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2006 Industry Vision Forecast
December 31, 1969 |Estimated reading time: 19 minutes
By Gail Flower
Overall, 2005 has been a profitable year for surface mount technology. Judging by the experts quoted in this forecast, continued and more robust growth is predicted for companies in 2006. No year is without problems and it seems those that weigh on the minds of the industry for 2006 include handling a dispersed, globally diverse operation; complying with the RoHS Directive; working with smaller and larger components; and the fear of a weaker dollar driving costs higher. However, it seems that most experts find this an exciting time of flourishing growth, expanding personnel, company expansion, creating new and strengthened partnerships and growing profits.
In this issue, we bring you industry responses to the question, “What’s Happening in Your Company in 2006?” In our February e-newsletter, the same experts will respond to the question, “What Challenges Do You Foresee for Your Company in 2006?”
Oscar K. Wack, Ph.D.
ZESTRON AmericaThe biggest change for ZESTRON in 2006 will be the completion of its new global headquarters (Manassas, VA), which will include an application technology center equipped with up to 35 inline, batch and stencil cleaning machines. It also will include a 3,000-square-foot analytical center. The company’s second largest investment will allow us to advance engineering and analytical services to customers.
Hamed El Abd
WKK Technology Ltd.We foresee continued growth in our industry and believe WKK will grow as well. Customers and their manufacturing processes are getting more demanding. A greater emphasis on quality and achieving high reliability are driving customers. We will continue to focus on offering products and processes that give clients improvements in reliability and cost efficiency.
Bill Carson
WeidmullerWeidmuller’s focus in 2006 is on customer demand for RoHS-compliant solutions and those that enable process optimization through SMT/thru-hole reflow technology. From board design to production, we are working to provide products that deliver increased functionality and reduced installation costs. This includes on-going development of products for automated pick-and-place operations to meet the needs of “lights-out” manufacturing.
Don Naugler
VJ Electronix Inc.Our focus in 2005 has been on lead-free. By the beginning of 2006, most required changes will be well underway. It is likely that 2006 will be a year of refinement and focusing on efficiencies. On the rework side, we will offer more powerful top heaters and options to boost the efficiency of our bottom heaters. We also will offer greater automation and report generation in manual X-ray systems.
Carsten Salewski
Viscom Inc.As a large-board assembly AOI company, Viscom’s strength is its technological innovation. For 2006, we are launching the Viscom S6056, which we expect will leapfrog the performance of conventional AOI systems. Its modular design makes it suitable for high-volume OEMs and high-mix EMS providers.
Jeroen Schmits
Universal Instruments Corp.A clear trend is the continued growth of consumer product manufacturing, coupled with further geographic migration to lower-cost regions. We are aligning our business to leverage these opportunities in terms of equipment sets and through localizing global resources. We also see a strengthening of electronics manufacturing in Europe and the U.S., most notably the medical and automotive sectors. Our application teams are witnessing growth in the system-in-package (SiP) market. This real-life convergence blurs boundaries between semiconductor and board assembly, and that plays directly into our focus.
George Szekely
Tyco Electronics Corp.We are early participants in the RFID in-lay assembly space with our patent-pending solutions, and are applying technologies such as pressfit and selective soldering to address lead-free requirements. Additional niche products, such as singulation techniques and mainstream SMT products round out our offerings.
Pierre de Villeméjane
Speedline Technologies Inc.We see another strong year for capital equipment in 2006. Speedline will focus on process leadership in its core technologies. In soldering equipment, we will help customers transition to lead-free and meet the WEEE and RoHS deadlines. In printing, we will expand the success of our Accela printer by adding more advanced functionality. We also will offer new printing applications in areas such as auer boat, b-stage, adhesive and wafer-level printing. Finally, we will concentrate efforts in high-growth dispensing markets.
Tony Gyemant
Specnor Tecnic Intl. Corp.Our development roadmap will continue to provide innovative lead-free solutions, particularly in wave soldering. We continue to see an increase in overall sales activity driven by a demand for our lead-free wave soldering machine and conversion kits. Our lead-free wave soldering retrofit kit continues to see a sales increase. We also will introduce a mid-range localized soldering system.
Kim Hyland
Solectron Corp.The RoHS Directive has impacted all functions. It is no longer an engineering development project, but one that affects design, operations, materials, IT and legal. In 2005, we deployed lead-free SMT and thru-hole processes at our sites. In 2006, our materials team will continue to work on procedures for procurement and warehousing to segregate and manage RoHS-compliant material within our factories.
