9/13/24

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• U.S. Commerce Department Hosts Supply Chain Summit
• Advisory Committee Explores AI Data Center Risks and PCBs

QUOTE OF THE WEEK 

• Key Takeaways from the U.S. Department of Commerce’s Supply Chain Summit

IPC ADVOCACY AND YOU

• IPC Rallying Support for PCB Investments in FY25 Defense Bill
• IPC Building Stronger Relationships with European Officials
• Zentech Hosts U.S. Rep. Darin LaHood for a Tour of its Manufacturing Facility
• Mectronx Welcomes U.S. Sen. Ron Johnson for a Plant Tour
• Navigating the U.S. Election’s Impact on Electronics Manufacturing

DEFENSE & SECURITY

• U.S. Office of Strategic Capital Seeks Industry Input on Defense Technology

ENVIRONMENT & SUSTAINABILITY

• IPC Webinar Demystifies EU Due Diligence Directive
• New FAQs on EU Corporate Sustainability Reporting Directive
• Revisions to RoHS Plan Include New Technical Exemptions Guidance
• U.S. EPA Delays New PFAS Reporting Rule Under TSCA

WORKFORCE

• California Electronics Makers Can Access Workforce Training at Little to No Cost

UPCOMING EVENTS

• IPC EMS Europe Day: Better Solutions for the Electronics Industry – Gdańsk, Poland (September 25, 2024)
• IPC APEX EXPO 2025 – Anaheim, California, USA (March 15-20, 2025)

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US

TOP NEWS OF THE WEEK

U.S. Commerce Department Hosts Supply Chain Summit: This week, IPC participated in the U.S. Department of Commerce’s first-ever Supply Chain Summit, held in collaboration with the Council on Foreign Relations in Washington, DC. The event brought together leaders from government, industry, and academia to focus on strategies to enhance supply chain resilience and tackle vulnerabilities highlighted by the COVID-19 pandemic and geopolitical tensions. U.S. Secretary of Commerce Gina Raimondo emphasized the importance of strengthening supply chains to boost national security and economic competitiveness, underscoring the need for collaboration between public and private sectors. IPC’s Chris Mitchell attended the summit and praised the Department’s leadership, stating, “Secretary Raimondo’s leadership at Commerce has been transformative, and the work of its Supply Chain Center is impressive.” He also highlighted the importance of rebuilding U.S. industrial capacities, particularly in electronics, which he described as a “horizontal industry that cuts across every sector of the economy.” A key highlight of the summit was the unveiling of SCALE, a first-of-its-kind diagnostic tool designed to assess industrial resiliency and supply chain risks. This effort demonstrates the Department’s commitment to prioritizing American manufacturing segments including printed circuit board fabrication and electronic assembly, which require urgent attention to remain globally competitive. Watch the event recording, read the press release, and see the fact sheet announcing new actions on supply chain resilience. IPC Contact: Rich Cappetto.

Advisory Committee Explores AI Data Center Risks and PCBs: This week, the U.S. Commerce Department’s Advisory Committee on Supply Chain Competitiveness (ACSCC) held its third meeting of the year to address pressing vulnerabilities in the U.S. supply chain, particularly those affecting the development of artificial intelligence data centers. Led by Secretary of Commerce Gina Raimondo, the meeting examined a report on the risks facing AI infrastructure, with a specific mention of printed circuit board assemblies as an area of concern. Secretary Raimondo raised the possibility of “Buy American” policies to enhance national security, but committee members said it was more likely companies would need to be nudged to buy American, either by incentive or by requirement. The discussion also touched on the need for policies to stimulate domestic demand for key products to help companies justify the decision to invest in U.S. production and the latest manufacturing processes. If and when the ACSCC and the Commerce Department recommend policy actions to address these concerns, it could be another big step toward building support for key segments of the electronics industry. IPC Contact: Rich Cappetto.

