IPC Global Advocacy Report

12/17/2021

Dear IPC Members:

I hope all is well with you and yours.

The New Year is just two weeks away, and the U.S. Congress is in its usual, end-of-year rush to complete legislative priorities before members depart for the holiday break.

Having passed the annual defense authorization bill and a measure to raise the debt ceiling, legislators are now laboring over U.S. President Biden’s $1.75 trillion social spending package. Negotiations on the U.S. Innovation and Competitiveness Act (USICA) remain on the back burner but could heat up in Q1.

Meanwhile, in many world capitals, environmental regulators are active on several fronts. Read on below and follow IPC on LinkedIn or Twitter for the latest updates.

As a reminder, your advocacy efforts will help keep us on a strong track going into 2022. Head over to the IPC Action Alert Center to get involved, and please let us know if you have any questions and suggestions.

This will be our last Global Advocacy Report until the week of January 3. From all of us here at IPC, please have a safe, happy holiday and a happy new year!

Chris Mitchell
Vice President, Global Government Relations

 

TOP NEWS OF THE WEEK

Dynamic Environmental Policy Landscape Expected in 2022: The EU and U.S. regulatory agendas are crowded with chemical and product policies that can affect electronics manufacturers in 2022. In Europe, IPC expects revisions to the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulation, a review of the Restriction of Hazardous Substances (RoHS) Directive, and legislative action on the Sustainable Products Initiative. In the United States, we anticipate consultations on Toxic Substances Control Act (TSCA) risk evaluations and on the risk management of existing chemicals. IPC’s environmental advocacy team will be busy monitoring and engaging on these topics for you in 2022. Please let us know if you have any questions. IPC Contact: Kelly Scanlon.

U.S. Defense Missions Depend on Completing Lead-Free R&D: The U.S. defense and aerospace community’s reliance on outdated electronics designs is creating an opportunity for our rivals to surpass U.S. technology in the coming years. With lead-based electronics becoming more difficult and expensive for the Department of Defense (DoD) to procure, it is imperative that we complete the transition to lead-free. The lead-free research funding level is due to be decided in Congress within the coming weeks. Read the new op-ed by IPC member David Raby in AL.com here. IPC Contact: Ken Schramko.

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.

 

QUOTE OF THE WEEK

"DEC is positioned to give DoD direct access to industry and academia to gain insights, collaborate on electronics innovations, work to solve government challenges, advance the workforce, and accelerate the adoption of new technologies.”
– Chris Peters, Executive Director of U.S. Partnership for Assured Electronics (USPAE), comments on an $8.95 million award from the Department of Defense (DoD) to bolster the electronics sector across the U.S. defense industrial base.

 

IPC ADVOCACY AND YOU

IPC to Hold Virtual IMPACT Washington, D.C. in 2022: IPC’s signature U.S. advocacy event – IMPACT Washington, D.C. – will take place in March, but it will be virtual only due to COVID. We had planned for an in-person IMPACT, but due to uncertainty about the pandemic and the new Omicron variant, policymakers are unlikely to take meetings with large groups at that time. IPC Contact: Ken Schramko.

 

DEFENSE AND SECURITY

NDAA Heads to Biden's Desk: The U.S. Senate passed a compromise version of the National Defense Authorization Act (NDAA) Wednesday, sending the legislation to U.S. President Biden for his expected signature. Notably, the $768 billion annual defense policy bill, which passed with bipartisan support and will increase the Pentagons budget by $24 billion, includes restrictions on acquisitions of certain printed circuit boards (PCBs) susceptible to interference by the Chinese government. The NDAA also contains numerous provisions for cleaning up military communities impacted by per- and polyfluoroalkyl substances (PFAS) contamination, but they are unlikely to affect electronics manufacturers. Let us know if you have any questions. IPC Contact: Ken Schramko
 
USPAE Recipient of $8.9 Million Award for Lead-Free R&D: The U.S. Partnership for Assured Electronics (USPAE) was the recent recipient of an $8.95 million award from the Department of Defense (DoD) to grow the Defense Electronics Consortium (DEC) and expand its work on the Lead-Free Defense Electronics Project. The DEC was created to help the U.S. government identify and address potential risks in the electronics supply chain. Contact USPAE if you have any questions.


