 Dear IPC Members:
It’s been a busy week in Washington, as IPC and our friends at Printed Circuit Board Association of America jointly called on Congress to fully fund Defense Production Act programs to signal greater Department of Defense demand for trusted PCBs and advanced electronics.
There were positive signals on another front, as the White House invited IPC’s John W. Mitchell to attend a roundtable discussion on CHIPS R&D, and the U.S. CHIPS R&D Office issued notices of intent with a combined value of $500 million for investments in advanced packaging and substrates.
And in Brussels, there is now a provisional agreement on a draft Net Zero Act, which sets a range of new goals in response to the U.S. Government’s incentives and investments in clean energy technologies.
Read on to learn more, and as always, we invite you to reach out with any feedback or questions.
All the best, |
Chris Mitchell
Vice President, Global Government Relations
The Headlines at a Glance:
TOP NEWS OF THE WEEK
- IPC Invited to White House Event on CHIPS and Related Programs
QUOTE OF THE WEEK
- IPC’s John W. Mitchell on the Implications of Defense Production Act Funding on U.S. National and Economic Security
UNITED STATES
- IPC and PCBAA Urge Congress to Fully Fund Trusted Technologies
- CHIPS Office Plans $500M Investment in Electronics Ecosystem
EUROPEAN UNION
- European Union Reaches Provisional Agreement on Net Zero Act
- European Commission Publishes Guidance on “First-of-a-Kind” Facilities
- European Commission Heightens Focus on Economic Security
UPCOMING EVENTS
- WHMA Global Leadership Summit, Feb. 13-15
- Unlocking Funding for IPC’s Registered Apprentice Program: Electronics Manufacturing, Feb. 21
- IPC APEX EXPO 2024, April 6-11
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TOP NEWS OF THE WEEK
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IPC Invited to White House Event on CHIPS and Related Programs: Representing electronics manufacturers, IPC was in the room today as the White House and U.S. Department of Commerce formally launched the National Semiconductor Technology Center (NSTC) Consortium and hosted a roundtable discussion about the CHIPS for America program. Recent announcements from the Biden administration have included hundreds of millions of dollars of planned investments in the electronics workforce, along with funding for projects in advanced packaging, metrology, and R&D. Echoing IPC’s main message on this issue, Laurie Locascio, director of the National Institute of Standards and Technology (NIST), “We have to ensure that these investments build upon each other toward a strengthened ecosystem, which is what we’re trying to achieve in the United States.” IPC President and CEO Dr. John W. Mitchell told the gathered government officials and stakeholders, “We can’t solve the workforce problem for slices of the industry. Building a ‘semiconductor’ workforce is an inherently flawed notion. We need a robust workforce ‘from silicon to systems.’ … Greater federal support [for electronics-related workforce programs] is welcome,” and “real impact means scale and speed,” he said. “For the CHIPS for America program to succeed, America will need hundreds of thousands more skilled workers in this decade, not just in chips but in related sectors as well.” Read more in this IPC blog. IPC Contact: Rich Cappetto.
QUOTE OF THE WEEK
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“IPC and our member companies urge Congress to reinvigorate a domestic PCB industry that is critical to U.S. industrial resiliency, economic competitiveness, and national security”
– John W. Mitchell, IPC President and CEO, on the implications for U.S. national and economic security if Congress fails to invest in trusted PCBs. Read more on the IPC Blog. |
UNITED STATES
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IPC and PCBAA Urge Congress to Fully Fund Defense Purchases of Trusted PCBs: IPC and the Printed Circuit Board Association of America (PCBAA) have delivered a letter to Congress urging that it fully fund the Defense Production Act Purchases Account with $618 million and provide $1.08 billion to the Industrial Base Analysis and Sustainment program. This action would support the Presidential Determination that PCBs are essential to the defense industrial base. With a deadline for full-year funding decisions coming on March 8, IPC and PCBAA emphasize that achieving full funding for trusted technologies is vital for continuing investment in the PCB industry, aligning with the objectives of the CHIPS and Science Act, and enhancing the U.S.'s global competitiveness. Meanwhile, the U.S. government's inability to pass a full-year budget for Fiscal Year 2024 is already putting critical defense electronics initiatives on hold, as explained in this IPC Blog. For more on this advocacy effort and its implications for the PCB industry, read the IPC blog post or press release. IPC Contact: Rich Cappetto.
