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							History          Why NIC          Products           Quality               Logistics




   Why customers prefer NIC:
   “NIC Components” Corporation Has Established a Reputation for Supplying
         Quality Products and Best-in-Class Service for Over 20+ Years


      We Supply Electronic Components That Meet the Demands of Today's
                           Cutting-edge Technology


  We Offer Multiple Component Solutions, Developed to Aid Our Customer's in
  Design and Production of Products With More Features, in Smaller and Less
                             Expensive Formats

          Our Global Systems Allows Us to Easily Support and Manage
                          Multiple Location Builds


                                                                                       1

                                                            www.niccomp.com | www.LowESR.com
   History              Why NIC               Products                  Quality                   Logistics




                                                                                             2000~2002
    1975                  1982               1990           1996             1998

Nippon Industries    NIC Components         NIC West     NIC Eurotech       NIC Asia         NIC Regional
Company - Japan     Corp. (North America)   (San Jose)     (Europe)         (SE Asia)        Sales Offices
     “NIC”                                                                               •   Pacific North West
                                                                                         •   South East
                                                                                         •   Southern California
                                                                                         •   Canada



 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.

                                                                                                                   2

                                                                               www.niccomp.com | www.LowESR.com
History   Why NIC   Products   Quality              Logistics




                                                                3

                                     www.niccomp.com | www.LowESR.com
 History      Why NIC        Products      Quality              Logistics



Why NIC?
Advantages of the NIC Fab-less Model:
NIC’s hybrid model combines strengths of both a direct
manufacturer and a global distributor
• Advantage to Factories
• Advantage to NIC
• Advantages to NIC’s Customer’s

                                        NIC Advantages:
                                                 Global Logistics
                     SADU - Strategic Account Development Unit
                                         Useful 24-7 Web-tools

                                                                            4

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History        Why NIC      Products      Quality              Logistics



    NIC FACTORY NETWORK




   NIC FAB-LESS MODEL PROVIDES FACTORIES WITH:
      GLOBAL SALES, MARKETING AND LOGISTICS
      REACHING DIVERSE CUSTOMER BASE
      PACKAGED COMPONENT OFFERING
      TECHNICAL COLLABORATION
      ADDITIONAL LEVEL OF QUALITY INSPECTION & CONTROL
      STABLE PRODUCTION REQUIREMENTS
      FINANCING




                                                                           5

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History        Why NIC       Products      Quality              Logistics



       NIC FACTORY NETWORK




   STRATEGIC FACTORIES PROVIDE NIC WITH:
      COMPETITIVE MANUFACTURING COSTS
      CONSISTENT ALLOCATIONS
      SPECIALIZED PRODUCT CONCENTRATION
      FLEXIBLE PRODUCTION
      QUICK TURNAROUND




                                                                            6

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History         Why NIC       Products      Quality              Logistics



      NIC OFFERS IT’S CUSTOMERS




         “SELECT” CUSTOMER CONCENTRATION
         EXTENSIVE OFFERING OF PASSIVE COMPONENTS
         SEAM-LESS GLOBAL LOGISTICS
         GLOBAL ENGINEERING SUPPORT
         TECHNOLOGY LEADER
         COMPETITIVELY PRICED COMPONENTS




                                                                             7

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History          Why NIC           Products             Quality                 Logistics


                                 SADU
             Strategic Account Development Unit

                           EBN (02/19/99)   [ SADU INFO PAGE ]
   New NIC unit to provide local service to CEMS
   NIC Components Corp. has created a new Strategic Global Accounts
   business unit (SADU - Strategic Account Development Unit) at its Melville,
   N.Y., headquarters in a continuing effort to position itself as a global
   supplier to contract-manufacturing customers. Creation of the business unit
   was prompted by the fact that major CEMs such as Celestica, Jabil, SCI,
   and Solectron are building manufacturing facilities all over the world to
   support their local markets, according to Richard Schuster, president of the
   passive-component supplier. They are demanding local stocking facilities to
   meet their just-in-time deliveries and demand-pull inventory requirements,
   he added.
   By offering a global-logistics solution to inventory management, as well as
   global sales and technical support, Schuster believes that the midsize
   company can effectively compete with some of its larger competitors…
                                      [ more ]
                                                                                            8

