IPC Global Advocacy Report

2/17/2023

Dear IPC Members:

I hope you and yours are doing well.

Our advocacy work in 2023 is just beginning, and IPC is making the industry’s voice heard on issues from supply chain resiliency, to toxic substances, to sustainability. Read on below and get ready for several opportunities to make your voice heard in the weeks and months ahead.

This weekly newsletter is a snapshot of the top issues we’re working on for you all over the world, designed to be scanned in under five minutes. Please let us know if you have any questions or suggestions about our advocacy work.

All the best,

Chris Mitchell
Vice President, Global Government Relations

 

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

  • CHIPS Act Funds to Benefit Smaller Firms, Circuit-Board Companies
  • EU Parliament Addresses Entire Electronics Ecosystem in EU Chips Act

QUOTE OF THE WEEK 

  • IPC’s Suhani Chitalia on What Industry Needs to Know About PFAS

IPC ADVOCACY AND YOU

  • Industry Advances in a New Era at IPC APEX EXPO 2023
  • How Can Government Help or Hurt You in 2023?

DEFENSE AND SECURITY

  • NDIA Report Finds Policies and Investments Misaligned with Defense Needs

ENVIRONMENT AND HEALTH

  • How is the Electronics Manufacturing Industry Addressing Sustainability?
  • EPA Proposes to Block Over 300 PFAS on TSCA Inventory

TRADE AND SUPPLY CHAIN

  • Reps. Eshoo and Moore Urge DoD to Bolster PCB and IC Substrate Manufacturing
  • U.S. CHIPS Program Taking Shape

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TOP NEWS OF THE WEEK

CHIPS Act Funds to Benefit Smaller Firms, Circuit-Board Companies: U.S. Commerce Secretary Gina Raimondo confirmed in a recent interview that CHIPS Act funds will go to “smaller firms,” including “circuit-board companies.” We are pleased to see Sec. Raimondo taking action to support the electronics manufacturing industry, and we are pleased to see IPC’s message is getting through. In order to achieve the goals of the CHIPS Act, the U.S. Government must invest in the entire electronics manufacturing ecosystem, including printed circuit boards (PCBs) and IC substrates. Listen to the full interview here. IPC Contact: Chris Mitchell.

EU Parliament Addresses Entire Electronics Ecosystem in EU Chips Act: The European Parliament this week adopted legislative texts that encompass the entire electronics manufacturing ecosystem, including chips “packaging,” printed circuit boards (PCBs), and IC substrates. The legislation, called the European Chips Act, aims to build Europe’s supply chain resiliency and security, but a “silicon-to-systems” approach is needed to further strengthen the bloc’s autonomy. IPC urges the adoption of a final package that includes policy support and funding for related parts of the industrial base and remains committed to working with European institutions and other stakeholders to advance a strong and resilient electronics industry in Europe. Read more in an IPC blog. IPC Contact: Chris Mitchell.

 

QUOTE OF THE WEEK

“In fact, if you look in your home, you are likely to find dozens of products that potentially contain PFAS.”
IPC Environmental Regulatory Affairs Manager Suhani Chitalia explained why per- and polyfluorinated substances (PFAS) are so widely used and why industry needs to be prepared for possible upcoming bans in a new IPC blog.

 

IPC ADVOCACY AND YOU

Industry Advances in a New Era at IPC APEX EXPO 2023: IPC APEX EXPO 2023 was a resounding success with over 6,900 attendees and 375 exhibitors showcasing cutting-edge technology in electronics manufacturing. This year’s show, which had a strong focus on smart factories, printed circuit board (PCB) fabrication and materials, and high-density interconnects, was fueled by the possibilities of new advances in the industry. Read our full recap of the event here, and we hope to see you Anaheim, California for IPC APEX EXPO 2024! IPC Contact: Chris Mitchell.

How Can Government Help or Hurt You in 2023? IPC is conducting a survey to gather information on the top concerns of electronics manufacturing professionals like you and how government policies can either help or hurt you in the next few years. The survey, which will help shape IPC's advocacy efforts in 2023, takes only a few minutes to complete and is a great opportunity to voice your concerns and shape future policies. Read a recent IPC blog about how you can be involved in IPC advocacy in 2023. IPC Contact: Jeff Goldberg.

