviation industry has a mandatory requirement for full traceability of all components and material used in flight equipment and that the declarations of reliability for avionics systems depend upon the full predicted life specification of the components employed, so the use of anything other than genuine original approved manufactured parts must be avoided at all costs. The industry has developed a recent standard to tackle counterfeiting, SAE AS4555311, which has already been endorsed by the US Department of Defence and NASA. This asks that all businesses in the supply chain develop an anti-counterfeiting plan. In Europe, the French aerospace industries association, GIFAS12, have produced a set of guidelines for component sourcing though non-franchised distributors, taking a risk assessment approach to the problem. These two documents have led some IEC standards activity with the formation of a working group, TC107-WG2 (AQEC)13, of which Jo is the convenor, and an ad-hoc group AHG3, to focus on the difficulties in controlling the spread of counterfeit parts to the avionics industry. The initial plan was simply to adopt the

24 – Global SMT & Packaging – December 2009

SAE document, but as a US copyrighted document this cannot be directly adopted into an IEC standard. In any case the group has already decided that it needs to widen the scope to include China and Asia, not just the USA and EU. Jo encouraged interested parties to contact her (jo.vann@ge.com) if they wished to participate in the work of the group. Dave Akhurst looked at practical measures an OEM can adopt to help detect suspect components and showed some examples of actual devices which were not what they claimed to be and how these were discovered. He detailed the extensive procedures and processes that General Dynamics had already put in place to tackle counterfeit component supply, which had required significant investment in equipment and corporate resources throughout its organisation. Ian Blackman of COG also gave some examples of practical strategies that businesses should adopt to protect their reputation. He said that the issue of component obsolescence, often driven by environmental regulation such as the RoHS Directive, has lead to some highly developed and lucrative counterfeiting operations. Indeed he said that it had been found that some cloned counterfeit devices actually work perfectly well in many applications, which in turn means the actual scale of the problem is impossible to accurately define. A rather different perspective on the problem was provided by Pat Farrington of the UK government agency, the

www.globalsmt.net


Combating counterfeit components—industry initiatives for a global problem

Figure 2. Final Q&A session—Photo courtesy of Mike Judd of MJ-Marketing

Intellectual Property Office (IPO). She pointed out that counterfeiting is by definition the wilful infringement of a recognised Trade Mark and as such is an offence under UK law. The IPO provides an “Intelligence Hub” to support all agencies investigating intellectual property crime and this already receives 400-500 reports each month as well as 20-30 external enquiries. She noted an interesting conundrum for the industry in that if you knowingly buy or use counterfeit parts, the title to those items does not belong to you but to the original owners of the trademark on them. It appeared that it would therefore be illegal

to sell these on or to destroy or dispose of them and since you bought or used them aware of their provenance you cannot return them to the supplier you bought them from either. An unfortunate real case of law concerning a young boy electrocuted by an unsafe non-OEM charger for a portable games console14 was a reminder of the dangers for consumers in being complicit in accepting counterfeit products. Roger Rogowski of the UKEA explained its initiative to bring all these strands of thought together in the form of a website forum portal (www. anticounterfeitingforum.org.uk/) which not only provides a repository for all sorts of related information on the subject but also gives industry the facility to report suspect devices and add these to an online database allowing others to search for parts already recorded as possible counterfeit items. You do not need to be a UKEA member to register15 to use this facility and although this is a UK initiative, they welcome users from other nations and indeed Roger showed that it already has a significant proportion of registered members from the USA, Canada, Russia, Israel and Hong Kong, for example.

The seminar was completed with a question and answer session in which all the speakers participated and a hearty round of applause was given from all the delegates. References 1. www.ukelectronicsalliance.org.uk 2. www.cybercrime.gov/aljaffIndict.pdf 3. www.cybercrime.gov/felahyPlea.pdf 4. www.ecsn-uk.org 5. www.cog.org.uk 6. www.oecd.org/ dataoecd/57/27/44088872.pdf 7. www.cbsnews.com/ stories/2008/11/06/60minutes/ main4579229.shtml 8. www.semiconductorcouncil.org 9. www.sia-online.org 10. www.eeca.eu 11. www.sae.org/technical/standards/ AS5553 12. www.gifas.asso.fr/en/index.php 13. www.iec.ch/dyn/www/ f?p=102:7:0::::FSP_ORG_ID:1304 14. www.timesonline.co.uk/tol/news/uk/ article2641861.ece 15. www.anticounterfeitingforum.org.uk/ register.aspx

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Global SMT & Packaging – December 2009 – 25


Year end assessment: the path to recovery

Walt Custer and Jon Custer-Topai

Year end assessment: the path to recovery 2009 will certainly be remembered as a very difficult year for the global electronics industry. Fortunately even the most conservative most prognosticators now see at least a subdued “recovery” in 2010. Here is some information on the current 20091109

Gradual economic recovery Below is an extract from my colleague Ed

U.S. GDP Growth with Forecast Quarter-to-Quarter

Constant $ Growth Rates Converted @ Constant Exchange Rates

World

2008

2009

2010

2011

2.0

-2.2

2.4

3.2

4.0

Positive third-quarter growth. US GDP grew at an annualized

20091125

GDP Growth

2007

Henderson’s November Electronic Market Forecast. See www.hendersonventures.com for details.

and forecasted world economic climate, plus the status and outlook for the world electronics “food chain.”

USA

2.1

0.4

-2.4

2.0

3.1

EU

2.8

0.7

-4.1

0.8

1.2

% Change 5.4 5.0

4.1

3.1 1.7

2.1

1.4

2.3

Four Tigers China

-0.7

-5.9

1.3

1.4

5.6

1.7

-2.6

3.1

3.7

13.0

9.0

8.2

9.1

8.6

Henderson Ventures 11/2009 www.hendersonventures.com

2.8 2.5 2.6 2.8

1.5

-0.7

-0.7 -2.7

-5.0 -5.4 1

2

05

3

4

1

2

06

3

4

1

2

07

3

4

1

2

08

3

4

-6.4 1

2

09

3

4

1

10

2

WSJ: Economist Panel Consensus Forecast 10/08/09, DOC update 11/24/09

Chart 1. 20091001

2.1

1.2 0.1

0.0

Japan

Oct 8, 2009 Forecast

3.2 3.6

3.0

Chart 2.

World Electronic Equipment by Type 2008 BUSINESS COMMUNICATION

INSTRUMENT

250 22.1%

2.2%

INDUSTRIAL

8.4% 9.8%

$ Billion

Revenue, Net Income & Inventory

-9%

200

100 GOV MILITARY

6.6%

Electronic Equipment Suppliers Composite of 61 Public Companies

150

10.1%

12.8% CONSUMER

20091125

50

28.0%

0 -50

AUTO COMPUTER Electronic Outlook 10/09

$1,712 Billion @ 2008 exchange

Chart 3.

26 – Global SMT & Packaging – December 2009

Revenue Income Inventory

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 00 01 02 03 04 05 06 07 08 09

137 142 146 154 130 136 128 136 120 123 124 136 125 131 137 154 147 155 152 170 157 162 163 180 167 175 179 197 181 193 201 224 203 213 212 206 177 186 193 10 10 9 5 -3 -24 -15 -2 2 -12 -2 0 5 4 7 10 10 11 11 14 12 12 12 17 13 10 15 18 15 19 17 16 16 15 11 -7 8 11 14 59 61 65 67 68 61 53 48 45 43 42 39 38 39 37 38 40 41 41 41 41 41 42 42 44 47 49 47 47 50 51 51 53 54 54 50 46 44 44

Computer 13, Internet 2, Storage 9, Telecom 6, SEMI 14, Medical 4, Instruments 7, Military 6

Chart 4.

www.globalsmt.net


Year end assessment: the path to recovery

But the recovery will be subdued. The longest and deepest recession in post-war history has come to a close. However, the global recovery will be subpar. World GDP will grow by only 2.4% next year, after a 2.2% contraction during 2009. Moreover, the 2010 results will be distinctly unsynchronized. Asian countries will produce average gains in the vicinity of 5% with the help of a 9.1% burst from China. In essence, the advanced economies will create a drag on global growth. For example, the US will achieve only a 2.0% gain next year, while West Europe produces an even leaner 0.8% increase. And Japan will produce only a 1.3% advance.

rate of 2.9% in 3Q’09 (Chart 1). The Asian economies grew more vigorously with the help of the Chinese economic flywheel. For example, Singapore GDP was up 14.9%, while South Korea was ahead by 12.3% during the third quarter. China, itself, does not publish seasonally adjusted quarterto-quarter (q-q) growth rates, but its economy was up a booming 8.9% on a year-to-year (y-y) basis. The European Union (EU) statistics are not yet available, but positive q-q growth can be anticipated for the third quarter, after a flat second quarter performance. And given that global interest rates are at historic lows, and much of the fiscal stimulus is yet to be spent, a sustainable economic recovery is reasonably assured, as illustrated in Chart 2.

A high coefficient of economic drag. History suggests that steep economic declines are followed by vibrant recoveries. Not this time

Global "Electronic Foodchain" Growth 3Q'09 vs. 3Q'08

20091125

Electronic Equipment Military Business & Office Instruments & Controls Medical Telecom Internet Computer Storage SEMI Equip

-9

1.6

-6

-25

-30

-15 -13 -22 -22

-25

1.5

1.3

-4

1.2 1.1 1

-9

0.9 0.8

3

-19 -20

0.7

Europe = Eurostat EU27 NACE C26 (computer, electronic & optical products)

0.6

-15

-10

-5

0

5

1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 02 03 04 05 06 07 08 09 00 01

10

% Change

CALENDAR YEAR

US$ equivalent at fluctuating exchange; based upon industry composites including acquisitions

Chart 5. 20091103

Taiwan/China Europe Japan USA 0

3/12 rate of growth in local currency

1.4

-12

-22

Global Electronic Equipment Shipment Growth

6

-23

Semiconductors (SIA) Passive Components Component Distrib EMS-Large EMS-Medium ODM PCB PCB Process Equip

20091125

4

-15

-21

around. The lingering hangover from the financial crisis will result in tight lending policies well into 2010 and beyond. Banks will be intent on rebuilding their base capital with the help of impending risk-reducing legislation. Moreover, the interest rates charged for a given level of risk will be higher than what was demanded in precrisis days. The resultant increase in borrowing costs will cut into capital investment spending. Potential consumer outlays will also be undercut by more restrictive lending policies. And because consumers have seen their aggregate wealth sharply reduced by declines in stock market and home equity values, they will be refocused on rebuilding retirement nest eggs. Moreover, high levels of unemployment, which will extend far into 2011, will prevent a strong consumer led recovery.

Chart 6.

Total Semiconductor Shipments to an Area Monthly Shipments - Reporting Firms

100%

9/09 17.3%

Japan 80%

13.0%

Europe

60%

16.7%

20091111

Taiwan/China Electronic Equipment Producers Composite of 101 Manufacturers NT$ (billions)

700 600 500 400 300

40%

N America

Asia grows from 20% to 53% market share

20%

Asia 0% 159159159159159159159159159159159159159159159 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 SIA website: www.sia-online.org/

Chart 7.

www.globalsmt.net

200

53.0%

2008/2007 up 8%

100 0

1 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 911 04 05 06 07 08 09 02 03

CALENDAR YEAR Taiwan listed companies, often with significant manufacturing in China

Chart 8.

Global SMT & Packaging – December 2009 – 27


Year end assessment: the path to recovery

produced globally (Chart 3). A composite gradually reducing monetary and of 101 large OEMs (with combined sales fiscal stimuli to prevent a jump in of almost 50% the $1.7 trillion total) saw inflation, a challenge also faced by many of the world’s Taiwan ODM Companies economies. But Composite Sales of 10 Large Manufacturers in the short term, the danger 500 NT$ (Billions) is not high, 450 2008/2007 given elevated 400 unemployment +2% 350 rates and lofty 300 levels of excess 250 manufacturing 200 capacity.

