North American EMS Industry Down 3.1 Percent in March

IPC releases EMS industry results for March 2023

IPC announced today the March 2023 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.28.

Total North American EMS shipments in March 2023 were down 3.1 percent compared to the same month last year. Compared to the preceding month, March shipments increased 6.2 percent.

EMS bookings in March decreased 7.1 percent year-over-year and increased 9.9 percent from the previous month.

“The pattern that emerged in Fall 2022 continued into March. EMS shipments continue to show strength as supply chain challenges dissipate but order flow remains weak,” said Shawn DuBravac, IPC chief economist.

March 2023 EMS book to bill chart

Detailed Data Available

Companies that participate in IPC’s North American EMS Statistical Program have access to detailed findings on EMS sales growth by type of production and company size tier, order growth and backlogs by company size tier, vertical market growth, the EMS book-to-bill ratio, 3-month and 12-month sales outlooks, and other timely data.

Interpreting the Data

The book-to-bill ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period from companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to twelve months. A ratio of less than 1.00 indicates the reverse.

Year-on-year and year-to-date growth rates provide the most meaningful view of industry growth. Month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.

IPC’s monthly EMS industry statistics are based on data provided by a representative sample of assembly equipment manufacturers selling in the USA and Canada. IPC publishes the EMS book-to-bill ratio by the end of each month.

European Chips Act Crosses the Finish Line as IPC Looks to the Future

Apr 21, 2023
| By Sandy Gentry

By Alison James, senior director, European government relations

This week, the European Institutions reached provisional agreement on the European Chips Act, paving the way for the region’s introduction of an important framework to build out innovation in the European semiconductor ecosystem and security of supply for Europe’s industries.

The European Chips Act, proposed by the European Commission in February 2022, has been the subject of negotiation with the European Parliament and the EU Council (Member States). While this week’s agreement must still be finalized, endorsed and formally adopted by both institutions, it sets the wheels in motion for the roll-out of Europe’s own Chips Act. Formally, following adoption, the EU Council will pass an amendment for the establishment of the Chips Joint Undertaking under Horizon Europe. Both legal texts will be published at that time.

IPC welcomes the European Chips Act as an important step towards strengthening European leadership in innovation and secure and resilient supply chains. In the negotiation process, IPC strongly welcomed fresh emphasis brought by the European Parliament to strengthening European semiconductor packaging capability and enabling a more robust electronics ecosystem. Throughout the process, IPC has urged the adoption of a final package that reflects the strategic role of advanced packaging in driving semiconductor innovation and ensures needed funding is allocated accordingly (see our position on the initial draft legislation).

In an executive meeting with European Government officials organized by IPC and iMAPS on April 13th, industry leaders welcomed the imminent adoption of the Chips Act and its inclusion of packaging in scope. They discussed next steps needed to enable European leadership in back-end segments of the value chain, including IC substrate fabrication and semiconductor assembly & test. The meeting also included leading European EMS and Printed Circuit Board companies that underscored the next steps needed to support a more resilient European electronics manufacturing ecosystem “silicon-to-systems.”

A silicon-to-system strategy would enhance the region’s capabilities and capacities to package semiconductors into advanced components but also include the assembly of those components onto printed circuit boards. This entire silicon to systems ecosystem is necessary to support Europe’s digital and green transitions.

IPC applauds the dedicated work of the European institutions in their negotiation process on the Chips Act.  We remain committed to working with the EU Institutions, the industry and other key stakeholders in the Chips Act implementation, as well as the region’s broader initiatives to realign industrial policies to address vital vulnerabilities and ensure a more competitive, resilient and sustainable electronics industry. 

For more information on the European Chips Act and Industrial Strategy, contact me at AlisonJames@ipc.org.

 

 

Spring Issue of IPC Community Now Available for Download

The Spring issue of IPC Community is now available for download. This quarterly publication was created with IPC members and industry in mind! In this issue, readers will find articles, interviews, columns, graphics, surveys, IPC member benefits, and so much more.

Each issue is designed to celebrate the success between IPC and its members and how this relationship benefits the entire electronics manufacturing industry.  