Tilo Brandis
SiemensThe success of our business in recent years proves we are on the right track with our placement machines and solutions. Modularity and flexibility combined with speed and accuracy will continue to be the foundation. The SIPLACE platform with its framework, placement heads, vision systems and feeder modules, as well as software solutions, provides the basis to offer solutions for any technological trend.
Paul J. Plante
Reptron Electronics, Inc.Reptron Electronics will continue to focus on growing its business within the medical, industrial, instrumentation, telecommunications and semiconductor equipment markets. We operate with excess capacity at four manufacturing plants to accommodate growth and plan to have all facilities ISO-13485-certified and FDA-registered.
Gary Goldberg
PROMATION Inc.PROMATION participates in three segments: PCB handling, robotic soldering and complementary production solutions. Because PCB handling solutions are viewed as a commodity item, holding costs will be essential in 2006. The weaker dollar is driving costs higher, so focusing on improved manufacturing methods, working with suppliers and producing designs that are service-free is key. The used equipment market also has slowed new sales, but as these inventories dry up, we see additional opportunities. Applications for new handling systems will continue in 2006. Robotic soldering systems also are gaining popularity. We will continue developing products within this segment and intend to introduce new products in 2006.
Jim Williams, Ph.D.
Polyonics Inc.We will continue expansion into Eastern Europe and Brazil. Russia promises to expand as privatization continues. Growth in China and Southeast Asia is key to our growth in electronics. We also will focus on introducing colors for labels to assist in the transition to lead-free manufacturing as a means of identifying lead-free subassemblies and products.
Roger Gibbs
PDRPDR will bring new cost-conscious products to the market in 2006, offering greater automation and strengthening distributor partnerships. North American and European business has grown in 2005, and we plan to increase activities in India, Southeast Asia and Japan. We also plan to educate customers on lead-free and array-package rework. Manufacturers face technical challenges, and 2006 will be no different as the implications of lead-free manufacturing become apparent.
Bill Gleason
Para Tech Coating, Inc. (PTC)PTC provides Parylene vacuum-deposition services for protecting PWBs and other substrates. While this had been reserved for high-end military, aerospace and medical applications, we are seeing greater use in industrial and commercial PWBs, partially due to circuit miniaturization.
Mark Cowell
OK InternationalWe will continue our “products for the electronic workbench” mission under a single OK International brand. It is time to reposition our company as a supplier of mainstream production tools, not just niche technical products. Coinciding with the re-branding, we will launch a line of soldering, fume extraction and fluid-dispensing products. We will strengthen our manufacturing efficiency by consolidating North American operations in our southern California facility. We also have moved customer service to our supply-chain team.
David Wiens
The Integrated Systems Design Division of Mentor Graphics Corp.Due to the trend toward market globalization, our company and industry have evolved into enterprise environments, which typically operate multiple global sites to leverage localized products and resources. They closely guard IP and find ways to use it in multiple products. We have experienced the same challenge of operational efficiency: leveraging diverse, distributed resources and technologies to deliver products to market quicker and more cost-effectively.
Stephan H. Schmidt
LPKF Laser & Electronics North AmericaAt LPKF, we are working with customers in the SMT stencil industry to define goals and expectations of future stencil laser-cutting systems. We will continue to push the envelope of laser technology in terms of performance and reliability, reducing overall cost of ownership. Lasers are young tools, and we are investing in R&D to stay on top of this fast-changing technology.
Tom Forsythe
Kyzen Corp.At Kyzen, 2006 will be exciting and challenging. Six years of work on lead-free materials cleaning technology pays off, requiring staff additions throughout the organization. In 2006, we will celebrate the one-year anniversary of our Asian headquarters in Singapore, as well as our focused efforts to deliver our technology throughout the EU. Lead-free assembly means more cleaning demands. It will be a busy year.
Bjorn Dahle
KICWe believe 2006 will be interesting for KIC with continued growth in the thermal-process segment, and the implementation of lead-free regulations. The electronics manufacturing industry had perfected the manufacture of leaded products. Now manufacturers are scrambling to achieve required quality and productivity for lead-free manufacturing. The industry’s focus is shifting more toward thermal processes because of the effects that lead-free has on quality and productivity of reflow, wave solder, selective solder and other thermal processes. There also is a growing requirement for full thermal-process traceability and automation. We plan to hire additional personnel to offer manufacturers these tools and support.
