“Electronics are essential to virtually every sector of the economy, from defense and aerospace to vehicles, healthcare, commerce, high performance computing, and AI. Yet the United States still faces serious gaps in its electronics manufacturing base. Many IPC members have shared that without predictable, pro-growth tax policies, long-term investments in critical manufacturing capabilities, including R&D and capital infrastructure, become far more difficult.” 

— Excerpt from IPC’s statement welcoming the House Committee’s passage of tax reform legislation 

 

U.S.-China Tariff Truce Offers Temporary Relief: The U.S. and China reached a 90-day agreement to roll back their most severe tariffs, offering temporary relief to electronics manufacturers caught in the crossfire. The U.S. reduced its tariff rate on Chinese goods from 145% to 30%, while China lowered its retaliatory rate from 125% to 10%. The deal followed two days of high-level talks in Geneva and is a de-escalation of the ongoing trade conflict. For electronics manufacturers, the pause may help ease short-term supply chain disruptions and pricing pressures, particularly on components like printed circuit boards, semiconductors, and AI-related hardware. However, an article in Yahoo! Finance reported that with tariffs still much higher than before, uncertainty remains a barrier to investment and long-term planning. IPC continues to call for a predictable, pro-manufacturing trade policy that reduces cost burdens, strengthens global supply chains, and avoids measures that undermine the U.S. electronics ecosystem. IPC Contact: Richard Cappetto.  

IPC Report: U.S. Risks Losing Momentum in Global Chip Race: IPC today released a new report detailing the scale of U.S. semiconductor investments and the growing risks of falling behind the global competition. The report finds there are 90 announced U.S. projects across 28 states, fueled by $36 billion in CHIPS Act awards and significant private-sector funds, with an estimated 58,000 jobs in the pipeline. However, it also warns that the U.S. is underinvesting in critical back-end capabilities like advanced packaging and high-performance substrates. Global competitors, including China, Europe, Japan, and South Korea, have aggressive national strategies. “The U.S. needs to maintain its momentum and adopt a broader ‘silicon-to-systems’ strategy,” said IPC’s Chris Mitchell. IPC will use this report to continue to call for a comprehensive, pro-manufacturing strategy that supports the full electronics value chain. IPC Contact: Richard Cappetto.  

IPC Skeptical of U.S. Tariffs on Chips, Urges Broader Approach: In comments submitted to the U.S. Commerce Department last week, IPC agreed that the United States should secure its supply chains for semiconductors and related technologies but advised against a round of tariffs. The difficulties would be even worse for small and mid-sized manufacturers who lack alternative sources of supply or pricing power to demand supplier concessions. Instead of tariffs, IPC recommends a proactive strategy that combines targeted incentives for manufacturing along with international partnerships and measured trade tools. Tariffs have on outsized impact on small and mid-sized manufacturers that lack supply sources or pricing power to demand supplier concessions. The U.S. strategy also must include workforce development and “friendshoring,” as described in a recent op-ed by IPC’s David Hernandez and American Enterprise Institute’s Brent Orrell. IPC’s official comments were developed with input from IPC members across the electronics value chain, including suppliers, PCB, EMS, and OEMs. IPC Contact: Richard Cappetto.    

 

Industry Coalition Calls for EC Strategy on Electronics Ecosystem: Last week, IPC and a coalition of European associations representing hundreds of companies across the EU sent a joint letter to European Commission Executive Vice President Henna Virkkunen, urging a broader approach to industrial policy beyond semiconductors. The letter welcomed the momentum behind a “Chips Act 2.0” but warned that without action to support PCBs, substrates, advanced packaging, and assembly, Europe still risks deeper dependence on foreign supply chains. The coalition called for either a new Strategic Electronics Manufacturing Act or a “Chips Act Plus” that includes the full electronics value chain. Join us for follow-up action by signing the Industry Call to Action. IPC Contact: Alison James.  

 

Mexico’s Auto Sector Responds to Trade Pressures: Mexico’s auto and electronics manufacturing sectors are adjusting to a complex policy environment shaped by new investments and ongoing trade uncertainty. Japanese firm SK TEC is investing over $19.8 million to expand its operations in Irapuato, Guanajuato, a move expected to create new jobs and increase production capacity in a key automotive hub. Samsung is reportedly considering relocating some of its TV and appliance production, while Hyundai has shifted a portion of Tucson crossover output to Alabama. In contrast, Nissan has reaffirmed its commitment to Mexican production despite the higher tariffs, signaling confidence in its long-term strategy. Francisco N. González Díaz of the National Auto Parts Industry Association (INA) noted the industry’s continued need to navigate tariff volatility with caution, emphasizing the importance of maintaining USMCA content rules and advancing Mexico’s capabilities in electromobility, advanced electronics, and software integration. IPC Contact: Lorena Villanueva.      

