IPC Global Advocacy Report

3/22/2024

Dear IPC Members,

We’re pleased to share our latest roundup of the work being done by the IPC Government Relations team.
 
Read on to learn about the progress being made on several fronts, including a win for trusted PCBs in the U.S. defense spending bill; and positive language for our industry in the new White House Microelectronics Strategy.
 
Also this week, the latest issue of PCB007 Magazine was released with a focus on sustainability, including two stories by IPC Chief Sustainability Strategist Dr. Kelly Scanlon, and one by IPC President and CEO John W. Mitchell.

As always, we invite you to reach out with any questions or feedback.

All the best,

Chris Mitchell
Vice President, Global Government Relations

 

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

  • U.S. Defense Spending Deal a Good Result for PCBs and Advanced Packaging

QUOTE OF THE WEEK 

  • On Taking A Collaborative Approach to the Industry’s Sustainability Challenges

TECHNOLOGY 

  • IPC Applauds White House’s Microelectronics Strategy
  • What President Biden's FY2025 Budget Proposal Means for the Electronics Industry
  • Another Cosponsor Signs on to the PCB Act

DEFENCE & NATIONAL SECURITY 

  • European Commission Unveils Groundbreaking "Defence Industrial Strategy"

ENVIRONMENT AND HEALTH

  • IPC's Collaborative Approach to Advocating for Sustainable Electronics
  • IPC Leads Industry Efforts in Navigating Complexities of PFAS Regulations
  • ECHA’s Call for Industry Feedback on Flame Retardants May Impact REACH Regulations

IPC ANNOUNCEMENTS

  • Devan Iyer to Strengthen IPC's Advocacy for Advanced Packaging

UPCOMING EVENTS

  • Navigating Plastics Use and Management in the Electronics Value Chain (Webinar), March 27
  • IPC APEX EXPO 2024, April 6-11

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TOP NEWS OF THE WEEK

U.S. Defense Spending Deal a Good Result for PCBs and Advanced Packaging: In a win for the electronics manufacturing industry, the fiscal 2024 spending deal announced Thursday in Congress includes $587.9 million for Defense Production Act (DPA) purchases, including purchases called for under President Biden’s 2023 Presidential Determination which names domestic printed circuit boards (PCBs) manufacturing as essential to U.S. national security. These funds had been on the chopping block, and IPC swung into action to defend them throughout the budget negotiation process. Specifically, we had dozens of meetings and communications with the Hill, and we co-organized a letter to Congress from more than 50 industry executives. As a result, legislators were kept informed about the critical need to fund the Presidential Determination on PCBs and advanced packaging while negotiating among competing national priorities. The funding provided for DPA purchases is $156 million more than the low end of the negotiation. While we would like to have seen an even higher number, this negotiated amount represents a marked improvement from the prior year and from where the budget could have ended up. IPC now calls on the U.S. Department of Defense to proceed with allocating the full $85 million it had budgeted for PCBs and advanced packaging as it implements the FY24 spending package. Thankfully Congress agreed, as it included specific language in its accompanying explanatory statement which directs, “The Secretary of Defense is encouraged to prioritize Defense Production Act investments in support of domestic printed circuit board fabrication.” Meanwhile, there is no time to rest; IPC now must turn to the even bigger challenge of ensuring that funding for the electronics ecosystem continues in FY25. The administration’s recent FY25 budget proposal contains a 33% reduction for the Defense Production Act below the FY24 anticipated funding level. Even more troubling, no additional funds for PCB and advanced packaging are requested beyond those approved in FY23 and FY24. Unless this is corrected, it will undermine efforts to build industrial capacity and result in stalled momentum in 2025 and beyond. IPC Contact: Rich Cappetto.

QUOTE OF THE WEEK

“My personal belief is that changes to the electronics industry due to sustainability will be the most far-reaching in the industry's history. This is not about if sustainability will impact us, but about when and if my organization will be left behind. We need to accelerate work that promotes sustainability and aims to achieve the ambitious sustainability goals set before us.

