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Predictions for 2007 are optimistic to say the least. We asked two questions from every SMT expert we could find: What is happening at your company and your market in 2007, and What challenges do you foresee in the coming year? Out of all respondents, we received only a few negative forecasts for the year ahead. Most experts talked of new products such as fuel cells, pick-and-place equipment, solder recovery systems and solutions, environmentally responsible products, higher yields, medical markets, consumer electronics growth, software options, lead-free materials/products, process control equipment, etc. Many mentioned globalization with growth in Asia, India, and Eastern Europe. Sometimes the expectation and belief in anything is just the boost needed to make it so. In SMT, growth continues at a healthy pace into 2007.
By Gail Flower
Amir Aghdaei
Agilent Technologies, Measurement Systems Division
Innovation and investment describe our direction for 2007. Market drivers such as lead-free, complex package types on PCBs, and shrinking geometries continue to provide challenges to our test-and-inspection products. These technical hurdles, coupled with cost and quality pressures, will be the biggest challenges in the coming year. Our global footprint and aggressive product plans will enable us to create solutions.
Brian Czaplicki
Air-Vac Engineering
Air-Vac Engineering’s products designed for lead-free rework and selective soldering were well received by our customers. We expect the strong sales trend to continue in 2007, so we will continue to address capacity issues. A customer’s decision to purchase capital equipment can often take several months or more; however, once the order is placed, customers require extremely short delivery cycles. In 2007, Air-Vac will launch our Automated Production Cell Technology, which is capable of handling difficult assembly processes for MEMS, photonics, and microwave applications; and expand our cell technology.
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Mike Konrad
Aqueous Technologies
2007 will be a busy year. We are planning two major campaigns - one is new products, the other is philosophical. We are introducing three products in 2007 with one common theme - environmental responsibility. We will introduce an automatic defluxing system capable of providing the throughput of traditional high-volume inline defluxing systems. In concert with Simple Green, we will introduce an environmentally safe stencil-cleaning chemical. Finally, we will unveil a series of automatic defluxing systems that operate in a zero-discharge configuration to eliminate real and perceived liability. From a philosophical standpoint, we are changing the way we interface with prospective and current customers. We will introduce a direct-to-factory sales strategy that puts prospective customers in direct contact with factory sales and technical staff. Our principle goal for 2007 is to increase performance and decrease environmental impact. These two philosophies are normally at odds with each other and present real engineering challenges.
Alec Babiarz
Asymtek
Manufacturers of handheld electronic devices have realized that most chip-scale packages (CSPs) require secondary underfill. When reliability issues require more secondary underfill and manufacturers demand higher throughputs, jetting can apply that underfill effectively. We see jetting becoming a necessity in CSP lines. Discretionary income affects the demand for consumer electronics and handheld devices. If there is a drop in spending, there could be a drop in consumer electronics - reducing demand for our industry’s products. The good news - there will be more consumers in China and India. Outsourcing to those regions will grow their economies, disposable income, and demand for more products. American products will help fulfill that demand, and local manufacturers of brand products will supply local markets.
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Craig Hunter
AVX Corp.
In 2007, many forecasters are predicting a slowdown, albeit a minor one. However, for those companies who are tied to new products and fast-growing markets, there may not be time to catch your breath. The release of the PS3, quad-core CPUs, Vista software, fastboot PCs, and flash HDDs will be underpinned by larger-memory MP3 players, lower-cost HDTVs, and cell phones features. Time-to-market will be critical, with a short window of opportunity. The challenge for the industry is on-time delivery, fast ramping of new products, and planning capacity to match unforecasted demands.
Lyman Brown
BPM Microsystems
In 2007, the industry and customer base will begin to adopt our programming product, a lower-cost, smaller, automated programming solution. As semiconductor chips get smaller, manual handling of these devices becomes less effective. The programming of lead-free semiconductor devices has shortened the lifespan of socket module tooling. We offer specialized sockets designed for lead-free parts, but this causes our customers to scrap some existing tooling and purchase the lead-free version. This is just one more example of the hidden costs of lead-free.
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Dan Shea
Celestica
I am excited that 2007 will be a year of opportunity for Celestica as we continue penetrating non-traditional markets such as aerospace and defense, industrial, and consumer. I’ll be looking at cutting-edge technology trends such as WiMAX; nanotechnology (especially in the area of low-temperature, lead-free solder); and the move to Gantry-style, fine-pitch/high-speed, all-in-one placement equipment. I’ll also keep a close eye on environmental legislation - RoHS exemptions, Chinese RoHS, and the UK’s Energy using Product (EuP) and REACH Directives. I want to ensure that we help our customers comply with these laws, just as we did with RoHS.
Craig Lazinsky
Chomerics
The surface mount industry is critically important to the health of consumer and commercial electronics manufacturing. Chomerics is focused on simplifying the design engineer’s task of controlling electromagnetic interference (EMI) and unwanted heat. By acquiring Tecknit in 2006, we can offer a comprehensive line of EMI shielding products and thermal interface materials (TIMs). Our challenges hinge on developing advanced materials suitable for shrinking device geometries. Products such as thermally conductive microwave absorbers and electrically conductive plastics save cost and weight in various applications.
