IPC Global Advocacy Report

8/9/24

Dear IPC Members,

Here is your weekly read on what your IPC Government Relations team has been up to on your behalf. 

While the U.S. Congress is in recess, we’re reviewing two key defense bills that would help strengthen the U.S. electronics sector. Read on to learn more, including what you can do to endorse these bills to your elected officials.

Meanwhile, on the European front, we’re reading a paper by Jan-Peter Kleinhans, one of Europe’s top global semiconductor market experts, where he warns of Europe’s chip strategy gaps and why it’s crucial for Europe to have a semiconductor strategy rooted in geopolitical reality. This is one reason why IPC is leading the European electronics manufacturing industry in an urgent call-to-action to rebuild a robust electronics ecosystem in Europe.

As always, we value your feedback and questions.

Chris Mitchell
Vice President, Global Government Relations

 

The Headlines at a Glance: 

QUOTE OF THE WEEK 

UNITED STATES

  • U.S. Defense Bills with Pro-Electronics Language Move Forward
  • U.S. Gov’t Issues New Guidance on Mitigating Export Diversion Risks
  • IPC Education Team Makes the Rounds in Washington
  • IPC Applauds $400M Investment to Boost Advanced Packaging in Arizona

SUSTAINABILITY & ENVIRONMENT

  • IPC Supports Push for Sustainable Chemistry in Electronics Industry
  • IPC Tells Congress: The World Runs on Electronics, and Electronics Depend on Chemistry
  • China Introduces Amended Restrictions on Phthalates in 2026

UPCOMING EVENTS

  • Building Electronics Sustainably – Unique Challenges Facing the Electronics Manufacturing Industry: Webinar (August 28, 2024)
  • Demystifying the EU Corporate Sustainability Due Diligence Directive (CSDDD) for the Electronics Manufacturing Industry (September 11, 2024) 
  • IPC APEX EXPO 2025: Anaheim, California, USA (March 15-20, 2025)

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KEEP IN TOUCH WITH US

 

QUOTE OF THE WEEK

“Europe has minimal capacity for these post-wafer fabrication processes, including packaging, production of printed circuit boards and substrates. With member states' subsidies largely targeting front-end fabs, Europe will still rely on Asia for downstream processes.”

— Jan-Peter Kleinhans, one of Europe’s top global semiconductor market experts, on the missing pieces in Europe’s chip strategy.

UNITED STATES
U.S. Defense Bills with Pro-Electronics Language Move Forward: IPC is applauding the work of the U.S. House and Senate Armed Services Committees and the Senate Appropriations Committee for advancing key legislation before heading home for their August work period. These bills include IPC-sought provisions that would strengthen the electronics ecosystem. Last week, the Senate Appropriations Committee approved its Defense Appropriations Bill for FY2025, which includes a $500 million increase over the President’s budget request for Defense Production Act (DPA) investments, including $45 million for printed circuit board manufacturing. Earlier this year, IPC and the PCBAA submitted a letter signed by 49 industry executives urging increases in DPA funding to support the U.S. PCB industry. IPC also convened an “IMPACT Day” in Washington in May, during which IPC members visited more than 14 congressional offices to press for this funding. IPC also endorsed a defense investment plan offered by Sen. Roger Wicker (R-MS), which called for an additional $300 million in FY25 investments in defense technologies including microelectronics, with additional funding in future years. The other bills, the House and Senate versions of the FY25 National Defense Authorization Act (NDAA), would require the Pentagon to update Congress on its efforts to close the manufacturing gap for PCBs and to implement a trusted supply chain standard like IPC-1791. IPC is urging final passage of these bills when Congress returns to DC in September. In the meantime, IPC encourages you to take advantage of the August recess and send emails, make phone calls, or meet with your elected officials at their local offices or at public events. Even better, invite an elected official to one of your facilities. IPC’s GR team can help arrange meetings or facility tours and provide you with talking points and handouts. IPC Contact: Rich Cappetto.

U.S. Gov’t Issues New Guidance on Mitigating Export Diversion Risk: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has released new guidance designed to help industry and academia prevent export diversions to countries or entities of concern. The guidance informs stakeholders about potential risks beyond those on public screening lists, such as the Entity List. It also introduces a recommended best practice for screening transaction parties using the online resources of the Trade Integrity Project, which identifies third-country suppliers who export Common High Priority List items to Russia. For IPC members, this may mean an urgent need to enhance screening processes; adopt additional due diligence measures; strengthen training and compliance programs; and seek closer collaboration with BIS and other industry stakeholders. By implementing these practices, members can better protect their operations, maintain regulatory compliance, and contribute to national security. Read more in the BIS press release, and let us know if this affects you. IPC Contact: Rich Cappetto.

IPC Education Team Makes the Rounds in Washington: IPC Vice President of Education David Hernandez and his team spent several days in Washington recently, forging relationships with leaders and policymakers in the national workforce development arena. As part of the agenda, IPC participated in the prestigious annual Horizons Summit, hosted by Jobs for the Future, which brings together leaders from education, workforce development, business, government, and philanthropy to promote equitable economic advancement. At the summit, IPC showcased its pioneering registered apprenticeship programs and engaged with thought leaders from the American Enterprise Institute, Apprenticeships for America, Bipartisan Policy Center, Progressive Policy Institute, Urban Institute, and others, highlighting both challenges and opportunities for the electronics industry. Hernandez also met with the office of Senator Mike Braun (R-IN), a key supporter of the Youth Apprenticeship Advancement Act, as well as the majority staff of the Senate Committee on Health, Education, Labor, and Pensions. IPC emphasized that electronics manufacturers are vital to U.S. national security and economic competitiveness, and current workforce challenges are hindering the industry. IPC’s recent white paper on workforce challenges received widespread approval from the assembled leaders. Learn more on the IPC Blog. IPC Contact: David Hernandez.

