Dear IPC Members:

The top highlight of this week was gearing up to release IPC’s comprehensive report on the advanced packaging ecosystem in North America. One of the report’s major takeaways is that North America now finds itself in a worrisome predicament: it can design the most cutting-edge electronics but cannot manufacture them. We’ll be publishing and promoting this report in the days and weeks to come, and we hope you take the time to check it out and share it with your networks.

Here in Washington, there are plenty of legislative priorities that the U.S. Congress must address over the next few weeks, including finalizing the annual defense authorization bill; funding the U.S. government beyond December 3; and increasing the debt ceiling. It’s again shaping up to be a busy end of year, so stay tuned, and we will keep you informed as advocacy opportunities arise.

And as we approach the holiday season, please continue to stay safe and enjoy the time with your loved ones. As always, please reach out to your IPC Government Relations (GR) team to get involved or ask any questions about IPC’s advocacy activities. We’re here to help you.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

IPC Report Calls for U.S. Government Investment in Advanced Packaging: If the U.S. government wants to achieve greater innovation, resiliency, and security in the semiconductor supply chain, its investments in semiconductors must be paired with robust, multibillion-dollar investments in advanced packaging of chips and especially in advanced IC-substrates. Those are among the key findings of a new IPC report, which makes 28 recommendations to address the gaps in industry capabilities and capacity in North America. IPC released a 10-page summary report as well as a 115-page full report. IPC is increasing its government advocacy and industry leadership on these issues. Let us know if you have any questions. IPC Contact: Chris Mitchell.

Electronics Manufacturing Outlook Continues to Be Murky: 71% of electronics manufacturers expect to raise prices by upwards of 8% next year, according to data from IPC’s latest Global Sentiment Survey. These numbers underscore what continues to be a challenging environment for electronics as profit margin decreases and shortages and supply chain challenges persist. Read the full report here, check out a new interview with IPC Chief Economist Shawn DuBravac in Supply Chain Dive, and stay tuned for next month’s report. IPC Contact: Ken Schramko.

New Calls for Information on Chemical Common to Plastics and Resins: There are two active opportunities for the electronics manufacturing industry to share input regarding possible restrictions on Bisphenol A (BPA) and bisphenols of similar concern, which are found in epoxy resins and have utility in electronics. Feedback is due December 22 on a proposed restriction in the European Union, while feedback is due March 16, 2022 on a Canadian request for information about bisphenols. Are these bisphenols essential to your electronics-related processes? Do you have any data or information to submit? Let us know if you have any questions. IPC Contact: Kelly Scanlon.

Biden Signs Bipartisan Infrastructure Package: U.S. President Joe Biden officially signed a $1 trillion bipartisan infrastructure package on Monday. Of note to electronics manufacturers, the bill will support the expansion of smart manufacturing technologies and practices. IPC supported the bill and has welcomed the prospect of historic investments in America’s roads, ports, electric grids, and digital networks, in part because America’s infrastructure depends on reliable electronics. IPC Contact: Ken Schramko.

IPC ADVOCACY AND YOU

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 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? Please click here to answer a 5-question survey, including one open-ended question where you can write anything from a few phrases to 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

DoD Updates to CMMC Will Benefits SMEs: On November 4, the U.S. Department of Defense (DoD) unveiled a much-anticipated update to its Cybersecurity Maturity Model Certification (CMMC) — called CMMC 2.0 — and electronics manufacturers will want to take note of the updates. According to the DoD, CMMC 2.0 aims to minimize compliance barriers by reducing costs, particularly for small businesses. Given the many concerns that were raised about CMMC 1.0, these common-sense changes are a big improvement. Read more in a new IPC blog, and register for a webinar with cybersecurity expert and IPC Thought Leader Leslie Weinstein on December 9. IPC Contact: Chris Mitchell.

IPC and USPAE Warn USG of Weakened Electronics Ecosystem: IPC and the U.S. Partnership for Assured Electronics (USPAE) encouraged the U.S. Department of Commerce to conduct a holistic analysis of the ICT supply chain, including the electronics manufacturing ecosystem, in recent joint comments. The comments also urged the U.S. government 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 work with the U.S. Congress to establish tax credits to support the industry’s migration to factories of the future. IPC Contact: Ken Schramko.

