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2009 Industry Forecast
December 31, 1969 |Estimated reading time: 40 minutes
This article represents a collection of viewpoints from industry leaders, answering both “How can PCB assemblers control costs in these economic times?” and “What will be the most impactful technological advances in 2009?” Lean manufacturing, creativity in business operation and technological development, and the promise of new energy sources are shared goals.
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Aqueous Technologies Corp.
Michael Konrad, presidentAlthough 2008 brought us record sales revenue, the general economic outlook for the nation is tentative. We cross-trained staff, installed lighting control systems to reduce energy use, and negotiated lower freight costs. We instituted travel policies that make better use of alternative airports. We have invested in video conferencing, providing customers with high-quality training. We also increased the level of quality control and engineering excellence to reduce service-related travel.
Lead-free technology continues to fuel the defluxing equipment industry. The decline of conveyorized defluxing technology in favor of high-yield batch format technology will continue. Increased transportation costs and environmental regulations will make chemical reuse and closed-loop defluxing technologies more attractive to new buyers. Technical improvements in SPC and cleanliness testing will fuel growth for fully automated defluxing systems.
Assembléon Netherlands B.V.
Sjef van Gastel, manager, advanced developmentConcentrating on the quality of the finished boards will control costs. A well-controlled and integrated SMT process increases first pass yield and reduces rework. Pick-and-place machines using parallel placement have better results and rework ratios than sequential machines. They also have lower energy costs. Selecting machines that need only limited maintenance will help to reduce on-site maintenance and repair costs.
The ongoing addition of functions into handheld electronics such as mobile phones and PDAs is only possible through further integration and miniaturization. Assembly of ultra-miniature 01005 components will grow in importance, as will 3D assembly of stacks of up to three PoP components. Passives will also increasingly be integrated into the substrate, so we will see more embedded components.
Asymtek
Greg Wood, VP, sales and marketingConsider the overall cost of ownership of assembly equipment that you purchase. Understand fully the cost of poor quality; purchase equipment that will improve yield. Understand the advantages of flexibility and purchase equipment that can be reconfigured for different products easily. For dispensing equipment, understand the cost attributed to fluids and purchase equipment that dispenses no more than the exact amount required.
Trends toward array and 3D packages will continue regardless of the state of the economy. The pace of this adaptation may increase as production volumes drop. We expect to see more PCBs requiring post-assembly precision coating.
AVX
Ron Demcko, AVX fellowPCB assemblers will control total system costs with array components in designs and implementation of devices with low parasitic loss. Array components are available in EMI filters, capacitors, and resistors. Placement costs are lower and systems get smaller and more reliable. Low-parasitic-loss components can reduce overall component count and shrink PCB size with potentially lower emitted radiation.
Electronic designs will seek to offer higher reliability, power efficiency and utility. This will allow designers to investigate most efficient circuit solutions rather than just cutting and pasting previous design revisions. Low-loss passive components will be in great demand, as will components that extended battery life. Low-loss vertically stacked ceramic capacitors might be used in making higher switching frequency power supplies for smaller, lighter, and more power-efficient products.
Balver Zinn
Paul Salmon, business development managerMaterials choice and sourcing will be a key issue in 2009. It is not going to be about pure price but measurable value. It is too easy to focus on price without looking at the whole equation that defines efficiency.
Lead-free solder pastes are improving to the kind of operating window and stability assemblers worked with before the RoHS change. We are close to the limits of present materials and machines in terms of component density and thermal management.
BEST Inc.
Bob Wettermann, CIT, presidentIn the prototype assembly area, we look at getting our customers out of bad economic circumstances by delivering designs as quickly and accurately as possible, jump starting sales. By concentrating on lower build lot sizes, we assist OEMs and nameplate holders in holding onto less inventory and providing better turns/quick ratios.
There are several trends that will accelerate and continue to challenge PCB rework and repair, including stacked package area array devices, smaller footprint QFNs, and RF shields.
Bliss Industries Inc.
Ken L. Bliss, CEO and VP of engineeringCompanies need to get serious about lean manufacturing; it is grossly misunderstood. Removing wasted processes and reworking PCBs because the original process is flawed remain paramount. Unaccounted-for downtime is unacceptable. Process engineers tell us that they assemble one PCB/minute, but only complete 200?275 boards in 8 hours. Recapturing downtime with off-the-shelf processes and tools will reduce costs, so much that we could compete with China.
We have some amazing technologies that need to be made easier to use and less expensive. The iPhone, notably, works well, but needs efficiency improvements when used as a tool not a toy.
BPM Microsystems
Lyman Brown, VP and COOBeing smarter with inventory assets is a way to reduce inventory levels and carrying cost. Semiconductors generally are highest-priced components on any assembler’s material list. Programming these chips closer to the manufacturing line by in-house device programming equipment can cut total length of ownership.
The recent drop in flash memory prices will dramatically increase the amount used on each electronic assembly. The implications to PCB assemblers will be ever-increasing time of factory programming these mass amounts of memory during production. Design engineers continue to push for this new capacity by adding more code to each memory chip.
BTU International Inc.
Jim Griffin, VP of sales and serviceControlling costs starts by controlling your process. Process control through the implementation of global quality standards decreases total cost of ownership by increasing process yield for the same investment of up-front and ongoing costs. In today’s global manufacturing environment, this is a bigger challenge, central to customers’ success.
As the industry matures, companies must become more flexible to deal with changing business conditions. On the manufacturing floor, efficiency must increase despite changes in product sets and manufacturing volumes. Use of multiple lanes allows assemblers to increase their throughput and reduce infrastructure investments.
