11/15/24

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• IPC Hosts European Policy Discussion at Major Industry Show in Munich

QUOTE OF THE WEEK 

• IPC’s Kelly Scanlon on Building New Relationships to Tackle “Circularity”   

IPC ADVOCACY AND YOU

• Coming Down to the Wire on U.S. Defense PCB Funding

UNITED STATES

• U.S. Gov’t Clamps Down on Military Tech Investments in China

EUROPEAN UNION

• European Parliament Examines Candidates for Tech Policy Roles  

ENVIRONMENT AND SUSTAINABILITY

• First Electronics Sustainability Summit Creates New Possibilities
• Have Your Say on the EU’s Digital Product Passport
• US EPA Confirms Partial Ban on Use of PIP (3:1)
• ECHA Adds Popular Flame Retardant to “Very High Concern” List
• EC Moving Forward on Setting Up Eco-Design Forum  

WORKFORCE

• New IPC Video Spotlights Workforce Challenges in Electronics Industry

OTHER HEADLINES IN THE NEWS

• CNBC: Japan is ramping up efforts to revive its once dominant chip industry
• Electronics for You: India’s Core Focus On 5G, IoT, AI Fosters Need For Advanced Electronics, Components, And Semiconductors
• Trellis: Trump’s victory presents sustainability leaders with a dilemma — and an opportunity

UPCOMING EVENTS

• Economic Outlook 2025: Online, Nov. 19
• IPC APEX EXPO 2025: Anaheim, California, March 15-20

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US

IPC Hosts European Policy Discussion at Major Industry Show in Munich: Electronics industry leaders this week discussed the policies and actions needed to create a more robust, resilient manufacturing ecosystem “from silicon to systems” during a standing-room-only policy discussion at electronica2024 – one of the industry’s largest annual gatherings. The policy panel was moderated by Sanjay Huprikar, IPC President of Europe  and the audience heard and engaged with expert insights from Cesare Dunker, Digital Policy Officer at the European Commission; Matthias Pirs, Director of Corporate Affairs at AT&S; Thomas Michels, Senior Managing Partner at ILFA and President of TCLAD Europe; Carsten Salewski, Executive Board Member at Viscom; and Franz Xaver Feiner, VP Marketing and Sales at Zollner Elektronik.  

Alison James, IPC Senior Director of Europe Government Relations, invited more companies and groups to join the Industry Call to Action, in which numerous companies and industry associations are calling on the incoming European Commission, the European Parliament, and Member State Governments to:

• Establish an Electronics Manufacturing Strategy as part of a New Competitiveness Deal; 
• Introduce a Strategic Electronics Manufacturing Act (SEMA); 
• Level the playing field through the regulatory and tax environment; and 
• Collaborate for a future-proof skilled workforce

In separate presentations, Thomas Michels and Xaver Feiner also presented, on different days at electronica, the Call to Action from the perspective of their industry segments.

Meanwhile, the electronica show was also a venue for unveiling and promoting two new IPC videos on key policy issues facing Europe: one explaining the silicon-to-systems imperative and another focusing specifically on advanced packaging. Please help IPC by sharing these videos to your networks. 

“By connecting designers, manufacturers, and the ITAD and ‘Re-X’ community, we can build momentum for a fully circular approach that spans materials, components, products, and the entire electronics ecosystem.” – IPC Lead Sustainability Strategist Kelly Scanlon, on the occasion of the first-ever Electronics Sustainability Summit (see related story below)

Coming Down to the Wire on Defense PCB Funding: Members of the U.S. Congress were back in Washington this week, facing decisions on how to proceed on the FY25 defense spending bill, in which the electronics industry has much at stake. The government is currently operating on a short-term spending resolution through December 20, and Congress must decide by then whether to pass a full-year spending bill or leave that task to the new Congress being seated in January. In any scenario, IPC is urging the House to accept Senate language that would allocate $45 million for investment in domestic printed circuit board (PCB) manufacturing. In a new move this week, IPC sponsored an ad in Politico Pro Budget & Appropriations Brief, putting our message in front of hundreds of insiders who focus on budget and spending issues.

