11/8/24

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

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

QUOTE OF THE WEEK 

• IPC’s John W. Mitchell on the U.S. Election Results   

IPC ADVOCACY AND YOU

• It’s Still Timely to Make Your Voice Heard on Defense PCB Funding! 

UNITED STATES

• IRS Rule on Advanced Manufacturing Tax Credit Offers Some Good News
• U.S. Gov’t Office to Offer Millions in Loans for Critical Technologies

EUROPEAN UNION

• New IPC Video Urges Europe to Adopt “Silicon-to-Systems” Approach
• Electronics Industry Call to Action Continues to Build Momentum

ASIA-PACIFIC

• Investment is Exploding in Thailand’s PCB Sector  

ENVIRONMENT AND SUSTAINABILITY

• 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  
• Vietnam Eyeing Amendment of Law on Chemicals

WORKFORCE

• New IPC Video Spotlights Workforce Challenges in Electronics Industry

OTHER HEADLINES IN THE NEWS

• CNBC | What to expect from Trump’s first 100 days when it comes to China
• Forbes | CMMC 2.0 Takes Compliance from Checkbox to Critical Cyber Defense
• EMS Now | Sustainability – A View from the C-Suite

UPCOMING EVENTS

• electronica: Munich, Nov. 12-15
• Sustainability Demands of OEMs for the Electronics Supply Chain: Online, Nov. 14
• 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

U.S. Gov’t Clamps Down on Military Tech Investments in China: The U.S. Department of the Treasury this week published a final rule which prohibits or requires notification of investments by U.S. persons in certain national security technologies in “countries of concern,” which are currently defined as China and the special administrative regions of Hong Kong and Macau. Prohibited and notifiable transactions in chips and electronics include equipment; design automation software; fabrication and advanced packaging tools; and the design, fabrication, or packaging of advanced integrated circuits that support military innovation. While the White House and supporting agencies said they intend to keep the prohibitions narrowly focused, some are concerned they could impact wider sectors unrelated to national security. Additional information is in this Treasury document. IPC will continue to study the rule, and we are interested in hearing from you if it might impact your business. IPC Contact: Rich Cappetto.

“We worked with the 2016-2020 Trump administration to raise awareness of the electronics industry’s importance to national and economic security, and we will continue to do so over the coming years. Electronics are at the heart of the modern economy, and the U.S. Government needs to overcome decades of neglect and do more to ensure the industry’s long-term success.” – IPC President and CEO John W. Mitchell on the U.S. election results

It’s Still Timely to Make Your Voice Heard on Defense PCB Funding: Over the last month, nearly 25 industry leaders have contacted their U.S. representatives about needed investments in domestic printed circuit board (PCB) manufacturing in the FY25 defense spending bill. The latest contacts come on top of IPC-organized letters and meetings over the spring and summer, involving more than 60 industry leaders and 20 members of Congress. The final congressional decision may occur within a few weeks. If you haven’t done so yet, the time is now to speak up and make your voice heard!  

• Please take a minute now 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.

Next week, IPC is sponsoring an ad in the Politico Pro Budget & Appropriations Brief, which will put our message in front of hundreds of insiders who focus on budget and spending issues. We need lawmakers from every state to understand that failure to invest in PCB manufacturing will lead to unacceptable risks for U.S. national security and critical infrastructure. 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.

IRS Rule on Advanced Manufacturing Tax Credit Offers Some Good News: The U.S. IRS and Department of the Treasury on Oct. 24 published a final regulation governing the U.S. CHIPS and Science Act’s Advanced Manufacturing Investment Tax Credit (“Section 48D”), and there’s both good news and disappointing news for our industry. The regulation clarifies who can claim the credit, which amounts to 25% of investment costs for building or expanding semiconductor manufacturing facilities in the United States. On the positive side, the regulation does allow the credit for semiconductor packaging, including advanced packaging, assembly, and testing, which are defined in the law. This is a wise inclusion given the importance of advanced packaging, which has been championed by IPC. However, the rule does not allow the credit for IC substrates, printed circuit boards (PCBs), or PCB assemblies. This is a missed opportunity to strengthen the entire domestic supply chain. The regulation goes into effect on December 23. IPC is continuing to analyze the regulation, and we would welcome your insights. IPC Contact: Rich Cappetto.