Matthew Holzmann
Christopher Associates, Inc.
The crops will be planted. The harvest will be good. We expect a good year next year.
François Monette
Cogiscan
In 2007, Cogiscan will continue to focus on strategic growth, leveraging existing partnerships and creating new ones. We will open an office in Europe; new products will also be introduced, including unique RFID technology and application software. The main challenge for customers is reducing manufacturing costs while meeting the demands of their customers for complete traceability data. We are prepared to help them by providing a modular, flexible material-tracking platform that can be deployed at a low cost while providing an easy upgrade path.
Jon Dupree
COMET North America Inc.
AXI is becoming more important as BGAs and hidden-solder connections in PCBAs require inspection systems to detect solder voids and abnormalities without sacrificing yield. Customers demand quantitative analysis of PCB components to prevent defects that cannot be identified using optical inspection. We introduced an AXI system that can be configured as needed. AXI is becoming critical to assembly, but traditional throughput cannot meet assembly line needs. AXI can provide enhanced defect recognition of PCB components without sacrificing image quality. X-ray sampling can be performed to monitor for process variation.
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Bruce Moloznik
Cookson Electronics
Our lead-free sales will continue to accelerate in 2007, but we anticipate a leveling-off of lead-free manufacturing toward the end of 2007. We will continue to develop product technologies that will enable customers to optimize lead-free assembly lines, and we will still meet their tin/lead application needs. As a response to the on-going shift of manufacturing to the Asia Pacific region, we will continue to adjust our regional “footprint” to be better aligned with market opportunities. Cookson is focused on the Asia Pacific region, where we have amplified technical and business capabilities, for example the commissioning of our Applications Technology and Engineering Laboratory at our India Research Center in Bangalore. This lets us characterize and validate materials designed for that region in a more timely and responsive manner.
Gary Helmers
Creative Automation Co.
Creative Automation is continuing to refine nano-volume dispensing capabilities - focusing on 0.00025- to 0.00400-ml volumes. The tools we use offer accurate positive displacement pumping in combination with exceptional height mapping and dispense-head placement in the Z axis. The real challenge is to keep up with the demand for consistent nano-volume dispensing, part of which includes educating end-users regarding factors that contribute to accurate dispensing in the nanoliter range. Particle size, viscosity, characteristics of the fluid material, and the substrate are factors in selecting a dispensing solution.
Paul Walter, Ph.D.
Dage Precision Industries
We are working closely with our customers to help solve test-and-inspection challenges. We continue to see an influx of semiconductor devices with smaller bumps requiring higher 2-D imaging resolution for X-ray applications, such as detecting 1- or 2-mm voids within 30-mm solder bumps. We have introduced an X-ray inspection system with feature-recognition capabilities as low as 250 nm, and are working to provide inspection capability of advanced 3-D packages such as package-in-package (PiP) and package-on-package (PoP) using computerized tomography. We have developed high-speed bond-testing solutions to detect britle fracture failure.
Helmut Rutterschmidt
Datacon Technology GmbH
Markets for semiconductor back-end equipment will weaken next year, yet we can counter this and achieve significant growth. Our position in the volume segments of system-in-package (SiP), flip chip, and RFID will contribute to the expansion of our Asia Pacific business. Last year, we were able to derive more than half of our sales in the Far East. Customer orders and options are showing no downshifting in this market segment. In the slowing market of 2007, the Besi Group will continue to perform well.
John Hartner
DEK
The electronics assembly industry faces an interesting future. There’s no promise of step-change processes around the corner, but we do have emerging package technologies that blur the boundary between board and semiconductor assembly. There also are challenging applications appearing in fuel cell and photovoltaic cell manufacture. Some geographic regions continue to expand rapidly, which drives growth and equipment sales. Capital equipment suppliers must understand this changing landscape. Investments in up-and-coming regions like India and Brazil, as well as resurgent areas like Mexico and Central Europe, are key to future success. Our focus for 2007 is to deliver more than printing machines.
Keith Wheeler
EFD, Inc.
EFD, Inc. Solder Paste Group will concentrate on providing a total soldering process solution, delivering quality solder paste formulations coupled with integrated dispensing and reflow equipment. 2006 is shaping up to be one of our best years, new product introductions in 2007 should continue that momentum.
Ruben Figueroa
ERSA North America
2007 will continue to be productive for application-sensitive equipment. Lead-free applications will be a focal point as electronic manufacturers work to fine-tune the lead-free process. Due to the inherent additional costs of lead-free, selective soldering will continue to be a strong option. We will see an increased interest in high-power, accurate soldering tools. Rework and inspection will also experience resurgence due to the challenges of lead-free rheologies. We will continue to innovate to help meet these challenges. Our products will be tools used to solve lead-free application challenges.
