1. Department of Defense Briefing on Impacts of the EU REACH Legislation
July 16, 2008
Tony Hilvers, Vice President
Sahar Osman-Sypher, Project Manager
IPC The Association Connecting Electronics Industries

2. Agenda What are the impacts of REACH on DoD?
What is the electronics industry doing to address REACH?
What else needs to be done to protect DoD capabilities?

3. Based in Bannockburn, IL
About IPC
Based in Bannockburn, IL
with offices in
Washington, D.C.; Taos, NM; Irvine, CA.; Shanghai and Shenzhen, China and Stockholm, Sweden

4. About IPC
2,700 member companies –the entire electronic interconnection supply chain
PCB manufacturers and their suppliers
EMS Companies and their suppliers
Original Equipment Manufacturers
Government Agencies/Universities

5. About IPC ANSI standards setting organization
(Many military standards now converted to IPC standards)
Training, certification and professional development
Market research

6. If RoHS cost the industry
Estimated cost
If RoHS cost the industry
$1 dollar then…
Reach will
cost the industry $12

7. Reach Impact on DoD?

8. What are the impacts of REACH on DoD?
Impacts Difficult to Predict
Guidance still being written
Disagreement among member countries
Suppliers of substances and preparations are keeping their pre-registration/ registration strategies close to their chest

9. What are the impacts of REACH on DoD?
Impacts Difficult to Predict
- Lots of inquiries up and down the supply chain, but no real direction

10. What are the impacts of REACH on DoD?
Law of Unintended Consequences… (the story of RoHS and Lead Free)

11. No problem we’re exempt! Unfortunately, we all share the
RoHS:
No problem we’re exempt!
Unfortunately, we all share the
same supply chain.

12. Unintended Consequences
Technical issues
Are components lead free?
- Component markings
- Availability
- Use of alternative components (COTS)
Are PCBs lead free
Tin Whiskers

13. Unintended Consequences
Management/financial issues
Cost of tin lead solder
Cost of tin lead
components/availability
Tin lead PCBs
(Surface Finishes)
Materials management

14. What are the impacts of REACH on DoD?
Some substances will be withdrawn from the market
Regulation under REACH
Decision by the manufacturer to withdraw substances from the market

15. What are the impacts of REACH on DoD?
Information and warning time
may be limited
DoD will have to qualify substitutes

16. What is the electronics industry doing to address REACH?

17. 1 to 10 scale with 1 being the lowest
Total of 800 responses returned from all segments of membership but nearly 50% of the OEMs responded to the on-line questionnaire.
1 to 10 scale with 1 being the lowest
IPC Market Research Study – July 10, 2008

22. What is the electronics industry doing to address REACH?
The Electronics Industry Structure Presents Compliance Challenges
Large number of OEMS
(differs from Aerospace and Automotive)
Broad and deep supply chain
Significant shift to non-US production
Limited market power: not a major (driving) customer for many of the substance suppliers

23. What is the electronics industry doing to address REACH?
IPC Focusing on Education and Raising Awareness
Ongoing web-based compliance training
½ day workshops scheduled for fall
Developing compliance guide

24. What is the electronics industry doing to address REACH?
Standards-based activity for supply chain communication regarding chemical use
IPC 175x Supplier Declaration standards
Supply chain data exchange standards
XML based
IPC 1752 Addresses Substances in products
Will include SVHC substances because the presence of these substances in products requires notification
Committee currently reviewing inclusion of proposed Candidate List Substances
option under 1752
IPC 1757 being developed to address process chemicals

25. What else needs to be done to protect DoD capabilities?
No easy answers
Expect the unexpected
Continue participating
in industry standards
and other associations