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Continued demand for the miniaturization of consumer electronics has driven the reduction of passive component sizes from 1210 and 1206 in the 1980's, to 0402 and 0201 in the late 1990's, to the new and emerging 01005 size of today. The use of 0603 and 0402 components have been prevalent for a number of years. These component sizes have been run in high volume applications at very high yields, so the assembly manufacturing processes are quite mature and reliability data is readily available. The latest generations of wireless products are requiring increasingly more functionality in less space, with lower weight, less power consumption, and at higher frequencies, and this is driving the utilization of smaller passives for system-in-package (SIP) modules. Recently, 0201 components have been implemented in very high-density applications for mobile phone, blue tooth, and wireless LAN applications. Capacitor and resistor manufacturers are now sampling or offering low volume quantities of 01005 components, and some semiconductor companies and electronic assembly manufacturers are gearing up to develop and qualify manufacturing processes, assemblies and components for their respective applications. The goal of this paper is to summarize previous design, assembly and reliability issues encountered in developing and implementing 0201 components for high volume manufacturing of high density wireless SIP modules using Pb-free solder. Lessons learned from 0201 development and manufacturing implementation is applied towards the present 01005 development project, including design, material and process parameter optimization. 01005 manufacturing yields (e.g. pick rate, placement position accuracy), defects (e.g. tombstoning, solder bridges, solder beading), quality (e.g. joint shape, solder appearance, solder volume) and reliability assessment data of component shear strength are included in this report. Due to the lack of time thermal-mechanical fatigue, shock and impact resistance, moisture and reflow sensitivity testing would not be provided, but if completion of these test is completed by the time of paper presentation, these results are included in June'2005, presentation.