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Electronics Production | April 20, 2007

Enics says “No Big Bang for RoHS in 2007"

Mr. Petri Helin, Vice President D/SCM at EMS Provider Enics, gave a market outlook from a RoHS perspective during a full day conference held in Vasteras, Sweden on Thursday.
Mr Helin said no major supply disruptions in Europe have been taking place since the directive came into force last July. So far there have only been issues with minor number of individual components.

Since July 2006 both RoHS and non-RoHS parts are widely available. This year extended lead-times have been caused by increased demand rather than RoHS according to Mr. Helin. A high number of non-RoHS components has became obsolete since July 2006, either through “end of life" and “last time buy", or simply by “Product Change Notice", PCN. There were close to 2 Million PCN's during 2006. Some distributors did also try to sign non-RoHS components as “Non Cancelled Non Returnable", NCNR, without success. There have been plenty of excess in general on global supply chain since July 2006, although there have been no major excesses of non-RoHS parts, Mr. Helin said.

Component pricing has been mainly unaffected with possible change lost in general market volatility. However, both RoHS and non-RoHS parts saw price erosion during 2007. For Printed Circuit Boards, some minor price changes have been seen. That has been mainly dependable on which material that has been chosen. According to Mr. Helin, old technologies have experienced price increases.

Mr. Helin expects non RoHS availability to worsen over time with steady decline rather than an abrupt stop. As volumes are moving to RoHS, old non-RoHS components are becoming obsolete. This will not always be an issue as most RoHS-compatible parts can be used in non-RoHS processes. The main message here was that staying out of the RoHS will cause availability issues over time.

Pricing for non-RoHS components is expected to go up when volumes are moving to RoHS, and usage of non-RoHS components declines. Also manufacturer's pricing strategies will kill the non-RoHS parts, Mr. Helin concluded.

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