CeTaQ Americas
Michael Sivigny, GMWhere do costs come from? Defects. Controlling defects is the answer to improving the bottom line during all economic times. Not enough attention is paid to where defects come from, mainly because it is difficult to track them back to root causes. Regular machine maintenance, calibrations, and accuracy optimization are proven to reduce defects and improve line efficiency.
Statistical process control techniques with related equipment and software will make the difference in 2009. Understanding of the tools and proper implementation absolutely are necessary across the industry.
Christopher Associates
Matt Holzmann, presidentThe EMS industry has been driven by cost reduction programs and practices since its inception. Now it is faced with an unstable market and unpredictable materials and infrastructure costs. One area that traditionally received little attention is yield improvement. Too many companies still rely on repair and rework to ship product. Every dollar saved through yield improvement drops directly to the bottom line.
In technology, the market has been relatively stable. Improved circuit design to implement high-density interconnect as a cost reduction tool is one alternative. Maturation of lead-free is another.
Cimtek
Chris Rehl, director of marketingToday’s economic downturn is shifting operational strategies among electronic manufacturers. A rise in offshoring shows how manufacturers can save and contain costs. The outsourcing model enables savings by allowing OEMs to build where they sell, use EMS providers’ capital equipment and avoid the direct capex hit, as well as taking advantage of lower labor rates and reduced component costs. WA rise in outsourcing gives way to higher risk in quality issues. Remote locations can lack accountability and oversight. Close management of product quality is a baseline requirement. For many electronics manufacturers, this means outsourcing product quality management to a technology-enabled services provider. This engagement provides personnel and real-time data collection and analysis where it can play an important role.
As they weather this economic storm, manufacturers need to ensure quality remains at the forefront of every product launch. Anything less can immediately offset the savings gained from the move overseas, and cause more of a financial nightmare.
Cluso Vision Systems
Greg Ross, CEOCost reduction will not come from leveraging economies of scale associated with higher production volumes. Cost control will come from embracing the tenets of lean manufacturing and Six Sigma. Manufacturers must do everything possible to eliminate waste from inefficiency, defective parts, and rework. This is not a one-time effort; it must be accomplished within a new corporate mindset of continuous process improvement and rigorous process control.
Technological advances on the semiconductor side will continue to bring smaller, better, and cheaper components. On the assembly side, advancements in machine system control and process integration will have widespread impact. R&D projects underway may completely change the way boards are assembled; however, for the near term, improving assembly equipment performance through accurate and flexible system control will affect all manufacturers. This, combined with data integration on the manufacturing floor and between the customer and the assembler, will advance the production process.
Cookson Electronics
Bruce Moloznik, VP of global marketingThe most important trend is an increased focus on total cost of ownership. As assemblers have fewer internal technical resources, they may be more reliant on their suppliers to provide costs analysis. The most significant trend in this area is around lower-silver lead free alloys. We’ve seen investigations by major OEMs and EMS companies into lead-free SACX alloys.
CyberOptics Corporation
Steve DiMarco, VP & GM, inspection systems businessImproving line yields will be a significant way to control costs. While AOI at the end of the line can catch many defects after the fact, solder paste inspection (SPI) upstream can help operators make the process adjustments necessary to reduce the number of defects produced. By using SPI technology, assemblers move beyond catching defects to preventing defects.
In the inspection area, increased capability in the camera and computer subsystems within inspection machines means higher performance at higher inspection speeds. This will be critical as assemblers run more 0201s and 01005s at high line speeds.
Dage Precision Industries, a Nordson Company
Paul Walter, managing directorBoard-level assemblers can control costs by maximizing yield so there are fewer first-pass failures and corresponding rework and waste. Assemblers need to concentrate on setting up the right inspection regimes to weed out reoccurring problems. X-ray inspection requires user-friendly features and nanometer feature recognition. Payback is substantial, considering the full range of faults it can detect.
Any technological advances that help with yield enhancement will be impactful. In the X-ray area, a difficult issue is the ability to detect head-in-pillow (HIP) or head-on-pillow (HOP) failures. This type of failure can give rise to an intermittent field problem, though it may pass outgoing inspection. We currently are working with leading authorities on a software routine that will automatically identify this sort of fault.
DEK International
Michael Brianda, presidentElectronics assemblers must take a closer look at cost models; tactical initiatives for running an efficient operation should apply any time. Partnering with strong vendors early in product development will enable robust production and faster time to market. Reducing the number of vendors will positively impact supply chain management. Concentrate on the core business, reduce inventory, implement shorter lead times, and understand true cost of ownership.
Those technologies that offer exceptional process optimization and efficiency solutions will have the most impact. We have spent considerable resources investing in breakthroughs that offer this kind of ROI. Dual-lane printer platforms reduce floor space without sacrificing volume requirements, a single system that combines printing and dispensing technology with closed-loop quality verification and traceability, and productivity tools to improve accuracy all help manufacturing efficiency and yield.
DKL Metals Ltd.
Colin Longworth, managing directorFocus on quality and reliability. The SN100C alloy provides increased reliability for solder joints over brittle SAC alloys. SN100C also has a lower rate of copper dissolution, helping PCB assemblers adapt to upcoming new technologies. It is reliable due to its inherent ductility.
In 2009, quality and reliability will be important and we will continue work with the NPL to help the industry understand the influence of copper dissolution on the reliability of lead-free solder joints. We also will work with manufacturers to improve the reliability of their solder joints with the SN100C alloy for wave, selective, and other soldering processes.