ENVIRONMENT AND HEALTH

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 to further extend compliance deadlines on the final risk-management rule 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 three years beyond the original deadline. The EPA will examine new requests for extensions beyond the 2024 date by evaluating documentation to support specific uses of PIP (3:1) in articles. IPC, alongside CTA and ITI, has organized a list of documentation that will be useful to prepare a response to the EPA. Please check out our blog to read more, and let us know if you have any question. IPC Contact: Kelly Scanlon.

Federal Appeals Court Blocks Biden Administration’s Vaccine Mandate: The U.S. Fifth Circuit Court of Appeals has temporarily blocked the implementation of the Biden administration’s mandate on vaccinations for U.S. companies with over 100 employees. The U.S. Occupational Safety and Health Administration (OSHA) Emergency Temporary Standard (ETS) would require employers to ensure that their workers are either fully vaccinated against COVID-19 by January 5, 2022 or that they test for COVID-19 at least once a week. This is likely the beginning of a long legal battle and we will update you as the situation progresses. Read this IPC blog for more on the administration’s proposed vaccine rules.

EPA Unveils Plan to Regulate PFAS by 2023: The U.S. Environmental Protection Agency (EPA) recently released a strategic roadmap 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. IPC Contact: Kelly Scanlon.

Japan Releases Schedule for Small-Volume Notification of Chemical Substances: On October 29, Japan released the 2022 schedule (In Japanese) for small-volume notification of chemical substances, and electronics manufacturers may be affected. According to Japan’s Chemical Substance Control Law (CSCL), all companies that manufacture or import chemical substances in volumes of less than one ton per year must apply for small-volume permits. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

Europe May Allow State Aid for Chip Manufacturing: As the global chip shortage persists, the European Commission announced this week that it may approve state aid to fund semiconductor production and establish “first-of-a-kind," cutting-edge chip factories within the bloc. State aid subsidies for semiconductors were previously limited to investments for research, development, and innovation (RDI) and first industrial deployment (FDI). Prior to approval, the commission would “seek to ensure such support was subject to strong competition safeguards and that the benefits were shared widely and without discrimination across the European economy,” Reuters reports. We will update you as more information is provided. IPC Contact: Alison James.

TAX, TRADE, AND SUPPLY CHAIN

U.S. and EU Trade and Technology Council Finds Support in Europe: European policymakers have expressed confidence in strengthened transatlantic relations following the inaugural meeting of the U.S.-EU Trade and Technology Council (TTC), which addressed issues including global trade, supply chain concerns, export controls, and emerging technologies. In a recent plenary debate, members of the European Parliament (MEPs) shared that the TTC would foster collaboration on critical issues like the semiconductor chip shortage and a successful digital transition. IPC welcomes efforts to rekindle the U.S-EU partnership and continues to engage with policymakers to ensure the electronics value chain is recognized as central to economies on both sides of the Atlantic. IPC Contact: Alison James.

IPC’s Latest Economic Trends Report: In this month’s economic report, both current conditions and the long run outlook remain fractured. While sales remain strong, the forecast for electronics manufacturing has deteriorated because of supply chain disruptions. The United States is not alone in seeing weaker growth, with China and Europe also feeling the effects. Check out IPC Chief Economist Shawn DuBravac’s Monthly Economic Outlook Report, and let us know if you have any questions. IPC Contact: Shawn DuBravac.

UPCOMING EVENTS

CMMC 2.0 is Here – An Update on the DoD’s Cybersecurity Requirements: Virtual, December 9. Do you do business with the U.S. Department of Defense (DoD)? Have you heard about the latest update to the Cybersecurity Maturity Model Certification (CMMC)? Join cybersecurity expert Leslie Weinstein, who will help IPC member companies cut through the noise and confusion surrounding the CMMC. You will leave with an understanding of the changes introduced by CMMC 2.0 and be better equipped to navigate the evolving landscape. IPC Contact: Chris Mitchell.

HELP US SPREAD THE WORD ON SOCIAL MEDIA

Do you do business with the U.S. Department of Defense (DoD?) Are you aware of the latest update to the Cybersecurity Maturity Model Certification (CMMC)? CMMC expert Leslie Weinstein will lead a free webinar for IPC members, “CMMC 2.0 is Here: An Update on the DoD’s Cybersecurity Requirements,” to cut through the noise and confusion. Dec. 9.		“It isn’t just that companies are raising prices because they have strong demand and think they can sell it for more, but it’s really to offset costs in the supply chain.” Shawn DuBravac, PhD, CFA, IPC chief economist, talked to Supply Chain Dive: Supply Chain and Logistics News about the expectation that electronics manufacturers will raise prices in 2022.

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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