Passive Component Update

1

• Passive Component Update
• Topics
• Market
• Technology
• Production
• Material Issues
• New Redesign Recommendations
• New Products

2
Sources Nippon Industries Company Ltd
(Japan) NIC Components Corp. (Taiwan) Paumanok
Publications, Inc Leading passive component
market analysts publishers of Passive
Component Industry Magazine Bi-monthly look at
the passive component market and technology
www.paumanokgroup.com/ Reed Electronics Research
www.rer.co.uk Electronic Buyer News (EBN)
www.ebnonline.com Electronic Component News (ECN)
www.ecnmag.com
3
Changing Technology Impact Passive Devices

• Technology Innovations
• Lower voltage of operation increased circuit
  current higher demands on voltage - power
  management circuitry tighter line (supply
  voltage) regulation (reduce ripple voltage)
  increased demand for low ESR capacitors
• Faster circuit speeds reduced response time for
  voltage - power management circuits increased
  demand on capacitor bank
• Higher frequency operation reduced trace
  distances better performing smaller devices
• All impact signal supply voltage integrity

4
Development of Passive Components
Passive component research development New
Improved Materials improve characteristics
reduce costs
Improved Processing Equipment expanded
available range increased production reduced
components sizes
5
Passive Component Usage by Market
6
Passive Components Markets

• Review
• 12 growth in 2002 Passive Component Market (
  value) as compared to 2001 level
• Price erosion is substantial
• Limited capacity expansion

CAPACITOR MARKET (2002) 615 Billion units
8.38 billion
7
MULTILAYER CERAMIC CHIP CAPACITORS Materials
Shift
Electrodes (PdAg or BME- Base Metal Nickel)
2002 Estimates 70 of global MLCC production is
BME Nickel Electrode Powder Shipments 1995 95
Tons 2000 645 Tons 2005(E) 1830 Tons
BME
Pd-Ag
8
MULTILAYER CERAMIC CHIP CAPACITORS Materials
Shift
Pd-Ag Price Per Troy Ounce (USD)
9
MULTILAYER CERAMIC CHIP CAPACITORS Developments

• Nickel electrodes Copper terminations
  reduced component costs
• Greater equipment (firing) costs
• Increased number of layers gt100 layers
• 1uF and above very low ESR sub 0.010ohm _at_
  100KHz)
• X7R (-55 125) X5R (-55 85) 15 Cap
  change
• Encroaching upon tantalum electrolytic range
• 100uF / 6.3VDC 1210 in X5R Y5V TCs
• Thinner (submicron) dielectric layers lower
  voltage ratings
• Voltage-coefficient effects
• Aging effects piezo-electric noise

10

MULTILAYER CERAMIC CHIP CAPACITORS
NMC Series MLCCs Ceramic Chip Capacitors
0201 size NPO (101) 100pF / 25VDC X7R (332)
3300pF/16VDC X5R (103) 0.01uF/10VDC New! X5R
(104) 0.1uF/4VDC  0402 size NPO (471)
470pF / 16VDC X7R (104) 0.10uF/10VDC New! X5R
(105) 1.0uF/10VDC Y5V (105) 1.0uF/6.3VDC
  0603 size NPO (182) 1800pF / 50VDC New!
X7R (105) 1.0uF/10VDC New! X5R (225)
2.2uF/6.3VDC Y5V (225) 2.2uF/10VDC
0805 size NPO (682) 6800pF /50VDC New! X7R
(475) 4.7uF/10VDC New! X5R (106)
10uF/6.3VDC Y5V (106) 10uF/10VDC      1206
size NPO (103) 0.01uF /50VDC New! X7R (106)
10uF/6.3VDC X5R (226) 22uF/10VDC  Y5V (226)
22uF/10VDC   1210 size NPO (103) 0.01uF /
50VDC X7R (106) 10uF/16VDC X5R (476)
47uF/6.3VDC  New! X5R (107) 100uF /
6.3VDC New! Y5V (107) 100uF / 6.3VDC
11
MULTILAYER CERAMIC CHIP CAPACITORS
MLCC Market Year 2000 was record year (30
growth to 5.6Billion source RER) for MLCC
industry with demand exceeding supply and prices
inching up. During year 2000 crunch many
producers added considerable production expansion
equipment. Supply should meet all demands through
year 2002 2003. Pricing has eroded due to
over-supply and reduced costs of raw materials
(BME vs. Pd-Ag).
MLCC expansion has been focused on BME (Base
Metal Electrode nickel) construction for X7R and
Y5V as opposed to Pd-Ag electrode construction.
NPO will remain Pd-Ag (although with reduced Pd
loading) and will likely transition to BME over
time.
12
MULTILAYER CERAMIC CHIP CAPACITORS
NIC Monthly Capacity by Case Size
13