QUOTE OF THE WEEK

“The U.S. Government is making a big investment in the semiconductor industry, even as other critical segments of the industry (including printed circuit board fabrication and electronic assembly) struggle to make critical investments to stay relevant in the global marketplace. A focus on building the most cutting-edge semiconductor chips without the ability to build cutting-edge electronic systems is short-sighted. The U.S. electronics industry remains committed to working with the Commerce Department and other federal officials to crystallize the urgent need and opportunity to bolster the U.S. electronics manufacturing industry.” — Chris Mitchell, IPC Vice President of Global Government Relations, in a LinkedIn post on key takeaways from the U.S. Department of Commerce’s Supply Chain Summit

IPC ADVOCACY AND YOU

IPC Rallying Support for PCB Investments in FY25 Defense Bill: Members of the U.S. Congress are back in Washington for the last phase of legislative activity before the November 5 election, including making at least tentative spending plans for FY25, which begins Oct. 1. IPC is focused on the fact that the U.S. Senate version of the FY25 defense appropriations bill includes $45 million for investment in trusted printed circuit boards (PCBs) under the Defense Production Act, but the House version includes no such funding. With a short-term “continuing resolution” likely to be enacted to fund the government for the first few months of the new fiscal year – kicking the end-game into November or December – IPC is stepping up its advocacy efforts to achieve a positive resolution. Stay tuned next week for an IPC Action Alert request to ask your elected officials to support the Senate number. IPC contact: Rich Cappetto.

IPC Building Stronger Relationships with European Officials: The IPC Europe government relations team continues to build strong relationships and facilitate productive dialogues between IPC members and political leaders across Europe. Recently, two notable site visits by European officials demonstrated this effort. At Group ACB’s facility in Dendermonde, Belgium, a delegation from the European Commission’s DG GROW (Directorate General for Internal Market, Industry, Entrepreneurship, and SMEs) visited to gain deeper insights into the complexities of the electronics industry, with a focus on PCB manufacturing. Cesare Dunker, Digital Policy Officer at the European Commission, remarked, “The electronics industry is critical to powering Europe’s leading technologies, from electric cars to sustainable energy. [It was] great to hear insights from experts on the ground, and to understand the challenges and opportunities the industry faces. I look forward to continuing the conversation and exploring how we can support the development of future technologies!” Alison James, IPC’s Senior Director for Europe Government Relations, emphasized key points from the “Industry Call to Action” presented earlier this year by IPC on behalf of the electronics manufacturing sector. This visit highlights the importance of collaboration and knowledge exchange in driving innovation within the electronics industry. See some highlights and photos on LinkedIn here and here. Let us know if your company is interested in hosting a site visit. IPC Contact: Alison James.

Zentech Hosts U.S. Rep. Darin LaHood for a Tour of its Manufacturing Facility: As part of an IPC swing through Illinois, Zentech Manufacturing recently hosted U.S. Rep. Darin LaHood (R-IL) at its facility in Bloomington, where he witnessed their impressive “mission critical manufacturing” capabilities and learned about the importance of investing in the domestic electronics ecosystem. While Congressman LaHood is not yet fully supportive of H.R. 3249, the Protecting Circuit Boards and Substrate Act, he was interested in the concept of tax incentives for investments in the industry and shared our concerns about workforce development and security risks in critical infrastructure. The conversation underscored the vital role of reliable electronics in sectors ranging from defense to healthcare, agriculture, and communications. Reach out to our Government Relations team if we can help facilitate these crucial conversations with your local political candidates. IPC Contact: Rich Cappetto.

Mectronx Welcomes U.S. Sen. Ron Johnson for a Plant Tour: Wisconsin-based Mectronx recently hosted staff from the office of U.S. Senator Ron Johnson (R-WI) for a plant tour. The tour showcased Mectronx capabilities and reinforced the importance of electronics manufacturing to the state’s economy, national security, and economic innovation. Mectronx has shared the IPC “silicon-to-systems” message, including support for tax incentives to promote domestic manufacturing of PCB and PCBAs. Senator Johnson is a senior member of the Senate Finance Committee, which has jurisdiction over federal tax policy. Company President Steve Lechtenberg said, “It’s vital for our representatives in Washington to understand the incredible work Mectronx does right here in Oconomowoc, and how important high-reliability electronics manufacturing is to our key supply chains. I encourage others to reach out to the IPC Advocacy team about hosting a tour for your representatives.” IPC Contact: Rich Cappetto.

