Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

QUOTE OF THE WEEK 

• On the European Commission’s Assessment of Technology Risks

UNITED STATES

• Bipartisan Tax Agreement Would Aid Electronics Manufacturers
• Pentagon Releases First-Ever U.S. National Defense Industrial Strategy
• U.S. House Panel Calls for “Reset” of U.S.-China Tech Relations
• IPC Applauds $46M Grant for IC Substrates and Advanced Packaging

EUROPEAN UNION

• European Commission Heightens Focus on Economic Security
• IPC Offers Insights on Advanced Materials to European Commission
• Industrial Strategy Remains Priority as Belgium Assumes EU Presidency

ENVIRONMENT AND HEATH

• European Commission Proposes Streamlined Chemical Assessments
• EU Institutions Act on Sustainability Due Diligence Directive

TRADE AND SUPPLY CHAIN

• Is Mexico Overtaking China Through Nearshoring?

UPCOMING EVENTS

• WHMA Global Leadership Summit, Feb. 13-15
• IPC APEX EXPO 2024, April 6-11

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QUOTE OF THE WEEK

“Technology is currently at the heart of geopolitical competition and the EU wants to be a player, and not a playground. And to be a player, we need a united EU position, based on a common assessment of the risks. With this approach we will remain an open and predictable global partner, but one who nurtures its technological edge and addresses its dependencies.”  – Věra Jourová, Vice-President of the European Commission, on the Commission’s recommendations for a risk assessment on technology, as quoted in an announcement by the European Commission.

UNITED STATES

Bipartisan Tax Agreement Would Aid Electronics Manufacturers: The U.S. House and Senate tax-writing committees have reached a bipartisan agreement with significant implications for electronics manufacturers. The deal, if enacted, would permit immediate expensing of domestic research and development costs retroactively from January 1, 2022, to December 31, 2025, replacing the five-year amortization span and potentially reducing the tax burden on recent and ongoing innovations. It also would maintain deductions for depreciation through 2024 and 2025 and extend 100% bonus depreciation on new machinery, equipment, and vehicle investments until 2025, facilitating capital expansion plans. Moreover, the agreement would alleviate international tax complications by abolishing double taxation for entities operating in both the U.S. and Taiwan. IPC Contact: Rich Cappetto.

Pentagon Releases First-Ever U.S. National Defense Industrial Strategy: The U.S. Department of Defense on Jan. 11 issued its first-ever National Defense Industrial Strategy (NDIS), outlining a five-year roadmap centered on enhancing Resilient Supply Chains, Workforce Readiness, Flexible Acquisition, and Economic Deterrence. The strategy resonates with IPC's advocacy for a strengthened electronics industry, particularly in fostering resilient supply chains and a skilled workforce, especially in light of the objectives of the CHIPS and Science Act. While sector-specific recommendations were not included, upcoming implementation plans are expected to detail further actions. IPC has been advocating for a “silicon-to-systems” approach to strengthening the electronics supply chain, and the DoD strategy acknowledges the need to collaborate with industry, send clear market signals, and work in partnership with U.S. allies. Read more and access the strategy via the IPC Blog. IPC Contact: Rich Cappetto.

U.S. House Panel Calls for “Reset” of U.S.-China Tech Relations: A U.S. House panel recently released nearly 150 bipartisan policy recommendations aiming to "reset" the U.S.-China economic relationship and technological competition. The recommendations focus on mitigating national security risks and ensuring U.S. technological competitiveness by reducing reliance on Chinese technologies and supply chains, particularly in the electronics industry. The panel advocates for bolstering U.S. manufacturing capabilities in areas including printed circuit boards (PCBs) and emphasizes the importance of a skilled workforce. IPC supports the move towards reinforcing North American supply chains and developing domestic capabilities while maintaining a commitment to free and fair global trade, competition, and reliability standards. IPC Contact: Rich Cappetto.

IPC Applauds $46M Grant to IPC Member GreenSource for IC Substrates and Advanced Packaging: IPC congratulates GreenSource Fabrication LLC upon receiving a $46.2 million grant from the U.S. Department of Defense to enhance U.S. capabilities in integrated circuit (IC) substrate fabrication and advanced packaging. The grant is one in a series of investments by the DoD aimed at reinforcing the domestic electronics supply chain, with more anticipated in the coming months. IPC has been actively collaborating with DoD and industry partners to advocate for the expansion of U.S. advanced packaging capabilities, including IC substrate fabrication. Learn more about IPC’s work on advanced packaging. IPC Contact: Chris Mitchell.

EUROPEAN UNION

European Commission Heightens Focus on Economic Security: The European Commission is intensifying its focus on economic security amidst growing geopolitical tensions and technological shifts. In a recent proposal, the Commission introduced five initiatives building upon its initial concepts first presented in June 2023. These initiatives seek to enhance economic security by revising the Regulation on the screening of Foreign Direct Investment, issuing White Papers on export controls, outbound investment, and dual-use research. Additionally, a proposal for a Council Recommendation on research security is included. Striking a balance between Member State competency and the necessity for European cooperation, trade openness, and investment, the proposals align with the evolving EU approach to “de-risking.” The package follows the October 2023 recommended risk assessments on critical technologies, and further details are anticipated in February 2024. Read more on the European Commission website. IPC Contact: Alison James.