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Martin Ziehbrunner
ESSEMTEC USA LLC
Based on the strength of our equipment for flexible production environments, new products will be announced in the areas of pick-and-place and dispensing systems, as well as a family of reflow ovens. All segments in the entry-level to mid-size production environment can be served on a high-quality, competitive price level. The worldwide sales and service network will further expand to guarantee global support for current and new customers. The challenges are providing the latest production equipment for new technologies at affordable prices.
Peter Kim
Eunil H.A. Americas Inc.
To provide customers with short delivery lead times and technical service in AOI and SPI systems, we will establish an R&D center in San Diego, Calif., and a manufacturing facility in Tijuana, Mexico. Price competition is expected to become more severe due to low-priced products from China. We must prepare to overcome this challenge in the coming year.
Derek Gaston
Europlacer
Europlacer has an exciting year ahead. During 2006, we established strong representation in Eastern Europe and Asia markets, and are establishing sales there. We also strengthened our position in the U.S. and China. Europlacer has a number of developments scheduled for release during 2007 - a software environment; increased WiFi interfaces; advanced production-scheduling tools; and enhanced capability, programming, and management for feeders. Europlacer will release a machine platform with 01005 capability for new machines and 01005 upgrades for existing machines. Our biggest challenge is establishing further awareness of the Europlacer name.
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Simon G. Norman
EVS International
With the ever-rising cost of solder and the introduction of expensive lead-free solder, demand for our solder recovery systems is outstripping our ability to supply. All members of the electronic community are in a cost-competitive spiral, and they must cut costs or die. EVS significantly reduces solder purchases and can improve the wave soldering process - giving positive ROI and speeding up the dedrossing process. We face demands for our range of solder recovery systems, and must increase production. In 2007, we will introduce a solder recovery system for small- and medium-sized producers.
Art Rutledge
Fawn Electronics Company
We see the market for electronics manufacturing growing in the mid-Atlantic region. We’ve added several customers in the second half of 2006, and see business continuing to grow in 2007. Fawn has offered RoHS-compliant manufacturing processes since 2006. Managing the technology shift to RoHS over a range of customer requirements is one of the greatest challenges. Servicing customer needs is a key part of the U.S. EMS value proposition, and we see a fair amount of variation in customer preferences for RoHS-conversion timelines.
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Neil O’Brien
Finetech USA
In 2007, Finetech will continue to focus on and develop “add-on” modules that address specific rework application needs. As rework becomes more integrated into the workflow, Finetech will further develop workflow software that will allow defect data from X-ray inspection equipment to be ported to our systems directly. We expect to work closely with X-ray equipment companies in this endeavor. Rework processes continue to grow in complexity, for example the need to “re-ball” BGAs; therefore, we must create new solutions and special tooling. Parts that are difficult to replace or expensive to produce also benefit from rework tools that remove old solder balls, clean the residual solder, apply flux, and place a new array prior to reflow.
Gene H. Weiner
Gene H. Weiner & Associates, Inc.
We are adding notable domestic and off-shore senior associates to broaden the range and depth of consulting services to include the management, licensing, and acquisition of intellectual properties, as well as monitoring new packaging technologies in Asia. We also plan to increase the number of in-house seminars. Our market will expand in 2007 as the need to unify manufacturing processes and level marketing costs globally increases. The need for new partnerships that bring “soft services” (e.g. programming), as well as equipment and materials from abroad to level the playing field, will increase. The challenge will be identifying those that have the “right stuff” to succeed and motivate them to act in the long-term interests of their organizations.
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Scott Mauldin
Genesis Electronics Manufacturing, Inc.
The trend in 2007 will be developing more adaptive supply-chain solutions. Industry-wide, we see product development cycles shrinking. There continues to be a gap between customer-desired levels of material-flow responsiveness and standard lead-time/lot-size commonly found in the material channel. We are focusing on replacing inventory with information that gives the supply base a greater transparency to demand. In aftermarket-product support, we see that the middle market is woefully under-served, and will address this issue by expanding our aftermarket service-and-repair solutions.
Mark Myles
The GoodBye Chain Group
With RoHS in effect, companies must pursue compliance “due diligence.” EU enforcement agencies stress that achieving compliance - not prosecuting penalties - is their main goal. While producers must collect parts data, they must also rely on quality practices that focus on supplier compliance. Regulators will use XRF instruments to screen materials, indicating that producers should follow suit. Periodic supplier assessments, well-documented internal procedures for managing compliance data, and continuous improvements will pay off.
Patrick Trippel
The electronics group of Henkel
The electronics assembly market will be defined not by traditional SMT assembly, but - as the distinction between surface mount processes and packaging technologies becomes less clear - by its ability to adapt to the dynamics of smaller-pitch devices, lead-free processes, and advanced package technology. A critical component of this change, especially in the era of lead-free, is materials compatibility between all levels of the device - from wafer to package to board level. This complete material solutions philosophy will remain at the core of Henkel’s product development priorities.
