all material copyrighted, arrow electronics, inc. 2006 1 arrow lead-free -06 it’s not easy being...
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1 Arrow Lead-Free -06 All material copyrighted, Arrow Electronics, Inc. 2006
It’s Not Easy Being Green…But Arrow Helps Make it Easier!
April 2006
Phil Howard Arrow Electronics
Digital Supply Chain Solutions
Commitment to RoHS: Arrow is committed to providing efficient, responsible, global solutions that help our customers meet the challenges of environmental compliance.
2 Arrow Lead-Free -06 All material copyrighted, Arrow Electronics, Inc. 2006
Arrow Worldwide Statistics
Founded: 1935
Publicly Traded: (ARW) New York Stock Exchange
Website: www.arrow.com
2005 Sales: $11.2 billion
Employees: 11,400
Inventory: $1.5 billion
Locations: More than 270 sales facilities in over 50 countries19 distribution and value added centers
worldwide Headquarters: Melville, New York
Customers: More than 130,000
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Regulations present tremendous complexity:
Variances in the timing of supply transition plans
Variances in supplier policies
Evolving nature of environmental regulations
Legislative “exemptions”
cannot ensure stable supply
Differing manufacturing requirements make mixing of parts potentially unsafe
Impact on the Supply Chain
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Must Dos• Find lead-free alternatives for traditional tin-lead plating
• Assure no other restricted substances are present in products
• Manage transition, internally and externally
• Meet the RoHS directive well in advance of the EU requirement deadline of July 1, 2006
Complexity• Not all OEMs / EMSs are on the same time schedule
• Not all OEMs / EMSs have the same requirements
• Lack of clarity on how much compliance information must be provided
In the meantime…• Keep supplying traditional versions to customers with
exemptions or other needs for noncompliant product
Impacts on Component Manufacturers
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Impact on the Supply Chain
• Can any domestic manufacturer ignore the impact of
these regulations? – Probably not.
– As component suppliers develop RoHS Compliant versions of
their components many will discontinue the original part.
– Supply disruptions, particularly on leaded parts, may begin to
occur at any time.
Consider the economic feasibility for suppliers to continue with two versions of each component
– Many industry leaders believe the entire market will go completely lead-free
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Sources of Complexity
• Variances in Supplier Timing and Policy:– Suppliers developing their transition plans and migrating
to lead-free versions at very different rates It appears that most suppliers have completed their transitions
and are offering (or plan to offer) RoHS-compliant parts
We have seen an increase in EOL notices for leaded devices
• Environmental regulations continue to evolve–Most are following guidelines established in RoHS
• Some suppliers are transitioning without changing their base part numbers
•This makes the process of ordering, identifying and stocking lead-free and leaded part inventories very difficult
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Analysis of SEMI & PEMCO Suppliers
• 78% of Arrow’s SEMI suppliers are changing Part Numbers.
• 44% of Arrow’s PEMCO suppliers are changing Part Numbers.
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Analysis of SEMI & PEMCO Suppliers
Of those suppliers not changing part #s:
• Some made the part numbering decision in attempts to keep their long term print position
– To mitigate customers not changing AVLs and later finding the supplier part number discontinued
• Typically indicating lead-free status through date codes, lot codes and package marking.
• Many communicating through e-PCN process
9 Arrow Lead-Free -06 All material copyrighted, Arrow Electronics, Inc. 2006
Analysis of SEMI and PEMCO Suppliers
• 50% of Suppliers fully converted: Done Done
• 90% of Suppliers fully converted: Q1 ‘06 Q2 ‘06
Semi PEMCOSEMI PEMCO
RoHS Compliant Product Availability
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As Component Suppliers change their material plating to conform to the RoHS Directive, they must
Understand the impacts of plating finish on
the components– Increased processing temperature in solder
process
– Possible changes in termination style
performance
– Assessing forward and backward compatibility
Sources of Complexity for the Supplier
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Many different elements of component terminations must be re-qualified:
– Solderability
– Solder joint reliability
– Compliant pin process conditions
– Compliant pin reliability
– Mechanical shock and vibration
– High temperature storage
– Tin Whisker growth after termination
– Moisture Sensitivity Level
– Compatibility (forward / backward)
As suppliers find what works best, there can beminor and major shifts in their transition plans
Sources of Complexity for the Supplier
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Compliant parts don’t always mix well with non-
compliant components Backward Compatibility - NOT always a guarantee!
