“It's clear that the tariff rates moving forward will be higher, [so] companies now are trying to figure out how much of this can we absorb, how much can we push back up the supply chain, and then how much of the supply chain needs to change so that we can recalibrate around these tariffs? And you've already seen that—for example, if you look at things like smartphone imports into the U.S., the imports coming from India were about 12% last year; in February they were 28%. You saw a very big shift in a very short period of time in trying to reallocate where all of this is coming from.”

— IPC Chief Economist Shawn DuBravac in a conversation with Philip Stoten on EMS and the Economist

 

Colorado Executive Order Advances Workforce Innovation: Colorado Governor Jared Polis recently issued an executive order launching a strategy to overhaul the state’s workforce development system. According to an article in Work Shift, the plan aims to better align education and training with industry needs through stronger cross-sector collaboration, accelerated credentialing, and a unified vision for upskilling across the state. With a strong focus on industry-recognized credentials and regional training partnerships, Colorado’s model reflects many of IPC’s top workforce policy recommendations. As federal and state leaders consider workforce legislation and funding in 2025, IPC urges them to look to Colorado as a great example of policy innovation in action. IPC Contact: Richard Cappetto.     

IPC Applauds Pro-Electronics Pieces of “Big Beautiful Bill”: The U.S. House last week passed a wide-ranging bill to deliver on President Trump’s domestic agenda, including several provisions endorsed by IPC. In a letter sent to House leaders one eve of the vote, IPC President and CEO John Mitchell said the “Big Beautiful Bill Act” will “strengthen our industry’s ability to invest, innovate, and remain competitive in today’s fast changing global economy.” Mitchell specifically praised tax provisions that would preserve the 21% corporate tax rate, restore 100% bonus depreciation, reinstate immediate R&D expensing and expand the Section 199A deduction for pass-throughs. IPC had called for those provisions and urged lawmakers to go further by adopting a tax credit for U.S.-made PCBs (as proposed in the PCBS Act) and the extension of Sections 48D and 45X to cover electronics components and assemblies.  Mitchell also welcomed provisions that raised the Section 179 expensing cap from $1 million to $2.5 million; created a new 100% deduction for new or improved factory construction; and established a Workforce Pell Grant Program for high-quality, credentialed training. The Senate is expected to act on a companion measure in the coming weeks. Significant differences remain between House and Senate Republicans on many provisions.  Stay tuned for IPC advocacy opportunities on this front. IPC Contact: Richard Cappetto.     

IPC-Backed PCBS Act Reintroduced in U.S. House: A bipartisan pair of U.S. representatives has reintroduced the Protecting Circuit Boards and Substrates Act (PCBS Act), with strong support from IPC. The bill offered by Reps. Blake Moore (R-UT) and Raja Krishnamoorthi (D-IL) would establish a 25% tax credit for the purchase of U.S.-made printed circuit boards (PCBs) and authorize $3 billion to invest in domestic PCB and IC substrate production. In a statement, IPC President and CEO John Mitchell said, “This bill is a vital step toward rebuilding the nation’s ability to manufacture electronics from silicon to systems—an essential foundation for innovation, security, and economic strength.” With the U.S. being highly reliant on overseas sources for PCBs and substrates, this legislation is aimed at reshoring capacity and securing the technological foundation for everything from fighter jets to medical devices. Stay tuned for advocacy opportunities on this bill. IPC Contact: Richard Cappetto.  

 

Netherlands Pushes Policies to Anchor EU Chip Supply Chain: In a recent interview with CNBC, Dutch Minister of Economic Affairs Dirk Beljaarts said Europe is working to build “strategic autonomy” in semiconductors, as the continent’s chips coalition is growing from nine to 15 nations. Dutch officials are urging the European Union to act more cohesively in implementing the €43 billion EU Chips Act, emphasizing that Europe must move beyond national silos to build a resilient, end-to-end semiconductor supply chain. As home to ASML, a global leader in chipmaking equipment, the Netherlands is also encouraging expanded cooperation with key countries in Asia, including Japan and South Korea, to bolster supply chain security and technology exchange. IPC continues to support a full value chain approach to semiconductor policy that includes design, packaging, and materials, alongside strong global partnerships. IPC Contact: Alison James.     

 

Mexico Navigates Electronics Tariffs and Certification Developments: Mexico’s electronics sector continues to evolve amid shifting global trade conditions. According to NAPS International, newly imposed U.S. tariffs on select imports have introduced additional cost pressures for manufacturers, prompting some companies to revisit sourcing strategies and cost structures across North America. At the same time, firms are expanding their operational capabilities. I-Connect007 reports that Federal Electronics has received AS9100 certification for its Hermosillo, Sonora facility, strengthening its position in aerospace and defense electronics manufacturing. While rising wages and operational costs are narrowing the gap between Mexico and Asian competitors, Mexico remains a factor in many regional supply chain strategies due to its location, labor base, and trade alignment. IPC Contact: Lorena Villanueva. 