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Brian Bauer
Heraeus Contact Materials Division
2007 will be an exciting year for the Contact Materials Division of Heraeus. We will have fully integrated the Assembly Materials Group with our Bonding Wire Group, allowing us to provide value to customers with respect to product offerings, process support, and localized support on a worldwide basis. The integration of Welco Fine Powders into our solder paste materials lets us provide customers high-quality materials for wafer bumping and ultra-fine-pith applications. Lead-free will also provide us opportunities. One of the main challenges will be dealing with the continued growth of the electronics industry and its effect on raw material prices. Prices of raw materials have been increasing significantly.
James Dornan
I&J Fisnar Inc
2007 will see a further rise in outsourcing from the U.S. and Europe. China and India will maintain growth, with India developing an infrastructure to compete. Vietnam will visibly enter the outsourcing arena, and Mexico will see new opportunities as U.S. companies outsource closer to home. The trend toward global automation will continue. Price reductions in cartesian robots will justify the automation of low-volume bench assembly. A rise in start-up U.S. businesses may be seen through outsourcing attrition.
Simon Leow
ICON Technologies
2007 will be a busy year. With the launch of our entry-level printer, the i6, and the addition of our i8+, we have a full product portfolio to offer EMS providers. Combined with our recently extended network of support engineers, this makes ICON a solution for printing machine users. Our biggest challenge will be convincing international customers of the quality and value they can achieve using Chinese-manufactured printers.
Rick Short
Indium Corporation
The demand for consumer electronics continues to grow. Demands on consumer electronics products continue to challenge our customers. The Indium Corporation is staying true to their needs and focusing on finished-goods reliability. Our efforts add value upstream at the packaging level - with emphasis on SACX, STIM, PoP, and low-K compliancy. In the PCBA arena, our focus is on reliability-enhancing topics such as via-in-pad voiding, no-flow underfill, thermal solutions, printing optimization, wetting, probe testing, and more. Our goal is to continue adding value by enhancing our customers’ finished-goods reliability.
Bob Douglas
Inovaxe Corp.The Inovaxe engineering focus will be to build on our INOCART material handling and INOKIT software solutions, providing inventory accuracy, reduced SMT setup and reload time, and increased visibility throughout the EMS supply chain. We have several complementary material-handling systems in prototype, as well as additional software modules in development to enhance the capability of our solution set. The challenge we foresee is on-going acceptance of subscription-based software solutions vs. enterprise deployments.
Denny McGuirk
IPC
Regulatory initiatives and market-driven pressures are forcing the industry and its supply chain to incorporate environmental, health, and safety (EHS) considerations into design and manufacturing decisions. The EU’s RoHS Directive is the tip of the iceberg, while other countries scramble to follow suit with their own “variations du jour.” To remain competitive, the industry must keep pace with emerging materials restrictions, end-of-life requirements, and customer preferences for energy-efficient products, holistic-design requirements, and sustainable business practices. IPC is urging the global harmonization of the growing number of substance restriction bills such as RoHS and China’s Administrative Measures regulation. We will also be following REACH, which could be implemented in 2007. We will work to broaden IPC-1752, Materials Declaration Management, for use beyond EU RoHS.
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Bob Klenke
ITM Consulting
At ITM, we will continue to help clients implement lead-free volume production throughout 2007 as European- and North American-based companies strive to catch up with Asian rivals, finding themselves increasingly behind the projected worldwide lead-free conversion and utilization curve. Forward and backward compatibility of components and lead-free processes remains an issue. Continued lead-free implementation has spurred a short-term increase in soldering equipment growth trends with worldwide sales of reflow ovens spiking to accommodate replacement of older, thermally challenged systems. Board-level assembly will remain at the core of electronics assembly for the foreseeable future - notwithstanding the advent of alternative packaging methodologies. In 2007, we anticipate that changes in device packaging will continue to reshape the interconnection envelope, challenging stencil printing and reflow capabilities.
Bob Black
Juki Corp.
Juki expects a record-growth year in 2007. Our 2070 and 2080 machines began production shipments in November, and should add volume throughout next year. Several systems will be introduced during 2007, expanding our product offerings to a wider customer range. We also are on track to ship our 20,000th machine before year-end 2007. We work in a competitive business; success is never easy. Juki has based its success on high-quality standards and customer satisfaction. As we continue rapid growth, we must continue to ensure our quality remains high.
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Bjorn Dahle
KIC
We expect that industry growth over the last three to four years will abate in 2007, bringing more intense competition. Therefore, KIC will introduce a number of products, particularly the KIC Vision - Automatic Profiling System, which eliminates the need for manual periodic profiling. The kicker is (pun intended) that it will be priced similarly to a standard manual profiler. We also are increasing the breadth of our offerings for wave solder applications, batch thermal processes, and more. After several years of intense growth, we will likely move into a less-hectic period. The decisions a company makes in such an environment have a profound impact on future success. We will stay close to our customers to understand what they need.
Tom Forsythe
Kyzen Corp.
After six years of testing and development, lead-free reaches the high-reliability applications that are the bread-and-butter of our assembly customers. These can be quite challenging, but our materials can do the job at a lower cost of ownership. Our engineering services and field sales staff will be with our customers as they transition to lead-free. In one way, the biggest challenge is behind us - the development of a new class of cleaning materials. However, our customers have never been known for one-size-fits-all conformity. New developments continue as new solder materials are introduced. Our growth also will require increased staff.