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                            SADU
               Strategic Account Development Unit


                  SADU Team Members Support
                  Multi-National CEMs & OEMs
                  Provide Global Logistics Support
          Material Management Control of Inventory Levels
                        Product Bonding
                  Auto Replenishment Programs
                 Consignment Inventory Programs


                                                                             9

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History          Why NIC       Products       Quality              Logistics




                              SADU
                 Strategic Account Development Unit


                   SADU Team Members Activities:
            Tracking Requirements of Multi-location Builds
                 Assuring Local Inventory Is Available
          Consolidating Item Orders From Multiple Locations
            Daily Interface to Support Critical Need Items




                                                                             10

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 History          Why NIC        Products   Quality              Logistics


SADU Strategic CEM / ODMs
          Jabil
          FoxConn
          SCI-Sanmina
          Solectron
          Flextronics
          Celestica
          SMTC
          Cisco
          HP – Compeq
          nVIDIA
          Dell
          EMC
          Symbol Technologies
          Lucent Technologies
          Mars
          Motorola
          Matrox
          Tivo


                                                                           11

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History   Why NIC   Products   Quality              Logistics




                                                              12

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History   Why NIC        Products     Quality              Logistics

                    www.niccomp.com




                                        On-Line Cross Referencing

                                        On-Line Stock Check




                                                                     13

                                            www.niccomp.com | www.LowESR.com
    History          Why NIC           Products     Quality              Logistics

                                   www.lowESR.com




        Premier Website
 Focused on Low ESR Capacitor
            Solutions:
 Materials, Technologies, Specs,
Performances Data, Comparisons,
       Technical Articles

                                                                                   14

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History   Why NIC       Products     Quality               Logistics

                    www.lowESR.com




                                     On-Line Comparison Tables
                                     Review & Select Low ESR
                                           Capacitors
                                      by Cap, VDC, Type, Size, ESR,
                                             RCR and Price




                                                                     15

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History   Why NIC   Products   Quality              Logistics




                                                              16

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History   Why NIC   Products             Quality                 Logistics


                                       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)                                     17

                                                  www.niccomp.com | www.LowESR.com
History   Why NIC   Products             Quality               Logistics


                                        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




                                                                         18

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History       Why NIC       Products        Quality                Logistics


                                          NEW! Lead-Free Products
Cutting Edge Technology
  Ultra-Low ESR Capacitors: Solid Aluminum E-Caps




                                                                             19

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History       Why NIC       Products        Quality                Logistics


                                          NEW! Lead-Free Products
Cutting Edge Technology
  Ultra-Low ESR Capacitors: Solid Aluminum E-Caps




                                                                             20

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History       Why NIC        Products        Quality              Logistics


                                           NEW! Lead-Free Products
Cutting Edge Technology
Low ESR Capacitors: Hybrid Electrolyte Aluminum E-Caps




                                                                            21

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History       Why NIC        Products       Quality              Logistics


                                          NEW! Lead-Free Products
Cutting Edge Technology
Low ESR Capacitors: Polymer Cathode Tantalum E-Caps




                                                                           22

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History       Why NIC        Products       Quality              Logistics


                                           NEW! Lead-Free Products
Cutting Edge Technology
Low ESR Capacitors: High Capacitance & High Frequency MLCCs




                                                                           23

                                                  www.niccomp.com | www.LowESR.com
History       Why NIC       Products          Quality              Logistics


                                          NEW! Lead-Free Products
Cutting Edge Technology
High Frequency (Wireless) Design Components




                                                                             24

                                                    www.niccomp.com | www.LowESR.com
History           Why NIC     Products    Quality              Logistics


                                         NEW! Lead-Free Products
Cutting Edge Technology
Ultra-Small (0201) Components
          » MLCC Capacitors
          » Chip Inductors
          » Chip Resistors




                                                                         25

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History               Why NIC   Products   Quality              Logistics




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




                                                                          26

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History              Why NIC               Products               Quality              Logistics




          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


                                                                                                 27

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History        Why NIC          Products           Quality              Logistics




