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JAXA 24 th Annual Microelectronics Workshop Implementation of Surface Mount and Custom Packaging Solutions for Higher Density, Next Generation Satellite Systems TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

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JAXA 24th Annual Microelectronics Workshop

Implementation of Surface Mount and Custom Packaging Solutions for Higher Density, Next Generation Satellite Systems

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

– Background information on TCS / Trident Acquisition – Implementation of surface mount technology – Advantages and disadvantages of surface mount – Case Study: Modification of though-hole part to surface

mount – Industry Trends Related to Surface Mount Technology

and Next Generation Satellite Systems

Agenda

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TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 3

About Trident • Trident’s Electronic Components

Group, specializes in component engineering, procurement, testing and quality assurance services for high-reliability satellite, manned space and launch vehicle applications

• Trident is the largest US parts management company and provider of technical services and parts to the international marketplace, with unparalleled experience, for over 35 years.

• On February 1, 2011, Trident was acquired by TeleCommunication Systems Inc., and will be known as TCS Space & Component Technology.

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

TCS Profile

Established in 1987

HQ: Annapolis, Maryland, US NASDAQ: TSYS, IPO August 2000 Market Segments: Government and Commercial Employees: 1,400+ Revenues: $475M 2011 Target

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TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

Global Presence

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TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

Most Comprehensive Set of End-to-End Communications Solutions Desktop ► Individual Communicator ► Mobile, Fixed, & On-the-Halt ► To the Last Mile ► Over All Communication Paths

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A Value-Added Systems Integrator, Providing “Mission Critical” Total Communication Solutions, Globally

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 7

Electronic Components Group Total Parts Program Management Engineering Services BOM review Design assistance Parts selection Parts engineering Radiation analysis / derating / test Supply of hardware and materials Construction analysis Qualification testing Part specification preparation Upscreen document preparation Device screening, LAT / QCI testing PEMs screening & qualification Upscreen testing Die procurement and test Obsolescence life cycle / management Obsolete part manufacturing Counterfeit part detection Applications support Failure analysis Cost and schedule estimates

Procurement / Quality Assurance Manufacturer selection Prohibited Materials Analysis (XRF) Order placement Long lead procurement Follow-up / recovery planning Status reporting Problem resolution Receiving and inspection GIDEP alert tracking Data review ESCC Alert tracking Kitting and shipment Destructive Physical Analysis AS9100B / ISO9001:2008 certified

After Delivery Services Long-term storage of data, samples & customer owned material Kitting to BOM Problem analysis and resolution Assembly, Integration & Test support Warranty

Manufacturing Support Materials and process review Recommendations: Customer source inspections Materials changes Product assurance testing Process changes Unique device manufacturing Die banking Quality assurance, data review and analysis Problem analysis and resolution

Export Compliance 35 years experience with Departments of State and Commerce Thorough knowledge of regulations and policies Jurisdiction & requirements determined prior to contract

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

z

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Department of Defense Federal Civilian

Domestic International

Our Customers

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 9

Implementation of Surface Mount

– Although SMT has seen widespread use in commercial applications since the 1980’s, many current space programs continue to utilize traditional through hole electronic components packages

– To achieve higher densities and savings in weight, space builders are moving towards surface mount technology

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 10

Standard SMT Parts and Custom Packaged Products

– Currently there are many packages available as standard product that are qualified for space

– Newer integrated circuit technologies for next generation satellites, dictate use of higher pin count devices, not typically available in traditional DIP/through-hole packages (i.e. QFP, BGA, CGA, etc.)

– In an effort to reduce weight and size, advanced packaging techniques may be utilized, such as stacking, multi-chip modules, and qualified PEMs (Plastic Encapsulated Microcircuits)

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 11

Advantages of Surface Mount

– Use of double sided board to allow for higher circuit densities

– Smaller size and lighter weight. In many cases > 50% size and weight savings

– Use of automation such as pick and place machines to reduce cost and human error

– Reflow soldering oven can be characterized and provides consistent results

– Higher pin count for more complex devices – Less parasitic effects/loss

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 12

Disadvantages of Surface Mount

– Proto-typing may be more difficult, or require conversion from through-hole to surface mount components

– Many SMT components may not be available as a MIL qualified part

– Move towards finer pitch technology may cause reliability concerns

These concerns can be overcome with a strong component

engineering team and a proper parts qualification plan. In most cases, the benefits will far outweigh the disadvantages.