– Issues w/ BGA’s (SnAgCu solder balls)
– Solderability variations on component terminations can
cause different results by component.
– Lead-Free termination coatings may not adhere due to
lower process temperature (component / supplier
dependent)
– This is the most common transition approach we are
seeing with our commercial customers.
Sources of Manufacturing Complexity
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Compliant parts don’t always mix well with non-
compliant componentsForward Compatibility - Lead contamination on a lead-free
solder joint could significantly reduce the reliability of the joint
– Temperature: Lead-free alloys melt at higher temperatures
(217o C+) than Tin-lead alloys (usually 183o C)• Increased temperatures can damage components, plastics can melt, ICs
may delaminate, PCBs may warp or crack, board “tourqing” can cause
joint cracking, part popping, chip epoxying .
• Both components and PCB will need to withstand higher temperatures
• Be sure that your manufacturing process is designed to handle higher
temperatures
– Lead Contamination significantly devalues solder reclaim
Sources of Manufacturing Complexity
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The Moisture Sensitivity Level (MSL) of a component
may shift 1 to 2 levels with RoHS compliance.
Sources of Manufacturing Complexity
Time Conditions1 Unlimited < 30 C / 85% RH2 1 year < 30 C / 60% RH2a 4 weeks < 30 C / 60% RH3 168 hours < 30 C / 60% RH4 72 hours < 30 C / 60% RH5 48 hours < 30 C / 60% RH5a 24 hours < 30 C / 60% RH6 Time on Label < 30 C / 60% RH
Floor LifeLevel
IPC/JEDEC Standard J-STD-020 Moisture/Reflow Sensitivity ClassificationsOf nonhermetic solid state surface mount devices sensitive to moisture induced stress
Once MSL is identified, the SMD can be properly packaged, stored and handled to avoid subsequent thermal and mechanical damage during the solder reflow attachment and/or repair operation
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Reliability Risks associated with pure TinTin Whiskering – DEPARTMENT OF THE AIR FORCE 9 May 2005
AIRWORTHINESS ADVISORY on Lead-Free Solder:
– “To date, no lead-free solders are known to have met the
reliability requirements imposed upon military electronics.”
– The Department of Defense has therefore prohibited the use
of pure tin (e3 per JEDEC JES D97 standard) for military
applications due to confirmed risks associated with tin
whiskers.
• If a lead has more than 3% of some other element, it may
be sufficient to retard whisker growth.
• DOD standard is that a lead must contain
no more than 97% tin.
Sources of Manufacturing Complexity
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Analysis of Component Terminal Finish trends
Terminal Finish* % of Parts** • Sn 42%• SnPb 27%***• Matte Sn 19%• Sn/Cu 5%• Ni/Sn 4%• Cu/Ni/Pd/Au 1.6%
Semi PEMCOAs of January 2006, of the Arrow franchised suppliers providing terminal finish information:
Notes:
(*) Manufacturers have reported use of 49 different terminal finish types to Arrow
(**) Data represents >2.7M total parts, the majority being PEMCO
(***) These are not RoHS compliant parts and may transition
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Component Issues – Maximum Reflow Temperatures *
Sources of Manufacturing Complexity
NOTE *: Excerpt from ERA Technology - Project No. 043121477 Report: Lead Free Soldering – approach to changing from tin.lead to lead free soldered productsPosted on www.Arrow.com/green
Component Max. temperature
Aluminium electrolytic capacitor – maximum temperature depends on size
240 - 250°C
Tantalum capacitor – various types 220 - 260°C
MLCC (ramp rate more important) 240 - 260°C
Film capacitor (depends on plastic film type) 230 - 300°C
SMT relay (plastic deformation) 226 - 245°C
Crystal oscillator (plastic deformation) 235 - 245°C
Connectors – depends on type of plastic used 220 - 245°C
LED – may function but light output affected 240 - 280°C
ICs 245 - 260°C
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Process Window Change
Sources of Manufacturing Complexity
Source: Fry’s Metals Inc. Alpha Metals, LTD
Lead-Free Soldering • No “drop-in” lead-free
replacement for tin-lead• All of the alternatives are different• Process window with LeadFree is much smaller than with tin/lead
– Better process control is essential
• Production of a reliable product is possible if:
– Differences are understood – Appropriate lead-free process conditions are developed.