     Changing Technology Impact Passive Devices


    Technology Innovations

    Lower voltage of operation = increased circuit current = higher
    demands on voltage - power management circuitry = tighter line
    regulation (reduce ripple) = lower ESR capacitors

    Faster circuit speeds = reduced response time for voltage - power
    management circuits = energy from capacitor bank

    Higher frequency operation = reduced trace distances = better
    performing & smaller devices

    All impact signal & supply voltage integrity



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History       Why NIC      Products    Quality              Logistics




   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

          Capacitors     Varistors Ferrite Beads
            Resistors Inductors Thermistors
                                                                      29

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History       Why NIC        Products               Quality                Logistics

MULTILAYER CERAMIC CHIP CAPACITORS :
Materials Shift




                            Electrodes (PdAg or BME- Base Metal: Nickel)




                                                 BME           2002 Estimates:
                                                               80% of global
                                                               MLCC production
                                                               is BME
                                                  Pd-Ag




                                                                                    30

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History       Why NIC           Products           Quality              Logistics


MULTILAYER CERAMIC CHIP CAPACITORS :
Developments




           Nickel electrodes = reduced component costs
              – Greater equipment (firing) costs
           Increased number of layers [ >100 layers ]
           1uF and above = very low ESR [ sub 0.010ohm @ 100KHz)
           X7R (-55 ~ +125) & X5R (-55 ~ +85) = ±15% Cap change
           Encroaching upon tantalum electrolytic range
           100uF / 6.3VDC [1210 in X5R & Y5V TCs]
           Thinner dielectric layers = lower voltage ratings
              – Voltage-coefficient effects
              – Aging effects & piezo-electric noise

                                                                                  31

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History           Why NIC        Products       Quality              Logistics


   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. Demand disappeared in 2001, with producers
 running at reduced capacity. 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).




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History          Why NIC      Products        Quality              Logistics


   MULTILAYER CERAMIC CHIP CAPACITORS



          NIC Monthly Capacity by Case Size
             Case Size        2002             2003
               0201            6KK              20KK

               0402           400KK            600KK

               0603           550KK            650KK

               0805           200KK            200KK

               1206           55KK              50KK

              > 1206          15KK              15KK

             Cap Arrays        5KK              20KK

              TOTAL =        1230KK           1555KK


                                                                             33

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History             Why NIC         Products           Quality              Logistics


   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                            X5R & Y5V
                16V / 25V / 50V                10V
                39pF ~ 3300pF                  1200pF ~ 0.01uF
                NMC0201X7Rxxx                  NMC0201X5Rxxx

          Applications:
          Ultra-Small for Hand Held – Embedded Device

          Precautions:
          Solder Paste & Placement Issues
                                                                                      34

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History        Why NIC          Products           Quality              Logistics



   MULTILAYER CERAMIC CHIP CAPACITORS

   NMC Series: MLCCs
   Ceramic Chip Capacitors
                                       0805 size
   0201 size                           NPO = (472) 4700pF / 25VDC
   NPO = (101) 100pF / 25VDC           X7R = (105) 1.0uF/16VDC
   X7R = (332) 3300pF/16VDC            X5R = (475) 4.7uF/6.3VDC
   X5R = (103) 0.01uF/10VDC            Y5V = (474) 4.7uF/16VDC

   0402 size                           1206 size
   NPO = (471) 470pF / 16VDC           NPO = (103) 0.01uF / 25VDC
   » New! X7R = (104) 0.10uF/10VDC     X7R = (225) 2.2uF/16VDC
   X5R = (104) 0.10uF/10VDC            X5R = (226) 22uF/6.3VDC
   Y5V = (474) 0.47uF/6.3VDC           Y5V = (226) 22uF/10VDC

   0603 size                           1210 size
   NPO = (152) 1500pF / 25VDC          NPO = (103) 0.01uF / 50VDC
   X7R = (224) 0.22uF/10VDC            X7R = (106) 10uF/10VDC
   X5R = (105) 1.0uF/16VDC             X5R = (476) 47uF/6.3VDC
   Y5V = (105) 1.0uF/10VDC             New! X5R = (107) 100uF / 6.3VDC
                                       New! Y5V = (107) 100uF / 6.3VDC

                                                                                  35

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History           Why NIC             Products             Quality               Logistics


   MULTILAYER CERAMIC CHIP CAPACITORS

     NMC-L Series:
     Low ESR NPO Ceramic Chip Capacitors
      0402, 0603, 0805
      O.5 ~ 150pF
      Low ESR up to 1GHz

     Ultra-Stable High Frequency Ceramic Chip Capacitors
     NIC, has added a new range of low ESR multilayer ceramic chip capacitors. NMC-L
     series is 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.




