Dear IPC Members:

Supply chain concerns are top of mind for policymakers in the United States, and our message is getting across, as evidenced by a fresh set of reports released by the Biden administration yesterday. (See below.)

IPC is encouraged by the measures being taken to ensure supply chain resiliency and will continue to advocate for a holistic approach to the electronics manufacturing ecosystem.

This weekly newsletter provides a snapshot of the top government policy issues we are working on for you all over the world – in a five-minute scan.

Please let us know if you have any questions or suggestions.

All the best,

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• IPC Praises U.S. Government Reports on Strategic Supply Chains
• Feedback Needed on Proposed Changes to RoHS Directive

QUOTE OF THE WEEK

ENVIRONMENT AND HEALTH

• Fresh Opportunity to Engage with EPA on TSCA
• Lead Considered for Inclusion on REACH Authorization List
• What Are the Best Practices for Eco-Design?
• Thailand Considers Designating PFOA as Hazardous Chemical Substance

EUROPEAN UNION

• Commission Presents EU Due Diligence Proposal
• Commission Launches Stakeholder Survey on Chips Usage
• Commission Releases Report on Europe's Strategic Dependencies

TRADE AND SUPLY CHAIN

• IPC Among Groups Urging Congress to Fund CHIPS Act
• United States Imposes Restrictions on Tech Exports to Russia
• U.S. Government Seeks Comment on Chinese Import Restrictions
• High Material and Labor Cost Challenges Remain

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TOP NEWS OF THE WEEK

IPC Praises U.S. Government Reports on ICT Supply Chain: IPC is applauding a set of U.S. Government reports, released Thursday, which highlight the need for the United States to foster a robust domestic electronics manufacturing industry. With these reports, the Biden administration has made its strongest statements yet about the need to rebuild the entire electronics manufacturing ecosystem, including printed circuit boards (PCBs) and PCB assemblies (PCBAs). The Commerce department report quotes extensively from IPC’s input to them. IPC will continue to urge policymakers to combine investments in semiconductor manufacturing with additional support for advanced packaging, PCBs, and related technologies. IPC Contact: Chris Mitchell.

Feedback Needed on Proposed Changes to RoHS Directive: The European Commission released its call for evidence for an impact assessment as part of its review of the Restriction of Hazardous Substances (RoHS) Directive. The call for evidence will allow the commission to explore several possible options, including reform or repeal, for the RoHS Directive. The deadline for comments if March 14. Please let us know if your company could be affected by changes to the directive. IPC Contact: Kelly Scanlon.

QUOTE OF THE WEEK

“There are several key cross-cutting vulnerabilities impacting the U.S. ICT industrial base that threaten supply chain resilience and security. These include vulnerabilities related to the supply chain shifts and constraints due to the COVID-19 pandemic, the lack of a robust U.S. ecosystem for electronics production and emerging technologies, a reliance on single source and single region suppliers, a lack of junior tier supplier transparency, … the difficulties maintaining hardware and software integrity along the entire supply chain, … and extended supply chains.”
- Assessment of the Critical Supply Chain Supporting the U.S. Information and Communications Technology (ICT) Industry, report from the U.S. Departments of Commerce and Homeland Security, released this week.

ENVIRONMENT & HEALTH

Fresh Opportunity to Engage with EPA on TSCA: The U.S. Environmental Protection Agency has reopened the dockets for the 20 high-priority substances to undergo risk evaluation under the Toxic Substances Control Act (TSCA). This provides an additional opportunity for the public to submit information that would help inform the risk evaluation processes for these chemicals. The dockets are open until June 9. Please let us know if you are interested in this opportunity to inform future policy decisions. IPC Contact: Kelly Scanlon.

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 this month 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.

What Are the Best Practices for Eco-Design? The International Electronics Manufacturing Initiative (iNEMI) and IPC recently held a joint webinar series covering the best and most innovative eco-design practices being used in our industry today. View our video series on some of the common themes and lessons learned here. IPC Contact: Kelly Scanlon.
 
