Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• Sharp Decline in EU Electronics Manufacturing Raises Strategic Concerns

QUOTE OF THE WEEK 

• On the Importance of Electronics Manufacturing for EU Competitiveness

DEFENSE & SECURITY

• Proposed FY25 U.S. Defense Budget Cuts Funding for Critical Electronic Components
• IPC Supports Senator Wicker’s Defense Tech Investment Plan

ENVIRONMENT & SUSTAINABILITY

• EPA Proposes New Regulations for NMP Use
• EU Adopts Corporate Sustainability Due Diligence Directive

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

Sharp Decline in EU Electronics Manufacturing Raises Strategic Concerns: A new report entitled “Securing the European Union’s Electronics Ecosystem,” produced by IPC in partnership with DECISION and IN4MA, highlights a significant decline in European electronics manufacturing and the resulting risks to European autonomy. The report predicts a drop in Europe’s global market share from 16.5% today to 15% by 2035, creating risks in an array of critical sectors including aerospace and defense. Despite the European Chips Act, reliance on non-EU manufacturing is increasing. The report advocates for a “silicon-to-systems” approach and urges the adoption of an Electronics Manufacturing Strategy under the European Commission’s next five-year mandate. IPC also issued a “Call to Action” with support from more than 30 companies and 15 trade associations, all backing the call for strategic investments and comprehensive policies to reduce dependencies in areas such as semiconductors, health, and digital technologies, echoing recent European Council conclusions. IPC invites everyone with an interest in EU electronics manufacturing to read IPC’s press release, review the report, and support the industry Call to Action. IPC Contact: Alison James.

QUOTE OF THE WEEK

“Any new industrial policy supporting competitiveness needs to embrace electronics manufacturing as a key enabler for innovation and resiliency in strategically important sectors like aerospace and defense. A dedicated strategy, including EU targets for electronics manufacturing, will help Europe compete with global competitors.” — Alison James, IPC Senior Director of European Government Relations, on the strategic concerns raised by a sharp decline in EU electronics manufacturing. Read more.

DEFENSE AND SECURITY

Proposed FY25 U.S. Defense Budget Cuts Funding for Critical Electronic Components: An op-ed published in Defense Opinion explains how President Biden’s proposed defense budget for fiscal year 2025 omits the funding needed to address a shortfall in electronic components related to semiconductor functionality. This omission comes despite the success of investments driven by the CHIPS and Science Act. While domestic semiconductor manufacturing is rising, U.S. output of printed circuit boards (PCBs) and advanced packaging — both vital for the utility of these chips — is declining. With only 4% of global PCB production occurring 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 recently approved FY24 budget allocated $587 million for relevant projects. However, the FY25 budget proposal's exclusion of further PCB funding contradicts these priorities. The piece is co-authored by Rich Cappetto of IPC and David Schild of the Printed Circuit Board Association of America (PCBAA). For more, read the op-ed in Defense Opinion. IPC Contact: Rich Cappetto

IPC Supports Senator Wicker’s Defense Tech Investment Plan: U.S. Senator Roger F. Wicker (R-Miss.), the Ranking Republican on 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 U.S. Environmental Protection Agency (EPA) this month proposed a ban on certain uses of the solvent N-Methylpyrrolidone (NMP) and strict workplace requirements for other uses. The pre-publication version of the draft risk management rule is currently available for review, and a 45-day public comment period will begin once it is published in the Federal Register. NMP is integral to the manufacture of semiconductors and lithium-ion batteries, both of which are specifically addressed in the draft rule. The EPA will host a public webinar on June 20 at 1:00 pm EDT to discuss the proposed regulations. Read the announcement from the EPA; 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.

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 and emerging technologies and materials; life cycle assessments 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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