MULTILAYER CERAMIC CHIP CAPACITORS

• NMC Series 0201 size MLCCs
• Ultra-Small Ceramic Chip Capacitors
• L x W x H 0.6 x 0.3 x 0.3mm
• NPO
• 10V / 16V / 25V / 50V
• 0.47 100pF
• P/N NMC0201NPOxxx
• X7R
• 16V / 25V / 50V
• 39pF 3300pF
• NMC0201X7Rxxx
• Applications
• Ultra-Small for Hand Held Embedded Device
• Precautions
• Solder Paste Placement Issues

• X5R Y5V
• 4 / 6.3 / 10V
• 1200pF 0.1uF
• NMC0201X5Rxxx

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MULTILAYER CERAMIC CHIP CAPACITORS

• NMC-L / NMC-M Series
• Low ESR / High Q
• NPO Ceramic Chip Capacitors
• 0402, 0603, 0805
• O.5 150pF
• Low ESR / High Q up to 2GHz
• Ultra-Stable High Frequency
• NPO Ceramic Chip Capacitors
• NIC, has added a new range of low ESR multilayer
  ceramic chip capacitors. Ideally suited to high
  speed, high frequency applications such as those
  found in Bluetooth and Wi-Fi (IEEE 802.11b)
  products. Manufactured using ultra stable, low
  loss NPO/COG dielectric, the devices are
  available with values ranging from 0.5pF to
  150pF. Both 50V dc and 100V dc rated parts are
  available. Supplied in tape and reel packaging,
  the NMC-L range is compatible with both re-flow
  and flow soldering processes.

15

MULTILAYER CERAMIC CHIP CAPACITORS
Recommendations

• Transition away from larger (gt0805) sizes
• Use 0603 and 0402 on new and redesigns as much
  as possible
• Smaller sizes have best availability and lowest
  costs going forward
• Be aware and plan for possible future PD
  issues with
• Larger (gt0805) sizes
• Higher voltage parts (gt100VDC)
• High capacitance (high Pd content) NPO

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SMT ALUMINUM ELECTROLYTIC CAPACITORS
Market - Technology SMT aluminum electrolytic
types have led (and will continue to lead) in
high demand. Useful as alternates to chip
tantalum in many applications, and at lower cost
has fueled growth acceptance industry wide. No
raw material production issues are expected to
impact this product type. Lower unit pricing
expected over time as non-Japanese manufactures
accelerate production.
Focus (chiefly solid electrolyte types) in
development of lower ESR Z types for lower
voltage higher current power management
applications. Introduction of larger case sizes
has allowed higher capacitance values and high
voltage rated versions, as replacement for leaded
snap-in types.
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SMT ALUMINUM ELECTROLYTIC CAPACITORS
NIC Monthly Capacity by Size
18
SMT Low ESR ELECTROLYTIC CAPACITOR COMPARISON
19
SMT Low ESR ELECTROLYTIC CAPACITOR COMPARISON
Many E-capacitor suppliers have developed low
ESR capacitors NIC offers the most options
design choices
20

SMT ALUMINUM ELECTROLYTIC CAPACITORS Recommendati
ons

• Use SMT aluminum electrolytic capacitors
• when low cost is needed (lowest cost per uF of
  SMT types)
• when high voltage (gt20VDC) rating (or no
  de-rating is possible) is required
• when gt470uF is required (values to 6800uF in
  SMT Alum V-Chip)
• where component must be tolerant of voltage
  current transients
• where component height can be tolerated
• when looking to replace leaded electrolytic
  capacitors
• when high speed placement is needed reflow
  soldering

