The Government Circuit: Help IPC Advocate for Our Industry

Here in Washington, it is shaping up to be a busy end of year, and time is running out for the U.S. Congress to complete several priorities before the current “lame duck” session ends. As of this writing, Congress must still fund the government beyond Dec. 16, increase the debt ceiling, finalize the annual defense authorization bill, and complete any other measures relying on bipartisan support. Then the newly elected Congress will start over with a fresh slate in January.

Here at IPC, we recently released a report that highlights how advanced packaging is a key driver for microelectronics innovation, and we outlined clear steps that governments—including the U.S. government—can take to bolster advanced packaging capabilities1. One of the report’s major takeaways is that industry leaders are interested in purchasing domestically available, advanced IC-package substrates and IC-package assembly from U.S. suppliers—if doing so is cost-competitive. We hope you take the time to delve deeper into our report and stay tuned for more “industry intelligence” reports in the coming year.

As we look toward the new year, please browse our advocacy pages, follow IPC on social media, or contact IPC’s Government Relations (GR) team if you have any questions or suggestions. We always welcome your thoughts and feedback, especially now with 2023 right around the corner. Read on below for some of the top issues we are engaged in.

IC Substrates: Build It and They Will Come?
A recent IPC report demonstrated the importance of the advanced packaging ecosystem and showed strong industry support for increased public and private investment in advanced packaging efforts1. According to the report, 94% of electronics industry leaders believe that improving the performance of semiconductors is increasingly reliant on advanced packaging, while a further 84% believe government initiatives to bolster the semiconductor supply chain require significant investment in advanced packaging capabilities.

Additionally, the industry leaders surveyed believe that governments can, and should, do more to bolster advanced packaging capabilities, with only 29% believing policymakers appreciate the importance of advanced packaging in semiconductor innovation. A further 82% believe government initiatives to bolster semiconductor supply chains are a first step in supporting technological innovation and supply chain resiliency.

The report also showed that the United States has sufficient capacity and technology to support the advanced packaging market segment, but additional infrastructure investment is needed to successfully develop it further. Over the past year, IPC has actively called for the USG to invest in and bolster this critical ecosystem, and we will continue to beat this drum in 2023.

CHIPS Act Implementation: More Than Just Chips
IPC’s advocacy team has also been engaged in opportunities to make the industry’s voice heard on critical issues at the federal level.

Most recently, IPC outlined how electronics manufacturing must play a critical role in supporting the growth of the U.S. semiconductor industry in comments to the U.S. Department of Commerce on how to maximize the impact of the CHIPS Incentives Program.

Specifically, IPC called for USG to:

  • Invest in advanced packaging ecosystem (including IC-substrates and package assembly and test)
  • Invest in supply chain partnerships
  • Invest in high-density interconnects
  • Invest in industry-recognized workforce programs

Having collected public comments, the CHIPS Program Office (CPO) within the National Institute of Standards and Technology (NIST) is now preparing a request for proposals for funding under the CHIPS Act. That request is currently expected to be released in early 2023, and we will keep you updated on this issue.

IPC will continue to advocate in multiple forums for a “silicon-to-systems” approach. If you would like to make your voice heard in this critical debate, please contact me to get involved in our advocacy efforts.

Electronics Manufacturers Say Recession Is Inevitable
The difficult challenges many businesses have faced this year are set to continue in 2023, with electronics manufacturing industry executives see a recession as almost inevitable next year.

According to IPC’s October Global Sentiment Survey and Monthly Economic Outlook, 45% of respondents believe the economy will enter a recession in 2023, while 27% believe we are already in a recession2-3. Industry executives expecting a recession are bracing for a longer one.

Additionally, more than four-fifths of electronics manufacturers are experiencing rising material costs, and three-fourths are reporting rising labor costs. Simultaneously, industry is seeing declines in ease of recruitment, profit margins, and inventory available. However, if there is a glimmer of hope, it is that manufacturers are expected to see a decline in backlogs over the next six months.

