There has been a lot of speculation about the cost that electronics companies will incur to comply with the European Union's Restriction on the Use of Hazardous Substances (RoHS) law which bans the use of lead and other hazardous substances in equipment.

Estimates of RoHS' true cost vary wildly. "We are hearing statistics from some mistaken consultants that name-brand electronics companies need to spend 10% of their research and development (R&D) budgets to comply to RoHS," says Pamela Gordon, president of Technology Forecasters. She says some estimate that RoHS compliance will cost $100 million.

Based on hundreds of interviews with electronics companies, their contract manufacturers, suppliers, Technology Forecasters estimates that meeting RoHS requirements will requires a one-time investment of 2-3% of cost of goods sold.

Gordon says that companies can minimize the cost of RoHS through a design for environment initiative. Such an initiative means fewer components and materials are used in a product and the product is designed so it can be easily dismantled and recycled. The product should also be energy efficient and recycled materials should be used in production of the product when possible.

TT electronics IRC Advanced Film Division says it has now developed lead-free versions of all of its resistor products. However, the company is also offering tin/lead parts for customers who want them.

Steve Wade, director of sales and marketing for IRC's Advanced Film Division says IRC's major chip resistor lines, LRC Series Current Sense and PFC Series Precision Tantalum Nitride, are now available with matte-tin finish or plated tin/lead. IRC will continue to offer their products in both finishes as long as there is a market demand.