Consequently, the global economy will underperform its potential in 2011, when world GDP grows by only 3.2%. Chinese role is crucial. Within the next two years, China will overtake Japan as the world’s secondlargest economy. Consequently, Chinese economic policies will have an even greater impact on global economic performance. During 2009, Chinese fiscal and monetary policies have been crucial in propping up Asian GDP. Relaxed lending standards, subsidized durable goods purchases and soaring fixed investments have been responsible for a continuation of robust economic gains. For example, during the first three quarters of 2009, fixed investment was up 33.3%, while retail sales surged by 15.1%. China is now facing the delicate task of

20091111

150

Electronic equipment market In 2008, approximately US $1.7 trillion of electronic equipment was

Large EMS Providers Composite of 11 Public Companies

20091125

Revenue, Net Income & Inventory

40

50 0

1 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 911 98 99 00 01 02 03 04 05 06 07 08 09

CALENDAR YEAR Company Financial Releases Asustek Computer, Compal Electronics, Foxconn, Innolux Display, Inventec, Inventec Appliance, Lit On Technology, Mitac International, Quanta Computer, Wistron

Chart 9.

20091103

Global Semiconductor Shipments 3-Month Growth Rates on $ Basis

-11% Guidance Q4'09/Q4'08

US$ Billions @ fluctuating exchange

100

-22%

3/12 Rate of Change

1.6

1

4

1.2

11

0.8

0

Revenue Income Inventory

9

7

1

10

-10

10

5

30 20

8

6

3

2

1.4

0.6

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 00 01 02 03 04 05 06 07 08 09

13 15 18 21 19 17 15 16 15 16 16 17 15 15 17 19 18 19 20 22 20 21 22 25 22 24 26 30 25 27 29 33 28 29 33 31 22 23 26 28 0 -0 0 1 0 0 -0 0 -0 -0 -3 -0 0 -3 -0 0 0 0 0 -0 -1 0 1 1 0 1 1 1 1 1 -0 0 0 1 0 -7 -1 0 1 7 9 12 13 13 12 10 9 8 7 7 7 7 7 7 7 8 8 8 8 8 8 9 9 10 12 13 12 13 12 13 12 12 13 13 11 9 9 8

Benchmark+Pemstar, Celestica, Elcoteq, Flextronics+Solectron, Foxconn, Jabil, Plexus, Sanmina-SCI, Sypris, Universal Scientific, Venture Mfg

Chart 10.

0.4 159159159159159159159159159159159159159159 159159159159159159159159159159159159 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

Total $ Shipments from All Countries to an Area SIA website: www.sia-online.org/

Chart 11.

20091103

20091122

Monthly Semiconductor Shipments $ Billions (3-month average) 9/08

9/09

% CH

Americas

3.21

3.46

+ 7.8%

Europe

3.48

2.62

-24.8%

Japan

4.26

3.62

-14.9%

Asia Pacific

12.02

10.94

- 8.9%

Total

22.96

20.64

-10.1%

SIA www.sia-online.org/

28 – Global SMT & Packaging – December 2009

World Semiconductor Sales Total 350

$ Billions

-11.4%

300

255

250

+13.0% 255

279

296

300

2012

2013

226

200 150 100 50 0 Commodity Memory Other Semiconductor

2008 38 218

2009 36 190

2010 47 208

2011 52 227

53 243

49 250

Gartner 11/16/09

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Global SMT & Packaging – December 2009 – 29


Year end assessment: the path to recovery 20091004

2008 World Rigid & Flex PCB Production by Geographical Area

20091117

Regional PCB Shipment Growth

(US$ M @ Average 2008 Exchange) Japan

7.2% 8.1% 0.7% 7.0%

31.4%

10.2%

China/HK

1.7 1.6

Europe

22.5%

1.5 1.4

N America

1.3 1.2 1.1 1

ROW

0.9 0.8

Rest of Asia

12.9%

0.7 0.6 0.5

S Korea

0.4 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 02 03 04 05 06 07 08 09 00 01

Taiwan

CALENDAR YEAR

Total: $50.8 Billion

IPC 9/2009

Sources: IPC, JPCA, Taiwan/China composite; modified SIA chip shipments to approximate Europe

Chart 14. 20091125

Chart 15.

World PCB Monthly Shipments

20091030

World PCB Shipments

Converted @ Constant 2008 Exchange Rates

3500

Taiwan/China Europe Japan N America 0

3/12 rate of growth in local currency

N America

Europe

Japan

Converted @ Constant 2008 Exchange Rates

$ Billion

60

SE Asia

Assumptions: Europe = composite European SIA & local PCB assoc data Japan & N. America from JPCA & IPC data Taiwan/China based upon 44 rigid & flex company composite Rest of Asia growth = Taiwan/China 44 company composite Data scaled to match Henderson Ventures annual totals 2007 based upon sum of monthly totals

3000 50

2500

-19%

2000 40

1500 1000

30

500

31.6

20

0 1 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 911 01 02 03 04 05 06 07 08 09 99 00

Source: Custer Consulting Group

CALENDAR YEAR

31.2 29.4

31.7

37.6 42.9

51.7 54.3 51.1 41.3

1 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 3 5 7 9111 01 02 03 04 05 06 07 08 09 10 99 00

CALENDAR YEAR Source: Custer Consulting Group - synthesized from Henderson Ventures annual estimates and N. American, Japanese & Taiwan/China monthly PCB shipments and SIA European chip shipments

Chart 16. 20091125

38.6

Chart 17.

World Electronic Equipment, PCB & Semiconductor Shipments

20091109

Electronic Equipment Production Growth

Current $ Growth Rates Converted @ Constant Exchange Rates

Converted @ Constant 2008 Exchange Rates

World

2007 7.2

1.3

USA

-0.9

-0.6

1.1

W Europe

-0.6

0.9

Japan

0.7

Four Tigers

3/12 rate of change

PCB

1.5

"0" Growth

SIA

El Equip

0.5 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 02 03 04 05 06 07 08 09 00 01 CALENDAR YEAR

2010 6.1

2011 8.5

-6.3

3.7

5.5

-3.3

-18.3

4.8

7.3

-0.1

-11.6

-24.6

3.8

8.3

7.8

-1.2

-16.5

5.8

9.3

20.7

4.1

-6.5

8.7

11.4

Henderson Ventures 11/2009 www.hendersonventures.com

Source: Custer Consulting Group

Chart 18.

revenues decline 9% in 3Q’09 vs. 3Q’08 (Chart 4). OEM performance varied by electronic equipment type—military and

China

2008 2009 0.5 -11.7

Chart 19.

medical equipment actually increased while SEMI and telecom equipment and instruments & controls all dropped

30 – Global SMT & Packaging – December 2009

over 20% in 3Q’09 compare to the same quarter a year earlier (Chart 5). More “distant levels” of the “electronic

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Year end assessment: the path to recovery

food chain” (active and passive component suppliers, EMS providers and PCB process equipment manufacturers) had even larger revenue declines. In contrast the Taiwan-listed ODMs (original design manufacturers) enjoyed a 3% revenue increase. Regional electronic equipment production growth rates Electronic equipment production growth varies by region with SE Asia being currently “flat” year-on-year, the USA down 3%, Europe off 20% and Japan down 26% when comparing the latest available 3-month sales vs. the same period in 2008 (Chart 6). This current “recovery” (year-on-year growth) should not be confused with normal seasonality (back-to-school and Christmas buying), which is especially significant with consumer products. Taiwan & China in normal seasonal downturn Using world semiconductor shipments as a metric (Chart 7), SE Asia produces (electronically assembles) about 53% of the world’s electronic equipment. Because much of the high volume, Asian-made products are “consumer” items (including PCs, mobile phones, audio/visual products and games), sales are typically very seasonal, with production peaking in October or November of each year. October revenues for a composite of 101 Taiwan-listed OEM companies, often with manufacturing in mainland China, have now passed their 2009 “pre-holiday” peak and are headed into their normal winter decline (Chart 8). Taiwan-listed ODMs (original design manufacturers) are behaving similarly (Chart 9). EMS companies The large EMS providers (Chart 10) have been hard hit by this current recession. They saw sales “bottom” in 1Q’09 but still had a 22% revenue decline in the third quarter of 2009. Semiconductors The present global semiconductor business cycle (Chart 11), although still having negative 10% “growth” in September, appears to be headed toward positive territory (3/12 > 0) by early 2010 at the latest. Surprisingly N. America had already reached a 7.8% increase by September 2009 (Chart 12). Gartner’s most recent semiconductor forecast is given in Chart 13.

growth rates (all negative) are given in Chart 15 and actual monthly regional PCB production is provided in Chart 16. Chart 17 consolidates the data from Chart 16, to create total monthly global sales. Using actual values through early autumn 2009 and then assuming a normal seasonal downturn at year end, it predicts a 19% PCB revenue decline from 2008 to 2009.

Printed circuit boards In 2008 approximately US $50.8 billion of rigid & flex PCBs were produced globally (Chart 14). Recent regional 3-month (3/12)

Looking forward Chart 18 gives the current global business cycles for semiconductors, PCBs and electronic equipment. All point to growth (3/12>1) by early 2010. Chart 19 provides

www.globalsmt.net

Ed Henderson’s most recent electronic equipment growth forecast by region by year. Happy Holidays, Jon & Walt Walt Custer is an independent consultant. He can be contacted at walt@custerconsulting.com or visit www.custerconsulting.com. Jon Custer-Topai is vice president of Custer Consulting Group. He can be contacted at jon@custerconsulting.com.

Global SMT & Packaging – December 2009 – 31


2009 Rep & Distributor Review

2009 Rep & Distributor Review This year we have an impressive list of top distributors and reps from around the world who have sent us their view on what the future holds for us in 2010. As the heart and soul of our industry, they are in a unique position to see the business and technical issues that will affect their region going forward. After a very difficult 2009, I am happy to see that the consensus is for a much stronger 2010. —Trevor Galbraith.

APS WittcoSales, Inc. Covering Southern California, Northern California, Southern Nevada and Baja Mexico Lines: Samsung, MIRTEC, ACE Production Technologies, Acculogic, SEIKA, Aqueous Technologies, QA, VJ Electronix, Exatron, Bliss Industries, RMD Instruments, R&D Technical Services, AIM Solder Products, FKN Systek, Protektive Pak, WSI, Transforming Technologies, AVEN, Nederman, Static Tech apswittcosales.com

“Selective soldering can do the job of two to four hand soldering people with better quality and consistent results.” ARK Manufacturing Solutions Covering Arizona, New Mexico, Southern Nevada, and the state of Sonora, Mexico Lines: Aqueous Technologies, Photo Stencil, Cobar, Bliss Industries, Cyberoptics, Control Microsystems, PMR, Essemtec,

How do you expect to see business performing in your territory over the next 12 months? I expect to experience a definite upturn in business activity in our territory over the next twelve months. The main reason for this is that during the past economic climate, customers have been cautious about the necessity for incurring additional costs within their company. In light of the more optimistic financial outlook for 2010 and to keep up with technology, these customers will find it necessary to update their manufacturing capabilities to stay in business. Tom Wittmer What are the technical trends in your industry? Present technology requirements have forced our customers to acquire equipment that is capable of supporting the miniaturization and accuracy necessary for new technology. In addition to this, concentrating on the medical and military market place and their technology requirements both today and in the future have opened up several doors of opportunity.

How do you expect to see business performing in your territory over the next 12 months? I anticipate uptick in business. Many of my customers have put off buying this year not knowing if their customers will continue to order from them. Also hopefully the banks will start to loan money for cash flow and equipment. What are the technical trends in your industry? Customers will continue to look at AOI and selective soldering. These products are now easy to use and easy to justify. AOI takes Ken Masci the place of human inspectors that cannot easily inspect solder joints for 0402 and 0201 size components. Selective soldering can do the job of two to four hand soldering people with better quality and consistent results. These machines can also solder items that a wave solder system is unable to do. And in the short time I have been promoting vapor phase reflow, I have found a lot of interest. This process has come full circle, and if it catches on it will likely be the “I have to have at least one of these” technology. How do you expect to see business performing in your territory over the next 12 months? We realized an uptick in business with a lot of our customers starting about two and a half months ago. However, equipment orders trailed by another month and a half. A higher percentage of customers are now talking about new projects or an increase in volume for existing products. Along with this is talk of new equipment purchases for 2010, with the majority being planned for the third and fourth quarters. These purchases are primarily addressing existing weaknesses, whether they are to replace or upgrade old equipment to gain better performance and higher yields or to add new capability to their manufacturing process.

