 Dear IPC Members:
Here is your weekly, five-minute read on what your IPC Government Relations team is watching and doing on your behalf.
Of greatest interest this week, U.S. Secretary of Commerce Gina Raimondo told Members of Congress that CHIPS Act implementation needs to include support of advanced packaging and the rest of the electronics ecosystem, including workforce development. Her statements were another sign that IPC’s message is getting through at the highest levels. Read on for more details below.
Also this week, the U.S. Department of Defense announced the largest funding yet under the CHIPS and Science Act for the establishment of eight microelectronics regional innovation hubs. And across the pond, the European Chips Act entered into force.
Similar story, different country: The New York Times this week published an article on India’s effort to build an ecosystem for the semiconductor industry. As you may know, IPC India has been very active in that country, including two recent high-profile events in Chennai and Pune and a cooperation pact with the India Cellular & Electronics Association. If interested, I encourage you to check out the Post-Show Report and follow IPC India on LinkedIn.
Please read on to learn more about our industry’s advocacy efforts on business-critical issues in the United States, Europe, and worldwide – 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
- U.S. Commerce Secretary Spotlights Need for Advanced Packaging
QUOTE OF THE WEEK
- Gina Raimondo on Advanced Packaging
IPC ADVOCACY AND YOU
- IPC to Co-Host CHIPS R&D Standards Summit
ENVIRONMENT, HEALTH, AND SUSTAINABILITY
- IPC Sustainability Strategist Forecasts IPC’s Green Agenda
EUROPEAN UNION
- European Chips Act Enters into Force
- EC President’s Speech Focuses on Clean and Critical Sectors
TRADE AND SUPPLY CHAIN
- Biden Administration Announces Funding for Microelectronics Regional Innovation Hubs
UPCOMING EVENTS
- IPC Day, September 27-28
- Economic Update and Market Outlook Webinar, October 5
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TOP NEWS OF THE WEEK
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U.S. Commerce Secretary Spotlights Need for Advanced Packaging: On Tuesday, U.S. Secretary of Commerce Gina Raimondo echoed IPC’s policy recommendations when she testified before the House Science, Space, and Technology Committee on the one-year anniversary of the CHIPS and Science Act. With $2.5 billion allocated to establish advanced packaging and manufacturing hubs around the country, she said, “The CHIPS program is about manufacturing, but we also have to think about advanced packaging happening in the United States. We can make all the chips in America, but if we then send them to Asia to be tested and packaged, that’s a problem. So, we have to package in the United States, [and] we have to increase Research and Development in the United States.” In the hearing, she also highlighted the need for workforce development in high-tech sectors, including using funds to develop career pathways beyond 4-year college degrees. IPC applauds her remarks and will continue to advocate for a ”silicon-to-systems” approach to CHIPS Act implementation. IPC Contact: Richard Cappetto.
QUOTE OF THE WEEK
IPC ADVOCACY AND YOU
IPC to Co-Host CHIPS R&D Standards Summit: The U.S. Government and private-sector stakeholders including IPC are coming together to co-host a CHIPS Research and Development Standards Summit on Wednesday through Friday next week. The summit focuses on identifying priorities for relevant standards activities and enabling a diverse, standards-capable workforce. The summit will cover the full range of standards types, and the entire chips and microelectronics sector, from materials and design to fabrication, packaging, and testing and certification. IPC is the world leader in standards for electronics manufacturing, and we will be well represented at the summit by IPC Chief Technology Officer Matt Kelly and VP of Education Dave Hernandez. The pair also will meet with key policy makers while in DC. A post-summit report will inform standards planning efforts across the semiconductor innovation ecosystem and within the CHIPS R&D Office. IPC Contact: Chris Mitchell.
ENVIRONMENT, HEALTH, AND SUSTAINABILITY
IPC Sustainability Strategist Forecasts IPC’s Green Agenda: In a new edition of the Altium OnTrack podcast, IPC Lead Sustainability Strategist Kelly Scanlon talks about IPC’s plans to provide standards, education, and advocacy to help the electronics manufacturing industry navigate the environmental, social, and corporate governance aspects of sustainability in electronics. IPC Contact: Kelly Scanlon.
