The Electronics Source Book
January 12, 2005

Lead-free parts: Welcome to the messy supply chain

When components arrive at Raycom Electronics Inc. in Dover, Pa., company workers are never quite sure whether they’ve received lead-free parts or not. Representatives at this manufacturer of magnetic transformers and inductors say they’re beginning to get component shipments that are not clearly marked as lead-free – or not lead-free. “The problem we have encountered is vendors sending lead-free components without notifying us that what we are buying will be shipped as lead-free,” says Duane Goodling, Raycom’s customer service manager. “We don’t know [if they’re lead-free or not] until the components arrive on our dock.”

Many suppliers in the electronics industry are struggling to meet the European Union’s Reduction of Hazardous Substances (RoHS) regulations. The regulations require manufacturers to sell products that are free of six hazardous materials, including lead and mercury, by July 2006. Other suppliers have switched entirely to RoHS-compliant parts, but the switch doesn’t necessarily solve the problem if the parts are not clearly marked as green.

Since many suppliers are not planning to issue new part numbers for the lead-free versions of their parts, a manufacturer like Raycom doesn’t know whether the parts are lead-free unless they actually ask the supplier. Goodling notes that this is not always a big issue. “Most of the new platings seem to function about the same, unless the new plating is pure tin, which may lead to tin whiskering,” says Goodling.

But in some cases, the lack of assurance that a component either contains lead or doesn’t can cause a big problem with the company’s customers. The military – and portions of the telecommunications industry – is exempt from the initial RoHS deadlines (telecommunications will have to become compliant in 2010 – or at which time sufficient vendors produce acceptable lead-free components). The military has no plans to go lead-free at all. “A large portion of our business is military, and – for various reasons – they do not want the switch away from lead,” says Goodling. That can be a big problem if you’re not sure the contents you’re receiving contain lead or not.

Even more surprising, Goodling finds that some of Raycom’s suppliers seem to be out of the loop altogether. “Another problem seems to be the ignorance of some manufacturers that this lead-free initiative even exists,” says Goodling. “We often have difficulty obtaining time-frame information about when [a supplier] may switch and what plating they are switching to.”

The contract manufacturer, Solectron Corp. of Milpitas, Calif., did an internal audit of the lead-free status of its suppliers. The company found that 38 percent of its suppliers will not be compliant with lead-free in time for the RoHS deadline. Solectron executives note that 38 percent are compliant now. Another 11 percent will be complaint this year. 7 percent will become compliant in 2005 and 6 percent will reach compliance in 2006. That leaves 38 percent of suppliers that have yet to identify when they will be compliant.

There are some suppliers that see the lead-free conversion mess as a potential market advantage. Some suppliers such as Integrated Device Technology Inc. of Santa Clara, Calif. and Actel Corp. of Mountain View, Calif. have pushed forward early with lead-free parts as a way to demonstrate a progressive, environmentally conscious view to their customers and to gain market advantage over competitors whose compliance plans may still be fuzzy.

This series of articles on lead-free components in this newsletter prompted at least one supplier to explore what components will fail to be lead-free in time to meet the RoHS deadline. The clock is ticking toward July 1, 2006 – products being designed now will be on the market in mid 2006 – so OEMs and EMS providers are searching for parts that are RoHS compliant now.

Things are even more confusing in Asia. A recent report on the China Economic Net Website indicates that China’s component suppliers may be completely unprepared for the switch to lead-free parts. Professor Qian Yiyu from Harbin Institute of Technology gave dismal news on the lead-free status of Chinese electronic products at the recent Forum of Electronic Manufacturing Technology 2004, China. He notes that while China has not geared up for lead-free production, Japanese companies have been preparing lead-free electronic products for years. Panasonic began promoting lead-free products as early as 1998. It seems that stumbles in conversion to lead-free components may cause some market shifts in the electronics industry.

This is Part V in a series of articles.

Part I: Industry braces for the lead-free conversion

Part II: Progress on lead-free components spotty

Part III: IDT: 99 percent lead free already

Part IV: Actel goes green on 100% of its FPGA products

Part V: Lead-free parts: Welcome to the messy supply chain

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