Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• Proposed FY25 U.S. Defense Budget Cuts Funding for Critical Electronic Components

QUOTE OF THE WEEK 

• IPC and PCBAA on the Risks of Forgoing U.S. Manufacturing Investments

TECHNOLOGY 

• IPC Applauds $75M U.S. Government Investment in Substrate Technology

DEFENSE & SECURITY

• IPC Supports Senator’s Defense Tech Investment Plan

ENVIRONMENT & SUSTAINABILITY

• EPA Proposes New Regulations for NMP Use
• EU Adopts Corporate Sustainability Due Diligence Directive
• IPC Submits Comments to U.S. EPA on Safe Use of Formaldehyde in Electronics

UPCOMING EVENTS

• Electronics Goes Green: Berlin, Germany, and Virtual (June 18-20)
• Women Reshaping the Engineering Landscape, Webinar (June 24)
• Chemical Management for Electronics USA: Boston, Mass. and Virtual (June 24-25)

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TOP NEWS OF THE WEEK

Proposed FY25 U.S. Defense Budget Cuts Funding for Critical Electronic Components: An op-ed published in Defense Opinion explains how the proposed fiscal year 2025 defense budget under President Biden has omitted critical funding for addressing a shortfall in electronic components essential for semiconductor functionality. This omission comes despite the success of investments driven by the CHIPS and Science Act. While domestic semiconductor manufacturing is on the rise, the U.S. industry for PCBs and advanced packaging—vital for the utility of these chips—has significantly declined. With only 4% of global PCB production currently in the U.S., the country’s technological capabilities and national security are at risk. Recent policies and reports have highlighted these vulnerabilities, and the recent fiscal year 2024 budget allocated $587 million for relevant projects. However, the new budget proposal's exclusion of further PCB funding contradicts these priorities. The piece is co-authored by IPC’s Rich Cappetto, Senior Director of North American Government Relations, and David Schild, Executive Director of the Printed Circuit Board Association of America. For more, read the op-ed in Defense Opinion. IPC Contact: Rich Cappetto.

QUOTE OF THE WEEK

“Providing robust funding under the Defense Production Act for advanced PCBs, substrates and packaging projects would be a small investment – only $86 million, or a fraction of a percent of total annual defense spending. But it would strengthen reliable access to critical technology that powers billions of dollars’ worth of Pentagon equipment purchases.” — Richard Cappetto, IPC Senior Director for North American Government Relations, and David Schild, Executive Director of the Printed Circuit Board Association of America, on the state of domestic electronics capabilities, and the risk associated with forgoing further investment in U.S. circuit board manufacturing. Read more in Defense Opinion.

TECHNOLOGY

IPC Applauds $75M U.S. Government Investment in Substrate Technology: The Biden-Harris Administration recently announced preliminary terms with IPC member Absolics Inc., a subsidiary of South Korea-based SKC, for a $75 million investment in substrate technology needed for advanced semiconductors and advanced packaging. The funding, provided under the CHIPS and Science Act, will establish a 120,000 square-foot facility in Covington, Georgia, with a goal to create over 1,200 jobs and strengthen U.S. technological leadership across the semiconductor supply chain. Absolics will also work with Georgia Tech to continue relevant R&D and expand the local talent pipeline. IPC applauds this investment, which aligns with IPC’s call for more investment in advanced packaging and a “silicon-to-systems” approach to the various government chips programs. This is the U.S. Government’s first investment in IC substrates through the CHIPS incentive grants, and it can't be the last! Read the announcement from the CHIPS for America program and in Fierce Electronics. IPC Contact: Rich Cappetto.

DEFENSE AND SECURITY

IPC Supports Senator Wicker’s Defense Tech Investment Plan: U.S. Senator Roger F. Wicker (R-Miss), the Ranking Member of the Senate Armed Services Committee, recently proposed a significant investment plan aimed at bolstering the U.S. defense industrial base. This plan, described as “a generational investment,” emphasizes expansion and robust funding of the Defense Production Act (DPA) and Industrial Base Alignment and Sustainment (IBAS) programs, particularly focusing on strengthening the defense supplier base. New efforts would include addressing shortages in printed circuit boards (PCBs) and circuit board assemblies. IPC views the Wicker proposal as a smart strategy to rebuild the electronics supply chain with a “silicon-to-systems” approach, not solely concentrating on semiconductor chips. IPC commends Senator Wicker's proposal and urges Congress to adopt the plan. Read Senator Wicker's news release announcing his investment plan, and read the plan in its entirety. IPC Contact: Rich Cappetto.