Dave Torp
KesterKester will continue to innovate in 2006. We see continued growth in China with demand in other regions remaining flat to slightly positive. We will see the largest conversion to lead-free soldering materials. We anticipate the bulk of this will occur in Q’02. Our total sales in lead-free is expected to increase. We believe the consulting services offered through Kester University will be in demand in the next six months. We also have experienced demand for products used for additive circuit technology and thermal management materials.
Bob Black
Juki Automation Systems Inc.After growth in 2005, 2006 promises to be an exciting year. We introduced two selective soldering machines in 2005, and will add two more in 2006. In mid-year, we will introduce next-generation placement systems followed at year-end with a preview of a high-speed system. Our factory addition is complete, giving us the capacity to ship over 300 machines a month.
Mike Ray
Integrated Ideas & Technologies, Inc. (IIT)In working with lead-free paste, IIT has found that wetting characteristics of lead-free solders will require tighter tolerance stencils, increasing rework. To avoid higher costs, paste distribution is critical and will be less forgiving. Lead-to-pad compatibility and overall physical tolerances can mandate on-the-fly stencil changes. Because contract manufacturers (CMs) must increase speed and accuracy in their manufacturing process, they can justify the use of an in-house laser-cutting system. Using direct download and engineering skills provided by stencil manufacturers will enable CMs to have on-site fabrication without associated support equipment.
Ross Berntson
Indium Corp. of AmericaThe Indium Corporation is continuing a string of several years of strong growth. Our goal is to maintain this and introduce new products. Three areas are of note: lead-free conversion, SMT product-line expansion and the China market. Supporting the conversion to lead-free assembly remains a goal. Our technical team will continue to introduce lead-free assembly products and services. Product-line-expansion efforts will be bolstered by new materials, including lead-free solder pastes, no-flow underfills and materials for micro-array-package assembly and pin-in-paste with solder preform applications. We will continue to expand manufacturing, sales and technical support in China. We also will dedicate resources to staff growth and education.
Jennie S. Hwang, Ph.D.
H-Technologies Group, Inc.In 2006, expanded silicon technology, 300-mm wafers, sub-65-nm circuitry and increased efficiency of interconnections in packaging and PCB levels will take center stage. Environmentally friendly manufacturing and end-use products also will be the focus. Producing more with less people at a lower cost is every operation’s goal, making productivity a relentless target. The ability to move scientific knowledge from the lab through manufacturing to the marketplace, coupled with practical know-how and entrepreneurial spirit, are the niche of the workforce. PCB materials possessing controlled CTE, moisture resistance and reduced impedance, as well as increased dimensional and thermal stability will be in demand. Assembly materials and processes that reduce heat exposure and eschew heat-related damages during manufacturing also are essential.
Roland Heitmann
Hover-Davis Inc.In 2006, we will break new ground on many fronts. We will continue to engage customers with feeder product lines. Through partnerships, we will expand our feeding products to include JEDEC tray feeding and intelligent feeding solutions. We also will increase the accessibility of core competencies, helping manufacturers improve performance and reduce time-to-market.
Marc Peo
Heller IndustriesWe will continue to expand in overseas markets. Decisions often are based on service. While this is important, providing quick responses in sales support, new product development and fast deliveries are as well. Having local factories in Korea, China, Canada and the U.S. allows us to provide local service and support. We will expand this global presence, continuing a program of new product development in reflow soldering technology. We will partner with large electronics manufacturers, and have technologies and some non-traditional approaches on the short-term roadmap.
Bill Kenyon
Global Centre ConsultingAs assembly process consultants, we are challenged by the influx of increased regulatory constraints on our client base. This means that we must become cognizant of the immediate effect of these regulations (lead-free processes). These processes have increased pressure on assemblers to incorporate the proper cleaning process in their lines to ensure maximum reliability, and are giving solder paste makers maximum latitude in paste formulation to minimize solder defects.
Scott Wischoffer
Fuji America Corp.Our line of placement equipment is modular, allowing us to reconfigure placement cells according to user requirements. The same system can be configured to run high-volume/low-mix or a low-volume/high-mix by changing out a placement head or adding a tray-feeding unit. This can change the system’s configuration with minimal user cost. We also will introduce a low-cost solution for the high-mix environment.
