IPC Global Advocacy Report
9/22/2023

Dear IPC Members:

Here is your weekly, five-minute read on what your IPC Government Relations team is watching and doing on your behalf.  

It’s been a busy week on both sides of the Atlantic. My colleagues in Europe hosted IPC Day in Romania Wednesday and Thursday that also brought John Mitchell to Timisoara, where standards, sustainability, and the execution of Industry 4.0 were discussed.

In Washington, D.C., the NIST CHIPS R&D Standards Summit brought together stakeholders for the semiconductor and microelectronics standards activities. Matt Kelly and Dave Hernandez brought IPC’s message to the summit and in Capitol Hill meetings for a greater focus on our industry in terms of industry growth and workforce development.

Also this week, our subsidiary, the U.S. Partnership for Assured Electronics (USPAE), announced a new program, the Defense Business Accelerator, in partnership with the Department of Defense.

On the regulatory front, IPC submitted comments to the European Chemicals Agency (ECHA) calling for a more reasonable timeline for the industry to assess the use of and find appropriate alternatives for PFAS in electronics manufacturing. Separately, the U.S. EPA this week finalized reporting and recordkeeping requirements for PFAS.

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 

  • IPC Brings Funding, Workforce Message to Capitol Hill

QUOTE OF THE WEEK 

  • Nathan Edwards on Launch of the Defense Business Accelerator

IPC ADVOCACY AND YOU

  • DBX Program Launched for Commercial Electronics Development
  • North American Government Relations Committee Reconvenes
  • U.S. Commerce Secretary Spotlights Need for Advanced Packaging

ENVIRONMENT, HEALTH, AND SUSTAINABILITY

  • EPA Finalizes Rule on PFAS Reporting Requirements
  • IPC Seeks Reasonable Timeline for PFAS Transition in Comments to ECHA

EUROPEAN UNION

  • European Chips Act Enters into Force
  • EC President’s Speech Focuses on Clean and Critical Sectors

TRADE AND SUPPLY CHAIN

  • August ‘23 PCB Bookings Down from ‘22, EMS Up
  • Biden Administration Announces Funding for Microelectronics Regional Innovation Hubs

UPCOMING EVENTS

  • Economic Update and Market Outlook Webinar, October 5
  • IPC CEMAC 2023, October 27

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US


TOP NEWS OF THE WEEK

IPC Brings Funding, Workforce Message to Capitol Hill: At the NIST CHIPS R&D Standards Summit and in meetings on Capitol Hill with legislatives staffs in both the Senate and House and policy advisors in the White House, Matt Kelly, IPC vice president of technology solutions, and Dave Hernandez, IPC vice president of education, urged U.S. policy makers to take a “silicon-to-systems” approach to CHIPS Act implementation and to step up efforts to build a high-skilled workforce for the industry’s needs. Among highlighting the industry’s activities to raise the profile for advanced packaging and electronics manufacturing, Kelly called for full funding to implement the Presidential Determination that PCBs are a vital national security interest, while Hernandez advocated for reauthorization of the Workforce Innovation and Opportunity Act and tax credits and incentives for training and certification. Read more about their presentations and visits to Capitol Hill on IPC’s blog. Contact: Rich Cappetto.


QUOTE OF THE WEEK

“If we prove [DBX] successful, we can radically change the funding process so that it encourages innovation and participation from a broader range of companies.”
 USPAE executive director Nathan Edwards on the launch of the Defense Business Accelerator in partnership with the Department of Defense.

IPC ADVOCACY AND YOU

DBX Program Launched for Commercial Electronics Development: The U.S. Department of Defense announced Thursday funding for the Defense Business Accelerator (DBX), a program launched in partnership with IPC subsidiary U.S. Partnership for Assured Electronics. Offering 5-10 awards between $500,000 to $2 million, DBX is designed to open doors for electronics industry base growth and stimulate private investment by focusing first on technology commercialization with dual use for national security needs. The DoD chose USPAE to lead this effort due to its role in bringing together government and the U.S. electronics industry. DBX is the culmination of significant work in raising government awareness of the need for a stronger and more resilient electronics industrial base. More information on DBX including the application process is here. Contact: Chris Mitchell.