Overall, tight financial conditions, inflation concerns, and an uncertain economic outlook are making both businesses and consumers more cautious. Be sure to read the full report, stay tuned for next month’s reports, and please reach out if you have any questions4.

Industry Feedback Needed on New Environment and Health Concerns
Chemical regulators are busy this fall, and there are new opportunities to share your input.

On Nov. 10, the Federal Acquisition Regulatory (FAR) Council released a proposed rule that would require federal contractors to disclose their greenhouse gas (GHG) emissions. The rule would apply to all contractors receiving more than $7.5 million in annual federal contracts, while contractors that exceed $50 million would be further required to set emission reduction targets in line with the Paris Agreement. Comments on the rule are due by Jan. 13, 2023.

Feedback is also due on Jan. 17 on a U.S. Environmental Protection Agency (EPA) proposed rule that would significantly increase fees for EPA-initiated risk evaluations of existing chemicals under the Toxic Substances Control Act (TSCA). The EPA undergoes 20 to 30 risk evaluations each year, and even if the current list of chemical substances does not apply to your company, future lists may apply, and you may be obligated to pay at that time. In March 2021, IPC responded to the EPA’s proposed rule and acknowledged the importance of the fee rule to the electronics industry.

Let IPC’s environment and health expert Kelly Scanlon know if there is any way we can assist.

EU Parliament Adopts New Reporting Rules
In Europe, policymakers have remained active as they work to reach conclusions on long-debated legislation with potential ramifications on our industry.

After much debate, the European Parliament and EU Council recently adopted a rule aiming to strengthen the reporting requirements for sustainability information of certain large companies. The Corporate Sustainability Reporting Directive (CSRD) will require companies operating in the European Union to regularly disclose and publish detailed information on sustainability matters, including climate change, human rights, and governance. The directive is expected to affect the electronics industry with regards to resources, reporting, and transparency efforts across the value chain.

You can read more about the CSRD and the implications for our industry in IPC’s April 2021 blog5.

EU Ambassadors Reach Agreement on EU Chips Act
Elsewhere in Europe, on Nov. 25, EU ambassadors reached agreement on legislation to bolster the bloc’s competitiveness and resilience in semiconductor technologies and applications. The €43 billion ($44.4 billion) agreement, called the EU Chips Act, largely mirrors the European Commission’s proposal put forward in February, but it “expands the scope of what chip plants are considered ‘first-of-a-kind’ and qualify for state aid,” Bloomberg reports6. The text also cited packaging as an activity that can boost innovation. The EU Parliament is expected to adopt its own plan in February 2023, and we will keep you updated on its progress.

Pledge to Help IPC Advocate for Our Industry in 2023-24
The GR team is composed of experienced professionals working for you year-round, but our success depends on active participation from IPC members. With the November elections now behind us, our 2023 advocacy efforts are coming up soon. Please be sure to confirm your contact details and pledge to stay involved in IPC advocacy. We will send you information and timely action alerts, and we will make it easy to communicate with your elected officials with just a few clicks.

To my colleagues in the United States, I hope everyone enjoys a safe and happy holiday season. See you next year.

References

  1. “Towards a Robust Advanced Packaging Ecosystem,” with a forward by John Mitchell, IPC.org, 2022.
  2. “The Current Sentiment of the Global Electronics Manufacturing Supply Chain: Monitoring the Pulse of the Global Electronics Industry,” IPC.org, Oct. 2022.
  3. “Monthly Economic Outlook,” IPC.org, Oct. 2022.
  4. “One-Fourth of Electronics Manufacturers Believe We are Currently in a Recession,” IPC.org, Oct. 31, 2022.
  5. “European Commission Leaps Forward in Sustainability Reporting Requirements,” by Alison James, IPC.org, April 23, 2022.
  6. “EU Nations Advance €43 Billion Plan to Become Semiconductor Hub,” by Jillian Deutsch, Bloomberg.com, Nov. 23, 2022.

