12/13/24

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• IPC Publishes Industry “Roadmap” for European Sustainability Reports

QUOTE OF THE WEEK 

• IPC’s Kelly Scanlon on the Value of “Double Materiality Assessments” in Europe

UNITED STATES

• IPC and PCBAA Renew Push for Domestic PCB Tax Break
• Dueling U.S.-China Trade Actions Complicate Matters for Manufacturers
• IPC Persists on U.S. Defense PCB Funding

EDUCATION AND WORKFORCE

• U.S. Dept. of Labor Backs Down on Burdensome Apprenticeship Regulation

ENVIRONMENT AND SUSTAINABILITY

• Share Your Input on the EU’s PFAS Ban by Dec. 20
• Share Your Input on the EU’s Digital Product Passports for PCBs

INDUSTRY INTELLIGENCE

• Global Economy Showing Resilience Amid Major Uncertainties

OTHER HEADLINES IN THE NEWS

• Harvard Business Review | 8 Questions to Ask About Your Globalization Strategy Right Now
• Tech Target | CHIPS Act Expected to Survive, Change under Trump
• MarketWatch | Opinion: Trump’s tariffs are the opening rounds of trade war II

UPCOMING EVENTS

• WHMA Annual Global Leadership Summit 2025
• IPC APEX EXPO 2025: Anaheim, California, March 15-20

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US

IPC Publishes Industry “Roadmap” for European Sustainability Reports: Aiming to empower electronics manufacturers on a key sustainability issue, IPC’s latest white paper offers a roadmap for electronics companies to navigate the European Union’s Corporate Sustainability Reporting Directive (CSRD) and leverage “double materiality assessments” (DMAs) for sustainable growth and competitive differentiation. Developed in partnership with Anthesis Group, a leading sustainability consultancy, the paper provides actionable guidance to help companies address dual reporting obligations under the CSRD. Under that regulation, companies are required to assess both their environmental and societal impacts (“impact materiality”) and the financial implications of sustainability-related issues (“financial materiality”) and report them to regulators and the public. The 12-page IPC white paper addresses the areas that are critical to success and highlights the potential strategic advantages of doing DMAs. IPC Contact: Kelly Scanlon.

“Double materiality assessments offer organizations significant value beyond just regulatory compliance. By understanding how sustainability issues affect their business and vice versa, electronics companies – empowered by IPC resources – can gain operational efficiencies and advantages in a competitive global marketplace.” –  Kelly Scanlon, IPC lead sustainability strategist and co-author of a new IPC white paper on the “double materiality assessments” that are required by a European Commission regulation (related story above)

IPC and PCBAA Renew Push for Domestic PCB Tax Break: IPC and the Printed Circuit Board Assn. of America (PCBAA) this week joined the growing momentum for a major U.S. tax reform bill by urging the leaders of the U.S. House Ways and Means Committee to support a tax credit for purchases of U.S.-made printed circuit boards (PCBs) and IC substrates. In a letter to Reps. Jason Smith (R-MO) and Richard Neal (D-MA), IPC’s John Mitchell, and PCBAA’s Shane Whiteside flagged the United States’ dependence on foreign sources of PCBs and urged them to consider the tax provisions of H.R. 3249, the PCBs Act, in any upcoming tax reform bill. “A tax bill that does not address this national risk would be a strategic oversight with potentially disastrous consequences,” they write. The two groups are planning a months-long campaign in 2025 to win pro-electronics provisions in any tax bill. IPC Contact: Rich Cappetto.

Dueling U.S.-China Trade Actions Add Complexity for Manufacturers: The U.S. Department of Commerce on Dec. 5 announced a sweeping package of expanded trade restrictions targeting China, including a ban on exports of advanced semiconductor technology and the addition of 140 Chinese entities to the U.S. Government’s Entity List. These measures aim to curtail China’s ability to develop military and AI technologies. The next day, China retaliated by banning exports of critical materials to the United States, including gallium, germanium, and antimony, which are vital to electronics manufacturing. These escalating trade actions are worrisome given the importance of electronics—including advanced packaging and printed circuit boards (PCBs)—in safeguarding U.S. national security. For the PCB industry, the restrictions highlight the need for a secure supply of advanced PCBs, which are essential for advanced semiconductor applications in defense and AI. As policymakers continue to weigh national security versus commercial interests, IPC will continue to monitor the implications of these trade restrictions, including supply chain disruptions, compliance risks for manufacturers, and opportunities for innovation among its members. For more, read the story in the New York Times. IPC Contact: Rich Cappetto.

IPC Persists on U.S. Defense PCB Funding: The U.S. Congress now appears likely to delay key decisions on the FY25 defense spending until the new year, leaving defense electronics programs at the FY24 level for now, while the longer-term outlook is unclear. House Speaker Mike Johnson (R-LA) is planning another short-term extension of current spending authority through Q1, when his party will control both chambers of Congress and the White House. Meanwhile, IPC is continuing to lobby House members to accept Senate-passed language that would allocate $45 million for investment in domestic printed circuit board (PCB) manufacturing. Are you among the more than 60 industry leaders who have contacted their elected officials on this issue? If not:

• 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 professional network to take the same 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.