North American Government Relations Committee Reconvenes: On Monday, members of the North American Government Relations Committee met after a long absence for the committee. Rich Cappetto, who recently joined IPC as its senior director for North American government relations, reconvened the committee, chaired by Dan Weber from TTM Technologies. Discussions ranged from IPC’s new government grants and strategic funding program to workforce development initiatives including two recently approved Registered Apprenticeships and advocacy activities including those on PFAS restrictions and DPA funding plans for PCBs and advanced packaging. Outlines for IPC’s 2024 strategy were also presented. Contact: Rich Cappetto.

U.S. Commerce Secretary Spotlights Need for Advanced Packaging: On Sept. 18, 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.

 

ENVIRONMENT, HEALTH, AND SUSTAINABILITY

EPA Finalizes Rule on PFAS Reporting Requirements: The U.S. Environmental Protection Agency (EPA) finalized the reporting and recordkeeping requirements for per- and polyfluoroalkyl substances (PFAS) Thursday. The final rule defines the scope of PFAS, the timelines for reporting, and the industry’s that are obligated to report under the Toxic Substances Control Act (TSCA). IPC worked with the Consumer Technology Association (CTA) and Information Technology Industry Council (ITI) to submit comments to EPA during the proposed rulemaking process and we will continue to work together to review the meaning of this rule on the electronics manufacturing industry. Contact: Kelly Scanlon.

IPC Seeks Reasonable Timeline for PFAS Transition in Comments to ECHA: Responding to a request for comments from the European Chemicals Agency (ECHA) on the proposed restriction on all per- and polyfluoroalkyl substances (PFAS), IPC advocated for a minimum 13.5-year derogation to the proposed REACH Restriction on PFAS. The proposal, as written, would ban the manufacture, placing on the market, and use of all PFAS. IPC, in its response, highlights the complexity of the electronics manufacturing supply chain and the cascade of utility that potential PFAS containing electronics products provide to society. To identify where PFAS is in electronics and determine effective alternatives and undergo alternatives assessments, more time is needed. IPC continues to stay updated on the proposal as it moves it forward. Contact: Kelly Scanlon.

 

EUROPEAN UNION

European Chips Act Enters into Force: The European Chips Act legally entered into force last 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

August ‘23 PCB Bookings Down from ‘22, EMS Up: In findings released this week for the North American Printed Circuit Board (PCB) and Electronics Manufacturing Services (EMS) statistical programs, August 2023 saw PCB bookings slow by 29 percent from the previous year while EMS bookings increased 13.7 percent. Shipments for PCBs were up 26.4 percent compared to August 2022 but down from July this year. EMS shipments showed slight increase in both analyses, up 2.49 percent from August 2022 and up 8.9 percent compared to July. Contact: Shawn DuBravac.

Biden Administration Announces Funding for Microelectronics Regional Innovation Hubs: The U.S. Department of Defense announced on Sept. 20 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

Quarterly Economic Update and Market Outlook WebinarOnline, 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.

IPC CEMAC 2023: IPC CEMAC (China Electronics Manufacturing Annual Conference) will be October 27 in Shanghai. Co-organized with Pudong New Area Association for Quality and Technology Shanghai, the conference will feature discussions with experts on IPC standards, automotive electronics, advanced packaging, the factory of the future, talent cultivation and sustainability, and innovative products & solutions. The 2022 IPC member awards and appreciation dinner will be held as well.

 

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Recruiting and retaining high-skilled workers is among the most difficult challenges facing the electronics manufacturing industry. A new book by IPC President and CEO John W. Mitchell offers helpful solutions. In a book that every hiring manager should read, Mitchell offers practical and relevant tips to help find and keep skilled talent. Learn how to shake up the hiring status quo, attract and retain top talent, and create a more inclusive work environment. Proceeds from the book go to the IPC Education Foundation to support careers in the electronics manufacturing industry. Learn more.

With up to $10 million of awards available in partnership with the United States Department of Defense, USPAE is piloting the Defense Business Accelerator (DBX) to spur commercial technology development with dual-use for national security needs. DBX puts the focus on commercialization first to improve product innovation that benefit companies supporting national security interests. DBX opens doors for industrial base growth and promote private investment. The deadline for submissions is approaching quickly. Read more about the program and find information on the application process.


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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