32 – Global SMT & Packaging – June 2009

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2009 Rep & Distributor Review

RPS Automation, Siemens, Simplimatic, Octation, Speedline, Focal Spot

dmurrin@ARKmfgsolutions.com

Circuit Technology Covering North Carolina, South Carolina, Tennessee, Alabama, Georgia, Mississippi and Florida Lines: JUKI, Speedline Technologies, PACE, SPEA, Simplimatic Automation, YESTech, Cogiscan, ECD, Eubanks, Aqueous Technologies, CABI, Loctite, Multicore, Excelta, StaticWorx, South Tek Systems, IPC Training Center, HEPCO, MICROCARE, CCI, Botron, MEIJI Techno, MET circuittechnology.com

“The most encouraging development I see has nothing to do with technology.” Cyncrona Covering the Nordic and Baltic states

Lines: FUJI, Asymtek, Omron, SMT, Acculogic, FeinFocus, Aster, Nutek, Hysol, Loctite, Henkel, Multicore, JBC, Aqueous Technologies, Kyzen, Optilia, Valor, Cablescan, Wacker Silicons, BeamWorks, Systronic, Eubanks, Thermonics, Hirox, McDry, Artos, A/T/F

www.globalsmt.net www.globalsmt.net

What are the technical trends in your industry? The new business trends are largely solar and LED related. These are driving a myriad of new applications for existing equipment as well as new equipment developments. Pertaining to the balance and majority of our customers, there is a focus on gaining manufacturing efficiencies and higher yields. Equipment suppliers are meeting these requests with fresh approaches to their respective portion of the manufacturing process. The typical result brings new equipment that is more cost effective, more efficient with resources, faster than its predecessor, more accurate and repeatable, and most often includes new features and benefits. All this effectively meets our customer’s needs for shorter production cycles with higher yields while increasing their profit margins. I am confident that the companies that we represent have invested wisely, during the recent economic slow down, in developing these enhancements for their product offerings to ideally position us with the optimal solutions for our customer’s rising needs! How do you expect to see business performing in your territory over the next 12 months? I am cautiously optimistic regarding 2010. The activity and interest level in capital equipment has picked up significantly in the last six weeks, and if all the interest turns into orders, 2010 will be good. Most of these projects were active in 2009 but then were put on hold in Q4 last year. Demand is now pent up over 12 months, and the ROI is real (less than two years), so the new equipment certainly makes sense from a business case. However, release of the funds is still not a reality yet. The good news is that many of the companies are busy again and overall business prospects look good.

Bob Doetzer

What are the technical trends in your industry? The most encouraging development I see has nothing to do with technology but with economics. I see many products coming back from “lower cost” regions of the world because in the end, costs were not so low. Poor quality, slower time to market, communication barriers and problems with ECOs all contribute to the hidden cost of not building the products in the US. For example, I am working with an OEM who went from building their product in house to completely built outside in Asia and is now buying all new SMT and TH equipment to build entirely in house again. This decision is driven by the higher than estimated true cost and quite honestly, the low cost of equipment right now. This is a great time to be a buyer of anything—cars, boats, beach property and assembly equipment. Regarding technology, we do see further miniaturization (no 01005s yet though!), more CSPs, QFNs, flip chip and PoP and an increased demand for product traceability. So machine accuracy and repeatability is of greater concern and actually driving some new equipment demand. Green technologies such as solar PV panel assembly and LED lighting assembly are also hot. These two technologies pose unique challenges that we have been able to customize solutions for with minor adjustments to our standard equipment. Lead free has not yet taken over as I would have expected, only accounting for @ 50% of the PCB assembly in the Carolinas. How do you expect to see business performing in your territory over the next 12 months? I don’t expect the next year to be much better than 2009. We do see some signals that our customers are getting more in their order books, but most of them will probably wait with investment in capital equipment as long as possible. Exchange is not done for capacity reasons but more for technical and age reasons. Cyncrona is now doing the opposite from most of our colleagues, increasing our customer meetings and our presence on the market.

Klas Lindahl

What are the technical trends in your industry? Inspection is still on the top list for many customers, especially now that Omron has released a real Auto Teaching option. It really keeps down the programming time and gives a better result. We see the request for cleaning and conformal coating of PCB assemblies increasing,

Global SMT Global & Packaging SMT & Packaging – December – June 2009 2009 – 33 – 33


2009 Rep & Distributor Review

cyncrona.se

“Cyncrona is now doing the opposite from most of our colleagues.” E-Tek Europe Covering the United Kingdom, Hungary, Romania, Ukraine

Lines: A.C.E. Production Technologies, Aqueous Technologies, Best, BPM Microsystems, Camalot, Electrovert, EVS International, KIC, Mekko, MVP, Novatec, Optilia, Purex, Seica Test Solutions, Speedline etek-europe.com

Europlacer Distribution Covering the United Kingdom Lines: A.C.E. Production Technologies, Aqueous Technologies, Best, BPM Microsystems, Camalot, Electrovert, EVS International, KIC, Mekko, MVP, Novatec, Optilia, Purex, Seica Test Solutions, Speedline europlacer.com

Europlacer Distribution France Covering France Lines: A.C.E. Production Technologies, Aqueous Technologies, Best, BPM Microsystems, Camalot,

especially in the military, space and tough environment area, and I’m sure it will continue to increase—the benefits, with higher reliability and less error, are so much higher than the process cost. The interest around vapor phase technology is also increasing. More and more manufacturers are popping up, which is a sign of an increasing market. Decreasing of voids is getting more important in some applications. In pick and place, more and more functions are moved into the machines. Earlier dispensing was possible but now, with Fuji’s new release, even AOI pre-soldering can be done directly in the machine. In the future I think we will see flip-chip and naked chip assembly as well. How do you expect to see business performing in your territory over the next 12 months? I think we are definitely through the worst of this recession, Etek’s range of customers are now almost back to full production equivalent to 2008. Our customers are starting to look at budget for new equipment in Q1 & Q2, 2010. This is really an exciting time to be involved in the European electronics industry. Some of our competitors did not make it through the hard times of 2009, which left a great opportunity to pick up both service & sales personnel to grow Etek’s technical team. Etek has also managed to position itself in 2009 to be prepared for the boom of 2010.

Mike Nelson

What are the technical trends in your industry? At Etek we are seeing a great deal of investment in new equipment starting in October 2009, mainly in AOI, cleaning, contamination testing, screen printing, fume extraction and x-ray. High reliability products have been the least affected during this downturn, but even our automotive and aviation customers are back with a bang....

How do you expect to see business performing in your territory over the next 12 months? This is hard to answer...I have visited many manufacturing companies in the last few months, some of whom are very busy and others are finding the current economic climate very challenging. However, our pick and place machines are ideally suited to the way in which UK manufacturing has gone in the past few years, so I believe that we are ideally placed to benefit from the market recovery in the SMT assembly business. Of course as well as manufacturing pick and place machines (Europlacer) and stencil printers (SpeedAndy Jones print), we are now becoming more generally accepted as a distributor of other complementary products within the market, from AOI, paste inspection, reflow (vapour phase and conventional) and on to new product lines that we are adding (selective soldering, PCB laser marking and barcode placement). What are the technical trends in your industry? In the last year, technical trends have taken a bit of a back seat in my experience. This year seems to have been a year of consolidation, with companies more interested in maximizing their existing capital investments, and to squeeze as much as possible without spending too much! That being said, there has been some movement toward inspection of product, and we have a great deal of interest in AOI. How do you expect to see business performing in your territory over the next 12 months? We believe that the French market will be good in 2010 because for a few reasons. Since October, we’ve seen investments in the electronics industry coming back. The French government is helping smell to medium sized companies finance their investments through a dedicated public structure, OSEO. Subcontractors are seeing their order books increasing again, and they’re starting to have a medium-term view on their production plans. Finally, pick

34 – Global SMT & Packaging – December 2009

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Title

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Global SMT & Packaging – December 2009 – 35


2009 Rep & Distributor Review

Electrovert, EVS International, KIC, Mekko, MVP, Novatec, Optilia, Purex, Seica Test Solutions, Speedline europlacer.com

Hattas & Associates Covering Illinois, Wisconsin and Iowa

Lines: JUKI, EKRA, FocalSpot, ViTechnology, SEIKA, PSA, Production Solutions, PROMATION, Finetech, ON SITE Gas Systems, UNITDESIGN, PROSTAT Corporation, Cogiscan, Integrated Ideas & Technologies, Geneca

hattasandassociates.com

Horizon Sales Covering Michigan, Ohio, Indiana, Kentucky, Western Pennsylvania and the greater Chicago area

Lines: Aqueous Technologies, Bliss Industries, Count On Tools, FCT Solder, Finetech, FocalSpot, Insulfab, JUKI, PRO-MATION, REHM, RMD Instruments, Seika, Yxlon horizonsales.com

“I have several accounts that are bringing work back from ‘off shore sources.’”

and place machines currently in production are usually seven to ten years old and need to be updated, particularly with the increase in use of 0201 components.

Alain-Michel Ceretti

What are the technical trends in your industry? Big volumes left France for low-cost countries. Today, customers need more “four wheel drive” equipment than Formula 1 machines. A contractor can’t afford refuse business because the volume is too low for his high-speed machine. Flexible machines covering 100% of the component range, including exotic applications, is THE key to surviving the PCB business right now. Small and medium companies will have to invest in AOI in 2010 to remain competitive. How do you expect to see business performing in your territory over the next 12 months? We are currently experiencing a rush of quoting activity. Some companies are taking advantage of the 2009 tax breaks. It is still a buyer’s market with many exceptional deals available. In this area, we have a lot of smaller EMS houses who are saying they see signs of increased business for 2010 and are expecting to expand, of course dependent on how the economy responds in the next few months. Dave Hattas What are the technical trends in your industry? More companies are preparing for smaller parts, 0201s are more prevalent, and some interest in 01005 as well as µBGAs. Also, there is renewed interest in vapor phase reflow and rework—the chemicals are now environmentally friendly, and it allows easier profiling, more uniform temperature gradients and overall less operating costs. Also, companies are looking for ways to increase production with less set up time, utilizing such products as RED-E-SET board supports, and intelligent shop floor software solutions.

How do you expect to see business performing in your territory over the next 12 months? I have seen a noticeable pick up in activity the last quarter of ‘09 and expect to see the same for 2010. Military and medical spending still seems to be strong while industrial controls and instrumentation are moderate to weak. I have several accounts that are bringing work back from “off shore sources,” which will consume current capacity and force some new capital equipment spending. What are the technical trends in your industry? Dave Trail 0201s and µBGAs are in wide use now. We are starting to see some package on package (PoP) use but it is still low volume and the manufacturing process are still being developed. We are seeing a resurgence of PCB cleaning due in part to lead free but mostly due to further miniaturization leading to electrical interference concerns. The need for full traceability is gaining momentum and counterfeit components are a big concern. How do you expect to see business performing in your territory over the next 12 months? Most of my accounts are guardedly optimistic about business during the next 12 months. They are seeing an increase in quoted business. I think business will increase by the end of first quarter, early second quarter of the coming year. What are the technical trends in your industry? Smaller components, more traceability, more complex products, lower volumes, higher mix, faster changeovers.