U.S. Government Office to Offer Millions in Loans for Critical Technologies: The U.S. Department of Defense’s Office of Strategic Capital (OSC) is working with IPC to publicize that OSC will make more than $980 million available in direct loans for capital investment and equipment purchases related to critical technologies in the defense supply chain. Companies can apply for loans ranging from $10 million to $150 million. The application process opens in January 2025, but companies can begin preparing now by requesting pre-application consultations with the OSC. IPC will facilitate more OSC information-sharing and conversations with industry leaders in the coming weeks. Learn more about the loan program here and contact Rich Cappetto with any questions.

New IPC Video Urges Europe to Adopt “Silicon-to-Systems” Approach: IPC last week released another in its series of short “explainer videos,” this one focusing on the need to take a “silicon to systems” approach to bolstering Europe’s electronics industry. With animation and graphics, the video explains that electronic systems are at the heart of many critical products and services, and focusing on chips alone is insufficient to ensure Europe’s future. IPC released a U.S. version of the video in May, and we continue to promote both videos through all our channels. You can help IPC spread the word by sharing the U.S. or European video with your professional networks, partners and elected officials. IPC Contact: Michelle Mermelstein.

Electronics Industry Call to Action Continues to Build Momentum: IPC and its coalition partners are continuing to hold meetings with European Government representatives on the Industry’s Call to Action on electronics manufacturing. Most recently, we were in Tallinn, Estonia for a meeting organized by the Estonian Electronics Industries Association, where we had the opportunity to present the Call to Action to Kaspar Peek, head of Industry in the Estonian Ministry of Economics. We also organized a coalition partner meeting with the Chief Economics Advisor to the EU Council President to discuss our economic study on Europe’s electronics ecosystem and our call for a continent-wide electronics manufacturing strategy. To be in the loop, peruse IPC’s European Government Relations web page and follow us on LinkedIn. Our advocacy meetings will continue, and we invite you to join our efforts. IPC Contact: Alison James.

Investment is Exploding in Thailand’s PCB Sector: “The global trend of relocating production bases and restructuring supply chains has led major PCB manufacturers to invest in Thailand, establishing the country as ASEAN's leading PCB production hub and placing it among the top five globally,” a Thai government agency reports. As reported in The Nation newspaper of Bangkok, the government’s Board of Investment recently said investment in Thailand’s PCB sector jumped more than ten-fold from 2021-22 to 2023-24 and is expected to reach 900 billion baht (US$26 billion) by year’s end, contributing toward a five-year strategic target (2023-2027) of 3 trillion baht (US$87 billion). “Having a PCB manufacturing base in Thailand should increase opportunities to develop a wide range of electronic products and expand into other industries,” the newspaper reports. “The BOI's comprehensive support for the PCB industry plays a significant role in fostering future growth opportunities for PCB manufacturing in Thailand.”  

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.

Vietnam Eyeing Amendment of Law on Chemicals: The Vietnam Ministry of Industry and Trade (MOIT) has finalized a draft amendment to the Law on Chemicals and submitted it to the National Assembly for consideration during its current session, which runs through Nov. 30. The Law on Chemicals, which has been in effect since 2008, regulates the use and handling of chemicals in Vietnam. MOIT's amendment aims to preserve the law's key elements while improving consistency with international agreements and expanding its scope to cover chemicals in products. The amendment also clarifies certain definitions, providing greater clarity compared with the original law. The ministry believes these updates will help attract foreign investment and open global market opportunities for Vietnamese enterprises. For more details, visit this government website or contact IPC’s Diana Radovan.   

New IPC Video Spotlights Workforce Challenges in Electronics Industry: This 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.

electronica: Munich, Nov. 12-15: IPC is excited to be a leading participant in this show, which is one of the industry’s largest international gatherings. Visit us at Booth A1.465 and discover the cutting-edge trends that are transforming the electronics industry. This year, IPC also will be hosting an Electronics Forum on the key themes driving the future of electronics, including innovative design, sustainability, silicon-to-systems integration, and the factory of the future. Learn more and register here. 

Sustainability Demands of OEMs for the Electronics Supply Chain: Online, Nov. 14: IPC’s Road to Reliability series welcomes a panel of experts for a free webinar on the issues of regulatory reporting, recycling, PFAS, carbon neutrality, and the changeover of electronics assembly reporting.  The series is sponsored by Indium Corporation. Learn more and register here.

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, Ph.D., CFA. 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.

“The European CHIPS Act is only the first step.” A new IPC video stresses the need for Europe to pursue a silicon to systems approach to electronics manufacturing, explaining why focusing on semiconductor chips isn’t enough to ensure Europe’s resilience and security. View video.

What are the best ways to foster a skilled, adaptable, and motivated workforce to address the critical labor shortage in the electronics industry? Learn about IPC’s strategic approach in a new video, available here.

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.