Dear IPC Members:

This weekly newsletter is a snapshot of the top issues we’re working on for you all over the world. Please let us know if you have questions and suggestions.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP OF THE WEEK

IPC Needs You In Washington, March 25-26: IPC is calling on all member-company senior-level executives to participate in IPC’s signature advocacy event, IMPACT Washington, D.C. 2020, coming up on March 25-26 in Washington, D.C. Join with industry leaders in advocating for U.S. Government policies to support electronics manufacturing and reliability. Policymakers want to hear from you, their constituents, about the decisions they make that affect your business. Don’t worry if you have never attended IMPACT or engaged in advocacy before; the IPC Government Relations team will be on-hand to support you throughout the event. Contact Ken Schramko if you have questions, or click here to register!
 
Which Government Policy Issues Give You the Most Pain? IPC conducts an ongoing member survey about the government policy issues that concern you most and how they impact your company. Dozens of members took the survey while at IPC APEX EXPO, and here are the updated survey results. When asking our members to identify their top areas of concern, a majority mentioned trade and tariffs (54 percent). A second tier of top issues are education and workforce skills (35 percent); incentives for research, development, and investment (35 percent); intellectual property protection (30 percent); taxes (27 percent); and environmental regulations (27 percent). Which government policy issues matter the most to you? Simply click here to take our five-minute survey.

Top Takeaways from IPC APEX EXPO 2020: Before IPC APEX EXPO 2020 fades away in the rearview mirror, here are my seven top takeaways as featured in the I-Connect007 Show & Tell Magazine. If you were unable to be at APEX this year, check out their in-depth coverage. Hope to see everyone in San Diego again in 2021! IPC Contact: Chris Mitchell.

IPC ADVOCACY AND YOU

IPC Pursuing Continued Funding for Pb-free Electronics Research: Late last year, IPC was successful in securing federal funding in Fiscal 2020 for research into lead-free electronics in high-performance missions. As a result of advocacy by IPC and its partners, the U.S. Congress appropriated $5 million to restart Pb-free research under the auspices of the U.S. Department of Defense. The funding is a positive step, showing that the U.S. Government recognizes the need to close the knowledge gap concerning the reliability of Pb-free alternatives in aerospace and defense electronics. We believe that a five-year, $40 million investment in a public-private R&D program would yield more than $100 million in U.S. defense savings per year and improve military readiness and overall innovation. If your company would like to join the consortium that is working to secure funding for Pb-free R&D in Fiscal 2021, please contact Ken Schramko. 

DEFENSE

Trump Proposes Budget Increases for Major Defense Systems: Last week, President Trump unveiled his $705.4 billion budget for the U.S. military, seeking to boost funding for nuclear weapons systems, F-35 Jets, submarines, and intercontinental ballistic missiles. The budget would also increase funding for the new Space Force, as well as for research and development of “crucial” technologies. According to Bloomberg Government, the House Armed Services Committee will mark-up the Fiscal 2021 defense authorization bill on April 29, and the Senate Armed Services Committee will consider the bill on May 18-22. Stay tuned for further developments regarding defense industrial base issues and let us know about the U.S. defense programs of greatest interest to you. IPC Contact: Chris Mitchell.

ENVIRONMENT, HEALTH AND SAFETY

TTM Technologies Recognized for Reductions in Toxic Emissions: On February 11, TTM Technologies was recognized by the U.S. Environmental Protection Agency (EPA) Regional Administrator and the Region 3 Director for Land, Chemicals, and Redevelopment for implementing new source-reduction activities and reducing air and water emissions. Across the United States, TTM is investing their capital and engineering intelligence into designing, fabricating, and installing new Ion Exchange (IX) wastewater treatment systems. In 2019, the Sterling, VA facility’s IX system came online, and it is expected that this will further reduce their water footprint through increased capacity and improved metal recovery efficiency. IPC worked with the Sterling facility staff to host the EPA’s Smart Sectors Program and Toxic Substances Control Act (TSCA) staff for a tour of the new IX system in July 2019. We look forward to TTMs continuing efforts to advance its sustainability goals. IPC Contact: Kelly Scanlon.