ENVIRONMENT AND SUSTAINABILITY

EPA Proposes New Regulations for NMP Use: The EPA announced proposing a ban on certain uses of the solvent N-Methylpyrrolidone (NMP) and implementing strict workplace requirements for others. The draft pre-publication version of the draft risk management rule is currently available for review, and a public comment period will begin once it is published in the Federal Register, lasting for at least 45 days. NMP is integral to semiconductor and lithium-ion battery manufacturing, both of which are specifically addressed in the draft rule. The EPA will host a public webinar on June 20, 2024, at 1:00 pm EDT to discuss the proposed regulations. Read the announcement from the EPA and register for the webinar here, and let us know how this rule might impact your operations. IPC Contact: Kelly Scanlon.

EU Adopts Corporate Sustainability Due Diligence Directive: The Council of the European Union has adopted the Corporate Sustainability Due Diligence Directive (CSDDD), completing its course through the policy process. The CSDDD requires large companies to report on the impacts of their activities on human health and the environment, covering their operations, subsidiaries, and supply chain members. Following its publication in the Official Journal of the European Union, Member States will have two years to implement the directive at the national level. The directive will be phased in over five years. IPC will continue to monitor this new regulation and keep you informed of how it may affect your company.  Learn more about the CSDDD and the new reporting obligations here. IPC Contact: Kelly Scanlon.

IPC Submits Comments to U.S. EPA on Safe Use of Formaldehyde in Electronics: IPC, which is dedicated to ensuring the safe use of formaldehyde in electronics products through collaboration with its member companies, recently submitted comments to the U.S. Environmental Protection Agency (EPA) on the agency’s Draft Risk Evaluation for formaldehyde. Representing its member companies, IPC contests the EPA’s determination of unreasonable risks to workers who use formaldehyde as a reducing agent in electroless copper formation, citing discrepancies with real-world conditions. Concerns also arise from EPA’s apparent haste in completing the draft risk evaluation, which may have compromised the quality, reliability, and integrity of information about risks in electronics manufacturing. Additionally, IPC expresses apprehension over the limited 60-day public comment period for a document spanning thousands of pages. Read IPC’s full comments and let us know how this might impact your operations. IPC Contact: Kelly Scanlon.

UPCOMING EVENTS

Electronics Goes Green: Berlin, Germany, and Virtual (June 18-20) – IPC is a proud sponsor of Electronics Goes Green 2024, From Silicon to Sustainability. This global event features researchers, policymakers, and industry players dedicated to driving sustainability in electronics and in-circuit testing. Featured topics include environmental effects of mature, as well as emerging technologies and materials; life cycle assessment (data) of specific electronic components; LCA data management along the supply chain; fair, clean, and conflict-free electronics; and circular economy strategies. Register today.

Bold Breakthroughs: Women Reshaping the Engineering Landscape: Webinar (June 24, 10:00-11:00 am EDT) – Join IPC for this special virtual event in celebration of International Women in Engineering Day. This event will shine a spotlight on the incredible women in the electronics industry who are breaking barriers, making bold breakthroughs, and paving the way for future generations. Led by IPC’s Teresa Rowe, Senior Director of Assembly & Standards Technology, panelists include nine extraordinary women from nine different countries. Register today for FREE!

Chemical Management for Electronics USA: Boston, Mass. and Virtual (June 24-25) – What is the risk evaluation and management status of high-priority chemicals relevant to electronics manufacturers? Kelly Scanlon, IPC’s lead sustainability strategist, will provide details in her presentation, “Where TSCA and Electronics Manufacturing Intersect: The Essential Voice of Industry,” on June 24. IPC sponsors this two-day conference focusing on the complex and changing landscape of chemicals management for electrical and electronic equipment (EEE) in the United States and beyond. IPC members, use code IPC15 for a 15% discount when registering.

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We’re in Japan with the IPC executive team and IPC board member Hiroyuki Watanabe to meet with Nobuhiro Endo from NEC Corporation. We’re discussing international standardization and how IPC is leading the way in the electronics industry. We’re excited about new partnership opportunities with Japanese firms around the standardization of advanced packaging technologies.

IPC and USPAE welcome James Will as the new executive director of U.S. Partnership for Assured Electronics (USPAE). Responsible for positioning USPAE as a trusted third-party connecting industry and U.S. government stakeholders to promote an assured electronics supplychain, Will most recently led the aerospace and defense business for SkyWater Technology Foundry. An engineer by training, Will has a solid technical and operational background in the electronics industry and extensive experience in the defense industry.

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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