Dear IPC Members: I hope this message finds you well. This week's newsletter highlights the critical need for a U.S. pilot facility for manufacturing integrated circuit (IC) substrates to ensure the success of the CHIPS for America program. As outlined in a new report from the IPC Chief Technologist Council, advanced IC substrates are crucial for the production of semiconductors and are currently limited in the United States.

All the best,

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• CHIPS Act Success Hinges on Establishment of IC Substrate Pilot Facility

QUOTE OF THE WEEK 

• IPC’s Kelly Scanlon Comments on New IPC-led Council to Tackle Sustainability Challenges in Manufacturing

IPC ADVOCACY AND YOU 

• How Can Government Help or Hurt You in 2023?

ENVIRONMENT AND HEALTH

• New IPC Leadership Council to Address Industry Sustainability Challenges
• EPA Proposes to Block Over 300 PFAS on TSCA Inventory

EUROPEAN UNION

• EU Commission Adopts Legislation to Boost Competitiveness and Climate Neutrality
• EU Commission Seeks Input on Environmental Initiative to Reduce Product Impact

TRADE AND SUPPLY CHAIN

• IPC Urges Clarity on IC Substrates and PCBs in CHIPS for America Program
• Latest Economic Data Shows Mixed View of Global Economy

UPCOMING EVENTS

• Key Updates on Chemical Management in the Electronics Industry
• What is the Current Economic Outlook for Manufacturing?

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US

TOP NEWS OF THE WEEK

CHIPS Act Success Hinges on Establishment of IC Substrate Pilot Facility: The success of the CHIPS for America program is dependent on the quick establishment of a U.S. pilot facility for manufacturing integrated circuit (IC) substrates, according to a new report from the IPC Chief Technologist Council. The report highlighted that the United States has limited capabilities to produce the most advanced IC substrates, which are crucial for the production of advanced semiconductors. The council calls on industry and government to collaborate on building an IC Substrate Manufacturing Center of Excellence that can be incrementally improved over time. IPC will continue to support long-term policy and funding to rebuild the entire ecosystem that sustains innovative, resilient, and secure electronics manufacturing in the United States. Read the full report here. IPC Contact: Chris Mitchell.

QUOTE OF THE WEEK

“We hear from industry that there needs to be a balance between current and evolving regulatory requirements with practical and realistic solutions – for example, specific education, advocacy, and standards – that harmonize the industry’s ability to achieve their sustainability goals.” – IPC Lead Sustainability Strategist Dr. Kelly Scanlon welcomed IPC’s new Sustainability for Electronics Leadership Council and emphasized the need for solutions that balance regulatory requirements and support the industry's sustainability goals.

IPC ADVOCACY AND YOU

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 an IPC blog about how you can be involved in IPC advocacy in 2023. IPC Contact: Jeff Goldberg.

ENVIRONMENT & HEALTH

New IPC Leadership Council to Address Industry Sustainability Challenges: IPC recently announced the formation of the Sustainability for Electronics Leadership Council, aimed at addressing pressing sustainability challenges faced by the electronics manufacturing industry. Comprising industry experts from various fields, and including representatives from major electronics companies such as Intel, Siemens, and Jabil, the council will work on developing a strategic plan to tackle these challenges. The council expects to present recommendations for a sustainability strategic plan by August 2023. IPC Contact: Kelly Scanlon.

Share Your Input on EPA’s Proposed PFAS Restriction: The U.S. Environmental Protection Agency (EPA) recently proposed a new rule 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.

EUROPEAN UNION

EU Commission Proposes Legislation to Boost Competitiveness and Climate Neutrality: The European Commission this week proposed the Net-Zero Industry Act (NZIA) to facilitate the transition towards climate neutrality and enhance Europe’s manufacturing of clean technologies. The NZIA, partly introduced in response to the U.S. Inflation Reduction Act, will introduce measures to assist key sector in transitioning to climate neutrality in alignment with the Green Deal Industrial Plan. The NZIA is also accompanied by a proposal for legislation, called the Critical Raw Materials Act, aimed at securing the bloc ’s supply of raw materials needed for green transition technologies.This development signifies a change in regional industrial strategies towards reducing dependency on global supply chains. IPC Contact: Alison James.