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Diane Frisk
Lloyd Doyle Ltd.
Lloyd Doyle will strengthen its position in the bare board market with high-technology solutions for bare board optical testing; Asia will be the major sector for this. In the semiconductor market, it will hone the prototype solder-bump inspection products that were released in 2006, such as the IBIS. These products will have field use in early 2007, and will be finely tuned by mid-year. The challenges will include market acceptance for leading-edge products. We must stay ahead of requirements. With the IBIS product, production sites that need this equipment will be online 2007-2008, so we must be ready for that. Planning the next-generation systems will fill a large part of our R&D efforts.
George T. Ayoub, Ph.D.
Machine Vision Products Inc.
MVP’s goals for 2007 involve continuous technology innovation and NPI. We are constantly working on enhancements for easier-to-use software that requires less programming time and lower operator skills. In 2007, we will develop Flying Color Technology for post-reflow AOI. As the industry continues to require higher-quality inspection and ease-of-use software, along with high-performance, speed, and resolution, MVP strives to meet our customers’ expectations. As part of this, MVP has begun expanding operations in Asia, and will continue this into 2007. We also plan to open an office in Malaysia to better serve the Southeast Asian market.
Tom Fujikawa
Malcomtech
Malcomtech will open a sales-and-service office in the Midwest to expand our U.S. sales territories. Many American electronic manufacturers are shifting production facilities to Asia, so we must expand sales and service territories to South America and Europe. Malcomtech now handles more sales items from Japan, including testing instruments, materials, and electronics-parts marketing. We provide a marketing-and-sales tool to many Japanese companies looking to sell products to the U.S.
Stephen Brodeur
Milara Inc.
Milara will see a lot of activity from the big three: SMT, semiconductor, and BGA printing markets. We recently completed the rollout of Autovision batch printers for SMT and semiconductor, and on our AWPb 300 fully automated wafer-bumping system. On the near horizon, our redesigned, cost-reduced TouchPrint series will serve the SMT and BGA/WL-CSP industries. In the past year, we have completed our fabrication facility in Massachusetts, expanded our production capabilities in Europe, and opened a satellite office in the central U.S. Our challenges ahead include expanding our customer base in the Pacific Rim.
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Mike Martel
MMC Marketing
Forecast: Gloomy, but at least steady state for the next year or two. Electronics manufacturing and assembly will continue to relocate offshore. Proliferation of trade shows and competition will mean that no one wins; internecine quarreling between competing interests such as Canon Communications and SMTA will threaten the existence of the SMTA as a key trade organization, and may reduce it to a focus group. SMT will continue to be marginalized because it is mature. Bigger issues such as the growth in packaging technology are overshadowing it. Soon the term “SMT” will be as momentous as “rework.” After the lead-free equipment replacement cycle is over in 12 months or so, capital equipment makers will see sales plummet. Companies will retrench and lay off workers. Competition from a range of IP pirates - in the form of unstoppable production equipment knockoffs from China - will prevent existing equipment makers from finding lifeboats or meaningful representation. Without air supplies, equipment makers will asphyxiate. Advice to young people entering this industry: Learn Mandarin, Indian, and Moroccan languages, or keep your job at Chili’s. If you get into semiconductor packaging technologies; however, you have the chance of a good livelihood.
Keith Gelinas
The Morey Corporation
The Morey Corporation is excited about our prospects in 2007. We introduced WarHammer, our ruggedized telematics platform providing J-bus data collection, geo-location information, and wireless data transfer capabilities. Morey will also introduce two additional product platforms in 2007. This strategy helps customers determine their needs, significantly reduces development costs, and speed product to market. Our challenge is managing growth by maintaining our existing business, while seamlessly incorporating new clients.
Zulki Khan
Nexlogic Technologies
Demand for EMS provider services in second-half of 2006 will continue in 2007, perhaps at a brisker pace. OEMs are placing increased emphasis on core competencies and relying on EMS companies to provide depth of vertically integrated services. We will see partial-service CMs scrambling to organize new services, while well-established, full-service EMS companies refine their experience to deal with OEM product management. OEMs will continue facing RoHS-compliance challenges and slowly realize that lead-free is a fact of life.
Rick Howe
Nortec Inc.
Nortec is expanding; we have recently expanded our operations to better focus on the North American market. In 2007, we will add more manufacturer reps and direct employees. We foresee steady growth over the next 12-24 months as we focus on mid-size electronics manufacturers and their product-identification needs. We see demand from companies who face the challenges of lead-free introductions, which cause new ID requirements for segregation, traceability, and compliance. Our biggest challenge will be managing growth and expansion. When faced with the obstacles that come with opening a new division in a new territory, the one constant that must remain is customer service.
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Tom Seratti
OK International
The RoHS deadline passed with much less fanfare and attention than Y2K, though full compliance is far away. While we have seen more activity in Europe, less migration has occurred in the Americas. Three product categories are in lockstep with RoHS: array-package rework equipment for lead-free BGA and LGA components; a series of cartridge tips; and a multi-function rework family (MFR) and PS-800 production series. Our greatest challenge is helping customers lower the total cost of ownership of soldering equipment.
