10/11/24

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• New IPC Report Examines Issues and Risks in the AI Supply Chain
• Raimondo and Advisers Focus on PCBs and AI Data Centers

QUOTE OF THE WEEK 

• U.S. Commerce Secretary Is “Uncomfortable” About the AI Supply Chain

IPC ADVOCACY AND YOU

• Congressional Support Grows for Defense Electronics Funding
• Defense Electronics: Now It’s Your Turn to Join in the Effort!

DEFENSE AND SECURITY

• U.S. DoD Awards $30M to TTM for UHDI Circuit Boards in a Win for “Silicon to Systems”

EUROPEAN UNION

• New TSMC Plant in Germany Underscores Need for Silicon-to-Systems Strategy

SUSTAINABILITY

• European Commission Publishes FAQ Document on New EcoDesign Regulation
• Sustainability Policy Priorities and IPC Advocacy: What’s Next?

TRADE AND SUPPLY CHAIN

• U.S. Exports Watchdog Urges Due Diligence by Electronics Manufacturers

OTHER HEADLINES IN THE NEWS

• Forbes | It’s Time to Make Manufacturing Cool Again
• Fast Company | Why more and more high-tech companies are choosing to “Make It in Michigan”
• Forbes | Operating in a World Rife with Uncertainty

UPCOMING EVENTS

• U.S. CHIPS Office Advanced Packaging Proposers’ Day: Rockville, Maryland and Online (Oct. 22)
• The New Eco-design Regulation and Digital Product Passports: What the Electronics Industry Needs to Know (Webinar, Oct. 30)

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US

TOP NEWS OF THE WEEK

New IPC Report Examines Issues and Risks in the AI Supply Chain: Opening a new front in IPC’s campaign for a “silicon-to-systems” approach to supply chain security, a new white paper from IPC explores the actions needed to improve the supply chain resiliency of U.S.-based artificial intelligence (AI) data centers. As reported here first, this issue was raised last month in a public meeting by U.S. Commerce Secretary Gina Raimondo and her Advisory Committee on Supply Chain Competitiveness, and IPC was proud to have provided a pre-publication version of this report to help inform their work. The white paper, coauthored by IPC’s Matt Kelly, Devan Iyer, and Chris Mitchell, provides recommendations on the infrastructure needed to build AI-based servers and data centers and how to strengthen associated electronics assembly capabilities in the United States. Download the report; read the IPC news release; and share the LinkedIn post. IPC Contact: Chris Mitchell.

Raimondo and Advisers Focus on PCBs and AI Data Centers: A newly published video recording of a U.S. Government advisory body meeting reveals growing awareness of the key role of electronics in driving AI, as well as risks in the supply chain. As reported here previously, IPC participated in the September meeting of the U.S. Commerce Department’s Advisory Committee on Supply Chain Competitiveness, including a discussion of the needs of artificial intelligence (AI) data centers. As seen in the video, the director of the department’s Supply Chain Center said her team had studied the needs of AI data centers “from top to bottom,” and one of the “top” concerns that emerged is printed circuit boards (PCBs). “We know that AI data centers need … really high-end, multilayer PCBs, which have very concentrated production in just a few geographies …and are getting less attention than, for example, chips in terms of supply chain risk.” In keynote remarks, Commerce Secretary Gina Raimondo said, “And when you get into it, and you realize all the cooling systems, all the circuit boards, all the components come from China, it’s a very uncomfortable feeling.” Also see the previous story about the new IPC white paper on AI data centers, which helped raise the issue. IPC Contact: Rich Cappetto.

QUOTE OF THE WEEK

“And when you get into it [the AI data center supply chain], and you realize all the cooling systems, all the circuit boards, all the components come from China, it’s a very uncomfortable feeling.” — U.S. Commerce Secretary Gina Raimondo, at the September meeting of the Commerce Department’s Advisory Committee on Supply Chain Competitiveness

IPC ADVOCACY AND YOU

Congressional Support Grows for Defense Electronics Funding: Our advocacy efforts on this issue continue to build. This week, six members of Congress led by Rep. Derrick Van Orden (R-WI) sent a joint letter to House Appropriations leaders in support of $45 million for PCB manufacturing in the U.S. defense budget for Fiscal Year 2025. Among the signers were co-sponsors of H.R. 3249, the PCBs Act, including the lead sponsor, Rep. Blake Moore (R-UT), and original cosponsor, Rep. Anna Eshoo (D-CA). Earlier this year, Van Orden visited TTM and TCLAD facilities in his district to speak with company leadership and employees; not surprisingly, he has become a strong supporter for the industry in Congress. IPC Contact: Rich Cappetto.

Defense Electronics: Now It’s Your Turn to Join in the Effort! As Congress finalizes government funding for FY25, the Senate’s version includes $45 million for PCB manufacturing under the Defense Production Act (DPA) account. However, unless the House follows suit, this funding could drop to zero, leaving the U.S. dependent on non-domestic sources of the PCBs that power all defense electronics. To support IPC’s efforts, please visit this link to send a message to your U.S. representative with just a few clicks. And during this political campaign season, consider inviting elected officials and local candidates to visit your facility and learn about this industry. We can help arrange and support such visits. IPC Contact: Rich Cappetto.

