IPC Advocates for Transatlantic Cooperation on Resilient Supply Chains

By Alison James, IPC Senior Director, Government Relations, Europe

Key Summary

• IPC urged EU and U.S. policymakers to strengthen supply chain resiliency through coordinated transatlantic action
• The advocacy emphasized a Silicon-to-System approach that expands investment beyond chips to the full electronics manufacturing ecosystem
• IPC recommended trusted supplier programs, joint R&D, and advanced packaging investments as priorities for the EU-U.S. Trade and Technology Council
• Both regions are developing “Chips Acts,” but IPC warned that semiconductor progress requires parallel support for PCB fabrication, assembly, and packaging
• IPC stressed that future competitiveness depends on Factory of the Future transitions and strong international standards

IPC recently made the case for a resilient electronics manufacturing ecosystem and further investments in advanced packaging at the inaugural meeting of the European Commission’s consultation on secure supply chains.

The consultation took place in the context of the EU-U.S. Trade and Technology Council (TTC), which was launched last September to foster transatlantic collaboration on critical issues like technological innovation, trade, supply chain resiliency, and economic issues. A second high-level meeting of the TTC is planned for Spring 2022. The TTC has also identified strengthening the semiconductor supply chain as a priority area amid the ongoing chip shortage, and government investments are being planned via “Chips Acts” on both sides of the Atlantic. 

IPC supports investments to stem the chip shortage, but if the EU and U.S. governments want to achieve greater innovation, resiliency, and security, they must also build up the entire electronics manufacturing ecosystem. This cannot be done alone; addressing capability and capacity gaps must be a transatlantic priority. IPC calls on the TTC to recognize the strategic importance of robust electronics manufacturing supply chains and to take a “Silicon-to-System” approach to strengthening the industry.

To achieve this, IPC recommends:

• A mechanism for regular analysis of the global electronics supply chain with special focus on strengthening transatlantic supply chain resiliency;
• Development of transatlantic trusted supplier programs that promote sourcing of electronics for sensitive technologies from European and U.S. manufacturers that demonstrate a commitment to high security and quality standards;
• Greater opportunities for joint research and development with a focus on segments of the electronics manufacturing industry that have highly constrained resources for research; and
• Promoting EU-U.S. partnerships through government funding to strengthen semiconductor advanced packaging capabilities.

IPC further calls for the European Union and the United States Government to accelerate transitions to Factories of the Future and to highlight the role of international, industry-led standards in enabling closer transatlantic industry collaboration.

IPC will continue to engage with policymakers on both sides of the Atlantic and will continue to advocate for needed investments across the electronics manufacturing ecosystem.