Dear IPC Members:

I hope this newsletter finds you and yours doing well.

The global economiccheck ou recovery from COVID-19 continues with varying success. Check out IPC’s latest monthly economic report below, and let us know how the pandemic is affecting your business’s outlook.

With global COVID-19 recovery plans in the works, now is a good time, if you haven't already, to get involved with IPC advocacy. By sharing your voice and expertise, you help ensure that the electronics manufacturing industry’s voice is accounted for in the legislative process. For more information on how to get involved, please visit our Advocacy Center.

Please enjoy this week’s five-minute snapshot of the top issues we’re working on for you all over the world, and let us know if you have questions or suggestions.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

Help Shape IPC’s EHS Advocacy Activities in 2021: Did you know that IPC members have several opportunities to participate in policy debates about environment, health, and safety (EHS) issues? For example, IPC’s environmental policy priorities for 2021 were determined with input from our recently formed Environment & Health Strategic Management Team (ENV SMT) and IPC’s North American and European Government Relations (GR) Committees. IPC appreciates the time taken by volunteers to get engaged with IPC’s GR activities. Check out a new article in SMT007 by Kelly Scanlon, IPC director of EHS policy and research, for more ways to get involved in IPC’s EHS advocacy. IPC Contact: Kelly Scanlon.

IPC’s Latest Economic Trends Report: “Look for the upward trend in industrial production to continue as the economy further reopens and production ramps to satisfy demand.” IPC Chief Economist Shawn DuBravac shares the latest U.S. and European data on economic growth, employment, Manufacturer’s Sentiment (PMI), manufacturing capacity utilization, and end markets for electronics in IPC’s April Economic Outlook Report. Please let us know if you have any questions. IPC Contact: Shawn DuBravac.

QUOTE OF THE WEEK

“The global economic recovery is picking up speed... consumer and business confidence is roaring back, as vaccination rates increase, and consumers appear anxious to spend. The United States is set to grow 6.3 percent during the year.”
– IPC Chief Economist Shawn DuBravac in the latest IPC Economic Outlook.

DEFENSE AND SECURITY

PCB Security at Heart of New Defense Legislation: Last week, a bill was introduced in the U.S. Senate to protect against vulnerabilities in printed circuit boards (PCBs) that are made in China and used throughout the U.S. military. The legislation, introduced by Senator Josh Hawley (R-MO) and called The PCBETTER Act, aims to help secure military PCB supply chains by authorizing a ten-year fund to strengthen microelectronics manufacturing and support implementation of critical supply chain security initiatives, among other highlights. I recently spoke to Defense News about this issue. IPC will keep you updated as we learn more details on this bill. IPC Contact: Chris Mitchell.

Major Defense Bill Postponed Due to Budget Delay: The annual defense authorization bill will now be considered by the U.S. Senate Armed Services Committee (SASC) in July, a delay of at least a month, due to the uncertain timing of the Biden administration’s FY 2022 budget. The administration outlined $715 billion in defense spending in the “skinny budget” released April 9 “but has yet to provide lawmakers with a detailed accounting of how the money will be spent,” Defense News reports. IPC Contact: Chris Mitchell.

ENVIRONMENT, HEALTH AND SAFETY

Share Your Input on Additions to EPA’s Priority Testing List: An advisory committee to the U.S. Environmental Protection Agency (EPA) has recommended adding 15 Toxic Substances Control Act (TSCA) high-priority substances and 24 organohalogen flame retardants to the agency’s Priority Testing List (PTL). Several of the high-priority substances, such as phthalates, formaldehyde, and Tetrabromobisphenol A (TBBPA), are used in electronics. The deadline for submitting comments on these revisions is May 28. Your responses will help the EPA determine whether these substances present unreasonable risk of injury to health or the environment. IPC Contact: Kelly Scanlon.

OSHA Emergency Standard on COVID-19 Expected Soon: On April 26, the U.S. Occupational Safety and Health Administration (OSHA) sent its Emergency Temporary Standard (ETS) for COVID-19 to the White House Office of Management and Budget for final review. The ETS, which will address workplace exposures to COVID-19, is a separate effort from other OSHA regulatory activity, such as its new COVID-19 National Emphasis Program (NEP). The timing for the review is unclear, but if and when the ETS is released, it is expected to take effect immediately. Read more about the ETS in an IPC blog here. IPC Contact: Kelly Scanlon.

