Welcome & Overview

Dr. Nasser GrayeliChairman of the Board

January 16, 2008

Who Are We?Who Are We?• iNEMI Organization:

– Corporate membership– Not-for-profit, R&D consortium– Collaboration defined by organization by-laws, intellectual property

policy, and project agreements. • Member companies/Organizations:

– Leadership OEM, EMS, and Supplier companies– Government labs– Academic Institutions.

• Small staff provides services to facilitate collaboration: – Support to help organize & manage projects – Communication services for collaboration

• Newsletters• Web/ftp sites• Project meetings at appropriate industry venues• Project report publication.

– Relationships with other Organizations:• Roadmapping• Standards• Joint projects.

iNEMI MissioniNEMI Mission

Software Solutions

Marketing Design Manufacturing OrderFulfillment

Supply Chain ManagementInformation Technology

LogisticsCommunications

Business Practices

Build toOrder

Materials

Components

Customer

Equipment

MaterialsTransformation

Collaborative Design Lifecycle

SolutionsSoftware Solutions

Identify and close technology gaps, which includes the development and integration of the electronics industry supply infrastructure.

What do we do?What do we do?

• iNEMI coordinates industry wide responses to address Technology Gaps in the areas of member companies interest:– Common understanding and synchronized solutions to

technology gaps through the major manufacturing hubs– Integrated supply chain drives efficiency

• Time to Market• Cost• Reduced total investment

• iNEMI is a viable venue for working supply chain relationships and challenges.

• China has become a Major Electronics Manufacturing hub:– Today 21.9% of electronics assembly is in PRC– Projected to be 34% by 2020 (Prismark Partners)– Americas, Europe, Japan, & rest of Asia expected to shrink or

have small growth over same time period.

THE GLOBAL ELECTRONICS INDUSTRYKc107.239bes-global

1990 2000 2010 20201980

$247Bn

1982Computer

23%

Communications26%

Consumer15%

Military19%

Industrial/Medical

13%

Automotive4%

4.5

2.0

1.5

1.0

0.5

0

$Trn

$1,190Bn

2/3 of the industry isbased on networked

communications

China21.9%

Rest of Asia15.4%

US25.6%

Rest of Americas6.9%

Japan9.5%

Western Europe18.1%

Eastern Europe2.6%

2006 Production

$1,190Bn

Japan 6%

Asia 17%

China 34%

Europe 15%

Americas 28%

15.4%

32.5%

18.1%

21.9%

9.5%

4.0

3.5

3.0

2.5

Consumer11.4%

Industrial/Medical13.1%

Automotive6.3%

Military8.7%

Computer35.3%

Communications25.2%

P A R T N E R S L L CPRISMARK

How do we do?How do we do?

Leverage the combined Power of Member Companies and their Partners to Provide Industry Leadership

• iNEMI Roadmaps the Global Needs of the Electronics Industry– Evolution of existing technologies– Predictions on emerging/innovative technologies

• iNEMI Identifies Gaps (both business & technical) in the electronics Infrastructure

• iNEMI Stimulates R&D Projects to fill these Gaps• iNEMI Establishes Regional Implementation Projects to Eliminate

these Gaps• iNEMI Stimulates Global Standards to speed the Introduction of New

Technology & Business Practices• iNEMI mission is to work with other organizations to insure that

government policy recommendations and industry direction are aligned.

One ExampleOne Example

Global Environmental Regulatory Landscape: 2000Global Environmental Regulatory Landscape: 2000

Mercury Ban

Batteries

WEEE

RoHS

Batteries

Battery law

Global Environmental Regulatory Landscape: 2007Global Environmental Regulatory Landscape: 2007

Lead ban, e- waste, and packaging law

27 states draft e-waste bills

E-waste & packaging laws

E-waste

Battery law

E-waste , Dfe product &Packaging

E-waste

EuP

REACH

E-waste & Energy

E-waste

China RoHS

Energy law

Energy E-waste, RoHS

Packaging

21 Mercury bans

IPP25 EU States –

WEEE & RoHS

RoHS study

E-waste, RoHS

E-waste, RoHSDraft Dfe, Take-back,

Packaging

Draft RoHS, Battery

Other names and brands may be claimed as the property of others

Changing ExpectationsChanging Expectations

Consumers increasingly judge products and companies on their environmental performance