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History           Why NIC          Products          Quality              Logistics


 MULTILAYER CERAMIC CHIP CAPACITORS :
 Recommendations

    Transition away from larger (>0805) 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 P&D issues with:

          – Larger (>0805) sizes

          – Higher voltage parts (>100VDC)

          – High capacitance (high Pd content) NPO




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History            Why NIC        Products        Quality              Logistics


 SMT TANTALUM ELECTROLYTIC CAPACITORS

Market :
Year 2000 was record year (~50% growth from 1999* *source RER) .
High industry demand, with long lead times and pricing increases.
Since December 2000 standard construction (MnO2 cathode) capacitors
demand has dropped significantly. Industry over-stock and reduced
demand has resulted in lower pricing.
Technology:
NEW Reduced case sizes low voltage 2.5VDC ~ 16VDC
    - 0603 (J) [ 1.0 ~ 10uF]
    - 0805 (P) [ 0.33 ~ 33uF ]
          MONTHLY CAPACITY
                CASE SIZE         2001 (Units)        2002 (Units)
                    P&J            2,000,000            4,000,000
                   A               10,000,000          15,000,000
                   B               10,000,000          15,000,000
                   C               5,000,000            6,500,000
                   D/E             5,000,000            6,500,000
                         Total:    32,000,000          47,000,000


                                                                                 38

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History              Why NIC              Products               Quality               Logistics


 SMT TANTALUM ELECTROLYTIC CAPACITORS


          STEPS   PROCESS
             1    Powder Mixing Tantalum Powder                  $250 / Lb ~30%of Unit Cost
             2    Pressing Tantalum Wire                         $200 / Lb ~3% of Unit Cost
             3    Vacuum Sintering
             4    Pellet Assembly                                  Primary raw materials
             5    Oxide Film Formation Forming Liquid                     account for
             6    Manganese Dioxide or Polymer Cathode Formation     ~33% of Unit Cost
             7    Graphite Baking Graphite
                                                                        Source: PCI 11/12-2000
             8    Conductive Layer Formation
             9    Anode/Cathode Connection
            10    Silver Paste
            11    Lead Frame                          Cathode Materials:
            12    Conductive Adhesive
            13    Molding Resin                       MnO2 – Standard & reduced ESR
            14    Marking Ink                         PPY - Polypyrrole (Low ESR)
            15    Burn-In
            16    Lead Forming
            17    Inspection


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History           Why NIC             Products              Quality               Logistics


LOW ESR POLYMER CATHODE
TANTALUM ELECTROLYTIC CAPACITORS


   Market & 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 will cover all sizes
   P ~ D/V. New NTP series parts developed include lower ESR 0.025-ohm
   products, and we will achieve 0.015 ohm.
                                                                 Polymer Cathode Suppliers
                                                                 NIC       NTP
                                                                 Kemet     T520 "KO-Cap"
                                                                 Tokin-NEC PSL "NeoCap"
                                                                 Sanyo     TP "PosCap"
                                                                 Nichicon  F55




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History            Why NIC           Products           Quality              Logistics

                                                                                    41


                                                                                Nb
   NEW TECHNOLOGY COMPONENTS:
   New Product
                                                                                92.90638

          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). NIC’s 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.

