Dear IPC Members:

I hope this newsletter finds you and yours doing well.

In our top news this week, it’s a big moment for U.S. President Joe Biden’s “Build Back Better” agenda in Washington, D.C. His new “American Families Plan” takes aim at the skills gap in our workforce, which is one of the toughest challenges facing our industry. Also a bill was introduced in Congress that would affect PCBs that are made in China and used in the U.S. military.

Meanwhile, COVID-recovery efforts kicked up a notch in Europe, with some European Union countries making manufacturing and electronics a key component of new recovery plans.

In other news, environmental regulators are remaining busy on several fronts in the United States, Europe, and Asia.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

Biden Proposes $1.8 Trillion Plan Investing in U.S. Families and Workers: U.S. President Joe Biden unveiled a $1.8 trillion package Wednesday that aims to expand access to education and childcare and invest in U.S. families. The American Families Plan is the latest piece of his “Build Back Better” agenda and would serve as "generational investments in our future to out-compete China and transform the U.S. economy,” USA Today reports. One of the most difficult challenges facing today’s electronics industry is a chronic shortage of adequately skilled workers, and we have already submitted policy recommendations to the Biden administration. IPC Contact: Chris Mitchell.

IPC Urges Focus on Electronics Manufacturing in Bipartisan Tech Bill: Last week, a bipartisan bill was reintroduced in the U.S. Congress to bolster U.S. global leadership and competitiveness. IPC supports the Endless Frontier Act, which will invest in key technologies that are critical to U.S. national security and economic competitiveness. Electronics manufacturing applies to many of the key technology areas identified in the bill, and IPC is urging Congress to take a holistic approach and consider the entire electronics manufacturing industry when considering new research investments, not just focusing on a few sectors. The Senate Committee on Commerce, Science and Transportation had scheduled a mark-up of the bill this week, but pulled it after receiving a significant number of requests on the bill. The hearing is expected to be rescheduled sometime in May. Read more about the provisions of the bill here. We will keep you updated as the bill progresses. IPC Contact: Ken Schramko.
 

QUOTE OF THE WEEK

“Decades ago, we used to invest 2% of our gross domestic product in America, 2% of our gross domestic product in research and development. Today, that’s less than 1%. China and other countries are closing in fast. We have to develop and dominate the products and technologies of the future. Advanced batteries, biotechnology, computer chips, clean energy.”
– U.S. President Joe Biden details the urgency of investing in domestic technology and manufacturing during his address this week to the U.S. Congress.

DEFENSE AND SECURITY

PCB Security at Heart of New Defense Legislation: Yesterday, a bill was introduced in the U.S. Senate to protect against vulnerabilities in printed circuit boards (PCBs) that are made in China and used throughout the U.S. military. The legislation, introduced by Senator Josh Hawley (R-MO) and called the S. 141, the PCBETTER Act, aims to help secure military PCB supply chains by authorizing a ten-year fund to strengthen microelectronics manufacturing and support implementation of critical supply chain security initiatives, among other highlights. IPC will keep you updated as we learn more details on this bill. IPC Contact: Chris Mitchell.

Major Defense Bill Postponed Due to Budget Delay: The annual defense authorization bill will now be considered by the U.S. Senate Armed Services Committee (SASC) in July, a delay of at least a month, due to the uncertain timing of the Biden administration’s FY 2022 budget.
The administration outlined $715 billion in defense spending in the “skinny budget” released April 9 “but has yet to provide lawmakers with a detailed accounting of how the money will be spent,” Defense News reports. IPC Contact: Chris Mitchell.

ENVIRONMENT, HEALTH AND SAFETY

OSHA Emergency Standard on COVID-19 Expected Soon: On April 26, the U.S. Occupational Safety and Health Administration (OSHA) sent its Emergency Temporary Standard (ETS) for COVID-19 to the White House Office of Management and Budget for final review. The ETS, which will address workplace exposures to COVID-19, is a separate effort from other OSHA regulatory activity, such as its new COVID-19 National Emphasis Program (NEP). The timing for the review is unclear, but if and when the ETS is released, it will take effect immediately. Read more about the ETS in an IPC blog here. IPC Contact: Kelly Scanlon.

IPC Launches Industry Initiative to Provide Guidance on ESG Practices: IPC is in the early stages of a new initiative to develop guidance on an industry-specific approach to environmental, social and governance (ESG) practices. The ESG for Electronics Initiative will work to support industry engagement on a range of societal concerns, including circularity, eco-design, and raw materials management. View more information on the initiative here. IPC Contact: Chris Mitchell.

EC Leaps Forward in Sustainability Reporting Requirements: The European Commission on April 21 took a leap forward in strengthening sustainability reporting for companies through the adoption of a proposal for a Corporate Sustainability Reporting Directive (CSRD). The proposal confirms the upcoming introduction of European Sustainability Reporting Standards (ESRS) and comes as part of a broad package of initiatives on sustainable finance. IPC will continue to track and advocate for a reporting environment that is workable for electronics manufacturers. Read more about the CSRD and the implications for our industry in a new IPC blog here, and please let us know if you have any questions or suggestions. IPC Contact: Alison James.