ENVIRONMENT AND HEALTH

Biden Signs EO to Promote Cleaner and Sustainable Federal Procurement: On December 8, U.S. President Joe Biden signed an Executive Order (EO) that sets five ambitious net-zero emissions goal across the federal government by 2050. The EO will direct the federal governments procurement efforts to prioritize the purchase of sustainable products, such as products without added PFAS.” However, some per- and polyfluoroalkyl substances (PFAS) are used to make electronics purchased by the federal government. This is an opportunity for the electronics industry to educate policymakers about the widespread use of PFAS, the risk associated with those uses across the life cycle, and the tradeoffs associated with trying to identify and implement safer alternatives. IPC Contact: Kelly Scanlon.

Feedback Due on Proposed BPA Restriction: Industry feedback is due to European regulators on December 22 on a proposed restriction of Bisphenol A (BPA) and bisphenols of similar concern, which are found in epoxy resins and have utility in electronics. This is an opportunity to provide updated information on uses and alternatives in the downstream uses of polymers and other chemicals. Feedback is also due March 16, 2022, on a Canadian request for information about bisphenols. Are these bisphenols essential to your electronics-related manufacturing processes or electronics products? Do you have data or insights to share? Please let us know. IPC Contact: Kelly Scanlon.

Taiwan Delays Registration of Chemical Substances Due to COVID-19: On November 23, Taiwan’s Toxic and Chemical Substances Bureau extended the original registration deadline for the first batch of 106 Priority Existing Chemicals (PEC) to December 2024. The decision extends the registration completion period for PECs from three to five years, providing companies with sufficient time for preparation. Please let us know if you have any questions. IPC Contact: Kelly Scanlon.

 

EUROPEAN UNION

Busy Agenda Ahead for French EU Presidency: Advancing the European Union’s tech agenda and aligning its trade policy with its climate goals will be top priorities of France’s presidency of the Council of the European Union, which will begin on January 1, 2022 and run until June 30, 2022. France will also prioritize the need to boost investments in strategic sectors including semiconductors, hydrogen, batteries, and cloud technology, and sources confirmed that “several investment plans and industrial alliances” will be launched by March. The presidency’s responsibilities include steering the council’s political agenda and helping achieve compromises among EU institutions and EU Member States. IPC Contact: Alison James.

 

TRADE AND SUPPLY CHAIN

U.S. House Passes Bill to Strengthen Ocean Supply Chains: The U.S. House passed a bipartisan bill last week that would help fix transportation bottlenecks and give U.S. shipping interests more avenues to seek redress in complaints against China. The bill, called the Ocean Shipping Reform Act, aims to help mitigate ongoing supply chain issues and has the support of the White House and agricultural and manufacturing industries. IPC Contact: Ken Schramko.

Higher Costs Hurting Electronics Manufacturing Outlook: Price increases within our industry have continued, with nine in 10 electronics manufacturers reporting rising materials costs, and nearly three-fourths reporting rising labor costs, according to data from IPC’s latest Global Sentiment Survey. These numbers highlight what continues to be a challenging environment for electronics as profit margins shrink and supply chain disruptions persist. Read the full report here and stay tuned for next month’s report. IPC Contact: Shawn DuBravac.

IPC’s Latest Economic Trends Report: In this month’s economic report, despite uncertainties now, supply chain disruptions have resulted in unfilled pent-up demand that could signal growth into the first half of 2022. However, the trajectory of the economy will follow the trajectory of the pandemic, and the Omicron variant poses a significant threat to the economy. 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.


HELP US SPREAD THE WORD ON SOCIAL MEDIA

 

IPC's January global sentiment survey is now open. We’re seeking your input on the current state of the global electronics manufacturing industry. Your responses help us measure the “pulse” of our industry. What’s in it for you? A copy of the research results when the survey is completed.

In IPC’s latest economic trends report, supply chain constraints have continued to hamper growth of the electronics manufacturing industry. But despite uncertainties, supply chain disruptions have resulted in unfilled pent-up demand that could signal growth into the first half of 2022. However, the trajectory of the economy will follow the trajectory of the pandemic, and the Omicron variant poses a significant threat to the economy returning to pre-pandemic patterns.

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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