19 Arrow Lead-Free -06 All material copyrighted, Arrow Electronics, Inc. 2006
Alloy composition Melting Pt °C
Comments
Sn0.7Cu 227 Recommended for wave soldering applications (known as 99C)
Sn3.5Ag 221 Wetting inferior to SnAgCu but used where higher melting point is required
Sn3.5Ag0.7Cu (and variations on this)
217 Most widely used lead-free alloy. Various percentages of silver and copper are used. Recommended by NEMI for surface mount
SnAgBi alloys (some with Cu)
~ 210 -215
Better wetting properties than SnAgCu but must not be used with lead. Mainly used as solder paste but has been used for wave soldering, mainly in Japan. Wire not available so rework difficult
Sn9Zn 198 Zinc-containing alloys are difficult to use, need special fluxes and are susceptible to corrosion but new solder pastes with reasonable soldering performance have recently been developed.
Sn8Zn3Bi ~ 191 Used by several Japanese manufacturers where heat sensitive components are used. Includes NEC and Matsushita. Paste made by Senju. Difficult to use, needs nitrogen for SMT
58Bi42Sn 138 Low melting point, hard, brittle alloy but performed well in reliability trials
Choosing Lead Free Solders *
Sources of Manufacturing Complexity
NOTE *: Excerpt from ERA Technology - Project No. 043121477 Report: Lead Free Soldering – approach to changing from tin.lead to lead free soldered productsPosted on www.Arrow.com/green
20 Arrow Lead-Free -06 All material copyrighted, Arrow Electronics, Inc. 2006
Choosing Printed Circuit Board coating *
Sources of Manufacturing Complexity
NOTE *: Excerpt from ERA Technology - Project No. 043121477 Report: Lead Free Soldering – approach to changing from tin.lead to lead free soldered productsPosted on www.Arrow.com/green
PCB coating Advantages Disadvantages
Organic solderability preservatives (OSP)
Lowest cost lead-free option. Very thin and electrical contact can be made.
Fragile and easily damaged by handling. Protection during storage for shortest of all alternatives, at best 6 months but less if stored in hot humid conditions. Incompatible with some fluxes.
Immersion silver Thin flat coating with good solder wetting. More robust that OSP and less than half cost of ENIG.
Solder wetting deteriorates if stored in atmosphere with sulphides. Protection during storage for ~ 6 months but can be less.
Immersion tin Thin flat coating with good solder wetting. More robust that OSP and lower cost than ENIG.
Solder wetting deteriorates during storage, particularly at high humidity. Protection during storage for ~ 6 months but can be less.
Electroless nickel / immersion gold (ENIG)
Best protection of all immersion coatings, up to ~ 1 year in storage. Gold has very good solder wetting.
Most expensive option. Sometimes used to make electrical contacts but these can deteriorate.
Lead-free HASL (SnCu solder)
Good corrosion resistance, flat surface, good solder wetting.
Needs new equipment. High temperature can damage PCB, very good process control needed, boards usually need to be pre-baked.
SnPb HASL (for comparison)
Well understood, good protection, excellent solder wetting and corrosion resistance.
Thermal damage to PCB, surfaces tend to be uneven so not suitable for some large low profile components.
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Defects more likely with Lead Free solders *
Sources of Manufacturing Complexity
• Poor wetting
• PCB warping
• Conductive anodic filaments
• Tomb-stoningNOTE *: Refer to ERA Technology - Project No. 043121477 Report: Lead Free Soldering – approach to changing from tin.lead to lead free soldered productsPosted on www.Arrow.com/green
• Cracks in plated through holes
• De-lamination of multi-layer PCBs
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• Cost of ConversionThe transition to lead-free could be an expensive venture
Excess and Obsolete:Excess and Obsolete: due to write-offs of non-compliant leaded parts and last
time buys that don't pan out- 40% increase
Board Redesign:Board Redesign: As high as $150K/ board (i.e. >3K ECN’s per Mboard at HP)
Production Line Changes:Production Line Changes: Capital, equipment, labor and training could be as
high as $7M- $10M per line
IT:IT: System updates to accommodate Suppliers NOT changing their part
numbers- As high as 20% of the total RoHS bill.