          NIC’s niobium capacitor at a glance
          Specifications:
          Rated Voltage 2.5V
          Capacitance     220uF
          Size            (D) 7.3 x 4.3 x 2.8mm
          ESR             0.055ohms
          Part Number     NBP series (specifications in development)
          Production      On-Hold
                                                                                         41

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History        Why NIC         Products         Quality              Logistics


SMT TANTALUM ELECTROLYTIC CAPACITORS:
Recommendations


  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 (>+65°C) 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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History         Why NIC         Products         Quality              Logistics



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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History           Why NIC     Products   Quality              Logistics



SMT ALUMINUM ELECTROLYTIC CAPACITORS:


     NIC Monthly Capacity by Size
          Case Diameter        2002           2003
               3mm              1KK            2KK

               4mm             30KK          37.5KK

               5mm             8.5KK          10KK

              6.3mm            18KK          21.5KK

               8mm             10KK          12.5KK

              10mm             3.5KK           4KK

          12.5mm & larger      2.2KK          3.2KK

             TOTAL =          73.2KK         90.7KK



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 History     Why NIC         Products            Quality              Logistics


SMT Low ESR ELECTROLYTIC CAPACITOR COMPARISON:




                       also see www.lowESR.com


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SMT Low ESR ELECTROLYTIC CAPACITOR COMPARISON:


                                                                                                          POLYMER
                                                                            HYBRID ELECTROLYTE
                                           SOLID ALUMINUM                                                 CATHODE
                                                                                ALUMINUM
                                                                                                         TANTALUM
                                            Plastic Molded                                             Plastic Molded
                    TYPE:     SMT V-Chip    SMT Flat Chip    Radial Lead   SMT V-Chip   Radial Lead    SMT Flat Chip

               ELNA              PV             - - -           - - -         - - -        - - -            - - -

              FUJITSU            - - -          - - -          FP-RE          - - -        - - -            - - -

              KEMET              ---           AO-CAP           ---           ---          ---            KO-CAP

           NIC Components
                                NSPZ             NSP           NSPZR         NSPE         NSPER             NTP
                Corp.

             NICHICON            NA             - - -           SEP           - - -        - - -            F55

            PANASONIC            SPV             SP             - - -         - - -        - - -            - - -

              SANYO              SVP            - - -           SEP           - - -        - - -          POSCAP

            UCC- NIPPON
                                 PXA             PT              PS           - - -        - - -            - - -
             CHEMICON




                                   Many E-capacitor suppliers have
                                   developed low ESR capacitors…
                          NIC offers the most options – design choices…

                                                                                                                            46

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History         Why NIC           Products          Quality              Logistics


     SMT ALUMINUM ELECTROLYTIC CAPACITORS:
     Recommendations


 Use SMT aluminum electrolytic capacitors:
     when low cost is needed (lowest cost per uF of SMT types)
     when high voltage (>20VDC) rating (or no de-rating is possible) is required
     when >470uF 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 0.012ohm)
                     High Voltage (up to 450VDC)
                     +125°C, +105 °C & +85°C Ratings
                     Low Leakage Current & Bi-Polar Styles

                                                                                   47

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History           Why NIC             Products          Quality                  Logistics


 LEADED ALUMINUM ELECTROLYTIC CAPACITORS


 Market & Technology:
 Limited growth expected over long term. 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
                                 2001                         2002+
                          CAPACITY (UNIT : KPCS)   CAPACITY (UNIT : KPCS)
           SIZE
            φ4                    4,000                    4,000
            φ5                    8,910                    8,910
           φ6.3                   9,400                    9,400
            φ8                    8,860                    16,860
           φ10                    21,350                   26,750
           φ12                     3080                     3080
           φ16                     840                      840
           φ18                     230                      230
            OTHERS:               2,500                    5,000
                 TOTAL:           56,670                   70,070
                                                                                           48

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History       Why NIC         Products         Quality              Logistics

      LEADED ALUMINUM ELECTROLYTIC CAPACITORS:
      New Products

                    Ultra-Low ESR
                    Solid Aluminum Electrolytic Capacitors
                    (NSPZR Series) Radial Leaded
                    100KHz ESR = 0.008ohm
                    100KHz RCR = 5.500Arms
                    Capacitance Values = 180 ~ 820uF
                    Voltage Ratings = 4 ~ 16VDC
                    Sizes = 8 & 10mm Diameters
                    Lowest ESR of Radial Leaded Types