 

DEFENSE AND SECURITY

NDIA Report Finds Policies and Investments Misaligned with Defense Needs: A new report released by the National Defense Industrial Association (NDIA) found that U.S. national security policies and financial investments are not aligned with the defense industrial base's needs for great power competition. The report revealed that several components of a resilient industrial base have declined, while budget and economic instability, labor challenges, and limited surge capacity are also headed in the wrong direction. It also highlighted challenges faced by small- and medium-sized businesses (SME), including regulations required to work with the U.S. Department of Defense (DoD). IPC Contact: Chris Mitchell.

 

ENVIRONMENT & HEALTH

How is the Electronics Manufacturing Industry Addressing Sustainability? IPC is taking the lead in helping electronics manufacturers prioritize sustainability. IPC recognizes that the industry needs to focus on sustainability issues, such as greenhouse gas emissions, life cycle management of products, and supply chain risks. In response, IPC is developing a sustainability strategic plan that includes convening a Sustainability for Electronics Leadership Team and conducting an industry-wide Materiality Assessment. Read more about the IPC Sustainability Initiative in the inaugural issue of IPC Community. IPC Contact: Kelly Scanlon.

EPA Proposes to Block Over 300 PFAS on TSCA Inventory: On January 26, the U.S. Environmental Protection Agency (EPA) proposed a significant new use rule (SNUR) that would block the manufacturing or processing of approximately 330 per- and poly-fluoroalkyl substances (PFAS) listed as “inactive” under the Toxic Substances Control Act (TSCA). The rule, the latest of several measures the EPA is taking to regulate PFAS chemicals, will require companies to file an application before any additional manufacture, import, or processing of listed chemical substances. Please let us know if you have any questions; comments close on March 27. IPC Contact: Suhani Chitalia.

 

TRADE AND SUPPLY CHAIN

Reps. Eshoo and Moore Urge DoD to Bolster PCB and IC Substrate Manufacturing: U.S. Reps. Anna Eshoo (D-CA) and Blake Moore (R-UT) recently called on the U.S. Department of Defense (DoD) to use the Defense Production Act (DPA) to increase domestic production of printed circuit boards (PCBs) and integrated circuit (IC) substrates. With over 50% of PCBs being imported from China, they said it is critical that the DoD increase domestic production and ensure the use of electronics from trusted sources. Read the full letter here, and read my full report on USG efforts to help fund the PCB industry alongside the semiconductor industry in I-Connect007. IPC Contact: Chris Mitchell.

U.S. CHIPS Program Taking Shape: The U.S. Department of Commerce is currently ramping up efforts to implement the CHIPS and Science Act, passed last year. The CHIPS for America team is working to provide funding opportunities and application processes for chipmakers, material suppliers, and research and development (R&D) facilities throughout the year. The team is also working with the U.S. Economic Development Administration (EDA) to launch the Tech Hubs program to drive innovation and growth. Stay tuned for more information. IPC Contact: Chris Mitchell.


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Is a recession looming in Europe and the United States? Industry intel from IPC’s January Economic Outlook report indicates “yes” to a recession in 2023, but the timing remains uncertain.

Around 75% percent of electronics manufacturers are experiencing rising material costs, while 74% indicate that labor costs are rising. More details from IPC’s January Sentiment of the Global Electronics Manufacturing Supply Chain can be found 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.

Subscribe to IPC Global Advocacy Report: If you’re a member of IPC, manage your e-mail preferences and opt in to receive “Advocacy” updates. If you are not an IPC member — or you’re not sure — please send a note to friends@ipc.org, and our staff will add you to the list.

Follow us on Twitter and LinkedIn.

Contact one of us if you have any questions or insights to contribute.

See prior editions of Global Advocacy Report.

Explore our IPC Government Relations information online.

 
IPC Global Advocacy Report
IPC Global Advocacy Report

1/20/2023

Dear IPC Members:

Are you getting ready for IPC APEX EXPO 2023? We hope to see you in San Diego next week for the fastest-growing association show in the United States. If you can’t attend, watch this space and I-Connect007 for the top takeaways.

Meanwhile, our policy advocacy efforts to start the new year are in full swing in Washington, Brussels, and beyond. Below are the latest highlights, and we welcome your questions and suggestions.