36 – Global SMT & Packaging – December 2009

Vern Emery

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Interview Title

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Global SMT & Packaging – December 2009 – 37


2009 Rep & Distributor Review

INTERCEM KOREA Ltd. Covering South Korea Lines: ICON, Assembléon, Heller, YESTech, Stoelting, Kester, Kyzen, KIC, Palomar, V-Tek

intercem.co.kr

“The major rising markets will be solar and LED.” Kasion Automation Ltd Covering China

Lines: Assembleon, BTU, Cyberoptics, ECD, Practical Components, Kyzen, SPEA, BPM Microsystems, VJ Electronix kasion.com

“Business performance in China may be double what we did this year.” Kirby and Demarest Covering the Pacific Northwest: OR, WA, ID, MT and BC

Lines: Air-Vac, Asymtek, Aqueous Technologies, Bliss Industries, Cobar, DATA I/O, Essemtec, Fein-Focus, KIC, MVP, Milara, PRO-MATION, Pillarhouse, Seika Machinery, Universal Instruments

kirbydemarest.com

How do you expect to see business performing in your territory over the next 12 months? Forecasting the next 12 months from the last six months in Korea, I believe that investment in production will be slightly improved. The major rising markets will be solar and LED. Machine investments for IT industries, including LCD, mobile phones, and computers, etc., will be staidly optimistic with quality-oriented requirements, so local made or developed machines will be a new chance for market expansion. The investment by the local companies will be done for the production lines at local Korea markets as well as the plants oversea to meet the globalized market needs.

J.C. Lee

What are the technical trends in your industry? Per the global requirement of “GREEN” earth, many new solar cell or LED products will be introduced to the market. Investment in semiconductor packaging will be focally done in the advanced packaging area, like flip-chip assembly and wafer level packages. Also, many trials and process innovation to reduce the process costs of flip-chip assembly. Many conventional packaging devices, requiring wire bond and die bond process, will keep converting to the wafer level packaging or flip chip devices.

How do you expect to see business performing in your territory over the next 12 months? Since early 2009, one of the strongest drivers for the market has been the domestic economic policy from our central government at Beijing, which has been successfully promoting a very active and large demand in the domestic market for electronic products, especially in communication equipment and products such as mobile phones, computers, and also in electrical home appliances including LCD television sets, washing machines as well as refrigerators for inland villages. This policy and situation will keep Abby Tsoi happening in 2010, continuously stimulating the electronic industry market directly and indirectly. On the other hand, with a slow recovery from the global financial crisis, domestic market demand for electronic products from western countries, including America and Europe, will be increased by 30% or even more in the year 2010. We can predict the business performance in China in 2010 may be double of what we did this year. What are the technical trends in your industry? Many customers this year have sought high-end technology in production, such as high precision component rework systems, precision conforming coating technology and extra fine pitch pick and place equipment. Miniaturization will be one of the major technical drivers in Chinese electronic industry market. How do you expect to see business performing in your territory over the next 12 months? No doubt that this last year or so has been tough to say the least, but having been in business for 36 years there are some rewards; we’re still out there and doing quite well. I’m quite optimistic about the prospects for 2010. Slowly but surely, OEMs and subsequently ESPs are moving forward despite the stagnant economy. A “tipping point” is on the horizon, and once that is reached, there will be a rapid domino effect of companies investing in new technologies and the capital equipment necessary to support those efforts. Well-managed companies have been using this slow time to refine their existing processes and quality expectations, and are ready to pounce on new opportunities once the upturn occurs.

Steve Kirtby

What are the technical trends in your industry? Some of the technical trends in play include OEM designs in 3D/TSV technology and the packaging challenges that result from those efforts; assembly processes using stacked die,

38 – Global SMT & Packaging – December 2009

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2009 Rep & Distributor Review

POP; and the automation of placing odd-form components usually relegated to hand-add/ push line solutions. MarTec Incorporated Covering Alabama, Georgia, Mississippi, and Tennessee & a limited product range in North and South Carolina Lines: ASC, AEGIS Industrial Software, AIR-VAC, Cablescan, Cencorp, Eubanks, Hepco, HoverDavis, Indium, JNJ Industries, JUKI, Nortec, PRO-MATION, SCS, SPEA America, Speedline/ MPM/Camalot/Electrovert, Stone Mountain Tool, Vision Engineering, YesTech, ZESTRON America

How do you expect to see business performing in your territory over the next 12 months? We have seen a steady increase of orders and activity over the last three months. Our team feels that this trend will continue through the 2010 year. The main increase has come from military, small and medium CEMs. We are also starting to see an increase in the automotive industry. What are the technical trends in your industry? We are seeing more products with micro BGAs and dual row Bill Harp QFNs. This requiring the use of more type 4 and type 5 solder paste. We are also continuing to see more through hole parts as close as 1 mm or less from SMD parts, which is increasing the use of selective soldering over conventional wave with pallet.

martecincorporated.com

pb tec Covering Germany, Austria, Switzerland and Eastern Europe

Lines: BPM Microsystems, SMH Technologies, Hover-Davis, MIRTEC, Sony, Cogiscan, Indentco, AIM-D, Transition Automation

pbt.de

Seika Machinery Covering the United States Lines: Anritsu, Furukawa, HIOKI, Hirox, McDry, PONY, SAWA, Sayaka, Young Jin, YS Material Handling

seikausa.com

www.globalsmt.net

How do you expect to see business performing in your territory over the next 12 months? Although 2009 was a really hard year for our industry and as well for our company because of the financial crisis, we can already see a growth in requests from our customers. Productronica was very successful for us, and we had a very good quantity and quality of leads. Based on our conversations with customers and on the requests we have, we are optimistic that 2010 will be a much better year for us. The level of 2008 will not be reached again as 2008 was an extraordinary successful business year which will not happen too often. Our estimation is that our sales will grow again up to the level of 2006/2007.

Reinhard Nitz

What are the technical trends in your industry? We see a clear trend in technologies for the production of LEDs and systems for alternative energies as well as the production of electric cars. More and more companies Europe are going into this direction and we will provide them with the fitting technologies and the necessary know-how. Furthermore, we see that most companies have to install a traceability concept in their production and we can support them with software and hardware for this. How do you expect to see business performing in your territory over the next 12 months? North American electronics assemblers will adapt, recover and become leaner and wiser in the areas of where to invest time and dollars to obtain new business, service existing customers and select equipment to purchase to fulfill current and new projects. These companies will have higher expectations of their suppliers to meet budget and service requirements in this competitive market, though quality and reliability will still remain important factors. Isao Muraoka What are the technical trends in your industry? Lead-free and RoHS assembly processes are still growing for our customer base, as are requirements for equipment and materials that can handle the shrinking size of real estate on PCB assembly and the miniaturization of components. Fortunately, suppliers in Japan have met all such board assembly process demands early on, and products have been optimized to fulfill these requirements suitably. The McDry

Global SMT & Packaging â&#x20AC;&#x201C; December 2009 â&#x20AC;&#x201C; 39


2009 Rep & Distributor Review

“Lead-free and RoHS assembly processes are still growing for our customer base.” Southwest Systems Technology Texas, Mexico

Lines: APS, alum-a-lift, Aqueous Technologies, ASC International, BTU, Cencorp, Cogiscan, EKRA, GPD Global, JUKI, Nutek, RMD Instruments, Solvision, SPEA, Streckfuss, ToTech, YESTech, Valor, VIEW Engineering

swsystems.com

STI Electronics Directly covering Alabama, Florida, Georgia, Mississippi, and Tennessee, with sales all over the US Lines: Kester, AIM, Atlas Copco, Hakko, OK International, JBC, Pace, 3M, Excelta, Microcare, Chemtronics, Tech Spray, TechWear, Aven, QRP, Easy Braid, Swanstrom, Orbis, Cooper Tools, Production Basics, Lista International, LW Scientific, ACL Staticide, Brady, Ideal, OC White, Carpenter, Luxo, and many others.

cabinets consistently maintain ultra-low humidity levels with strict ESD specifications to meet degrading of MSL levels due to the higher reflow temperature of lead-free assembly. The Hioki 1240 flying probe tester can test the finer probing pitch of 0.2 mm with the optimal speed of 40 steps per second. The cutting-edge technology and easy programming of Anritsu 3D solder paste inspection system accurately measures inline boards to determine volume of solder paste for BGAs, CSPs, and other fine pitch components while its reference level calculation method compensates for effects of board warpage. The Sayaka PCB routers with their easy and quick software programming feature allow for clean and accurate depanelization of densely populated boards. The Hirox 3D Digital Microscope can capture defects early on by inspection of board samples with its 360-degree rotational lens and maximum magnification range of 7000x. How do you expect to see business performing in your territory over the next 12 months? We expect 2010 to modestly grow through the first half of the year, then the following two quarters to ramp up substantially. Mexico will show consistent growth with the low valuation of the peso providing substantial competition to Asian outsources providers in value and economy. The overall logistics cost will also make Mexico an attractive manufacturing resource for consumer and automotive electronics. The domestic market we cover has a large demand for capital equipment acquisition, which will only recover if lending practices return to normal.

Dee Claybrook

What are the technical trends in your industry? We continue to see PoP, flip chip and thin core technology driving the leading edge of micro-miniaturization. Many manufacturers are looking at “green technology” and we think that many instrument and appliance manufacturers will be looking at core changes in power supply products that have a great potential for immediate energy saving potential. Equipment acquisition cost may prevent large-scale roll outs in the near term. Overall, we think that the ongoing transitional nature of electronics manufacturing is exciting and will provide numerous opportunities in the next year. Domestic production costs are globally competitive and many projects that chase low labor markets will find North America to be competitive and technically sound. How do you expect to see business performing in your territory over the next 12 months? STI is unique because our “real world” manufacturing and training expertise gives us the ability to work with customers to help them be successful in addition to supplying them with the manufacturing products they need. I expect a much improved business climate in 2010 compared to the end of 2008 and most of 2009. I don’t know that we’ll see 2006 and 2007 levels yet, but based on what I’m seeing in 4Q 09, I’m optimistic for growth. David Raby What are the technical trends in your industry? Our territory encompasses a high percentage of defense-related work and the overall push continues to be for smaller and lighter, and requiring less power. STI’s experts, along with our patented IC/DT technology, once again makes us the one-stop solution for our customers’ needs.

stielectronicsinc.com

“I’m optimistic for growth.”

40 – Global SMT & Packaging – December 2009

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2009 Rep & Distributor Review

Technical Resources Company Covering Florida, Puerto Rico, Dominican Republic

Lines: DEK, Assembléon, Vitronics Soltec, Aqueous Technologies, Austin American Technology, Christopher Associates, Koh Young, Japan UNIX, Valor, Teradyne, VJ Electronix, KIC, Bliss Industries, Inovaxe, Henkel, Pentagon EMS, IPTE, R&D Technical Services (pending) trcflorida.com

“We’re already experiencing a large increase in capital equipment orders.”

How do you expect to see business performing in your territory over the next 12 months? After the worst recession in my 30-year career, I am very optimistic about business for Q4-2009 and throughout 2010. We’re already experiencing a large increase in capital equipment orders as well as our consumables business with activity levels that we haven’t seen for quite some time. Therefore, with this new activity, coupled with the “business as usual” trends in selective soldering, rework, inspection and equipment replacements, I feel we are headed for a much brighter 2010. While the stock markets have fared very well for the past 2 quarters, we need consumer confidence carried over to the housing and retail markets. These underlying economic indicators can have a major impact to the negative or positive with regards to our respective businesses.

Frank Mascetti

What are the technical trends in your industry? Our region is rich with a broad base of customers from medical to military/aerospace to some of the world’s largest contract manufacturers and smallest OEMs and contract shops. That being said, we see “everything,” from 01005 placement requirements to selective soldering to some vapor phase discussions, cleaning applications, flip chip applications, and all types of advanced applications. However, while there are technology trends customers still look for “the best deal.” That’s human nature and where I see our business has truly changed in the last decade compared to my first two. This becomes a very tough balancing act between trying to solve some very challenging technical problems with antiquated equipment, limited budgets, the lure of used equipment, excess capital inventory and so forth. Reps and distributors must be “quick on our feet” to meet the technical as well as the commercial challenges facing our customers. We must better understand their new lean initiatives and other business metrics so that we can help them meet their technical challenges. How do you expect to see business performing in your territory over the next 12 months? The business outlook for the next 12 months remains optimistic but cautious. Industry experts as well as customers estimate that sales will remain “flat” with a few customers looking to upgrade equipment, support and industry services. A diverse line card will be of most value to any representative in these trying times, with emphasis on production supplies and services over strictly the sale of new electronics manufacturing capital equipment.

