IPC Global Advocacy Report

7/12/24

Dear IPC Members,

This week, in another win for IPC advocacy, the Biden administration announced a plan to invest $1.6 billion in advanced packaging R&D under the CHIPS and Science Act.

In a New York Times article (subscription required), yours truly was quoted, calling this investment “an important step forward.” You’ll find more of my commentary about this announcement in an article by Fierce Electronics, as well. IPC has long advocated for more attention to advanced packaging, given its central role in innovation and performance in electronics.

In other news, if you or someone you know is interested in sustainability in electronics, you’re invited to join IPC and iNEMI for an in-depth webinar on July 17 on the most pressing circularity challenges in electronics manufacturing.

As the IPC Government Relations team continues to advocate for your interests worldwide, we welcome your questions and feedback.

Chris Mitchell
Vice President, Global Government Relations

 

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

  • U.S. to Invest $1.6 Billion in Advanced Packaging R&D

QUOTE OF THE WEEK 

  • Another Step Toward the “Silicon-to-Systems" Approach to CHIPS Programs

DEFENSE & SECURITY

  • U.S. Congress Making Mixed Progress on Defense Electronics

EUROPEAN UNION

  • IPC Presses EU Governments on ‘Silicon-to-Systems’ Strategic Concerns
  • EU Should Use More ‘Subsidies and Tariffs,’ Top Official Says

IPC ADVOCACY AND YOU

  • Strategic Challenges in Building Domestic Electronics Manufacturing

UPCOMING EVENTS

  • Circularity Challenges in Electronics Manufacturing: Webinar (July 17, 2024)
  • IPC APEX EXPO 2025: Anaheim, California, USA (March 15-20, 2025)

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TOP NEWS OF THE WEEK


U.S. to Invest $1.6 Billion in Advanced Packaging R&D: In another advocacy win for IPC, the Biden administration announced it is investing up to $1.6 billion in R&D for advanced packaging of semiconductors as part of the CHIPS for America program. The investment will drive R&D in five key areas and address the growing demand for advanced packaging driven by applications like artificial intelligence, high-performance computing, and low-power electronics. According to IPC, citing Defense Department data, the U.S. currently accounts for only about 3% of global advanced packaging, with most of this work being done in Asia. In a New York Times story, IPC’s Chris Mitchell said, “Today’s announcement is another important step in the right direction.” Mitchell reacted to the announcement with additional commentary in an article by Fierce Electronics. IPC has advocated a “silicon-to-system" approach to the CHIPS Act, including not only chips but also adjacent technologies such as packaging and IC substrates, to ensure the resilience and security of the supply chain. Further details will be shared in an upcoming webinar on CHIPS.gov. IPC Contact: Rich Cappetto.

 

QUOTE OF THE WEEK

This announcement is another important step in the right direction. The U.S. needs to continue to complement investments in silicon fabrication with investments in packaging given that packaging is increasingly the driver for advancements in performance, function, and security. As IPC has highlighted in research reports, the U.S. ecosystem for advanced packaging is weak, especially in integrated circuit substrate fabrication — a key building block to any semiconductor component.

Addressing this strategic vulnerability through meaningful investments in R&D brings the U.S. closer to the ultimate goal of building cutting-edge electronics from silicon to systems. IPC looks forward to continued collaboration with the Department of Commerce to realize the goals set out in the CHIPS Act and to catalyze a revitalization across the broader U.S. electronics manufacturing industry.”

— Statement by Chris Mitchell, IPC VP of Global Government Relations, in Fierce Electronics on the U.S. Government’s announcement of $1.6 billion in funding for advanced packaging R&D.

 

DEFENSE AND SECURITY


U.S. Congress Making Mixed Progress on Defense Electronics: The U.S. Congress has taken a few steps forward on its annual defense legislation with mixed results for defense electronics. On the plus side, the House of Representatives passed its version of the FY2025 National Defense Authorization Act (NDAA), and language in the committee report accompanying the bill shows IPC’s influence. In multiple passages, the Armed Services Committee urges support for integrated circuit (IC) substrate investment; pushes the Pentagon to accelerate efforts to move the PCB supply chain to secure sources; urges the prioritization of Defense Production Act purchases for printed circuit boards and substrates; and requests briefings from the DOD on progress related to securing the supply chain for display technology. This week, the Senate filed its version of the FY25 NDAA. Notably, the accompanying committee report includes language offered by IPC (pp.164-165), urging updates from the Pentagon on efforts to close the industrial base manufacturing gaps for PCBs, substrates, and PCB Assemblies. Once the full Senate passes its version, a House-Senate conference committee will resolve any differences. On the minus side, we previously reported the disappointing action in the House FY25 defense spending bill which contains no funding for PCBs under the Defense Production Act. We’re still waiting on the Senate to move, but this week it was reported that Senate appropriations Chair and Vice Chair reached bipartisan agreement to increase the defense budget by $21 billion. At this point the House seems strongly opposed to such an increase. IPC continues to advocate for robust funding of investments to the electronics industry with any increase. In case you missed it, a recent article by IPC’s Rich Cappetto and PCBAA’s David Schild in Defense Opinion explains the situation and how a lack of funding to address U.S. shortfalls in electronic manufacturing could undermine national security and the success of the CHIPS and Science Act. IPC Contact: Rich Cappetto.

