12/6/24

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• Dueling U.S.-China Trade Actions Complicate Matters for Manufacturers

QUOTE OF THE WEEK 

• Jake Sullivan, White House National Security Advisor, on New U.S. Export Controls

UNITED STATES

• Department of Labor Backs Down on Burdensome Apprenticeship Regulation
• CHIPS for America Announces $300M for Advanced Substrates R&D
• 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

• European Electronics Companies: Share Your Input on PFAS Ban
• EU Standards Bodies Host Workshop Series on Digital Product Passports for PCBs
• First Electronics Sustainability Summit Creates New Possibilities

OTHER HEADLINES IN THE NEWS

• Politico | Biden unveils scaled down chip curbs
• AP News | China bans exports to US of gallium, germanium, antimony in response to chip sanctions
• Yahoo! Finance | Intel’s CEO shake-up puts foundry plans, CHIPS Act cash at risk

UPCOMING EVENTS

• Optimizing Cleaning Products Used in Electronics Manufacturing
• WHMA Annual Global Leadership Summit 2025, January 28-30
• IPC APEX EXPO 2025: Anaheim, California, March 15-20

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US

Dueling U.S.-China Trade Actions Add Complexity for Manufacturers: The U.S. Department of Commerce has announced a sweeping package of expanded trade restrictions targeting China, including bans on exporting advanced semiconductor technology and the addition of 140 Chinese entities to the U.S. Government’s Entity List. These measures, described by the Biden administration as the “strongest controls ever enacted,” 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 underscore the growing importance of electronics—particularly advanced packaging and printed circuit boards (PCBs)—in safeguarding U.S. national security. For the PCB industry, the restrictions highlight the urgent need for secure, domestically produced circuit board solutions essential for advanced semiconductor applications in defense and AI. PCBs, as the backbone of chip integration, play a critical role in protecting sensitive technologies, making them central to the global technology race. As policymakers weigh national security against commercial impacts, IPC will continue monitoring the implications of these increasingly aggressive 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.

“The United States has taken significant steps to protect our technology from being used by our adversaries in ways that threaten our national security. As technology evolves, and our adversaries seek new ways to evade restrictions, we will continue to work with our allies and partners to proactively and aggressively safeguard our world-leading technologies and know-how, so they aren’t used to undermine our national security.” – Jake Sullivan, White House National Security Advisor, on new export controls targeting China’s chip industry, designed to safeguard U.S. interests

Department of Labor Backs Down on Burdensome Apprenticeship Regulation: The 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 administration of apprenticeship programs more expensive and less effective for workforce development in the electronics industry. Among the many concerns IPC flagged, the organization supported proposals to streamline 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.

CHIPS for America Announces $300M for Advanced Substrates R&D: The U.S. Department of Commerce (DOC) recently 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 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, 2024, and House Speaker Mike Johnson (R-LA) recently 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 here and request a pre-application consultation by emailing OSC.Loan.Application@osc.mil. Contact IPC to learn more about this program or request information about future IPC Government Relations events. IPC Contact: Rich Cappetto.

New EC Leaders in place; New IPC Resources Are Here: Political groups in the European Parliament (EP) confirmed all 26 Commissioners-designate, including two candidates who will play a pivotal role in the future of the electronics manufacturing ecosystem in Europe. Stéphane Séjourné has become the European Commission EVP for Industrial Strategy, and Henna Virkkunen EVP for Technological Sovereignty. The new College took office on December 1, 2024. In her speech delivered ahead of the vote, President Von der Leyen promised a “Competitiveness Compass” as her first major initiative to frame their work “for the rest of the term.” The Compass reflects the pillars of the Draghi report: innovation, decarbonization, security, and reducing dependencies. Tackling energy prices and the push to reduce regulatory burden were also highlighted.

 As the new College begins, 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

Meanwhile, 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.

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, aligning with industry certifications, and securing 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.

European Electronics Companies: Share Your Input on PFAS Ban: European electronics companies are invited to participate in a short survey prepared by the FPP4EU Secretariat 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 deadline to complete the survey is December 20, 2024, 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.

EU Standards Bodies Launch Workshop Series on Digital Product Passports for PCBs: CEN and CENELEC, the EU’s standard-setting bodies, are hosting a virtual workshop on January 20, 2025, 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 the consolidation of 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.

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 on LinkedIn), 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.

Optimizing Cleaning Products Used in Electronics Manufacturing – Dec. 10: IPC, in collaboration with ChemFORWARD, welcome a variety of electronics manufacturing companies including electronics cleaning product formulators to attend this webinar to understand the utility of IPC-1402, Standard for Green Cleaners Used in Electronics Manufacturing. Learn more and register here.

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.

The U.S. Government’s planned $300 million investment in advanced substrates for microelectronics is a big win for our U.S. innovation, and one that IPC had called for. Advanced packaging technology is vital to staying competitive in the global race for all cutting-edge technology, and substrate fabrication is critical to this process. The funding commitment announced yesterday will help ensure that chips produced in U.S. fabs can take the next step toward becoming fully functional systems in the U.S.

Join Diana Radovan PhD ELS, IPC’s Director of Sustainability Policy, at the 2025 Pan-European Electronics Design Conference (PEDC) in Vienna, as she discusses the urgent need for a robust regulatory framework to support the electronics industry in 2025 and beyond. PEDC brings together industry leaders, experts and academia to address key challenges and shape the future of electronics design in Europe, taking place on 29-30 January 2025.

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!