2.Update on AAEON RoHS Compliant Action Plans

Milestones for AAEON's RoHS compliant products

• In Jan. 2004 AAEON set up a steering committee to guide all related departments to work out related action plans for RoHS compliant products.
• After that, AAEON reviewed production line and then decided to set up a whole new lead-free production line and formed it in May, 2004.
• In Feb., 2004, AAEON started to survey suppliers of components to review their progress of providing RoHS compliant materials and components.
• In Nov., 2004, AAEON released a RoHS compliant roadmap for ECD products and set its goal - releasing selected RoHS compliant products in Q3, 2005. 
• In Nov., 2004, we also finalized the lead-free alloy for flux, paste and solder for reflow, wave and wire soldering process.
• In Jan., 2005, we finished a lead-free process for selected ECD products with around 90% of onboard RoHS compliant components.
• In Feb, 2005, we demonstrated reduced-lead CPU boards at our booth during the Embedded World 2005 show in Germany and at that time AAEON seemed to be the first IPC maker producing reduced-lead CPU boards.
• End of Nov., 2005, AAEON had already processed over 30 RoHS compliant models with over 98% of RoHS compliant materials or components onboard. AAEON is ready to get orders of RoHS compliant products from worldwide customers.
• In Nov., 2005, AAEON shipped her first 100 pieces of RoHS compliant CPU board - the PCM-6893, which was over 98.5 % of RoHS compliant materials or components onboard, to its German customer.
  

How did AAEON resolve related business problems raised by RoHS Directive?

• Stock rotation of non-RoHS-compliant products
  From Oct.01, 2005 AAEON asked all its suppliers of materials and components to stop shipping non-RoHS compliant ones to AAEON. At the same time, AAEON adopted the principle of FIFO (first in first out) to produce products and try to gradually run out of non-RoHS compliant materials and components to avoid mixing RoHS and non-RoHS compliant materials and components in the coming future.
• Phase out of non-RoHS compliant products
  In AAEON, the purchasing dept. keeps surveying RoHS compliant materials and components and disqualifying those suppliers who can not commit to offering RoHS compliant solutions. When AAEON finds that there is any non-RoHS compliant material or component which concentration of any banned substance is above the MCV and confirmed without RoHS compliant solutions by suppliers, AAEON will issue a phase-out notice which will highlight the last buy date and recommend substitutes for those non-RoHS compliant products.
• Will AAEON find it necessary to make compliant and non-compliant versions of the same product?
  Yes. If customers outside the EU don’t care about non-RoHS compliant issue, then AAEON still will produce specific non-RoHS compliant products case by case. In order to identify RoHS compliant products from non-RoHS compliant ones, AAEON adopts the "TF" (Toxin-free) as the prefix of the model No. to identify RoHS compliant products. For example, the TF-GENE-8310 stands for RoHS compliant GENE-8310.
  In addition to the model No., AAEON also adheres the label of "TF" (a flying bird in green background) to somewhere at the CPU boards and specified places at the inner box and carton of RoHS compliant products to let customer easily identify RoHS compliant ones.
• How does AAEON convince customers that her compliant products have the same quality as previous non-compliant products?
  During the design and manufacturing stages AAEON adopts the same verification processes and related standards executed for those previous lead-contained non-RoHS compliant) products to verify the RoHS compliant products. Only by adopting the same verification method as with the previous one AAEON can convince customers her RoHS compliant products have the same quality.
  In addition to the same verification method, if customers request, AAEON will also issue so-called the certificate of RoHS compliance which is so-called the way of "self-declaration" and highlights the model No. of specific RoHS compliant product, the percentage of RoHS compliant materials and components and the list of non-RoHS compliant components with their status. Of course, if customers also need the declarations or certificates of onboard RoHS compliant materials and components from suppliers and qualified verification institutes, AAEON will also send them to customers.

References:

• WEEE: "Waste Electrical and Electronic Equipment," 2002/96/EC
• RoHS: "Restriction on the Use of Certain Hazardous Substances in Electrical and Electronic Equipment", 2002/95/EC

Disclaimer
This document is for reference only and does not contain definitive advice. No one should act on such information without appropriate professional advice after a thorough examination of particular situation. Please consult your own legal counsel and manufacturing engineering for advice.