9/6/24

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• U.S. EPA Delays New PFAS Reporting Rule Under TSCA

QUOTE OF THE WEEK 

• Bringing Manufacturing Back to the U.S.: Easier Said Than Done

UNITED STATES

• 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
• How Will the U.S. Presidential Election Affect Electronics Manufacturing?

DEFENSE & SECURITY

• U.S. Office of Strategic Capital Seeks Industry Input on Defense Technology  
• IPC Continues Rallying Support for PCB Investments in FY25 Defense Appropriations

ENVIRONMENT & SUSTAINABILITY

• New FAQs on EU Corporate Sustainability Reporting Directive
• Revisions to RoHS Plan Include New Technical Exemptions Guidance

WORKFORCE

• IPC and Stephen F. Austin State University Partner on Workforce Development

UPCOMING EVENTS

• Demystifying the EU Corporate Sustainability Due Diligence Directive (CSDDD) for the Electronics Manufacturing Industry – Webinar (September 11, 2024)
• 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)

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TOP NEWS OF THE WEEK

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, which is critical for shaping 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 questions. IPC Contact: Diana Radovan.

QUOTE OF THE WEEK

“The goal of bringing manufacturing back to the U.S. is a multifaceted challenge that extends beyond simple economics. It involves addressing labor cost disparities, reconfiguring complex supply chains, overcoming a skilled labor shortage, making substantial capital investments, navigating economic and trade policies, and leveraging technological advancements. While the benefits of reshoring are clear — job creation, economic growth and enhanced national security—the path to achieving it is fraught with obstacles that require careful consideration and strategic planning. As such, the ambition of revitalizing American manufacturing remains, for now, easier said than done.” — Guankai Zhai, Founder of LudaTech, Inc., in Forbes on the challenges of reshoring manufacturing jobs to the United States, despite the surge in rhetoric and policy initiatives aimed at overcoming them.

UNITED STATES

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 showed interest 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. IPC will continue to engage Congressman LaHood and his staff on H.R. 3249 and related tax policy initiatives for 2025. IPC Contact: Rich Cappetto.

Mectronx Welcomes U.S. Sen. Ron Johnson for a Plant Tour: Wisconsin-based Mectronx, which specializes in rapid prototyping, board fabrication and assembly, 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. Presidential Election’s Impact on Electronics Manufacturing: As the U.S. presidential election season unfolds, the potential implications for the electronics manufacturing industry are becoming increasingly relevant. In a recent interview with EPS News, IPC’s Chief Economist Shawn DuBravac discussed the uncertainty surrounding industrial policy, interest rates, and other critical issues. With the potential for shifts in policy and economic conditions, IPC encourages members 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.

IPC Continues Rallying Support for PCB Investments in FY25 Defense Appropriations: Members of the U.S. Congress will be back in Washington next week for the last period of legislative activity before the November 5 election, including 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 on October 1, IPC is intensifying its advocacy efforts to achieve a positive resolution on this issue. If your company operates or has key customers in California or Connecticut, we could use your help in contacting key members of the House Appropriations Committee from those states. If you’re willing to help, please contact IPC’s Rich Cappetto.

ENVIRONMENT & SUSTAINABILITY

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.

WORKFORCE

IPC and Stephen F. Austin State University Partner on Workforce Development: IPC has joined forces with the Stephen F. Austin State University's Center for Applied Research and Rural Innovation (CARRI) in Nacogdoches, Texas and the IPC Education Foundation to elevate workforce development in electronics manufacturing. This strategic partnership will integrate IPC’s industry standards and certifications into SFASU’s engineering curriculum, providing students with vital skills and hands-on training. Supported by generous contributions from CARRI and Weller Tools, including advanced soldering equipment, the collaboration aims to bridge the gap between academia and industry, ensuring graduates are well-equipped to meet the evolving demands of the electronics manufacturing sector. This initiative is set to foster innovation, expand the talent pool, and contribute to the future of the industry. Read more on the IPC Blog. IPC Contact: Cory Blaylock

UPCOMING EVENTS

Demystifying the EU Corporate Sustainability Due Diligence Directive (CSDDD) for the Electronics Manufacturing Industry – WEBINAR (September 11, 2024, 10:00 AM CDT) – Join IPC, ITI, and Anthesis Group for an in-depth webinar that clarifies the complexities of the EU Corporate Sustainability Due Diligence Directive (CSDDD). This directive introduces legal obligations for businesses to respect human rights and environmental standards across their global value chains. The session will cover the scope and applicability of the CSDDD, offering insights into how companies can ensure their value chain actors adhere to these standards and implement good governance practices. Don’t miss this opportunity to gain critical insights from industry experts and ensure your business is prepared to meet these new requirements. Register for FREE here.

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!

In case you missed it! Our latest report, "Securing EU’s Electronics Ecosystem," reveals Europe’s growing dependency on non-EU regions for electronics manufacturing, especially in critical sectors like aerospace, defence, and healthcare. Despite the European Chips Act, Europe's market share in vital components like PCBs and advanced packaging is expected to decline to 15% by 2035. Key findings: EU electronics production could fall from 16.5% to 15% global market share by 2035 PCB production in Europe may meet only 11% of local demand by 2035 Read the full report.

Blue-collar jobs are the backbone of countless industries, from construction to electronics manufacturing, yet they often don’t get the recognition they deserve. The stigma surrounding vocational careers has created a significant awareness gap, leaving many young people unaware of the stability, earning potential, and fulfillment these roles offer. It’s time we shift the narrative and highlight the value skilled trades bring to our economy and communities. GenZ is looking for job security and meaningful work—two things blue-collar careers provide in spades. While social media influencers are starting to show the real-life benefits of these careers, it’s up to us to ensure the next generation knows that the American Dream is alive and well in the skilled trades.

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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