IPC Encourages “Holistic Approach” to Electronics Supply Chains
Key Summary
• IPC urges the U.S. Government to support the full electronics ecosystem, not only semiconductor manufacturing
• U.S. competitiveness depends on strengthening PCB and assembly sectors alongside chip production
• U.S. electronics manufacturing has weakened despite strong design leadership
• Broader federal investment is needed to rebuild a resilient, secure electronics supply chain
• A holistic policy approach is essential to maximize the impact of semiconductor-focused initiatives
The U.S. Government should increase its support of semiconductor manufacturing but also of the entire electronics ecosystem if it wants the United States to remain globally competitive, according to comments submitted this week by IPC and the U.S. Partnership for Assured Electronics (USPAE) to the U.S. Department of Commerce.
IPC and USPAE support U.S. President Joe Biden’s Executive Order to conduct a 100-day review of the semiconductor supply chain. However, “Semiconductor fabrication is just one segment in a sophisticated, global supply chain for electronics, and all segments of the industry must be strong for the entire ecosystem to thrive,” the comments said.
In the document, IPC and USPAE make five main points:
- First, U.S. Government support of semiconductor manufacturing and advanced packaging is a vital U.S. strategic interest.
- Second, the assembly and printed circuit board industries are a critical part of the semiconductor supply chain.
- Third, U.S. electronics manufacturing has atrophied even as U.S. leadership in design has remained strong.
- Fourth, the United States has an important role to play in cultivating an environment in which electronics manufacturing can thrive.
- Finally, investments in electronics manufacturing broadly defined are essential to leveraging the significant investments the United States is making in the semiconductor industry.
“The failure of the United States to appreciate the strategic significance of electronics manufacturing has undermined the resiliency, competitiveness, and security of the U.S. electronics supply chain,” the comments conclude. “Competing globally in the years ahead will require the U.S. Government to adopt a more holistic approach to measuring the health of the electronics manufacturing ecosystem and appreciating the strong connection between the semiconductor supply chain and the wider PCB and assembly industries.”
Please let IPC know if you have any questions or comments on this issue.
IPC emphasizes that semiconductors are only one part of a larger ecosystem. Without strong PCB and assembly sectors, U.S. investments in chip production cannot achieve full impact or support long-term competitiveness.
PCBs and electronics assembly are essential steps in turning chips into functioning products. Weakness in these areas creates vulnerabilities that affect the entire electronics supply chain.
IPC notes that U.S. manufacturing capacity has atrophied over time, even though the country remains strong in design. This imbalance threatens supply chain resiliency and national security.
IPC urges policymakers to create conditions that enable electronics manufacturing to grow, including strategic investment, supportive policies, and attention to all supply chain segments.
Investing across the manufacturing ecosystem ensures that semiconductor advancements are supported by domestic capabilities in packaging, PCBs, and assembly, allowing the U.S. to compete more effectively globally.