• SMT aluminum electrolytic capacitors are
  available in
• Low ESR Solid Aluminum (100KHz ESR to
  0.005ohm)
• High Voltage (up to 450VDC)
• 125C, 105 C 85C Ratings
• Low Leakage Current Bi-Polar Styles

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LEADED ALUMINUM ELECTROLYTIC CAPACITORS
Market Technology Explosive growth in SMT type
is replacing portions of radial leaded
applications. No raw material production issues
expected to impact this product. Focus is upon
development of lower ESR Z types for lower
voltage higher current power management
applications. Elimination or alternate to PVC
Sleeving to be phased in. Migration of Japan
Taiwan production to China likely will result in
price erosion over time
22
LEADED ALUMINUM ELECTROLYTIC CAPACITORS
MARCH 2003 MARKET UPDATE Increasing lead times
on Low ESR Radial (8 10mm diameters) from Japan
Motherboard producers in effort to isolate
themselves from Taiwan E-cap troubles have booked
available capacity from most Japanese suppliers
Consumer entertainment equipment showing strong
demand DVDs, set-top boxes, satellite dishes,
video games, LCD televisions, flat panel plasma
displays and audio systems RECOMMENDATIONS
Prepare for longer lead times on 6.3mm, 8mm
10mm diameter with scheduled orders out as long
as four months. Consider building a buffer
inventory on certain types and sizes. Choose
quality manufacturers who can document raw
material suppliers and provide life test data.
Select suppliers with global logistic
capabilities to insure allocation for each region.
23

LEADED ALUMINUM ELECTROLYTIC CAPACITORS New
Products
Ultra-Low ESR Solid Aluminum Electrolytic
Capacitors(NSPZR Series) Radial Leaded100KHz
ESR 0.008ohm100KHz RCR 5.500ArmsCapacitance
Values 180 820uFVoltage Ratings 4
16VDCSizes 8 10mm DiametersLowest ESR of
Radial Leaded Types


Lower Cost  Hybrid Electrolyte  Aluminum
Electrolytic Capacitors  (NSPER Series) Radial
Leaded100KHz ESR 0.012ohm 100KHz RCR
2.34Arms Capacitance Values 330
1000uF Voltage Ratings 4 10VDC Sizes 8
10mm Diameters   
24

LEADED ALUMINUM ELECTROLYTIC CAPACITORS New
Products
Low ESR Aluminum Electrolytic Capacitors(NRSK
Series) Radial Leaded100KHz ESR
0.012ohm100KHz RCR 3.29ArmsCapacitance Values
470 3300uFVoltage Ratings 6.3
16VDCSizes 8 10mm Diameters




4000 Hour Life   Aluminum Electrolytic
Capacitors  (NRSG Series) Radial Leaded100KHz
ESR 0.016ohm 100KHz RCR 3.29Arms Capacitance
Values 82 4700uF Voltage Ratings 4
25VDC Sizes 6.3, 8, 10 12.5mm Dia.     
25
RADIAL LEADED Low ESR ELECTROLYTIC CAPACITOR
COMPARISON
also see www.lowESR.com
26

LEADED ALUMINUM ELECTROLYTIC CAPACITORS Recommend
ations

• Use Leaded aluminum electrolytic capacitors
• when lowest cost is needed (lowest cost per uF
  of all types)
• when high voltage (up to 450VDC) rating (or no
  de-rating is possible) is required
• when high capacitance is required (values to
  1.2Farad 1,200,000uF)
• where component must be tolerant of voltage
  current transients
• where component height can be tolerated

• Leaded aluminum electrolytic capacitors are
  available in
• Low ESR Solid Aluminum (100KHz ESR to
  0.008ohm)
• High Voltage (up to 450VDC)
• 125C, 105 C 85C Ratings
• Low Leakage Current Bi-Polar Styles
• Radial, Snap-In and Screw Terminals