U.S. Dept. of Labor Backs Down on Burdensome Apprenticeship Regulation: The U.S. Department of Labor quietly withdrew a proposed regulation that could have negatively impacted the electronics industry’s ability to utilize apprenticeships effectively. IPC submitted comments in March raising concerns that the rule would impose numerous new administrative requirements on employers and intermediaries, making the adoption and management of apprenticeship programs more expensive and less effective for workforce development in the electronics industry. Among other concerns, IPC called for streamlining the reciprocity of apprenticeships across states, which would help manufacturers operating in multiple jurisdictions access benefits without additional paperwork. Although the rule was withdrawn, IPC continues to urge Congress and the executive branch to simplify apprenticeship processes across state lines. IPC Contact: Rich Cappetto.

Share Your Input on the EU’s PFAS Ban by Dec. 20: European electronics companies are invited to participate in a short survey prepared by the FPP4EU Secretariat, an industry group, to assess the impacts of the universal PFAS ban on supply chains and investments. The survey aims to gather critical insights, such as whether shortages are anticipated or already occurring and how the restriction may influence investment flows across sectors. If your company operates in multiple sectors, please submit a response for each sector. Your input is vital to shaping the discussion around PFAS regulations and their impact on the electronics industry. Survey findings will be anonymized and aggregated for future advocacy efforts. The survey's deadline is December 20, and it only takes about 5 minutes to complete, so don’t miss your opportunity to share your input. Complete the survey here. IPC Contact: Diana Radovan.

Contribute Your Ideas on the EU’s Digital Product Passports for PCBs: CEN and CENELEC, two of the EU’s key standard-setting bodies for electronics, are hosting a virtual workshop on January 20 to kick off discussions on the development of Digital Product Passports (DPPs) for PCBs. DPPs, introduced under the European Commission’s Ecodesign for Sustainable Products Regulation, are envisioned as digital identity cards for products, providing key data on sustainability, recyclability, and environmental impact. By enabling electronic access to this information, DPPs aim to promote better-informed decisions among consumers, manufacturers, and authorities, fostering a more circular economy across the EU.

This initiative will define essential data requirements for DPPs in the PCB sector and explore how they can support sustainability and reduce Europe’s reliance on non-EU suppliers. Led by Paolo Rosa of Politecnico di Milano, the first virtual workshop will bring together PCB manufacturers, OEMs, recyclers, policy experts, and other stakeholders to shape the future of PCB standards. Submit your registration and comments on the draft project plan by January 10, 2025, to Sarah Köhler, the Workshop Secretary. IPC members can also contact Diana Radovan for assistance with registration or our consolidation of industry comments. Learn more about this initiative on the IPC Blog.

And as we previously shared, stakeholders are also invited to share their perspectives with the European Commission on potential requirements for DPP service providers, as well as the potential certification scheme to ensure compliance. Comments are due by December 10, 2024, and can be submitted via the European Commission’s web page here. IPC Contact: Diana Radovan.

Global Economy Showing Resilience Amid Major Uncertainties: As we near the end of 2024, the global economy has shown remarkable resilience, especially in the United States, writes IPC Chief Economist Shawn Dubravac in the inaugural issue of IPC’s Industry Intelligence Insights newsletter. Back in mid-2023, economists projected just 0.7% growth for the U.S. in 2024, but instead, the U.S. economy is on track to grow by about 2.7%. However, Europe grew just 0.7% in 2024 and is projected to see just under 1% growth in 2025. China faced significant headwinds this year, responding with historic stimulus measures, while other parts of Asia, such as India, benefited from these dynamics. 

While the risk of a recession appears low for now, uncertainties remain, including the ongoing conflicts in Europe and the Middle East; the future course of inflation; and the fallout from recent national elections in more than 100 countries that are home to nearly half the global population. In the United States, the incoming Trump administration has signaled it plans to raise tariffs on imports — a policy that could significantly electronics, which has one of the most globally diverse supply chains of any industry. IPC will continue to watch these trends and keep you informed.

To subscribe to “I3,” manage your IPC e-mail preferences and opt in to receive “Industry Intelligence” 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. IPC Contact: Thiago Guimarães.

WHMA Annual Global Leadership Summit 2025 (Fort Myers, Florida), Jan. 28-30: The wire harness industry is constantly evolving with new technology and practices. The 2025 WHMA Annual Global Leadership Summit offers the tools you need to help your business succeed in this fast-changing landscape. This is a networking event for executives representing wire harness manufacturers, OEMs and suppliers for companies that build wiring harnesses and cable assemblies. Learn more and register here.

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 and register here.

My prediction is that 2025 will be the year that the world at large starts to understand that things like the internet, AI, and apps don’t happen without great electronics!

John W. Mitchell, IPC president and CEO, has this to say about sustainability: “Prediction: In 2025, companies will do more to demonstrate that electronics are greener than ever. Forget megapixels and screen resolution; the big flex will be demonstrating how they’re shrinking carbon footprints, which recyclable materials are used, and where modularization is benefiting product, or battery, lifetime.”

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.    In the U.S., take IPC’s five-minute public opinion survey and contact your elected officials via the IPC Action Alert Center. Peruse our global Advocacy pages on IPC.org or our European pages on IPC.org and LinkedIn. 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.  Please contact one of us via the links above if you have any questions or insights to share!