                                 Lower Cost
                          Hybrid Electrolyte
          Aluminum Electrolytic Capacitors
              (NSPER Series) Radial Leaded
                   100KHz ESR = 0.012ohm
                   100KHz RCR = 2.34Arms
          Capacitance Values = 330 ~ 1000uF
                Voltage Ratings = 4 ~ 10VDC
                Sizes = 8 & 10mm Diameters
                                                                              49

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History       Why NIC          Products         Quality              Logistics

      LEADED ALUMINUM ELECTROLYTIC CAPACITORS:
      New Products

                     Low ESR Aluminum Electrolytic Capacitors
                     (NRSK Series) Radial Leaded
                     100KHz ESR = 0.012ohm
                     100KHz RCR = 3.29Arms
                     Capacitance Values = 470 ~ 3300uF
                     Voltage Ratings = 6.3 ~ 16VDC
                     Sizes = 8 & 10mm Diameters




                               4000 Hour Life
          Aluminum Electrolytic Capacitors
                (NRSG Series) Radial Leaded
                   100KHz ESR = 0.016ohm
                   100KHz RCR = 3.29Arms
           Capacitance Values = 82 ~ 4700uF
                 Voltage Ratings = 4 ~ 25VDC
             Sizes = 6.3, 8, 10 & 12.5mm Dia.

                                                                               50

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History                  Why NIC                       Products                           Quality                    Logistics


RADIAL LEADED Low ESR ELECTROLYTIC CAPACITOR COMPARISON:



                                                             Ripple
           NIC                                                            Load Life at
                     Type         Voltage        ESR        Current                           Cost         Size
          Series                                                           +105degC
                                                            Ratings
                                                                            MODERATE
          NRSZ       Liquid         6.3 ~         From                                                     4x7~
                                                           0.03 ~ 3.20A    2000 ~ 7000        LOW
          NRSX     Electrolyte     100VDC      0.015 ohm
                                                                              hours
                                                                                                          18x35.5


                                                                             BETTER
                     Liquid                       From                                                    6.3x11 ~
          NRSG     Electrolyte
                                 6.3 ~ 35VDC
                                               0.016 ohm
                                                           0.40 ~ 3.29A      2000 ~           LOW
                                                                                                          12.5x30
                                                                            4000hours


          NRSJ       Liquid      6.3 ~ 50VDC      From     0.92 ~ 2.55A    MODERATE
                                                                                             LOWEST    8x11.5 ~ 10x23
          NRSK     Electrolyte   6.3 ~ 16VDC   0.012 ohm   1.14 ~ 2.80A    2000 hours


                     Hybrid                       From                     MODERATE                      8x11.5 &
          NSPER    Electrolyte
                                 4 ~ 10VDC
                                               0.012 ohm
                                                           1.45 ~ 2.34A
                                                                           2000 hours
                                                                                            MODERATE
                                                                                                         10x12.5


                      Solid                       From                      LONGEST                      8x11.5 &
          NSPZR    Aluminum
                                 4 ~ 16VDC
                                               0.008 ohm
                                                           4.36 ~ 5.54A
                                                                           (No Dry-Out)
                                                                                              HIGH
                                                                                                         10x12.5




                                                   also see www.lowESR.com




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          LEADED ALUMINUM ELECTROLYTIC CAPACITORS:
          Recommendations


 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)
                    +125°C, +105 °C & +85°C Ratings
                    Low Leakage Current & Bi-Polar Styles
                    Radial, Snap-In and Screw Terminals


                                                                                        52

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History            Why NIC             Products         Quality              Logistics

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
                                                                                       53

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  History             Why NIC           Products              Quality              Logistics


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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    History             Why NIC          Products         Quality                Logistics


  Technology Roadmap
  SMT Magnetics Products

                     SMT – Surface Mount
                      Chip Inductors:
                          NIS Series: Surface Sprial (high Q)
High Frequency Performance!  0201, 0402 & 0603 sizes
                            NML Series: Multilayer (MLI) Chips
                   Low Cost!   0402 & 0603 sizes
                            NIN-H Series: WireWound Open Frame (high current)
        Crosses – Replaces
               COILCRAFT       0402, 0603, 0805 & 1008 sizes
                            NIN-F Series: WireWound Molded Case
               Older Designs   1008, 1210 & 1812 sizes
                            NPI Series: Power Inductors (High Current Power Supplies)
              Power Supplies
                               9.0mm x 12.0mmm size


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    History        Why NIC   Products   Quality              Logistics


   SMT Magnetics Products


Cross-Reference:




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History              Why NIC         Products       Quality               Logistics


SMT RESISTORS & ARRAYS


     Market & Technology:
     Similar slow market conditions for thick film resistor products at the
     moment. Pricing is flat, with higher alumina substrates pricing impacting
     larger (>0805 sizes) packages [Alumina substrate is majority element of
     thick film chip resistor]. 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.

