Dear IPC Members:

I hope all is well with you, your colleagues, family, and friends.

This week’s newsletter highlights IPC’s advocacy efforts on the technology R&D and competitiveness legislation being considered in the U.S. Congress and a Congressional task force’s call to address DoD supply chain vulnerabilities in defense-related legislation.

As always, we have a host of environment and health updates for you, including a look at the latest legislative action on PFAS in the U.S. and in Europe.

Please send us a message if you have an opinion on what you think governments should be doing to support our industry’s long-term growth and evolution.

And stay tuned for upcoming opportunities to advocate for legislation critical to our industry.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

IPC Urges Electronics Inclusion in U.S. Tech and Competitiveness Bill: IPC sent a letter this week to the U.S. Senate Commerce, Science, & Transportation (CST) Committee, affirming the importance of explicitly stating support for electronics manufacturing in pending tech and competitiveness legislation. IPC supports the U.S. Innovation and Competitiveness Act (USICA), which includes the Endless Frontier Act, because it boosts investment in federal R&D in 10 high-tech fields. But we think the bill should more explicitly support R&D in electronics manufacturing and position the United States to build more of what it designs. It’s proving to be an uphill battle to persuade bill sponsors to accept our changes. But this is a rare opportunity to set the framework for federal R&D for the coming decade, and we’re going to continue to push. Please watch for an IPC Advocacy Alert coming your way soon, asking you to contact your elected officials about this bill. IPC Contact: Ken Schramko.

IPC’s Latest Economic Trends Report: Many industries continue to be plagued by supply chain disruptions, and the electronics industry is no exception. Although these pressures are expected to ease in the coming months, IPC believes “supply chain disruptions will continue to reverberate throughout the economy, and the electronics industry, well into next year.” Check out IPC Chief Economist Shawn Dubravac’s latest Monthly Economic Outlook Report and let us know if you have any questions. IPC Contact: Shawn DuBravac.

Biden Proposes New “Buy American” Rule: On Wednesday, U.S. President Joe Biden announced a new proposed rule on “Buy American” regulations to strengthen domestic supply chains for critical goods and increase the threshold for products to qualify as made in America. The rule would increase the current level of component parts that have to be manufactured in the United States to qualify for federal procurement from 55 percent to 60 percent immediately, then to 65 percent in two years and 75 percent five years after the second increase. The Buy American restrictions do not apply to acquisitions that are subject to certain trade agreements. Before a final rule is issued, there will be a 60-day public comment period. Check out the Administration’s fact sheet and let us know if you have any concerns. IPC Contact: Ken Schramko.

QUOTE OF THE WEEK

"Our Defense Critical Supply Chain faces similar weaknesses that, if exploited, would impair our ability to compete with our adversaries and respond to crises. This problem will not age well. This report makes concrete recommendations that help mitigate these risks, enhance our resilience, and better secure our defense supply chain.”
- Rep. Mike Gallagher (R-WI), co-chair of the Defense Critical Supply Chain Task Force, urged the U.S. Defense Department to address threats to the defense supply chain in a new report.

IPC ADVOCACY AND YOU

Help IPC’s Advocacy Team Help You! U.S. members of IPC: Please take a minute to visit our online action center and let us know you’ll participate in upcoming campaigns to educate the U.S. Congress on our key issues. It’s fast, easy, and important. Thanks! IPC Contact: Ken Schramko.

DEFENSE AND SECURITY

House Task Force Urges DoD to Address Supply Chain Concerns: A bipartisan group of lawmakers last week urged the U.S. Department of Defense (DoD) to address threats to the defense supply chain in the upcoming annual defense policy bill. As Defense News reports, the U.S. House Armed Services Committee task force report outlined recommendations for the DoD to better understand its supply chain and the potential for shortages, specifically regarding semiconductors, rare earth elements, and microelectronics. Let us know if you have any questions or comments. IPC Contact: Chris Mitchell.

Defense Spending Bill Includes $7.5 Million in Lead-Free Funding: On July 13, the U.S. House Appropriations Committee approved a $706 billion defense spending bill for FY 2022, including $7.5 million sought by IPC to reduce U.S. Department of Defense (DoD) reliance on lead-based electronics. To date, the U.S. Congress has provided a combined $15 million for this research and development (R&D) in FY 2020 and FY 2021. In a challenging budget environment, the House figure signals congressional interest in continuing this R&D project through completion. More details are available in this December 2020 IPC Blog post. We will keep you posted and welcome your questions and suggestions. IPC Contact: Chris Mitchell.

