Dear IPC Members:

From all of us here at IPC, we thank you for your participation last week in our first virtual IPC APEX EXPO. Please check out my summary coming soon in I-Connect007. From my perspective, APEX exemplified how the electronics industry has responded to the coronavirus pandemic: with resiliency, agility, and an unwavering commitment to build electronics better. All conference content is available online through June 13.

Meanwhile, we’re now over one year into the Coronavirus pandemic. How is your company faring? Are you feeling optimistic for the year ahead? Let us know how the pandemic is affecting your current and future outlook. 

This week’s newsletter is packed with information about the many government policy issues that we are engaged in on your behalf, plus fresh opportunities to share your opinions and expertise with policy makers. Please let us know if you have any questions or suggestions for IPC advocacy.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

IPC Urges “Holistic Approach” to Electronics Supply Chains: U.S. President Joe Biden on February 24 ordered a 100-day review of the global supply chain for items including semiconductor chips and critical minerals used in electronics. IPC supports this review and urges the Biden administration to take a holistic approach, not just focusing on a few links in the supply chain. IPC is preparing to submit comments to the U.S. Department of Commerce; let us know if you have any input. IPC Contact: Chris Mitchell.

IPC Outlines Policy Priorities Linking “Build Electronics Better” to Biden’s “Build Back Better”: IPC recently sent a letter to U.S. President Joe Biden outlining a comprehensive policy agenda to ensure the long-term growth and resilience of electronics manufacturing. In its breadth and detail, this letter is a new landmark in IPC advocacy, reflecting the many ways our industry is influenced by government action. IPC welcomes the opportunity to work with the Biden administration, just as we have done with every new administration. Read the letter and then click here to send IPC’s policy agenda to your elected officials! IPC Contact: Chris Mitchell.

QUOTE OF THE WEEK

“Steady and consistent progress will continue only if EPA, industry, and others commit to it; view each other as partners with shared goals; and cooperate to reach milestones. Rigorous and transparent science is the foundation for a healthier environment.” - An IPC-signed letter to the U.S. Environmental Protection Agency (EPA) calling for partnership, not conflict, with industry.

IPC ADVOCACY AND YOU

Help Shape Factory of the Future Migration: IPC is inviting your participation in a new U.S. working group that will help prepare a policy roadmap for the Factory of the Future. The group will develop a white paper identifying policy measures that the U.S. Government can implement to support the electronics industry’s migration to factories of the future, to be used by IPC to promote legislative and regulatory proposals. Let us know if you would like to join and participate. IPC Contact: Ken Schramko.

IPC Launches Program to Enhance Awareness and Insights on Industry Trends: IPC last week unveiled a new Thought Leaders Program in which industry experts will assist IPC on key industry issues and offer valuable insights to IPC members. One of the program’s first projects will be a report on the U.S. Department of Defense’s (DoD) Cybersecurity Maturity Model Certification (CMMC) program, an ambitious effort to better protect the cyber security of the defense industrial base. Learn more about the IPC Thought Leaders Program here. IPC Contact: Chris Mitchell.

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.

DEFENSE AND SECURITY

IPC Advocates for Funding Lead-Free Defense Electronics: IPC, along with academic and industry partners, is requesting a five-year, $40 million research and development (R&D) program to reduce U.S. Department of Defense (DoD) reliance on lead-based electronics. The U.S. Congress allocated $5 million for this project in FY 2020, and the DoD awarded most of the funding to the U.S. Partnership for Assured Electronics (USPAE), which will coordinate the R&D program through the new Defense Electronics Consortium (DEC). Learn more and explore the opportunities here, and follow USPAE on LinkedIn.

U.S. Senate to Consider Legislation on Domestic Technological Innovation: The U.S. Senate is preparing major legislation aimed at boosting U.S. technological innovation, addressing the global chip shortage, and bolstering U.S. competitiveness with China in critical technology sectors. The legislative package may also include funding for the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, which was enacted into law as part of the FY 2021 National Defense Authorization Act (NDAA). We’ll keep you posted as IPC engages with Congress to promote the needs of the electronics manufacturing industry. IPC Contact: Chris Mitchell.

ENVIRONMENT, HEALTH AND SAFETY

IPC Urges EPA to Promote Partnership with Industry: IPC and other industry groups last week called on the new head of the U.S. Environmental Protection Agency (EPA), Michael Regan, to promote partnership, transparency, and rigorous science in the ongoing Toxic Substance Control Act (TSCA) regulatory process. IPC looks forward to working with the EPA to protect human health and the environment through industry best practices and data-driven regulations, while enabling our industry to continue to innovate, create jobs, and grow the economy. Read the full letter here. IPC Contact: Kelly Scanlon.

Your Feedback Needed on PBT Rules: On March 16, the U.S. Environmental Protection Agency (EPA) opened a 60-day comment period on the final risk-management rules for phenol, isopropylated, phosphate (3:1) – PIP (3:1) for short – and four other persistent, bioaccumulative, and toxic (PBT) chemicals. PIP (3:1) in particular has a history of use in electronics. IPC is working with other industry groups to respond to EPA’s request for information on usage of the PBTs, with special emphasis on PIP (3:1). Without industry input, the EPA will be unable to create realistic risk management strategies. Please help us help you by reading this updated IPC blog and responding to our survey by April 16. IPC Contact: Kelly Scanlon.

