In Washington, it was a quiet week until Wednesday, when a deal to extend current U.S. federal spending levels fell through. Consult your favorite news channel to learn the latest plot twists, but we think it is unlikely there will be a major U.S. government “shutdown,” at least not a long one at this time. At issue for our industry are funding levels for defense-related PCBs and various R&D and other programs that affect electronics. Helpful policy decisions are likely now postponed for months.  
In Brussels, we’ve been watching the December meeting of the European Council, where heads of state are discussing Ukraine and the Middle East, economic resilience, and other issues. We continue to press for a European Electronics Manufacturing Strategy with a “silicon-to-systems” approach. 
 
To those who celebrate, Merry Christmas, Happy Hanukkah, Happy Kwanzaa, and Happy New Year from IPC! IPC Global Advocacy Report will be on a break until Friday, Jan. 10, but please reach out anytime with your government policy intelligence, input, and questions.

Chris Mitchell 
Vice President, Global Government Relations 

The Headlines at a Glance:

TOP NEWS OF THE WEEK

• IPC Blogs Recap U.S. and EU Advocacy Accomplishments of 2025
• IPC Leader Offers Predictions for 2025

QUOTE OF THE WEEK

• U.S. Tax Bill Without PCB Provision Would Exacerbate Security Risks

UNITED STATES

• IPC and PCBAA Renew Push for Domestic PCB Tax Break
• IPC Persists on U.S. Defense PCB Funding

ENVIRONMENT AND SUSTAINABILITY

• White House Welcomes IPC to Meeting on Green Chemistry
• IPC Publishes Industry “Roadmap” for European Materiality Reports
• Contribute Your Ideas on EU’s Digital Product Passport for PCBs

INDUSTRY INTELLIGENCE

• Global Economy Showing Resilience Amid Major Uncertainties

OTHER HEADLINES IN THE NEWS

• U.S. House Select Committee on the CCP | Rep Calls for Ban on Chinese Video Displays
• Forbes | Here’s Why US Manufacturers Can’t Quit China
• Los Angeles Times | A comeback for California manufacturing? Trump 2.0 raises hopes — and some worries

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

Recapping IPC’s Top Advocacy Accomplishments of 2024: In a pair of blog articles, IPC’s Rich Cappetto and Alison James recap the highlights of IPC’s advocacy efforts in 2024 in Washington and Brussels, respectively. For example, in the U.S., the National Advanced Packaging Manufacturing Program (NAPMP) cited IPC’s 2021 report on advanced packaging in its strategy to build a domestic advanced packaging ecosystem; two Senate committees adopted IPC-backed language to promote investments in advanced printed circuit boards (PCBs); and IPC CEO John W. Mitchell was invited to a White House meeting on the high-tech workforce. In Europe, IPC published a landmark report on Europe’s PCB and electronics assembly needs; launched an industry-wide Call to Action to policymakers, co-signed by 59 companies, 17 associations, and the European Space Agency; held numerous meetings with top policymakers; and published additional helpful materials online. “Looking ahead … we must ensure our industry’s voice remains loud and clear,” writes James.  IPC Contacts: Rich Cappetto and Alison James.

IPC Leader Offers Predictions for 2025: “With the New Year right around the corner, it’s time to pull out the crystal ball and think about what may come to pass in the coming months,” writes IPC President and CEO John W. Mitchell on the IPC Blog. From his perspective in leading IPC, Mitchell provides insights on the future of electronics manufacturing and how it will deal with its AI, workforce, and sustainability challenges, among others. “2025 will be the year that opinion leaders start to understand that things like the internet, AI, and apps don’t happen without great electronics!” he writes. “Yes, the most advanced chips are amazing, but they are just inert pieces of very expensive silicon without the most advanced interconnect technologies, which are brought to you by IPC members.” What are your predictions for 2025?  Tell us in the comments under the IPC post on LinkedIn. IPC Contact: John Mitchell.

“A tax bill that does not address this national risk would be a strategic oversight with potentially disastrous consequences.” – IPC’s John W. Mitchell and PCBAA’s Shane Whiteside, in a letter to the leaders of the U.S. House Ways and Means Committee, urging them to include a tax credit for purchases of U.S.-made printed circuit boards (PCBs) and IC substrates in any upcoming tax reform bill.

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 W. Mitchell and PCBAA’s Shane Whiteside flagged the United States’ dependence on foreign sources of PCBs and urged them to include 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. IPC and PCBAA are planning a major effort in 2025 to win pro-electronics provisions in any tax bill. IPC Contact: Rich Cappetto.

IPC Persists on U.S. Defense PCB Funding: The U.S. Congress is now planning to delay key decisions on FY25 defense spending until months into the new year, leaving defense electronics programs at the FY24 level for now, while the longer-term outlook is unclear. As this is written, congressional leaders are trying to broker another short-term extension of current spending authority into Q1, when the Republicans will control both Congress and the White House. Meanwhile, IPC is persisting in lobbying 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? Yes, you! 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 .

White House Welcomes IPC to Meeting on Green Chemistry: The White House Office of Science and Technology Policy (OSTP) this week hosted a meeting for industry representatives to unveil the Federal Sustainable Chemistry Strategic Plan. IPC’s Dr. Kelly Scanlon, lead sustainability strategist, and Richard Cappetto, director of North America government relations, attended. The plan, produced by an interagency team under the Sustainable Chemistry R&D Act of 2021, calls for mapping sustainable chemistry activities across the federal government and developing strategies to promote R&D, commercialization, adoption, and scaling of greener chemistry. IPC supports the project’s aims because sustainable electronics start with sustainable chemistry. Last summer, IPC joined in a letter sent by Change Chemistry, a coalition of over 100 members, urging OSTP to address the industry’s “pain points” in making that transition. Check out this informative article in Issues and Science and Technology; like and share our LinkedIn post; and let us know your thoughts. IPC Contact: Kelly Scanlon.

IPC Publishes Industry “Roadmap” for European Materiality 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.

Contribute Your Ideas on EU’s Digital Product Passports for PCBs: 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. The workshop initiative, launched by CEN and CENELEC, 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 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 to Sarah Köhler, the Workshop Secretary. IPC members can also contact Diana Radovan to ask questions and join in our consolidated industry comments. Learn more on the IPC Blog. 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, facing significant headwinds, responded 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 U.S. and global inflation; and the impacts of recent national elections in more than 100 countries. In the United States, the incoming Trump administration has signaled it plans to raise tariffs on imports — a policy that could significantly affect 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.

Thomas Michels, CEO, ILFA GmbH advocates for strong support from governments and customers to drive capacity growth, technological advancement, and education in the PCB industry. His vision for the future gives emphasis to the collaborative efforts needed to develop the industry.

Ready to lead the future of EMS? The EMS Leadership Summit on March 17 at IPC APEX EXPO 2025 is your chance to gain insights, forge connections, and shape the EMS industry – followed by a wonderful dinner to keep the conversations flowing.