“Cannot overlook the costof-manufacturing factor as many local OEMs continue to evaluate ‘make or buy’ decisions.” Tonka Electronics Covering Minnesota, North and South Dakota and NW Wisconsin

Lines: Aqueous Technologies, Bliss Industries, Cluso, ECD, Essemtec, IAC Industries, JBC Tools, Juki Automation Systems, Milara, Nortec, Orprovision, PROMATION, REsys, Rehm, Sensbey, Sono-Tek, South-Tek Systems,

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Pedro A. What are the technical trends in your industry? Carrasquillo, Technical trends within the territory continue to be directed at Jr. modular placement insertion equipment for smaller components (01005s) in diminished real estate on PCBs, as well as favoring post solder paste disposition equipment and automated optical inspection post solder reflow. Cannot overlook the cost-of-manufacturing factor as many local OEMs continue to evaluate “make or buy” decisions in regards to manufacturing in the USA or through a CEM in China, Mexico or India.

How do you expect to see business performing in your territory over the next 12 months? Medical, instrument and industrial industry sectors remain relatively steady with some OEMs bringing back work formerly done at EMS companies locally and abroad. Regional manufacturing by tier two and three EMS companies show signs of recovery with forecasts of a stronger 2010. Component availability is anticipated to be an issue as business improves, complicated by counterfeit components.

Sue DeLadi and John Japs

Global SMT & Packaging – December 2009 – 41


2009 Rep & Distributor Review

Specnor Tecnic, Stone Mountain Tool, Qualitek, Specialty Coating Systems, SliceRite, Tronex tonkaelectronics.com

Torenko & Associates Covering Texas, Oklahoma, Louisiana, Arkansas and the interior of Mexico Lines: Asymtek, CHAD, Cobar, Essemtec, Flexilink, Heraeus, IBL, IP Systems, Pacific Precision Laboratories, MRC, Milara, MVP, Precision PCB Products, Protektive Pak, Samsung, Scienscope, Seica, Smart Sonic, Stati Tech, Teradyne, Workstation Industries

torenko.com

Upton Australia Ltd Covering Australia

Lines: APS Novastar, BEST, BPM Microsystems, Europlacer, Microcare, PACE, SONICLEAN, Vision Engineering

uptonaustralia.com.au

“Generally Australia has weathered the ‘global financial crisis’ well.”

What are the technical trends in your industry? We are seeing requests for highly flexible SMT placement equipment offering error-proof line setup with feeder intelligence, quick changeover, component traceability and high reliability. Increasingly products are transitioning to lead-free alloys with more focus on cleaning and measurement/control of all process parameters. Selective soldering continues to gain ground over traditional wave solder.

How do you expect to see business performing in your territory over the next 12 months? The fourth quarter of 2009 was good for everyone. There were a lot of quote activities and people placing orders. Mexico is coming back strong, especially in the cellular market. A lot of companies have the resources to buy more capital equipment but are waiting to see if there is some type of positive trend in the market. All in all, we feel very positive moving forward into 2010. Things should be good. Ron Torekno What are the technical trends in your industry? In this area, we have always seemed to be involved in new technologies. We are working on new technologies in screen printing of solder paste for 01005 and .3 mm pitch CSPs. I think that you will see it being used in high volume production by Q-3 of 2010. The industry will be seeing the bonding of two metals with a NanoFoil (flux-less soldering). You will be able to produce a soldered board without a screen printer and oven. Vapor phase reflow is also returning to the market. Due to lead-free soldering, plus temperature restraints on components and energy savings, this process seems to fit the need.

How do you expect to see business performing in your territory over the next 12 months? Generally Australia has weathered the “global financial crisis” well. The Australian government contributed a robust & popular stimulus package and allowed tax breaks at all levels for business, which means that purchases of manufacturing-related products became significantly cheaper for companies looking to invest in their future. Australia has excellent long-term prospects in areas of its technology strengths, but it is essential for us to innovate and invest Kevin Saillard in order to sell into global technology markets. Looking ahead, innovation won’t stop, especially in areas such as green technology and wireless. Sound business fundamentals of minimizing risk, managing cash flow and bringing down costs are the main challenges for business in 2010. However Australian companies should observe the lessons of those who have used economic downturns to position themselves for future growth. What are the technical trends in your industry? In our view, future trends in Australia lie in products that service smaller manufactures. A majority of Australian-manufactured electronics equipment are produced by companies with fewer than 10 employees. We have positioned ourselves with reputable OEMs and as a result rely heavily on development from this end. One company we have recently started representing, EVS International, with award-winning solder recovery equipment, offers many opportunities in Australia. Being a conscientious & environmentally friendly manufacturer just may give you the edge in winning business.

42 – Global SMT & Packaging – December 2009

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2009 Rep & Distributor Review

WKK Covering China, Japan, Malaysia, Philippines, Singapore, Thailand, Vietnam Lines: Arrow Technologies, CircuitMaster Designs, Cobar, ECD, Eunil, FCT, Fonton, Henkel, Hoiki, ICON Technologies, Japan Unix, PK Metals, Malcom, Nihon Superior, Phoenix I x-ray, RMD Instruments, ShinEtsu, Sono Tek, VI Technology, Vitronics-Soltec, Yamaha wwkintl.com

How do you expect to see business performing in your territory over the next 12 months? I think that the next 12 months will still be a challenge. Although it’s clear that business is improving month by month, I believe that overall business will remain soft as factories still face difficulties in reaching full capacities. What are the technical trends in your industry? For years I have stated that strong challenges will come from local Chinese manufacturers who are mastering equipment manufacturHamed El Abd ing for our electronics industry. I believe that in 2010 we shall have a breakout year for local Chinese manufactured equipment such as reflow systems, screen printers, wave soldering systems, x-ray equipment, inspection equipment and more. This new wave of locally manufactured equipment will be on par with equipment that has traditionally been imported into China from the US, Europe and Japan. This new wave will post the strongest challenge of dominance for the China market and beyond. This will be the year that Chinese manufactured equipment will also make a mark in export of such equipment to other Asian countries as well as the West.

“I think that the next 12 months will still be a challenge.”

All the best to you and yours this holiday season from the tea m at Global SMT & Packaging Debasish Choudhury Sandy Daneau Trevor Galbraith Kelly Grimm Andy Kellard Jade Po Kellard

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Derek LaBorie Heather Lackey Sang Hun Oh Lu Shuzhen Amy Tan Christine Z hang

Global SMT & Packaging – December 2009 – 43


Case Study: Traceability at Semecs

Case Study:

Traceability at Semecs Solid Semecs, headquartered in the Netherlands, is one of the largest electronic manufacturing services (EMS) providers in Europe. It is a leading total solutions company with more than 25 years of experience in the design and manufacture of rigid and flexible PCBAs and modules for some of the most complex applications in todayâ&#x20AC;&#x2122;s global market. In 2008 Semecs was requested by some of their major strategic automotive customers to implement a fully automated material tracking and traceability solution for their facility located in Vrable, Slovakia. The Semecs automotive customers were looking for a very high level of product tracking and traceability, from receiving to final packing. They required comprehensive information about the product history: when each product is produced and in which line/workstation, what the machine settings were, which material and component batches were used, and what inspection and test results have been recorded. In parallel with the traditional data acquisition process, the system also had to error-proof the assembly process as much as possible, including route control, setup validation of all machines and workstations and control of moisture sensitive devices (MSDs). After a thorough evaluation of the different quotes, Semecs selected the solution presented by sales and consulting firm pb tec and Cogiscan. The modularity of the Cogiscan platform allowed Semecs to pick and choose only the modules they really needed and as a result minimize costs in terms of the actual system purchase as well as the time and efforts required to implement it on the production floor. Cogiscan also provided a level of errorproofing not available from other system providers. The fact that Cogiscan had already successfully installed similar systems for other leading automotive suppliers provided another level of assurance for the project leaders. The Cogiscan material tracking platform has been deployed on the customer network with a central server holding the master database and a number of client PCs equipped with handheld

Figure 1. System overview.

barcode readers running the Cogiscan application. 1. The first step in the tracking process of Semecs takes place in the warehouse. Here all incoming materials and tools are supplied with a barcode label for a clear identification. 2. During setup, the Cogicsan application Cogiscan Line Setup Control scans the barcodes to check that all components, solder pastes, stencils, etc., have been setup correctly and that the machine calibrations fit to the product that will be produced. 3. At each machine a Product Flow Controller (PFC) is placed. Before the PCB can enter the machine, the PFC ensures that the barcode is read and checked. If any failures appear, the PCB will not be released for further processing. The application Cogiscan MSD Control (which will be incorporated at Semecs in the next phase of implementation enables a permanent control and physical tracking of the exposure time (the time in which the component is exposed to the normal atmosphere) and the calculation of the remaining

44 â&#x20AC;&#x201C; Global SMT & Packaging â&#x20AC;&#x201C; December 2009

Floor Live Time (residual time in the atmosphere) of the moisture sensitive components. As soon as corrective action is needed, the operator is altered by warnings and alarms. 4. Beyond the SMT line at Semecs, the panels are processed through several workstations and process steps, including electrical incircuit test (ICT), functional test, manual assembly, wave soldering, coating, depanelization and final packing. Each product must go through a precise sequence of operations on specific workstations and machines.

Figure 2. Barcodes are scanned to ensure proper setup.

Continued on page 47

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Global SMT & Packaging – December 2009 – 45


Title Interview

Interview—Terry Heilman, Sunstone Circuits Sunstone Circuits is a PCB solutions provider with a difference. They have an almost fanatical attention to customer service. Trevor Galbraith spoke to president and CEO Terry Heilman about what makes Sunstone different from your average board shop. Can you give us the 30,000 ft view of Sunstone and where it fits in the value chain? Sunstone is a quick turnaround prototyping PCB solutions provider offering in-house pre-production design reviews and the manufacture of boards up to 26 layers and 20” x 24”, although our sweet spot is generally in the range of two to six layers and 0.25” x 0.25” to 12” x 14”. We have been growing at an average of 20% year-over-year for the last five years. We are based in Mulino, Oregon, and have been in business for more than 35 years. Terry, the majority of board manufacturing has moved offshore. How does Sunstone compete against Asian competition? Our strongest asset is our ‘extreme customer support.’ Of course, we have pre-production design reviews and great technical capabilities, but we are a sophisticated Internet-based solution provider. Customers can view the progress of their jobs online, and we are available live, 24/7/365, through our help desk. It is our belief that if you are not prepared to pick up the phone from a customer on a Sunday or a holiday, then you cannot claim to have best-in-class customer service. We do. You mention miniaturization and other factors are driving manufacturers to adopt a cleaning process. How have these factors changed affected cleaning equipment designs? So much has changed in the design of defluxing equipment. Twenty years ago, batch-format defluxing equipment were basically mildly converted dishwashers. Back then, coherent (non diffused) flow (like the flow in your household