 

EUROPEAN UNION

IPC Presses EU Governments on ‘Silicon-to-Systems’ Strategic Concerns: In Brussels and beyond, IPC and the European electronics manufacturing industry are continuing to make the case for a “silicon-to-systems” industrial strategy. Recently, IPC published a new report in partnership with DECISION and in4ma, “Securing the European Union’s Electronics Ecosystem,” which predicts a further drop in Europe’s global market share and rising risks to an array of critical sectors including aerospace and defense. IPC also issued a “Call-to-Action” with support from more than 30 companies and 15 trade associations, all urging the adoption of an Electronics Manufacturing Strategy under the European Commission’s next five-year mandate, backed by investments and policies to reduce EU 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.

EU Should Use More ‘Subsidies and Tariffs,’ Top Official Says: In a recent speech, former Italian Prime Minister and European Central Bank President Mario Draghi provided a preview of his upcoming report on EU competitiveness, to be published in July. Draghi urged the EU to use “subsidies and tariffs to offset unfair advantages created by industrial policies and real exchange rate devaluations abroad,” warning that the bloc’s approach should, however, be “pragmatic, cautious and consistent.” Read the full report in Politico. The pending report forms part of the lead-up to the next European Commission mandate as new teams and priorities are formed for the coming five years. IPC Contact: Alison James.

 

IPC ADVOCACY AND YOU

Strategic Challenges in Building Domestic Electronics Manufacturing: As billions in strategic investments flow into the U.S. microelectronics industry, policymakers seem to face challenges in supporting the entire electronics supply chain. In a Q&A with SMT007 Magazine, IPC’s Chris Mitchell highlights the complexities in aligning government funding with industry needs. Despite the governments’ oft-stated understanding of our position and their eagerness to revive domestic manufacturing, they seem to face uphill battles to implement IPC’s holistic “silicon-to-systems” strategy. Mitchell emphasizes the need for the U.S. and all governments to help modernize facilities, foster trusted supply chains, invest in R&D, and expand the skilled workforce. He underscores the urgency of achieving strategic autonomy amid the risk of supply chain disruptions, noting the importance of government and industry collaboration in addressing current vulnerabilities and ensuring future competitiveness. Read the story in SMT007 MagazineIPC Contact: Chris Mitchell.

 

UPCOMING EVENTS

Circularity Challenges in Electronics Manufacturing: Webinar (July 17, 10:00 AM EDT) – Join IPC and iNEMI for an in-depth session revealing the insights and outcomes of their recent workshop at the Electronics Goes Green conference in Berlin. Focused on addressing the pressing circularity challenges in electronics manufacturing, this event will discuss industry-driven solutions and next steps. The webinar will cover new industry standards, tools, and educational resources to foster efficient and effective adoption of circularity throughout the electronics manufacturing value chain. Don’t miss presentations by Kelly Scanlon, IPC’s lead sustainability strategist, and Mark Schaffer, project manager at iNEMI. Register today for FREE!

IPC APEX EXPO 2025: Anaheim, California, USA (March 15-20, 2025) – Discover the newest innovations and hear from the best minds in the electronics manufacturing industry. IPC APEX EXPO 2025 will be our industry’s largest event in North America featuring a world-class trade show, professional development courses taught by industry experts, non-stop networking and more. Learn more here.

 

PLEASE "LIKE" AND "SHARE" OUR LINKEDIN POSTS


Check out today's The New York Times article on the Biden administration's plan to invest in R&D for "advanced packaging" under the CHIPS and Science Act, including a comment from yours truly. This is another important step in the right direction — a direction that IPC has urged and will continue to urge.

 

This week marks the launch of the all-new IPC México website! This launch will better serve Mexico and our Spanish-speaking members worldwide as a gateway to top-notch training courses, certifications, and standards.

 

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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