A method and system for forming contacts on semiconductor components, such as wafers, dice and packages, are provided. The method employs magnets to align and hold ferromagnetic balls on bonding sites of a component substrate. The system includes a holder for holding the component substrate, and magnets on the holder aligned with bonding sites on the component. The system also includes a ball placement mechanism for placing the ferromagnetic balls on the bonding sites, and a bonding mechanism, such as an oven, or a focused energy source, for bonding the ferromagnetic balls to the bonding sites. The ferromagnetic balls can be provided as a ferromagnetic core having an outer solder layer, as a solid ferromagnetic material with a conductive adhesive outer layer, or as ferromagnetic particles embedded in a bondable matrix material. An alternate embodiment system includes a focused magnetic source for dynamically aligning the ferromagnetic balls to the bonding sites.