                CASE SIZE            2001 (Units)     2002 (Units)
                                        15 KK            20 KK
                   0402       0201     250 KK           350 KK
                   0603                500 KK           600 KK
                   0805                350 KK           350 KK
                   1206                200 KK           200 KK
                   1210                 25 KK            25 KK
          0.5W & 1W - 2010 & 2512       25 KK            25 KK
                            Total:     1,365KK          1,570 KK




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History        Why NIC         Products         Quality              Logistics


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

                                                                               58

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History           Why NIC        Products        Quality              Logistics


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




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    History            Why NIC               Products              Quality                Logistics


       ENVIRONMENTAL:
       LEAD–FREE | 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 2005
           European 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



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History           Why NIC           Products          Quality                 Logistics


   ENVIRONMENTAL:
   LEAD–FREE | 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       61

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History     Why NIC   Products   Quality              Logistics


   ENVIRONMENTAL:
   PVC - FREE




                                         Removing PVC
                                       Insulation Sleeving
                                        Aluminum E-Caps




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History               Why NIC          Products             Quality               Logistics



QUALITY CONTROL

• Flow Chart                                • Process Control
• Calibration                               • Product Identification and Traceability
• Contract Review                           • Quality Audits
• Control of Non-Conforming Material        • Quality Records
• Corrective Action                         • Quality System
• Document Control                          • Statistical Techniques
• Handling, Storage                         • Training
• Packaging and Delivery                    • ISO-9001:2000 Certification
• Inspection and Test Status                • Global Support – Product Quality
• Inspection and Testing
• Management Responsibility


                                          Bruce Haskin
                                          Director of Quality Assurance
                                          NIC Components Corp.
                                          (631) 396-7500 x 221
                                          bhaskin@niccomp.com
                                                                                            64

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History          Why NIC                Products                 Quality                   Logistics
                                    Cust omer Order
                                     Requirement


FLOW CHART:
Customer Order                     Cont ract Review

QC Process                         Review Cust omer
                                        Special
                                    Requirement s




                 Add
               Special
                                        Comply
             Requirements                                       Resolve wit h
                            Y es         wit h           No
                 To                                              Cust omer
                                     Requirement s
              Customer
              Master File



                                           Y es


                                                              Picking Process.
                                                                 QMP 280-3
                                   Ent er order using          Pick and verif y
                                   CX ent ry screen.            P/N and Qt y.
                 Y es
                                     Print order in             Comply wit h
                                      Dist . Cent er          cust omer special
                                                                inst ruct ions




                                                                                           No
                                 Final Inspect ion
                                     QMP 200
                               Verif y P/N and Qt y.
                                Verif y compliance
                                  wit h cust omer
                               special Inst ruct ions.
                              (Labeling /Packaging)           Does t he order
                                                              meet cust omers
                                                               requirement




                                                                     Y es



                                                                 Packaging
                                                                    and
                                                                  Shipping                           65

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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.




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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.



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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.




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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.




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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.




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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.



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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.




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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.




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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.




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History          Why NIC            Products           Quality              Logistics




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.



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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 9001:2000.
• 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 9001:2000.
• Documentation / Data control system.
• Corrective / Preventive Action system.
• Management Review.



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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.




