RoHS Troubles Affect Taiwan Industry

(August 22, 2006) TAIPEI, Taiwan — Integrated Service Technology (IST), a test and analysis lab in Taiwan, estimates four or five of Taiwan's electronics companies have been disqualified for business within the European Union (EU) for failure to meet RoHS Directive guidelines. The company also stated that the disqualified businesses were fined for failed products shipped to the EU. Taiwan's Ministry of Economic Affairs stated that it had received no information regarding RoHS disqualification cases.

Fines for the disputed product averaged more than NT$10 million, equal to about $312,500 U.S. One company reportedly received NT$100 million, or $3.1 million U.S., worth of merchandise returned due to incompatibility with lead-free regulations.

ITS executives believe that many Taiwanese companies overlooked the potential impact of the RoHS Directive until the implementation deadline arrived on July 1, 2006. A large number of error analysis contract requests from Taiwanese manufacturers suggested real challenges with RoHS. Reliability issues were apparently overlooked in some companies' transitions to lead-free.

Government data released in late June 2006 stated that more than 90% of Taiwan's EU-bound exports were RoHS-compliant, which contradicts the test company's assertion that several companies face compliance disputes and fines. Taiwan-based copper-clad laminate manufacturers, as well as LED makers and silicon foundries, have reportedly experienced growth thanks to the RoHS Directive.

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