Dow Corning Corporation
Marjorie Dwane, global marketing manager, electronics protection & assemblyIn today’s economy, board assemblers need their strategic materials partners’ help to reduce cost of ownership. Escalating energy costs have accelerated the need for more efficient processing. Materials that can be processed at low or room temperature eliminate expensive, energy-intensive ovens. Easily reworked materials enable populated board to be salvaged instead of scrapped. Besides reducing manufacturing risk, silicone materials provide insurance against design and assembly flaws and end-user abuse, which contribute to product failures and higher warranty costs.
Dynatech Technology/Samsung
Mike Foster, GMIt’s tempting to save costs on capital investments by considering used equipment or older technology. This approach can end up costing more, with a drop in quality and productivity. The safest path to growth in difficult times is to align with a supplier offering a complete package without hidden costs, using the latest technology.
Alternative energy has certainly made headlines recently, with good cause. We suspect that substantial investments will be made in solar technology, which could certainly be a technological driver for the next several years.
EasySpheres LLC
Eric Baker, VPAssemblers must be more effective with the resources at their disposal. Lean manufacturing requires an ever-improving understanding of the processes they control. Small investments in training people on measurement and analysis tools often yield impressive cost savings.
Component miniaturization and growth in flexible assembly techniques as applied in the workplace will impact 2009 the most. Assembly lots of one with zero defects should be the goal of every manufacturer.
Ekra America
Steven Hall, presidentAt this time, PCB assemblers will need to be as efficient as possible. Ensure that the assembly equipment you use is easy to interface with and as reliable as possible. Equipment will need to have useful technology that benefits the process and not have useless bells and whistles that only look good on paper.
Assembly equipment developments that provide flexibility and multi-use technologies will have the most impact in 2009. For example, printers that provide the highest level of vision and inspection capability while also hosting alternative processes like glue dispensing.
Elcoteq
Carsten Barth, director, marketing and communicationsThe total cost of ownership approach is key to cost-efficient EMS, while strong DfM capability plays an integral part in cost savings. In times of increasing transport and logistics costs, a global footprint of manufacturing sites is vital to reduce costs.
Green manufacturing will dominate 2009. Key priorities are energy-efficient manufacturing, avoiding hazardous materials, and fulfilling REACH requirements. All this will save EMS costs and help customers with efficiency and image. Green manufacturing will be supported by strong corporate responsibility, i.e. working conditions and IP protection.
Electrolube
Brian Moylan, GM, North America operationsElectronics manufacturers should continue to look for standardization of products being sourced for their production needs. A company with manufacturing sites in many parts of the world should consolidate their materials suppliers, instead of sourcing individual products from individual suppliers. By reducing vendors, they can extract costs and leverage better pricing.
Everything related to renewable energy sources is hot now and will continue to be in 2009. I see advances in solar panels and their energy converters, wind turbines, etc. The focus to clean the environment and relieve the world of its dependence on oil has stepped up tremendously in the past year.
Endicott Interconnect Technologies Inc.
James J. McNamara, president and CEOWhile we anticipate growth in 2009, we are cautiously optimistic due to U.S. financial and economic conditions. Our strategy includes increasing effectiveness with cost control measures realized through the implementation of a company-wide business excellence program targeting efficiencies, yields, costs, and cycle times. Our consolidation efforts are removing process steps and cycle time from manufacturing operations.
In technological advances, electronic-package miniaturization will be key. SiP offers more functionality in less space, saving weight and cost while improving electrical and thermal performance.
Essemtec
Martin Ziehbrunner, CEOUsing the right machines for smaller lot sizes and more product changeover, as well as working with a wider range of components, will allow assemblers to stay competitive. MIS software, which allows optimizing and simulating production runs and changeover in advance, can help machines reach optimum cost-effectiveness. This requires investing in new machines designed for this purpose.
We won’t see a major technological breakthrough in 2009. SMT is a mature technology; however, there are continuous advances toward higher precision for smaller components, a combination of bare die and SMT, and more multifunctional and faster machines.
Europlacer North America
John Perrotta, VPControl costs by applying advanced manufacturing techniques and serving customers more effectively on all fronts (price, delivery, quality, transparency). Assemblers should be benchmarking their order fulfillment cycle. Involve personnel from each functional area. Identify areas where resources should be applied based on business values. Prioritize actions in the order of maximum benefit to the customer. Focus on material management because a significant amount of cash is dedicated to buying and carrying assembly materials. Possess capital equipment that facilitates business needs rather than impeding them.
Advanced software tools and vision systems that automate setup verification for high-mix assembly environments will have the biggest impact in 2009. American PCB assemblers are in desperate need of automatic equipment that reduces order fulfillment process times via unparalleled first-pass yields, fewer people supporting the line in high-mix environments, and comprehensive tools that facilitate ongoing cost improvement activities.
EVS International
Simon G. Norman, directorAggressively adopt ISO 14001 and recycle/reduce/reuse all of the waste material that leaves your production facility. This will have a positive impact on cash flow, profitability, and the environment. One of the easiest savings is to recycle the dross made by the wave solder machine. Recycling using mechanical recovery will give a fast ROI and improve operator productivity and the soldering process.
We do not see a quantum leap in any of the available technologies and see the way forward as refining all production processes. Reducing waste and improving productivity in the production area will impact profitability while reducing carbon footprint.
FINETECH
Neil O’Brien, sales directorWe help customers control costs by reducing PCB scrap. As board assemblies become more complex, per-board value increases. We see applications where the cost per board, if scrapped, would easily justify the cost of a rework system.