ENVIRONMENT & HEALTH

OSHA Requests Input from Mechanical Power Press Users: On July 28, the U.S. Occupational Safety and Health Administration (OSHA) issued a Request for Information from companies using mechanical power presses in the shaping, cutting, and bending of metal sheets. OSHA is considering updating the 50-year-old mechanical power presses standard and is seeking input in areas such as the types of presses that should be covered. The comment period is open until October 26; let us know if you have any questions. IPC Contact: Kelly Scanlon.

New EPA Rule to Require Reporting and Recordkeeping on PFAS: On June 28, the U.S. Environmental Protection Agency (EPA) issued a proposed rule that would require all manufacturers and importers of per- and polyfluoroalkyl substances (PFAS) to report information regarding the “uses, production volumes, disposal, exposures, and hazards” of the chemical substance. PFAS has a history of use in electronics, and IPC will be preparing comments in response to this proposed rule during the 90-day comment period. Please let us know if you have any questions or thoughts about how this will affect your business. IPC Contact: Kelly Scanlon.

Prepare for Potential PFAS Action in Europe: On July 15, five EU countries announced they would be submitting a restriction proposal that would ban the manufacture, sale, and use of per- and polyfluoroalkyl substances (PFAS) under Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) regulation. If the restriction proposal is adopted, then manufacturers, importers, distributors, and retailers would be banned from all uses of PFAS with the exception of some that are determined to be essential. Please let us know if your company or products would be affected by this possible PFAS restriction. IPC Contact: Kelly Scanlon.

Feedback Needed on End-of-Life Directive Revisions: The European Commission is currently reviewing the End-of-Life (ELV) Directive to address circularity and extended producer responsibility, and the management of electronics is expected to come up. The directive, which aims to make the dismantling and recycling of ELVs more environmentally friendly, is set to be revised by the end of 2022. The public consultation on the revision ends October 26. Please let us know if you or your company would be affected by changes to the directive, and let us know if you have any input. IPC Contact: Kelly Scanlon.

Vietnam Moves to Amend Chemical Management Legislation: On July 9, the Vietnam Ministry of Industry and Trade (MOIT) issued a notice to amend Decree 133/2017/ND-CP, which regulates chemical production and trade requirements under the Law on Chemicals. The notice notably proposed adding 12 new substances as banned chemicals and adding six new substances as restricted chemicals. Let us know if you have any questions; you can submit comments here. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

EC to Issue First Recovery Fund Payments: The European Commission will soon issue the first payments of its $750 billion Next Generation EU coronavirus recovery package, and electronics manufacturers stand to benefit. As highlighted in the French and German recovery plans, the payments will help finance digital transformation projects across the European Union. IPC also released an April report which illustrated how the electronics industry will be instrumental to Europe’s economic recovery from COVID-19 and its long-term green and digital ambitions. IPC Contact: Alison James.

EC Launches Alliance Aimed at Boosting Manufacturing Capabilities: On July 19, the European Commission launched a new industrial alliance to advance the design and production of advanced microchips. The alliance, called the Industrial Alliance for Processors and Semiconductor Technologies, will seek to help the European Union strengthen its “digital infrastructures, products and services” while also increasing its share of the global semiconductor production. IPC will continue to work with the commission to advocate for a holistic approach to the electronics manufacturing ecosystem and will identify new opportunities stemming from the launch of the alliance. IPC Contact: Alison James.

TAX, TRADE, AND SUPPLY CHAIN

EU Issues Guidance Addressing Forced Labor in Supply Chains: The European Commission recently published a guidance to help businesses address the risk of forced labor in their operations and supply chains. The guidance outlined the “practical aspects of due diligence” and came ahead of an upcoming corporate sustainable governance (CSG) proposal, which will introduce mandatory due diligence obligations. IPC is continuing to engage with European Union policymakers to ensure that the legislation, expected in late 2021, is feasible and minimizes the administrative burden for our member companies. Let us know if you have any questions. IPC Contact: Alison James.

UPCOMING EVENTS

Global Electronics Summit: Virtual, September 21–23. Join ChemicalWatch and IPC’s Kelly Scanlon as she covers the EU’s sustainable products initiative on Day 2 of the conference. Additional key topics include REACH restrictions on per- and polyfluoroalkyl substances (PFAS), ECHA’s Substance of Concern in Products (SCIP) database, Toxic Substances Control Act (TSCA) and other U.S. regulations, flame retardants, and more. IPC members are eligible for a 20% registration discount; register here. Contact Kelly Scanlon for a discount code.

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.

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