Precision positioning is very important for automatic assembly and inspection in the electronic manufacturing process. In this paper, we propose a fast image alignment method using the expectation-maximization (E-M) technique. The proposed algorithm is especially applied to positioning and defect inspection of printed circuit boards (PCBs). It can well handle deformed or incomplete object shapes with translation, rotation, and scale changes. The Canny edge detector is used to generate the edge maps of images. The E-step of the E-M procedure finds mutual edge points in both compared images by assigning weights to individual edge points. The mutual edge points give larger weights, while the foreign edge points in two images have smaller weights. The M-step then calculates the geometric transformation parameters using the weighted edge points in individual images. For an edge point in one image, a fast spiral search is proposed to find its corresponding edge point with the shortest distance in the other image. The spiral search is carried out by a predetermined lookup table, and no computation is involved in the search process. The weight of each edge point is inversely proportional to the neighboring distance. Experimental results indicate that the proposed E-M positioning method can achieve a translation error less than 1 pixel and a rotation error smaller than 1° for PCB positioning.