Rapid advances in flexible circuits are exciting. Flex in advanced technologies will grow and its impact on miniaturization will be significant. Wider adoption will impact all areas of electronics. In 2009, we will see more rework on flex with leading-edge component designs.
The GoodBye Chain Group
Jim Dills, managing directorTo control costs in 2009, PCB manufacturers should collect and analyze material and substance composition data for all of the components that make up their finished products. RoHS, RoHS2, and REACH will impact the cost of customer retention. If full disclosure component information is not available upon customer request, manufacturers will find themselves constantly performing ad-hoc fire drills to collect and analyze component-level substance information. Implementing a dedicated full-disclosure data collection and analysis program will reduce costs, retain customers, and provide a competitive advantage.
Henkel Corporation
Joseph DeBiase, senior VP and GM, Adhesive Electronics Assembly GroupCompanies can save money by operating based on yield, throughput, defect rates, work life, ease of interface, process step elimination, compatibility, global service, and support. Focus on fewer suppliers – value-driven suppliers can help specify critical-to-quality functions and shorten time to market while ensuring that the solution is fit for the purpose.
Halogen-free technologies are in a range of assembly materials including lead-free solder pastes, wave soldering fluxes, CSP underfills, sealants, coatings, and other encapsulating materials. For demanding applications such as photovoltaic solar cell assembly, low-temperature processes such as RFID, and high-operating temperature automotive applications, 100% tin-compatible conductive adhesives will be the preferred joining medium. Epoxy flux technology affords streamlined PCB assembly operations by combining fluxing and underfill protection into a single material, which has a broad application range including fine-pitch and/or large BGAs and CSPs as well as PoPs. In each case, positive environmental and/or economic impact will be realized.
High-Tech Conversions Inc.
Claudio Orefice, presidentMany companies are sourcing lower-priced products to lower costs. This is a good idea. However, they must be careful to not buy inferior products that will cost them more in the long run because of quality issues.
Environmentally friendly products are important – we all need to do our part in making sure our children have a clean earth. There are many recycled and recyclable products we can use that do not cost any more. When there is a choice, pick the green product.
Indium Corporation
Eric Slezak, director of business development and assembly products market segment Electronics assembly is moving toward denser and smaller assemblies, greater environmental responsibility, and lower costs. Although there is no blanket replacement on the horizon for soldering or even the older technologies, new technologies and solutions continue to be added. While lead-free soldering has been widely implemented, wave soldering, hand soldering, and lead-containing solders still thrive.
The market needs high-volume 0.3-mm-pitch assembly and halogen-free solutions that make PCB reclaim less environmentally hazardous. Fine-tuning lead-free soldering issues (alloy costs, lead-containing and lead-free mixed technology, and greater reliability under thermal and vibrational shock) is important. Paying the cost to solve tomorrow’s problems may become problematic when the consumer places a higher value on mass quantities of cheap things, and OEM and EMS companies mirror the consumer.
Inovar (an inthinc company)
Jed Jones, VP of sales and marketingBusiness is a marathon, not a sprint. Stakeholders want a financially stable and fiscally responsible partner in manufacturing. We have developed a strong culture of quality and service at competitive prices. We have people and processes in place to ensure success. Manage your business cautiously, while being optimistic for growth.
Two primary concerns for our industry are avoiding counterfeit product and maintaining environmentally friendly manufacturing. We’ve invested heavily in our supply chain solutions, XRM technology, and other equipment. Our focus is to maximize results with current capital investment and expand where necessary.
Inovaxe Corporation
Bob Douglas, presidentPCB assemblers must control costs by implementing lean inventory control techniques. There is significant non-value-added labor used to “control” inventory, but traditional inventory control techniques result in inaccuracies. They need point-of-use inventory storage, elimination of non-value-added transactions, tight ROHS and MSD control, and reduced surprise stock-outs.
One of the most impactful technological advancements for 2009 will be in the management of MSDs and the reduction of quality issues such as micro-cracking. As more manufacturers transition their components to RoHS compliance, the MSD sensitivity levels will increase. Managing the storage and presentation of MSDs to the line will have an immediate impact.
International Electronics Manufacturing Initiative (iNEMI)
Jim McElroy, CEOMaterials development is an important underpinning of most technology advances. Our roadmaps consistently point to materials as key enablers for new technologies, improving product performance and reducing environmental impact. Miniaturization and high-density packaging are entering new market segments, offering mixed semiconductor technologies and improved power and electrical performance. They demand greater dimensional stability on substrates, tighter control of CTE mismatch, and better electrical and thermal properties. Nano-technology holds great promise here. Industry needs to place a greater emphasis on total lifecycle impact – raw materials mining, energy use, end of life, etc. Consider a product’s impact at the design stage. For example, use recycled instead of virgin plastics to reduce oil consumption. At iNEMI’s Sustainability Summit, there were repeated references to “de-materialization,” using less material for a given function.
IPC – Association Connecting Electronics Industries
The combination of DfM with lean/sigma manufacturing techniques generates a productivity increase while improving quality and cost-effectiveness. Use of standards, such as IPC-7351A, allows designers to lay out PCBs without customization. Decreasing customization results in better efficiency from parts procurement to inventory turns. Looking beyond manufacturing costs, PCB assemblers should take advantage of applicable tax credits for research and experimentation or process improvements.