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SMT TANTALUM ELECTROLYTIC CAPACITORS
Market Year 2000 was record year (50 growth
from 1999 source RER). High demand, with long
lead times and pricing increases. Since late 2000
standard construction (MnO2 cathode) capacitors
demand has dropped significantly. Industry
over-stock and reduced demand has resulted in
severe continued price erosion. Raw material
supply - chain has been expanded and is projected
to be stable for 10 years. NEW Reduced case
sizes low voltage 2.5VDC 16VDC 0603 (J) 0805
(P)
MONTHLY CAPACITY
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SMT TANTALUM ELECTROLYTIC CAPACITORS
TANTALUM CAPACITOR PROCESS
Refined tantalum powder suppliers supply chain
were source of year 2000 shortage
Cathode Materials MnO2 Standard reduced
ESR PPY - Polypyrrole (Low ESR)
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LOW ESR POLYMER CATHODETANTALUM ELECTROLYTIC
CAPACITORS
Technology Use of POLYMER in place of MnO2 for
CATHODE results in low ESR, high ripple current
ratings (RCR) and suppression of combustion
(will not support flame) under failure.
Applications in high density low voltage high
current power management designs. Larger sizes C
D/V cases continue to be popular. Expansion has
covered all sizes P D/V. Newer NTP series parts
developed include lower ESR 0.015-ohm products.
30

41 Nb 92.90638
NEW TECHNOLOGY COMPONENTS Materials - Product
Development
Niobium Electrolytic Capacitors Niobium is one
of the alternatives being considered to replace
tantalum in capacitors. Estimates, niobium is
over 100 times more plentiful than tantalum (less
than 1/10th the cost). NICs NBP series has same
construction as conductive polymer cathode
tantalum (NIC NTP Series). It is anticipated
that in the future, niobium capacitors will be
used for high-capacity devices (up to 1000µF),
which are too costly to produce using tantalum.
NICs niobium capacitor at a glance
Specifications Rated Voltage 2.5V Capacitance 22
0uF Size (D) 7.3 x 4.3 x 2.8mm ESR 0.055ohms Par
t Number NBP series (specifications in
development) Higher material costs (as compared
to tantalum types) has suppressed product
develop activity on Nb types at most e-cap
producers
31

SMT TANTALUM ELECTROLYTIC CAPACITORS Recommendati
ons

• Use SMT tantalum aluminum electrolytic
  capacitors
• when small size is required
• when low profile (low head-row) is needed
• where long life at high temperature operation
  (gt65C) is needed
• where operation voltage is tightly regulated
• protected from transients, over-voltage or
  reverse voltage
• when looking to replace leaded electrolytic
  capacitors
• when high speed placement are needed
• when flow wave soldering compatibility is
  needed

• Today SMT tantalum electrolytic capacitors are
  available in
• Low ESR Polymer Cathode and MnO2 Cathode
  Types
• Reduced 0603 (J) 0805 (P) case size
• Capacitance values to 470uF (2VDC)

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FILM CHIP CAPACITORS (SMT)

• Raw Materials (PEN / PPS Films)
• Thin metallized films (16 100VDC)
• Stable characteristics over temperature, voltage
  time
• (as compared to X5R/X7R/Y5V/Z5U ceramics)
• 0805 / 1206 / 1210 / 1913 / 2416 Sizes
• High capacitance - tight tolerance (up to 0.47uF
  in 2, 5)
• Low dielectric absorption (DA) characteristics
  for A/D conversion applications
• Low dissipation factor (DF) for high efficiency
  display circuits
• (portable - battery powered designs)
• Immunity to cracking good choice as compared
  to SMT ceramic capacitors

• Recommendations
• Use SMT film chip capacitors
• When need better performance than ceramic types
  is needed
• When (MLCC) component cracking has been issue
• When lowest loss (DF) for high circuit
  efficiency is needed

33
Technology Roadmap SMT Magnetics Products

• SMT Surface Mount
• Ferrite Chips Beads
• Noise suppression filtering at high
  frequency
• Standard (low medium current)
• 0603 1812 sizes
• High Current (5Amp) Lead Core
• 1612, 3119 3312 sizes

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Technology Roadmap SMT Magnetics Products

• SMT Surface Mount
• Chip Inductors
• NIS Series Surface Sprial (high Q)
• 0201, 0402 0603 sizes
• NML Series Multilayer (MLI) Chips
• 0402 0603 sizes
• NIN-H Series WireWound Open Frame (high current)
• 0402, 0603, 0805 1008 sizes
• NIN-F Series WireWound Molded Case
• 1008, 1210 1812 sizes
• NPI Series Power Inductors (High Current Power
  Supplies)
• 9.0mm x 12.0mmm size