To date, more than 60 industry leaders and 20 members of Congress have contacted the key decision makers on this issue. Have you? If you haven’t done so yet:

• Please take a minute to visit our Action Alert Center, where you can email your Member of Congress with just a few clicks and less than 5 minutes of your time.
• Like and re-share this IPC LinkedIn Post and urge people in your network to take action.
• Invite your Member of Congress or Senator to visit your facility to learn more about the industry and our challenges.
• Work with IPC to place a local opinion article or be a “poster child” for media outreach.

U.S. Gov’t Clamps Down on Military Tech Investments in China: The White House last week briefed stakeholders on the U.S. Department of the Treasury’s recently published final rule on military-related technology investments in “countries of concern,” which currently are defined as China and the special administrative regions of Hong Kong and Macau. The rule, which will take effect in January, prohibits certain transactions and requires notifying the U.S. Government of others in three categories, including semiconductors and microelectronics. On the call, the White House and agency officials emphasized their intent is to prohibit investments only in technologies that could be used for next-generation military capabilities and advanced computing. But some observers are concerned that the regulation could affect more common technologies. Additional information is in this Treasury document. IPC will continue to study the rule, and we are ready to engage with regulators on behalf of the electronics industry.  If you have any concerns or questions about how this could impact your business, we are interested in hearing from you. IPC Contact: Rich Cappetto.

European Parliament Examines Candidates for Tech Policy Roles: The European Parliament this week held confirmation hearings for several Commissioners-designate – akin to cabinet ministers – and IPC was watching for clues as to future policy. Hearings were held for Stéphane Sejourné, the candidate for European Commission EVP for Industrial Strategy; Henna Virkunnen, the candidate for EVP of Technological Sovereignty; and four others. The individuals in these positions will play a pivotal role in shaping the future of a competitive electronics manufacturing ecosystem in Europe. As we await the final steps in the confirmation process, IPC will continue to highlight the need for a comprehensive electronics manufacturing strategy as a crucial step toward securing Europe’s leadership and resiliency in technology and innovation.IPC Contact: Alison James.

First Electronics Sustainability Summit Creates New Possibilities: The electronics industry has tremendous potential to advance circularity not only in whole products but also in the “guts” – the assemblies and components -- of electronic systems, according to participants in the inaugural Electronics Sustainability Summit (#eSummit2024), which took place in Austin, Texas on Oct 22-24. eSummit is a new event but it arose from previous e-recycling events and was designed to bring together e-recyclers, reusers, and refurbishers with the rest of the supply chain, such as IPC members. IPC Lead Sustainability Strategist Kelly Scanlon said, “By connecting designers, manufacturers, and the ITAD and ‘Re-X’ community, we can build momentum for a fully circular approach that spans materials, components, products, and the entire electronics ecosystem.” IPC thanks our colleagues Corey Dehmey, Scot Case, Mark Schaffer, Cassie Gruber, Daniel Reid, Holly Evans and others for finding creative ways to collaborate. IPC Contact: Kelly Scanlon.

Have Your Say on the EU’s Digital Product Passport:  The Digital Product Passport (DPP) concept could soon become a major step towards greater sustainability and transparency in the EU market, and now you can have a say in how it works. The DPP, introduced under the European Commission’s Ecodesign for Sustainable Products Regulation, will serve as a digital identity card for products, providing crucial details on sustainability, recyclability, and environmental impact. By enabling electronic access to this data, the DPP will help consumers, manufacturers, and authorities make better-informed decisions, promoting a more circular economy and eco-friendly practices across the EU. Stakeholders are invited to share their views on potential requirements for DPP service providers and the possibility of a certification scheme for compliance. Comments are due by December 10; learn more and get started on this EC web page.  IPC Contact: Diana Radovan.

