Dear IPC Members:

As we begin the second half of the year, it provides us all with a good opportunity to take stock of our goals, hit the refresh button if necessary, and recommit to finishing the year strong. Here at IPC, we are committed to educating policy makers and building stronger support for government policies that enable our industry to thrive.

If you haven’t visited our IPC Advocacy Team page lately, please check it out and follow the links to:

• Tell us which government policies concern you the most;
• Help IPC advocate for its U.S. policy priorities; and
• Read a recent IPC blog on IPC’s government relations (GR) efforts and how you can get involved.

IPC is guided by your perspectives on these issues, and we advocate for a policy environment in which you can prosper. Please send us a message if you have any input or questions on what governments should be doing to support the industry’s long-term growth and evolution. We’ll answer your questions in future editions of IPC Global Advocacy Report.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

“Biden’s Promising Bid for Strong Supply Chains Risks Falling Short”: “Without a robust electronics manufacturing supply chain that supports systems-level manufacturing, the best chips in the world won’t offer the industry the resiliency, security, and innovation the American people want.” IPC President and CEO John Mitchell, in an opinion piece for Roll Call, warned that by focusing solely on the chip shortage, wider problems in U.S. electronics manufacturing are ignored. IPC Contact: Chris Mitchell.

IPC’s Latest Economic Trends Report: The global economic recovery from COVID-19 is accelerating as vaccination rates increase and countries fully open their economies. The global economy is expected to expand by 6.1% in 2021 and a further 4% in 2022, according to IPC Chief Economist Shawn DuBravac. Check out the latest U.S. and European data on economic growth, employment, consumer sentiment, manufacturers’ 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.

New EPA Rule to Require Reporting and Recordkeeping on PFAS: On June 28, the U.S. Environmental Protection Agency (EPA) issued a proposed rule that would require all manufacturers and importers of per- and polyfluoroalkyl substances (PFAS) to report information regarding the “uses, production volumes, disposal, exposures, and hazards” of the chemical substance. PFAS has a history of use in electronics, and IPC will be preparing comments in response to this proposed rule during the 60-day comment period. Please let us know if you have any questions or thoughts about how this will affect your business. IPC Contact: Kelly Scanlon.

QUOTE OF THE WEEK

"Give us one percent of the $50 billion that is going toward microchips, and wonders could happen.”
- Todd Brassard, VP/COO of IPC member company Calumet Electronics, explained to Forbes why the American defense electronics supply chain is in critical need of national attention.

IPC ADVOCACY AND YOU

Help IPC’s Advocacy Team Help You! U.S. members of IPC: Please take a minute to visit our online action center and register to participate in upcoming campaigns to educate the U.S. Congress on our key issues. It’s fast, easy, and important. Thanks! IPC Contact: Ken Schramko.

DEFENSE AND SECURITY

DoD CMMC Review to Address Compliance Cost Concerns: As IPC has urged, compliance costs for small and medium-sized enterprises (SMEs) will be a focal point of the U.S. Defense Department's (DoD) Cybersecurity Maturity Model Certification (CMMC) review, Federal News Network reports. IPC recently made the case in an industry report and provided input to a congressional hearing that CMMC compliance costs could drive many SMEs out of the defense industrial base. Read the full statement on the hearing from IPC President and CEO John Mitchell. IPC Contact: Chris Mitchell.

ENVIRONMENT & HEALTH

EPA Plans New Round of Reviews on TSCA Risk Evaluations: The U.S. Environmental Protection Agency (EPA) announced last week it will be reviewing the first 10 risk evaluations of certain chemical substances to ensure all populations are protected from unreasonable risks associated with these substances, several of which are used to manufacture electronics. IPC will continue to monitor the EPA’s progress in these reviews and any subsequent risk management actions. Let us know if you are interested in these risk evaluations and getting more involved. IPC Contact: Kelly Scanlon.

EPA To Require Reporting of High-Priority Chemicals: On June 29, the U.S. Environmental Protection Agency (EPA) issued a final rule that would add 20 Toxic Substances Control Act (TSCA) high-priority substances and 30 organohalogen flame retardants to the agency’s Priority Testing List (PTL). The rule would require all manufacturers and importers of these substances to “report certain lists and copies of unpublished health and safety studies to the EPA.” Several of the high-priority substances, such as phthalates, formaldehyde, and Tetrabromobisphenol A (TBBPA), are used in electronics. IPC Contact: Kelly Scanlon.

