STMicroelectronics Lead – Free Program  Overall perspective Presented by : Ph. Levavasseur, Corp. Env Sup. Group (CESG) Prepared by : Ph Levavasseur CESG Fabio Borri : CESG Director Luc Petit : Corp R&D Packaging Developments Enrico Galbiati : CESG

Summary 1. Legislation / Regulation Context  Europe  USA  Japan 2. Examples of customers requests 3. Examples of Associations position 4. Examples of Semiconductor Manufacturers Position 5. Overview of ST Activities : « Ecopack » Lead free program PL CESG

1 – Legislation / Regulation Context : EU Proposal from EC of for a directive of the European Parliament and the Council on the Restriction of the use of certain Hazardous Substances in Electrical & Electronic Equipment (ROHS )  To approximate the laws of the member states on the restriction of the use of hazardous substances in electrical and electronic equipment  « Electrical & Electronic Equipment » means equipment designed for use not exceeding 1000 volt for alternating current an volt for direct current  Use of Lead, Mercury, Cadnium, hexavalent Chromium, PBB and PBDE is substituted on Jan 1,  Applications of the a.m substances listed in the annex of the directive are exempted from this provision  By Dec 2003 EC shall review the measures provided by the directive to take into account, as necessary, new scientific evidence Exemption for Lead in Electronic ceramic parts PL CESG

1- Legislation – Regulation context : EU EEE Directive Draft (Environmental Impact of Electrical and Electronic Equipment)  IPP (Integrated Product Policy) is an established policy in the EU, aiming at imbedding Environmental requirements into other legislation – co- relate environment, economic and social factors  Initiated by DG Enterprise as a horizontal directive under the new approach principle, which means earlier and more extensive involvement of the concerned industries  Specifies provisions for the design of electrical and electronic equipment in order to secure a high level of environmental protection in balance with Product Performance and economic requirements  Also applies to components in so far as much components are subject to the particular provisions of the EEE Directive  Components are defined as any industrially manufactured product, including subassemblies, intented for incorporation into electrical and electronic equipment PL CESG

1- Legislation / Regulation context : US Lead in US – Jan 8, 2001 Toxic Release Inventory (TRI) threshold for Lead reduced from 25,000 pounds to 100 pounds (Reduction factor 250) First reports at the lower threshold will be due in July 2002 covering 2001 calendar year In Jan 8 statement, EPA said : « lead exposure can lead to damage to the brain and central nervous system and cause slowed growth, hyperactivity, and learning problems. Once in the body, lead is distributed to the blood, Soft tissue, and bone. Young Children and developing fetuses are known to absorb lead more readily than adults » PL CESG

1- Legislation / regulation context : US Lead in US (Con’td)  Lead should be classified as a persistent, bioaccumulative, toxic, which was EPA’s justification for lowering the reporting threshold  EPA has forwarded to the EPA Science Adsisory Board the PBT question for further studies.  This rule does not mean Lead is banned in US. It seems that in US also, a new focus is put now on lead an on its health effect Full 100+ page regulation can be found at : http : // PL CESG

1- Regulation / Legislation context : Japan JAPAN Pb free Legislations / Recommendations (from  Not found any specificlaw in Japan calling for the direct reduction or elimination of Lead in electronics  Home electronics recycling law. Revision done in It calls to be prepared to collect and recycle major home products by April 1, Although this law does not mention the use of leaded products, there is another law forbidding companies putting any waste leaching toxic elements into the environment or landfills  MITI proposed in May 1998 take back (recycling) legislation. Japanese EPA and Government « suggest » reduced use of lead to decrease the Recycling need. MITI calls to reduce the use of Lead of Half by 2000 and 2/3 by 2005 PL CESG

2- Examples of customers requests Market situation  Strong pressure from Japanese customers for lead – free packages in  Some Key consumer Customers in Europe are following the same approach, with about 6-12 months delay  Interest from key automotive customers in view of higher operating temperature PL CESG