IPC President and CEO Dr. John W. Mitchell, in taking a collaborative approach to overcoming the industry’s sustainability challenges. Read more in PCB007 Magazine.

 

TECHNOLOGY

IPC Applauds White House’s Microelectronics Strategy: Last week, the White House Office of Science and Technology Policy (OSTP) unveiled a strategy aimed at catalyzing microelectronics innovation in the United States. Aligned with the bipartisan CHIPS Act, the National Strategy on Microelectronics Research sets forth ambitious objectives for the coming five years. IPC was pleased to see advanced packaging, test, and assembly prominently mentioned, and the emphasis on fostering a supportive ecosystem including materials, substrates, and interconnect technology was precisely on target. IPC’s 2021 report on advanced packaging was also cited as a guiding reference. You can be sure IPC will refer to this strategy often as our advocacy continues, emphasizing a “silicon-to-systems” approach. IPC Contact: Rich Cappetto.

What President Biden's FY2025 Budget Proposal Means for Electronics Industry: On the heels of his State of the Union Address earlier this month, U.S. President Joe Biden released his budget for fiscal year 2025 the following week. IPC applauds certain aspects of the budget, particularly the increased investment of $1.4 billion in STEM education and workforce development, and the $50 million increase for apprenticeship funding, which is crucial for nurturing talent in our industry. While we also welcome the boost in funding for industry-relevant agencies like the Department of Commerce and the National Science Foundation, we stress the importance of ensuring these investments align with a holistic “silicon-to-systems” approach. On the other hand, we are concerned by proposed tax increases on corporations, as it could hinder growth and innovation.IPC Contact: Rich Cappetto.

Another Cosponsor Signs on to the PCB Act: U.S. Rep. Brandon Williams (R-NY) recently joined on as the ninth cosponsor of H.R. 3249, the Protecting Circuit Boards and Substrates Act. Rep. Williams represents a district that includes Syracuse, New York and which is home to several IPC member sites. He serves on three important House committees including Science, Space and Technology; Education and Workforce; and Transportation and Infrastructure. We’re pleased that Congressman Williams has joined on in support of the bill and look forward to engaging with him and others on building a robust electronics ecosystem in North America. IPC Contact:  Rich Cappetto.

 

DEFENCE AND NATIONAL SECURITY

European Commission Unveils Groundbreaking “Defence Industrial Strategy”: The European Commission recently introduced the EU's first-ever Defence Industrial Strategy,” including provisions of interest to our industry. In its statement, the European Commission noted that the Defence Industrial Strategy “sets a clear, long-term vision to achieve defence industrial readiness in the European Union,” a goal that requires member states to “invest more, better, together and European.” The strategy notes that the EC has already established an EU Observatory of Critical Technologies to identify dependencies on non-EU sources of critical technologies, with work having started on Electrical, Electronic and Electro-mechanical (EEE) semiconductor-based components and autonomous systems technologies. Accompanying the strategy is a legislative proposal for the European Defence Industry Programme (EDIP) and a framework of measures to ensure the timely availability and supply of defense products. IPC is actively evaluating the strategy and welcomes opportunities to enhance defense electronics manufacturing in Europe. IPC Contact: Alison James.

 

ENVIRONMENT & HEALTH

IPC's Collaborative Approach to Advocating for Sustainable Electronics: The call for sustainability in the electronics industry reverberates globally, marking a pivotal moment in our history. With a commitment to fostering change, IPC is actively engaged in empowering manufacturers to navigate this transformative journey. Through industry standards, workforce training, certification programs, and advocacy efforts, IPC champions a collaborative approach to address sustainability challenges head-on. As Dr. John W. Mitchell, president and CEO of IPC, underscores in the latest issue of PCB007 Magazine, the industry's future hinges on concerted efforts to build electronics sustainably, embracing conscientious lifecycle management and resource efficiency. IPC will continue to facilitate dialogue and innovation to shape a more sustainable future for all. Read more in PCB007 Magazine. IPC Contact: Kelly Scanlon.