Dongkai Shangguan
FlextronicsWhile the industry continues to pursue miniaturization, time-to-market and cost-reduction initiatives, environmental compliance will be a predominant topic. This must be pursued holistically and comprehensively. As we bring more lead-free electronic products to market, lead-free solder interconnect reliability be important. Supply-chain readiness for RoHS also will have significant impact on the business landscape. Compliance-assurance management must be addressed effectively and efficiently. Design-for-the-environment capabilities and recycling for product end-of-life management also will be a key differentiator.
Chris Underhill
FinetechWith the advent of more-complex, higher-value modules and products, a new high-volume rework protocol is mandated. However, providing an automatic rework system is not enough. Rework must be integrated seamlessly into the manufacturer’s process. A major component of this will be the ability to interface directly with AOI systems, helping manufacturers streamline the rework process and making it easier for operators to handle higher volume.
Pat Flynn
Everett Charles Technologies (ECT)An important initiative throughout ECT in 2006 is continued development of global “turnkey” test solutions and support for a multi-national customer base. We have made investment in our facility and human infrastructure throughout Asia and Europe to position ourselves as a provider of electronics production test goods and services for a range of applications and after-sales support.
Peter Kim
Eunil H.A. Americas Inc.We will narrow our target market to the automotive industry for 2006 and increase our product line to supply the total solution to component manufacturers. To support this, we will establish another headquarters on the East Coast. We plan to increase the number of our sales representatives and distributors from the Midwestern U.S. to the East Coast. We also will increase customer-support capacities.
Martin Ziehbrunner
ESSEMTEC AGIn 2006, we are planning another growth year. The main area will be lead-free-capable equipment. Another push will come from users looking for higher flexibility because the average batch size will continue to go down in Europe and the U.S.
John Sammut
EPIC TechnologiesWe will continue our trend of greater than 20% year-to-year organic revenue growth. This is driven by new customers and the ramp-up of new programs at existing customer facilities. We also plan to add a facility in Eastern Europe. Finally, we are rationalizing our Asian supply base and focusing supplier development efforts in this region to create the same level of lean collaboration we engage in North American suppliers.
Leo Reynolds, P.E.
Electronic Systems, Inc.Electronic Systems has spent advanced technology efforts on guiding customers into RoHS compliance. We’ve attended seminars, trained associates, added equipment and developed verified processes. We now are producing lead-free products. We also have made some management changes. We expect to accelerate growth in 2006 with new and existing customers and achieve ISO-13485 status.
Richard Heimsch
DEK InternationalIt’s a non-stop race to stay ahead, and the speed at which change occurs increases daily. We feel 2006 will be no different. The war against commoditization is relentless and requires passionate, uninterrupted commitment to design and innovation. Our core product line-up will be retooled to address next-generation packaging, manufacturing traceability and cost of ownership. Our process focus will continue to offer customers a smooth transition to lead-free.
Fred Hume
Data I/O Corp.Programming is the critical process of getting IP into programmable silicon. Rapid IP-content growth drives memory density. SoC technology, incorporating multiple programmable devices in a single package, increases programming complexity. In this environment, adaptive programming solutions that provide flexible, multi-step programming are essential, whether performed in socket, after the device is placed on the PCB or both. The programming process must be wrapped in an information flow that closes the quality loop to provide confidence to supply-chain managers.
Paul Walter
Dage Precision Industries Inc.Dage has been working closely with test issues related to lead-free solders on our X-ray and bond tester lines. We also have seen a move of products toward smaller bumped-device structures. We are developing higher-resolution X-ray systems and higher-speed bond testers to address this. In 2006, we will work closely with customers on these challenges. As inspection challenges increase, we will invest a larger proportion in R&D. We also are reinforcing our Asian operations.
David Zerfoss
Cookson Electronics Assembly Materials GroupIn 2006, we will continue to expand resources in the Asia Pacific. We have established manufacturing facilities in North and South China, Hong Kong, South Korea, Taiwan, Japan, Singapore and India. We believe it is important to increase applications support and field service capabilities, particularly in China’s market. The addition of four regional tech-support personnel in 2006 will be accompanied by the commissioning of our applications support facility in Bangalore, India, which will house a fully operational SMT and mixed-technology wave soldering line, analytical equipment and technical staff.