What’s inside? Here are just a few of the features in this edition:

  • Industry intelligence from Shawn DuBravac regarding the impact of shipping costs this year on electronics manufacturers
  • What it means to validate to IPC-1791 and become a Trusted Supplier for the DoD
  • How a seasoned industry insider teamed up with a newcomer to shake up the standards committees
  • Mexico is on the move and IPC is making inroads with important aerospace and automotive clusters
  • How IPC is evaluating sustainability efforts within the industry, as well as the impact of PFAS chemicals and expectations for manufacturers

Download a copy.

IPC Forum: IPC Issues Call for Participation for High Reliability Forum

IPC is now accepting abstracts for the High Reliability Forum, the international conference focusing on Class 3 and safety critical electronics for mil-aero, automotive, medical, and long-life applications that are subjected to harsh use environments. The High Reliability Forum will be held October 17-19, 2023, at the Hilton Baltimore BWI Airport in Linthicum (Baltimore), Md.

IPC invites innovators and technologists to submit an abstract for a technical presentation during the conference. The IPC High Reliability Technical Forum Program Committee seeks proposals for technical presentations on the following topics:

  • High Reliable Materials: PCB Fabrication Materials, Interconnecting, Bonding, Thermal/Power Management, Conductivity/Resistivity, Use Conditions/Environment (A&D vs. Automotive vs. Medical/Implantable vs. High Perf Computing, etc.), Environmental Restrictions/Impact, Substrates for Advanced Packaging
  • Design and Fabrication for High Reliability: Materials Compatibility, Flexible Printed Boards in RF/Microwave Applications, Design for Reliability/Determining Reliability Requirements, System of Systems Architecture, Levels of Redundancy, HDI/Microvia Reliability -- Test Methods and Design Rules, Micro HDI and Substrate Technologies, First Level Interconnect Methodologies; Use of Simulation in the Design Process, Automotive/High Voltage Applications
  • Assembly for High Reliability: Next Generation Solder Alloys, Solder Paste and Coating Selection for High Reliability, Reliability of Cleaning, Testing and Coating Strategies, Assembly Materials -- Coating, Cleaning, Underfilling, Encapsulation, Effects of No-Clean Residues, Voiding in Solder Joints, 3D Package Level Reliability, Assembly for Automotive/High Voltage Applications
  • Testing for High Reliability: Fatigue Behavior and Reliability Testing for Solder Joints using Next Generation Solder Alloys, Harsh Environment Reliability and Testing, Thermal Stress Test Methods, Connector Failure Modes and Reliability, Vibration and Shock Test Methods for Predicting Reliability, HDI/Microvia Reliability, Automotive/High Voltage Applications, Heterogeneous Integration/Advanced Packaging for High Reliability
  • Issues around Quality, Standards for High Reliability: Supply Chain, Reshoring/Onshoring, Failure Modes Effects Analysis (FMEA), Reliability Assurance and Prediction Workflows, Selection of Appropriate Class of Electronics, Requirements for Specific Class of Electronics, Manufacturing Standards, Emerging Electronic Technologies

“We are thrilled to welcome attendees back to the first High Reliability Forum since 2019,” said David Bergman, IPC vice president of standards and technology. “We are eager to see the exciting new work from experts in all areas of the industry including PCB design, fabrication materials, emerging technologies, and other applications with specialized reliability requirements.”

Abstracts summarizing original and previously unpublished work must be submitted for consideration to present. Presentations should be non-commercial and describe significant results from experiments, emphasize new techniques, discuss trends of interest, and contain technical and/or appropriate test results.

Abstracts are due on Monday, June 5, 2023 and will be peer-reviewed by the Technical Program Committee. Accepted abstracts will be invited to deliver a podium presentation in person at the High Reliability Forum in Linthicum Heights, Maryland, October 17-19, 2023.  

For more information or to submit an abstract, visit www.ipc.org/event/high-reliability-forum. For questions regarding general event information, contact Julia Gumminger, IPC professional development and events manager, at JuliaGumminger@ipc.org.

For exhibit and sponsorship opportunities, contact Alicia Balonek, senior director, trade shows and events, at AliciaBalonek@ipc.org.