IPC Launches Industry Initiative to Provide Guidance on ESG Practices: On March 8, IPC launched a new initiative with leaders from across the electronics industry to develop guidance on an industry-specific approach to environmental, social and governance (ESG) practices. The ESG for Electronics Initiative will work to support industry engagement on a range of societal concerns, including circularity, eco-design, and raw materials management. View more information on the initiative here. IPC Contact: Chris Mitchell.

Comment Period Extended for TSCA Fees Rule: The U.S. Environmental Protection Agency’s (EPA) proposed "Fees Rule" under the Toxic Substances Control Act (TSCA) could have financial impacts on your company. The EPA has extended the comment period through March 27. IPC has been advocating for commonsense reforms to the 2018 rule, and we are pleased that the new proposed rule appears to make important and positive changes. Check out this IPC blog for the latest on the Fees Rule, and let us know if you have any questions or input. IPC Contact: Kelly Scanlon.

Technical Issues Delay SCIP Database Data Availability: The European Chemicals Agency (ECHA) recently announced that technical issues will delay the results of the Substances of Concern in Products (SCIP) database. As a reminder, this obligation applies to all companies placing articles containing substances of very high concern on the European Union market. Check out this IPC SCIP Database resource page for more information, and let us know if you have any questions. IPC Contact: Kelly Scanlon.

EC Opens Consultation on Sustainable Products Initiative: The European Commission recently opened a public consultation on its Sustainable Products Initiative, and your input is needed. The initiative will revise the Ecodesign Directive and address the presence of harmful chemicals in electronics and ICT equipment, among other products. The consultation runs through June 9. IPC’s advocacy team is interested in hearing from you about this initiative. IPC Contact: Alison James.

EU Parliament Calls for Carbon Border Levy to Mirror ETS: On March 9, the European Parliament adopted a report calling for a Carbon Border Adjustment Mechanism (CBAM) that mirrors the cost paid by European producers under the European Union’s Emissions Trading System (ETS). The report confirmed that the CBAM, which would implement a levy on carbon-intensive products imported into Europe, must be World Trade Organization-compatible; must advance climate objectives; and must not be “misused as a tool to enhance protectionism." The European Commission will present a proposal on the CBAM in June as part of a broader package of climate laws. IPC Contact: Alison James.

EU Council Adopts Conclusions on Chemicals Strategy: On March 15, the European Council adopted new conclusions on the Chemicals Strategy for Sustainability, affirming Europe’s vision to achieve a toxic-free environment with a “high level of protection of human health and the environment.” Notably, the council’s conclusions supported a targeted reopening of the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) law and a review of the definition of nanomaterials. The council also called for "further measures to complement the anticipated per- and polyfluoroalkyl substances (PFAS) restriction proposal.” IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

IPC Communicates the Importance of Electronics Manufacturing in Senate Hearing: IPC expressed the importance of the electronics manufacturing industry in a U.S. Senate Finance Committee hearing held this week on domestic manufacturing. In a letter submitted for the record, IPC said the U.S. Government should adopt a coordinated vision for the future of manufacturing and leverage the U.S. tax code to support that vision. IPC does not anticipate Congress will act on any standalone tax legislation in 2021 or 2022, but Democrats are laying the groundwork for tax reforms in the future, and a tax hike could be included in the infrastructure bill currently being developed. IPC will remain engaged in the debate and will keep you informed. IPC Contact: Ken Schramko.

U.S. and China Hold Two-Day Diplomacy Talks: Senior U.S. and Chinese officials met for the first time under the Biden administration this week as the U.S. seeks to ensure “that China does not gain a permanent advantage in critical technologies,” The New York Times reports. Both countries are seeking to gain an edge in sectors like semiconductors, artificial intelligence (AI), and energy. We anticipate a continuing focus on government investment in research and development (R&D) in these sectors. IPC Contact: Chris Mitchell.

Senate Confirms Katherine Tai as Next USTR: IPC welcomes the U.S. Senate’s bipartisan confirmation of Katherine Tai to be the next U.S. Trade Representative (USTR). The daughter of immigrants from Taiwan, she has deep experience in international trade. Her priorities include U.S. workers, trade enforcement, and relations with China, Europe, Canada, and Mexico. IPC Contact: Chris Mitchell.

EC Roadmap Outlines Plan to Bolster Europe’s Electronics Capabilities: The European Commission recently adopted a communication presenting its vision and targets for Europe's digital transformation. The plan, called a Digital Compass, aims to strengthen the bloc’s “open strategic autonomy” by 2030 and includes targets like producing 20% of global “next-generation” semiconductors by the end of the decade. The plan also aims to improve the European Union’s capabilities in electronics design and other electronic components needed to power its digital infrastructure. IPC Contact: Alison James.

UPCOMING EVENTS

Critical Environmental Requirements for Electronics Conference: Virtual, June 29. Join the world’s leading environmental regulatory experts at IPC and ITI’s upcoming conference on critical environmental requirements for electronics. Stay updated on the latest environmental requirements, like Restriction of Hazardous Substances (RoHS), Toxic Substances Control Act (TSCA), and more, that could impact your product’s design, manufacturing, supply chain management, and technology innovation. IPC Contact: Kelly Scanlon.

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