US EPA Confirms Partial Ban on Use of PIP (3:1): The U.S. Environmental Protection Agency (EPA) has issued a pre-publication notice of a revised final rule on phenol, isopropylated phosphate (3:1) – PIP (3:1), a chemical substance that has been commonly used as a flame retardant and plasticizer in electronics. IPC and our partners ITI and CTA are currently evaluating the impact of the final rule on the electronics industry, having collaborated on previous public comments. At first glance, we see several important implications. The exemption for the manufacture of most new products using PIP (3:1), including electronics, ended a few days ago. The rule extended the “distribution in commerce” date, concerning the sell-through of existing “in distribution” items, to October 2026. The rule also extends the date for lubricants to 15 years after publication (November 2040 if the final rule is published this month); extends the date for semiconductor and commercial electronic equipment for 10 years to 2035; and extends the date for replacement parts for consumer electronic equipment for seven years to 2032. IPC will continue to inform you on this topic. If you have questions or insights, contact IPC’s Diana Radovan.

ECHA Adds Popular Flame Retardant to “Very High Concern” List: On Nov. 7, the European Chemicals Agency (ECHA) confirmed it has added a popular flame retardant – Triphenyl Phosphate, also known as TPP or THHP – to the list of candidates for Substances of Very High Concern (SVHC) under the REACH hazardous substances regulation. TPP, which has endocrine-disrupting properties, is used as a flame retardant and plasticizer in many electronic products. Under REACH, companies wishing to use risky substances face various legal obligations when they are included – either on their own, in mixtures, or in articles – on the Candidate List. If the substance is placed on the Authorisation List in the future, companies will not be allowed to use it unless they apply for authorisation and the European Commission authorises its continued use. IPC is studying the impact of this proposal and welcomes your input. IPC Contact: Diana Radovan.

EC Moving Forward on Setting Up Eco-Design Forum: In another step toward implementing the European Commission’s Ecodesign for Sustainable Products Regulation (ESPR), the EC is moving forward on establishing an expert advisory body, the EcoDesign Forum, of up to 250 members. The ESPR is currently an “empty” legal framework, with delegated acts coming later; therefore, it is crucial for electronics industry representatives to be involved in the EcoDesign Forum and the shaping of these acts. In an Oct. 24 decision, the EC said it will invite representatives of member governments, stakeholder organizations such as industry associations, and individual organizations to apply to join the new Eco-Design Forum. The application window should be open soon. IPC is considering applying, and we encourage individual companies and research institutes to start considering it as well. To further support our members on this topic, IPC recently co-hosted a webinar on the ESPR in partnership with Anthesis and ITI. The webinar recording and slides are here and here, respectively. IPC Contact: Diana Radovan.

New IPC Video Spotlights Workforce Challenges in Electronics Industry: Last week, IPC released another in its series of short “explainer videos,” this one tackling the critical labor shortage faced by the electronics manufacturing industry. In two minutes of engaging script and imagery, the video shares details from IPC’s recent workforce strategy, and it calls on government, industry, and community leaders to join us in this effort. IPC is promoting the video to targeted audiences via its social media accounts, newsletters, magazines, and other channels, and we invite you to help us by sharing it with your professional networks and elected officials. IPC Contact: Michelle Mermelstein.

Economic Outlook 2025: Online, Nov. 19: What can we expect from the global economy in 2025? Join us for a free live webinar with IPC Chief Economist Shawn DuBravac, PhD, CFA, Ph.D. Learn more and register today.

IPC APEX EXPO 2025: Anaheim, California, Mar. 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.

Legislators are back in DC working through how to proceed with funding the government after December 20. Those reading the Politico budget brief this week will see a reminder from the electronics industry to Fund FY25 Defense Production Act investments in domestic printed circuit board manufacturing. U.S. national security depends on it.

Advanced packaging has been dubbed “the new king” of innovation in electronics. But a new, 90-second video from IPC says the U.S. and Europe have only nascent capabilities in this crucial technology, leaving them dependent on non-domestic suppliers.

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.