High Frequency Performance!
Low Cost!
Crosses Replaces COILCRAFT
Older Designs
Power Supplies
35
SMT Magnetics Products
Cross-Reference
36
SMT RESISTORS ARRAYS
Market Technology Slow market conditions for
thick film resistor products. Pricing has eroded
to historical low levels. Alumina substrates cost
is largest cost factor. Focus on 0402 0603
sizes for new and expanded production. Smaller
(0201) size will be expanded as market acceptance
increases. 0404, 0408 0612 Array sizes
expansion ahead of larger sizes. Development of
better lower TCR,sub 1.0 ohm and high 100
Mega-ohm styles NRC-E series
MONTHLY CAPACITY
Chip Resistor Global Market Value 1998 0.82
Billion 2000 1.37 Billion 2002 0.69
Billion Source 2002 Paumamanok
37
LEGACY LEADED TECHNOLOGIES

• High Voltage Ceramic Disc Capacitors
• 0.5pF 0.22uF
• 12V 15,000VDC Rated
• Temperature compensating TCs (N150 N3300
  PPM/degC)
• Taped, Bulk or Cut Formed Lead Styles

• MLCC Radial Axial Ceramic Capacitors
• NPO / X7R / Z5U
• 1.0pF 4.7uF
• 50, 100, 200VDC

• Radial / Axial Film Capacitors
• Polyester, Metallized Polyester, Metallized
  Polypropylene
• 1000pF 6.8uF
• 100V 630VDC Rated

38
LEGACY LEADED TECHNOLOGIES

• Carbon Film, Metal Film, Metal Oxide Film
  Resistors
• 1.0 ohm 10 Meg-ohm
• 1/8W, 1/4W, 1/2W, 1W, 2W, 5W, 3W, 5W, 7W Rated
• /-1, /-2, /-5 tolerance
• Taped or Bulk Boxed

• SIP Resistor Networks
• 4 13 Pins
• Common Bussed, Isolated or Custom Circuits
• 10ohm 3.3Meg-Ohm elements

39
ENVIRONMENTAL LEADFREE PVC - FREE
National Electronics Manufacturing Initiative
(NEMI) Japan Electronics and Information
Technology Industries Association (JEITA) was
formed on November 1, 2000, through the merger of
the Electronic Industries Association of Japan
(EIAJ) and Japan Electronic Industries
Development Association (JEIDA).
World Lead-free Soldering Roadmap and Agree to
Eliminate Lead by 2005European legislation and
the JEITA roadmap will use a target of 0.1wt
percent. Lead-free Solder Alloy Selection The
type of solder composed of Sn-Ag-Cu is
recommended for board assembly
Environmental pressure to remove LEAD (Pb) PVC
Sleeving from components. Item defined as
LEAD-FREE if lead content is less than 0.2
(NEMI) or 0.1 (JEITA) of total (component) weight
40
ENVIRONMENTAL LEADFREE PVC - FREE
Complete elimination of lead from terminal finish
is need for compatibility to Lead-Free (Sn-Ag-Cu
or Sn-Zn-Bi) soldering processes

• LEAD-FREE Terminal Finish Versions available
  today
• MLCC (100 Sn)
• Tantalum E-Cap (100 Sn)
• Aluminum E-Cap (100 Sn Sn-Bi)
• Film Cap (100 Sn Sn-Ag-Cu)
• Chip Resistors Thermistors (100 Sn)
• Inductors Ferrite Chip Beads (100 Sn Sn-Cu)
  
• Diodes (100 Sn)

SMT Alum E-Caps Sn-Bi Sn-Zn-Bi group NEC,
Sharp, JVC
41
ENVIRONMENTAL PVC - FREE
Removing PVC Insulation Sleeving Aluminum E-Caps
42
(No Transcript)
43
QUALITY CONTROL

• Flow Chart
• Calibration
• Contract Review
• Control of Non-Conforming Material
• Corrective Action
• Document Control
• Handling, Storage
• Packaging and Delivery
• Inspection and Test Status
• Inspection and Testing
• Management Responsibility

• Process Control
• Product Identification and Traceability
• Quality Audits
• Quality Records
• Quality System
• Statistical Techniques
• Training
• ISO-90012000 Certification
• Global Support Product Quality