Chris Mitchell
Vice President, Global Government Relations

 

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

  • Parliament Plans Votes on EU Chips Act
  • IPC Builds Out Sustainability Initiative

QUOTE OF THE WEEK 

  • IPC’s Matt Kelly Shares What EMS Companies Should Know About Advanced Packaging

IPC ADVOCACY AND YOU

  • IPC Welcomes New Director of North American Government Relations
  • How Can Government Help or Hurt You in 2023?

ENVIRONMENT AND HEALTH

  • IPC Responds to EPA on PFAS Reporting Requirements
  • Commission to Consider Renewal of EU RoHS Exemptions
  • EU Proceeds with Proposal to Ban Products Made with Forced Labor

TRADE AND SUPPLY CHAIN

  • Volatility and Uncertainty Expected in 2023

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US


TOP NEWS OF THE WEEK

Parliament Plans Votes on EU Chips Act: 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, Resustainasearch, and Energy (ITRE) is currently leading the negotiations on the draft legislation, called the EU Chips Act, and is now preparing for a vote on January 24. The vote on the legislation will precede a wider parliament vote expected on February 13. IPC continues to actively participate in the process and is advocating for language that supports advanced packaging and promotes innovation in the electronics industry. IPC Contact: Alison James.

IPC Builds Out Sustainability Initiative: In 2022, IPC s Board of Directors approved a proposal to initiate an association-wide sustainability initiative. The initiative, called Sustainability for Electronics, will provide direction and ensure realistic and appropriate tools for the electronics manufacturing industry. We expect to provide regular communications to the industry including insights into emerging sustainability policies, details on the relevant and material sustainability topics, and information on the utility of existing IPC standards to achieve sustainability goals. Check out our new page to learn more and give it a follow on LinkedIn! IPC Contact: Kelly Scanlon.  

 

QUOTE OF THE WEEK

"Advanced packaging is critical because the combination of performance, reliability, cost, and functionality that future consumers are demanding can only be met by integrating silicon chips through an advanced packaging process."
Technology Officer and Vice President, Technology Solutions Matt Kelly provides an in-depth look at advanced packaging and the approach EMS companies should consider in the latest issue of SMT007.

 

IPC ADVOCACY AND YOU

IPC Welcomes New Director of North American Government Relations: IPC is pleased to welcome Jeffrey Goldberg as director of North American government relations in IPC’s Washington office. In this role, Jeff will help lead our ambitious North American policy agenda at a time of increased interest among policymakers in the electronics supply chain. During his career, Goldberg has done stints at the National Defense Industrial Association, Rolls-Royce, Raytheon, Aerospace Industries Association, and U.S. Departments of Commerce and Defense. He’s been educated the U. of Virginia, Penn State, and Yale. Please connect with Jeff on LinkedIn, learn more about him in IPC’s press release, and drop him a line to share your advocacy concerns. IPC contact: Jeff Goldberg.

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.

 

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.

Commission to Consider Renewal of EU RoHS Exemptions: The Bio Innovation Service recently published their final report on the renewal of 11 exemptions to the EU Restriction of Hazardous Substances (RoHS). The report notably recommended not to renew either exemptions 15 or 15(a), covering "lead in solders to complete a viable electrical connection between the semiconductor die and carrier with integrated circuit flip chip packages." The recommendations will now be considered by the EU Commission before it moves to formally revise the 11 exemptions, which is expected to occur later this year. We welcome your feedback regarding the reports recommendations, and thank you to Keysight Technologies Product Environmental and Regulatory Compliance Director Robert Tait for sharing expert insights on this topic. 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.

 

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.


HELP US SPREAD THE WORD ON SOCIAL MEDIA

 

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.

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. If you have questions, please contact the Auburn ICAMS team.


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.

Subscribe to IPC Global Advocacy Report: If you’re a member of IPC, manage your e-mail preferences and opt in to receive “Advocacy” updates. If you are not an IPC member — or you’re not sure — please send a note to friends@ipc.org, and our staff will add you to the list.

Follow us on Twitter and LinkedIn.

Contact one of us if you have any questions or insights to contribute.

See prior editions of Global Advocacy Report.

Explore our IPC Government Relations information online.