Brought to popularity by Malcolm Gladwell's book The Tipping Point: How Little Things Can Make a Big Difference, the term “tipping point” has taken on the meaning of a process in which, beyond a certain point, the rate at which the process proceeds increases dramatically.

In 2006, the semiconductor supply chain saw a tipping point of sorts as environmental regulations began to take affect and the July deadline for the European Union’s Restriction of Hazardous Substances (RoHS) directive came and went – although certainly not quietly.

Labeling issues, exemption questions, materials declaration, part number changes and compliance processes were all roadblocks on industry’s first major step toward better environmental procedures.

“The general awareness of contaminants in products and general environmental concerns are raising and that doesn’t turn around,” said Steve Schultz, director of strategic planning and communications for Avnet Logistics.

While the industry has yet to completely catch up with the EU directive – a recent Newark InOne survey found that 45 per cent of US respondents had not converted to RoHS compliant parts (including those that are exempt) and that 30 per cent believe RoHS does not affect them – the environmental compliance ball keeps rolling.

“There’s still a ways to go and RoHS will go into 2007. Initially we thought it would be done and we’d be in that 80 to 85 percentile at the end of this year. We don’t see that happening,” said Jeff Shafer, a senior v-p at Newark InOne.

And as 2007 approaches, the supply chain will face more challenges, including WEEE, REACH and state laws in the United States, making some executives see EU RoHS as the tipping point when it comes to environmental procedures.

And perhaps the biggest impact on legislation in 2007 will come as the supply chain braces for RoHS in China, due to become law in the country on March 1, 2007.