Dear IPC Members:

I hope all is well.

Industry advocacy is top of mind here at IPC. This week, we shared with the U.S. Department of Defense (DoD) how vital it is that the electronics industry be used to help address long-standing defense industrial base and supply chain concerns. Meanwhile, there’s also a new opportunity for you to participate in an upcoming virtual fly-in to advocate for pending manufacturing legislation in the U.S Congress. See TOP OF THE WEEK below.

In Washington, the U.S. Congress is on recess this week with the clock ticking on a host of October deadlines like the long-debated bipartisan infrastructure deal and the Biden administration’s “Build Back Better” package. Stay tuned to see if a breakthrough can be found next week!

As always, our advocacy work is most successful when you’re involved. Help us plan for 2022 by taking our five-question survey.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

IPC and USPAE Urge Industry Collaboration in Defense Industrial Base Issues: IPC and the U.S. Partnership for Assured Electronics (USPAE) called for increased partnership between U.S. Department of Defense (DoD) and industry in joint comments submitted this week. IPC and USPAE advocated for increased DoD engagement with industry to better understand the microelectronics supply chain and to better address defense industrial base and supply chain concerns. The comments also urged the DoD to implement Section 841 of the FY 2021 National Defense Authorization Act (NDAA), which would bolster supply chain security for printed circuit boards (PCBs) and printed circuit board assemblies (PCBAs), and to leverage IPC-1791 — Trusted Electronic Designer, Fabricator and Assembler Requirements — to ensure trusted sourcing for critical military and national security applications. IPC Contact: Ken Schramko.

Interested in Chemical and Product Regulations in Asia? To help our members, IPC has created nine white papers highlighting the history of chemical regulations, current regulatory systems, recent regulatory updates, and anticipated trends in the Asia-Pacific region. Each white paper has recently undergone an updated deep dive by our environmental and health experts. You can find our refreshed white papers here, and let us know if you have any questions or concerns. IPC Contact: Kelly Scanlon.

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 ADVOCACY AND YOU

You’re Invited to a Virtual Fly-in on Active Manufacturing Legislation: IPC is taking part in a virtual fly-in held by the Semiconductor Industry Association (SIA) next week, October 20-21, to advocate for funding the initiatives authorized in the Creating Helpful Incentives for the Production of Semiconductors (CHIPS) for America Act and the enactment of the Facilitating American-Built Semiconductors (FABS) Act investment tax credit. SIA will provide briefing materials and asks interested participants to devote a substantial portion of both days to the event. The overall theme will be consistent with the multi-association letter that IPC signed onto in July. Please reach out to us with your name, company name, and contact information if you would like to participate. IPC Contact: Ken Schramko.

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 CEPN’s 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.
 
Taiwan Updates Hazard Prevention Standards: On September 16, Taiwan’s Ministry of Labor approved an amendment to its hazard prevention standards implementing a “safety requirement” for the management of specific hazardous chemical substances. The amendment, which aims to ensure worker health, added chemicals that are relevant to the electronics industry and its equipment. The revision will take effect on July 1, 2023. See the full list of changes here; please 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

EU Due Diligence Proposal Delayed to December: The European Commission’s upcoming Sustainable Corporate Governance (SCG) proposal, originally expected in June, has reportedly been delayed to December 8. As a reminder, the SCG proposal will introduce mandatory environmental and human rights due diligence rules for all companies operating within the European Union as well as corporate directors’ duties to integrate mandatory sustainability criteria into their decision-making. IPC is continuing to engage with EU policymakers to ensure that the legislation is feasible and minimizes the administrative burden for our member companies. Let us know if you have any questions. 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

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.

Agreement Reached on Global Minimum Tax Plan: On October 8, a group of over 130 nations reached an agreement on a U.S.-led plan which would impose a 15% global minimum tax (GMT) on corporations. The tax rate would “apply to companies with annual revenue of more than 750 million euros ($866 million) and would generate around $150 billion in additional global tax revenue per year,” the New York Times reports. The plan, which the Biden administration called a “partial remedy for the offshoring of manufacturing jobs” is expected to secure final approval by the end of October and will go into effect in 2023. Please let us know if you have any questions. IPC Contact: Chris Mitchell.

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.

HELP US SPREAD THE WORD ON SOCIAL MEDIA

Interested in chemical and product regulations in Asia? Asia is home to several of the world ’s largest nations and most dynamic economies, and many governments in the region have established comprehensive environmental and health policy frameworks. Please check out these updated IPC white papers on evolving chemicals regulations in China, Japan, Singapore, South Korea, Taiwan, Vietnam, Malaysia, Philippines, and Thailand.		Can you help with a five-minute survey? We ’re seeking your input on the current state of the global electronics manufacturing industry. Your replies will help us measure monthly the “pulse” of the global electronics manufacturing industry.

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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