2- Examples of Customers requests Customers’ requirements as seen by ST – Guarantee Reflow Soldering Temperature for Lead-free Solder Use Solder for PWBPeak Solder Temperature Request Pb Free Various Sn Ag Cu Sn Ag Bi Cu Sn Zn Bi Etc… 245 ~ 260 °c 7 major Companies Melting point 183° ° Pb Sn solder Pb-free Solder PL CESG

2- Examples of Customers Requests Customers’ Pb-free Product Production Schedule Customer AOct 98 Aug 00 March 01 March 03 Started Complete MD Player Headphone Stereo, VCR All Products Customer BMarch 00 March 02 Started Complete VCR, Camcorder All Products Customer CJune 00 July 03 Started Complete Home Audio Customer DDec 98 Oct 99 Dec 02 Started Complete Pager PC 1st step : a lot of customers start from 2001 for Use of Pb-free Solder on PWB assembly 2 nd Step : Use of Pb-free Lead Finish Device PL CESG

2- Examples of Customers Requests Near Future : Realize Pb – free Lead Finish Device CompaniesLead Finish TechnologyPresent Status ASnBi / Pd platingProd. Started for all device type BSn Bi or SnCu PlatingProduction started Starting CSnAg or SnBi PlatingProduction started Starting DSnBi / SnCu PlatingProduction started Starting ESnCu PlatingProduction started Starting FSnBi PlatingProduction started Starting PL CESG

3- Examples of Associations Position Electronic Industries Alliance (EIA)  The Electronic Industries Alliances, which represents more than 2,100 members of the electronic and high tech industries, recently developed a « material Declaration Template » which its members plan to use as an industry- wide model for supply chain material declarations.  « Section C : Reportable materials. EIA members have agreed to collect information on whether the following chemical substances are contained in electronic products. For lead : Lead and its compounds Electrical interconnect (surface finish, solder, leads) Leaded glass (CRTs, Lenses) Plastic Stabilizer Molding agent in plastic manufacture Counterweights Machined metal parts Toxic Chemical Heavy metal Neurotoxin PL CESG

3- Examples of Electronic associations positions JEIDA (Japanese Electronic Industry Development Association) «The JEIDA Lead- free Soldering Research and Development Project Committee in February released its report « Challenges an Efforts Toward Commercialisation of Lead-free Solder – Road-map 2000 for Commercialization of Lead free Solder » The report includes a survey of 132 companies, offers a revealing look at the Japanese perspective on lead-free electronics In this report, JEIDA proposes the following Road-map for lead elimination : First adoption of lead free solders in mass-produced goods : 1999 Adoption of lead-free components : 2000 Adoption of lead-free solders in wave soldering : 2000 Expansion of use of lead-free components : 2001 Expansion of use of Lead –free solders in new products : 2001 General use of lead free solders in new products : 2002 Full use of lead-free solders in all new products : 2003 Lead containing solders used only exceptionally : 2005 See : PL CESG

3- Example of Electronic Associations Position ESIA (European S/C Industry Association )  General :  In favour of Voluntary Agreements more than banning  In favour of Voluntary Agreements (or restrictions) of substances only when there is scientific risk assessment  Action :  Work on exemptions for products that, for documented technical reasons, cannot be manufatured without Lead  Report to EC – before Dec 2003 – any new scientific evidence, also performed outside Europe  Close Cooperation among ESIA members - Creation of a dedicated « Lead–free » working group PL CESG

3- Example of Electronic Associations Position TSIA (Taïwan) – No specific legislation – Advanced Packaging Technology (APC) Consortium  Sponsored by APC center. 30 companies involved  Research in industrial Technology & Research Institute (ITRI). Lots of subjects are researching such as :  Lead free solder bumping in packaging  New under bump metallization for lead free solder bump  Lead-free solder used in Wafer-level Chip scale packaging  Research in Industry  Material manufacturers : new lead free solder balls and pastes PL CESG