Industrial Investment in Mexican EV and Electronics Supply Chains: Mexico’s electronics and electric mobility sectors continue to attract investment activity across several regions. According to Mexico Industry, Chinese firm Yadea has opened a $78.6 million electric motorcycle plant in Ocoyoacac, with annual production capacity of 30,000 units. In Guanajuato, state officials announced over 3,600 hectares available for industrial development across 47 parks, targeting electronics, automotive, and IT sectors (Mexico Industry). A separate Mexico Industry report notes that more than 20 South Korean companies are currently evaluating high-tech expansion opportunities in Mexico, following recent trade outreach by the country’s Deputy Minister of Foreign Trade. Meanwhile, Mexico’s automotive wire harness industry—vital to EV and electronics production—is expanding in hubs like Ciudad Juárez and Guanajuato, though only 3.2% of materials are sourced locally. According to Expo Wiretech, over 90,000 workers have been trained by INADET, with 20% focused on electronics roles. IPC continues to monitor these trends and their implications for supply chain localization, workforce readiness, and regional competitiveness. IPC Contact: Lorena Villanueva. 

 

Tokyo Roundtable Spotlights Trade and Tech Innovation: IPC hosted its 2025 Q2 Executive Policy Roundtable last week at Tokyo Kaikan, convening senior government officials, corporate leaders, and policy experts for a high-level dialogue on the future of global electronics supply chains. The event focused on cultivating U.S.–Japan cooperation in semiconductors and advanced technology; leveraging advanced electronics packaging (AEP); and expanding international collaboration beyond traditional industrial boundaries. Speakers included former LDP Secretary General Akira Amari; IPC President and CEO John Mitchell; IPC VP of Global Government Affairs Chris Mitchell and IPC Chief Technology Officer Matt Kelly. Discussions emphasized Japan’s strengths in materials and manufacturing equipment, and the need to reinforce global value chains through innovation and strategic partnerships. The Tokyo roundtable marked the second event in IPC’s quarterly executive series in Japan. IPC Contact: Yusaku Kono. 

India Advances Electronics and Semiconductor Strategy: India is ramping up efforts to strengthen its position in the global electronics and semiconductor landscape. According to Business Standard, the government recently approved key proposals under its Semiconductor Mission in Uttar Pradesh, including projects involving HCL and Foxconn, aimed at boosting domestic chip capacity. In parallel, officials confirmed that the first group of eligible applicants under the Production-Linked Incentive (PLI) scheme for electronic components may be announced within the next month. India has also articulated a national goal of capturing 5% of the global semiconductor market by 2030, a target supported by new investments, government incentives, and a long-term push to move up the electronics value chain. As noted in a recent Business Standard report, the Semicon India program is entering its next phase, with an emphasis on manufacturing, design, and packaging. IPC Chief Economist Shawn DuBravac highlighted this momentum in a recent LinkedIn post, noting how India has evolved from a hub for call centers to an increasingly competitive player in advanced electronics. IPC Contact: Gaurab Majumdar. 

 

New EU RoHS Project Launches with Six Exemptions Under Review: The Oeko-Institut, a nonprofit Germany-based research institute, recently launched “RoHS Pack 28,” a new project on behalf of the European Commission to evaluate five renewal requests and one exemption revocation under the Restriction of Hazardous Substances (RoHS) Directive. The exemptions under review include uses of mercury in lamps, sensors, and medical devices, as well as lead in explosive initiators and ultrasonic transducers. Companies affected by these exemptions are strongly encouraged to engage early, as RoHS decisions can significantly impact product design, market access, and supply chain continuity. IPC continues to monitor RoHS developments and engage with regulators to ensure a balanced approach that supports innovation and environmental responsibility. IPC Contact: Diana Radovan. 

 

Omnibus Package on Sustainability Reporting - What Should the Electronics Industry Expect?
Online, June 5:  IPC, Anthesis Group, and Incap Corp. are convening a webinar to discuss the European Commission’s proposed “Omnibus” package, which is intended to simplify EU sustainability reporting rules related to the EU Green Deal. Learn more and register here.

EMS Advocacy Day & Public Policy Roundtable, Washington, D.C., June 11: If you’re aiming to become a leader in EMS, join your peers to discuss and advocate on the industry's most pressing challenges and opportunities. Attendees will hear from congressional staff and agency officials, share their perspectives on key issues, and help shape IPC’s advocacy strategy moving forward. Space is limited, so early registration is encouraged. Learn more and register here.    

 

Check out the latest edition of EMS & the Economist

IPC President and CEO, John W. Mitchell shares about Colorado’s new executive order