Bruce Haskin Director of Quality Assurance NIC
Components Corp. [phone] x
221 bhaskin_at_niccomp.com
44
FLOW CHART Customer Order QC Process
45

• Calibration
• NIC Components maintains and controls all
  Measurement and Test equipment used to ensure
  product quality by
• Identifying the calibration requirements of this
  equipment, and ensuring that the equipment
  remains in a state of calibration throughout
  specified intervals and conditions of use.
• Ensuring equipment is labeled with calibration
  status and next calibration due date.
• Using qualified external calibration facilities
  for all calibrations. The company maintains
  certified calibration records, which are
  traceable to NIST standards.

46

• Contract Review
• All customer requests for quotations are reviewed
  by NIC Components to ensure that
• The requirements are adequately defined and
  documented where no written statement of
  requirement is available for an order received by
  verbal means, NIC Components ensures that the
  order requirements are agreed upon before their
  acceptance.
• NIC Components has the capability to meet the
  contract or accepted order requirements.
• All special contract requirements, special
  instructions, quality requirements, and delivery
  requirements are carefully reviewed, to determine
  whether the company is able to meet these
  requirements.
• Any requirements differing from those in the
  order are resolved.
• After acceptance, any changes to the scope of
  the contract will force additional contract
  review.

47
Control of Non-Conforming Material A documented
system is in place to control non-conforming
material. The procedure outlines how
non-conforming material is segregated and
dispositioned. All identified non-conforming
material is segregated into the (RJ1) warehouse.
Material received into this warehouse code cannot
be inadvertently mixed or used as good inventory.
The Product Manager is responsible for the
disposition of non-conforming material identified
during receiving inspection. The VP of
Operations, Director of Quality Assurance, and
the Warehouse Manager are responsible for the
disposition of all other non-conforming material.
Records are maintained on all non-conforming
material.
48
Corrective Action The company maintains a system
for the timely corrective action of all
conditions detrimental to product and process
quality, including deficiencies encountered
during processing. Supplier, Customer and
Internal Audit corrective action systems are in
effect. The prime objective of the corrective
action system is to preclude the recurrence of a
nonconformance by identification and correction
of the root cause and contributing factors.
49

• Document Control
• The Director of Quality Assurance has overall
  responsibility for the creation, approval and
  issue of all QMS documents.
• The Director of Quality Assurance is also
  responsible for ensuring that
• Copies of appropriate documents are available at
  all locations where operations that can affect
  quality are performed.
• Obsolete documents are promptly removed from all
  points of issue and use.
• Changes to controlled documents are permitted
  only after formal submission to the Director of
  Quality Assurance, who has overall responsibility
  for approving all changes. He/she will consult
  with the party(s) responsible for adherence to
  the document before approving a change.

50

• Handling, Storage, Packaging, Preservation and
  Delivery
• Necessary protection of all products is provided
  to prevent damage, loss, deterioration, or
  substitution.
• Product is packaged with materials necessary to
  prevent deterioration, corrosion, or handling
  damage.
• A FIFO inventory usage system is in effect.
• Packaging and marking of products is in
  accordance with specified requirements to assure
  proper identification, preservation, and
  segregation, including delivery to the customer.
• Inspection and Test Status
• A system is in place to identify product and
  customer orders throughout the inspection
  process. Inspection status is identified on our
  computer system from product receipt through
  final inspection.

51
Inspection and Testing Inspection and Test is
performed using documented procedures in the
following areas Receiving Inspection - A
documented system exists for receiving
inspection. 100 of all incoming receipts are
visually inspected for manufacturer's part
number, quantity, packaging, condition and
documentation. Based on receiving history,
suppliers are identified as "Skip Lot" and "Non
Skip Lot". All "Non Skip Lot" suppliers require a
more in-depth physical inspection. In-process
Inspection - Inspection is performed during the
picking process to identify product that does not
meet customer special requirements such as, date
code restrictions, revision levels, packaging,
and labeling. When an error is detected, the
product is moved to a "mark out" area-awaiting
disposition. Final Inspection - 100 final
inspection is performed on all orders prior to
shipment. Verification of manufacturer's part
number, quantity, date code, packaging, bar code
labeling, and customer specific instructions are
performed.
52

