| Having just passed the annual defense authorization bill and a one-week stopgap bill to fund the government through December 23, legislators are now laboring over a wide-ranging, $1.7 trillion FY2023 omnibus package. We will let you know if there are any provisions relevant to the electronics manufacturing industry.
Your advocacy efforts will help us keep up momentum going into 2023. Head over to the IPC Action Alert Center to get involved, and please let us know if you have any questions and suggestions.
Also, this will be our last Global Advocacy Report until the week of January 2. 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
The Headlines at a Glance:
TOP NEWS OF THE WEEK
- IPC Goes Deep on Advanced Packaging in 2022
- URGENT — IPC Seeks Data on Industry PFAS Use
IPC ADVOCACY AND YOU
- Top Congressional Staff Meet with IPC Members on CHIPS Act and More
- Pledge to Help IPC Advocate for Our Industry in 2023-24
EDUCATION AND WORKFORCE
- IPC Addresses Challenges Facing Factories of the Future
ENVIRONMENT AND HEALTH
- EPA Proposes Changes to TSCA Fees Rule
EUROPEAN UNION
- EPA Proposes Changes to TSCA Fees Rule
- Green Transition, Energy Prices Driving EU Industrial Policy Debate
- EU Council Adopts New Reporting Rules
TRADE AND SUPPLY CHAIN
- Industry Continues to Face High Costs
HELP US SPREAD THE WORD ON SOCIAL MEDIA
KEEP IN TOUCH WITH US
TOP NEWS OF THE WEEK
IPC Goes Deep on Advanced Packaging in 2022: Over the past year, IPC expanded its efforts to educate U.S. and European policymakers on the importance of investing in the entire semiconductor supply chain — including advanced packaging and printed circuit boards (PCBs) — if governments are serious about supply chain security and resiliency. Our message to policymakers is that building a more robust, domestic ecosystem for electronics will require four key policy decisions:
1. Invest in advanced packaging capacity;
2. Invest in research and development (R&D);
3. Promote supply chain partnerships instead of supplier relationships; and
4. Make strategic decisions on what we are building and for whom.
Looking ahead to 2023, IPC will continue to advocate for the entire semiconductor supply chain in every policy making arena. If you are interested in supporting our efforts, please read more in a new IPC blog. IPC Contact: Chris Mitchell.
URGENT — IPC Seeks Data on Industry PFAS Use: In anticipation of an upcoming EU REACH restriction on per- and polyfluoroalkyl substances (PFAS), IPC is asking industry to look into their supply chains and better understand their PFAS use. The electronics industry has a timely opportunity to participate in a European Chemicals Agency (ECHA) socioeconomic study (SEA) that will allow industry to seek critical exemptions to the restriction. Without data and information on PFAS use in the electronics industry, there is an understanding by officials that a complete ban on PFAS would have no impacts to electronics manufacturing. Please let us know if you would like more information on the study or if you would like to participate. IPC Contact: Suhani Chitalia.
IPC ADVOCACY AND YOU
Top Congressional Staff Meet with IPC Members on CHIPS Act and More: IPC members who attended the North America Executive Forum call this month met with two of Capitol Hill’s top staff members on electronics industry policy concerns. The two staffers — who work for Sen. Roger Wicker (R-MS), the top-ranking Republican on the Senate Commerce, Science, and Transportation (CST) Committee, and the committee’s Space and Science Subcommittee — provided the Hill’s perspectives on CHIPS Act implementation, underscoring Congress’s intent that the program be leveraged to support the semiconductor supply chain of which the printed circuit board (PCB) fabrication and advanced electronics assembly are key parts. They also encouraged industry engagement with the relevant federal agencies during this key period of the CHIPS Act implementation. IPC Contact: Chris Mitchell.
Pledge to Help IPC Advocate for Our Industry in 2023-24: The IPC Government Relations (GR) team is composed of experienced professionals working for you year-round. But our success depends on active participation from IPC members like you. With 2022 coming to a close, our 2023 advocacy efforts are coming up soon. Please click here to confirm your contact details and pledge to stay involved in IPC advocacy. We will send you information and timely action alerts, and we will make it easy to communicate with your elected officials with just a few clicks. IPC Contact: Chris Mitchell.
