IPC Global Advocacy Report
10/8/2021

Dear IPC Members:

IPC is planning for a busy fall!

Here in Washington D.C., the U.S. Senate reached an agreement this week on a short-term debt ceiling extension through early December, avoiding an unprecedented default. However, the fate of the bipartisan infrastructure deal, the Biden administration’s “Build Back Better” package, and the annual defense bill are yet to be determined.

In Brussels, policymakers are calling for renewed partnership with the United States following the first meeting of the new Trade and Technology Council (TTC), although some are pushing for more “strategic autonomy” from the rest of the world. See EUROPEAN UNION below.

What government policy issues are on your mind as we position IPC for influence in 2022? See TOP NEWS OF THE WEEK below and let us know.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations

 

TOP NEWS OF THE WEEK

How Can Government Help or Hurt You in 2022? We’re Looking for Your Concerns and Stories: As we look towards 2022, we want to know what our members are worried about. What are the key challenges you are facing right now, and what about over the horizon? How can the IPC Government Relations team best advocate for you? Your feedback will be handled in confidence and not used without your permission. Please click here to answer a 5-question survey, including one open-ended question where you can send as little as a few phrases or as much as a 100-word story that we can share with others to illustrate the challenges facing our industry. Your insights also will guide IPC’s industry advocacy in the new year. Thank you for your help! IPC Contact: Ken Schramko.

IPC’s Latest Economic Trends Report: Global demand remains strong, but the economic environment is softening. While there are still many reasons to remain optimistic, growth moving forward will be more difficult to achieve. COVID-19 remains the largest risk factor right now, with surging cases limiting the potential for growth. Check out the latest global economic data in IPC Chief Economist Shawn DuBravac’s Monthly Economic Outlook Report and let us know if you have any questions. IPC Contact: Shawn DuBravac.

 

DEFENSE & SECURITY

USPAE Recipient of $8.9 Million Award for Lead-Free R&D: The U.S. Partnership for Assured Electronics (USPAE) was the recent recipient of an $8.9 million award from the Department of Defense (DoD) to grow the Defense Electronics Consortium (DEC) and expand its work on the Lead-Free Defense Electronics Project. The DEC was created to help the U.S. government identify and address potential risks in the electronics supply chain. Contact USPAE if you have any questions and would like to learn more.

 

ENVIRONMENT & HEALTH

How Can Industry Improve Chemical Management Practices? IPC Director of Environment, Health, and Safety (EHS) Policy and Research Kelly Scanlon and Clean Electronics Production Network (CEPN) Senior Director Pamela Brody-Heine recently discussed the connection between IPC’s work and CEPNs Toward Zero Exposure program, which aims to improve chemical management practices and eliminate workers’ exposure to hazardous chemicals across the global electronics manufacturing industry. Scanlon and Brody-Heine addressed conscientious engineering and how building electronics better” creates safer electronics; explained the benefits of “Toward Zero Exposure”; and discussed safer alternatives to cleaners and degreasers. Let us know if you have any questions. IPC Contact: Kelly Scanlon.

IPC Foresees Industry Burdens from EPA PFAS Reporting Obligations: On September 27, IPC submitted comments on a proposed rule from the U.S. Environmental Protection Agency (EPA) 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 warned that the reporting requirements would disproportionately burden electronics manufacturers. We recommended that electronics article manufacturers and importers be excluded from the proposed rule. Check out a recent IPC blog for our full comments. Please let us know if you have any questions or thoughts about how this rule could affect your business. IPC Contact: Kelly Scanlon.

PIP (3:1) Compliance Deadline Extended to March 2022: After considering IPC’s comments and other stakeholder feedback, the U.S. Environmental Protection Agency (EPA) announced an extension of compliance deadlines on the final risk-management rules for phenol, isopropylated phosphate (3:1) – PIP (3:1) – a chemical substance used as a flame retardant and plasticizer in electronics. The new compliance deadline is March 8, 2022, but the EPA also intends to issue a new notice of proposed rulemaking, which could extend the deadline beyond 2022. Please read this updated IPC blog for more information, and let us know if you have any questions. IPC Contact: Kelly Scanlon.
 
ECHA Publishes Long-Awaited SCIP Database Data: The European Chemicals Agency (ECHA) recently published the long-awaited results of the Substances of Concern in Products (SCIP) database. Notably, electronic equipment and its parts were among the most commonly notified product categories in the database, which included over four million entries. Check out this IPC SCIP Database resource page for more information, and let us know if you have any questions. IPC Contact: Kelly Scanlon.
 
South Korea Adds 23 Chemicals to Toxic Substance List: On September 13, South Korea’s National Institute of Environmental Research (Nier) added 23 new substances to its Toxic Chemical Substances List (TCSL) following the latest round of hazard assessments. As a reminder, manufacturers and imports of toxic substances must notify the type and usage information beforehand. South Korea also underwent an updated deep dive by our environmental and health experts earlier this year. Let us know if you have any questions or concerns. IPC Contact: Kelly Scanlon.