PoP will become mainstream in 2009. Integrating vertically combined discrete logic and memory devices in a BGA package has become commonplace. Another technology driver is environmental regulations, pushing manufacturers to consider alternative materials and processes. For example, the ECHA estimates 10?30% of its classified chemicals listed will disappear as a result of REACH.
iSuppli
Adam Pick, principal analyst for EMS/ODMMost EMS providers don’t have any short-term debt maturities that could impact operations and most have significant cash reserves that could mitigate short-run financial issues. A recession could prove opportunistic for contract manufacturers, specifically EMS/ODM. During the 2001-2003 recession, EMS/ODM suppliers experienced a rubberband effect that stimulated significant revenue growth post-recession. Top ODMs increased their annual sales from $12 billion to $37 billion during 2001-2004 while EMS providers had an 11% CAGR during the same timeframe. This same effect may apply this time as OEMs refocus on core competencies, investigate ways to minimize cost structure, and shore-up their balance sheets. This doesn’t mean things will be all rosy. Some EMS/ODM suppliers will definitely feel the pinch of a slow economy.
Juki Automation Systems Inc.
Bob Black, president and CEOIn an uncertain economy, it will be paramount for PCB assemblers to control inventory and maximize quality and efficiency. PCB assemblers should look for vendors that emphasize intelligent setup, have a reputation for quality, and feature quick and easy changeover. Equipment should be easy to operate, and supported by rugged trolley hardware and line-optimization software.
The most impactful technological advances will focus on improving manufacturing quality and efficiency. One example of this is offset placement software in the pick-and-place machine that has the intelligence to place parts on the solder paste instead of the pads, correcting for board skew or printer misalignment problems.
K.R. Anderson Inc.
Jeff Wagner, global sales managerAs a metals and chemicals distributor, I see margins getting tight – cost reduction will be difficult, other than due to metals pricing changes. There are reductions to be had with inventory control and supply chain modification. I am not convinced that contracts awarded to companies supplying everything from soap to solders will benefit small-/mid-sized assemblers.
There will be a push toward halogen-free assembly products. We are already receiving requests because customers are worried about higher temperatures and the problems that they may cause with smaller-component reliability.
Kester
Brian Smith, global sales and marketing managerAssemblers will need to optimize work cells, minimize waste, and reduce defects to control costs. PCB assemblers should be with the size of their workforce to match potentially reduced demand.
Halogen-free transitions will start with early adopters in 2009, leading the way through this next wave of green manufacturing processes. Nearly all legacy solder pastes and liquid fluxes contain some halogens, so soldering materials companies will be creating innovative new materials to meet this challenge.
KIC
Bjorn Dahle, presidentMajor new cost factors are energy, material, and labor (in developing countries). The solution is improved processes and automation to eliminate waste and labor, and to optimize energy use. Technologies now exist to optimize the oven recipe for lower electricity use with optimum process window.
The trend to miniaturization and complex electronics will lead to PoP and advances in medical, automotive, and gaming electronics. These technologies are harder to assemble. They will drive better process control, monitoring, and automation. We have launched the Reflow Process Inspection (RPI) reporting system, like embedded AOI for the reflow oven, monitoring DPMO and process yield.
Krayden Inc.
Wayne R. Wagner, presidentCompetition is the greatest innovation and cost driver. Too many assemblers are looking to eliminate or reduce departments within their organizations rather than looking for alternative sources of raw materials and finding cost savings the old way. Outsourcing purchasing/inventory management eliminates personnel and reduces costs short-term, but you lose the best ideas and new products by taking out key supplier interaction. We need to build up creativity, the ability to negotiate contracts, and relationships that support us in times of shortages.
Key in the year to come will be advancement in efficient harnessing of cheap, abundant energy: solar, wind, and biomass.
Kyzen Corporation
Tom Forsythe, VPLean manufacturing has been a mantra for years and can provide outstanding results. A well-performing cleaning process and modern materials can improve yields and contribute returns beyond cleaning costs.
Growing demand and rapid adoption of modern cleaning materials designed for the latest no-clean and lead-free technologies will dominate the assembly market with more EMS providers competing for high-reliability builds with higher margins. Better quality (customer), better yields (EMS provider), and a growing market (cleaning materials and equipment suppliers) create a winning situation.
Manncorp Inc.
Henry Mann, CEO and founderProduction costs can be lowered with the increased flexibility, wider performance, and shortened set-up times of new equipment. Some pick-and-place machines are equipped with slim feeders and feeder carts that double or triple their capacity. Newer wave solder machines use less electricity and require only 100 kg instead of the usual 220 kg of solder, saving money on consumables.
The technological advances of expensive high-end equipment have filtered down to lower-cost machines, enabling all assemblers to employ efficiencies. Jobs are moved in and out quickly, maximizing equipment usage to permit contract assemblers to expand sales by serving a wider customer base. It also gives OEMs stronger options for in-house SMT assembly.
Mentor Graphics Corp.
Henry Potts, VP and GM, Systems Design DivisionManufacturing yields and time-to-volume production can be affected by small changes in the manufacturing data. If assembly houses can capture defect data and present those back into the PCB design process in terms of design-for-assembly rules to be followed in subsequent designs, this could improve initial yields, reduce assembler costs, and help the OEM hit tight market windows.
We see use of HDI and microvias increasing as BGA pin-out densities overwhelm the use of traditional PCB thru-hole vias. HDI is becoming necessary to fan out from these dense BGAs and route to other components on the PCB. We offer tools for this, and publish guidelines on our Website.
Milara Inc.
Stephen K. Brodeur, director, printer divisionContinuous flow manufacturing (CFM) states that every time the production line stops, companies lose money. By seeking out special handling equipment for bad or rejected product handling, companies can keep production flowing and concurrently analyze problems.
