Dear [FIRST NAME]:

This highlight of this week was our participation in the Consumer Electronics Show (CES) in Las Vegas, where IPC President and John W. Mitchell met with other industry leaders and shared our perspective on innovation, supply chains, AI, and the workforce. IPC Chief Economist Shawn DuBravac spoke on the consumer trends shaping the auto industry. Follow the links to their LinkedIn profiles to hear more.

Meanwhile, as a tightly divided Congress gets underway and U.S. President-elect Donald Trump prepares to take office in ten days, we’re hearing some mixed signals about his party’s plans on tariffs, budget and tax legislation, all of which affect electronics. In other U.S. news, the U.S. Department of Commerce and Natcast awarded an Advanced Packaging Piloting Facility (PFF) to Arizona State University; and the U.S. Department of Defense opened the application window for low-interest loans under its Strategic Capital Equipment Finance program.

In Brussels, policy makers and influencers including IPC are standing by for the publication of a new policy blueprint to guide the European institutions’ work for the next five years.

We welcome your comments and questions as we move into a very busy 2025.

Chris Mitchell 
Vice President, Global Government Relations 

 

The Headlines at a Glance:

TOP NEWS OF THE WEEK

• Mixed Signals on U.S. Tariff and Budget Policies

QUOTE OF THE WEEK

• Many U.S. Imports Are Intermediate Inputs in Industry Supply Chains

IPC ADVOCACY AND YOU

• IPC Blogs Recap U.S. and EU Advocacy Accomplishments of 2024
• IPC Leader Offers Predictions for 2025

UNITED STATES

• Application Window Open for U.S. Government Loans for Critical Techs
• U.S. CHIPS Program Awards Advanced Packaging Facility to ASU
• Restarting the Clock on U.S. Defense PCB Funding

EUROPEAN UNION

• Brussels Standing by for New Five-Year Plan

ASIA

• Taiwan May Shift More of its Tech Supply Chain to U.S. 

ENVIRONMENT AND SUSTAINABILITY

• Contribute Your Ideas on EU’s Digital Product Passport for PCBs
• White House Welcomes IPC to Meeting on Green Chemistry

OTHER HEADLINES IN THE NEWS

• Newsweek | US Makes Major Tech Move Against China
• Reuters | Malaysia aiming to become energy, chip making hub, PM says
• Reuters | US to finalize Chinese vehicle crackdown rules next week, Raimondo says

UPCOMING EVENTS

• WHMA Annual Global Leadership Summit 2025: Ft. Meyers, Florida, Jan. 28-30
• IPC EMS Leadership Roundtable: Washington, D.C., Feb. 19-20
• IPC APEX EXPO 2025: Anaheim, California, March 15-20

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US

 

Mixed Signals on U.S. Tariff and Budget Policies: As the administration of U.S. President-elect Donald Trump prepares to take office on Jan. 20, we can continue to expect some policy contradictions to appear among media reports, staff conversations, and the President-elect’s posts on social media. In the latest example, the Washington Post reported on Monday that officials are now considering imposing tariffs more narrowly on imports in key sectors such as defense, medical supplies, and energy, rather than more widely against all imports, as Trump promised during the campaign. But hours later, Trump called the Post report “fake news,” reaffirming his intention to impose “universal” tariffs on all imports. If critical imports are targeted, experts believe a supporting analysis would be required, giving industry an opportunity to weigh in. Universal tariffs could cause an inflation shock and political backlash. We invite your input and plan to advocate aggressively on your behalf.

Meanwhile, lingering strategy differences between Congress and the incoming White House on budget and tax issues may be coming into greater focus. Until recently, news reports suggested the White House would back the Senate’s preferred strategy of moving a bill  focused on immigration, defense, and energy within the first 100 days, and tackling major tax reform later this year. But as Politico reports, it now appears they may roll everything into one large “budget reconciliation” package. This means that now, more than ever, industry must press hard early on our tax policy priorities, such as creating a 25% credit for domestic manufactured PCBs, as called for in the Protecting Circuit Boards and Substrates Act. IPC will also urge preserving the 2017 tax cuts that are set to expire, including the 21% corporate tax rate, the pass-through deduction, and full immediate expensing for capital equipment purchases; and to reestablish the immediate deduction of R&D expenses, which began phasing out in 2023. Please let us know what you think about potential tax changes and our advocacy priorities.  IPC Contact: Rich Cappetto.

 

“If you put tariffs on every country in the world, it’s not like we can import from Mars,” said Kimberly Clausing of the Peterson Institute for International Economics, noting that a majority of U.S. imports are for intermediate goods in firms’ supply chains, not for finished products. “So we’d be making it much more expensive for a U.S. firm to compete with anyone else in the world, because our firms would have to pay much more for imports.” Read the Washington Post story on the latest moves on tariffs.