• Management Responsibility
• The Director of Quality Assurance is the
  Management Representative responsible for all
  matters related to quality and the Quality
  Management System (QMS).
• The Director of Quality Assurance is a member of
  the company's senior management, and is afforded
  the authority, support, and resources necessary
  to adequately fulfill his/her responsibility.
• The Director of Quality Assurance is charged with
  the following
• Ensuring that the Quality System is established,
  implemented, and maintained in accordance with
  the requirements of ISO 9002.
• Setting quality objectives with other management
  personnel.
• Determining the root causes of non-conformances,
  initiating corrective / preventive action and
  verifying solutions.
• Measure quality performance in key areas and
  review with senior management staff.
• All managers and supervisors are responsible for
  ensuring that company quality policies are
  understood, implemented, and maintained
  throughout the organization.

53
Process Control A system is established and
maintained for monitoring all processing
operations. Documented procedures are developed
and maintained to ensure that material/product
are consistently delivered to meet customer
requirements. Product Identification and
Traceability The part number, lot number and
date code and a NIC internal item number identify
all products. Inventory is traceable from the
time of receipt to the time of shipment.
54
Quality Audits Internal quality audits are
performed to verify that all Quality Operating
Instructions are in compliance with the NI
Components QA Manual. The internal quality audit
addresses all clauses in ISO 9002. Personnel
independent of the function(s) being audited
perform audits. Corrective action requests are
generated on non-conformances, and corrective
action effectiveness is verified. Audit results
are reviewed with the area manager/supervisor and
distributed to upper management. Quality Records
Quality records are maintained for all quality
and inspection activities. Quality records are
filed and retained for auditing, tracking, and
reference purposes. Records are easily
retrievable and maintained under appropriate
environmental conditions. Records are kept on
file for a minimum of 5 years after the
conclusion of a contract or activity.
55

• Quality System
• The Quality Management System (QMS) is comprised
  of the following
• The Quality Assurance Manual, which defines the
  policies relating to the elements of ISO
  90012000.
• Quality Manual Procedures (QMPs) are the
  instructions written at the operator level to
  provide the operator with precise direction on
  how to perform his/her tasks.
• Records of work and inspections performed.
• Auditing of the system, to ensure compliance
  with procedures and the requirements of ISO
  90012000.
• Documentation / Data control system.
• Corrective / Preventive Action system.
• Management Review.

56
Statistical Techniques Statistical techniques
are used to measure internal and external quality
data. The data collected is used to identify
trends, reject types, and when necessary, to
initiate corrective action. The Director of
Quality Assurance is responsible for creating
monthly reports to be reviewed with upper
management. The review is designed to monitor
quality performance and continuous improvement
efforts.   Training It is an essential
requirement of our Quality Management System that
all staff be suitably trained, and demonstrate a
satisfactory level of skill and knowledge in
their functional areas. Training records are
kept on file and updated accordingly.
57
ISO-90012000 Certification NIC has been ISO-9002
certified since February 01, 1996NIC received
ISO-90012000 certification on October 20th, 2002
Auditor Underwriter's Laboratories Inc.
Certification covers NIC facilities located
Melville, NY (USA)  San Jose, CA (USA) 
58
European Operations NIC Eurotech Ltd14 Top
AngelBuckingham Industrial ParkBuckingham MK18
1THUnited KingdomTel 44 1280 813 737Fax 44
1280 814 737 1 Supplier Quality Personnel on
Staff  
NIC Global Support Product Quality
e-mailGlobal Technical Support tpmg_at_niccomp.com
Japan Operations Nippon Industries (Tokyo,
Japan) 3 Supplier Quality Personnel on Staff
North American Operations Corporate Head
Quarters NIC Components Corp.70 Maxess Road
Melville, NY 11747Tel [phone]Fax (631)
396-7575 3 Supplier Quality Personnel on Staff
Taiwan Operations NIC - EIAN (Taiwan) 1 Supplier
Quality Personnel on Staff
Asia Operations   NIC Components Asia Pte
Ltd  701 Sims Drive, 07-01 LHK
BuildingSingapore 387383Tel [phone]Fax
65-8441646   1 Supplier Quality Personnel on
Staff
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60
NIC Global Logistics Locations
European Operations NIC Eurotech Ltd14 Top
AngelBuckingham Industrial ParkBuckingham MK18
1THUnited Kingdom
West Coast Operations NIC Components Corp.2070
Ringwood Avenue San Jose, CA 95131
Japan Operations Nippon Industries (Tokyo, Japan)

