IPC Global Advocacy Report

10/22/2021

Dear IPC Members:

I hope this finds you safe and healthy.

We’re in the midst of a busy policy-making season in both the United States and Europe.

In Washington, IPC helped secure language in the Senate FY 2022 defense appropriations bill supporting research and development (R&D) of lead-free electronics – a first in a Senate spending bill. This move signals continuing congressional commitment to investment in lead-free R&D, which we believe will pay important dividends in defense readiness and innovation. See TOP OF THE WEEK below and let us know what you think.

IPC advocacy also helped secure a U.S. EPA proposal to extend compliance deadlines related to phenol, isopropylated phosphate (3:1) – PIP (3:1) – a chemical substance used as a flame retardant and plasticizer in electronics. We’re also heavily engaged in U.S. and European proposals that would tighten rules on per- and polyfluoroalkyl substances (PFAS). Read on below.

To assist our members who do business in Asia, we’ve produced white papers on the environmental, health and safety policies in each of nine countries. We’ve recently added updated information to these papers to reflect the current state of play.

As always, please let us know if we can help you achieve any of your goals. Help us finish the year strong and plan for 2022 by taking our five-question survey.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations

 

TOP NEWS OF THE WEEK

Support Grows for Lead-Free R&D in Congress: The U.S. Senate Appropriations Committee this week released their FY 2022 defense appropriations bill, which for the first time included language supporting further research and development (R&D) into the issues surrounding lead-free electronics in mission-critical applications. The U.S. House version of the defense appropriations bill, which was approved by the House Appropriations Committee in August, also included $7.5 million for this purpose. IPC has called for a five-year, $40 million investment in a public-private R&D program to support the transition of various aerospace, defense, and high-performance (ADHP) electronics to lead-free technologies. Read more here. IPC Contact: Chris Mitchell.

EPA Unveils Plan to Regulate PFAS by 2023: The U.S. Environmental Protection Agency (EPA) released a strategic roadmap this week to regulate per- and polyfluoroalkyl substances (PFAS). The roadmap signaled that companies should be prepared to provide data and information about the usage of PFAS in their products and processes. IPC recently submitted comments to the EPA on a separate proposed rule that would require all manufacturers and importers of PFAS to report information regarding uses of thousands of PFAS. Check out a recent IPC blog for our full comments. Also see ENVIRONMENT AND HEALTH below for the latest on PFAS in Europe. IPC Contact: Kelly Scanlon.

PIP (3:1) Compliance Deadline Extended to October 2024: After considering input from IPC  and other stakeholders, the U.S. Environmental Protection Agency (EPA) announced a proposed rule that would further extend compliance deadlines on the final risk-management rules for phenol, isopropylated phosphate (3:1) – PIP (3:1) – a chemical substance used as a flame retardant and plasticizer in electronics. The new compliance deadline would be October 31, 2024 – more than two years beyond the prior deadline. Once the proposed rule is officially released, there will be an additional 60-day public comment period. Please stay tuned for more information from IPC, and let us know if you have any questions. IPC Contact: Kelly Scanlon.

How Can Government Help or Hurt You in 2022? We’re Looking for Your Concerns and Stories: As we look towards 2022, we want to know what our members are worried about. What are the key challenges you are facing right now, and what about over the horizon? How can the IPC Government Relations team best advocate for you? Your feedback will be handled in confidence and not used without your permission. Please click here to answer a 5-question survey, including one open-ended question where you can send as little as a few phrases or as much as a 100-word story that we can share with others to illustrate the challenges facing our industry. Thank you for your help! IPC Contact: Ken Schramko.

 

DEFENSE AND SECURITY

IPC and USPAE Urge Industry Collaboration in Defense Industrial Base Issues: IPC and the U.S. Partnership for Assured Electronics (USPAE) called for increased partnership between U.S. Department of Defense (DoD) and industry in joint comments submitted last week. IPC and USPAE advocated for increased DoD engagement with industry to better understand the microelectronics supply chain and address defense industrial base concerns. The comments also urged the DoD to implement Section 841 of the FY 2021 National Defense Authorization Act (NDAA), which would bolster supply chain security for printed circuit boards (PCBs) and printed circuit board assemblies (PCBAs), and to leverage IPC-1791 — Trusted Electronic Designer, Fabricator and Assembler Requirements — to ensure trusted sourcing for critical military and national security applications. IPC Contact: Ken Schramko.

 

ENVIRONMENT AND HEALTH

IPC Coordinates Comments on Proposed PFAS Ban in Europe: Five EU Member States have proposed restrictions of all per- and polyfluoroalkyl substances (PFAS) under the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulation. IPC is engaged on this issue and recently coordinated feedback on the proposed restriction with other downstream users of PFAS; the group submitted a non-exhaustive list of examples of “missed uses” of PFAS. For more information on the “missed uses,” including the electronics industry’s uses, please contact Kelly Scanlon.