IPC Offers Insights on Advanced Materials to European Commission: In early January, IPC played a pivotal role in guiding the European Commission on the nuanced requirements of the electronics sector concerning advanced materials. With an eye on issuing a comprehensive Communication on Advanced Materials in 2024, the Commission engaged with prominent industry stakeholders for their insights. IPC's submissions emphasized the critical importance of adopting a holistic “silicon-to-systems" framework for the evaluation of electronic materials. Read more in our blog post. IPC Contact:  Alison James.

Industrial Strategy Remains Priority as Belgium Assumes EU Presidency: Belgium has assumed the Presidency of the Council of the European Union for the first half of 2024, and industrial competitiveness will continue to be an essential theme. Under its mandate in the Council, the Belgian Presidency will address topics including economic security, reducing harmful dependencies, and promoting critical technologies. With 2024 as a year of political change in the European Union, IPC will be continuing to work with the EU Institutions to highlight the critical importance of bolstering Europe’s electronics manufacturing ecosystem from “silicon to systems.” Read more about the priorities of the Belgian presidency of the Council of the European Union. IPC Contact: Alison James .

ENVIRONMENT AND HEALTH

European Commission Proposes Streamlined Chemical Assessments: The European Commission is reviewing three legislative proposals aimed at reforming chemical assessments across the EU. The "One Substance, One Assessment" initiative seeks to create more efficient, consistent, and transparent processes by redistributing tasks among the European Chemicals Agency, European Food Safety Authority, European Environment Agency, and European Medicines Agency. The proposals include the establishment of a Common Data Platform for chemicals information; the systematic collection of human biomonitoring data; and the implementation of a framework for early detection of chemical risks like PFAS. The proposals are part of the Chemicals Strategy for Sustainability and are within the framework of the EU's zero pollution goal outlined in the European Green Deal. They will now be reviewed by the European Parliament and the European Council. IPC Contact: Kelly Scanlon.

EU Institutions Act on Sustainability Due Diligence Directive: The European Parliament, together with the Council of the EU, has provisionally agreed on the definitive wording of the Corporate Sustainability Due Diligence Directive (CS3D). The directive introduces rigorous obligations for companies to follow in identifying, forestalling, diminishing, and rectifying both direct and potential adverse effects on human rights and the environment that may stem from their own activities, those of their subsidiaries, or those that occur within their value chain. The landmark agreement is on track to be formally adopted in early 2024, after which EU Member States will have a two-year period to adopt the provisions in national legislation. IPC Contact: Kelly Scanlon .

TRADE AND SUPPLY CHAIN

Is Mexico Overtaking China Through Nearshoring? Amid rising geopolitical and trade challenges, nearshoring is gaining traction as companies seek to bring production closer to consumer markets, writes IPC Chief Economist Shawn Dubravac the newest edition of IPC Community magazine. Mexico is emerging as a key industrial hub, surpassing China as the U.S.'s top trading partner. In 2023, Mexico's foreign direct investment soared, particularly from U.S. firms in the automotive and computer manufacturing industries. As China's share of U.S. imports is falling, Mexico and other Asian nations are on the rise, revealing a shift towards diversified supply sources. The shift is also seen in Europe, where Eastern European countries are becoming locations for enhanced supply chain resilience and sustainability. Read this story and more in the latest issue of IPC Community. IPC Contact: Shawn DuBravac.

WHMA Annual 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. Register today!

IPC APEX EXPO 2024: Anaheim, Calif., April 6-11. The largest electronics manufacturing event in North America, APEX features the newest innovations and the best minds in the industry. APEX 2024 will also host the Electronic Circuits World Convention 16, an international PCB symposium held every three years, featuring the latest information on global PCB demand, PCB manufacturing processes, and promoting the domestic PCB industry in every country and every region. Register by March 1 for a 20% discount!

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While hosting and engaging our audience on day 3 of IPC Wintercom in Barcelona, my mind briefly wandered to something a mentor of mine recently opined about: "You cannot teach someone to be passionate or enthusiastic - they are innate characteristics." Her words provided me with an interesting perspective as I thought about our #IPCCommunity. So, here is a shout out to two of our strongest "volunteers" in the PCB community in continental Europe, who each embody those characteristics…		Spending some time in Barcelona at IPC WinterCom. This is going to be one of my favorite events of the year as we spend a week with standards committee members talking through IPC standards to build electronics better. It was my honor to open the second day of the event with a welcome speech and then listen to Didrik Bech's discussion on Sustainability by Design. This week is going to cover so many important topics, it’s an exciting time to be in Barcelona! I’m also looking forward to tomorrow’s keynote speaker, Raquel Rodriguez, who is the CEO of INSYTE, S.A and just joined our European GR committee to provide a voice from Spain, helping focus on reliability and quality in mil/aero/def.

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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