Jon Dupree
COMET North AmericaAs part of the COMET family, FEINFOCUS is in a position to identify and respond to customer demands, particularly in the assembly market. We are working to develop a one-stop shop for X-ray inspection. We have expanded our service capability, installing test and repair centers in Stamford, Conn., and San Jose, Calif. We also are working to develop advanced X-ray inspection technology.
François Monette
Cogiscan Inc.In 2006, two factors will fuel interest in our products. First is the deadline for RoHS-compliance in Europe. Manufacturers must track, trace and control SnPb and lead-free materials, including moisture-sensitive devices (MSDs). This can be difficult using manual procedures. The second is the increasing number of partnerships we are making with equipment providers.
Michael Sivigny
CeTaQ AmericasCeTaQ Americas is experiencing increased activity surrounding independent-capability testing. By July 2006, we will provide accuracy solutions for companies feeling the pains of lead-free processing as printing and placement accuracy requirements grow. Our goal is to educate the industry on proper application of specification limits for machine and quality operations. The battleground ahead is putting the specmanship war between manufacturers on a level playing field.
Craig Muhlhauser
Celestica, Inc.In 2006, Celestica will continue our lean journey, applying lean principles outside our walls - working on initiatives that drive efficiencies throughout the supply chain. We also will ensure that our global solutions add value for customers. We’ll build on existing end-to-end services, tailoring them to address OEM challenges.
Bob Wettermann
BEST, Inc.We believe 2006 will be a challenging year for many EMS and OEM-build companies in the rework and repair of PCBs as they transition to lead-free soldering processes. There will be more opportunities for rework, such as reballing area-array devices that builders receive with the wrong alloy, delaminated circuit boards that cannot withstand higher lead-free processing temperatures or improperly wave-soldered thru-hole connections. These scenarios and others will present opportunities for companies that perform outsourced rework.
Craig Hunter
AVX Corp.The market presents technical challenges to component suppliers in terms of improved performance for specific devices. However, production demands also have increased as RoHS processes have been widely deployed. Because specific components cannot meet this specification or they have reliability issues, providing alternative technologies with improvements in reliability for manufacturing existing products or developing next-generation equipment is key. These will include termination technology, package materials and internal design constructions for components.
Markus Wilkens
ASYS Automation LLCASYS has developed from a conveyor company to a supplier for integrated solutions in five segments of the electronic industry. The product portfolio of board handling, marking systems, depaneling systems, screen printers and backend automation will allow us to grow in those segments. We will strengthen our support structure throughout the Americas and introduce new systems in the depaneling segment.
Alec Babiarz
AsymtekTwo key areas affect business in 2006 and will continue for a few years. Our core dispensing technologies have changed from needle dispensing to jet dispensing and non-contact applicators. A significant amount of our equipment business is being specified in one region of the world with production is occurring in another. This requires a global infrastructure.
Mike Konrad
Aqueous Technologies Corp.For us, 2005 began a new era that will continue into 2006. Lead-free became more prevalent in daily engineering conversations, causing engineers to reconsider several segments of the manufacturing process. Although no-clean technologies remain popular, lead-free manufacturing has precluded no-clean options. I expect the cleaning/defluxing industry will grow as defluxing returns to the mainstream. I also expect a continuance of our expansion into larger global distribution. China has been a driving force in the increase of our market share and expect to see an increase in other Asian markets and Eastern Europe.
Brian Czaplicki
Air-VacAir-Vac completed several product development programs in early 2005 with the objective of providing lead-free rework solutions. Business has increased in the last six months as a result of these efforts. We expect further increases in 2006 as lead-free compliance deadlines approach.
Jason Spera
Aegis Industrial Software Corp.Factories will adopt larger, more comprehensive information and process management systems. Regulatory requirements for traceability drove the trend toward comprehensive systems in 2005. These software solutions also deliver materials control and verification needed to succeed in the lead-free transition. Enterprise-level systems managing the scope of materials, product and process information have the peripheral benefit of being powerful analytical and quality tools.
Evelyn A. Baldwin
3M Electronics Markets Materials Division3M supplies products to many customers in the sub-segments of the global electronics industry. We’re focusing resources on these markets, and asking teams around the world to stay in a “global mindset.” We also continue to address the issue of cost for our customers. Because the industry remains focused on the next generation, we are investing in creating leading-edge technology. We will strive to mover faster without damaging our reputation.