Dear IPC Members:

This week’s IPC Global Advocacy Report is headlined by the latest news on supply chain concerns here in the United States, where IPC is making the case that the entire electronics ecosystem must be boosted if the semiconductor supply chain is to be boosted. 

Fifty-seven industry CEOs signed on to our latest letter to U.S. President Joe Biden and Commerce Secretary Gina Raimondo, who hosted a “semiconductor supply summit” yesterday. The letter also spelled out seven specific action items the Biden administration should consider to put U.S. electronics manufacturing on a stronger long-term foundation.

Electronics manufacturers are critical to the economic recovery and long-term prosperity of the United States and the world. We’re proud of the work you do to keep the economy running.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

IPC Urges Biden Administration to Bolster Entire Electronics Supply Chain: IPC sent a letter Thursday to the Biden administration, outlining how investing in semiconductors to revive U.S. technology leadership, without taking a holistic approach to the entire electronics supply chain, will allow other nations to dominate one of the world’s most critical industries. The 57-CEO letter was sent on the morning of a semiconductor supply chain summit convened by U.S. Commerce Secretary Gina Raimondo, where the focus was expected to be on chip manufacturers and U.S. automakers. Read the full letter, complete with new policy recommendations for rejuvenating U.S. electronics manufacturing, here. IPC Contact: Chris Mitchell.

White House Endorses Bipartisan Tech Bill, as Debate Begins in Senate: A bipartisan bill to bolster U.S. technology leadership and competitiveness moved to the Senate floor this week. The Endless Frontier Act, which would boost investment in key technology research and development, would also create a White House office of manufacturing and industrial innovation policy – an IPC policy priority. The White House also came out in support of the bill on Monday, with the Senate aiming for passage by June. However, the bill does not specify electronics as an area for more investment, and we are working to fix that. Read more about the bill here. We will keep you updated as the debate continues. IPC Contact: Ken Schramko.
 
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 next Friday, 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.

QUOTE OF THE WEEK

“We urge you to address a fundamental mistake that has characterized U.S. technology policy for more than 30 years: the idea that the United States can be a technology leader by designing electronic products that we cannot manufacture. This notion has diminished U.S. technological leadership and threatens to compromise our shared vision for the United States to reassert manufacturing leadership, including a robust semiconductor supply chain.”
–  In an IPC initiative, 57 industry CEOs urged U.S. President Joe Biden and Commerce Secretary Gina Raimondo to bolster U.S. electronics manufacturing amid a semiconductor supply chain summit held Thursday.

EDUCATION AND WORKFORCE

ICYMI: Bipartisan Bill Introduced to Help Workers Access Skills Training: U.S. Senators Amy Klobuchar (D-MN) and Ben Sasse (R-NE) recently introduced legislation called the Skills Renewal Act, which would create a tax credit of $4000 per person for unemployed workers that could be used to offset the cost of training programs such as apprenticeship and certification programs. An amendment proposed by the Professional Certification Coalition would ensure that the tax credit is available for use with association certification programs. IPC welcomes the opportunity to work with policy makers to improve and expand industry-led education, certification, and training programs. IPC Contact: Ken Schramko.

ENVIRONMENT, HEALTH AND SAFETY

Electronics Industry Submits Comments on EPA’s PIP (3:1) Regulation: On May 17, IPC and other industry groups submitted comments in response to the U.S. Environmental Protection Agency’s (EPA) final risk-management rules for phenol, isopropylated, phosphate (3:1) (PIP (3:1)). PIP (3:1) has a history of use in electronics, and our industry needs a reasonable period of time to comply and to transition to alternatives. Our input will help ensure that the EPA will create realistic risk management strategies. Please read our full comments here, and let us know if you have any questions. IPC Contact: Kelly Scanlon.

Uncertainty Over OSHA Emergency Standard on COVID-19: 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 (OMB) for final review. But since then, the Center for Disease Control and Prevention (CDC) and most states have lifted their mask mandates as the risk level continues to fall. The timing for the review is unclear, but if and when the ETS is released, it is expected to take effect immediately. IPC Contact: Kelly Scanlon.

