IPC Global Advocacy Report

1/13/2023

Dear IPC Members:

Please enjoy this week’s top stories affecting the electronics manufacturing industry. Our Government Relations (GR) team is proud to advocate on your behalf.

Thank you for your participation and for helping us make a difference.

Chris Mitchell
Vice President, Global Government Relations

 

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

  • Deadline Soon — EPA Proposes Changes to TSCA Fees Rule
  • How Can Government Help or Hurt You in 2023?

QUOTE OF THE WEEK 

  • Bloomberg’s Thomas Black Calls for Support of the Entire Electronics Ecosystem

IPC ADVOCACY AND YOU

  • Survey: How Smart are Your Manufacturing Processes?

ENVIRONMENT AND HEALTH

  • IPC Responds to EPA on PFAS Reporting Requirements
  • EU Proceeds with Proposal to Ban Products Made with Forced Labor

EUROPEAN UNION

  • EU Chips Act Negotiations Continue in Parliament

TRADE AND SUPPLY CHAIN

  • Volatility and Uncertainty Expected in 2023
  • Industry Continues to Face High Costs

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US


TOP NEWS OF THE WEEK

Deadline Soon — 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 might, and you could be obligated to pay. IPC is working collaboratively with other associations to submit comments by next Tuesday, January 17. If your company has any insight on how TSCA fees can impact your business, please contact us. IPC Contact: Suhani Chitalia.

How Can Government Help or Hurt You in 2023? IPC is conducting a survey to gather information on the top concerns of electronics manufacturing industry members and how government policies can either help or hurt their companies in the next few years. The survey, which will help shape IPC's advocacy efforts in 2023, will only take a few minutes to complete and is a great opportunity for industry members to voice their concerns and shape future policies. Read a new IPC blog for more on our 2022 advocacy efforts and how you can get involved in 2023. IPC Contact: Chris Mitchell.

 

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’s Thomas Black argues that the USG should prioritize the domestic production of ALL stages of chip manufacturing to make the supply chain more resilient. IPC agrees and has lots of data to back it up.

IPC ADVOCACY AND YOU

Survey: How Smart are Your Manufacturing Processes? IPC has partnered with Auburn University to conduct a study that can significantly help our nation’s manufacturing industries, and we would like your help. Auburn’s Interdisciplinary Center for Advanced Manufacturing Systems (ICAMS) is working to help manufacturers engage with technology to improve competitiveness and profitability. You can access the survey here. If you have questions, please contact the Auburn ICAMS team.

 

ENVIRONMENT & HEALTH

IPC Responds to EPA on PFAS Reporting Requirements: IPC highlighted the costs and impacts of reporting and recordkeeping requirements for per- and polyfluoroalkyl substances (PFAS) under the Toxic Substance Control Act (TSCA) in December 27 comments to the U.S. Environmental Protection Agency (EPA). IPC also cited complexities in electronics supply chains that would make the proposed reporting and recordkeeping difficult. The EPA’s Initial Regulatory Flexibility Analysis (IRFA) focused on cost estimates for the proposed rule - particularly its effect on small businesses. Let us know if you have any questions. IPC Contact: Suhani Chitalia.

EU Proceeds with Proposal to Ban Products Made with Forced Labor: The European Commission recently released a final version of a working document on prohibiting products in the EU market that are made with forced labor. The working document, which provides evidence and justification for the proposed policy, is linked to the forced labor initiative proposed in September 2022. The proposal is in line with EU’s efforts around due diligence, so we expect further discussions and decisions by policymakers in 2023. Read IPC’s recent blog for more on the goals and timeline of the initiative. IPC Contact: Suhani Chitalia.

 

EUROPEAN UNION

EU Chips Act Negotiations Continue in Parliament: European legislators are continuing to negotiate on legislation to bolster the bloc’s competitiveness and resilience in semiconductor technologies and applications. The European Parliament’s Committee on Industry, Research, and Energy (ITRE) is currently leading the negotiations on the draft legislation, called the EU Chips Act, and are working through compromise amendments. IPC is actively participating in the process and is advocating for language that supports advanced packaging and promotes innovation in the electronics industry. IPC Contact: Alison James.

 

TRADE AND SUPPLY CHAIN

Volatility and Uncertainty Expected in 2023: IPC’s latest report on the global economic outlook suggests that COVID-19, Russia’s invasion of Ukraine, soaring global inflation rates, and recession fears were major contributors to the cloud of uncertainty and slower global economic growth we saw in 2022. We expect that volatility and uncertainty will continue to influence the narrative in the early months of the new year. For more on what might lie ahead, be sure to check out IPC Chief Economist Shawn DuBravac’s Monthly Economic Outlook Report. IPC Contact: Shawn DuBravac.

Industry Continues to Face High Costs: Industry demand is holding up despite a deteriorating economic outlook, while high costs are continuing to create challenging conditions for electronics manufacturers, according to IPC’s December Global Sentiment Survey. The latest report shows that 76% of electronics manufacturers are experiencing rising material costs, while 73% indicate that labor costs are on the rise. Meanwhile, ease of recruitment and profit margins are declining. Read the full report here, and let us know what you think governments ought to be doing about it. IPC Contact: Chris Mitchell.


HELP US SPREAD THE WORD ON SOCIAL MEDIA

 

In anticipation of an upcoming EU REACH restriction on per- and polyfluoroalkyl substances (PFAS), IPC is asking the electronics industry to look into their supply chains and better understand their PFAS use. This opportunity 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.

“Over the last year, IPC has stepped up its efforts to educate policymakers and other key audiences on the importance of investing in the entire semiconductor supply chain, including advanced packaging and PCBs, to achieve the goals of the CHIPS Act.” IPC Vice President of Global Government Relations Chris Mitchell blogs about IPC’s advocacy work on advanced packaging and what IPC members can expect in 2023.

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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