High-throughput solar cell manufacturing and increased cell efficiency will change 2009. Some nano coating technologies look promising. Dispensing seems to be coming back around to yield a wider variety of applications. Moreover, dispensing in a stencil printer is more desirable. Flexible solutions are what we will be focusing on when we release our new in-line printer at APEX 2009.
MIRTEC Corporation
Brian D’Amico, presidentPCB assemblers embrace change that enables them to compete with ever-decreasing profit margins. Many EMS providers and OEMs have turned to AOI to acquire quantitative inspection information that helps streamline manufacturing processes and reduce defects. Increased first pass production yields decrease costs, save time, and reduce rework.
The global trend toward PCB miniaturization is a driving force behind many of the technological advances that will greatly impact PCB manufacturing in 2009 and beyond. The industry-wide migration toward flip chip, DCA, C4, COB, microBGA, CSP, 0201, and 01005 devices will strain the limits of electronics manufacturers, equipment suppliers, and others.
The Morey Corporation
Chris Murphy, director of process engineering Soldering is evolving along predictable paths. Selective soldering is expanding in applications range and users. Wave soldering is decreasing, generally being replaced by selective and more sophisticated reflow-based processes. Miniaturization in electronics packaging advances. Component densities are tighter as packages shrink. This presents greater challenges for assemblers, and narrows the process window. It also makes rework trickier. Lean manufacturing techniques are finding more widespread adoption. Standardized processes are decreasing cycle times.
MYDATA
Robert Gothner, VP global marketing and salesMYDATA helps customers control costs throughout our entire pick-and-place concept. Our Agilis feeder system and software packages are improving operational efficiency with rapid loading and changeovers. This smart feeder system, in combination with the dual-head MY100 and the MY500, is a safe investment to improve logistics and lower operational costs.
Market acceptance for the MY500 jet printer will increase, as it suits high-mix production. We will improve the machine functionality, performance, and software functions. Fast NPI runs are becoming critical. The MY500 solder paste application meets this need.
NexLogic Technologies Inc.
Zulki Khan, founder and presidentKnow how to balance your customer’s needs and your costs. That comes with experience. It includes lower-cost offshore fab houses if turn time allows, smart component purchasing for 99% compatible devices and costs, batching up board quantities for economies of scale and reduced labor costs, and obtaining longer vendor payment terms for a healthy cash flow.
Growing trends toward portable handheld and lead-free products are changing the PCB technical landscape. Consequently, DfM technologies and associated issues take on new meanings. You must deal with shrinking real estate; keep up with evolving BGA, QSN, and CSP packaging; and maintain tighter manufacturing tolerances.
Nihon Superior
Masato Nakamura, business development managerManufacturers are always driven to reduce material costs and must continue to do so to deliver cost-effective products. End-product reliability also is important to reduce costs. Reliability is especially a concern for PCB assemblers using lead-free soldering alloys and delivering lead-free products.
Halogen-free will receive attention in 2009; many companies are diligent in R&D. Several halogen-free solder pastes and flux-cored solder wires were introduced recently. As new technologies ramp up, halogen-free product performance will be better.
OK International
Tom Seratti, VP, global sales and marketingNew processes and higher levels of optimization will have the most impact on costs in 2009. The responsibility for process development increasingly is becoming that of suppliers, and we’ve taken on that challenge. It’s a genuine opportunity to be of increasing value as true business partners to customers worldwide.
PCB assemblers have told us that they achieve improved cost control by leveraging three distinct advantages from their supplier: reduced training requirements, superior advanced applications expertise, and higher productivity.
Omron Electronics LLC
Chris Speck, AOI business unit managerTwo effective techniques for cost reduction are implementing lean initiatives and optimizing production processes to reduce rework costs by correcting the root causes of defects.
Improvements in applying X-ray imaging technology will enable high-speed, 100% inspection at in-line speeds for BGAs and QFP heel fillets. The ability to selectively apply CT (precise) and tomosynthesis (fast) within a single inspection pass helps increase speed and eliminate shadowing and interference from SMT components on double-sided boards. Most current X-ray inspections are slow and off-line, making them useful only for selective batch testing.
Optimal Electronics Corporation
Ranko Vujosevic, Ph.D., president and CTOAssemblers should use slow times to become leaner and better. Implementing lean manufacturing in all phases will position the company to emerge as more competitive with better quality products and services. Lean manufacturing will help reduce cost while increasing quality. Slow times should be viewed as an opportunity to make a company better, not smaller.
Advances in software technologies to affordably track process and material traceability requirements will spread throughout the industry. As these products mature and storage costs decrease, companies will be able to afford software systems to meet the ever-increasing quality demands.
Ovation Products
Neil MacRaild, presidentThe most obvious cost control is to ensure maximum usage of existing equipment. More productivity can be gained from current equipment with only a few simple modifications. Look outside the box for these solutions – there are many companies focused on delivering products to improve yield, enhance throughput, reduce waste, and offer greater efficiency. These tools do not have to be complicated or expensive, but the payback can be huge.
I don’t foresee any true 2009 breakthrough. Increased capability and smaller-footprint SMT equipment will be drivers. Achieving multiple functions in a single equipment footprint offers incredible manufacturing versatility and cost savings. Though there have been attempts at these types of multifunction platforms in the past, none have proven robust; this will change in 2009.
P.D. Circuits Inc.
Gene H. Weiner, advisory board of directors and acting senior VP Assemblers can reduce costs by using tin recovery from dross systems in their soldering operations, reducing the number of bare PWB suppliers by using PWB supply chain management companies, and making better use of real-time AOI to reduce rejects and rework.
