“Electronics drive global progress. Every industry defining the next century depends on electronics. Electronics is the crucial resource for every industry."   

– IPC President and CEO Dr. John W. Mitchell, delivering his keynote address at IPC APEX EXPO 2025 in Anaheim, California

Defense Electronics Secure Funding in U.S. Federal Budget: U.S. President Donald Trump signed the U.S. government’s final spending bill for FY25, including $463.4 million for Defense Production Act (DPA) purchases, some of which may flow to printed circuit boards (PCBs). PCBs and related components are essential to every piece of military and civilian electronics.

In a statement, IPC President and CEO Dr. John W. Mitchell said, “IPC is encouraged by this outcome, but there is more short-term and long-term work to be done to ensure the United States rebuilds its weakened defense electronics industrial base.”

The final funding level for DPA purchases in FY25 is essentially the same as in FY24, which was a marked improvement from the year before. IPC worked throughout 2024 to educate lawmakers on this issue and maintain or build on that funding level. The outcome could have been worse, as the Biden administration proposed a cut in the DPA account in FY25.  

The legislation requires the Defense Department to submit a plan for DPA spending within 45 days, and IPC is working to ensure PCBs and related technologies are included. Looking ahead to FY26, IPC continues pushing for stronger funding to support the U.S. defense electronics industry. IPC Contact: Richard Cappetto.  

IPC Urges Caution on Tariffs, Seeks Industry Intel on Copper: IPC recently submitted comments to the U.S. Trade Representative, encouraging him to pursue bilateral and multilateral negotiations to address any U.S. concerns with non-reciprocal trade policies. Should the USTR decide to go forward anyway, “we urge you to consider exempting imports including raw materials, components and equipment that are critical to U.S. manufacturing, and for which new sources are not available or not easily identified. … The combination of rising production costs, uncertainty of supply, and mounting compliance burdens will threaten to drive electronics manufacturing out of the United States.”  

Meanwhile, the U.S. Department of Commerce requested public comments by April 1 on the possibility of imposing new trade restrictions or tariffs on copper, which is a key material for circuit boards, wiring, and semiconductor components. IPC is gathering industry data and anecdotes about how higher costs of copper could affect our members.  Keep track of all the relevant official trade policies along with IPC analysis on our trade policy webpage; and let us know how these actions are affecting your company.

In the Forbes CIO newsletter, IPC President and CEO Dr. John W. Mitchell urged other industries to care more about the need for a national electronics strategy. “People are like, ‘Oh, I have an AI strategy.’ Well, guess what? That’s an electronic strategy. ‘I have an internet strategy.’ That’s an electronic strategy. It all comes back to that. They should get engaged with IPC to better understand what's impacting their innovation in the future, because without an electronic strategy, they’re going to struggle having to continue the accelerated pace of innovation.” IPC Contact: Richard Cappetto.     

 

Silicon Valley and Global Firms Fuel Mexico’s Electronics Growth: Mexico’s electronics manufacturing industry continues its rapid growth, with major expansions and new investments solidifying its role as an industry hub. Federal Electronics is expanding its operations in Hermosillo, Sonora, with a new 80,000+ sq. ft. facility, creating new supply chain and partnership opportunities. Meanwhile, Silicon Valley giants Flex and Jabil plan to invest approximately $890 million in Jalisco in 2025, reinforcing the state’s status as a growing tech hub. With Foreign Direct Investment (FDI) in Mexico’s electronics sector surpassing $7.8 billion over the past two decades, the country’s strategic location and business-friendly environment continue to attract global manufacturers. IPC Contact: Lorena Villanueva.

Mexico Navigates Trade Challenges with Growth in Semiconductors and EVs: Mexico’s electronics manufacturing industry faces new uncertainties as approximately 50% of its exports to the U.S. risk a 25% tariff, falling outside the USMCA agreement, reports IPC Mexico Director Lorena Villanueva. Electronics manufacturers must reassess supply chains and ensure compliance with trade agreements to avoid hefty tariffs. Some companies, including Compal Electronics and Inventec, are considering shifting operations to the U.S. to offset rising costs, while Foxconn and Intel are expanding semiconductor production in Mexico to replace Asian suppliers. Meanwhile, Mexico’s aerospace and EV sectors continue to grow, with Monterrey emerging as an aerospace hub. However, China has delayed approval of BYD’s planned EV plant in Mexico over concerns about potential technology leaks to the U.S., a move that could slow EV industry growth and disrupt supply chains. IPC Contact: Lorena Villanueva. 

Mexican Automotive Suppliers Gain Support Through New State Initiative: The Mexican state of Aguascalientes recently launched the State Supplier Development Program to strengthen local industry, starting with the automotive sector. The initiative provides technical support, training, and direct connections with major companies to enhance supplier competitiveness. A collaboration agreement has been signed between Industria Nacional de Autopartes (INA), representing the national auto parts industry, and the International Finance Corporation (IFC) to expand the program nationwide. The moves are intended to reinforce Aguascalientes’ position as a hub for advanced manufacturing and auto parts production. IPC Contact: Lorena Villanueva. 

 

EU Advances Defense Strategy as IPC Highlights Gaps: The European Commission this week adopted a White Paper on the future of European defense, along with the ReArm Europe plan to strengthen defense readiness by 2030. As the EU takes its next steps, IPC has released a new report, "Securing the Electronics Value Chain: The Blind Spot in the European Union’s Industrial Defence Strategy?" The report urges EU policymakers to prioritize electronics in defense industrial policies to ensure a resilient and competitive supply chain. This issue is critical for IPC and its members, as a strong European defense electronics ecosystem is essential for supply chain security, innovation, and long-term industry growth. IPC Contact: Alison James.

Industry Leaders Call for EU Chips Act 2.0: This week, leading semiconductor firms and industry groups, including the European Semiconductor Industry Association (ESIA) and SEMI Europe, called on the European Commission to launch an ”EU Chips Act 2.0.” Building on the original 2023 Chips Act, this initiative aims to expand support beyond manufacturing to encompass chip design, materials, and equipment, thereby reinforcing Europe's position in the global semiconductor market. The original EU Chips Act mobilized €43 billion to increase Europe's share of global chip production to 20% by 2030. However, industry leaders argue that additional measures are necessary to address gaps in the supply chain and to keep pace with international competitors. IPC will continue monitoring these developments and advocating for policies that strengthen the global electronics manufacturing ecosystem, ensuring a stable and resilient supply chain. IPC Contact: Alison James.

 

Southeast Asia Ramps Up Chip Game with Global Partnerships: Southeast Asia is emerging as a key player in electronics manufacturing, with Malaysia and India strengthening semiconductor ties and Vietnam advancing AI and chip development. Malaysia seeks deeper collaboration with India to enhance supply chains and leverage its expertise in assembly and testing. Meanwhile, Vietnam is prioritizing technological innovation, calling on global partners to support its AI and semiconductor sectors and planning to train 100,000 engineers. These efforts demonstrate the region’s growing role in the global electronics industry. In support of these developments, IPC has bolstered its advocacy and industry engagement efforts in Southeast Asia. IPC's Southeast Asia team is actively working to advocate for the electronics industry across the region. IPC Contact: Arpita Das. 

 

IPC’s Chris Mitchell, VP of global government relations, stated that copper is a “critically important element of PCB fabrication. To the degree we raise copper on US manufacturers of PCBs, it undermines their competitiveness in the global market.”

IPC’s Alison James breaks down why the EU Competitiveness Compass is a game-changer and how IPC is rallying the industry to take action.