IPC Leads Industry Efforts in Navigating Complexities of PFAS Regulations: In the ongoing dialogue surrounding environmental sustainability and industry regulations, the treatment of per- and polyfluoroalkyl substances (PFAS) has emerged as a critical focus area. Dr. Kelly Scanlon, lead sustainability strategist at IPC, sheds light on the complexities of PFAS and the advocacy efforts surrounding them in the latest issue of PCB007 Magazine. With over 10,000 PFAS chemistries complicating the task of setting definitions and regulations, IPC has been actively engaged in policy actions both in the U.S. and the EU for several years. From responding to proposed restrictions under the REACH Regulation to facilitating educational events and webinars, IPC continues to spearhead initiatives aimed at fostering a common understanding of PFAS regulation. Read more in PCB007 Magazine. IPC Contact: Kelly Scanlon.

ECHA’s Call for Industry Feedback on Flame Retardants May Impact REACH Regulations: The European Chemicals Agency (ECHA) is requesting comments and evidence about the uses of aromatic brominated flame retardants. The information will be used to support a decision on whether ECHA will prepare a restriction dossier for these chemicals under the REACH Regulation. The ECHA is interested in contributions from manufacturers, suppliers, downstream users, importers, and alternative suppliers. Participation from the electronics manufacturing industry is crucial to demonstrate the uses, availability of alternatives, and actual volumes of aromatic brominated flame retardants used in products. The deadline for input is May 4. IPC Contact:  Kelly Scanlon.

 

IPC ANNOUNCEMENTS

Devan Iyer to Strengthen IPC's Advocacy for Advanced Packaging: IPC this month welcomed Devan Iyer, Ph.D., as its chief strategist for advanced packaging, as we reinforce our commitment to advocating for a “silicon-to-systems" approach to the semiconductor industry. With extensive expertise garnered from roles in leading companies including Amkor Technology Inc. and Texas Instruments, Dr. Iyer will play a pivotal role in IPC's efforts to collaborate with electronics companies and governments. As governments in North America and Europe intensify support for advanced packaging initiatives, IPC is poised to actively engage in programs like the CHIPS for America R&D Office's funding opportunities. Dr. Iyer's addition further solidifies IPC's position as a premier advocate for advanced packaging technologies, enhancing its influence in shaping policies and programs crucial to the industry's future. Connect with Devan Iyer on LinkedIn. For more information, visit Advanced Packaging Semiconductors | IPC Industry Initiatives.

 

UPCOMING EVENTS

Navigating Plastics Use and Management in the Electronics Value Chain (Webinar): March 27, 12:00-1:00 pm EDT. Join IPC and the Information Technology Industry Council (ITI) for an insightful webinar on navigating plastics use and management in the electronics value chain. With experts from the U.S. State Department and Beveridge & Diamond, this event will delve into environmental and regulatory considerations, global treaties, and implications for product design and manufacturing practices. 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 TODAY for a 20% discount!

 

PLEASE "LIKE" AND "SHARE" OUR LINKEDIN POSTS

 

How do the international rules governing plastics use and management in the electronics value chain affect your company? IPC and Information Technology Industry Council (ITI) invite you to a free webinar, “Navigating Plastics Use and Management in the Electronics Value Chain,” Wednesday March 27, 12:00-1:00 p.m.

“With Devan’s help, IPC will continue to be the leading advocate of a silicon to systems approach, recognizing the importance of silicon fabrication as well as related capabilities such as advanced packaging, printed circuit boards, and IC substrates.”
- Matt Kelly IPC chief technology officer, welcomes Devan Iyer, Ph.D., Ph.D., one of the  semiconductor industry’s leading technology experts, to IPC in a newly created role, chief strategist for advanced packaging. 

 

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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