Steady Growth in Mexican Aerospace and Manufacturing Output: According to an article in this week’s Mexico Industry, Mexico’s manufacturing sector posted a 3.1% year-over-year increase in March, driven by gains in electrical accessories and transportation equipment, according to new data. The growth reflects ongoing recovery and expansion across key industrial sub-sectors. In parallel, Safran Aerosystems inaugurated its sixth facility in the state of Chihuahua with a $7 million investment focused on aircraft evacuation systems and seating components. The new plant adds capacity to Mexico’s growing aerospace footprint and contributes to the region’s role in global supply chains, says Mexico Business News. These trends may create new sourcing, production, and partnership opportunities for IPC members engaged in aerospace and industrial electronics. IPC Contact: Lorena Villanueva.      

Mexican Electronics Investments Paused Amid Trade War Uncertainty: Approximately $800 million in planned electronics investments in the state of Jalisco are currently on hold due to uncertainties stemming from the ongoing U.S.–China trade conflict, Informador.MX reported last week. According to industry group CANIETI Occidente, companies are postponing key decisions as they await clarity on potential tariff impacts and shifts in global supply chains. While recent U.S. tariff exclusions for consumer electronics and specific semiconductor equipment offer some short-term relief, the broader uncertainty continues to affect investment strategies in the region. IPC is monitoring the potential impacts on members, particularly in areas related to supply chain stability and cross-border manufacturing operations. IPC Contact: Lorena Villanueva.      

 

IPC Hosts Second Tokyo Roundtable on Trade and Tech Innovation: On May 21, IPC President and CEO John Mitchell will convene leading industry executives in Tokyo for another roundtable discussion on the intersection of global trade and technology innovation. This marks the second in IPC’s quarterly roundtable series in Japan. Featured participants include IPC’s Matt Kelly, VP of Standards and Technology, and Chris Mitchell, VP of Global Government Relations, along with special remarks from former LDP Secretary General Akira Amari. To inquire about attendance, contact Yusaku Kono.

India Forms Committee to Shape National Manufacturing Mission: Last week, the Indian government officially established an inter-ministerial committee to develop the framework for a proposed National Manufacturing Mission. Plans for this were first announced in the February 2025 Union Budget. The panel, chaired by Niti Aayog CEO B.V.R. Subrahmanyam, then began consultations with industry stakeholders to define the mission’s scope and objectives, according to an article in The Economic Times. The mission is expected to advance the Make in India initiative by focusing on five priorities: improving the ease and cost of doing business; preparing a future-ready workforce; strengthening the micro, small and medium enterprise sector; expanding technology access; and enhancing product quality standards. For IPC members engaged in electronics manufacturing and supply chains in India, the initiative could shape future policy support, regulatory frameworks and investment conditions. Let us know your thoughts. IPC Contact: Gaurab Majumdar.   

 

Brazil Proposes REACH-Like Chemical Regulation: Brazil’s Ministry of Environment (MMA) and the National Chemical Safety Commission (CONASQ) have released a draft regulation modeled on the EU’s REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals) framework, now open for public consultation through June 13. The proposed rule outlines how and when polymers will be regulated; how substances will be prioritized for risk assessments; how Confidential Business Information (CBI) will be defined and protected; how exempt “products” will be identified; the structure and responsibilities of new sub-agencies tasked with implementing the system; and deadlines established under Law No. 15.022/2024. The regulation could have broad implications for companies manufacturing or importing chemical substances in Brazil, including electronics manufacturers and suppliers. IPC is reviewing the draft and encourages members with interests in Brazil to engage in the consultation process. IPC Contact: Diana Radovan.

EPA Delays PFAS Reporting Deadline Under TSCA: The U.S. Environmental Protection Agency (EPA) has extended the reporting deadline under TSCA Section 8(a)(7) for companies that manufactured or imported per- and polyfluoroalkyl substances (PFAS) between 2011 and 2022. The interim final rule, effective May 13, 2025, grants a nine-month extension to allow time for developing and testing the required reporting software. Most manufacturers must now submit data by October 13, 2026, while small article importers have until April 13, 2027. Public comments on the extension can be submitted until June 12, 2025. IPC is monitoring the implications of this rule for the electronics industry and encourages your company to review the updated requirements. IPC Contact: Diana Radovan.

 

Tokyo Roundtable on Trade and Tech Innovation, Tokyo, May 21: IPC President and CEO John Mitchell will convene leading industry executives in Tokyo for a roundtable focused on the intersection of global trade and technology innovation. Featured participants include IPC’s Matt Kelly and Chris Mitchell and former LDP Secretary General Akira Amari. IPC Contact: Yusaku Kono.

EMS Advocacy Day & Public Policy Roundtable, Washington, D.C., June 11: If you’re a leader in EMS, join your peers to discuss and advocate on the industry's most pressing challenges and opportunities. Attendees will hear from congressional staff and agency officials, share their perspectives on key issues, and help shape IPC’s advocacy strategy moving forward. Space is limited, so early registration is encouraged. Learn more and register here.

 

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IPC President and CEO John W. Mitchell applauds tax reform legislation moving through the U.S. House