European Parliament Objects to Commission’s Proposal on Lead Restriction: In July 2019, the European Commission proposed to eliminate lead from both EU-made and imported PVC products. However, the proposal included a provision allowing up to 20 times more lead in recycled PVC (0.1 percent for new materials and up to 2.0 percent for recycled materials). On February 12, Members of the European Parliament vetoed the proposal, with opponents saying the Commission’s proposal was not compatible with REACH regulations and could prolong and enhance people’s exposure to lead. Following the objection, the commission is set to revisit the proposal in the future. IPC Contact: Alison James.

New Fees May Be Coming Under TSCA: Manufacturers and importers of chemical substances designated as High Priority Substances under the U.S. Toxic Substances Control Act (TSCA) may be subject to new fee obligations. The fees are associated with each U.S. EPA-initiated risk evaluation for each of the 20 HP Substances. The EPA has opened a 60-day comment period during which the public has the opportunity to review preliminary lists of manufacturers and importers of the chemicals and to self-identify irrespective if they are on the lists. The preliminary lists were developed using the most up-to-date information available, including information submitted to the EPA under the Chemical Data Reporting Rule and the Toxics Release Inventory. For more information, please see the final fees rule or participate in an EPA conference call on February 24. If you would like to comment on preliminary lists, please contact Kelly Scanlon.

Does Your Company Use Engineered Nanomaterials? The U.S. National Institute for Occupational Safety and Health (NIOSH) of the Centers for Disease Control and Prevention (CDC) intends to evaluate the scientific data on engineered nanomaterials to develop recommended occupational exposure limits based on the available scientific evidence. NIOSH is seeking materials, including published and unpublished reports and research findings, to evaluate the possible adverse health risks of occupational exposure to engineered nanomaterials. If you would like to share information with NIOSH or with us, please contact Kelly Scanlon.

Learn How to Register Nanoforms under REACH: The European Chemicals Agency is hosting a free webinar on February 24 on how to have a registration compliant with REACH requirements for those who manufacture or import nanoforms of substances within the scope of REACH. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

EU Unveils Consultation on AI and Data Strategy: This week, the European Commission launched a consultation to define future approaches to Artificial Intelligence (AI) aimed at boosting the region’s development and use while mitigating the risks. This approach provides potential opportunities through increases in research and development funding to boost the market and future development of AI, and access to knowledge and resources to assist uptake by small and medium-sized enterprises (SMEs). The future regulatory framework for AI will focus on the different types of mandatory legal requirements to be imposed on the relevant actors, which may be further specified by the use of standards.

The AI Strategy is interlinked with the European Union’s Data Strategy with the goal of increasing data sharing. Currently, the EU’s strategy is to provide incentives for horizontal data, facilitating voluntary data sharing rather than mandating it. Generally, companies have an interest to gain access to a larger data pool to increase the access and quality of AI. However, the fear of antitrust implications will need to be mitigated by cooperation between industries and institutions. The new AI and Data Strategy presents both risks and opportunities for our industry, so it’s crucial to engage and obtain the right framework going forward, as the potential for growth is unprecedented. IPC Contact: Alison James.

TRADE

EU27 Fail to Agree on Brexit Trade Talks Mandate: On February 12, European Union countries failed to agree on the draft mandate for trade negotiations with the United Kingdom. However, the goal remains for the updated mandate to be adopted by ministers at the General Affairs Council on February 25, after which the EU can start negotiating with the U.K. over their future trade relationship. A unanimous decision by the EU27 is needed to approve the negotiating mandate, meaning any EU Member State has the option of vetoing a future deal. IPC Contact: Alison James.
 
Next Steps in U.S. Dispute with EU over Airbus Subsidies: On February 15, the U.S. Trade Representative (USTR) announced how they will proceed with a round of “carousel” tariffs resulting from the World Trade Organization’s Airbus investigation. Carousel tariffs are levied on a shifting set of products, increasing uncertainties on the receiving country. Under the USTR plan, tariffs levied on Airbus aircraft would rise from 10 percent to 15 percent, while virtually all other tariff levels would remain the same at 25 percent. Since USTR has chosen to approach the Airbus tariffs with a carousel, there may be adjustments in the coming months. More details can be found here. We will continue to keep you informed. IPC Contact: Chris Mitchell.

UPCOMING EVENTS

IMPACT Washington, D.C.: March 25-26, 2020. This is IPC’s signature U.S. advocacy event, providing opportunities for members to educate policy makers on the issues that affect them most. Please learn more and plan on joining us in DC! IPC Contact: Chris Mitchell.

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