EcoEco--System Alignment is CriticalSystem Alignment is Critical

iNEMI works to align the supply chain and ensure smooth industry transitions

Raw Material Suppliers

ComponentSuppliers

ODMs

OEMsNon-Gov’tOrgs - Activism

Governments Legislation

Supply Chain

iNEMI & Other Industry Standards

OEM/EMS MembersOEM/EMS Members

Supplier MembersSupplier Members

Association/Consortium, Government, Association/Consortium, Government, Consultant & University MembersConsultant & University Members

OrganizationOrganization

TechnologyTechnologyRoadmappingRoadmapping

20 IndustryTWGs

ImplementationImplementation

7 iNEMITIGs

iNEMI Staff

Secretary to BoDCommunications

Membership DevelopmentTechnical Facilitation

iNEMI StaffiNEMI Staff

Secretary to BoDCommunications

Membership DevelopmentTechnical Facilitation

iNEMI Boardof Directors

Elected by iNEMI CouncilRepresentativesEMS DirectorsOEM Directors

Supplier DirectorsStrategic Objectives

Operational Responsibility

iNEMI BoardiNEMI Boardof Directorsof Directors

Elected by iNEMI CouncilRepresentativesEMS DirectorsOEM Directors

Supplier DirectorsStrategic Objectives

Operational Responsibility

SubstratesTIG

Medical Electronics

TIG

Environmentally Conscious Electronics

TIG

Board AssemblyTIG

TechnologyWorkingGroup

TechnologyWorkingGroup

TechnologyWorkingGroup

TechnologyWorkingGroup

Research Committee

EMS, OEM, Supplier & Academia/Government

Representatives

Research CommitteeResearch Committee

EMS, OEM, Supplier & Academia/Government

Representatives

Technical Committee

EMS, OEM, Supplier & Academia/Government

Representatives

Technical CommitteeTechnical Committee

EMS, OEM, Supplier & Academia/Government

Representatives

Product Emulator

Group

Product Emulator

Group

•••

Product NeedProduct NeedRoadmappingRoadmapping

5 IndustryPEGs

Board & System Mfg. Test

TIG

Thermal Mgmt.Technology

TIG

OptoelectronicsTIG

(Technology Integration Group)

Board of Directors Board of Directors

DirectorsDirectorsDr. Nasser Grayeli, VP of Technology & Mfg., Director Assembly and Test Technology Development Intel – Chairman Dr. Marc Benowitz, Director Reliability & Eng. Infrastructure, Alcatel-LucentMonroe Huang, Mgr. Mfg. Technology Dev. , Delphi Electronics & Safety B.J. Han, CTO, STATS/ChipPAC Dr. Sundar Kamath, CTO Assembly Technology, Sanmina-SCI Minoru Okamoto, VP CCC Electronics, Tyco Electronics Jeroen Schmits, President, Universal InstrumentsMichael Toben, Director Pkg. & Finishing Technology, Rohm & Haas

Ex officio MembersEx officio MembersDr. William Anderson, Director, EEE Laboratory, NISTFred Kuhlman, Co-Chair iNEMI Technical Committee, DelphiJim McElroy, CEO, iNEMIDr. Robert Pfahl, VP of Operations, iNEMI

How did we Get Here?How did we Get Here?

• Driven by iNEMI Board of Directors• Plan required strong member support at all critical

milestones• Key Milestones:

– Forum I in North America on Mfg. in China (November 2002)– Forum II in China to further develop objectives of iNEMI

efforts within China (October 2003)– First iNEMI International Roadmap in 2004– iNEMI China Collaboration established in 2005– Office established in 2007

• Hired manager• Created legal entity• Started first project in China

What we expect from this meeting?What we expect from this meeting?• To formally introduce iNEMI and invite China industry

members to join us to lead the industry alignment.• To encourage participation from leadership

companies, academia, and government organizations in order to:– Engage the best minds of all major manufacturing & technology

trusts– Develop solutions that will be globally supported and embraced– Avoid solutions that can fragment the global supply chain and

increase cost/complexity for industry.• Extend invitation to you to join iNEMI to drive an

industry wide responses for the common cause:– Become a member organization to support the common good– Participate in collaborative efforts to ensure success– Extract value for your respective company.

18

www.inemi.orgEmail contacts:

Jim McElroy jmcelroy@inemi.org

Bob Pfahlbob.pfahl@inemi.org

Haley FuHaley.fu@inemi.org