EUROPEAN UNION
European Chips Act Enters into Force: The European Chips Act legally entered into force this week together with the regulation establishing the Chips Joint Undertakings (Chips JU) under Horizon Europe that transitions the Key Digital Transitions JU to an expanded joint undertaking. IPC welcomes this milestone that includes advanced packaging and continues to work on next steps to reinforce the European electronics manufacturing ecosystem, from “silicon to systems.” Together with members and partners, IPC will continue to build on IPC’s electronics industry stakeholder report, produced under the auspices of DG GROW, that includes policy recommendations for robust industry serving Europe’s regional security and economic needs. IPC Contact: Alison James
EC President’s “State of the Union” Speech Focuses on Clean and Critical Sectors: European Commission President Ursula Von der Leyen delivered her last annual “State of the Union” speech on Sept. 13, calling for further progress on sustainability and supply chain resiliency. The European Green Deal has become an economic agenda, she said, providing “clear direction for investment and innovation.” She pledged to begin a series of Clean Transition Dialogues, aiming “to support every sector in building its business model for the decarbonisation of industry.” She also previewed a European wind power package; a continuing effort to reduce regulatory reporting obligations; and efforts to invest in critical technologies and sectors. IPC continues to engage with the EC on the region’s industrial policy, highlighting the crucial role and needs of electronics manufacturers. At the commission’s request, together with partners and stakeholders, we recently submitted an industry-curated report with recommendations to bolster Europe’s PCB and EMS sectors. IPC Contact: Alison James.
TRADE AND SUPPLY CHAIN
Biden Administration Announces Funding for Microelectronics Regional Innovation Hubs: On Wednesday, the U.S. Department of Defense announced the largest funding yet under Pres. Joe Biden’s CHIPS and Science Act to establish eight Microelectronics Commons regional innovation hubs. The $238 million awarded to hubs in Massachusetts, Indiana, California, North Carolina, Arizona, Ohio, and New York is part of a 5-year initiative to accelerate domestic hardware prototyping and “lab-to-fab” transition of semiconductor technologies. The hubs are expected to spur economic growth in their respective regions and develop the talent pool to sustain the investment. The announcement came a day after Commerce Secretary Gina Raimondo urged Congress to focus on advanced packaging in addition to semiconductor fabrication. IPC will continue to advocate for a holistic approach to rebuilding the U.S. electronics industry. IPC Contact: Rich Cappetto.
UPCOMING EVENTS
IPC Day in Romania: Build Electronics Better with Standards and Solutions, Conference Powered by Flex: Timisoara, Romania, Sept. 27-28. The conference will provide a unique opportunity to learn about the latest advancements in electronics manufacturing, participate in industry discussions, and network with a community of professionals dedicated to building electronics better. The world-class lineup includes speakers and panelists from NASA, Stellantis, Bosch, Flex, Indium, IPC, The Polytechnic University, and Vitesco. Registration is free.
Quarterly Economic Update and Market Outlook Webinar: Online, October 5. Stay up to date on the latest economic developments and gain valuable insights from IPC Chief Economist Shawn DuBravac as he helps you navigate an uncertain economic landscape. Registration is free.
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Overheard at a recent Science, Space and Tech hearing on the Hill, “The CHIPS program is about manufacturing, but we also have to think about advanced packaging happening in the United States.” Thanks to Secretary of Commerce, Gina Raimondo, and members of the Committee, for putting advanced packaging front and center, and recognizing that semiconductor chips have no functionality until they are packaged and placed on PCBs that are overwhelmingly made overseas.
We urge U.S. Congress to follow through on the promise of the CHIPS Act to increase domestic semiconductor production in the U.S. while recognizing the need for a silicon to systems approach to the initiative. |
A recent report from IPC says the recently enacted European Chips Act was a welcome step, but "the near singular focus" on the semiconductor industry "has obscured critically important segments of the electronics ecosystem," specifically printed circuit boards (PCBs) and electronics assembly (EMS). Over the last 20 years, the European PCB sector experienced a steep decline, the report says. The EMS sector has experienced "solid" growth, but total demand is met mostly by imports. The report comes as part of IPC's ongoing dialogue with the European Commission about a "silicon-to-systems" approach to chips programs. Read report here. |
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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