Europe Aims to Lead on Sustainable and Toxic-free Environmental Issues: On October 6, the European Chemicals Agency (ECHA) convened the Safer Chemicals Conference 2021, covering issues like burgeoning legislative initiatives for safe and sustainable products and materials and the role of the European Commission and the ECHA in supporting these initiatives. Be sure to check out the keynote sessions and the session on the Substances of Concern in Products (SCIP) Database; you can find all conference materials here. IPC is continuing to monitor, and remains actively engaged with, EU policies that will affect the global electronics manufacturing supply chain. Please let us know if you have any questions. IPC Contact: Kelly Scanlon.
 
Interested in Chemical and Product Regulations in Asia? To help our members, IPC has created nine white papers highlighting the history of chemical regulations, current regulatory systems, recent regulatory updates, and anticipated trends in the Asia-Pacific region. Each white paper has recently undergone an updated deep dive by our environmental and health experts. You can find our refreshed white papers here; let us know if you have any questions or concerns. IPC Contact: Kelly Scanlon.

 

EUROPEAN UNION

Commission Unveils Working Plan for 2022: On October 19, the European Commission published its 2022 work plan, which outlines the European Union’s key policy initiatives for the upcoming year. Transitioning towards a digital and carbon-neutral economy will remain key policy objectives, but electronics will want to take note of Q2, when the commission plans to adopt the “European Chips Act” to improve its semiconductor and microchip production. In Q3, the commission plans to present a legislative proposal aimed at facilitating small and medium-sized enterprise’s (SME) access to capital. Please let us know if you have any questions about these upcoming initiatives and if they will affect your business. IPC Contact: Alison James.

 

TAX, TRADE, AND SUPPLY CHAIN

IPC Takes Part in Virtual "Fly-in" on Semiconductor Legislation: IPC took part in a virtual fly-in held by the Semiconductor Industry Association (SIA) this week to advocate for funding the initiatives authorized in the Creating Helpful Incentives for the Production of Semiconductors (CHIPS) for America Act and the enactment of the Facilitating American-Built Semiconductors (FABS) Act investment tax credit. Read more about the current state of play of the legislation in National Journal here, and let us know if you have any questions. IPC Contact: Ken Schramko.

IPC Member Speaks Out on Critical Technologies Bill: “The bill aims to strengthen semiconductor research, but this is only a tiny fraction of the battle to provide a domestic supply chain to allow America to remain globally competitive.” Meredith LaBeau, chief technology officer at Calumet Electronics and a member of IPC’s Thought Leaders Program, called for improvements to the United States Innovation and Competition Act (USICA) to better strengthen U.S. leadership in critical technologies in The Detroit News. IPC Contact: Chris Mitchell.

IPC’s Latest Economic Trends Report: Global demand remains strong, but the economic environment is softening. While there are still many reasons to remain optimistic, growth moving forward will be more difficult to achieve. COVID-19 remains the largest risk factor right now, with surging cases limiting the potential for growth. Check out the latest global economic data in IPC Chief Economist Shawn DuBravac’s Monthly Economic Outlook Report and let us know if you have any questions. IPC Contact: Shawn DuBravac.

Commerce Department Seeks Input on ICT and Semiconductor Supply Chain Risks: The U.S. Department of Commerce recently issued two requests for public comment on key supply chain risks. The first notice seeks comments on risks in ICT supply chain, and the second notice seeks input on semiconductor vulnerabilities. Both requests are pursuant to President Joe Biden’s Executive Order (EO) 14017, “America's Supply Chains,” issued earlier this year. IPC will prepare and submit comments for both requests by November 4 and November 8, respectively. Earlier this year, IPC and the U.S. Partnership for Assured Electronics (USPAE) submitted comments on risks in the semiconductor manufacturing and advanced packaging supply chains, a process that was also pursuant to the EO. A subsequent White House report reflected IPC’s input but focused on semiconductor supply chain vulnerabilities. The new semiconductor-related request is designed to address questions raised in the report. IPC Contact: Ken Schramko.

 

HELP US SPREAD THE WORD ON SOCIAL MEDIA

 

“Today’s defense electronics are now 15 to 20 years behind the commercial market in terms of the underlying technologies used, creating risks to supply chain resiliency and defense readiness.” IPC’s Chris Mitchell, VP, global government relations, comments on the 2022 defense appropriations bill from the U.S. Senate Appropriations Committee which, for the first time, includes language supporting further R&D into issues surrounding leadfree electronics in mission-critical applications.

“The rest of the vital supply chain equation, known as electronics and advanced packaging manufacturing, has been overlooked.” In an op-ed in the Detroit News today, Meredith LaBeau, CTO, Calumet Electronics Corporation, and IPC Thought Leaders Program member, explains why the U.S. Innovation and Competition Act falls short of its goals.

 

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.

Subscribe to IPC Global Advocacy Report: If you’re a member of IPC, manage your e-mail preferences and opt in to receive “Advocacy” updates. If you are not an IPC member — or you’re not sure — please send a note to friends@ipc.org, and our staff will add you to the list.

Follow us on Twitter and LinkedIn.

Contact one of us if you have any questions or insights to contribute.

Tell us how government policies affect your business.

See prior editions of Global Advocacy Report.

Explore our IPC Government Relations information online.