– IPC Chief Economist Shawn DuBravac in an interview with Fierce Electronics about the current state of global trade with the uncertainty surrounding tariffs

IPC Files Comments Opposing U.S. Copper Tariffs: Recently, IPC submitted comments to the U.S. Department of Commerce in connection with that agency’s investigation of copper imports. IPC is concerned that the imposition of U.S. tariffs on copper and derivative products would interfere with the industry’s recent re-shoring trend. IPC also noted that copper is widely used across the electronics value chain, and tariffs would raise costs on domestic manufacturers, who depend on many specialty products like copper foils that are only available from foreign sources. “Every dollar spent on higher material costs is a dollar not invested in equipment, facilities, automation, or workforce development,” IPC says. IPC Contact: Richard Cappetto. 

AI Depends on Electronics, IPC Tells White House: Following U.S. President Donald Trump’s recent guidance to the White House Office of Science and Technology (OSTP), to develop new national strategies on artificial intelligence (AI) and other technologies, IPC submitted official comments reiterating our position that U.S. leadership in AI depends not only on software and data but also on a strong domestic electronics manufacturing base. Specifically, AI innovation requires secure, advanced hardware, including IC substrates, printed circuit boards (PCBs), high-bandwidth memory, and advanced packaging. IPC urged the government to invest in five key areas: IC substrate fabrication; AI component assembly and testing; high-bandwidth manufacturing; PCB/HDI production; and PCB assembly. IPC also recommended tax incentives and stronger demand signals to bolster U.S. manufacturing. Do you have any AI questions or insights?  IPC Contact: Richard Cappetto. 

Mexico Unveils Semiconductor Industry Roadmap: In a major step forward for regional tech integration, the U.S. Embassy in Mexico and Canieti (Mexico’s National Chamber of Electronics, Telecommunications, and Information Technologies) have released a joint Master Plan for the Development of the Semiconductor Industry. The plan sets ambitious goals to double exports and job creation in the sector by 2030, with a focus on workforce development, investment attraction, and supply chain integration. As Mexico News Daily reports, the Mexican Finance Ministry is designing a program of incentives similar to those adopted in the United States to develop the semiconductor industry and spur technological innovation. Foxconn and other major companies are planning to invest in new semiconductor fabs in Guadalajara. If successful, these initiatives could strengthen Mexico’s position in the global semiconductor ecosystem and create new opportunities for electronics manufacturers. IPC Contact: Lorena Villanueva. 

Mexico Opens First National Semiconductor Design Lab: Mexico has inaugurated its first National Laboratory for Semiconductor Design and Advanced Electronics at the Aguascalientes Institute of Technology (ITA), marking a major step forward in the country’s high-tech ambitions. Outfitted with advanced technology tools, the lab will strengthen Mexico’s capabilities in Assembly, Testing & Packaging (ATP) and support the development of a domestic semiconductor ecosystem. Backed by partners such as the U.S.-Mexico Foundation for Science (FUMEC), the initiative highlights Mexico’s growing role in regional supply chains. IPC Contact: Lorena Villanueva. 

Southeast Asian Nations Weigh Responses to U.S. Tariffs:  Southeast Asia mobilized quickly in response to last week’s wave of new U.S. tariffs, with governments across the region balancing diplomacy and domestic strategy. All but China will now have a brief window to regroup, as the U.S. on Wednesday announced a 90-day pause on most reciprocal tariffs. “The Trump administration will prioritize trade deals with countries surrounding China, NBC News reported Thursday, citing negotiations with Japan, South Korea and Vietnam as “key priorities.” Vietnam is reportedly prepared to crack down on Chinese goods being shipped to the U.S. via its own territory, Fox Business reports. Indonesia, threatened with a 32% tariff, began preparing trade concessions and tax adjustments on U.S. imports ahead of formal talks. India saw both challenges and opportunities, with auto parts and electronics makers among those most impacted. Across the board, policymakers called for proactive, flexible approaches to protect local industries and maintain economic growth as they engage with Washington. IPC will continue to watch these developments closely, and we invite your input. IPC Contact: Arpita Das.  

India Approves Investment Plan for Electronics Components: Last week, India’s Union Cabinet approved the “much-awaited” Production Linked Incentive (PLI) scheme for electronics component manufacturing with an outlay of Rs 22,919 crore ($2.6 billion). The scheme will cover components like display module sub-assemblies; electro-mechanicals for electronic applications; multi-layer printed circuit boards (PCBs); enclosures for mobile, IT hardware products and related devices; and lithium-ion cells for digital applications, the Economic Times reports. “We need to come out of import substitution mindset and start manufacturing for us for the rest of the world,” Union Electronics and IT Minister Ashwini Vaishnaw said at a press conference in New Delhi (Outlook Business, Mar. 28). IPC Contact: Arpita Das.  

European Commission Launches AI Action Plan: This week, the European Commission formally adopted its AI Action Plan, outlining concrete steps to strengthen Europe’s autonomy and leadership in artificial intelligence. Building on the recent launch of the InvestAI initiative, the plan prioritizes investment in AI infrastructure, wider access to quality datasets, talent development, and AI deployment across strategic sectors. It also aims to streamline implementation of the EU AI Act and signals a growing focus on AI chips as part of the bloc’s next steps under the European Chips Act. For more details, visit the European Commission’s AI hub. IPC Contact: Alison James.

European Institutions Approve Fast-Track Relief on CSRD, CS3D Timelines: Recently, the Council of Europe and the European Parliament postponed the entry into application of the Corporate Sustainability Due Diligence Directive (CS3D) and specific provisions of the Corporate Sustainability Reporting Directive (CSRD), as called for by IPC and other industry associations. In a joint industry statement, the groups had requested the move and said the “stop-the-clock” proposal “would provide adequate time to adopt the comprehensive changes, hold holistic discussions and stakeholder consultations, and allow for the thorough development of guidance.” For further details, refer to the joint industry statement. IPC Contact: Diana Radovan. 

European Companies Invited to Share Input on CSRD Impact: A new, independent survey has been launched to gather insights from European companies affected by the Corporate Sustainability Reporting Directive (CSRD). Developed by a team of professors from leading European business schools and ESG experts coordinated by WeAreEurope, the survey aims to capture how CSRD is influencing corporate sustainability strategies and reporting efforts. The results will be analyzed and published as part of an academic research project, providing policymakers and stakeholders with neutral, data-driven insights. If your company is impacted by CSRD, IPC encourages you to participate and share your perspective. The survey takes approximately eight minutes to complete and can be accessed here. IPC Contact: Diana Radovan. 

Stat of the week: Are you among the 61% of electronics manufacturers who will renegotiate supplier contracts? Let us know your thoughts. For more data on the industry’s response to tariffs, see the March IPC Sentiment of the Global Electronics Supply Chain report.

IPC’s VP of government relations shares thoughts on tariffs:  About those tariffs ...  I've had the opportunity in recent days to speak to more than a dozen executives of leading U.S. electronics companies, and one message is clear: the U.S. tariffs campaign is freezing planned investments both at home and abroad. The uncertainties and massive capital required for new facilities and equipment make the risk simply too great.