The Government Circuit: IPC is Looking Ahead to 2022

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 report1 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. 

As we look toward the new year, here are some of the top issues we are engaged in, as well as some opportunities for you to get involved and make your voice heard. Please reach out to your IPC Government Relations (GR) team to get involved or ask any questions about IPC’s advocacy efforts. We are here to help you. 

IPC Reports Calls for U.S. Government Investment in Advanced Packaging and PCBs
If the U.S. government wants to achieve greater innovation, resiliency, and security in the semiconductor supply chain, its investments in semiconductors must be paired with robust, multibillion-dollar investments in advanced packaging of chips and especially in advanced IC-substrates. Those were among the key findings of a new IPC report, which made 28 recommendations to address the gaps in industry capabilities and capacity in North America. 

The report’s release comes amid ongoing U.S. government (USG) support for beleaguered chip manufacturers. U.S. Commerce Secretary Gina Raimondo recently called for increased funding of semiconductors2 and urged immediate passage of the CHIPS Act in the U.S. House following its June passage in the U.S. Senate. IPC supports the CHIPS Act, but without investment in other areas in the electronics ecosystem, the United States will be unable to manufacture the cutting-edge electronics it designs. IPC is increasing its government advocacy and industry leadership on these issues, and we will continue to make this case to policymakers. 

And in continuing our mantra of “It’s not just chips,” this month we released an industry report by IPC Thought Leadership Program member Joe O’Neil documenting longstanding gaps in the PCB sector and why PCBs deserve much more supportive USG policy. 

The report suggests that the PCB sector needs support akin to the major investments being planned in domestic semiconductor fabrication. The numbers show a cautionary tale. Since 2000, the U.S. share of global PCB production has fallen from over 30% to just 4%, with China now dominating the sub-sector at 50%. This means a loss of access to China’s PCB production would cripple U.S. manufacturing—failure to address this disparity could be devasting. 

Over the past year, IPC has continually made the case to policymakers that PCBs must be considered a “technology focus area” in any investment made in U.S. technological resilience, and we will continue to beat this drum in 2022. 

Current Conditions for the Electronics Supply Chain Remain Challenging
Last week, IPC released new reports3 on the latest sentiment of the global electronics manufacturing supply chain and the global economic outlook. The two reports indicated that many electronics manufacturers have continued to struggle with material and labor costs, as well as inventory and transportation constraints. 

According to IPC’s latest Global Sentiment Survey, price increases within our industry have persisted, with nine in 10 electronics manufacturers reporting rising materials costs and nearly three-fourths reporting rising labor costs. Workforce issues also continued to hamper the industry, with respondents reporting that the ease of recruiting skilled talent had declined in North America. These numbers highlighted what remains a challenging environment for electronics as profit margins shrink, labor costs rise, and supply chain disruptions remain. 

However, there might be some cause for optimism. Despite uncertainties now, supply chain disruptions have resulted in unfilled pent-up demand that could signal growth into the first half of 2022, which could be a historically strong year. But the trajectory of the economy will closely follow the trajectory of the pandemic, and the onset of the Omicron variant could pose a significant threat to the global economic recovery. For more on what might lie ahead, be sure to check out IPC Chief Economist Shawn DuBravac’s Monthly Economic Outlook Report. 

Stay tuned for next month’s reports, and please reach out if you have any questions. 

DoD Updates to CMMC Will Benefits SMEs
In a June IPC report, nearly a quarter (24%) of electronic manufacturers said the costs and burdens of compliance with the Cybersecurity Maturity Model Certification (CMMC) may force them out of the U.S. Department of Defense’s (DoD) supply chain. We are pleased to report positive movement on this issue, and electronics manufacturers will want to take note of the updates. 