Source: AMR - Kevin O'Marah
Other Costs:Other Costs:
– The cost of the new solder materials is roughly double the
previous cost of the Tin Lead solder. Source – Alpha Metals
– Increase cost in some components as available
Some estimate cost increases at 2% of revenue
Sources of Complexity
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Challenges of Regulations Compliance
Various Trade and Industry organizations are proposing their own guidelines and standardsJoint Industry Guide for Material Composition Declaration for Electronic Products (JIG – 101), a three year collective effort by: JEDEC (once known as the Joint Electron Device Engineering Council) - USA The Electronics Industry Alliance (EIA), in Arlington, Va. The European Information and Communications Technology Industry Association (EICTA), Brussels The Japan Green Procurement Survey Standardization Initiative (JGPSSI), Japan;
– Formally released 5/25/05– Establishes materials and substances to be disclosed by suppliers when those materials and
substances are present in products and subparts that are incorporated into EEE. – 15 level A Material / Substance categories, includes the 6 RoHS Substances– 9 Level B Material / Substance categories
Provides consistency and efficiency to the Materials Declaration process– Suggests Materials and substances for disclosure– Threshold amounts requiring disclosure
Promotes development of a consistent data exchange format and tools to improve data transfer along the entire supply chain
• Recommended data fields (mandatory and optional)
A free download of the JIG-101 can be found at www.eia.org/jig
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Challenges of Regulations Compliance
Various Trade and Industry organizations are proposing their own guidelines and standards
Materials Declaration Management standards: IPC 1751 / 1752– A joint effort of:
– The IPC (Declaration Process Management Subcommittee)
– The International Electronics Manufacturing Initiative (iNEMI)
– RosettaNet
• Approved in January 2006
• Officially published on the IPC web-site in February 2006.
• ANSI standards certification will take more time.
Suppliers involved in 2Q05 pilots with OEMs
and/or CMs:
Agilent
Coherent
Delphi
Freescale
Maxtor
Motorola
Teradyne
TI
Provides a uniform data format for exchanging materials composition data • Defines required and optional fields• Forms, based on Adobe PDF forms technology, can be printed or exchanged electronically.• Data can be exchanged in standard XML format, conforming to RosettaNet PIP 2A13 (Distribute Material Composition Information) and 2A15 (Request Material Composition Information) • References the “Material Composition Declaration Guide,” commonly referred to as the Joint Industry Guide (JIG-101), to define the specifics of what needs to be reported (substances and methodology).
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Challenges of Regulations Compliance
Materials Declaration Management standard: IPC-1752 (CONT’D)• The Proposed Standard or Ballet, now available for review, establishes six classes for
declaration of materials and processes
– Accomplished by using a specific form related to the particular class
A 3Q05 Arrow survey of 85 component
manufacturers indicated 25% would support
such a standard
Class Description Form Type
Declaration Type From Top-
down Detail Requirements
Class 1RoHS reporting at a homoegeneuos level in yes/no format IPC-1752-1 RoHS Only
Class 2
RoHS reporting at a homoegeneuos level in yes/no format and manufacturing information. IPC-1752-1
RoHS and Manufacturing
Information
Class 3
RoHS reporting at a homoegeneuos level in yes/no format and JIG level A&B at the homogeneous level and other substances at the part level. IPC-1752-1
RoHS and JIG Substances
IPC-1752-3 Users Guide
Class 4Same as Class 3 with the addition of manufacturing information IPC-1752-1
RoHS, JIG Substances and manufacturing
information
Class 5
RoHS reporting at a homoegeneuos level in yes/no format and JIG level A&B at the homogeneous level and other substances at the homogeneous level. IPC-1752-2
RoHS and JIG Substances and
Other
Class 6 Same as Class 5 with the addition of manufacturing information IPC-1752-2
26 Arrow Lead-Free -06 All material copyrighted, Arrow Electronics, Inc. 2006
Challenges of Regulations Compliance
Various Trade and Industry organizations are proposing their own guidelines and standards
RosettaNet Partner Interface Process (PIP(R)) for material composition.
– May 2005--RosettaNet and its member companies announced that the industry standard for exchanging product material composition is now ready for use. Member companies include:
– Agilent Technologies – National Semiconductor– NEC Electronics– Nokia– Sony – STMicroelectronics– Texas Instruments
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Challenges of Regulations Compliance
• The "Hazardous Substance Free" or "HSF" Specification – Entitled "Electrical and Electronic Components and Products Hazardous
Substance Free Standard and Requirements“, reference EIA/ECCB-954. Jointly established by US-based organizations:
– Electronics Industries Association (EIA)
– Electronics Component Certification Board (ECCB)
– IEC Quality Assessment System for Electronic Components (IECQ)
– A quality management standard that specifies the technical requirements (for processes) that manufacturers must meet to ensure that their products conform to the new hazardous substance limits.