Jim Bernhard
Ovation Products
Our company will continue to expand our line of automatic support tooling for printers, placement, and dispensing equipment, broadening our scope by introducing other value-added and unique solutions. These solutions will expand customers’ current equipment capabilities beyond those envisioned by OEMs. Our biggest challenge will be leveraging our success in the Americas by expanding in Europe and Asia. We have hired direct managers for both territories to facilitate growth and provide customer service.
Larry Kay
P. Kay Metal, Inc.
P. Kay Metal is having great success with our MS2 Molten Solder Surfactant, which addresses some problems with the high cost of lead-free alloy, through dross elimination and improved soldering quality. As customers continue to add more lines, process improvement through dross elimination, improved quality, and reducing hazardous waste become critical. Because of this product, and the state of the economy, we are optimistic about 2007.
David Wolff
P.D. Circuits Inc.
After opening our Shenzhen, China, office this year, we plan to expand our China sourcing operations in 2007, including adding fabrication partners to cover all levels of technology and increasing staffing levels to support heightened activity. The focus is to maintain high levels of quality, while reducing lead times and costs. We will make additions to our sales force to improve market penetration in existing and new regions, and will add technical staff and testing/lab equipment. We will also complete a Web-based information system to give customers real-time access to order-status information and inventory data. Training customers on DfM and problem prevention, and helping them transition to RoHS compliance, will keep our technical staff busy.
William E. Coleman, Ph.D.
Photo Stencil
Photo Stencil will continue to develop and offer high-end/high-performance stencil printing products in 2007. Specific customer DOEs will include lead-free intrusive reflow, 01005s, and flip-chip component stencil printing. SMT printing requirements for small/high-density components, such as 0201s and 01005s, as well as 0.4-mm-pitch microBGAs, will increase. Our challenge in 2007 is to supply stencil-printing products and solutions that provide high SMT assembly yields.
Kevin Laphen
Practical Components Inc.
Practical Components will move into the expanding China and India electronic markets. We will participate in trade show, Web, and magazine advertising and local training seminars to educate end-customers about the value of dummy components. We will double the number of overall tradeshows attended from 2006, and will continue to expand our product line of dummy components and training kits, and the capability of our Website. The biggest challenge in 2007 is getting customers in emerging markets to understand and place value on dummy components. Another challenge is improving our name-brand recognition.
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Gary Goldberg
PROMATION Inc.
The need to improve cycle times and process control will continue to grow as assemblies increase in complexity and decrease in size. Manufacturers in all markets want to get product costs down, whether through increased manufacturing output, efficiency improvements, or production-quality enhancements. As a provider of automated handling, soldering, and robotic assembly solutions, PROMATION envisions growth within these segments. Customers migrating to lead-free soldering may need to review post-wave handling solutions to ensure high-temperature-capable belts are installed. Automated-inspection users have a variety of post-AOI sorting solutions from which to choose. As products grow in complexity, so will the need for selective soldering.
Richard Heimsch
Protean Marketing Communications
2007 promises to be a year of significant growth at Protean, particularly as outsourcing continues to reshape modern businesses. Brand development and strategic communications are among the myriad of business functions being recognized as more effectively and economically executed by experienced and focused outside specialists, particularly as new electronic media and the Internet alter the communications landscape. The rapid and continuous restructuring of the value chain requires companies to understand what is core, in terms of competence, and direct resources accordingly. Maintaining the revenue and earnings growth that the industry has enjoyed for the past several years will be a challenge in 2007; only those businesses that commit to differentiating themselves will be able to escape the downward spiral of commoditization.
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James R. Williams
Polyonics Inc.
Polyonics will continue its expansion into Asia to better serve customers. The office in Shenzhen will be fully online and serve that region with its knowledge of product marking and labeling. Additional production facilities will be nearing completion to provide quicker service for our products. RoHS brought about the need for materials with higher-temperature resistance for marking products, including electronics packaging. The decreased size of these packages will require higher-resolution printing on smaller labels. Moreover, especially for semiconductor packaging, we envision a demand for thinner labels.
Steve Glass
RMD Instruments LLC
RMD has identified a market niche for the RoHS Directive. More companies are concluding that the incoming parts and components stream is suspect for RoHS compliance. Our XRF technology can help companies identify most incoming parts for compliance. XRF scanners have shown great growth in this new market segment. We see at least a 70% increase in 2007. This growth is expected to stay strong for the next three to four years. Because screening electronics components using XRF is relatively new to the electronics industry, we see the biggest challenge in 2007 as educating the industry on XRF technology differences. We also recognize that the customer’s expectations may exceed current available technology.
William Loving
ScanCAD International, Inc.
Some challenges will continue to plague board assemblers in 2007. One of the most costly is reducing both unplanned and planned downtime. The business is losing money whenever capital equipment is offline. A potential solution is to install pre-process verification technology to verify that every part of the process matches. That includes confirming that the stencil is accurate and matches the bare boards, and components are dimensionally accurate for placement programs and inspection routines. During production, pre-process verification should be used to ensure that new component stock continues to match.
