Dear IPC Members:

On the front burner in our D.C. office this week, IPC is engaging in the policy debate over bolstering U.S. manufacturing and increasing American competitiveness. Check out our statement on the Biden administration's 100-day supply chain review, as well as “The Biden Administration Can Help Fix America’s Manufacturing Woes,” a recent op-ed from IPC President & CEO John Mitchell. Let us know what you think about these issues.  

This week also marked the release of an IPC report on the U.S. Defense Department's (DoD) Cybersecurity Maturity Model Certification (CMMC), which is imposing significant costs and burdens on IPC members.   
 
Meanwhile, on the environment and health front, we are also tracking the long-awaited U.S. Occupational Safety and Health Administration (OSHA) Emergency Temporary Standard (ETS) for protecting workers from COVID-19, which was released this week. If your responsibilities include environmental, health and safety protection, don’t miss the IPC-ITI upcoming conference on critical environmental requirements for electronics manufacturers.

And do you have any input or questions on what government should be doing to support the industry’s long-term growth and evolution? Let us know, and we’ll answer your most interesting questions in future editions of IPC Global Advocacy Report.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

Senate Passes Bipartisan Tech and Competitiveness Bill: The U.S. Senate passed a wide-ranging, bipartisan bill on Tuesday to bolster U.S. technology leadership and competitiveness against China. The U.S. Innovation and Competition Act, which includes the former Endless Frontier Act, would boost investment in research and development (R&D) in key areas of technology and manufacturing. The bill now moves to the U.S. House of Representatives, where we are working to add language specifically listing electronics manufacturing as a “key technology focus area.” U.S. President Joe Biden said that he hoped to sign the legislation into law “as soon as possible,” The New York Times reports. IPC Contact: Ken Schramko.

IPC Commends Biden Administration on Strategic Supply Chain Review: The Biden administration concluded its 100-day supply chain review this week, and IPC was pleased to see it address the importance of the electronics supply chain. IPC’s recommendations to the administration – many of which were reflected in the documents published this week – were summarized in a recent letter to U.S. Commerce Secretary Gina Raimondo signed by 57 industry leaders. We look forward to working with the Biden administration to revitalize U.S. electronics manufacturing. See our full statement here. IPC Contact: Chris Mitchell.

CMMC Concerns May Force Some Electronics Manufacturers Out of DoD Supply Chain: The U.S. Defense Department's (DoD) Cybersecurity Maturity Model Certification (CMMC) aims to enhance national security, but its costs and burdens are officially under-estimated and could force more electronics manufacturers out of the DoD’s supply chain. Less than half of IPC survey respondents felt they were “very” or “extremely” familiar with CMMC compliance, and 52% said that the DoD has not provided industry with sufficient guidance. Learn more in this new IPC report by Leslie Weinstein of the IPC Thought Leaders Program. IPC Contact: Chris Mitchell.

QUOTE OF THE WEEK

“For far too long, the U.S. Government has neglected its important role in strengthening the nation’s manufacturing base and instead has watched passively as other countries around the world invested in their manufacturing capabilities. ... U.S. electronics manufacturers appreciate the Biden administration’s decision to highlight the longstanding and significant challenges facing the U.S. electronics manufacturing base as a result.”
– IPC President and CEO John Mitchell commends the Biden administration’s supply chain review for emphasizing the importance of the entire electronics manufacturing ecosystem.

ENVIRONMENT & HEALTH

OSHA Releases Emergency Standard on COVID-19: On June 10, the U.S. Occupational Safety and Health Administration (OSHA) released regulatory language for the long-awaited Emergency Temporary Standard (ETS) for COVID-19. The rule – once published in the Federal Register -- will only apply to the healthcare industry and will not apply to manufacturing. In addition to the ETS, OSHA updated its guidance on preventing COVID in the workplace to provide recommendations on protecting unvaccinated workers. The updated guidance is not a standard or regulation and creates no new legal obligations. Please let us know if you have any questions. IPC Contact: Kelly Scanlon.

IPC Provides Industry Input on Sustainable Products Initiative: IPC shared comments this week on the European Commission’s public consultation on its Sustainable Products Initiative, a key component of the European Union’s Circular Economy Action Plan. We believe that any sustainable product legislation should focus on final electronics products with the greatest environmental impacts and the greatest potential for circularity improvements. The initiative will revise and expand the Ecodesign Directive and will address the presence of harmful chemicals in electronics and ICT equipment, among other products. Read our full comments here. IPC Contact: Alison James.

Broad Support for Due Diligence in European Sustainable Governance Proposal: Both businesses and non-governmental organizations (NGO) have welcomed the supply chain due diligence aspect of the European Commission’s Sustainable Corporate Governance (SCG) proposal. However, business associations raised concerns over proposed requirements on directors’ duty of care, which are largely governed by each European Union Member State. Originally slated for June, the SCG proposal is now expected in the second half of 2021. 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.

Germany Adopts Due Diligence Law: On June 11, Germany passed a new supply chain law introducing binding human rights and environmental due diligence obligations for larger companies. The legislation, known as the Supply Chain Act, has been delayed due to concerns over liability mechanisms and the economic impact on businesses bacause it would levy “fines of up to 2% of their annual global turnover if they violate the rules,” Reuters reports. IPC is continuing to engage with European Union policymakers to ensure that any upcoming due diligence legislation is feasible for electronics and minimizes the administrative burden for our member companies. Read more in an IPC blog here. IPC Contact: Alison James.

IPC Submits Feedback on Revisions to REACH Regulation: On June 1, IPC submitted comments to the European Commission on proposed revisions to the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) law. IPC urged the commission to consider revisions in context of ongoing updates to chemical policies, such as the Restriction of Hazardous Substances (RoHS) Directive, and to consider existing materials declarations standards to ensure efficient supply chain communications. Please let us know if you have any further questions or comments. IPC Contact: Kelly Scanlon.

IPC Updates Electronics on China’s MEE Order 12: On May 26, experts from IPC and Mayer Brown presented at a Chemical Watch webinar on the latest updates to China ’s Ministry of Environment and Ecology (MEE) Order 12 regulation, its legal implications, and the potential impacts on the electronics industry. Heng Li, an attorney with Mayer Brown, indicated that we should expect to see more chemical legislation in China “in the near future.” Read IPC’s full recap of the webinar here. Also, check out IPC’s nine white papers on the history of chemical regulations, current regulatory systems, and upcoming trends in the Asia-Pacific region for more information. IPC Contact: Kelly Scanlon.

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.

TRADE AND SUPPLY CHAIN

Biden Administration Expands Ban on Investment in Chinese Companies: A recent Executive Order from U.S. President Joe Biden expanded a Trump-era ban on investing in Chinese companies with ties to the country’s military. The order increased the scope of the ban to include an additional 28 companies, bringing the total to 59 Chinese firms, including “the Semiconductor Manufacturing International Corporation, China’s largest semiconductor manufacturer,” The New York Times reports. The order formally goes into effect on August 2. IPC Contact: Chris Mitchell.

The Biden Administration Can Help Fix America’s Manufacturing Woes: “America, which boasts the most sophisticated electronics manufacturing system globally, has ignored the parts and materials needed for our systems to function for far too long.” IPC President and CEO John Mitchell explains how long-term solutions are needed to address U.S. supply chain and semiconductor issues in his recent opinion piece in EMSNow. IPC Contact: Chris Mitchell.

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.      

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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