Navigating the U.S. Election’s Impact on Electronics Manufacturing: As the U.S. election season continues to unfold, the potential implications for the electronics manufacturing industry are coming into focus. In a recent interview with EPS News, IPC’s Chief Economist Shawn DuBravac discussed the potential for changes in industrial policy, interest rates, and other critical issues. IPC encourages you to engage with local candidates and highlight the importance of electronics manufacturing in national security and competitiveness. Read the article and reach out to our Government Relations team if we can help facilitate these crucial conversations with your local political candidates. IPC Contact: Rich Cappetto.

DEFENSE AND SECURITY

U.S. Office of Strategic Capital Seeks Industry Input on Defense Technology Investments: The U.S. Office of Strategic Capital (OSC), established in December 2022 and formally codified under the FY2024 National Defense Authorization Act, aims to attract private capital to bolster critical technologies in the defense supply chain. According to its 2024 investment strategy, OSC's focus is on key enabling technologies at the component level across 31 critical technology areas. As the office progresses in developing a program of loans and loan guarantees, it is actively seeking input from companies, industry associations, lenders, and financial institutions regarding their capital needs. Comments are due by October 22, 2024. To support its members, IPC will present a briefing on the OSC's initiatives; more details will be shared soon. IPC Contact: Rich Cappetto.

ENVIRONMENT & SUSTAINABILITY

IPC Webinar Demystifies EU Due Diligence Directive for Electronics Industry: This week, IPC, ITI, and Anthesis Group cohosted a webinar aimed at demystifying the complexities of the EU Corporate Sustainability Due Diligence Directive (CSDDD) for the electronics manufacturing industry. The directive requires manufacturers to ensure their global value chains respect human rights and adhere to environmental standards. Industry experts discussed the scope, applicability, and objectives of the CSDDD, providing guidance on how companies can implement good governance practices and mitigate risks. Attendees learned practical steps for conducting due diligence, ensuring compliance with the directive, and managing risks related to human rights, environmental impact, and corporate governance. With the directive also empowering victims of corporate abuse to pursue legal action within EU Member States, the webinar emphasized the importance of proactive measures to protect businesses from potential litigation while advancing sustainability across the supply chain. Watch a recording of the webinar here, and contact us with questions about compliance with CSDDD. IPC Contact: Diana Radovan.

New FAQs on Requirements for EU Corporate Sustainability Reporting Directive: The European Commission has recently published a comprehensive FAQ document designed to assist companies in understanding and complying with the new Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). These address critical issues such as the scope of reporting, application dates, and specific exemptions. Notably, the FAQs clarify when companies can rely on estimates for environmental, social, and governance (ESG) data instead of collecting information directly from their value chain. The aim is to reduce administrative burdens while ensuring that reported information is both usable and comparable across the EU. If your company is affected by these regulations, let us know, and make sure to review the FAQs to stay informed and compliant with the latest standards. IPC Contact: Diana Radovan.

Revisions to RoHS Plan Include New Technical Exemptions Guidance: The European Commission has released an updated version of the “Rolling Plan,” detailing the status of technical exemptions under the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive. This update is crucial information for companies that are navigating the exemption process, which allows for specific exemptions from the directive's restrictions under defined conditions. For example, the exemptions allow companies to apply for relief from certain restrictions based on factors such as the availability and reliability of substitutes, environmental and health impacts, socioeconomic considerations, and potential effects on innovation. The process for applying for or renewing an exemption is rigorous, involving a technical assessment, stakeholder consultation, and a decision period that can take 18 to 24 months. If these new technical exemptions affect your company, review the updated Rolling Plan and contact IPC for assistance with your application to ensure proper compliance. IPC Contact: Diana Radovan.