IPC Applauds $400M Investment to Boost Advanced Packaging in Arizona: IPC commends the U.S. Department of Commerce for announcing a preliminary agreement on a $400 million direct investment in Amkor Technology to enhance advanced packaging technologies in Arizona. This investment is set to create an estimated 2,000 jobs and facilitate the packaging and testing of millions of chips for IT and communications infrastructure, including 5G/6G and large-scale data centers. This commitment exemplifies a good use of the CHIPS for America program, which highlights advanced packaging as one of its four main pillars. IPC has been a strong advocate for robust investment in advanced packaging and OSAT, and IPC’s influential report on advanced packaging was cited by the Department of Commerce in its strategic plan. IPC Contact: Rich Cappetto.

 

SUSTAINABILITY & ENVIRONMENT

IPC Supports Push for Sustainable Chemistry in Electronics Industry: The upcoming White House Sustainable Chemistry Strategy should address the critical “pain points” that the electronics industry faces in transitioning to safer, more sustainable products, according to a letter signed by IPC and sent by Change Chemistry, a coalition of over 100 members, to the White House Office of Science and Technology Policy (OSTP). Change Chemistry also organized two recent policy events anticipating the OSTP report: a Congressional briefing on July 31, and a roundtable co-hosted with the Department of Energy on August 1. Follow Change Chemistry on LinkedIn or let us know if you have any questions. IPC Contact: Kelly Scanlon.

IPC Tells Congress: The World Runs on Electronics, and Electronics Depend on Chemistry: IPC was pleased to participate in a recent congressional reception that focused on the crucial role of chemistry in electronics manufacturing. The event was hosted by the American Chemistry Council in partnership with the Alliance for Chemical Distribution, the American Chemical Society, and the Congressional Chemistry Caucus. IPC’s Rich Cappetto, Senior Director of North American Government Relations, met with dozens of congressional staff and industry representatives and stressed the importance of chemistry in manufacturing PCBs, PCB assemblies, wire harnesses, and advanced packaging. A secure and resilient supply chain “from silicon to systems” requires manufacturers to maintain access to essential chemicals and ensure their safe use. Regulation of these chemicals must be practical, cost-effective, and risk-prioritized to allow U.S. manufacturers to innovate and compete globally. As the electronics industry faces growing demands, IPC continues to advocate for policies that strengthen both the electronics supply chain and the chemistry that supports it. IPC Contact:  Rich Cappetto.

China Introduces Amended Restrictions on Phthalates in 2026: China’s State Administration of Market Regulation has issued the first amendment to the national standard GB/T 26572-2011, which specifies restrictions on hazardous substances in electronics, in alignment with China RoHS (Restriction of Hazardous Substances). This amendment introduces four types of phthalates, which are chemicals used to make plastics more durable. These include Diisobutyl Phthalate (DIBP), Dibutyl Phthalate (DBP), Benzyl Butyl Phthalate (BBP), and Bis(2-ethylhexyl) Phthalate (DEHP) with a regulated concentration limit of 0.1%. This amendment will come into effect on January 1, 2026. For more details, see the official announcement. IPC Contact: Kelly Scanlon.

 

UPCOMING EVENTS

Building Electronics Sustainably – Unique Challenges Facing the Electronics Manufacturing Industry: Webinar (August 28, 12:00 pm EDT) – Join IPC for a crucial discussion led by Dr. Kelly Scanlon, IPC's lead sustainability strategist, focusing on the sustainability challenges within the electronics manufacturing supply chain. This webinar will explore how reliable, accurate, and secure data can empower designers and manufacturers to overcome these challenges and achieve their sustainability goals. Attendees will learn to identify key sustainability issues, understand the central role of data, and brainstorm solutions to data-related challenges. Don't miss this chance to contribute to a more sustainable future in electronics manufacturing and get a preview of the upcoming special session at ACLCA 2024. Register for FREE here.

Demystifying the EU Corporate Sustainability Due Diligence Directive (CSDDD) for the Electronics Manufacturing Industry: Webinar (September 11, 10:00 am EDT) -- The Corporate Sustainability Due Diligence Directive (CSDDD) is a European Union directive that introduces legal obligations on businesses to respect human rights and the environment. It requires applicable companies to conduct human rights and environmental due diligence across their global value chain. It also includes certain obligations regarding climate change as well as language empowering victims of corporate abuse to sue companies before national courts of EU Member States for harm occurring within their value chain. Attendees will learn about the scope, applicability, and objectives of the Corporate Sustainability Due Diligence Directive;  get information on what is needed to ensure that the value chain actors respect human rights, adhere to environmental standards, and implement good governance; and discover practical steps to get started conducting due diligence to mitigate risks across your value chain and demonstrating compliance with the Directive. Register for FREE webinar here.

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


Congratulations to Senate Appropriations leadership for advancing a defense spending bill which includes solid funding to build the domestic industrial base. With many competing priorities and limited resources, the electronics industry is appreciative that the senators showed a willingness to dive deep on the issue of printed circuit board manufacturing and its critical importance to the supply chains for many critical technologies, including defense systems.

 

IPC welcomes Diana Radovan PhD (Dr. rer. nat.) ELS, to the newly created role of sustainability policy director. Based in Munich, Dr. Radovan will lead the industry’s engagement with the government on sustainability-related matters. Dr. Radovan will work closely with IPC’s Lead Sustainability Strategist, Dr. Kelly Scanlon, to provide industry value through sustainability policy efforts.

 

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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