1. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs NIC Components Corp. WEEE – RoHS Impact on Passive Components

2. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs WEEE - Waste Electrical and Electronic Equipment RoHS - Restriction on Hazardous Substances Environmental legislation impacting the electronics industry

3. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs WEEE - Waste Electrical and Electronic Equipment The WEEE Directive is primarily tasked with reducing the amount of electrical and electronic equipment (often expressed as EEE) from entering landfill at the end of its useful life by encouraging reuse, recycling and separate collection. It is apparent from this statement that the WEEE directive will not eradicate all EEE from landfill. The role of RoHS is to reduce harmful substances [materials] at source, ensuring that these hazardous substances are not leached into the environment by equipment which inevitably fails to be recycled. The WEEE Directive is a separate piece of environmental legislation, though it is directly linked to RoHS. RoHS & WEEE directives were instituted by the European Union in 1992 The EU consists of Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom. The directive extends to the European Economic Area (EEA) which also includes Iceland, Liechtenstein and Norway. Similar Legislation: ◊ Japan - Consumer Appliance Law ◊ China's Regulation for Pollution Control of Electronics Products (RPCEP) ◊ USA – State of California

4. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Awareness of WEEE – RoHS legislation, and requirements, has increased over past six months at companies of all sizes.

5. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances Who is impacted? Ultimately, anyone who builds, markets or imports electrical or electronic equipment (or components) into the European Union must ensure that the product complies with the RoHS directive, regardless of where it was originally produced. Who is exempt from RoHS? Military, Aerospace and network infrastructure equipment for switching, signaling, transmission as well as network management for telecommunication; Pb (lead) used in Servers, Storage and Storage array systems [exemption granted until 2010].... It should be recognized that existing exemptions may be short lived, and should not be relied upon as part of your overall conversion strategy Influencers to reconsider taking exemption: ◊ Reduction in available markets ◊ Competitive position ◊ Legacy (Sn-Pb) component availability & potential unit price premium

6. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances When does WEEE and RoHS take effect? WEEE = August 13, 2005 RoHS = 1 July 2006 What is it’s impact on companies designing and building electronic PCB assemblies?... ◊ [Materials] − Assurance of RoHS compliance − Material identification and control − Supplier confirmation of RoHS compliance

7. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Confidence in meeting RoHS compliance by the July 1, 2006 deadline has slipped,...with 55% ~ 73% of companies expecting to be fully compliant by July 1, 2006

8. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS challenge at many companies is engineering resources

9. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances RoHS: EU Member States shall ensure that, from 1 July 2006, new electrical and electronic equipment put on the market meets the maximum concentration values on the below six materials: 1. Lead (Pb) 2. Mercury (Hg) 3. Cadmium (Cd) 4. Hexavalent Chromium (CrVl) 5. Polybrominated biphenyls (PBB) [Flame retardant used in plastics] 6. Polybrominated diphenyl ethers (PBDE) [Flame retardant used in plastics] Will Additional Substances be added to RoHS? … when additional scientific evidence is presented, the ‘banned’ substances may increase to encompass other hazardous materials…

10. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs What is the difference between lead-free and RoHS compliant? While lead (Pb) is the most widely used RoHS specific hazardous substance in electrical and electronic equipment (EEE), the term "lead-free" is often wrongly adopted to refer to all of the substances specified in the Restriction of Hazardous Substances (RoHS) Directive. However, RoHS restricts a total of six substances - lead, mercury, cadmium, hexavalent chromium, PBB and PBDE. To be truly “RoHS compliant” with the WEEE – RoHS legislation, the presence of each of these substances must be reduced below their proposed maximum concentration values (MCV)..

11. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances RoHS: EU Member States shall ensure that, from 1 July 2006, new electrical and electronic equipment put on the market meets the below MCVs of the six restricted substances listed below: Maximum concentration values (MCV) define the maximum amount of an individual restricted substance (per the EU RoHS directive) within each homogeneous material* that compose the component. RoHS RESTRICTED SUBSTANCES SubstanceRoHS LIMIT: MCV - Maximum concentration values 1. Lead (Pb) < 0.10% = < 1000 PPM Exception: Allowable Lead (Pb) within glass of electronic components (i.e. glass coat or frit) 2. Mercury (Hg)< 0.10% = < 1,000 PPM 3. Hexavalent Chromium (Cr VI)< 0.10% = < 1,000 PPM 4. Cadmium (Cd)< 0.01% = < 100 PPM 5. & 6. (PBB and PBDE) Poly-brominated flame retardants < 0.10% = < 1,000 PPM * - Homogeneous materials are defined as materials that cannot be mechanically disjointed into different materials and are “of uniform composition throughout”. Types include: plastics, ceramics, glass, metals, alloys, paper, resins, and coatings. HOMOGENEOUS MATERIALSUBSTANCE NAMECHEMICAL SYMBOL SubstrateAluminum oxideAl2O3 Termination - ConductorSilverAg Nickel PlatingNickelNi Tin PlatingTinSn

12. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs What Methods Are Commonly Utilized To Assuring Supplier Compliance?  Surveys - Questionnaires Surveys - Questionnaires  Supplier Documentation Supplier Documentation  RoHS Compliance Statements RoHS Compliance Statements  Material Declaration Statements (MDS) Material Declaration Statements (MDS)  Green Statements Green Statements  “ICP” Inductively Coupled Plasma Testing [typically performed by third party test lab, to demonstrate specific component family meets RoHS material limits] “ICP” Inductively Coupled Plasma Testing [typically performed by third party test lab, to demonstrate specific component family meets RoHS material limits]

13. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances RoHS is very explicit about which substances should be restricted and the precise levels that may be tolerated. Some exceptions are allowed… Appendix Exception #5. Lead in glass of cathode ray tubes, electronic components and fluorescent tubes. For clarity, this exemption applies to lead in the glass parts of cathode ray tubes, lead in the glass parts of electronic components and lead in the glass parts of fluorescent tubes. Electronic components in the context of this exemption could also include glass parts when they are part of an electronic component or electrical and electronic equipment. Example: Trace levels of Pb found in Glass Overcoats, Glass Frit, Inks, etc.

14. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances How are RoHS compliant electronic components ordered? - is there a standard code used to differentiate them from traditional lead (Pb) containing devices? Unfortunately, there is NO component identification standard. Some manufacturers have generated new ordering codes to designate RoHS compliant product, others employ temporary designators to be utilized during FAB transition, while several IC manufacturers have openly stated there will be no planned component ordering modifications. National Electronic Distributors Association (NEDA) and National Electronics Manufacturing Initiative’s (NEMI) recommend new part numbers be implemented for RoHS compliant components, to enable control throughout the supply chain and provide clear identification of RoHS compliant material.

15. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances Part Number Change to allow easy identification of RoHS compliant versions is the widely preferred designation

16. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances SUBJECT: Component Part Number Change NIC PRODUCT SERIES: All NIC Product Series Notice of standard - default part number change from Legacy (non-RoHS) to RoHS compliant part number. PART NUMBERS EFFECTED: All NIC products REASON FOR CHANGE: To provide clear - easy to follow - system for identification of RoHS (Pb-Free) compliant versions of NIC products. Also to comply with industry recommendations for new unique part numbers for RoHS (Pb-Free) compliant products [Ref: NEDA & JEDEC guidelines] Examples: Legacy Part NumberRoHS Compliant Part Number NACxxxxxxxxxxTRNACxxxxxxxxxxTRF NMCxxxxxxxxxxxxTRPNMCxxxxxxxxxxxxTRPF NMC0603NPO101J25TRPNMC0603NPO101J25TRPF NRSA101M16V6.3X11NRSA101M16V6.3X11F NRC06F1001TRNRC06F1001TRF

17. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances Reel – Carton – Bag Packaging Identification In addition to unique RoHS part numbers, all RoHS compliant material will have a packaging identification of RoHS compliance or Pb-Free. Possible Packaging Identification Symbols: JEDEC

18. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances RoHS compliance impacts all components suppliers that provide Tin-Lead (Sn-Pb) finish components. Most component suppliers will need to transition away from Tin- Lead (Sn-Pb) finish components to Lead–Free (Pb-free) alternate. Component Terminal Transition 95% Tin (Sn) / 5% Lead (Pb) 100% Tin (Sn) - or – Tin (Sn) / Bismuth (Bi) - or – 96% Sn / 3% Ag / 1% Cu – or – 99% Sn / 1% Cu – or - 100% Gold (Au)

19. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS - Restriction on Hazardous Substances What is it’s impact on companies designing and building electronic PCB assemblies?... ◊ [Materials] − Assurance of RoHS compliance − Material identification and control − Supplier confirmation of RoHS compliance ◊ [Process] − Development of Pb-Free solder processes − Reflow soldering process − Flow-wave soldering process − Rework

20. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Soldering Process Changes as Result of RoHS: Historically Tin-Lead (Sn-Pb) soldering has been the most widely used soldering process globally. Reflow and Wave-Flow soldering processes using Sn-Pb soldering material are very mature, well understood and virtually trouble-free. Legacy passive components have properties (materials and thermal characteristics) compatible with Sn-Pb soldering. PCB WAVE Reflow Flow - Wave Component Terminals: 100% Tin (Sn) -or – 95% Tin (Sn) / 5% Lead (Pb) Solder: 63% Tin (Sn) / 37% Lead (Pb) [“Sn63”] Soldering heat PCB Component Terminals: 95% Tin / 5% Lead (Pb) Bottom Top Legacy Sn-Pb Soldering Process

21. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Soldering Process Changes as Result of RoHS: Legacy Tin-Lead (Sn-Pb) soldering:  Widely based upon “Sn63” solder alloy  Liquidus temperature of +183°C  Reflow soldering with component exposure peaks from +210°C ~ +230°C Pb – Free Soldering:  Many Pb-Free solder alloys are available [LINK]  “SAC” (Sn-Ag-Cu) Tin –Silver - Copper Solder Alloy  Liquidus temperature of +217°C … 30°C higher than Sn63  Reflow soldering with component exposure peaks at +240°C ~ +260°C  Higher SMT Component Soldering Temperatures ◊ Effects on SMT Components ◊ Soldering Heat Resistance Test Data ◊ Multiple Reflow Exposures

22. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Soldering Process Changes as Result of RoHS: Pb – Free Soldering: SAC Sn63 Using “SAC” will result in 30°C higher reflow solder temperature

23. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Soldering Process Changes as Result of RoHS: Pb – Free Soldering: Are NIC passive components compatible with “SAC” soldering process? Most of the RoHS versions of NIC SMT passive components are compatible with the higher reflow – flow – rework soldering temperatures of “SAC” Pb-Free soldering No known issues: SMT Ceramic Chip Capacitors and arrays SMT Tantalum Electrolytic Capacitors SMT Power Inductors SMT Chip Inductors and Ferrite chip beads SMT Chip Resistors (Thick Film and Thin Film) and Arrays (Thick Film) Leaded Components Possible thermal exposure issues: SMT V-Chip Aluminum Electrolytic Capacitors [liquid electrolyte] SMT Film Chip Capacitors [polymer dielectric]

24. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Soldering Process Changes as Result of RoHS: Pb – Free Soldering: Can Liquid Electrolyte Aluminum Electrolytic Capacitors withstand “SAC” soldering process? While Japan manufacturer’s of V-Chip E-Caps have indicated “No”, outside testing has suggested part are robust enough to withstand +260°C. NIC Tools: Web based guide White Paper Support Personnel  Live Help  E-mail  Tel

25. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Soldering Process Changes as Result of RoHS: Pb – Free Soldering Heat Effects on SMT V-Chip Aluminum Electrolytic Capacitors … by CALCE / DFR Solutions PAPER TO BE PRESENTED – PUBLISHED: + IPC/JEDEC Conference - San Jose California, USA April 17-19 + CARTS Europe in October 2005 + Oct 2005 of Passive Components Mag Key Findings: Case distortion during Pb-free reflow Capacitors with extended temperature or extended lifetime capacitors in general were more resistant to case distortion during Pb-free reflow. Long-term reliability Exposure to a range of Pb-free reflow conditions and the occurrence of case deformation seemed to have minimal influence of the reliability of the V-chip capacitors.

26. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Soldering Process Changes as Result of RoHS: Potential issues of Pb-Free process: The common defects associated with lead-free include: ◊ Off-pad solder balling & mid-chip solder balling ◊ Tombstoning & bridging (shorts) on fine-pitch QFP leads ◊ Open joints, non-wetting, de-wetting, cold solder joints, voids and excessive dullness or surface cracks. When soldered, Pb-Free (SAC) alloys will wet the metallization at substantially reduced rates when compared to 63/37. Solderability is impacted by the speed of wetting and the degree of spread. Pure tin finishes are the most suitable to solder with SAC alloys. [Source: SMT Magazine: Pb-Free Soldering Guide] Typical dull appearance of Pb-Free solders … Some improvement (Right Image) with nitrogen added to reflow environment

27. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs Tin Whiskers Issue on Pure Tin Finishes The occurrence of microscopic (micron length) extrusions - growths of pure tin (100% Sn) (also known as “whiskers”) from the terminal finishes (which could potential cause short-circuiting). National Electronics Manufacturing Initiative’s (NEMI) Tin Whisker Acceptance Test Requirements 2.6 (7/28/2004): Exceptions: discrete capacitor and resistor devices Matte Sn at least 2um (80 micro-inches) Nickel barrier at least 2um (80 micro-inches) Plating process parameters & controls plating bath parameters: current density, voltage, acidity, plating bath chemistry and material contamination, plating thickness, plating stress, plating grain size, plating crystallographic texture, plating carbon content below 0.05% and copper content below 0.5%

28. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs RoHS Support Documentation ◊ Unique “F” part number suffix for RoHS [Pb-Free] compliant devices ◊ Packaging (Bag, Reel, Carton) Identification ◊ MDS Documentation (spreadsheets) Component breakdown by materials (mg & %) ◊ Green Statements Identifying compliance to RoHS requirements ◊ Tin Whisker Test Reports ◊ ICP Tests Dedicated RoHS Support: Tech support rohs@niccomp.comrohs@niccomp.com Website documentation www.niccomp.com/rohswww.niccomp.com/rohs Live-Help: USA / Europe / SE AsiaLive-Help

29. www.niccomp.comwww.niccomp.com | www.LowESR.com | www.SMTmagnetics.com | www.RFPassives.comwww.LowESR.comwww.SMTmagnetics.comwww.RFPassives.com NIC Global: The Americas | Europe | AsiaGlobal Passive Component Market – Technology Update www.niccomp.com/rohs END NIC Components Corp. Dedicated RoHS Support: Tech support rohs@niccomp.comrohs@niccomp.com Website documentation www.niccomp.com/rohswww.niccomp.com/rohs Live-Help: USA / Europe / SE AsiaLive-Help