About $625m worth of products made by Taiwanese companies this year will fail new European safety standards, Taiwan's economic affairs ministry has warned.

The products represent some 10 per cent of Taiwan's exports to Europe, according to a report from the China Economic News Service this week. 

The European Union's Restriction of Hazardous Substances directive comes into effect on 1 July this year.

The directive is designed to limit the use of several toxic substances, such as lead, mercury and cadmium, in products sold in the European Union.

Use of the prohibited chemicals was extremely widespread in the past, and toxic chemicals have many applications in consumer electronics products.

Low-temperature lead solder, for example, is used on printed circuit boards, and lead is commonly used to soften PVC-coated cables.

Environmental authorities in the US and Europe have warned that the cables on electronic products may spread toxic dust when they begin to degrade and become brittle, or can cause lead poisoning if chewed by children.