DEFENSE & SECURITY

U.S. DoD Awards $30M to TTM for UHDI Circuit Boards in a Win for “Silicon to Systems”: The U.S. Dept. of Defense (DoD) recently announced an award of $30 million to IPC member TTM Technologies to ramp up U.S.-based production of ultra-high density (uHDI) printed circuit boards (PCBs) at a facility being developed in Syracuse, NY. The DoD said the award will “enable the timely delivery of cutting-edge technology to support vital defense programs.” This award is significant for U.S. technology leadership and national security, as explained in more detail on the IPC Blog. The action comes amid ongoing advocacy by IPC and the U.S. Partnership for Assured Electronics (USPAE) for a "silicon-to-systems" strategy. IPC Contacts: Chris Mitchell and Rich Cappetto.

EUROPEAN UNION

New TSMC Plant in Germany Underscores Need for Silicon-to-Systems Strategy: The recent groundbreaking for Taiwan Semiconductor Manufacturing Co.'s (TSMC) €10 billion plant in eastern Germany is a turning point in Europe’s pursuit of technological sovereignty, but it’s also another reminder of the need for a “silicon-to-systems strategy, write IPC’s Chris Mitchell and Kate Koger in an IPC Blog. The new plant is the company’s first European site, a milestone on the path to Europe’s goal to produce 20 percent of the world’s semiconductors by 2030. But “while semiconductors are critical, focusing solely on them neglects other key areas of the electronics ecosystem, like PCB production, EMS, and advanced packaging.” IPC’s recent white paper on the EU’s electronics ecosystem and its Industry Call to Action point the way to a more competitive and resilient electronics industry, the authors write. IPC Contact: Alison James.

SUSTAINABILITY

European Commission Publishes FAQ Document on New EcoDesign Regulation: The European Commission (EC) recently released a comprehensive Frequently Asked Questions (FAQ) document related to the new Ecodesign for Sustainable Products Regulation (ESPR), which entered into force in mid-July. The ESPR aims to ensure that products placed on the EU market are designed with environmental considerations at their core. The FAQ document addresses many topics, from the scope of the regulation to specific product categories; the Digital Product Passport (DPP); the Ecodesign Forum; and the timeline for implementation. It provides insights into the ESPR's impact on different stakeholders, including manufacturers, importers, and consumers. For further information, download the FAQ document and/or contact IPC’s Diana Radovan.

TRADE AND SUPPLY CHAIN

U.S. Exports Watchdog Urges Due Diligence by Electronics Manufacturers: The U.S. Government is stepping up its focus on export controls, and electronics manufacturers must be vigilant as they are on the front lines of keeping U.S. technology in the right hands, according to a senior official who spoke to the IPC North American Executive Forum on Sept. 24. Matthew S. Axelrod, Assistant Secretary for Export Enforcement at the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), urged IPC members to vet their customers thoroughly and adopt other best practices to help prevent the diversion of electronics components to prohibited end-users. Earlier in the day, the BIS made news with two announcements: new guidance on preventing the evasion of sanctions on Russia; and notice of a proposed rulemaking which would prohibit the import of certain software and hardware for connected vehicles. More details and resources are in this IPC Blog by Rich Cappetto.

UPCOMING EVENTS

U.S. CHIPS Office Advanced Packaging Proposers’ Day: Rockville, Maryland and Online (Oct. 22): The U.S. CHIPS Research and Development Office is hosting a one-day meeting for potential applicants to the National Advanced Packaging Manufacturing Program (NAPMP) Advanced Packaging Research and Development funding opportunity, which was published in July. Attendees will also be able to network and develop partnerships in the community. Learn more here.

The New Eco-design Regulation and Digital Product Passports: What the Electronics Industry Needs to Know (Webinar, Oct. 30 – In this webinar, we will dive into the Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passports (DPPs), providing a clear explanation of what they are and how they work. Register for free webinar here.

IPC APEX EXPO 2025 – Anaheim, California, USA (March 15-20):  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!

ATTENTION: If you care about the state of the U.S. printed circuit board (PCB) industry, can you spare five minutes to ask your U.S. Representative to support greater investments in cutting-edge, trusted PCB manufacturing? Congress is currently considering whether to adopt IPC-backed provisions that are in the Senate FY25 defense spending bill, S. 4921. The Senate’s bill includes a $45 million line item for PCB manufacturing investments, plus language encouraging the Secretary of Defense to prioritize investments in advanced PCB manufacturing going forward.

“When the high-performance computing market is added to the electronics portion of defense, aerospace, and space market, the overall North American market size is on the order of $70 billion to $90 billion,” Matt Kelly, IPC chief technology officer and vice president of technology solutions, comments on data within a new IPC white paper he coauthored, “AI-based Data Centers for the United States: Technologies, Supply Chains, and Resiliency Gaps,” that explores the actions needed to improve the supply chain resiliency of U.S.-based artificial intelligence (AI) data centers and the electronics used in them. News release.

KEEP IN TOUCH & JOIN OUR EFFORTS  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.    Follow, like and share LinkedIn posts by IPC and/or any of us individually. Take IPC’s five-minute public opinion survey and contact your elected officials via the IPC Action Alert Center.  Peruse our Advocacy pages on IPC.org. Subscribe to this IPC Global Advocacy Report: If you are a member of IPC, manage your e-mail preferences and opt in to receive all “Advocacy” updates. If you are not an IPC member — or if you are not sure — please send a note to friends@ipc.org, and our staff will add you to the list. See prior editions of Global Advocacy Report.  Check out the latest edition of IPC Community, which spotlights IPC’s members and global activities. Contact one of us if you have any questions or insights to share.