Sliver wire was the novel material to replaced gold wire in wire bonding process, and rare earth element was often added to improve the properties of silver wires. The annealing effect (at 225°C~275°C for 30min) on the tensile mechanical properties of silver wires with φ=20μm was investigated. In addition, the microstructural characteristics and the mechanical properties before and after an electric flame-off (EFO) process were also studied. Free-air ball (FAB) of 85μm diameter from 20μm diameter pure silver wire was too huge for bonding process, otherwise the silver wire was added 0.05 wt.% lanthanum to form Ag-La alloy wire to reduce the diameter of FAB. FAB of Ag-La alloy wire with a 55μm diameter, and can avoid short-circuited. In addition, microstructures, tensile properties and the micro-hardness of Ag-La alloy wires indicated that the best annealing temperature was 425°C.