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Equipment Market Benefits from Lead-free Laws

(August 30, 2007) PALO ALTO, Calif. — The EU's RoHS Directive has had a significant effect on the surface mount assembly industry — both positive and negative. But removing lead from electronics products had been a boon for certain SMT equipment providers, specifically screen printers, soldering equipment, cleaning systems, and inspection, claims research firm Frost & Sullivan.

Increased equipment sales are just one part of the lead-free ripple effect. The RoHS Directive also has required companies to change design and manufacturing techniques, creating new product strategies and modifications to existing equipment. Aerospace and defense device makers, while exempt from the legislation, face obstacles in the wake of lead-free conversions.

Leaded component obsolescence issues have forced these manufacturers to redesign several products. "Even though the suppliers of these components insist on manufacturing leaded parts for military purposes, they will have to get fine-tuned to the rapidly changing technology, and to the rise in prices for these parts as they cater to a significantly small market," says Ashwin T. Ananthakrishnan, research analyst, Frost & Sullivan.

Lead-free assembly conversions are expected to continue long term. Adopting lead-free materials and meeting environmental legislation, in addition to moving more manufacturing to Mexico, may help electronics manufacturing in North America, notes the firm.




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