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Tilo Brandis
Siemens Automation & Drives
Electronics Assembly
One major trend we see is that manufacturers face increased challenges to maintain competitiveness and profitability. Increased complexity of SMT processes, higher customer demands on quality, and shorter lead times, matched by cost reductions, are key factors. The market is extremely competitive and cost-sensitive. In 2006, Siemens began addressing market trends with its lean manufacturing approach, recognizing the role SMT equipment plays within the scope of supply-chain management and the resulting effect on a customer’s ROI. Siemens’ six sigma experts deliver value-added production solutions to customers to remove all non-value-added activity from manufacturing processes. For manufacturers, this means increased and sustained profitability. Manufacturers are changing their focus in the global market - they no longer rush to manufacture solely in Asia. Many manufacturers are beginning to broaden their scope and place facilities in several locations. We are seeing business volumes increase in Mexico, Brazil, and Eastern Europe.
Bill Schreiber
Smart Sonic Corporation
This year is shaping up to be our best year since 1999. Assemblers are realizing that ultrasonic stencil cleaning technology is required for fine-pitch apertures and to improve print production. Lead-free solder pastes are more tenacious. We have not needed to modify our cleaning process, which has saved our existing customer base thousands of dollars. Volatile organic compound (VOC) restrictions continue to be a limiting factor in the cleaning industry. Lead-free fluxes are more difficult to clean; some suppliers have found the need to revert back to VOC solvents to supplement cleaning chemistries. VOC restrictions will only become tighter with time. Our 440-R SMT Detergent can clean lead-free fluxes without the aid of VOC solvents. We continue to test new fluxes as they become available.
David Raby
SMTA
Globalization will continue at SMTA during 2007 with new chapters in Europe, continued growth and events in China, and the new SMTA International event in Orlando, Fla. Add to this the dramatic rise of lead-free materials entering the market as well as training and certification challenges, and change is coming. We will also turn a focused eye to the heart of the SMTA - its North American chapters. Attention will be given to developing, strengthening, supporting, and educating the chapters and their members. The SMTA has an action-oriented membership focused on getting things done. That network and our growing knowledgebase are the technical resources that will help the industry make the leap to reliable lead-free technology. A significant challenge will be helping our members ensure lead-free product reliability. SMTA is about grassroots engineers - the people tasked to make lead-free work.
Jeff Zhou
Solectron Corp.
Globalization is creating tremendous financial and competitive pressures on OEMs - demanding more product more often, and at lower prices, while cutting R&D spending. This puts more strain on engineering. We see an emerging change in the engineering model - one that combines in-house engineers focusing on new product development and innovation, while partnering with electronics outsourced companies to manage complete product stewardship of existing families of products, including new product design revs, manufacturing, and aftermarket services.
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Vera Chang
Sony Manufacturing Systems America, Inc.
Sony introduced our SI-G200 pick-and-place system in 2006. The machine features a dual rotary-head design, small footprint, and the ability to place 45,000 cph. At Sony, we build equipment with the customer in mind. In 2007 and beyond, we will continue to focus on smaller, faster, and smarter machines. We are eager to show the market what the SI-G200 can achieve on the assembly floor. Our challenge is to prove that although the machine is small, it is fast and efficient. We accept challenges as opportunities, and strive to introduce new technology and provide valuable solutions.
Byung S. Kim
Tamura H.A. Machinery Inc.
We will focus on enforcing in-contact technical services for our customers in Eastern areas through our Knoxville, Tenn., office. We are implementing various service programs such as 24/7 emergency service, just-in-time parts supplies, and on-site maintenance service. We plan to spur sales of high-performance solder paste inspection (SPI) systems. However, it is expected to take longer than our initial forecast to cultivate market and generate demand for SPI.
Mark J. Curtin
Transition Automation Inc.
The upcoming year is exciting for Transition Automation Inc., as the last two years have been marked by a significant investment in product development and internal process upgrading. We have discontinued non-core businesses, and focused exclusively on our metal squeegee business. We also are finding time to market other products to end-users in microelectronics packaging and integration, including the release of our product in 3-D, which allows end-users to specify blade thickness for fine-tuning printing techniques and colorize squeegee holders for material segregation. We also have ongoing development related to self-cleaning squeegees for some common problems with lead-free SMT printing. We expect significant growth in the next two years.
Stuart J. Erickson
Ultrasonic Systems, Inc.
Ultrasonic Systems continues to expand our Prism coating technology for electronics and semiconductor markets. Increasing complexity of circuit board assembly and semiconductor packaging requires precision deposition technologies for a range of coating materials. In 2007, we will continue to expand our technologies into the fuel cell, solar cell, and medical markets. The slow adoption of lead-free in North America also has created an opportunity to continue to upgrade wave-soldering machines using ultrasonic fluxing technology for improved thru-hole penetration and uniform coating.
