IPC Global Advocacy Report

12/1/2023

Dear IPC Members:  

It’s been an informative and productive few weeks, both inside and outside of IPC.

On Wednesday, executives from IPC’s electronics manufacturing services member companies joined me, IPC President John Mitchell, and IPC Senior Director for North American Government Affairs Rich Cappetto for a summit in Washington, D.C., to discuss strategies for a strong advocacy platform for the industry.

While in Washington, D.C., John met with members of Congress from key districts and committees to discuss the future of electronics manufacturing and the need for an ecosystem approach to CHIPS Act implementation.

In the U.S., the Commerce Department released a document outlining a strategy for the advanced packaging manufacturing program, while Pres. Biden convened the inaugural meeting of a new Council on Supply Chain Resilience.

 

EMS Summit

In the EU, the Chips Joint Undertaking launched this week, pivoting the continent’s focus to a more comprehensive silicon-to-systems approach for electronics manufacturing.

Also this week, microelectronics companies who were finalists in the first Defense Business Accelerator (DBX) made their pitches for U.S. Department of Defense awards at this week’s Defense TechConnect Innovation Summit. Look for more about the winners soon from IPC’s subsidiary, U.S. Partnership for Assured Electronics (USPAE).

Please read on to learn more about our work on the issues affecting the industry, and let us know your thoughts and questions.

All the best,

Chris Mitchell
Vice President, Global Government Relations

 

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

  • IPC Meets with Members of Congress to Discuss Industry’s Future
  • IPC Applauds New U.S. Strategy for Advanced Packaging

QUOTE OF THE WEEK 

  • U.S. Commerce Official on the Vision for Advanced Packaging  

ENVIRONMENT, HEALTH, AND SUSTAINABILITY

  • Comment Deadline Approaches on Proposed EPA Rule to Restrict Trichloroethylene Use

EUROPEAN UNION

  • Chips Joint Undertaking Launches

INDIA

  • India’s $2.3B Electronics Manufacturing Initiative Attracting Investments

TRADE AND SUPPLY CHAIN

  • U.S. President Takes Actions on Supply Chain Resilience
  • Dept. of Defense Awards $39.9M to Calumet for Substrate Work

WORKFORCE DEVELOPMENT

  • IPC Earns Federal Recognition for Apprenticeship Standards

UPCOMING EVENTS

  • PFAS: Global Regulations, Restrictions, and Alternatives, Dec. 5
  • Global Chemicals Management for Electronics 2023, Dec. 6-7
  • IPC WinterCom 2024, Jan. 22-25
  • WHMA Global Leadership Summit, Feb. 13-15

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TOP NEWS OF THE WEEK

IPC Meets with Members of Congress to Discuss Industry Future: IPC President and CEO John W. Mitchell met with key members of the U.S. House of Representatives this week on the heels of a summit convened by IPC with leaders of the electronics manufacturing services (EMS) sector. In the meetings, John promoted the need for a strong and diverse workforce development strategy, spotlighting the skills gap that could hinder any growth in the industry facilitated by federal investments. He also advocated for a better focus on the entire electronics manufacturing ecosystem, promoting the “silicon-to-systems” approach to building resiliency in the U.S. electronics supply chain. John and others from IPC met with U.S. Rep. Brad Schneider (IL-10th District), an industrial engineer and management consultant whose district includes IPC’s headquarters; U.S. Rep. Jay Obernotle (CA-23rd District), a computer engineer; and U.S. Rep. Mike Collins (GA-10th District), chairman of the House Committee on Science, Space, and Technology, subcommittee on Research and Technology, with whom John discussed some of the innovative work of IPC member Absolics in the congressman’s district in Covington, Ga. IPC contact: Rich Cappetto.

