Abstract: A method and apparatus for automatically supplying surface mount chip components from a bulk feeder and placing the chip components on a substrate. The apparatus includes a base frame, a substrate feeding mechanism, a placement head, and a placement head positioning system. The substrate feeding mechanism delivers substrates to a component receiving position on the base frame. The placement head is translationally movable with respect to the base frame and includes a component supplying and placing mechanism, to supply components and place components on a substrate in a desired location. The component supplying and placing mechanism includes a component transfer mechanism, a component feeder, and a vacuum spindle. The transfer mechanism includes a rotatable wheel with a plurality of component holding compartments, a plurality of angularly disposed stations, and a drive mechanism for sequentially moving the compartments to at least a component receiving station and a component delivery station.