Brad Bennett
Universal Instruments
Universal views 2007 with a great deal of excitement. We enter the year with a supportive new parent organization, an expanded product line, and a sharply narrowed focus with the creation of Unovis. The Genesis pick-and-place line grows to include a high-speed solution and a flexible high-mix solution. These developments help Universal and its customers face the accelerating adoption of small parts technology, as well as advancing challenges like lean principles, uncertain manufacturing models, and technology convergence under significant cost pressures. We see 2007 as the year that 0201s will move from the components that companies love to talk about to the components that companies must pick-and-place.
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Roland Heitmann
Unovis Solutions
Six months after its formation, our team is energized by market acceptance. Our customers have embraced our novel service offering; membership to our research consortium is strong; we are enabling high-volume, flip-chip assembly with feeding, process, and assembly solutions; and we are delivering automated solutions to the automotive, medical, and telecommunications markets. We are engaged with our customers at all stages of the product cycle, and are setting new sales channels. Our goal is to deliver our message to as many customers as possible in 2007. Our challenges will be outwardly focused and will revolve around optimizing channels of engagement with customers in semiconductor, medical, and automotive assembly sectors. Assembly challenges abound in our industry: lead-free implementation, high-speed module assembly, and PoP for SMT.
Howard Rupprecht
Valor Computerized Systems Inc.
Businesses will continue to face three main challenges: change, complexity, and competition. Product life cycles are getting shorter, consumers expect greater choice, and competition is cutthroat. Valor believes that successful companies will look beyond capital equipment and focus on optimizing the wider manufacturing process. As companies strive to be lean, software may be the true differentiator and play a larger part in efficiently scheduling production, setting up and monitoring line performance, and ensuring maximum yield. There will be many disparate processes, and an integrated software solution will manage them more efficiently.
Mark Zetter
Venture Outsource Group
EMS/ODM companies of all sizes are expressing more difficulty finding ways to differentiate and communicate value propositions. EMS companies under $400 million revenues without supply-chain leverage or in disruptive technology applications or emerging end-markets will continue to find profitability and market differentiation challenging. Some smaller EMS companies in previously cost-competitive geographies such as Australia are being pushed aside as Indian EMS gains footing, as other nearby countries such as Thailand and Vietnam continue to develop infrastructure depth and expand service offerings. Increasing brand recognition in the industry, forming joint ventures with other outsource providers, and developing beneficial multi-lateral provider-provider deals to improve growth rates will be priorities for smaller EMS providers.
Carsten Salewski
Viscom
As Viscom continues to invest in new technology, we look forward to developments in 2007. We will highlight an AXI system and a broad portfolio. Our expanded service and applications team will work out of our larger Americas headquarters in Atlanta, Ga. We also opened a service and applications center in San Jose. The U.S. inspection market will continue to grow, leading more companies to invest in AOI and AXI.
Douglas Robinson
VJ Electronix Inc.
VJ Electronix has experienced growth over the past year due to the lead-free initiative and our sales channel. For 2007 we are introducing an X-ray line and a cost-effective rework line. Our X-ray inspection product line will increase sales. We are expanding our sales channel further into Eastern Europe, the Ukraine, and Russia. Our new production and engineering facility gives us room to grow; engineers at VJ Electronix and VJ Technologies are collaborating on several design projects. The challenges facing our company are similar for many companies in this market. The uncertainty of the market and the decisions of major EMS companies about plant locations and capabilities help shape our planning to support their global operations.
William Gotha
Ward Hill Marketing International
We are expanding to cover a diverse customer base and set of target markets for our clients. This means doing business on three continents - in multiple technology arenas - pairing print and digital media. Technology companies are struggling to provide innovation and high productivity in a burgeoning global market. Innovation is a high-value market; high productivity is a cost/performance market. Keeping the two in balance will be a challenge in 2007. Global market dynamics will continue unabated in 2007. Some clients will be sourcing and manufacturing on one continent and marketing on another. Remembering your audience, and where they’re located, is key to turning globalization to your advantage.
Hamed El-Abd
WKK Distribution Ltd.
2007 will be a challenging year, as we will face more heated competition and pricing pressures. We will see more manufacturing moving to China, as well as more locally produced equipment with improved quality and added pressure on foreign-made equipment. WKK will increase the scope and type of support available to our customers, finding ways to add value to their needs in production. Our major challenges will be coping with the increasing demand for price reductions and competing with locally made equipment. Another challenge will be an increasing staff of full-support people needed to run a business. We also must address business units that began in 2006.
Oscar K. Wack, Ph.D.
Zestron
Zestron has further expanded its capabilities to prepare for 2007 and respond to the 30% global increase in the demand for high-precision cleaning. North American operations relocated to a new global headquarters in Prince William County, Va., with a 15,000 square-foot Application Technology Center. This facility also will allow us to expand our technical expertise and analytical support in 2007. Zestron’s Asia/Pacific facilities in Shanghai, China, also expanded this summer. In Europe, we continue to add new employees; we are investigating a precision-cleaning building, possibly as early as fall 2007. The true challenge is to ensure that internal and external customer service is maintained, while adding employees.
SMT December, 2006
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