46 – Global SMT & Packaging – December 2009

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Interview

dishwasher) was effective in the removal of higher solids-content rosin-based fluxes from under through-hole and early SMT devices. Today, our customers are frequently removing ultra low solidscontent no-clean fluxes from below densely packaged SMT devices with as little as two mil standoffs. Combine higher temperature lead-free alloys and you have a very challenging defluxing process. We have not only had to respond to the current cleaning challenges but also to future challenges. Our customers expect our products to be effective today, and many years from today. Our products must remain technically relevant for as long as possible. How do you measure your customer service? The easiest way to measure our success is the 4,000+ new customers we attract each year and the more than 80% customer retention rates. For any company, this is an impressive record. You say you are not a PCB manufacturer. How would you describe Sunstone? That’s easy. I would describe us as a ‘solutions provider.’ We are in a position, along with our ECOsystem partners, to provide everything from a bare board design through to the finished product. In essence, the ECOSystem is an open, collaborative environment that provides the knowledge, tools, parts & libraries and manufacturing expertise necessary to produce a fully assembled PCB from quote to delivery. Through our ECOsystem alliance, we can provide PCB design services, tool workflows through Altium and CadSoft, PCB manufacturing from Sunstone and sourcing and costing of components using Digi-key and LiveBOM. Board design simulation and verification is provided by National Instruments and board assembly and final box build by Screaming Circuits. In all, we currently have nine partners and are open to others who want to participate in this value chain. How does The ECOSystem tie all these partners together?

purchasing, other members of the design team and the manufacturing supply chain. Designers can put together a design tool flow that works for their needs. For many designers, they make use of National Instruments’ (NI) Labview™ for simulation and verification and NI’s Design Suite for layout. For designers needing to design but unable (for whatever reason) to purchase licensed CAD tools from elsewhere, Sunstone provides PCB123, a free-distribution PCB design tool with integrated schematic, layout and interactive BOM management features in LiveBOM. The LiveBOM module, for example, enables real-time access to DigiKey for source and cost information for the PCB board components as-built. When the designer is satisfied with specification and cost, he can simply press the “Order Now” button to implement the order. Of course, not all design tools provide an “Order Now” button direct to Sunstone. So we continue to work with other CAD tool companies like NI—who is leading the way in this work—but also Altium, CADsoft, and others, to take down those barriers between completion of the design and initiation of the manufacturer. Our design flow work in the ECOsystem targets that exact spot in the designer’s daily life. The designer can then take the project one step further and enter the parameters into the Screaming Circuits assembly costing tool. In the future this step will also be automated. What made you embark upon this ECOsystem project? According to IPC, the designer has 75% of the leverage affecting the costs associated with the PCB and assembled board. It is also true that more than 30% of a design engineer’s time is spent sourcing parts. We believe that a designer can determine yield through good design. It is therefore our job to make the designer’s life easier by providing a suite of complimentary tools to be able to design, verify, specify and cost the entire product through to final box build.

Case Study: Traceability at Semecs— continued from page 44

Figure 3. A PFC (Product Flow Controller) installed on a machine.

PCs equipped with handheld barcode readers are located at each workstation, and the PCBs are scanned before and after each operation. The Cogiscan Route Control application ensures that each panel/individual circuit goes through the proper process steps in the right sequence. Also, at each workstation the Cogiscan Line Setup Control application validates that the right components and tooling are being used for each product. All relevant process information is again stored in the Cogiscan historical database. Defective products are automatically routed through a re-route loop. SEMECS have selected and implemented a complete tracking and traceability system for their automotive customers. The system is designed to error-proof the complete assembly process and to eliminate the risk of human errors. Through effective project management, including a detailed scope-of-work and implementation schedule, the system was installed and functional in the expected timeframe and within budget to meet their customer requirements.

Thank you, Terry. Trevor Galbraith.

The ECOSystem is designed to make the designers’ life easier. It operates without leaving the EDA environment and removes the need for the design engineer to spend hours or days wrangling parts, which helps decrease the time to market and reduce cost while improving communications with

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Global SMT & Packaging – December 2009 – 47


Productronica confirms industry rebound New Products

Productronica confirms industry rebound Even in a recessionary year, nobody who has ever visited the hallowed halls of Productronica would disagree that it is the most intense and exhausting event in the calendar. Despite the 30% drop in visitors from 40,000 to 28,000, Productronica produced the expected raft of new product introductions and, surprisingly, a large number of machine sales on the floor. Exhibitors were also astounded at the strength of machine sales. Some companies raked up double-digit numbers, confirming the fact that confidence is returning to the manufacturing market. Without doubt, some of these sales were the result of companies who had been withholding purchases earlier in the year, spending the money before their budgets expired, but the result brought a heady mood of optimism to those who had also taken the risk and extended their budgets to exhibit in Munich. Another surprise this week was the size of the audiences tuning into the live debates and Global Technology Awards. Global SMT TV registered over 12,300 viewing minutes during the course of the show, vindicating the huge effort that goes into providing a comprehensive, technically informative video program. Business news The major business announcement this week came from Finetech, the high-precision rework company, who acquired the assets of Martin GmbH. Kyzen Corporation proudly announced their new production facility in Penang, Malaysia. The new, state-of-the-art

Kyzen production facility in Malaysia

facility is equipped with a full laboratory and training facilities. Assembléon and Siemens both went head-to-head with a ‘Capacity on Demand’ concept. Essentially, customers can purchase a basic placement system and rent additional gantries and heads to meet peak demand times. Assembléon claims this can save operators up to 20% in capital equipment costs. Siemens also promoted their new build-to-order concept, which they claim, coupled with Capacity-on-Demand in their SX series, offers customers the ultimate flexibility and capital cost saving.

can accommodate two gantries with each head rated at 10,000 cph. The Paraquda holds up to 240 8-mm feeders and has a maximum board size of 470 x 600 mm. The Paraquda is fitted with new, faster intelligent feeders and is backwards compatible with existing FLX feeders. Creating more of a stir than the pick and place system was the ePlace software, based on Essemtec’s new EEZ technology platform. This new GUI software is extremely easy to use, provides real-time display and context sensitive help among many other features. GE Sensing & Inspection Technologies presented its phoenix|x-ray x|act technology for simple and intuitive CAD-based µAXI with very high image magnification (±1 µm) using a microfocus 180 kv open

New products Some of the major new innovations at the show are listed below: Essemtec moved deeper into the mid-range market with the launch of the Paraquda pick and place machine early on Tuesday morning. This system is a complete redesign from their former platforms. The double H drive servo system

48 – Global SMT & Packaging – December 2009

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Productronica confirms industry rebound

tube. Inspection programs can be completed in less than two minutes, and the software can compare against IPC 610-A Standards or thresholds set by the user. Another highlight at the GE stand was the new, temperaturestabilised DXR digital detector on the phoenix nanome|x. At up to 30 fps (frames per second), it offers low noise coupled with brilliant image quality. Assembléon introduced their new MCP printer. Using technology from the motor-cycle industry, the print head can deliver homogenous pressure across the stencil in a 6 second cycle time (plus print). The MCP measure the print roll as it moves across the stencil and compensates by adding more paste when required. The servo driven squeegee blade can be adjusted in one degree increments between 45 and 60 degrees. The specially coated blades offer > 100,000 print cycles. The printer has 2 1/2D inspection capabilities, under-screen cleaner and a vacuum system that keeps the stencil in place to offer repeatability of ±5 µm and accuracy of ±25 µm at 3 sigma. Asymtek launched three new products at the show. The SC400 VCS is a viscosity control system that tightly controls the viscosity and dot size by keeping the fluid at a constant temperature. The minimum dot size is around 2-3 mm diameter. The SL940 dispense valve is a tilt and rotate device that can access almost all areas on the board. The Spectrum 920 is a dual simultaneous jetting system that provides a 50% speed increase while precisely controlling the fluid delivery by monitoring the viscosity in both jets. A second lane can be added to this machine for enhanced throughput. The Dispensmate D 583 is a dispense and cure system for laboratory applications. It has a 325 x 325 mm platform and can use any dispensing valve in the Asymtek range. The Dispensmate also uses the same software platform as the larger production machines. Data I/O introduced two products containing their new Flashcore III programming architecture. The PS588 can program five million devices per year or more at a speed

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of up to 10 Mbit per second (if the device supports it). The PS588 can handle up to 48 devices per cycle and supports DIP, PLCC, SOIC, SON, WSON, SSOP, CSP (µBGA, BGA) QFP, TQFP & TSOP. The FLX500™ is an automated programmer that reduces the risk and damage associated with manual programming. The benefits of the FLX500 include the fastest changeover times, self-learning plug-and-play operation, language independent graphical user interface, memory and microcontroller support, a flexible and modular design, outstanding quality, a self contained pneumatic system with minimal noise and requiring no special air facilities, reduced scrap costs and ease of use. Under the jumping waterspouts on the Kyzen booth, the company promoted their Aquanox 4241 cleaner for use in batch cleaners or stencil cleaners. They also presented their new ph-neutral chemistry, Aquanox 4703. BPM Microsystems launched their new BP Win 4.54 software. The GUI user interface is language independent and programs 1,100 devices per hour using a Cyberoptics alignment system. The software provides full SPC and yield statistics and minimizes and manages bit flips. MIRTEC introduced a new SPI system. The MS-11 uses a dual probe moiré technology that illuminates both sides of the solder joints and provides a more accurate reading. The MS-11 is built on the same platform as the MIRTEC MV-7 and can inspect at a rate of 40cm² per second with a 2 µm height resolution. Other news on the MIRTEC stand was a new laser scan technology that can be added to the MV-7xi AOI system. The MV-3L desktop has also been upgraded to 5-megapixel cameras and laser beam, single point inspection, offering higher defect detection and lower false calls. Cyberoptics introduced a software upgrade to their SE500 SPI system. The new software reduces programming by up to 40%. The SE500 can handle board sizes up to 410 x 410 mm and can measure components smaller than 01005. The newer SE500x can handle board sizes up to 810 x 610 mm.

phoenix|x-ray microme|x submicron x-ray system

Assembléon MCP printer

Asymtek SC400 VCS viscosity-control system

BPM Microsystems BP Win 4.54 software in the 3000FS

MIRTEC MS-11 SPI system

Cyberoptics SE500 SPI

Global SMT & Packaging – December 2009 – 49


Productronica confirms industry rebound

Europlacer XPI component placer

Speedprint SP700avi stencil printer

Finetech Fineplacer Matrix ma placement system

Production Solutions RED-E-SET HD board holder

Europlacer launched the XPii pick and place machine. Fitted with linear motors and up to 92 8-mm feeders, the XPii is built on a modular concept and can be configured with one or two gantries and eight or 12 nozzles per head to give a run rate of 28,000 cph. The XPii can handle components from 01005 to 50 x 50 mm and board sizes up to 508 x 460 mm. The launch was also complemented by a new software release. The RC5.15 has a wizard that can create new programs very quickly. It is backwards compatible and can control multiple machines to assist line balancing. The software is also equipped with a job optimizer. Finally, the feeder systems have been updated with a data matrix barcode to enable full feeder intelligence. The new feeders use a shorter tape element. Speedprint’s SP700avi has now been modified to accommodate board sizes up to 510 x 610 mm. It is also fitted with a modular conveyor that can move the board from a clamp to a snugging solution to handle warped boards. The software program can now offer offline programming and can detect effects such as PCB stretch as well as the standard range of defects. If there happens to be any dead

50 – Global SMT & Packaging – December 2009

time on the line, the Speedprint 2D inspection system will continue to inspect further regions of interest on the board making full use of any available inspection time, without slowing down the line. Aqueous Technologies was one of the few companies who avoided the recession and experienced 30% growth. President and CEO Mike Konrad blames the continued growth of leadfree, smaller geometries and residues left on the board for the increasing demand. Aqueous Technologies launched their new, redesigned Zero Ion cleanliness tester, the Zero Ion G3. The redesigned chamber is more user-friendly, and the software measures cleanliness against all standards and provides comprehensive SPC data correlated to bar codes on the boards. The redesigned tester is 60% less expensive than its predecessor. Practical Components are always at the forefront of new dummy components through their close relationship with AMKOR. The latest dummies are from the AMKOR Fusion range of QFPs and QFAs. Practical also introduced a new thermal cycle test board and a drop test board. Their B52 cleaning test board offers SIR testing of components, isolating leads with no crosstalk. JUKI announced the impending arrival of the KE3020 RL in mid-2010. The spindle heads on the KE3020 RL will

be faster, quieter and use less energy, while achieving 60,000 cph. It will handle component ranges from 01005 to 33.5 mm² at an accuracy of ±50 µm and hold 80 8-mm feeders. The KE3020 RL will also have a multi-nozzle laser head (six nozzles) with a placement accuracy of ±30 µm using a Cyberoptics vision system. Finetech exhibited a new, clean-look, modular concept to their Fineplacer Matrix ma placement system and Matrix rs semi-automatic rework system. The Matrix rs has interchangeable process heads. Thermosonic bonding for low temperature applications and Thermo compression for high temperature applications. FineTech also introduced a new entry-level rework system priced at under €25k. Production Solutions introduced a new high density board support system for HD boards with fewer changeovers. The RED-E-SET HD system is 4” x 8” and the auto set software can be integrated into most machine software platforms. The RED-E-SET HD has a 24” long bar model for placing in enclosed spaces within placement or printing machines. Valor introduced the Dynamix platform, a fully integrated MES system that users can add Valor’s V-Plan, V-Manage or V-Check modules to. The software enables better decision making processes for