4- Examples of Semiconductor Manufacturers Position Company statements - NEC Corporate Environmental Report « Since 1998, NEC has been working to reduce the amount of Lead in its solder. Meanwhile, NEC brought out the world’s first PC with no lead solder on its motherboard » - Hundai Electronics, Statement Jan 05,2001 « Hyundai Electronics Industries annouced yesterday that it had developed the first Plumbum (Pb) free semiconductor package and memory module in Korea » - STMicroelectronics « STMicroelectronics has announced the successful development of lead-free BGA (Ball Grid Packages). The new packages, in which the conventional SnPb (tin, lead) solder balls are replaced by an SnAgCu (Tin, Silver, Copper) alloy, were developed within « ECOPACK » program that ST has been pursuing as part of its commitment to achieve total environmental neutrality » ST inaugurated its « Ecopack » program in Philips Semiconductor, « Philips Semiconductor approaches the subject in two distinct phases: 1- investigate what measures need to be taken to ensure that our current product range will be fully backward compatible. 2- Develop Pb – free plating of connection terminals for all products. It is expected that the progress in time of these actions will differ from one package familiy to an another. Currently we are cooperating in the research for lead-free soldering internally… » PL CESG

4- Examples of Semiconductor Manufacturers Position Company statements - Intel, Corporate Environmental, Health and Safety Performance report printed April 2000 « Recent attention has been given to the potential impacts of lead and halogenated compounds; Intel professionals have joined several industry groups to evaluate alternatives to these materials » - Texas Instruments, ESH annual report « The electronics industry has used lead in electrical components, printed circuits boards and packaging systems for more than 50 years-amounting to less than 1% of the world’s total consumption. Even through the amount of lead used by the industry is very small, TI still stives to reduce and eliminate lead from its products. Today 98% of our standard Linear and Logic products are lead free… » PL CESG

5- Lead-free Activities in ST ECO PACK R IS A REGISTERED TRADE MARK BY STMicroelectronics IT WAS DEVELOPED FOR IDENTIFICATION OF PROGRAMS AND SOLUTIONS LEADING TO ENVIRONMENT FRIENDLY PACKAGING AND PACKING MATERIALS PL CESG

 TO DEVELOP & ASSESS TECHNOLOGIES FOR Pb FREE ELECTRONIC PACKAGING  TO PROVIDE RELIABLE Pb-FREE COMPONENTS WHEN TECHNOLOGY IS AVAILABLE  TO BE READY TO PRODUCE LEAD-FREE COMPONENTS FOR CUSTOMERS STARTING 2001 IN ALL APPLICABLE LINES ECO PACK R PL CESG

LEAD FREE ELECTRONICS MEANS :  Pb FREE SOLDER PASTE in board mounting (i.e. the soldering process of the component onto the board, with higher soldering t°)  Pb FREE SEMICONDUCTOR PACKAGING (i.e coating of package leads, balls of BGA, Bumps of Flip Chip, alloy for sft die attach etc…) inside : soft solder outside : connections coating and materials ALL PROCESSES AND MATERIALS MUST BE COMPATIBLE TOGETHER BUT STANDARDIZATION IS NOT YET ACHIEVED PL CESG ECO PACK R

Key issues Lead Free Board Assembly : END USERS ORIENTED TO SUBSTITUTE PRESENT SnPb (60:40) - MELTING AT 183 C WITH SOLDER PASTES MELTING IN THE RANGE : 210 TO 230 °C Sn Cu : melting at 227°C Sn Ag : melting at 221°C Sn Ag Cu : melting at 217°C other alloys with small addition of Bi or Zn to reduce melting point to 210°C Impact on Reliability HIGHER MELTING POINT OF SOLDER PASTE MEANS DIFFERENT SOLDERING PROFILE WITH HIGHER PEAK TEMPERATURE ( C INSTEAD OF C ) THERMOMECHANICAL SHOCK DURING SMT SOLDERING IS HIGHER. SENSITIVENESS TO ABSORBED MOISTURE IS HIGHER. DEVICE RELIABILITY MUST BE RE-ASSESSED USING NEW SOLDERING PROFILES PL CESG

5- Lead-free activities in ST Lead in ST components Soft Solder Die Attach (95%Pb – Ag-Sn) Slug / Frame Soldering (90% Pb – Ag-Sn) Connections Dipping (40% Pb – 60%Sn) Connections Electro-Plating (10 to 20% Pb-Sn) BGA Balls (37% Pb – 63%Sn) Bumped Dies (37% - Pb-Sn) Lead content in Electronic components roughly varied from 0.07 % to, 0.5% of Surface Mount Devices (SMD) Packages and from 3.5 to 8 % in Ball Grid Away (BGA) Packages. BGA are the lead richest packages ST as number 7 S/C manufacturer World wide is using less than 50 tons of Lead. PL CESG ECO PACK R