IPC Applauds New U.S. Government Strategy for Advanced Packaging: On Nov. 20, the U.S. Commerce Department released the “Vision for the National Advanced Packaging Manufacturing Program,” under which approximately $3 billion from the CHIPS and Sciences Act will be used to drive U.S. leadership in advanced packaging, with an initial funding opportunity to be announced in early 2024. IPC has been the leading advocate of a “silicon-to-systems” approach to CHIPS Act implementation, and we’re encouraged by this vision to focus on growth in advanced packaging, PCB fabrication, and electronics assembly. While the plan is not fully to the level needed to truly strengthen the domestic electronics supply chain, it’s a foundation upon which IPC will continue to advocate for a robust ecosystem approach to electronics manufacturing investments. IPC Contact: Chris Mitchell.

 

QUOTE OF THE WEEK

“We’ve envisioned that, by the end of the decade, the United States would be home to multiple high-volume advanced packaging facilities and will be a global leader in commercial-scale advanced packaging for the most sophisticated chips made in the world.”

 Under Secretary of Commerce Laurie Locascio in an interview about the U.S. Commerce Department’s Vision for the National Advanced Packaging Manufacturing Program.  

 

ENVIRONMENT, HEALTH, AND SUSTAINABILITY

Deadline Dec. 15 for Comments on New U.S. EPA Trichloroethylene Rule: The deadline for comments on the U.S. Environmental Protection Agency’s proposed risk management rule prohibiting the import, manufacture, processing, and distribution of trichloroethylene (TCE), a chlorinated solvent, is Friday, Dec. 15. The rule, under the Toxic Substances Control Act (TSCA), would also cover the use and disposal of TCE or products containing it, as well as mandate recordkeeping requirements and workplace safety standards. The EPA is proposing the rule to address “the unreasonable risk of injury to human health” from TCE. Prohibited applications would include the industrial and commercial use of TCE in naval electronics systems as well as cleaning practices that require open-top and closed-loop batch vapor degreasing and aerosol spray degreasing. Compliance would start one year after publication of the final rule; however, there would be longer timeframes for phasing out some industrial and commercial uses, such as on naval vessels. IPC Contact: Kelly Scanlon.

 

EUROPEAN UNION

Chips Joint Undertaking Launches: Following the official entry into force of the European Chips Act at the end of September, the Chips Joint Undertaking (Chips JU) – the public/private body managing the research, development, and innovation (R&D&I) projects at EU level – launched this week. The Chips JU succeeds the former Key Digital Technologies Joint Undertaking (KDT-JU) and will manage, among other items, “pillar 1” R&D&I activities under the European Chips Act.  IPC will be present at the launch meetings and will continue to highlight the importance of a full value supply chain approach to building capacities and capabilities in the region. IPC Contact: Alison James.

 

INDIA

India’s $2.3B Electronics Manufacturing Initiative Attracting Investments: On Nov. 3, Intel announced a partnership with eight electronic manufacturing companies (EMS) and original design manufacturers (ODM) to build complete entry-level laptops in India, a move that aligns with the government’s efforts to build out the country’s electronics manufacturing ecosystem and digital economy. As the world moves to diversify the global supply chain to mitigate the impact of disruptions from natural disasters and geopolitics, India has earmarked major incentives to build out the country’s electronics manufacturing capabilities. The $2.3 billion (Rs 17,000 crore) in incentives for local manufacturing is expected to create more than $73 billion in manufacturing activity over six years. “[Intel’s announcement] aligns with Prime Minister Narendra Modi’s vision to drive India’s Digital Economy to $1 trillion and enable the electronics manufacturing ecosystem to contribute $300 billion by 2025-26,” said Rajeev Chandrasekhar, Union Minister of State for Electronics and IT. Read more about the announcement.

 

TRADE AND SUPPLY CHAIN

U.S. President Takes Actions on Supply Chain Resilience: This week, U.S. President Joe Biden convened the inaugural meeting of the White House Council on Supply Chain Resilience, pulling together the secretaries and representatives from multiple federal agencies to advance a long-term, government-wide strategy for building enduring supply chains in all industries. Part of the council’s charge will be to produce a quadrennial review of the nation’s supply chain, including in sectors critical to national and economic security. IPC applauds the strategy’s emphases on solidifying the U.S. defense industrial base and enhancing international cooperation. IPC welcomes this executive focus on the U.S. supply chain as an antidote to the extreme disruptions we’ve experienced in recent years from pandemics, geopolitics, and natural disasters. Read more about the Council’s charge and responsibilities.