EU Report Supports RoHS General Review: A recent European Union study found that the Restriction of Hazardous Substances Directive (RoHS) is effective in preventing the release of certain hazardous substances during the use and waste treatment of electrical and electronic equipment. IPC will continue to monitor how the European Commission will use this study’s findings in future legislative initiatives on RoHS and other chemical regulations. Read more about IPC’s review of the EU’s RoHS Directive here. IPC Contact: Kelly Scanlon.

EC Opens Consultation on Sustainable Products Initiative: The European Commission recently opened a public consultation on its Sustainable Products Initiative, and your input is needed. The initiative will revise and expand the Ecodesign Directive and address the presence of harmful chemicals in electronics and ICT equipment, among other products. The consultation runs through June 9. IPC’s advocacy team is interested in hearing from you about this initiative. IPC Contact: Alison James.
 
Interested in Chemical and Product Regulations in South Korea? South Korea is the latest country to undergo an updated deep dive by our environmental, health, and safety (EHS) experts in 2021. Notably, an amendment of the Act on the Registration and Evaluation of Chemicals (K-REACH) was recently adopted, tightening the supervision of downstream users and sellers of chemical substances. This is just one of our nine white papers on the history of chemical regulations, current regulatory systems, and anticipated trends in the Asia-Pacific region. Let us know if you have any questions or concerns. IPC Contact: Kelly Scanlon.

IPC Asia Members Are Attuned to Environmental Regulations: According to a recent IPC survey, government regulations on environmental, health, and safety (EHS) issues, especially those involving toxic substances and originating from the United States and Europe, are a principal concern for IPC’s Asia members. If you are an industry expert and would like to participate in future educational events on environmental regulatory topics, or if you have EHS-related questions, please do not hesitate to contact us. View the highlights of the survey in a new IPC blog here. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

European Parliament Ratifies Brexit Trade Deal: On April 27, the Brexit process between the United Kingdom and the European Union formally came to an end when the European Parliament voted to approve the EU/U.K. Trade & Cooperation Agreement (TCA). The parliament’s vote means that the trade agreement, provisionally applied since January, will formally enter into force on May 1. The agreement will still allow for free trade in goods between the U.K. and the EU, and all U.K. goods entering the EU will still have to meet the EU’s regulatory standards. Let us know if the agreement will impact your business. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

U.S. and Japan Address Supply Chain Concerns in White House Meeting: The United States and Japan announced a renewed partnership last week focused on technology, climate change, and global health. Notably, the two countries pledged to invest together in “areas such as 5G, artificial intelligence, quantum computing, genomics and semiconductor supply chains,” Reuters reports. We will keep you updated as details of the partnership emerge and what it might mean for your business. IPC Contact: Chris Mitchell.

Europe’s Recovery and Long-Term Future Depends on Electronics: A new IPC study released last week illustrated how the electronics industry will be instrumental to Europe’s economic recovery from COVID-19 and its long-term green and digital ambitions. The study comes ahead of crucial, upcoming decisions by the European Commission, which is releasing an updated industrial strategy in May, and by European Union Member States, where COVID recovery plans are being developed for potential financial support from the commission. Read more about the study here, and let us know if you have any questions or comments. IPC Contact: Alison James.

France, Germany Announce Investments Towards Digital Transformations: France and Germany will invest in key industrial products, such as next-generation microchips, to help reduce Europe’s dependency on other regions as part of their shares of the European Union’s €750 billion Next Generation EU coronavirus recovery package. France will spend 25% of its funding on investments in “tech sovereignty and resilience” that will go towards telecoms, microchips, and cloud computing projects, while Germany will allocate 50% of its funding towards digitalization. IPC Contact: Alison James.

UPCOMING EVENTS

Do You Have Questions About the Ecodesign Directive? Virtual, May 2021. The International Electronics Manufacturing Initiative (iNEMI) will be hosting an upcoming webinar series on the implementation of ecodesign for a circular economy in the design phase of the product life cycle. The series will be a platform for ecodesign leaders to discuss their thought processes, strategies, successes, and failures. The series will begin in May, so please let us know if you have any questions. More information will be coming soon. IPC Contact: Kelly Scanlon.

Critical Environmental Requirements for Electronics Conference: Virtual, June 29. Join the world’s leading environmental regulatory experts at IPC and ITI’s upcoming conference on critical environmental requirements for electronics. Stay updated on the latest environmental requirements, like Restriction of Hazardous Substances (RoHS), Toxic Substances Control Act (TSCA), and more, that could impact your product’s design, manufacturing, supply chain management, and technology innovation. IPC Contact: Kelly Scanlon.

KEEP IN TOUCH WITH US

Meet the IPC GR Team: Whether it’s engaging with policymakers in Washington, D.C., in the European Union or in China, the IPC Government Relations (GR) Team proactively seeks opportunities to educate, inform and influence policymakers on policies that spur innovation, growth and competition, while protecting human health and the environment. But our success depends on your support and engagement. Learn more and get involved in IPC advocacy today! IPC Contact: Chris Mitchell.

Subscribe to IPC Global Advocacy Report: If you’re a member of IPC, manage your e-mail preferences and opt in to receive “Advocacy” updates. If you are not an IPC member – or you’re not sure – please send a note to friends@ipc.org, and our staff will add you to the list.

Follow us on Twitter and LinkedIn.

Contact one of us if you have any questions or insights to contribute.

Tell us how government policies affect your business.

See prior editions of Global Advocacy Report.

Explore our IPC Government Relations information online.