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 13

Case Study: Conversion of 8 Lead DIP to 10 Lead Class S Flatpack

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 14

Case Study: Conversion of 8 Lead DIP to 10 Lead Class S Flatpack

– Customer was in process of developing a new board utilizing surface mount components to save space and weight. Component was not available in a class S surface mount package

– Heritage design utilized DIP package

Legacy DIP Component Conversion to Trident SMT Component

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 15

Overview of build process

Locate source for die

Determine suitable packageDetermine critical

requirements

Develop Engineering

Samples

Develop test program to verify

functionality

Perform Wafer Lot Acceptance

MIL-STD-883

Screening in accordance with MIL-STD-883 for Class S devices

Procure Die and Packages

Test Samples

FM Build to Class S per

MIL-PRF-38535

Qualification to MIL-PRF-38535.

Group A, B, and DDone

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 16

Final Results of Conversion to Flatpack from DIP

– Conversion to 10 lead flatpack – Significant savings in board space, which allowed for use

of both sides of board. Part is ~50% smaller – Significant savings in weight. From 1.05 grams down

to .36 grams – Allowed utilization of board level kitting, supporting

automated manufacturing

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 17

Industry Trends Related to Implementation of SMT Technology

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 18

Bill of Materials Specifying SMT

– As new designs are implemented, customer bill of materials (BOMs) and parts list are now starting to specify all surface mount components on tape and reel, to the extent it is available

– Requests to Trident to convert through hole components to surface mount…either through lead forming or custom packaging

Automated Pick and Place Nitrogen Convection Reflow Furnace

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

Consolidated Parts Lists and BOM Kitting

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– To take advantage of lower unit pricing and reduce administrative costs, users have been requesting consolidated parts lists for multiple builds

– To take advantage of process automation and SMT, customers utilize quality assurance services at Trident. Parts stored in environmentally controlled, bonded storage and parts are delivered in complete kits, directly to the board assembly house.

Customer owned material in bonded storage facilities

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 20

Obsolescence Management and Counterfeit Parts

– Trends toward surface mount may ultimately lead to more difficulty in procuring through-hole devices. Must have good plan in place to minimize impact

– As parts become obsolete, the risk of counterfeit parts entering the market increases

– In response to the significant and increasing volume of counterfeit electronic parts entering the aerospace supply chain, posing significant performance, reliability, and safety risks, Trident has developed a special process to mitigate the risks of receiving and delivering counterfeit electronic parts

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc. 21

Quality Issues Affecting Space Programs

As an example, a single problem found during integration testing, cost a major program over $250 million and a 2 year launch delay

– “Thousands of good engineering decisions can be undone by a single engineering flaw or workmanship error, resulting in the catastrophe of major mission failure.2”

– A recent study by the United States General Accounting Office1, reported significant quality issues with piece parts. Of the problems, 64.7% were related to electronic parts

– As a result of failures in orbit, prohibited materials analysis via XRF is now becoming a standard requirement in the US

– Use of COTS and increasingly complex piece parts for latest and greatest technology requires strict quality assurance plans and qualification at the front end. As problems arise further in the manufacturing cycle, costs can rise exponentially

1 Space and Missile Defense Acquisitions: Periodic Assessment Needed to Correct Parts Quality Problems in Major Programs, GAO June 24, 2011 2 Office of the Under Secretary of Defense for Acquisition, Technology and Logistics, Report of the Defense Science Board/Air Force Scientific Advisory Board Joint Task Force on Acquisition of National Security Space Programs, (Washington, D.C.: May 2003).

XRF for prohibited materials analysis

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

Conclusions

– As new designs are required, surface mount should seriously be considered for significant savings in weight, space, and ultimately cost

– In order to reap the benefits of SMT, heritage through hole devices can be converted to SMT components

– It is important to maintain a strict quality assurance procurement process as parts become obsolete and new designs implement SMT and/or smaller more complex devices

TCS Proprietary & Confidential © 2011 TeleCommunication Systems, Inc.

Contact Information

TeleCommunication Systems, Inc. 275 West Street

Annapolis, Maryland 21401 www.telecomsys.com

TSYS (NASDAQ)

Trident Space & Defense 19951 Mariner Avenue, Bldg. 157

Torrance, California 90503 www.tridentsd.com

Keith Watanabe Program Manager Trident Space & Defense [email protected] Alex Takagi Engineering Manager Trident Space & Defense [email protected]

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