11/22/24

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• CHIPS for America Announces $300M for Advanced Substrates R&D

QUOTE OF THE WEEK 

• Once Again, USG Support for “Every Part” of the Supply Chain Has Gaps  

UNITED STATES

• The Outlook is Still Hazy on U.S. Defense PCB Funding
• Defense Dept. Answers Questions About Manufacturing Financing Program

EUROPEAN UNION

• New EC Leaders Are Close; New IPC Resources Are Here
• IPC Hosts European Policy Discussion at Major Industry Show in Munich

ECONOMIC TRENDS

• What Can Trump Do on Tariffs? What Should Companies Do?
• U.S. and Global Economy Showing Resilience for Now

EDUCATION AND WORKFORCE

• IPC Celebrates Apprenticeships Progress, Releases “Playbook” for More

ENVIRONMENT AND SUSTAINABILITY

• First Electronics Sustainability Summit Creates New Possibilities
• Have Your Say on the EU’s Digital Product Passport 

OTHER HEADLINES IN THE NEWS

• Insider | I'm the CEO of an American-made electronics manufacturer. Here's how I'm preparing for new tariffs
• The News & Observer | Durham lands new semiconductor institute as White House offers $285 million CHIPS award
• India to offer $4-$5 bn incentives to boost electronics, cut China reliance | News - Business Standard

UPCOMING EVENTS

• IPC APEX EXPO 2025: Anaheim, California, March 15-20

HELP US SPREAD THE WORD ON SOCIAL MEDIA

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CHIPS for America Announces $300M for Advanced Substrates R&D: The U.S. Department of Commerce (DOC) this week announced it intends to invest up to $300 million in advanced packaging research projects, specifically in advanced substrates R&D. The expected recipients are Absolics Inc. in Georgia, Applied Materials Inc. in California, and Arizona State University in Arizona. “The advanced packaging enabled by advanced substrates translates to high performance computing for AI, next-generation wireless communication, and more efficient power electronics,” the department said. “Such substrates are not currently produced in the United States,” it said, but are “foundational” for future needs. 

IPC commended the much-needed investment in advanced substrates, which IPC has long identified as a critical U.S. need. But IPC also highlighted the continuing lack of an overall “silicon-to-systems” strategy to ensure U.S. resilience and security. “Advanced packaged chiplets are vital, but so are the advanced printed circuit boards that bring them to life,” said IPC’s Chris Mitchell on LinkedIn. “The U.S. Government can protect its investments in chips and advanced packaging by also investing in the domestic PCB and assembly industries, at a small fraction of the cost of the CHIPS program.”

IPC will continue to monitor the CHIPS for America Program through the changes ahead and will advocate for a silicon-to-systems approach. Our efforts will include getting familiar with – and working with – the new U.S. administration and the new lineup in Congress. We invite you to stay informed and involved. IPC Contact: Rich Cappetto.

“The key to the United States’ long-term competitiveness hinges on our ability to out-innovate and out-build the rest of the world. That’s why the R&D side of the CHIPS for America Program is so fundamental to our success, and these proposed investments in advanced packaging underscore the work we’re doing to prioritize every step of the semiconductor supply chain pipeline.” – U.S. Secretary of Commerce Gina Raimondo, who has repeatedly expressed support for a broader approach to the chips supply chain, including advanced packaging – an IPC priority – although the CHIPS for America program has not prioritized other vital elements of the supply chain like advanced PCBs or electronics assembly

The Outlook is Still Hazy on U.S. Defense PCB Funding: The U.S. Congress appears likely to delay key decisions on the FY25 defense spending bill until the new year, leaving defense electronics programs at the FY24 level for now, while the longer-term outlook is unclear. The government is currently operating on a short-term spending resolution through December 20, and House Speaker Mike Johnson (R-LA) this week suggested another short-term extension until February, when his party will control both chambers of Congress and the White House. In any scenario, IPC is urging the House to accept Senate-passed language that would allocate $45 million for investment in domestic printed circuit board (PCB) manufacturing.

To date, more than 60 industry leaders have contacted their elected officials and key decision makers on this issue. Have you? If not:

• 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.  

Read this blog by IPC’s Rich Cappetto to learn what has gone into this effort already, and how you can help bring it over the finish line. IPC Contact: Rich Cappetto.

Defense Dept. Answers Questions About Manufacturing Financing Program: On Wednesday, more than 40 North American executives participated in an IPC-hosted virtual forum with the U.S. Department of Defense’s Office of Strategic Capital (OSC) on the availability of loans for expansion of critical technologies manufacturing. The IPC members were able to discuss their capital needs and ask OSC questions about their new Manufacturing Equipment Financing Program. The application window for the $984 million loan program opens in January 2025. Interested companies are encouraged to review the eligibility information on www.osc.mil and request a pre-application consultation by emailing OSC.Loan.Application@osc.mil. To speak with IPC about this program or get on the list for future IPC Government Relations events, contact Rich Cappetto.

New EC Leaders Are Close; New IPC Resources Are Here: Political groups in the European Parliament (EP) have now confirmed all 26 Commissioners-designate, the heads of major agencies, including two candidates who will play a pivotal role in the future of the electronics manufacturing ecosystem in Europe. Stéphane Sejourné is on track to become the European Commission EVP for Industrial Strategy, and Henna Virkunnen will become EVP for Technological Sovereignty. An EP plenary vote on the full College of Commissioners will take place on 27 November in Strasbourg, which should allow the College to take office on 1 December.