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Productronica confirms industry rebound

scheduling and planning by timing three boards against a theoretical level, then balancing and optimizing the line. Dynamix will act as the bedrock of the Valor EMS software suite and with the forthcoming launch of Scheduler, expected in 2010, will be able to offer full line balancing across the factory environment. Valor seem to be en route to becoming a must-have software platform for companies to be able to maximize their equipment utilization and control their materials inventory. In the near future, EMS companies will be unable to compete without it. One of the hidden values of this software is the ability to predict the life expectancy of motors, belts and drives and alert operators to order new parts before the machine breaks down and stops the line. SEHO launched the MaxiWave 2340C, a modular wave soldering machine that can incorporate up to three lanes. The length of the machine varies from 2.4-3.3 metres depending on the configuration. The preheat is performed by infrared, convection or quartz. The machine has a twin-wave laminar flow that can offer SnPB or Pb-free. Bath exchange is performed at the rear of the machine and changeover can be performed in 30 minutes. SEHO also released a selective rework station for high mass components. The PowerRepair has a modular concept and the entire cycle is controlled by one controller from entry to control of the drop-jet fluxer. Each board creates a record showing the areas on the board successfully fluxed. A new offline programming system uses a Google™ style interface. The SEHO PowerRepair has a cooled table that has a mini wave in the centre. A foot pedal operates a glass door that slides back and allows the mini wave to rise up and solder the board or areas of the board needing reworked. An alarm alerts the operator when the board should be removed. The PowerRepair has a hot air option that can be

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used to clean holes etc. SEHO’s D-Prep software scans an image of the board and corrects any deformations (e.g. warped boards) to align the board for soldering. The program creates the optimum route and can even make the nozzle jump over large components in an automatic or manual program mode. Balver Zinn announced a range of new products. Aquasol is a new water-soluble flux that works with all alloys and is aimed at the US market. It is currently in beta testing and will be available in 6-8 weeks. The 3960RX is a VOC free flux and the 396DRX-M is more active version for low residues and good for pin tests. BZ offer SN100C for high temperature pin-in-paste applications and have developed an SnBi formulation for low temperature pinin-paste applications. Finally, the Brilliant 211 product is a new cored solder wire offering excellent wetability, spread and flow. KIC are focusing on energy and cost savings, optimizing the oven to use the least amount of energy to achieve optimum reflow results. Recent tests with Delta in the Czech Republic have achieved savings in electricity costs of 15%. KIC are expecting to launch a new inline profiler for vapor phase in the near future. Marantz came up with a novel new concept for SPI. The PowerSpector SI 5D based on a combination of traditional 2D and 3D inspection. The company claims that 3D cannot detect below the 50 µm level and that by using 2D to cover this area, they can provide a more comprehensive view of solder joints than separate 2D or 3D systems. The system inspects 80 cm² per second using a Windows™ 64 bit processor. The 3D inspection uses laser triangulation, while 2D uses RGB and a central sensor uses topographical 3D as a reference. The system will be available in Asia in Q1 and Europe in Spring 2010. DEK showcased the Senti-

nel board verification system. The system checks barcodes, verifies squeegee height and angle, checks the cleaning papers and measures the paste roll. If more paste is needed, it is automatically added. The Sentinel also performs 100% 2D inspection at line beat rates using eight 5-megapixel cameras. OK International presented upgrades to their workhorse APR5000XL. It now offers two heating zones to localize the heat. OKI’s future development strategy will be convection based. EMS manufacturing Fabrinet are one of the larger contract manufacturers, claiming 30% market share in the optical communications sector. The handle everything from DFM through production, final box build and logistics, based from a trade free zone in Thailand. Fabrinet has 18 lines and bring a lot of the manufacturing expertise from their former experience in the disk drive industry. President and CEO, Tom Mitchell formerly worked for Seagate. Elcoteq announced plans to diversify out of the communications sector into consumer electronics and system solutions. The Pecs-based CEM feels that it has a range of competencies that could be extended into these sectors without diluting their telecommunications expertise.

And so, this brings to an end another Productronica roundup. Productronica is still the world’s leading trade show, but its wings were slightly clipped. The notable lack of Asian faces gave many the impression that the show was becoming much more European centric. However, many Asian visitors and some from other non EU countries had difficulty obtaining visa from the German embassy. If Germany is going to remain the trade fair capital of the world, it had better address this problem, and quickly.

Marantz PowerSpector SI 5D SPI system

SEHO PowerRepair selective rework station

OK International APR5000XL array package rework system

Valor DynamiX integrated MES system

Trevor Galbraith.

Global SMT & Packaging – December 2009 – 51


Title New Products

New products

Speedline introduces Camalot dual head synchronous dispense mode Speedline Technologies has introduced a unique and patent pending “fail safe” approach to simultaneous underfill dispensing using the award-winning, noncontact Camalot SmartStream® dispense pumps. The “synchronous” dispense mode has already proven itself proficient in improving throughput by over 50% while completely eliminating the risk of poor yields/scrapped product experienced by alternative approaches to simultaneous dispensing on multi up circuits. The system is capable of detecting panel rotation and will automatically switch to an “asynchronous” dispense mode to ensure that both heads dispense accurately on the PCBs within the skewed panel. To further safeguard the process, additional software routines ensure that the dual pumps are pitched correctly and have identical flow rates. The Dual Head Synchronous Mode option is compatible with the Camalot XyflexPro+ and FX-D dispense systems and may be retrofitted in the field. www.speedlinetech.com

a clean room and low humidity environment. The MCU-401 Hepa Filter model meets cleanroom “Class 1000” specifications. Using a fan circulation system, dry air passes through the hepa filter and is circulated throughout the cabinet and back down into the drying unit. The cabinet keeps the relative humidity inside below 10 percent, and can hold up to 50 kg (approximately 110 lb). As an additional benefit, the system is equipped with a digital meter, which displays the RH level at all times. www.seikausa.com Cookson launches ALPHA® JP-500 Pb-free paste for use in MYDATA jet printer Cookson Electronics and MYDATA announced the release of ALPHA® JP-500 jetting paste. JP-500 is a Pb-free no-clean solder paste developed in cooperation with MYDATA, and is designed for compatibility with the MY-500 jet printing system. MYDATA’s MY-500 Jet Printer is an alternative to screen printing in a high mix production environment that reduces lead times and opens up new design opportunities for the customer. The demand for jet printing has been strong, with sales increasing this year by 50% despite generally weak market conditions. JP-500 paste allows for rapid line changeover, especially important for high mix customers. www.cooksonelectronics. com, www.mydata.com SIPLACE SX with “Capacity on Demand” The new SIPLACE SX is the world’s first placement machine designed for build-to-order processes from the ground up, with a platform that allows users to

Seika Machinery introduces McDry MCU-401 Hepa Filter model Seika Machinery, Inc., introduces the McDry MCU-401 Hepa Filter model for precision measuring instruments, electronic components, or other materials that require

52 – Global SMT & Packaging – December 2009

scale placement performance and feeder capacity independently and in-line with requirements. Completely new, railmounted interchangeable gantries, which can be mounted and dismounted within minutes, are the technological basis for this innovation. With this, users can add SIPLACE SX gantries, shift them between lines, or even use SIPLACE’s “Renta-Gantry” service to adapt to seasonal demand fluctuations. In addition, the new SIPLACE SX+ model, a SIPLACE X with no gantries and heads, opens the door to entirely new investment concepts, particularly for electronics manufacturers who want to reduce their fixed assets. www. siplace.com APS Novastar releases new SMTrue Run Optimize software APS Novastar, LLC, introduced its SMTrue Run Optimize off-line programming and management software module. For use with LS, LE, and CS automated SMT pick and place machines, SMTrue Run Optimize Software incorporates Universal CAD Translator with the powerful new functionality of off-line job and feeder set-up, programming, optimization, and management even before the engineer, operator, or technician steps in front of the machine. SMTrue Run Optimize software enables the user to become familiar with pick and place operations, feeder management, and cycle-time optimization in an off-line engineering mode. www.apsgold.com

PLACE-N-BOND BGA solder ball/joint reliability enhancement Alltemated, Inc. announces the availability of PLACE-N-BOND™ pick and place underfilms for solder joint/ball reliability. This patented partial underfilm technology uses thin solid thermoplastic films to edge or corner bond packages to the PCB to improve solder ball/joint reliability. This is accomplished by pick and placing the

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Global SMT & Packaging – December 2009 – 53


New Products

Data I/O’s new FlashCORE III programming technology Data I/O Corporation, provider of manual and automated device programming solutions, released its new FlashCORE III programming architecture. FlashCORE III offers significant performance gains by increasing the download and read/write speeds by a factor of ten. With support for the latest flash memory devices including SD, MMC, MoviNAND and iNAND, FlashCORE III is the best programming engine on the market supporting large devices. Data I/O’s automated handling systems, the manual programmer FlashPAK III and the Process Control software applications all support FlashCORE III. This allows customers to seamlessly transfer job profiles (algorithms, data files and programming parameters) from design through manufacturing. www.dataio.com

films onto the PCB prior to placement of the BGA/CSP. The films are supplied in standard EIA-481 carrier tapes. Utilizing existing feeders on existing SMT assembly lines, the films are placed during component placement. No special or additional equipment is required to implement this product into PCB assembly process. The bonding and gap fill occurs during the reflow process, no secondary cure is required. The films are geometrically precise and give you better volume and placement control over dispensed type systems. This product also allows for the rework of the PCB assembly. www.alltemated.com

FCT Assembly debuts NL930 lead-free no-clean solder paste FCT Assembly premiers NL930, a leadfree, no-clean solder paste that features the company’s latest technology in print and reflow of paste in the no-clean category. NL930 paste features excellent solderability, enabling the process to handle the most difficult wetting requirements. It also improves stencil life and provides superior cosmetics, especially when using SN100C. The lead-free paste offers excellent print consistency with high process capability index across all board designs, as well as excellent

54 – Global SMT & Packaging – December 2009

wetting characteristics on all pad finishes. Furthermore, post-reflow flux residues are penetrable, maximizing pin testability. NL930 is compatible with SN100C and SAC alloys with Type 3, 4 and 5 solder meshes. It is the ideal solution for cosmetic residue issues, and boards with OSP, ENIG, immersion silver, and immersion tin finishes. www.fctassembly.com A hotmelt for ice-cold calculators Henkel’s proven Supra technology is now also available at low processing temperatures. With Technomelt Supra Cool 130, Henkel has, for the first time, succeeded in reducing the application temperatures for a Supra hotmelt by an average of 40˚C, down to 130˚C. Not only does that mean savings of up to 30 percent in energy costs, but also a reduction in adhesive consumption values of between 20 and 35 percent compared to EVA-based hotmelts. A further benefit of this almost odorless adhesive is that, in addition to exceptional bonding strength it also features great consistency in terms of its viscosity and color-fastness. Compared to conventional hotmelts, it is thermally much more stable and flows more evenly without stringing. Moreover, its self-

