Dear IPC Members: Happy November! IPC’s advocacy work is continuing as usual. This week, IPC released the latest edition of our Economic Outlook Report and Global Sentiment Survey, and the industry outlook, unfortunately, remains overcast at best.

As we get ready for 2023, we ask you again to help us plan for next year by taking our five-question survey, which will provide us valuable direction for our government relations (GR) efforts in the coming year. With your help, we can start the new year in a strong position to advance our advocacy goals.

All the best,

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• Electronics Manufacturers Say Recession Is Inevitable

QUOTE OF THE WEEK 

• Bloomberg’s Thomas Black Calls for U.S. Support of the Entire Semiconductor system

ENVIRONMENT AND HEALTH

• Industry Seeks Extension on Maine PFAS Reporting Requirement
• Philippines Releases New Regulations on Two Chemicals

EUROPEAN UNION

• EU and U.S. Trade Tensions Placing Strain on Relationship
• Commission Opens Consultation on Raw Materials Legislation
• Commission Launches Survey on European Semiconductor Value Chain

TRADE AND SUPPLY CHAIN

• Build It and They Will Come

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US

TOP NEWS OF THE WEEK

Electronics Manufacturers Say Recession Is Inevitable: Most electronics manufacturing industry executives see a recession as inevitable, according to IPC’s October Monthly Economic Outlook and Global Sentiment Survey. The latest reports shows that 45% of respondents believe the economy will enter a recession in 2023, while 27% believe we are already in a recession, Meanwhile, tight financial conditions and an uncertain economic outlook are making both businesses and consumers more cautious. Read the full report here, and let us know if you have any questions. IPC Contact: Ken Schramko.

QUOTE OF THE WEEK

“It doesn’t make any sense for the U.S. government to invest billions of dollars to support the manufacturing of chips if they need to be shipped to Asia anyway to be completed. Each stage of production should be readily available to make it much easier to ramp up if supplies were disrupted instead of having to start from scratch.” – Bloomberg News’ Thomas Black asserts that the United States needs to bolster the entire semiconductor system - not just chips. IPC agrees!

ENVIRONMENT & HEALTH

Industry Seeks Extension on Maine PFAS Reporting Requirement: According to the Maine Department of Environmental Protection (DEP), exemptions and extensions to the state’s per- and polyfluoroalkyl substances (PFAS) reporting requirement will not be accepted until a final draft of the rule is released in April 2023. However, companies not granted extensions will still have to report their PFAS use in products beginning January 1, 2023. The deadline to sign onto the Maine Chamber of Commerce letter requesting an extension is November 28. IPC Contact: Suhani Chitalia.

Philippines Releases New Regulations on Two Chemicals: The Philippines Department of Environment and Natural Resources-Environmental Management Bureau (DENR-EMB) recently released Chemical Control Orders (CCO) for benzene and vinyl chloride, which are both relevant to electronics. CCOs prohibit, limit, or regulate the use, manufacture, import, transport, processing, storage, possession, and sales of certain chemicals. Electronics manufacturers should be aware if these chemicals are present in products and how the upcoming CCOs can impact production. Let us know if you have any questions or concerns. IPC Contact: Suhani Chitalia.

EUROPEAN UNION

EU and U.S. Trade Tensions Placing Strain on Relationship: EU trade ministers and U.S. Trade Representative (USTR) Katherine Tai met this week to address concerns over the new U.S. tax credits on electric vehicles. The ministers argued that the tax credits, which were implemented as part of the U.S. Inflation Reduction Act, “discriminates against EU producers because it offers tax breaks to consumers on such goods made in North America, but not for those made in the EU,” Reuters reports. The EU and United States established a task force to find a resolution on the issue, meanwhile, the EU/US Trade and Technology Council (TTC) is scheduled to meet next on December 5. IPC Contact: Alison James.

Commission Opens Consultation on Raw Materials Legislation: The European Commission recently launched a public consultation on the European Critical Raw Materials Act, which will seek to reduce the EU’s dependency on imported raw materials like lithium, cobalt, and rare earths. The legislation, expected to be presented in 2023, will also aim to strengthen EU supply chain while maintaining a sustainable, level playing field. The consultation is open until November 25. IPC Contact: Alison James.

Commission Launches Survey on European Semiconductor Value Chain: On October 10, the European Commission launched a consultation on the European semiconductor value chain. The consultation is the first step toward establishing a monitoring mechanism, introduced in the European Chips Act, that will help Europe anticipate future shortages and supply chain risks in the semiconductor supply chain. The consultation consists of two surveys, one for suppliers – including printed circuit board (PCB) companies – and one for end users; both surveys are open until next Friday, November 11. Let us know if you have any questions. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

Build It and They Will Come: A recent IPC report showed that electronics manufacturing industry leaders are likely to purchase domestically available, advanced IC-package substrates and IC-package assembly from U.S. suppliers if it were cost-competitive. Only 6% of industry leaders reported that they would not to buy cost-competitive advanced IC substrates if they were available from U.S. suppliers. Let us know if you have any questions. IPC Contact: Chris Mitchell.

HELP US SPREAD THE WORD ON SOCIAL MEDIA

IPC’s latest Environment, Health, and Safety (EHS) Forum featured insights from Toyota North America’s Drew Rak on their environmental policy priorities and how they affect the electronics supply chain. Members engaged in a robust conversation on IPC policy priorities including PFAS, EU REACH, RoHS, and sustainability. Let us know if you would like to learn more and join us for the next call.		“The symposium succeeded in exposing the need to support advanced packaging in all regions of the globe.” Detailed coverage of IPC’s Advanced Packaging Symposium can be found in the latest issue of I-Connect's SMT007. You can also find key interviews and takeaways with IPC’s Matt Kelly, Techsearch International’s E. Jan Vardaman, Calumet Electronics’ Todd Brassard, Intel’s Tom Rucker, and more.

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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