Happy December!

To my colleagues in the United States, I hope everyone enjoyed a safe and happy Thanksgiving.

This week, IPC released new reports on the latest sentiment of the global electronics manufacturing supply chain and the global economic outlook. The two reports indicate that many of you are struggling with material and labor costs, as well as inventory and transportation constraints. The onset of the Omicron variant could spell trouble for the global economic recovery as well.

In Washington, time is running out for the U.S. Congress to complete several priorities before the end of the year including finalizing the annual defense authorization bill; passing President Biden’s social spending bill; and raising the debt ceiling. However, Congress was able to avert a government shutdown this week and pass a short-term measure to extend federal funding through mid-February.

Please browse our advocacy pages, follow IPC on social media, or contact one of us on IPC’s Government Relations (GR) team if you have any questions or suggestions. We always welcome your thoughts and feedback.

All the best, and continue to stay safe,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

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.

Raimondo Calls for Increased Funding of Semiconductors: U.S. Commerce Secretary Gina Raimondo this week called for increased funding of semiconductors and urged immediate passage of the CHIPS Act in the U.S. House. IPC supports the CHIPS Act, but we believe investments in semiconductors must be paired with robust, multibillion-dollar investments in advanced packaging of chips and advanced IC-substrates. Those are among the key findings of a new IPC report, which made 28 recommendations to address the gaps in industry capabilities and capacity in North America. Let us know if you have any questions. IPC Contact: Chris Mitchell.

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 May Offer Incentives to Reach CMMC Compliance: The U.S. Department of Defense (DoD) is considering offering financial or certification incentives to get contractors to reach Cybersecurity Maturity Model Certification compliance before CMMC 2.0 goes live, Federal News Networks reports. CMMC 2.0, unveiled in November, aims to minimize compliance barriers by reducing costs, particularly for small businesses. Read more about what CMMC 2.0 means for our industry in an IPC blog, and register for a webinar with cybersecurity expert and IPC Thought Leader Leslie Weinstein on December 9. IPC Contact: Chris Mitchell.

NDAA Hits Roadblock in Senate: The Biden administration’s decision to waive sanctions on a Russian-built pipeline in Europe is threatening the passage of the annual defense policy bill. The most recent vote to end debate on the National Defense Authorization Act (NDAA) in the U.S. Senate fell far short of the needed 60 votes, with Republicans in near-unanimous opposition to advancing the bill further without progress on provisions including the strengthening of those sanctions. We will keep you updated as negotiations continue. IPC Contact: Ken Schramko.

ENVIRONMENT AND HEALTH

New Calls for Information on Chemicals Common to Plastics and Resins: There are two active opportunities for the electronics industry to share information 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 of these chemicals in the European Union. This call for information is an opportunity to provide updated information on uses and alternatives in the downstream uses in 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 information to submit? Please let us know. 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 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.

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.

Interested in Chemical and Product Regulations in South Korea? Electronic manufacturers who do business in South Korea will want to take note of the upcoming registration deadline under the Act on the Registration and Evaluation of Chemicals of South Korea (K-REACH). By December 31, all manufacturers and importers of carcinogenic, mutagenic, and reprotoxic substances (CMRs) and existing and new chemical substances that exceed 1,000 tons per year must be notified or registered. See the full list of chemical substances here. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

EU Due Diligence Proposal Delayed Until 2022: The European Commission’s Sustainable Corporate Governance proposal (SCG), originally expected in June, has been delayed until 2022 following a second negative opinion from the Regulatory Scrutiny Board — the commission’s independent internal auditor. However, the commission is expected to move forward and present its SCG proposal, despite the two negative opinions, while further refining its impact assessment. As a reminder, the proposal will introduce mandatory environmental and human rights due diligence rules for all companies operating within the European Union as well as corporate directors’ duties to integrate mandatory sustainability criteria into their decision-making. IPC is continuing to engage with EU policymakers to ensure that the legislation 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

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

After decades of outsourcing, North America can design the most cutting-edge electronics but cannot manufacture them. A new IPC report offers data, maps, and recommendations on troubling gaps in the semiconductor supply chain.		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.

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.