As we await the final steps in the confirmation process, IPC is continuing to highlight the need for a comprehensive electronics manufacturing strategy as a crucial step toward securing Europe’s future. Check out these new and existing IPC Europe resources:

• New interview with IPC’s Alison James, Senior Director Europe Government Relations, at the recent electronica2024 show;
• New synopsis of IPC’s recent white paper, Securing the European Union’s Electronics Ecosystem, which presents an overview of Europe’s EM industry and policy recommendations
• We continue to welcome European companies and organizations in our Industry Call to Action; for more information, visit the European Advocacy page on IPC.org.

IPC Contact: Alison James.

IPC Hosts European Policy Discussion at Major Industry Show in Munich: Electronics industry leaders last 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 audience heard from and engaged with Cesare Dunker of the European Commission; Matthias Pirs of AT&S; Thomas Michels of ILFA and TCLAD Europe; Carsten Salewski of Viscom; Franz Xaver Feiner of Zollner Elektronik; and Sanjay Huprikar and Alison James of IPC. Ms. James invited more European companies and groups to join the Industry Call to Action, which urges the incoming European Commission, European Parliament, and Member State Governments to establish an Electronics Manufacturing Strategy, backed by both new legislation and existing policies. Meanwhile, the show was also a venue for unveiling two new IPC videos: one on the silicon-to-systems imperative and another on advanced packaging. Please help IPC by sharing these videos to your networks. Learn more about IPC’s European advocacy effort and what you can gain from getting involved. Access more stories and photos on social media by searching for #electronica2024. IPC Contact: Alison James.

What Can Trump Do on Tariffs? What Can Companies Do? “With the election of Donald Trump, tariffs should be at the forefront of every company's planning for 2025 and beyond,” writes Casie Daugherty of Prime Policy Group in an article posted on LinkedIn. If your company imports or exports anything, an anticipated round of U.S. tariff increases “will impact you!” The article delves into four U.S. statutes that the U.S. president can use to alter tariffs and concludes there are “few checks” on his authority to do so. “Engaging in whatever feedback opportunities present themselves – particularly in formal comments and direct engagement with government officials – will be key to potentially carving out exclusions for sectors and specific products,” Daugherty concludes. IPC Contact: Rich Cappetto.

U.S. and Global Economy Showing Resilience for Now: Earlier this week, IPC Chief Economist Shawn DuBravac hosted an IPC State of the Economy webinar, offering a look into the global economic forces shaping the electronics manufacturing industry. The U.S. economy is resilient, supported by easing inflation and a strong labor market, but GDP growth is expected to moderate from 2.7% in 2024 to 2.1% in 2025. Growth is slower in Europe and China. Early market expectations of the incoming Trump administration suggest a continuation of higher interest rates and potential adjustments to tariff structures. DuBravac also discussed ongoing labor shortages, investments in electronics manufacturing driven by the CHIPS Act, and global supply chain shifts, including increased trade with Mexico and Southeast Asia. Missed the session? Stay tuned to all IPC channels for invitations to future IPC webinars or contact us. IPC Contact: Shawn DuBravac.

IPC Celebrates Apprenticeships Progress, Releases “Playbook” for More: November 17-23 is National Apprenticeship Week in the United States, and IPC marked the occasion with a progress report, a new Apprenticeships Playbook for IPC Members, and new data on how apprenticeships create opportunities for women, veterans, and others who might face barriers to entering our industry. Since IPC’s Registered Apprenticeship Program was approved by the U.S. Department of Labor last November, IPC has supported nearly 90 new apprenticeships across nine companies and seven states, with over $125,000 in grant funding secured to offset employer costs. More than 75% of apprentices enrolled in IPC’s programs are from under-represented populations, opening career pathways for a more diverse workforce. Meanwhile, IPC’s new Apprenticeship Playbook is designed to make adopting apprenticeship programs easier than ever, with step-by-step guidance on program development, how to align with industry-recognized certifications, and how to secure funding and partnerships. Browse this week’s series of LinkedIn posts by IPC’s Cory Blaylock, Director of Workforce Partnerships; then check out the Apprenticeships Playbook plus other news, background, and video testimonials via this special page on IPC.org. IPC Contact: Cory Blaylock.

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.

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.

Celebrating the Launch of IPC’s Apprenticeship Playbook during National Apprenticeship Week! This comprehensive guide is designed to make adopting apprenticeship programs easier than ever. Whether you’re just starting or looking to enhance an existing program, the Playbook walks employers through every step—from building a strong talent pipeline to fostering meaningful career pathways in electronics manufacturing and beyond. Apprenticeships are key to addressing workforce challenges, and IPC is proud to support employers with tools that drive success for businesses and workers alike.

As we celebrate Day 3 of National Apprenticeship Week, let’s take a moment to highlight how apprenticeships help expand opportunities for individuals who might otherwise face barriers to entering high-demand industries. Did you know that 39% of registered apprentices in the U.S. Department of Labor’s programs come from underrepresented communities. While this is a step in the right direction, there is still so much potential to expand access and create even more equitable pathways into high-demand careers.

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.