Thailand Considers Designating PFOA as Hazardous Chemical Substance: On February 9, Thailand’s Department of Industrial Works (DIW) issued a draft notice adding perfluorooctanoic (PFOA) and its related compounds to the country’s hazardous substance list; this could affect products used in semiconductor manufacturing and electronics. Under the Hazardous Substance Act, PFOAs and other hazardous substances would be subject to strict control, including potential prohibition of production, import, export, or possession. Please let us know if this move affects your business. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

Commission Presents EU Due Diligence Proposal: On February 23, the European Commission published its corporate sustainability due diligence proposal aimed at strengthening corporate social responsibility. The proposal would introduce human rights and environmental due diligence rules for all large companies operating within the European Union while excluding small and medium-sized enterprisess (SMEs). The proposal also calls for company directors to set up and oversee the implementation of due diligence. The proposal will now be examined by the European Parliament and EU Member States. Let us know if you have any questions. IPC Contact: Alison James.

Commission Launches Stakeholder Survey on Chips Usage: The European Commission launched a stakeholder survey this week to capture chip demand and identify potential supply bottlenecks in the bloc. The survey was released in conjunction with the recently announced European Chips Act, which is aimed at improving the bloc ’s semiconductor and microchip production. IPC welcomes the release of the legislation, with its strong support for advanced packaging, and is calling for its swift adoption and implementation as part of a broader strategy to rebuild the European electronics manufacturing ecosystem. The survey is open until March 20. IPC Contact: Alison James.

Commission Releases Report on Europe's Strategic Dependencies: The European Commission released an updated review this week on five areas, including rare earths and magnesium and chemicals, where the European Union faces strategic dependencies on third countries. The review also accompanied a report on the Single Market, which provided updates on developments across industrial ecosystems; recent challenges in global supply chains; and the economic situation of small and medium-sized enterprises (SMEs). Let us know if you have any questions. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

IPC Among Groups Urging Congress to Fund CHIPS Act: IPC was among a multi-association group urging Congressional leaders to reach consensus on R&D and competitiveness legislation, including funding for CHIPS Act investments. IPC supports the CHIPS Act, which passed the U.S. Senate in June and the U.S. House earlier this month. IPC Contact: Chris Mitchell.

United States Imposes Restrictions on Tech Exports to Russia: The U.S. Department of Commerce (DoC) on Thursday announced a series of sweeping export controls in response to Russia’s invasion of Ukraine. The restrictions will notably curtail Russia’s access to foreign technological exports like semiconductors, computers, telecommunications, and other information technology (IT) equipment. This includes items manufactured outside of the United States but produced using U.S. machinery, software, or blueprints. Please let us if you have any questions. IPC Contact: Ken Schramko.

U.S. Government Seeks Comment on Chinese Import Restrictions: The U.S. Department of Homeland Security (DHS) recently published a Federal Register Notice seeking public comment on legislation implementing new Chinese import restrictions. The legislation, called the Uyghur Forced Labor Prevention Act (UFLPA), restricts the importation of Chinese goods that are produced in the Xinjiang Uyghur Autonomous Region (Xinjiang) with forced labor. The public comment period has a deadline of March 10, and the new restrictions are set to come into effect on June 21. Let us know if these restrictions would affect your business. IPC Contact: Ken Schramko.

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.

HELP US SPREAD THE WORD ON SOCIAL MEDIA

Join IPC on March 17 for “Eco-design for a Circular Economy: Best Practices in the Electronics Industry” webinar. Expert speakers and thought leaders will help you identify strategies for success, and get a grip on realistic and achievable eco-design action items. Register for webinar here.		What are some of the challenges facing the electronics manufacturing industry, from the board room to the shop floor? From factory modernization to environmental stewardship, John Mitchell, IPC president and CEO, provides insight into the trends that will define the financial growth and technological progress of this rapidly changing industry. View John's IPC APEX EXPO keynote here.

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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