Chris Mitchell is IPC’s VP of global government affairs. Contact him at ChrisMitchell@ipc.org.

Back

2022

The Government Circuit: Help IPC Advocate for Our Industry

12-13-2022

Here in Washington, it is shaping up to be a busy end of year, and time is running out for the U.S. Congress to complete several priorities before the current “lame duck” session ends. As of this writing, Congress must still fund the government beyond Dec. 16, increase the debt ceiling, finalize the annual defense authorization bill, and complete any other measures relying on bipartisan support. Then the newly elected Congress will start over with a fresh slate in January.

View Story

The Government Circuit: U.S. Congress Gets Serious About Boosting U.S. PCB Sector

05-25-2022

As you know so well, electronics manufacturing contributes powerfully to the U.S. and global economy, but a great deal of work must be done continuously to reinvent and rebuild our industry for the future. Here in Washington, we are encouraged by new legislation indicating a bipartisan commitment to U.S. manufacturing that is long overdue. See below for more details on this legislation, which would bolster the long-neglected printed circuit board (PCB) sector, and how you can express your support for it.

View Story

The Government Circuit: A Robust U.S. Electronics Industry is in Everyone's Interest

04-20-2022

I’ve been saying for months that decisions made in 2022 will be critical to the future of electronics manufacturing for years to come. After years of government policy neglect, we have unprecedented opportunities to make things better and position the industry for long-term success. But we certainly cannot take this progress for granted; we have to pull together and work for it.

View Story

The Government Circuit: Ready to Tackle 2022

01-26-2022

As anticipated, it was a busy close to 2021 in Washington, and we saw resolutions on several major legislative priorities, including the annual defense authorization bill, which affects billions in future defense electronics spending. Meanwhile, negotiations on the U.S. Innovation and Competitiveness Act (USICA) remain on the back burner but could heat up in Q1. Read on for some of the recent highlights from 2021 and a look forward to 2022.

View Story
Back

2021

The Government Circuit: IPC is Looking Ahead to 2022

12-20-2021

As the new year beckons, IPC is ready to finish 2021 on a high note. The “big” news around IPC was the recent release of our comprehensive report on the advanced packaging ecosystem in North America. One of the report’s major takeaways is that North America now finds itself in a worrisome predicament: it can design the most cutting-edge electronics but cannot manufacture them. We hope you take the time to check it out, share it with your networks, and stay tuned for more “industry intelligence” reports coming your way.

View Story

The Government Circuit: How Can Government Help or Hurt You in 2022?

10-26-2021

The seasons may be changing, but IPC’s commitment to advocating for the electronics manufacturing industry remains the same.

View Story

The Government Circuit: A Summer Advocacy Update From IPC

09-01-2021

It’s been a busy summer here at IPC, with policy debates heating up across the globe. Here in Washington D.C., the U.S. Congress adjourned for its August “District Work Period,” but not before the U.S. Senate passed a major bipartisan infrastructure package, which we believe would positively affect our industry.

View Story

The Government Circuit: IPC—Which Government Policies Worry You Most?

07-14-2021

As we begin the second half of the year, it provides us all with a good opportunity to take stock of our goals, hit the refresh button if necessary, and recommit to finishing the year strong. How are you feeling about the rest of 2021?

View Story

The Government Circuit: Advocating for the Entire Electronics Supply Chain

06-16-2021

Here in Washington, we are encouraged by recent policy discussions that indicate a bipartisan commitment to U.S. manufacturing that is long overdue. European officials are also promoting a policy agenda that could be very positive for electronics. But there is still more work to be done to bolster the entire electronics ecosystem.

View Story

The Government Circuit: Supply Chain Concerns Emerge as Global Issue

05-17-2021

IPC's Chris Mitchell shares updates on the new U.S. administration's focus on manufacturing, a holistic approach to supply chain management, recovery in Europe, the latest economic trends in the industry, and much more...