On November 4, the DoD unveiled a much-anticipated update to (CMMC)—called CMMC 2.0—which aims to minimize compliance barriers by reducing costs, particularly for small businesses. CMMC 2.0 also seeks to clarify and align cybersecurity requirements to other federal requirements and commonly accepted standards. Given the many concerns that were raised about CMMC 1.0, these common-sense changes are a big improvement. Meanwhile, recent reporting has signaled that the DoD is also considering offering financial or certification incentives to get contractors to reach CMMC compliance before CMMC 2.0 goes live. We will update you as the DoD’s plans finalize, and you can read more about what CMMC 2.0 means for our industry in an IPC blog. 

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

There are two active opportunities regarding possible restrictions on Bisphenol A (BPA) and bisphenols of similar concern, which are found in epoxy resins and have utility in electronics. Feedback is due December 22 on a proposed restriction of these chemicals in the European Union. This call for information allows our industry an opportunity to share updated information on uses and alternatives in the downstream uses in polymers and other chemicals. 

Feedback is also due March 16, 2022, on a Canadian request for information about manufacturers and importers of bisphenols and its uses. If bisphenols are essential to your company’s electronics-related manufacturing processes or electronics products, your insight could be critical. Let IPC’s environment and health expert Kelly Scanlon know if there is any way we can assist.  

Regulators Ramp up Activity at EPA
Here in the United States, the U.S. Environmental Protection Agency (EPA) has remained active, and we are pleased to see that they have been receptive to our concerns. 

After considering input from IPC and other stakeholders, the EPA recently announced a proposed rule to further extend compliance deadlines on the final risk-management rule for phenol, isopropylated phosphate (3:1)—PIP (3:1)—a chemical substance used as a flame retardant and plasticizer in electronics. The new compliance deadline would be October 31, 2024, more than three years beyond the original deadline. 

The EPA will examine new requests for extensions beyond the 2024 date by evaluating documentation to support specific uses of PIP (3:1) in articles. IPC, alongside CTA and ITI, has organized a list of documentation that will be useful to prepare a response to the EPA. We do not plan to oppose the newly proposed extension, but we will request to EPA that it be based on a “manufactured by” compliance date. Please check out our blog to read more on this issue. 

Meanwhile, one issue that the EPA has grappled with throughout 2021 was the regulation of per- and polyfluoroalkyl substances (PFAS), and we expect this trend to continue in 2022. Most recently, the EPA released a strategic roadmap on how it intends to regulate the chemical by 2023. The roadmap signaled that companies should be prepared to provide data and information about the usage of PFAS, which has uses in electronics manufacturing, in their products and processes. 

IPC also recently submitted comments to the EPA on a separate proposed rule that would require all manufacturers and importers of PFAS to report information regarding uses of thousands of PFAS. Check out this IPC blog for our full comments. We expect to remain engaged on PFAS regulation issues for the foreseeable future, and we will let you know how to stay involved as well. 

Let Us Know How Government Can Help or Hurt You in 2022?
As we look toward 2022 and plan our GR activities, we want to know how the IPC Government Relations team can best advocate for you. 

What are some of the key challenges you are facing both now and in the future? Please click here to answer a quick, five-question survey, including one open-ended question where you can write anything from a few phrases to a 100-word story. Your responses will help illustrate the challenges facing our industry as we meet and engage with policymakers — your stories hold weight. 

Although 2021 was a difficult year for many of us, we look forward to continuing to work with IPC members and policymakers to advance policies that promote increased innovation, investment, and growth in electronics over the coming decades. 

See you next year! 

References

  1. “An Analysis of the North American Semiconductor and Advanced Packaging Ecosystem: Rebuilding U.S. Capabilities for the 21st Century,” an IPC Summary Report, November 2021.
  2. “Raimondo Links Chips Act to Jobs, Urges Quick House Approval,” Bloomberg News, Nov. 29, 2021.
  3. “The Current Sentiment of the Global Electronics Manufacturing Supply Chain: Monitoring the Pulse of the Global Electronics Industry,” IPC, December 2021.

 

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

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 © 2022 I-Connect007. All rights reserved.