European Sustainable Governance Proposal Delayed: The European Commission’s Sustainable Corporate Governance (SCG) proposal is expected to be delayed due to ongoing revisions on the legislation’s impact assessment. As a reminder, the SCG proposal will outline mandatory environmental and human rights due diligence rules for all companies operating within the European Union. Originally slated for June, the proposal is now expected in the second half of 2020. IPC will continue to track and advocate for a reporting and regulatory environment that is workable for electronics manufacturers. Please let us know if you have any questions or suggestions. IPC Contact: Alison James.

EC Aspires for Zero Pollution by 2050: On May 12, the European Commission released a comprehensive action plan aimed at reaching “zero pollution for air, water, and soil” by 2050. The plan integrated goals of the Chemicals Strategy for Sustainability, along with other European Green Deal initiatives, and emphasized using digital tools to prevent pollution. The plan notably focused on strengthening enforcement efforts to ensure compliance and set 2030 targets to speed up pollution reduction. Please let us know if you have any questions or suggestions. IPC Contact: Kelly Scanlon. 

ECHA Recommends Seven New Substances for REACH Authorization: The European Chemicals Agency (ECHA) has recommended that seven substances of very high concern (SVHC) be added to the REACH Authorization List, with six of the substances relevant to electronics. As a reminder, companies will need to apply for authorization to continue using these chemicals. IPC encourages companies to identify essential uses of these substances in their electronics manufacturing processes and products and prepare for possible authorization activities. 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 of Chemicals (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 or input. IPC Contact: Kelly Scanlon.

EC Opens Consultation on Sustainable Products Initiative: The European Commission 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.
 
India Nears Completion of Major Chemical Regulation: India is nearing completion of new European-style regulations on chemical substances that would likely affect those in the electronics sector. A final draft of India’s Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) rule – similar to the European Union’s REACH regulation – will be released later this year. Under the rule, existing and new chemical substances manufactured, imported, or used within India will be required to be notified, registered, and reported under certain circumstances by manufacturers and importers, or authorized representatives (AR). Read more about India’s upcoming chemicals legislation in a new IPC blog here; please let us know if you have any questions. IPC Contact: Kelly Scanlon. 

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. 

TRADE AND SUPPLY CHAIN

U.S. and EU to Begin Discussions on Relieving Aluminum Tariffs: The U.S. and the European Union will seek to resolve a tariff dispute originating from President Donald Trump’s 2018 tariffs on steel and aluminum. U.S. and European trade representatives said they were looking “to find solutions before the end of the year,” CNBC reports. Please let us know if the removal of these tariffs will affect your company. IPC Contact: Chris Mitchell.

IPC’s Latest Economic Trends Report: “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.” 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 Monthly Economic Outlook Report. Please let us know if you have any questions. IPC Contact: Shawn DuBravac.

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.

China's MEE Order 12: An Update for the Electronics Industry: Virtual, May 26. Register for this upcoming Chemical Watch webinar to hear from experts from IPC and Mayer Brown on the latest updates to China’s revised MEE Order 12 regulation, its legal implications, and potential impacts on the electronics industry. IPC Contact: Kelly Scanlon.

Leveraging USG Trade Assets for Sales Support: Virtual, June 2. Bryan Erwin, former Director of the Trade Advocacy Center in the Obama Administration, Founder/Managing Partner at BlueWave Merchant Partners, and member of IPC’s Thought Leaders program, will provide information on how best to leverage U.S. Government assets to augment your company’s sales. IPC Contact: Chris Mitchell.

Supply Chain Disruption, Economic Recovery, and What to Expect in the Post-Pandemic World: Virtual, June 8. COVID-19 disrupted nearly every facet of our lives, ushering in a severe recession and exerting tremendous pressure on supply chains. Discover how supply chains have been impacted and what lies ahead in the recovery as IPC Chief Economist Shawn DuBravac shares the latest economic data, risks, and possible scenarios for 2021 and beyond. IPC Contact: Shawn DuBravac.

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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