EC Asks for Feedback on Revisions to Chemical Regulations: The European Commission is asking for feedback on proposed revisions to two chemicals regulations: the Registration, Evaluation, Authorization and Restriction (REACH) law and the Classification, Labelling and Packaging (CLP) regulation. The REACH revision is particularly relevant to electronics as it proposes simplifying supply chain communications and reforming processes for the authorization and restriction of chemicals. Feedback is due by June 1; let us know if you have any questions. IPC Contact: Kelly Scanlon.

EC Leaps Forward in Sustainability Reporting Requirements: The European Commission on April 21 took a leap forward in strengthening sustainability reporting for companies through the adoption of a proposal for a Corporate Sustainability Reporting Directive (CSRD). The proposal confirms the upcoming introduction of European Sustainability Reporting Standards (ESRS) and comes as part of a broad package of initiatives on sustainable finance. IPC will continue to track and advocate for a reporting environment that is workable for electronics manufacturers. Read more about the CSRD and the implications for our industry in a new IPC blog here, and please let us know if you have any questions or suggestions. IPC Contact: Alison James.

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 and expand 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.
 
Japan to Ban PFOA and its Salts: Japan has formally banned the production, import, and use of perfluorooctanoic acid (PFOA) and its salts, which could affect products used in semiconductor manufacturing. Prior permission for essential uses of these chemical substances is required, while all other uses are prohibited. The ban will take effect on October 22. You can find which PFOA-containing products are banned from import here. Please let us know if this move affects your business. IPC Contact: Kelly Scanlon.

Interested in Chemical and Product Regulations in South Korea? South Korea is the latest country to undergo an updated deep dive by our environmental, health, and safety (EHS) experts in 2021. Notably, an amendment of the Act on the Registration and Evaluation of Chemicals (K-REACH) was recently adopted, tightening the supervision of downstream users and sellers of chemical substances. This is just one of our nine white papers on the history of chemical regulations, current regulatory systems, and anticipated trends in the Asia-Pacific region. Let us know if you have any questions or concerns. IPC Contact: Kelly Scanlon.

TRADE AND SUPPLY CHAIN

IPC Urges Focus on Electronics Manufacturing in Bipartisan Tech Bill: A bipartisan bill was reintroduced recently in the U.S. Congress to bolster U.S. global leadership and competitiveness. IPC supports the Endless Frontier Act, which will invest in key technologies that are critical to U.S. national security and economic competitiveness. Electronics manufacturing applies to many of the key technology areas identified in the bill, and IPC is urging Congress to take a holistic approach and consider the entire electronics manufacturing industry when considering new research investments, not just focusing on a few sectors. A mark-up hearing is expected as soon as next week. Read more about the bill here and here. We will keep you updated as the bill progresses. IPC Contact: Ken Schramko.
 
EU Strategic Autonomy at Core of Updated Industrial Strategy: This week, the European Commission released its updated Industrial Strategy, and Europe’s “strategic autonomy” was a principal focus. The strategy, updated to reflect COVID-19's effect on Europe’s economy and supply chains, highlighted the European Union’s reliance on other countries for products “used in sensitive ecosystems” like raw materials and semiconductors, Reuters reports. IPC welcomes the emphasis on striking a balance between a market that is open for trade and investment and one that protects European interests in strategic areas. IPC will analyze the strategy and looks forward to sharing recommendations from our recent report on European electronics manufacturing with the commission. IPC Contact: Alison James.

Global Chip Shortage Continues: “Demand for chips is continuing to outstrip supply, and car makers are no longer the only companies feeling the pinch,” CNBC reports. However, Taiwan Semiconductor Manufacturing Company (TSMC) struck a positive tone saying it aims to catch up with auto demand by June. IPC continues to warn that the crippling shortage of semiconductor chips underscores the economic and national security importance of restoring U.S. leadership in electronics manufacturing. Let us know how the chip shortage is affecting your business. IPC Contact: Chris Mitchell.

UPCOMING EVENTS

What are the Best Practices for Eco-design? Virtual, May 25. Join the International Electronics Manufacturing Initiative (iNEMI) for an upcoming webinar series on eco-design for a circular electronics economy. The series will be your opportunity to learn from eco-design leaders about innovative practices used today while providing a venue to share your expertise and to learn from others. Registration information will be announced next week. IPC Contact: Kelly Scanlon.

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.

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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