– A global certification solution for the world's electronics industry to prove compliance
Various Trade and Industry organizations are proposing their own guidelines and standards
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Challenges of Regulations Compliance
• The International Electrotechnical Commission (IEC) is expected to issue a reference standard to objectively define analytical testing procedures for use in RoHS compliance determination prior to July 1, 2006:
– In preparation, the IEC has completed a study on analytical techniques in preparation of a standard for RoHS analysis. Findings indicate consistency between test labs was poor.
– Especially for the flame retardants and hexavalent chromium.
– Lead and cadmium in plastics was not good either.
– CONCERN: If accurate analysis cannot be obtained within a single homogeneous material, testing of a real electrical product could be extremely problematic.
Various Trade and Industry organizations are proposing their own guidelines and standards
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• Material Management ConcernsIssue - The transition to RoHS has the potential for serious
impacts to pipeline management (particularly when
suppliers don’t change their part numbers)
Ordering and identifying RoHS parts in inventory; avoiding mixed
inventory (which could lead to failures)
Managing MRPs to support existing product designs &
manufacturing process with “leaded” parts until transition to lead-
free design/process
– Supplier forecast sharing needs formal review / consideration to
ensure a successful transtion
Sources of Complexity
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Identifying Material Content
Two key areas to consider….
Design / Development Materials / Production
• AVL• Sustaining bom’s• Development bom’s• Supplier / technology roadmaps
• Existing inventory• Pipeline inventory• Material handling requirements• Mfg process compatibility
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Arrow Component Information Services
• Identification of RoHS compliance status for electronic components and direct cross-reference parts.
• Proactive identification of termination finishes is becoming a critical step for military/aerospace customers.
• Most PCN processes from suppliers are dependent on recent purchasing history – this service is not.
• Proactive identification & monitoring of part status will help ensure material availability.
• A review of component risk attributes, and comparisons to available direct cross reference parts, will ensure optimal part selection when converting or developing BOM’s.
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Arrow – Helping Achieve Compliancy
The ongoing CHALLENGE of Shipping Labels Industry standards have not been established for ROHS or Green marking, symbols and labeling.
Shipments from Manufacturers
• Manufacturers are currently all over the map in how they identify ROHS compliant shipments. Examples:
– Green stickers
– “PB-Free” printed on labels
– PB-Free symbol on labels
– Unique ROHS PN
– PBF on the end of the PN
– Date codes
– Lot codes, etc…
– Arrow has implemented supplier-specific receiving instructions.
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Arrow’s Packing Slips - ROHS Marking Concept – went live 4/05Arrow PDC Shipments will include the content category code and environmental status on our packing slip as described in the JESD97 Standard based on the data supplied to Arrow by our suppliers:
Packing Slip actual size is 8.5” by 11”.
Packing Slip Product Description section enlarged to illustrate detail.
Arrow PDC’s began labeling packing slips with environmental status on 4/11/05, based on Arrow inventory-level content code status. If unavailable, UNK will be listed.
Arrow – Helping Achieve Compliancy
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Within Arrow - Continued Challenges
• Compliance verification support– customer and supplier readiness for developing compliance standards– IT infrastructure and readiness by all supply chain participants– efficient business processes for capturing and ensuring environmental data quality and freshness
• Inconsistency in approaches by Suppliers and Customers– Implementation timing– Alternative solutions– Marking, labeling, ordering mechanisms– Provisioning of compliance information / level of detail
• Moving Target(s)– JEDEC Marking standard– Legislative Interpretations– Standards development– Supplier policies
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Arrow – Helping Achieve Compliancy
NEW: Global Environmental Compliance pageNEW: Global Environmental Compliance page
at www.Arrow.com/Green
Major informational Areas include:- Legislative Updates & Interpretation - with constant updates from our
outside experts
- Detail on Arrow's flexible offering of Tools & Data – From No Charge solutions through your local sales office to subscription options for more robust data/functionality
- Transition Planning Guidance - actionable advice from reviewing business processes to dealing with electronic forecasting and
other issues when suppliers don't change part numbers, etc.
36 Arrow Lead-Free -06 All material copyrighted, Arrow Electronics, Inc. 2006
Thank You
Phil HowardArrow Electronics
Digital Supply Chain Solutions