U.S. EPA Delays New PFAS Reporting Rule Under TSCA: In a significant development for manufacturers and importers of PFAS and PFAS-containing articles, the U.S. Environmental Protection Agency (EPA) has announced a delay in the reporting period for PFAS data submission under the Toxic Substances Control Act (TSCA). The new rule requires manufacturers and importers of PFAS since 2011 to report information on chemical identity, uses, production volumes, environmental and health effects, worker exposure, and disposal practices. Originally set to begin in November 2024, the reporting period will now start in July 2025. Small businesses reporting PFAS imports solely within articles will have until July 2026. This development, part of the EPA’s broader PFAS Strategic Roadmap, reflects the agency’s continued efforts to collect comprehensive data on PFAS to support future regulatory actions. As this rule applies to all manufacturers and importers of PFAS and PFAS-containing articles—including those in the electronics industry—IPC has actively engaged with the EPA on this policy issue and will continue to do so. For more information, be sure to review the TSCA reporting and recordkeeping requirements and let us know if you have thoughts or questions. IPC Contact: Diana Radovan.

WORKFORCE

California Electronics Makers Can Access Workforce Training at Little to No Cost: Electronics manufacturers in California now have a new opportunity to enhance their workforce skills with minimal financial impact, thanks to a partnership between IPC and the California Employment Training Panel (ETP). IPC, representing nearly 1,500 locations across the state, is the largest provider of workforce training in the electronics industry, which employs approximately 275,000 people in California. Through this program, companies can access customized IPC training for roles such as PCB assembly operators, manufacturing engineers, and electronics assembly operators, with up to $650,000 in training costs reimbursed over 12 to 24 months. This new initiative aims to help companies grow while benefiting their workers and improving retention. It is especially beneficial to small and medium-sized businesses, allowing them to invest in skills that will bolster their competitiveness in key industries like aerospace, automotive, and defense. For more information on how IPC and ETP can aid California manufacturers, contact Victoria Hawkins, IPC director of workforce grants and funding. IPC Contact: Victoria Hawkins.

UPCOMING EVENTS

IPC EMS Europe Day: Better Solutions for the Electronics Industry – Gdańsk, Poland (September 25, 2024) – Join IPC, in4ma, TEK-Day, and Renex for an event at AmberExpo in Gdańsk, Poland, focused on shaping the future of Europe’s EMS industry. The day will feature critical discussions on the challenges facing Europe’s PCB sector, insights into the Europe Chips Act, and key perspectives ahead of Poland’s EU Presidency in 2025. IPC’s Alison James, Senior Director, European Government Relations, will be presenting on IPC’s Call to Action for a Resilient European Electronics Ecosystem. Don’t miss this opportunity to network with industry leaders and policymakers while gaining valuable insights into the future of electronics manufacturing. Check out the program overview and register for FREE 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.

HELP US SPREAD THE WORD ON SOCIAL MEDIA!

Today I'm pleased to be at the U.S. Department of Commerce’s 2024 Supply Chain Summit, where senior Commerce and White House officials are detailing their progress in bringing greater visibility to industrial supply chains and greater focus on addressing strategic vulnerabilities. In remarks this morning, Secretary Gina Raimondo welcomed the ongoing public and private sector interest in supply chain resiliency in the wake of the COVID pandemic and recent geopolitical tensions. She underscored the importance of tackling vulnerabilities through greater domestic and international collaboration.

As the U.S. Congress returns to Washington this week for its last burst of legislative activity before the elections in November, IPC is continuing to focus on the U.S. defense spending plan for 2025. Specifically, we are advocating for funding to ensure trusted printed circuit boards) are used in the defense electronics supply chain. The U.S. Senate version of the bill includes $45 million for this purpose, but the House version does not.

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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