View Story

The Government Circuit: Making Connections Between ‘Build Electronics Better,’ ‘Build Back Better’

03-17-2021

The new year has already spawned several positive government policy actions for the electronics industry, leaving us intrigued about the year to come. We're seeing an increase in policy debates that affect our industry, making IPC’s government relations (GR) work more critical than ever.

View Story

The Government Circuit: IPC is Ready for the Year of Advocacy Ahead

01-19-2021

As anticipated, it was a busy close to 2020 in Washington, and we saw resolutions on several major legislative priorities, including coronavirus recovery, spending bills, and the National Defense Authorization Act (NDAA). IPC was able to secure some policy victories for the electronics manufacturing industry and keep our agenda moving forward into the new year. Read on for some of the recent highlights

View Story
Back

2020

The Government Circuit: Looking Ahead to 2021

12-15-2020

Before the 116th Congress adjourns for the holidays, IPC expects to secure some policy victories for the electronics manufacturing industry and keep its policy agenda moving forward. Read on—and watch this space—to learn how it all turns out.

View Story

The Government Circuit: As 2021 Nears, What’s on IPC’s Government Policy Radar?

11-11-2020

In the United States, Election Day 2020 has come and gone, and all signs indicate that former Vice President Joe Biden is the presumptive President-elect. It’s shaping up to be a busy month here at IPC, heading into a busy new year. Chris Mitchell details some of the top issues we’re following this November.

View Story

The Government Circuit: U.S. and European Lawmakers Eyeing Changes That Would Affect Our Industry

10-14-2020

The seasons may be changing, but IPC’s commitment to advocating for the electronics manufacturing industry remains constant as we look to position our industry for success in the coming year. Chris Mitchell shares some highlights of the top issues IPC is focused on this month.

View Story

The Government Circuit: Green Regulations, the Economy, COVID-19, and ‘Decoupling’ in Focus for IPC This Fall

09-21-2020

Summer may be winding down, but autumn is shaping up to be a busy advocacy season for IPC. In this month’s column, Chris Mitchell provides an overview of the latest worldwide regulations you should be attuned to, the global economic landscape, and opportunities to make your voice heard with policymakers.

View Story

The Government Circuit: Environmental, Health, and Safety Issues Are Hot in U.S., EU, and Asia

08-19-2020

Although coronavirus, trade wars, and supply chain concerns have dominated the discussion in our industry in recent months, many important environmental, health, and safety (EHS) issues are on the agenda as well. This column provides an overview of the EHS policy landscape and what IPC is doing to advocate for the electronics manufacturing industry.

View Story

The Government Circuit: Renewed Focus on Worldwide Supply Chain Amid COVID-19

07-15-2020

One of the key takeaways from the coronavirus pandemic is that in times of crisis, sophisticated global supply chains can break down. Chris Mitchell explains how as the pandemic continues to play out, IPC is actively engaged in promoting global trade and the regionalization of supply chains.

View Story

The Government Circuit: Coping With COVID-19 and Emerging Environmental Regs

06-10-2020

Across all regions where IPC has an advocacy presence, the policy debate is still dominated by the need to beat COVID-19 and climb out of the economic crisis. IPC's Chris Mitchell explains how governments are still working through their massive pandemic-recovery plans, and it is unclear whether national economies will snap back within months or take years to recover.

View Story

The Government Circuit: Government Policy Moves Are More Important Than Ever During a Pandemic

05-06-2020

Isn’t it amazing how quickly and thoroughly the COVID-19 pandemic has changed the world? Chris Mitchell shares several of the top stories of recent weeks from an IPC government relations perspective, including issues that IPC is continuing to work on.

View Story

The Government Circuit: An IPC Roadmap to Economic Recovery

03-26-2020

As the COVID-19 pandemic exacts a growing toll, public and private actors worldwide are marshaling resources to combat the spread of the virus and save the lives of those who are critically ill. In this unprecedented crisis, Chris Mitchell explains how IPC supports a sustained and bold policy agenda to help us all weather the economic downturn resulting from sweeping restrictions on business activity.