Bangladesh Publishes E-Waste Management Rule: On June 10, Bangladesh published and enacted an e-waste management rule, the first Restriction of Hazardous Substances (RoHS) and Waste from Electrical and Electronic Equipment (WEEE) directive in the country. The rule will limit the use of the 10 chemical substances - the same as those covered by the European Union RoHS Directive — which can be found in electronics components and equipment. Let us know if you have any questions. IPC Contact: Kelly Scanlon.

Taiwan Seeks to Address Handling of Hazardous Chemicals: On June 14, the Taiwan Ministry of Labor (MoL) announced it intends to revise legislation on the handling of priority management chemicals (PMCs). The proposed changes aim to categorize the hazardous properties of PMCs and would tighten handling requirements on chemicals that may pose a risk to human health. The consultation period will end on August 16. IPC Contact: Kelly Scanlon.

Interested in Chemical and Product Regulations in South Korea? South Korea’s Ministry of Environment (MoE) recently announced it plans to revise the Act on the Registration and Evaluation of Chemicals’ (K-REACH) enforcement rules to strengthen regulatory practices for chemicals. The draft amendment would change the required registration data for certain chemical substances and include new requirements for nanomaterials registration, data protection, and more. The consultation period ends next week on July 13. South Korea also underwent an updated deep dive by our environmental and health experts earlier this year. Let us know if you have any questions or concerns. IPC Contact: Kelly Scanlon.

TAX, TRADE, AND SUPPLY CHAIN

130 Nations Agree to U.S.-led Global Minimum Tax Plan: A group of 130 nations last week agreed to back a U.S.-led plan which would impose a global minimum tax (GMT) on corporations. The plan, which U.S. President Joe Biden called a “partial remedy for the offshoring of manufacturing jobs,” could be “the most significant change in global tax rules in 100 years,” The Washington Post reports. The Biden administration will reportedly push for a 15% GMT and will seek final approval by the end of October. IPC Contact: Chris Mitchell.
 
EU Parliament to Prepare Report on Industrial Strategy: On July 1, the European Parliament’s Committee on Industry, Research and Energy announced it will be drafting a report on the European Commission’s updated Industrial Strategy, which was released in May. While the report, expected later this year, will not carry the force of law, it will influence the implementation of the strategy going forward. IPC continues to advocate for the strategic importance of the entire electronics manufacturing ecosystem to the European economy, its digital and green transitions, and its future resiliency. Check out IPC’s recent report on the European electronics manufacturing industry for more information. IPC Contact: Alison James.

EC Seeks to Implement Flexible Due Diligence for SMEs: European Commission policymakers said last week that small and medium-sized enterprises (SMEs) would have flexibility in meeting due diligence obligations under an upcoming corporate sustainable governance (CSG) proposal, acknowledging challenges smaller companies may face in conducting due diligence along their supply chains. IPC is continuing to engage with European Union policymakers to ensure that the upcoming due diligence legislation, expected in late 2021, is feasible and minimizes the administrative burden for our member companies. Let us know if you have any questions. IPC Contact: Alison James.

UPCOMING EVENTS

Leveraging USG Trade Assets for Sales Support. Virtual, July 13. Bryan Erwin, former Director of the Trade Advocacy Center in the Obama administration, Founder/Managing Partner at BlueWave Merchant Partners, and current member of IPC’s Thought Leaders program, will provide information on how best to leverage U.S. government trade assets to augment your company’s sales. Erwin will also walk through how using these assets can affect policy outcomes in the United States. Register for the webinar here. IPC Contact: Chris Mitchell.

What are the Best Practices for Eco-design? Virtual, July 27. Join the International Electronics Manufacturing Initiative (iNEMI) for the final webinar in a three-part series on eco-design for a circular electronics economy. The series is your opportunity to learn from eco-design leaders about the best and most innovative practices used today. Register for the webinar here. 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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