We do not see any major impactful technological changes on the horizon. What we see is numerous incremental product and process improvements, better planning, closer partner arrangements, and greater inroads in the design and use of HDI substrates leading to use of improved fine-particle solder paste.
Phoenix | X-ray
Tony Williams, regional sales manager, East CoastEMS providers need to focus on quality control and yield improvement. This is done through X-ray inspection of all hidden joints, reducing warranty expenses and rework costs.
Systems are capable of automatic defect detection of hidden joints while negating the need for expensive, inefficient high-speed in-line units with substantial defect rates. Products like the microme|x x|act, an automated unattended defect detection package that detects critical hidden joints, allow a factory to control and monitor its process through sampling rather than testing all joints.
Photo Stencil LLC
L. Todd Woods, VP operations and COOBeing in the assemblers’ supply chain, I see supply chain initiatives as a great way to put in cost control measures. Establish global pricing agreements with supply chain partners for long-term benefits. Leverage comes in preferred pricing, and suppliers often offer intangibles to get a global contract.
In 2009, further development of lead-free materials and supporting processes (printing and reflow) will continue. More drop-in materials must be developed so as not to disrupt processes established at the assembler. Additional adoption of ultra-small passives and complex multichip devices will extend the capabilities of inspection technology, placement equipment, and rework. Investment in process R&D will be required.
Practical Components
Kevin Laphen, presidentThe practice standards are the same. Qualify your technology, perfect your process, and train your employees. As processes, components, and circuits get more complex and zero defects becomes more difficult to achieve, make use of all methods to reduce defects and rework. Dummy components, test boards, and training kits mitigate these problems by saving as much as 80% cost for evaluation and testing of solder processes, machine setup, CPK studies, thermal profiling, and employee training.
Component miniaturization with increasing I/Os and smaller body sizes will become more common this coming year. Stacked packages with up to 561 I/Os will challenge assemblers. Demand for higher-technology dummy components, such as stacked packages and thin-substrate CSPs, rises.
PROMATION Inc.
Gary Goldberg, presidentBusinesses need to define efficiencies. Business 101 tells us that operational efficiencies, effective use of personnel, and understanding costs are essential to maintain competitiveness. Increased workloads, time-to-market pressures, and other daily factors get in the way of strategic thinking. Another key factor is overall production output. How fast can an organization effectively set up and produce a product with zero defects? This includes parts purchasing/availability, production line efficiency, and use of floor personnel.
While investments will continue in R&D, 2009 budgets may be trimmed due to the economic climate in North America. Recent events in the U.S. financial markets may make it more difficult to secure funding for improvement in manufacturing infrastructures, capital equipment improvements, and tooling costs for new technologies. Solar technology, battery life, and flexible LCD technologies will remain strong.
R&D Technical Services and Vapor Works
Dave Suihkonen, presidentWe are always trying to control costs and manage cash flow. Old-fashioned rules still apply. Everything from supply chain management and proper use of space, time, and resources to staffing and energy management play key roles in controlling costs. With material costs typically out of our hands, efficiency is under our own control.
Having spent the last two years working on rework advances with our new division, Vapor Works, we feel that rework will see the most technological advances. It fits with a global desire to get more value out of products. Rework will play a key role in giving circuit boards new life. Value, in turn, will be the new push in the industry –from board life to equipment life to process feasibility and company sustainability. We will start to turn from a “throw away” society to a repair/reuse/recycle one.
Siemens Electronics Assembly Systems
Butch Garrison, GM, the AmericasManufacturers are evaluating their overall equipment and line efficiencies to improve net output per square foot. Cost improvements are achieved with faster and newer equipment. Lean manufacturing and waste reduction are critical metrics that impact the bottom line. Along with shop-floor optimization, lean manufacturing methodologies should be applied to identify bottlenecks. Continuous improvement strategies build a leaner business with higher productivity, elimination of waste, and accountability across the organization.
Advancing green technology will be at the forefront and will have the most impact in 2009 and beyond. Researchers are all scrambling to find the next wave of fuel-efficient and electric vehicles to new ways of harnessing hydrogen, solar energy, and biofuel.
Speedline Electrovert
Greg Calvo, product manager, Electrovert products PCB assemblers will insist on collecting data to calculate and support net cost savings that equipment manufacturers claim. Across wave soldering, reflow soldering, and in-line cleaning platforms, we provide net cost savings through technologies like reductions in utility costs, increased time between maintenance intervals, increased production rates, improved first pass yield, reduced end-user product warranties, better equipment process flexibility, and process control.
Equipment that performs consistently throughout a long product lifecycle and customer support service is also key requirements to cost savings.
Techcon Systems, a brand of OK International
Can La, product manager PCB assemblers can control cost by selecting the most efficient method to apply adhesives. Precision dispensing systems will produce consistent dispensing output, which will reduce the scrap rate and lower rework costs. This, in turn, will increase productivity.
As components get smaller, manufacturing processes will need to be adjusted to meet new requirements, especially in the adhesive dispensing. A new positive displacement dispensing technology will allow PCB assemblers to dispense smaller shots accurately and consistently.
Totech Super Dry
Richard Heimsch, director, Protean MarketingPCB assemblers’ costs are reduced by avoiding the damages caused by improperly handling MSDs and offering the opportunity to eliminate nitrogen usage. As lead-free processing changes the moisture-sensitivity levels of all components, the costs of not having a real MSD process in place get worse.
The technology offerings that will really matter in 2009 will share at least one common characteristic. They will be new processes, not iterative changes to existing methods. The industry is badly in need of out-of-the-box change in what promise to be tumultuous times.
