Mass produced electronic circuit boards need to be manufactured in a highly mechanised manner to ensure the lowest cost of manufacture. The traditional leaded
electronic components do not lend themselves to this approach. Although some mechanisation was possible, component leads needed to be pre-formed. Also when the leads
were inserted into boards automatically problems were often encountered as wires would often not fit properly slowing production rates considerably.
It was reasoned that the wires that had traditionally been used for connections were not actually needed for printed circuit board construction. Rather than having
leads placed through holes, the components could be soldered onto pads on the board instead. This also saved creating the lead holes in the boards which added cost to
the production of the bare PCBs.
As the components were mounted on the surface of the board, rather than having connections that went through holes in the board, the new technology was called surface
mount technology or SMT and the devices used were surface mount devices, SMDs. The idea for SMT was adopted very quickly because it enabled greater levels of
mechanisation to be used, and it considerably saved on manufacturing costs.
To accommodate surface mount technology, SMT, a completely new set of components was needed. New SMT outlines were required, and often the same components, e.g. ICs
were sold in both traditional leaded packages and SMT packages. Despite this, the gains of using SMT proved to be so large that it was adopted very quickly.