5- Lead-free activities in ST Lead Free Electronics Requirements – We got inquiries from most of our customers To know if we have solutions ready To ask Lead free Packages – Main Requirements are the use of special Solder pastes : In Japan : : Sn-Ag-Cu-Bi : Melting around 212° In Europe : Sn-Ag-Cu : Melting around 220° Note SnPb : melting around 183° For Japanese Customers : 2 Phases Phase 1 Components to be compatible with Lead - free Pastes Soldering Components certified reliable with higher soldering T° Phase 2 Lead Removal New Lead finishing PL CESG ECO PACK R

5- Lead-free activities in ST Phase 1 : RELIABLE PACKAGES WITH LEADFREE SOLDERING TEMPERATURES EVEN WITH Pb IN CONNECTIONS COATINGS PL CESG ECO PACK R EVALUATION OF EXISTING PACKAGES With 245°C / 255°C SOLDERING PACKAGES REDESIGN MATERIALS CHANGE FULL QUALIFICATION VALIDATION WITH FEW RELIABILITY TESTS WARRANTY CERTIFICATE

5- Lead-free activities in ST Phase 2 : massive introduction of Lead free devices LEAD-FREE DIPPING : Tin COATING LEAD-FREE PLATING : Tin, Tin-Silver, Nickel-palladium-Gold LEAD-FREE BGA BALLS : Tin-Silver-Copper Balls LEAD-FREE DIE BUMPING : Tin-Silver, Tin-Silver-Copper LEAD-FREE SOFT SOLDER : On going research Tin-Silver-Copper BALLS = SEEMS TO BECOME A STANDARD LEAD-FREE PLATING : NO STANDARD CHOICE YET ST CHOICE PL CESG

5- Lead-free activities in ST Lead free Status (Q1 2001) – ST has about 70 major packages families – Each family with several variations Discrete, Signal, Power, Insertion, Surface mounting – Considering all ST production we are working in 8 areas : Solder Connection Dipping Solder Connection Plating Soft Solder - Die attach for insertion Soft solder Die attach for Surface Balls for BGA Bumps for Flip Chip Special Discrete Frit Seal (Pb in glass seal) Presently exempted from ROSH Directive SolutionsQualificationUnder DevelopmentNo solution PL CESG

5- Lead-free activities in ST : Road-map : PROCESS EVALUATION 2000 : TECHNICAL SOLUTION READY FOR QUALIFICATION 2000 : ECOPACK COMPONENTS SPECIFICATION 2000 : STATUS ON RELIABILITY IMPACT 2001 : ECOPACK COMPONENTS QUALIFICATIONS 2001 : VALIDATION & INDUSTRIALISATION 2001 : FIRST PRODUCTIONS : CONTINUE PACKAGES CONVERSIONS PL CESG

ECOPACK COMPONENTS SPECIFICATION NO LEAD : except traces in materials (100ppm Max) SOLDERABLE : with both SnPb and Lead-free processes RELIABLE : at higher melting profile ( base on SnAgCu ) WELL IDENTIED : ECOPACK trade mark INTERNAL SPECIFICATION DEFINED FOR DEVELOPMENT IN FRONT OF LACK OF STANDARDS PL CESG

Conclusions The SC manufacturers are willing to contribute to Lead – free programs due to their strong ESH commitment (Most of SC plants are ISO certified or EMAS validated) Lead Removal from electronics components is a highly complicated issue Many process to be changed Some Technical solutions defined (BGA- Dipping) Few technical solutions to be designed and validated (Plating – Soft Solder) Many packages to be requalified No visible solutions for some packages families = need for Exemptions Changes will be, above all, driven by Competition and customers requests Lack of International standards is slowing the conversion; Strong financial impact : R&D cost + Manufacturing cost : Do we need to double our Production lines ???? PL CESG