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Department of Defense Briefing on Impacts of the EU REACH Legislation

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. Agenda. What are the impacts of REACH on DoD?

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Department of Defense Briefing on Impacts of the EU REACH Legislation

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  1. Department of Defense Briefing onImpacts 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. 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. 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. 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 IPC Market Research Study – July 10, 2008

  18. 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

  19. 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

  20. 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

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

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