Valor
Michael Ford, product marketing directorUncertainty is today’s economic reality. Uncertainty implies unexpected problems, but also brings opportunities. We see overreaction to problems and inability to take advantage of opportunity. The solution is agility and flexibility. Carefully managing commitments, whether simply material stocks, working resources, and purchasing key assets is important. Operate with minimal waste while making rapid responses to changing demand. Investment in the best integrated shop-floor software tools is an essential part of achieving this goal and will be the wisest investment made in 2009.
Virtual Industries Inc.
Tom Mealey, executive VPEvaluate individual assembly operations where hand placement of small or odd-shaped parts occurs. Identify where manual parts handling results in damage, contamination, or operator fatigue, and then implement vacuum tweezers to eliminate the problem. Virtual Industries shapes our variety of handling tips based on customer feedback. Increased productivity/cost control does not always arrive in big steps.
As the cost of energy continues to increase we will see growth in the photovoltaic industry. As the U.S. strives for energy independence, this technology will grow and installation costs will drop. We have seen similar growth and cost curves in the plasma screen industry. U.S. manufacturers must look to American workers to provide jobs in this up-and-coming industry.
Viscom Inc.
Carsten Salewski, CEOThe key to PCB assembly costs is first-pass yields, and scrap and rework factors. Our AOI and X-ray inspection systems let customers find 100% of defects and help optimize processes to prevent further defects from occurring. VPC, our enhanced SPC software, shows how to do it right the first time.
Viscom will be introducing faster, higher-resolution AOI cameras, new software features that will help assemblers achieve higher first-pass yields, and a large-board version of its X7056 combination AOI/3D X-ray inspection system in 2009.
Vishay Intertechnology
Craig Hunter, director of global Web marketingCompanies purely cutting costs may open themselves up to a weaker or more uncertain future. Reducing inventory can reduce short-term operating costs. However, ensuring a strong supply chain of components from a manufacturer or franchised distributor will remove the need to spot buy at higher prices and help avoid counterfeits. Energy is the unsolved crisis of the 21st century. Lower on-resistance for MOSFETs, reduced core loss for inductors, and lower leakage currents for all devices are just some improvements we’ll see.
VJ Electronix Inc.
Al Cabral, marketing managerReducing costs requires short-term action with long-term vision. Operating expenses must be balanced with wise spending for future growth. Cash is king, but so is timing. We predict stronger working relationships between equipment suppliers and electronics manufacturers leading to enhanced operational efficiencies, reduced maintenance, and decreased cost of ownership.
In 2009, advances in lead-free processing will emerge from the material science community to optimize high-reliability applications. Shrinking form factors will increase component I/O and densities. Technologies like PoP/high-density packages will be used more, unveiling new processing challenges. CT X-ray may be required for inspection of advanced package stacks.
WKK Distribution Ltd.
Hamed El-Abd, presidentCutting costs will be the biggest challenging for everyone in electronics. We continue to see price increases from components to materials to energy. As cutbacks occur, pressure will make prices drop, but this will take time. As we wait for prices to stabilize, assemblers must be smart in purchasing. Pay attention to productivity and quality, which can improve bottom-line numbers.
It’s hard to see any major advances and how they might impact us in 2009, especially in Asia. As any advances will mean cost increases, people will be hard pressed to invest unless the advances are significant.
XDry Corporation
Kevin McCarten, CEOUse of desiccant dry cabinets to maintain dryness or to dry parts and boards during every stage of the manufacturing process can yield significant savings. Implementing humidity control of active and passive devices along with PCBs from the time they arrive at your door until final assembly only reduces waste and protects critical inventory.
Key technology drivers will transcend the energy initiatives that come with the search for new power sources. Advances in self-reporting, networked desiccant dry cabinets will record and automatically transmit operational data and out-of-process alarms. Ease-of-use and upgradability will improve.
YESTech
Don Miller, presidentImproving yields and preventing defective products from entering the field are critical to reducing costs. Today’s inspection technology enhances defect analysis and data accuracy. Establishing programs to use available data effectively and initiate immediate corrective feedback are important to process improvement and defect containment. The benefits of such programs are realized quickly by minimizing the response time and costs. AOI and X-ray inspection systems address multiple tasks in various locations of the manufacturing process and have therefore become leading technologies in the quest for identifying defects and improving process yields.
YXLON International Inc.
Jay Burdette, director of sales and marketingThe tendency is to buy the least expensive solution, or not to buy at all. It is better to invest wisely than to be ill-equipped for economic recovery. In these times, a product that is modular and evolves with future needs is more valuable than the least expensive.
Almost every electronics sector will benefit from 3D packaging and assembly. System designers achieve PCB real-estate savings, faster I/O communication, and overall lower cost, but these complex assemblies require virtual cross-sectioning for inspection. Therefore, micro-computed tomography will be preferred in 2009.
ZESTRON America
Harald Wack, Ph.D., executive VPCompanies must conduct extensive on-site analysis to assess the actual cost of cleaning. Extended bath life, reduced waste generation, and minimized associated maintenance with the cleaning process are needed. The latter is of great financial interest as overhead represents a large portion of the PCB assemblers’ overall cost. If maintenance costs can be reduced due to the physical product characteristics, operators can reallocate time and create additional value. Assemblers should spend more time on qualification steps for all cleaning processes to fully leverage hidden cost.
Recent advances in nanotechnology demonstrate great promise, but it will take more than one year to fully understand the potential for electronic assemblies. We will be introducing significant new advances in cleaning technologies in 2009.