ENVIRONMENT & HEALTH
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EPA Seeks Comment on PFAS Reporting Requirements: On November 25, the U.S. Environmental Protection Agency (EPA) released an Initial Regulatory Flexibility Analysis (IRFA) seeking comment on proposed reporting and recordkeeping requirements for per- and polyfluoroalkyl substances (PFAS) under the Toxic Substance Control Act (TSCA). The IRFA also updated the estimated costs for the proposed rule from $10.8 million to $875 million, which was due to the significant costs the rule would incur on small businesses. Please let us know if your company will be affected impacted by the proposed rule and if you have any questions. Comments are due by December 27. IPC Contact: Suhani Chitalia.
EPA Proposes Changes to TSCA Fees Rule: The U.S. Environmental Protection Agency (EPA) recently released a proposed rule that would significantly increase fees for EPA-initiated risk evaluations of existing chemicals under the Toxic Substances Control Act (TSCA). The EPA undergoes 20 to 30 risk evaluations each year, and even if the current list of chemical substances does not apply to your company, future lists may apply, and you may be obligated to pay at that time. In March 2021, IPC responded to the EPA’s proposed rule and acknowledged the importance of the fee rule to the electronics industry. The EPA will accept public comments on the proposed rule until January 17, 2023. IPC Contact: Kelly Scanlon.
EDUCATION AND WORKFORCE
IPC Addresses Challenges Facing Factories of the Future: Making the transition to Factory of the Future and creating a workplace culture that embraces change and innovation is critical for electronics manufacturers to remain competitive in the global economy, according to a new IPC report. The report tapped a roundtable of electronics industry experts who shared insights on how to implement smart manufacturing amid various challenges facing the industry. IPC continues to call on government to do its part, too, with supportive policies in the areas of taxation, investment, research and development (R&D), workforce, and more. Let us know if you have any questions. IPC Contact: Chris Mitchell.
EUROPEAN UNION
Green Transition, Energy Prices Driving EU Industrial Policy Debate: European Commission President Ursula von der Leyen called for a more subsidy-based EU industrial policy ahead of an end-of-year EU summit held this week. In the coming year, the commission is expected to consider relaxing state aid rules for green tech and implementing measures to boost “public investment to accelerate the energy transition” through a new European Sovereignty Fund, ABC News reports. This announcement came in the wake of ongoing disagreements over U.S. tax credits on electric vehicles and other green businesses seen as discriminatory by the European Union. While next steps are still under discussion, this week’s summit greenlights the commission to propose an EU-level strategy to boost competitiveness and productivity, which is expected in early 2023, Reuters reports. IPC Contact: Alison James.
EU Council Adopts New Reporting Rules: The EU Council recently approved a rule aiming to strengthen the reporting requirements for sustainability information of certain large companies. The Corporate Sustainability Reporting Directive (CSRD) will require companies to publish detailed information on sustainability matters, including climate change, human rights, and other governance factors. The CSRD is expected to affect the electronics industry with regards to resources and reporting and transparency efforts across the value chain. Let us know if you have any questions. IPC Contact: Kelly Scanlon.
TRADE AND SUPPLY CHAIN
Industry Continues to Face High Costs: High costs are a major contributor to the murky global manufacturing sentiment, according to IPC’s November Global Sentiment Survey. The latest report shows that 80% of electronics manufacturers are experiencing rising material costs, while 77% indicate that labor costs are on the rise. Meanwhile, ease of recruitment, profit margins, and inventory from suppliers are declining. Read the full report here and let us know if you have any questions. IPC Contact: Chris Mitchell.
HELP US SPREAD THE WORD ON SOCIAL MEDIA
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Stating that “the economic slowdown has brought demand and production back into balance and enabled many manufacturers to focus on backlogs,” IPC Chief Economist Shawn DuBravac comments on IPC’s November Economic Report. |
Congratulations to IPC’s Kelly Scanlon on her promotion to lead sustainability strategist for IPC’s industry sustainability programs. Dr. Scanlon will work closely with electronics manufacturing industry leaders to complete a materiality assessment that will be the basis for an industry-backed, evidence-based sustainability plan. |
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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