SPEL to replace lead with tin for finish material

SPEL Semiconductors has begun to gradually move to lead-free finish materials to meet with the European Commission's norms that ban the use of lead by July 1, 2006. The company has begun to use pure tin plating process to replace its use of lead.

SPEL's vice-chairman, Ar Rm Arun, said that despite the introduction of tin plating, the company would continue with lead for some more time because of existing demand for it.

The company plans to supplement tin plating with more sophisticated kinds of packaging to attract more customers. One kind of packaging the company plans to add to its portfolio is the QFN packaging, said Arun.

SPEL's tin plating process was today formally inaugurated by Union Minister for Communications and IT, Dayanidhi Maran.

The new introductions in packaging are integral to SPEL's aim of recording a turnover of $100 million in five years (the company's turnover was about $ 10 million at the end of last fiscal).

SPEL's plans are set in the backdrop of a global semidconductor industry that is expected to nearly double in size to $ 26.6 billion over the next five years.

SPEL Semiconductor, SPIC's subsidiary that carries out a part of the semiconductor manufacturing process, plans to more than double its production capacity to tap opportunities in an industry that is forecast to nearly double in size to $ 26.6 billion over the next five years.

SPEL's key clients are companies such as Fairchild Semiconductors, Alliance Semiconductors and Pericom Semiconductors.

SPEL now plans to raise $10 million this fiscal to expand its manufacturing capacity from 15 million units a month to around 37.5 million units a month. The company aims to capture new business from areas such as Europe and Japan to supplement the capacity increase.

SPEL is engaged in assembly and testing processes in semiconductor manufacturing.

These processes are at the tail end of the manufacturing. Semiconductor manufacturing is a four-stage process that starts with design (US companies dominate here and get most of the intellectual property) and fabrication that is largely done in Asia-Pacific.