View Story

The Government Circuit: IPC Marks Progress in Government Advocacy in 2019

01-14-2020

As we turn the calendar from 2019 to 2020, it is a natural time to take stock of the past year and look ahead to the year to come. Here are a few of the top stories of 2019 from Chris Mitchell's perspective as a government relations professional working to support the electronics manufacturing industry through public policy advocacy.

View Story
Back

2019

The Government Circuit: Europe Eyeing Changes in RoHS Environmental Regulations

12-02-2019

One of the world’s most comprehensive and restrictive environmental regulations is undergoing a comprehensive regulatory review, and IPC is actively involved in the process, coordinating industry views and advocating on behalf of the electronics manufacturing industry. Chris Mitchell gives an update on activities related to the European Commission’s Restriction of Hazardous Substances Directive (RoHS) Directive.

View Story

The Government Circuit: U.S.-China Tariff War Threatens American Jobs and Investments

11-06-2019

Fifty-five percent of companies report they are facing higher costs as a result of higher tariffs, which are affecting, on average, about one-third of the total dollar value of the products they import. Some companies say their costs have increased more than the direct costs of the tariffs due to higher administrative and operational burdens to sort it all out.

View Story

The Government Circuit: Recession Fears, Trade Wars: What Can We Do?

09-04-2019

Despite many strong economic indicators, recent news reports are filled with growing concerns about the risk of a U.S. and global recession in the next 12–24 months. Amid a prolonged trade war between the U.S. and China, and an "inversion" between long-term and short-term bond yields, a recent survey found that 74% of economists predict the next recession will hit by the end of 2021.

View Story

The Government Circuit: Trump Praises Industry on Workforce Issues, IPC Launches Grassroots Platform

08-07-2019

July was a fun, productive month for IPC on the government relations front. Most notably, IPC’s workforce development efforts were recognized at the White House in Washington and on a factory floor in Michigan. On another front, we've launched an online platform that makes it easier for our members to contact their elected officials, and we’re using it to seek more R&D funding for an important industry project.

View Story

The Government Circuit: IPC Promoting R&D on Lead-free Electronics, Streamlined Chemical Data Reporting, and More

07-04-2019

For the most part, working in government relations is like running a marathon, not a sprint. It can take weeks, months, or even years to formulate an industry consensus position, educate the relevant policymakers in legislatures and executive branch agencies, build alliances and broad support, and ultimately push a final action over the finish line. That metaphor was certainly fitting in recent weeks as IPC scored two interim wins on issues we’ve been working on for years.

View Story

The Government Circuit: Team IPC Working on North American Trade, EPA Regulations, EU Policy, and More

06-13-2019

In one of the highlights of IPC’s work every year, top executives from electronics companies from across the U.S. came together in Washington, D.C., recently to call for policies that will drive the electronics industry’s success. Attendees met with leading policymakers to discuss the U.S.-Mexico-Canada Agreement (USMCA), the electronics supply chain, EPA regulations, and workforce education.

View Story

IPC’s D.C. Focus: Chemicals Regulations, Lead-Free, Export Controls

05-07-2019

From North America to Europe, Asia, and beyond, the future of the electronics manufacturing industry is shaped in many ways by government policies. That’s why IPC maintains an active, multifaceted government relations program, including leadership and networking opportunities for member company executives.

View Story

U.S. Tax Law Boosts Growth, But Uncertainties Loom

04-17-2019

Monday, April 15 was the deadline for millions of Americans to file their income tax returns, so this is a good time to review the Tax Cuts and Jobs Act of 2017 (TCJA) as well as the current tax policy landscape and how these rules are affecting the electronics industry.

View Story
Copyright © 2023 I-Connect007 | IPC Publishing Group Inc. All rights reserved.