Defense Department Seeds Calumet Substrate Work: The U.S. Department of Defense awarded $39.9 million to IPC member Calumet Electronics through the Defense Production Act Investment Program to produce high-density build-up (HDBU) substrates. The award announced Nov. 15 followed the state of Michigan’s announcement providing incentives for Calumet’s new IC substrate factory, the first in the United States. The DOD award, a good first step for the industry in the U.S., will enable Calumet to scale up engineering, tooling, and manufacturing operations to establish domestic production capabilities for HDBU substrates. Read more about the announcement.

 

WORKFORCE DEVELOPMENT

U.S. Department of Labor Approves IPC Apprenticeship Standards: On Nov. 15, IPC President and CEO John W. Mitchell was hosted by Megan Baird, Deputy Administrator of the Office of Apprenticeship at the U.S. Department of Labor, for a signing ceremony to recognize IPC’s National Program Standards of Apprenticeship. These standards are the first in the electronics industry to be approved on the federal level, recognizing our industry’s need for more skilled workers and IPC’s leadership in workforce training. Read more in this IPC Blog and learn how your company can get involved. IPC contact: Cory Blaylock.

 

UPCOMING EVENTS

PFAS: Global Regulations, Restrictions, and Alternatives: Virtual, Dec. 5. Presented by Chemical Watch, this one-day conference will address the latest regulatory developments around per- and polyfluoroalkyl and share advice on how to respond, including discussions about the rising market for PFAS-free alternatives. Registration is ₤495.

Global Chemicals Management for Electronics 2023: Virtual, Dec. 6-7. Presented by Chemical Watch, this two-day conference will provide an in-depth focus on regulatory updates and practice for the management of chemicals in electronics. On Dec. 6, Kelly Scanlon will moderate a panel on regulatory developments in the Americas and on PFAS, Dec. 7. IPC members receive a 15% discount on registration. E-mail events@chemicalwatch.com for more information.

IPC WinterCom 2024: Barcelona, Spain, Jan. 22-25. A new event to support IPC standards development committees in face-to-face sessions, WinterCom 2024 will convene colleagues from around the globe for a week of meetings. The event is free to both IPC members and non-members with an interest in IPC standards development. Register today!

WHMA Global Leadership Summit: Myrtle Beach, S.C., Feb. 13-15. Formerly the WHMA Annual Conference, the WHMA's Annual Global Leadership Summit is a networking event for executives representing wire harness manufacturers, OEMs, and suppliers for companies that build wiring harnesses and cable assemblies. A dynamic event pulling together representatives from across the industry, keynote presentations will address leadership and workplace culture as well as emerging trends reshaping the electronics industry. Register by Dec. 8 for advanced pricing.

 

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IPC welcomes the actions outlined today by the U.S. Government to strengthen supply chains critical to America’s economic and national security.

The COVID-era disruptions experienced by the U.S. electronics manufacturing industry spotlight the extent to which the United States has outsourced its industrial base impacting everything from automobiles to aircraft to consumer products. The investments being made under the CHIPS and Science Act, Defense Production Act, and Inflation Reduction Act must cover more than just a few key products such as semiconductors; they also need to include the full electronics manufacturing system that enables semiconductor chips to function including printed circuit boards (PCBs) and integrated circuit (IC) substrates.

IPC staffers recently met with Representative Brad Schneider (IL-10th District), an industrial engineer and management consultant whose district includes IPC headquarters, to discuss developing an electronics workforce and a silicon-to-systems approach to improving the electronics manufacturing industry.

Schneider met in DC with Chris Mitchell, VP, global government relations; Rich Cappetto, senior director, North American government relations; and John W. Mitchell, IPC president and CEO. 

 

KEEP IN TOUCH WITH US 

Meet the IPC GR Team: Whether it is engaging with policymakers in the Americas, the European Union, or Asia, 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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