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History          Why NIC            Products            Quality               Logistics



ISO-9001:2000 Certification
NIC has been ISO-9002 certified since February 01, 1996
NIC received ISO-9001:2000 certification on October 20th, 2002
Auditor: Underwriter's Laboratories Inc.
Certification covers NIC facilities located: Melville, NY (USA) & San Jose, CA (USA)




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                                                    European Operations:
NIC Global Support – Product Quality                NIC Eurotech Ltd
                                                    14 Top Angel
                                                    Buckingham Industrial Park
e-mail:                                             Buckingham MK18 1TH
Global Technical Support: tpmg@niccomp.com          United Kingdom
                                                    Tel: 44 1280 813 737
                                                    Fax: 44 1280 814 737
                                                    1 Supplier Quality Personnel on Staff



                                                                                          Japan Operations
                                                                                          Nippon Industries
                                                                                          (Tokyo, Japan)
                                                                                          3 Supplier Quality
                                                                                          Personnel on Staff




     North American Operations                                                      Taiwan Operations
     Corporate Head Quarters:                                                       NIC - EIAN (Taiwan)
     NIC Components Corp.
     70 Maxess Road
                                                                                    1 Supplier Quality
     Melville, NY 11747                       Asia Operations:                      Personnel on Staff
     Tel (631) 396-7500                       NIC Components Asia Pte Ltd
     Fax (631) 396-7575                       701 Sims Drive, #07-01 LHK Building
     3 Supplier Quality Personnel on Staff    Singapore 387383
                                              Tel: 65-8441575
                                              Fax: 65-8441646
                                              1 Supplier Quality Personnel on Staff
                                                                                                          79

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NIC Global Logistics Locations
                                                European Operations:
                                                NIC Eurotech Ltd
              West Coast Operations:            14 Top Angel
              NIC Components Corp.              Buckingham Industrial Park
              2070 Ringwood Avenue              Buckingham MK18 1TH
              San Jose, CA 95131                United Kingdom

                                                                               Japan Operations
                                                                               Nippon Industries
                                                                               (Tokyo, Japan)



        3PL:
           Monterey, Mexico
           Guadalajara,Mexico                                                          Taiwan Operations
                                                                                        NIC – EIAN
                                                                                        (Taipei, Taiwan)




        North American Operations
        Corporate Head Quarters:
                                        Asia Operations:
        NIC Components Corp.                                                     3PL:
        70 Maxess Road                  NIC Components Asia Pte Ltd                 Hong Kong
        Melville, NY 11747              701 Sims Drive, #07-01 LHK Building
                                        Singapore 387383

                                        Additional Sales Personnel in:
                                         Penang, Malaysia
                                         Hong Kong
                                         Shanghai, China
                                                                                                           81

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History                  Why NIC                      Products                   Quality                      Logistics

Material & Information Flow

            NIPPON INDUSTRIES CO., LTD. (NIC JAPAN)                      NIC COMPONENTS CORP.
                         TOKYO, JAPAN                                          TAIPEI, TAIWAN



                 JAPAN                  CHINA                         TAIWAN                    CHINA
                                                      PRODUCTION
              PRODUCTION           PRODUCTION          FACILITIES   PRODUCTION             PRODUCTION




                                 CORPORATE SALES & MARKETING ENGINEERING, MIS
                                          NIC COMPONENTS CORP.
                                                NEW YORK, USA




      NEW YORK                   CALIFORNIA       NIC STOCKING          UK                        SINGAPORE
           NORTH                    NORTH           FACILITIES        EUROPE                        SE ASIA
          AMERICA                  AMERICA



       NORTH                       NORTH
                                                                      EUROPEAN                      SE ASIA
      AMERICAN                    AMERICAN
                                                                     CUSTOMERS                    CUSTOMERS
     CUSTOMERS                   CUSTOMERS



                                                                                                                      82

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History          Why NIC       Products        Quality              Logistics


Global Support

                   Shared Unified Data-base
                    Move programs – builds from
                  location to location seamlessly




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


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History            Why NIC    Products      Quality              Logistics


Global Support Network



                              Scandinavia
             West Coast                       Mid-West
                             NIC EUROTECH
               USA                              USA
               NIC CA                          NIC NY




                              NIC Local
          Mid-Atlantic
                             Warehouses               SE Asia
             USA
                                 (7)
            NIC NY                              NIC COMP ASIA




           Western Europe                   Eastern Europe
            NIC EUROTECH        Mexico       NIC EUROTECH
                                NIC CA



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History   Why NIC   Products   Quality              Logistics




                                                              85

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