 

EUROPEAN UNION

EP Calls for Renewed U.S.-EU Partnership Following Trade and Technology Council Meeting: On October 6, the European Parliament adopted on a non-legislative report on the future of EU-U.S. relations calling for a new transatlantic agenda that promotes multilateral cooperation in trade, environmental issues, the digital transition, and more. Some members of the European Parliament (MEPs) also called for further European strategic autonomy, particularly in defense. IPC welcomes efforts to rekindle the U.S-EU partnership and continues to engage with policymakers to ensure the electronics value chain is recognized as central to economies on both sides of the Atlantic. IPC Contact: Alison James.

Digitization’s Effects on European Engineering Industries: According to a new European Union study of electrical, electronics, and mechanical engineering industries, digitization is having significant impacts on European engineering industries, and it will require ongoing investments in capital equipment, workforce training, and other competitive factors. Read a summary from IPC Thought Leaders Program (TLP) Member Olivier Coulon here. IPC Contact: Alison James.

IPC Concerned over EEE Criteria in EU Sustainability Regulation: On September 27, IPC submitted comments expressing concern over a draft report that calls for deeming manufacturing of electric and electronic equipment (EEE) as “durable” and “circular” under the EU Taxonomy regulation. The EU Taxonomy, which is a classification system for sustainable economic activities, aims to provide guidance to direct investments towards sustainable activities and help reach the objectives of climate and energy targets under the European Green Deal. It also introduces reporting obligations for companies falling under the Corporate Sustainability Reporting Directive (CSRD), which IPC wrote about here. Please let us know if you have any questions or concerns and read more in a recent IPC blog IPC Contact: Kelly Scanlon.

 

TAX, TRADE, AND SUPPLY CHAIN

USTR Outlines Biden Trade Agenda with China: U.S. Trade Representative (USTR) Katherine Tai announced this week that the United States will seek to reduce trade tensions with China, but it intends to keep in place the tariffs imposed by former President Donald Trump. Tai also confirmed that the United States plans to enforce the Phase One trade deal, which was signed under the Trump administration, and will hold further talks with China about its "nonmarket trade practices, including subsidies it provides to Chinese industries,” the New York Times reported. As documented in an IPC study, many IPC members have felt the pain of higher costs, supply chain disruptions, administrative hassles, and reduced access to the Chinese market due to the U.S.-China trade conflict. IPC Contact: Ken Schramko.

Bipartisan Legislation to Strengthen Domestic Medical Supply Chain: This week, bipartisan legislation was introduced in the U.S. Senate to strengthen the domestic medical supply chain. The bill, introduced by Senators Jacky Rosen (D-NV) and Bill Cassidy (R-LA), would direct the Department of Health and Human Services (HHS) to keep a list of domestic manufacturers that could voluntarily produce medical supplies during shortages. COVID-19 has reinforced the need for secure and resilient supply chains. At the outset of the pandemic, U.S. manufacturers were unable to sufficiently ramp up production of necessary emergency medical equipment, including ventilators, due to a shortage of printed circuit boards (PCBs). We will keep you updated as this legislation progresses. IPC Contact: Ken Schramko.

A Look Inside the Complex Semiconductor Ecosystem: Looking for an insightful read on the entire semiconductor ecosystem? Check out a new Forbes column by George Calhoun of the Stevens Institute of Technology which echoed IPC’s message that the semiconductor ecosystem is more extensive and complex than just chips. IPC will continue to make the case to policymakers that we need increased support of research and development (R&D) in electronics manufacturing in order to position the United States to build more of what it designs. IPC Contact: Ken Schramko.

Commerce Department Seeks Input on ICT and Semiconductor Supply Chain Risks: The U.S. Department of Commerce recently issued two requests for public comment on key supply chain risks. The first notice seeks comments on risks in ICT supply chain, and the second notice seeks input on semiconductor vulnerabilities. Both requests are pursuant to President Joe Biden’s Executive Order (EO) 14017, “America's Supply Chains,” issued earlier this year. IPC will prepare and submit comments for both requests by November 4 and November 8, respectively. Earlier this year, IPC and the U.S. Partnership for Assured Electronics (USPAE) submitted comments on risks in the semiconductor manufacturing and advanced packaging supply chains, a process that was also pursuant to the EO. A subsequent White House report reflected IPC’s input but focused on semiconductor supply chain vulnerabilities. The new semiconductor-related request is designed to address questions raised in the report. IPC Contact: Ken Schramko.

 

UPCOMING EVENTS

What are the Best Practices for Eco-design? Virtual, October 12 and 13. Join the International Electronics Manufacturing Initiative (iNEMI) and IPC for a review of some of the best practices and lessons learned from the iNEMI Tech Topic three-part series on eco-design for a circular electronics economy. The series allowed participants to learn from eco-design leaders about the best and most innovative practices used today. IPC Contact: Kelly Scanlon.

 

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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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