 

Recapping IPC’s Top Accomplishments of 2024: In a pair of IPC 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., two Senate committees adopted IPC-backed language to promote investments in advanced printed circuit boards (PCBs); the National Advanced Packaging Manufacturing Program (NAPMP) cited an IPC 2021 report in its strategy to build a domestic advanced packaging ecosystem; 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 co-signed by 59 companies, 17 associations, and the European Space Agency; held numerous meetings with top policymakers; and published additional helpful materials online. For an even broader perspective, check out the IPC 2024 Year in Review document, covering all of IPC’s efforts in industry standards, education and training, technology solutions, sustainability, and industry intelligence.  IPC Contacts: Rich Cappetto and Alison James. IPC CEO Offers Predictions for 2025: “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 in a New Year’s 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 W. Mitchell.

Application Window Open for U.S. Government Loans for Critical Techs: The application window for the U.S. Department of Defense’s Strategic Capital Equipment Finance program is now open through February 3. The DoD Office of Strategic Capital (OSC) is offering loans from $10 million to $150 million for capital investment and equipment purchases related to critical technologies in the defense supply chain. IPC has been facilitating OSC information-sharing with electronics industry leaders since last summer. Learn more about the loan program here and contact Rich Cappetto with any questions.

U.S. CHIPS Program Awards Advanced Packaging Facility to ASU: The U.S. Department of Commerce and Natcast, the non-profit entity that operates the National Semiconductor Technology Center (NSTC),  this week announced an award to Arizona State University (ASU) Research Park in Tempe, Ariz., for an Advanced Packaging Piloting Facility (PFF). The new facility “will enable researchers and industry leaders to develop and test new materials, devices, and advanced packaging solutions” in a “manufacturing-like” environment. This is the third facility awarded by the CHIPS for America Program, and it is expected to open in 2028. IPC has been a leading advocate for the development of advanced packaging capabilities in the United States. Our 2021 report on advanced packaging was cited in the agency’s strategic plan document for the National Advanced Packaging Manufacturing Program (NAPMP). IPC Contact: Devan Iyer.

Restarting the Clock on U.S. Defense PCB Funding: Even as the U.S. Congress is sorting out its legislative priorities for the new year (see related stories above), they also must complete the federal government’s FY25 spending bills. For now, defense spending remains set at the FY24 level through late March. 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 .

 

Brussels Standing by for New Five-Year Plan: As the European Commission is beginning its work for 2025, an early initiative will be the “Competitiveness Compass,” which EC President Ursula von der Leyen is expected to publish later this month. Drawing from recent landmark reports by statesmen Mario Draghi and Enrico Letta, the initiative aims to be a five-year blueprint to tackle the EU’s innovation gap with global rivals, ensure the bloc’s economic security, and make progress on decarbonization. IPC and our partners will be watching for the release of this plan, and we will continue to engage with EU leaders to emphasize the vital role of Europe’s electronics manufacturers in achieving the EU’s goals. Learn more about IPC’s European advocacy work and our Industry Call to Action on our EU Advocacy home page.  IPC Contact: Alison James.

 

Taiwan May Shift More of its Tech Supply Chain to U.S.:  The government of Taiwan will support moving more of its supply chains for autos and information technology to the United States, Bloomberg reports (subscription required). At a briefing in Taipei, Minister of Economic Affairs Kuo Jyh huei said these industries are likely to face the greatest impact from U.S. President Donald Trump’s planned tariff hikes. Taiwan also plans more research and development cooperation with the U.S. in the space sector, and it may buy more energy from U.S. suppliers. IPC Contact: Sydney Xiao.

 

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. Today is the last day to submit your registration and comments on the draft project plan. Contact IPC’s Diana Radovan to join in consolidated industry comments. Learn more on the IPC Blog.

White House Includes IPC in Meeting on Green Chemistry: The White House Office of Science and Technology Policy (OSTP) recently 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

 

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 EMS Leadership Roundtable: Public Policy and Your Business (Washington, D.C.), Feb. 19-20: If you care about the future of the EMS sector, join us in DC to dive into key policy topics, network with industry leaders, enjoy a reception and dinner, and participate in optional meetings with policymakers to shape the future of EMS. 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.

 

In his latest column, Nolan Johnson highlights key industry shifts: Tariff changes & economic shifts AI & automation advancements Technical innovations like UHDI Nearshoring strategies Stay ahead in 2025!

Cesare Dunker, DG-Grow, European Commission, emphasises the importance of collaboration to strengthen the PCB and EMS industry in Europe. His key takeaway for industry players was: “Keep the conversation going and explore ways to further support European manufacturing.” An inspiring message for all stakeholders striving to shape the future of the electronics manufacturing industry.