• 3PL
• Monterey, Mexico
• Guadalajara,Mexico

Taiwan Operations NIC EIAN (Taipei, Taiwan)
North American Operations Corporate Head
Quarters NIC Components Corp.70 Maxess Road
Melville, NY 11747

• Asia Operations  
• NIC Components Asia Pte Ltd  701 Sims Drive,
  07-01 LHK BuildingSingapore 387383
• Additional Sales Personnel in
• Penang, Malaysia
• Hong Kong
• Shanghai,  China 
•    

• 3PL
• Hong Kong

61
Global Support
Shared Unified Data-base Move programs builds
from location to location seamlessly

• Single Global Part Numbers
• No competing -disputing regional divisions

62
Global Support Network
NIC EUROTECH
NIC CA
NIC NY
NIC COMP ASIA
NIC NY
NIC EUROTECH
NIC EUROTECH
NIC CA
63
1975
1982
1990
1996
1998
20002002

• NIC Regional Sales Offices
• Pacific North West
• South East
• Southern California
• Canada

Nippon Industries Company - Japan NIC
NIC Components Corp. (North America)
NIC Eurotech (Europe)
NIC West (San Jose)
NIC Asia (SE Asia)

• NIC Components Corporation , in association
  with Nippon Industries Co. Ltd is a designer,
  manufacturer and worldwide supplier of passive
  components.
• Established in 1975 as a manufacturer of
  aluminum electrolytic capacitors, NIC has
  developed into a major supplier of capacitors,
  resistors, magnetics and specialty products.
• Using Nippon Industries' manufacturing and
  design expertise, a select group of specialized
  factories was recruited to augment our core
  products and add complimentary products to our
  expansive line. 
• NIC's expertise and diligence in selection and
  integration of quality fabs is world-renowned.
  Long-term supplier relationships (averaging over
  ten years) have been fostered by shared strategy
  and partnering management teams.
• Quality is our number one commitment. Every
  step, from component design to raw material
  selection, manufacturing processing to final
  inspection is meticulously controlled.

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65
NEW! Lead-Free Products
NIC Products
SURFACE MOUNT COMPONENTS Capacitors
Aluminum Electrolytic Capacitors Ceramic
Capacitors Chip - Array - IPC Film
Capacitors Tantalum Electrolytic Capacitors
Low ESR Electrolytic Capacitors Resistive
Products Thick Film Chip - Array - IPC
NTC Thermistors Magnetics Inductors
Ferrite Beads Diodes Circuit Protection
Silicon Rectifier Diodes Schottky Barrier
Diodes Varistors (MLV)
66
NEW! Lead-Free Products
NIC Products
LEADED (TH) COMPONENTS Capacitors
Aluminum Electrolytic Capacitors Ceramic
Capacitors Film Capacitors Tantalum
Electrolytic Capacitors Resistive Products
Film Resistors Networks
67
NEW! Lead-Free Products
Cutting Edge Technology Ultra-Low ESR
Capacitors Solid Aluminum E-Caps
68
NEW! Lead-Free Products
Cutting Edge Technology Ultra-Low ESR
Capacitors Solid Aluminum E-Caps
69
NEW! Lead-Free Products
Cutting Edge Technology Low ESR Capacitors
Hybrid Electrolyte Aluminum E-Caps
70
NEW! Lead-Free Products
Cutting Edge Technology Low ESR Capacitors
Polymer Cathode Tantalum E-Caps
71
NEW! Lead-Free Products
Cutting Edge Technology Low ESR Capacitors High
Capacitance High Frequency MLCCs
72
NEW! Lead-Free Products
Cutting Edge Technology High Frequency (Wireless)
Design Components
73
NEW! Lead-Free Products
Cutting Edge Technology Ultra-Small (0201)
Components MLCC Capacitors Chip
Inductors Chip Resistors
74
END