IPC Global Advocacy Report

2/4/2022

Dear IPC Members:

I hope you and yours are doing well.

From all of us here at IPC, we thank those of you who participated in last week’s IPC APEX EXPO 2022. Despite the uncertainties brought on by COVID, attendance was strong, and spirits were high. Watch for my annual “top 10 takeaways” – plus a full package of special coverage – coming soon in I-Connect007.

Meanwhile, this weekly newsletter is a snapshot of the top government policy issues we’re working on for you all over the world, designed to be skimmed in less than five minutes. Please let us know if you have questions and suggestions.


All the best,

Chris Mitchell
Vice President, Global Government Relations

 

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

  • IPC Commends U.S. House Action on Tech and Competitiveness Bill
  • New Report Warns U.S. Electronics Manufacturing On “Brink of Extinction”

QUOTE OF THE WEEK

IPC ADVOCACY & YOU

  • Which Government Policies Worry You Most?

ENVIRONMENT AND HEALTH

  • Lead Considered for Inclusion on REACH Authorization List
  • Are You an Electronics Supplier that Uses the IMDS?
  • Share Your Input with European Chemical Regulators

TRADE AND SUPLY CHAIN

  • Lead Considered for Inclusion on REACH Authorization List
  • Are You an Electronics Supplier that Uses the IMDS?
  • Share Your Input with European Chemical Regulators

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US


TOP NEWS OF THE WEEK

IPC Commends U.S. House Action on Tech and Competitiveness Bill: The U.S. House of Representatives passed a billtoday, which would, if enacted, appropriate at least $2.5 billion in FY2023 for advanced packaging research and development (R&D). The legislation, called the America COMPETES Act, is a companion bill to the U.S. Innovation and Competitiveness Act (USICA), which the U.S. Senate passed in June. IPC supports the bill and its objective of strengthening U.S. technology capabilities. Read more details here. IPC Contact: Chris Mitchell.

New Report Warns U.S. Electronics Manufacturing On “Brink of Extinction”: A new report from industry veteran Joe O’Neil and IPC’s Thought Leader Program warns that the United States has lost its historic dominance in printed circuit boards (PCBs), and the lack of any significant U.S. Government support for the sector is leaving the nation dangerously exposed to foreign dominance of the electronics supply chain. The report also says much of what happens on the PCB factory floor should be considered research and development (R&D) and earn tax benefits. Please help us spread the word on social media via the links toward the bottom of this email. IPC Contact: Chris Mitchell.

 

QUOTE OF THE WEEK

“We’re pleased to see Congress making progress on the bipartisan goal of re-establishing U.S. leadership in advanced electronics, which power everything from automobiles to medical devices, aircraft, smartphones, and beyond. ... This bill has the potential to begin rebuilding the U.S. electronics manufacturing ecosystem.”
– President and CEO John Mitchell extols new U.S. House tech and competitiveness legislation.

 

IPC ADVOCACY AND YOU

Which Government Policies Worry You Most? As we plan our GR activities for the year, we want to know how the IPC Government Relations team can best advocate for you now and in the future. Throughout 2021, we asked IPC members about the key challenges they are facing. Cory Steeby of Holland, MI cautioned that “tariffs are an ongoing additional tax on U.S. manufacturing companies,” and that “the electronic component and bare PCB supply chains are broken.” Let us know your top concerns via this five-minute, five-question survey. IPC Contact: Chris Mitchell.

 

ENVIRONMENT & HEALTH

Lead Included on Draft REACH Authorization List: Lead (Pb) metal is one of eight substances included on the latest draft Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Authorization List. A three-month public consultation by the European Chemicals Agency (ECHA) began on February 2 and included requests for information on the ECHA’s draft recommendation and the potential socio-economic consequences, respectively. IPC will continue to coordinate with industry stakeholders on communication regarding this regulatory activity. Let us know if you would like to learn more. IPC Contact: Kelly Scanlon.

Are You an Electronics Supplier that Uses the IMDS? Recent changes to the International Material Data System (IMDS) includes new “recommendations” regarding electronics data that may affect how your company meets its reporting obligations. Read a guest blog by the Automotive Industry Action Group’s (AIAG) Supplier Alliance Committee to learn more on these recommendations. IPC Contact: Kelly Scanlon.

REACH Regulation Under Revision: The European Commission is currently accepting input on revising the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) Regulation to better reflect the ambitions set forth in the Chemicals Strategy for Sustainability. The consultation period is open through April 15. If your company is interested in participating in the consultation, please let us know. IPC Contact: Kelly Scanlon.

 

TRADE AND SUPPLY CHAIN

High Material and Labor Cost Challenges Remain: According to the latest data from IPC, supply chain challenges remain acute, but they may have peaked, while lead times remain high. IPC’s February Monthly Economic Update and Global Sentiment Survey reports found that high material and labor costs are expected to continue for at least six months, while recruiting and finding skilled talent continues to be difficult. Let us know if you have any questions. IPC Contact: Shawn DuBravac.

IPC Advocates for Transatlantic Cooperation on Resilient Supply Chains: IPC recently made the case for a resilient electronics manufacturing ecosystem and further investments in advanced packaging at the inaugural meeting of the European Commission’s consultation on secure supply chains. IPC supports investments to stem the chip shortage, but if the EU and U.S. governments want to achieve greater innovation, resiliency, and security, they must also build up the entire electronics manufacturing ecosystem. Read our full recommendations to the EU-U.S. Trade and Technology Council (TTC) in an IPC blog. IPC Contact: Alison James.
 
Commerce Aims to Address Chip Supply Shortage: The U.S. Commerce Department is taking new steps to ensure a robust domestic semiconductor industry. According to a recent Request for Information (RFI), Commerce is seeking to incentivize investment in semiconductor manufacturing facilities and associated ecosystems and support research related to advanced packaging. IPC will provide comments. Meanwhile, a Commerce report last week warned that, late last year, U.S. manufacturers had less than five days’ supply of some chips on hand, leaving them vulnerable to disruptions in deliveries, The Washington Post reported. Chips cannot function on their own; recent IPC studies have found the U.S. Government (USG) should pair its investments in semiconductor manufacturing with funds for advanced packaging, PCBs , and related technologies. Let us know if you have any questions or want to be involved in our advocacy. IPC Contact: Ken Schramko.

 

HELP US SPREAD THE WORD ON SOCIAL MEDIA

 

The U.S. House voted today to pass the America COMPETES Act, a bill that aims to increase U.S. competitiveness and strengthen the country’s supply chain. IPC supports H.R. 4521, and its objective of boosting U.S. tech capabilities.

The PCB fabrication sector in the United States is in worse trouble than the semiconductor sector, and it ’s time for both industry and government to make some significant changes to address that.” – Joe O'Neil, principal of OAA Ventures and member of the IPC Thought Leaders Program, comments on his report, “Printed Circuit Boards Matter: Rebuilding the US Electronics Supply Chain,” available now.

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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