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New Products

Rehm Thermal Systems drive energy efficiency to unlock cost-of-ownership advantage Rehm Thermal Systems has reduced the cost-of-ownership of the formation of reliable solder joints for customers around the world. The VisionXP Convection Soldering System incorporates a series of advanced features designed to enhance energy efficiency—from optimised heat transfer and precise profiling, to a “thermally invisible” conveyor system and high quality insulation. Unlocking operational benefits such as process reliability and ease of use, VisionXP is also equipped to cut maintenance by up to 50% through Pyrolysis, Rehm’s pioneering residue management system. Shortening long molecular chains to reduce the amount of condensable waste within the process chamber, Pyrolysis operates at approximately 500˚C to ensure a clean and dry reflow system for efficient, environmentally-friendly disposal of contamination. www.rehm-group.com

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cleaning properties ensure immaculate processability. www.henkel.com Nordon ASYMTEK introduces MH900 series material handling system Nordson ASYMTEK’s MH-900 series material handling system is configurable for inline or same-side load and unload operations, supports both single and dual-lane conveyors, and provides reliable loading and unloading of a wide variety of parts from very thin strips to large heavy boats and carriers. Advanced process control is built into the handling system. Programmable transport speed and carrier staging maximize units per hour while multiple carrier sensors, active pinch wheels, and thin strip guides ensure safe handling for even the most challenging applications. Magazines are loaded from the side into adjustable spring-loaded trays and a vertical elevator moves them into loading position. A frame sensor identifies the next available frame, significantly reducing search time for partially filled magazines. During loading, frames are carefully pulled from the magazine and through the system by a soft-touch gripper and active pinch wheels. www.asymtek.com

Global SMT & Packaging – December 2009 – 55


Title

Measuring package on package—possible procedure, comments welcome

Bob Willis The following is a draft procedure used during our hands-on PoP workshops run in Europe to gain data on the range of stand off heights of packages to compare with other process parameters.

Measuring package on package—possible procedure, comments welcome Dave Bernard (Dage) and I have been considering a possible method of measuring the standoff height of PoP devices after soldering and the possible detection of any variation in the assembly process. Obviously you still use existing optical criteria and with possible enhancements planned in IPC 610; the document may become more useful to staff faced with inspection of area array devices. Alternatively the PoP inspection posters are available from the SMTA, IPC, SMART Group and www. solderingstandards.com Package on package assembly features paste-only assembly or a combination of solder paste at board level and dip flux on the top row of ball terminations. Figures 1 and 2 show packages assembled ready for soldering.

The following is a draft procedure used during our hands-on PoP workshops run in Europe to gain data on the range of stand off heights of packages to compare with other process parameters. Details on these workshops are available at www.ASKbobwillis.com/PoPworkshops.pdf Measuring the standoff height for PoP assemblies can be beneficial as a process control tool in manufacture or at goods receipt. This can be conducted manually, using a high-resolution x-ray system, or with an automatic optical inspection (AOI) system fitted with laser height measurement. This is a technique we have used before on QFN/LGA assembly inspection, in this case to compare the void formation and the correlation with standoff height. Manually it is possible to measure the

four corners of the device and the top of the stack to the base of the board and compare the results with existing measurements from other satisfactory samples. In the case of an AOI system with laser capability, the laser is used to measure the difference in height. This can also be conducted at different locations along the edges of the device for possible warping, a known problem with PoP technology. The technique can be used for most PoP devices after first level package assembly, circuit board assembly or when a combination of no-flow underfill and reflow are used during manufacture. Using high resolution, x-ray measurements can be taken in the four corners. The following procedure provides a guide to this method. Place the PoP assembly in the x-ray system, making sure the assembly

Figures 1 and 2. PoP assembly with dip flux which is blue in colour and a dip paste with a type 5 solder paste.

56 – Global SMT & Packaging – December 2009

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Measuring package on packageâ&#x20AC;&#x201D;possible procedure, comments welcome

Figures 3 & 4. Identification of the area of interest during x-ray inspection of device, the image shows the corner of a PoP device during high-resolution x-ray inspection with four groups of terminations from level one and two in the field of view.

Figure 5. The corner of a PoP device with the grouping of terminations with measurements between the top and lower package

is held horizontal to the support tray. Make sure that the system is set to take a vertical view on the corner section of the device using the highest magnification and three or four balls on the top layer in the field of view. The system must be fixed vertically with no angular view. Figures 3 & 4. Identification of the area of interest during x-ray inspection of device, the image shows the corner of a PoP device during high resolution x-ray inspection with four groups of terminations from level one and two in the field of view. Take a measurement from the edge of the ball termination on the top level to the opposite side of the termination on the lower package balls. Repeat this measurement on the four groups of terminations in the field of view and record the measurements. Alternatively it may also be possible to measure from the edge of the pad to the opposite side of the lower pad interface. There can be variations in the ball size particularly when via in pad technology is used with more voiding or loss of the

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Figure 6. Example of one side of the PoP device with measurements on one selected ball group.

solder to the via. Without changing magnification or the viewing angle, move the position of the board to each of the four corners and repeat the measurements. It is important that the board assembly remains flat during this examination particularly if measurements are to be taken on multiple devices on the same assembly. Selecting a specific ball group in the centre along each edge of the device a similar measurement can be taken to look at warping along the side of these devices. In this case, one ball is taken on both layers for comparison on each side. This technique does not rule out full x-ray inspection of the solder joints but provides another process control method which could be used to gather data from a process and compare it with an existing database of successful results or to compare failures with a historically stable process Please send you comments suggestions on this draft procedure to bob@bobwillis. co.uk

Bob Willis is a process engineer working in the electronics industry, providing training, consultancy and process/product failure analysis. Bob offers on site workshops on conventional and lead-free manufacture. Bob will be running three new US workshops at APEX 2010 covering PoP, Conformal Coating and Counterfeit Components. Bob is happy to assist you set up and optimise production lines for users and also provides conferences and workshops worldwide www.bobwillis.co.uk

Global SMT & Packaging â&#x20AC;&#x201C; December 2009 â&#x20AC;&#x201C; 57


Title Association & institutes news

Association & institutes news Call for poster abstracts for IPC APEX EXPO 2010 in Las Vegas IPC - Association Connecting Electronics Industries® invites researchers, technical experts and industry leaders to submit abstracts for poster presentations at IPC APEX EXPO™, to be held April 6-8, 2010, at the Mandalay Bay Resort & Convention Center, Las Vegas. Poster presentations are an excellent communication vehicle in these days of limited marketing budgets, offering exposure to key engineers, managers and executives in all segments of the electronic interconnection industry. Expert poster presentations are being sought on all relevant electronics’ topics, including design, materials, assembly, processes and equipment. Submissions in the areas of printed electronics, package on package assembly, solar cell assembly and advanced substrates are especially encouraged. An abstract of up to 300 words summarizing technical and previously unpublished, noncommercial work covering case histories, research and discoveries should be submitted by January 22, 2010 to www.ipcapexexpo.org/CFposters. New IPC World PCB Production Report Tells of Flat Growth in 2008 Worldwide production of printed circuit boards (PCBs) was flat in 2008, climbing a negligible one percent over 2007 to $50..8 billion, according to the World PCB Production & Laminate Market Report for the Year 2008, released this week by IPC—Association Connecting Electronics Industries®. Published annually, the report includes estimates of PCB production value and laminate market by product type and by country to help industry members identify and quantify global PCB material and process equipment opportunities and constraints. The value of PCB production in 2009 is expected to end in a double-digit decline from 2008. China’s share of PCB production continued to grow in 2008 to 31.4 percent of world production, while most other countries’ shares either held steady or declined. Japan is the second biggest producer with 22.5 percent. Asia now has

84 percent of the world’s PCB production value. North American and European PCB production declined slightly, holding eight percent and seven percent shares, respectively, in 2008. High-density interconnect (HDI) was one of the few growth markets in the PCB industry in 2008 with production heavily concentrated in Asia. The value of PCB production in Europe declined approximately 10 percent in real terms in 2008. In North America, the production decline was about 6.5 percent, while the North American market declined by around 5.3 percent, suggesting that production levels were affected by both a shrinking home market and continued movement of production to other regions. IC substrates and high-performance PCBs were the only growth areas in North American PCB production in 2008. The report is available only to IPC members free of charge and can be accessed at www.ipc.org/World-Report-2008. Nonmembers may purchase the report for $1000 and receive a one-year facility membership in IPC, which includes many other member benefits. To purchase the report, visit www.ipc.org/pcb-world-report. Information on IPC membership benefits is available at www.ipc.org/membership. New IPC training video gets to the point of soldering iron tip care best practices Striving to help electronics manufacturing companies reduce the cost of process consumables while increasing product quality, IPC—Association Connecting Electronics Industries® has released a new educational video covering industry best practices for soldering iron tip maintenance. Divided into three sections, Soldering Iron Tip Care (DVD-15C) is designed to train technicians on how to properly care for soldering iron tips and avoid many of the pitfalls associated with lead-free soldering. The training DVD includes a leader’s guide, review questions, IPC training certification documents for students who successfully complete the final exam and English subtitles for hearing-impaired or ESL students. Soldering Iron Tip Care is the latest addition to IPC’s comprehensive library of educational videos on electronics assembly,

58 – Global SMT & Packaging – December 2009

covering topics from safety to standards. IPC training videos can be used for an unlimited number of students at one facility and are available in DVD format for classroom or digital format for online learning. For more information on DVD-15C or other IPC training DVDs, or to request a free DVD catalog containing the entire library of training media, visit www. ipctraining.org or call +1 575-758-7937. To purchase DVD-15C, visit IPC’s online bookstore at www.ipc.org/onlinestore. New SMTA Webtorial: Proactive

Defect Reduction The new SMTA Webtorial “Proactive Defect Reduction” will be held in two 90-minute sessions on Tuesday, December 8th, and Tuesday, December 15th, from 1:00pm to 2:30pm Eastern. It is presented by Jim Hall and Joe Belmonte of ITM Consulting. Customers are the final judges of a facility’s performance, but what should we be doing to maximize the satisfaction of our customers? A true world class manufacturing operation must have a Proactive Manufacturing Operation Culture that practices a proactive philosophy of defect prevention... This Webtorial will detail how a manufacturing operation can transition from a reactive manufacturing culture to a proactive manufacturing culture. Topics covered include how to recognize a proactive manufacturing culture, the issues that can make the transition successful, how to get started, the areas of assembly that must be addressed, the process performance benefits of a proactive manufacturing culture, and more. Registrations are being taken through the SMTA Online Registration System: smta.org/education/registration/ event_registration.cfm?EVENT_ID=519

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Title

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Global SMT & Packaging – December 2009 – 59


International Diary Title

International Diary 20-22 January 2010 INTERNEPCON Japan Tokyo Big Sight Tokyo, Japan nepconworld.jp 26-28 January 2010 Pan Pacific Microelectronics Kauai, Hawaii, USA www.smta.org/panpac/ 23-25 February 2010 IMAPS Printed Devices & Applications Orlando, Florida, USA www.imaps.org/printed 24-26 February 2010 Electronics Next New Delhi, India www.electronicsnext.in

2-3 March Virtual PCB Online www.virtual-pcb.com

13-14 April Printed Electronics Europe Dresden, Germany idtechex.com

16-18 March productronica China Shanghai, China global-electronics.net/link/ en/16545154

20-22 April Expo Electronica Moscow, Russia www.expoelectronica.ru/eng/

31 March-April 1 SMT/PCB & NEPCON Korea Seoul, South Korea www.smtpcb.org 6-8 April IPC APEX Expo Las Vegas, Nevada goipcshows.org

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60 â&#x20AC;&#x201C; Global SMT & Packaging â&#x20AC;&#x201C; December 2009

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Global SMT & Packaging 9.12 (Dec '09) Americas edition  

Solder pastes & head-in-pillow defects, China's mobile phone gray market, combating counterfeit components, flexible circuit assemblies wit...