CHIPS Office Plans $500M Investment in Electronics Ecosystem: In an encouraging development, the U.S. National Institute of Standards and Technology’s CHIPS R&D Office has issued two Notices of Intent (NOI) with a combined value of $500 million in areas relevant to the electronics manufacturing ecosystem. IPC applauds the commitment of at least $200 million to establish a “digital twin institute,” aimed at leading the world in transforming semiconductor and advanced packaging manufacturing. An additional $300 million for the National Advanced Packaging Manufacturing Program is another step towards cementing U.S. domestic capacity for advanced packaging substrates and materials, as well as workforce training programs to ensure that new processes and tools are capably staffed. These NOI are responsive to IPC's advocacy for a comprehensive, “silicon-to-systems” approach to electronics manufacturing beyond just semiconductor chips. IPC Contact: Rich Cappetto.
EUROPEAN UNION
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European Union Reaches Provisional Agreement On Net Zero Act: The European Council and European Parliament this week reached a provisional agreement on the draft Net Zero Act. This is the EU’s response in part to the U.S. Inflation Reduction Act, aimed at boosting regional manufacturing of green technologies including solar modules, electricity grids, and wind turbines. The Act sets a goal for the EU to supply 40% of its own demand for clean tech by 2030, including by accelerating permitting procedures. It also provides for sustainability and resilience criteria in Member State procurement programs. The draft Net Zero Act is part of the EU’s evolving approach to industrial strategy as the EU continues to tread a fine line between bolstering key industries while remaining open. 2024 is a critical year as the EU sets its priorities for the next term amidst a growing focus on economic security. IPC continues to highlight the need for a “silicon-to-systems" approach to bolstering Europe’s electronics manufacturers in this context. IPC Contact: Alison James.
European Commission Publishes Guidance for “First-of-a-Kind” Facilities: This week the European Commission published a guidance document on the application process for “first-of-a-kind” facilities to request the status of integrated production facility and/or open EU foundry, under the second Pillar of the European Chips Act. “First-of-a-kind” facilities are new or upgraded semiconductor manufacturing facilities providing a dimension of innovation not yet present in the EU market. The guidance aims to support undertakings to navigate the application process to gain the status of IPF and OEF, to understand the eligibility criteria, and to prepare the supporting documents needed to apply. IPC Contact: Alison James.
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 and 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.
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!
Unlocking Funding for IPC’s Registered Apprentice Program: Electronics Manufacturing: Webinar, Feb. 21, 11:00 am–12:00 Noon CST. Learn about the funding landscape for IPC's registered apprentice program. This is for the electronics industry and IPC members who seek to improve their workforce training but are hindered by workforce development costs, specifically as it relates to apprenticeship. Register today!
IPC APEX EXPO 2024: Anaheim, Calif., April 6-11. The largest electronics manufacturing event in North America, IPC APEX EXPO features the newest innovations and the best minds in the industry. IPC APEX EXPO 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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Yesterday, IPC sent congressional leaders an industry letter signed by over 50 electronics manufacturing executives. The letter, coauthored by PCBAA, highlights the critical need for a $618.6 million investment in the Defense Production Act to support more robust investments in the printed circuit board industry. The letter underscores the need for a domestic electronics strategy that promotes manufacturing from silicon to systems to strengthen national security, industrial resiliency, and technological leadership. |
Ride the wave of change with Shawn DuBravac, Ph.D., CFA when he explores the trends revolutionizing the electronics industry. World Convention Closing Ceremony, a IPC APEX EXPO April 11 in Anaheim, Calif. Learn more. |
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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