EU Commission Seeks Input on Environmental Initiative to Reduce Product Impact: The European Commission recently launched a call for evidence to determine the first priority products for the Environmental Sustainability Performance Requirements (ESPR) under the EU’s Circular Economy Action Plan. The ESPR aims to improve the sustainability of products throughout their life cycle, while also supporting the EU’s internal market. The EU Commission has proposed a number of end-use and intermediary products, as well as horizontal measures based on an initial impact assessment. A questionnaire on the proposed product priorities is now open, while feedback and comments are due by May 12. Let us know if you have any questions. IPC Contact: Kelly Scanlon.

TRADE AND SUPPLY CHAIN

IPC Urges Clarity on IC Substrates and PCBs in CHIPS for America Program: On February 28, the U.S. Department of Commerce released its first funding opportunity under the CHIPS for America act to support U.S. semiconductor manufacturing. The announcement notably included funding for projects related to "advanced packaging,” however, it did not appear to offer funding to printed circuit board (PCB) or integrated circuit (IC) substrate projects. While the focus on advanced packaging is positive, IPC continues to call for a silicon-to-systems innovation strategy to avoid exacerbating vulnerabilities in U.S. electronics manufacturing capacities and capabilities. Read more in a recent IPC blog. IPC Contact: Chris Mitchell.

Latest Economic Data Shows Mixed View of Global Economy: The IPC February Economic Outlook report has revealed that economic fundamentals are slowing, but certain sectors like defense and space equipment and other electronics-related industries are holding up well. The report also showed contraction in manufacturing sectors in Europe, the United States, and China, along with a decline in EU electronics manufacturing output. Despite this, manufacturers are continuing to hire, and economists have marginally raised economic growth forecasts for 2023. View the full report here, and learn more on IPC's industry intelligence program here. IPC Contact: Shawn DuBravac.

UPCOMING EVENTS

Key Updates on Chemical Management in the Electronics Industry: Virtual, March 21, 2023. Join IPC, CTA, and ITI next Tuesday for a webinar on chemical management in the electronics industry. Presented by the American Chemistry Council (ACC), the webinar will provide an overview of key trends, Toxic Substances Control Act (TSCA) implementation, and the challenges and opportunities ahead. Topics will include TSCA high-priority chemicals, per- and polyfluorinated substances (PFAS), flame retardants, formaldehyde, and others. IPC Contact: Suhani Chitalia.

What is the Current Economic Outlook for Manufacturing? Virtual, April 4, 2023. Join IPC Chief Economist Shawn DuBravac for a free webinar on recent economic data and the current state of the manufacturing sectors in Europe, the United States, and China. Recession has become the base-case scenario for the United States and Europe, but the depth and duration of that recession is still up for debate. In this webinar, you will review what to expect in the coming quarter in terms of growth; the outlook for inflation; and the current health of the supply chain and how it might evolve in the months ahead. IPC Contact: Shawn DuBravac.

HELP US SPREAD THE WORD ON SOCIAL MEDIA

“What we’re witnessing is a natural evolution of the technology push.” IPC Vice President and Chief Technology Officer Matt Kelly addressed the latest in advanced packaging, Factory of the Future, e-mobility, printed circuit board (PCB) design, and other hot topics in electronics manufacturing in a wide-ranging interview with EMSNOW.		“Downward cyclical pressures will curtail volume which should keep prices in check. For some companies, declining freight costs are likely to be their most significant cost savings in 2023.” IPC Chief Economist Shawn DuBravac, PhD, CFA, provided insight on the resilience of the electronics industry in IPC’s February Global Sentiment of the Electronics Supply Chain Report.

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.