Helping the Electronics Manufacturing Industry Build Electronics Better

Industry professionals to meet at IPC SummerCom to develop internationally recognized standards

Hundreds of experts from around the world will discuss electronics manufacturing standards in more than 80 meetings May 13–18 at IPC SummerCom in Milwaukee.

Facilitated by representatives from OEMs, PCB manufacturers, EMS providers, design firms, and other organizations, IPC standards development committees establish benchmarks for excellence in electronics manufacturing.

According to David Bergman, IPC vice president of standards and technology, IPC has more than 300+ active multilingual standards that cover nearly every stage of the electronics development product cycle.

“IPC SummerCom is all about IPC standards, and through standards development committee meetings, everyone in the industry can engage in an exchange of ideas about current industry trends as well as the identification of new standards and updates to current ones,” said Bergman. “Used by companies of all sizes in more than 90 countries by all manufacturing sectors, IPC standards help the electronics manufacturing industry build electronics better.”

Standards development committee meetings will cover industry benchmarks in assembly and joining; assembly equipment, base materials; cleaning and coating; electronic documentation technology; electronic product data description; embedded devices; environment, health and safety; fabrication processes; flexible and rigid-flex printed boards; high speed/high frequency interconnection; management; packaged electronic components; printed board design technology, printed electronics; process control; product assurance; product reliability; rigid printed boards; terms and definitions; testing; and wearable electronics/e-textiles.

In addition to standards meetings, IPC will celebrate the accomplishments of  “IPC A-Teams” at the Golden Gnomes Award Ceremony on May 16. The awards, inspired by IPC’s fictional TechNet gnomes Clumpy and Kloumpios, recognize the outstanding and creative work of IPC A-Teams. IPC A-Teams are dedicated groups of volunteers within IPC working groups who take on a significant amount of work on behalf of their groups.

This year, IPC SummerCom will be co-located with the Electrical Wire Processing Technology Expo (EWPTE) at the Wisconsin Center. IPC SummerCom registration gives participants free access to EWPTE. For more information on standards development activities at IPC SummerCom or to register, visit www.ipc.org/event/ipc-summercom. For more information on all IPC standards development activities, visit www.ipc.org/standards.

Fabrication Technologies, Inc./IGM Solutions, Inc. Earns IPC J-STD-001 and IPC-A-610 Qualified Manufacturers Listing Requalification

IPC's Validation Services Program has awarded an IPC J-STD-001 and IPC-A-610 Qualified Manufacturers Listing (QML) requalification to Fabrication Technologies Inc./IGM Solutions, Inc. (FabTech-IGM), a vertical integrated contract manufacturer of electronic parts and high-level assembly of printed circuit boards for the gaming, heavy equipment, medical device, electronics and financial services industries, located in Libertyville, Ill.

FabTech-IGM met or exceeded the requirements for the electronics industry's Class 2, which is intended for dedicated service electronics products. As a result of successfully completing an audit, based on two of IPC's foremost standards: IPC J-STD-001, Requirements for Soldered Electrical and Electronic Assemblies and IPC-A-610, Acceptability of Electronic Assemblies, FabTech-IGM is now among a trusted source of electronics suppliers found on IPC's QML/QPL database at www.ipcvalidation.org.

“We are pleased to recognize FabTech-IGM as a member of IPC's network of trusted suppliers,” said Randy Cherry, director, IPC Validation Services. “By earning the QML, FabTech-IGM shows its commitment to delivering the highest level of quality in electronics manufacturing.”

For more information about IPC's Validation Services QPL/QML Program, visit www.ipcvalidation.org or call +1 847-597-2892.

Winners of IPC Hand Soldering Competition at InnoElectro 2023 Announced

IPC hosted a Hand Soldering Competition in Budapest, Hungary, at InnoElectro March 28-30, welcoming 42 competitors from 29 European electronics companies. Skilled contestants competed to build an assembly in accordance with IPC-A-610, Class 3 criteria, and were judged on the functionality of the assembly, compliance with the assembly process, and overall product quality. Contestants were allowed a maximum of one hour to complete the process.

Taking top honors this year were:

  • In first place for the second consecutive year, Peter Zsombok, BHE Bonn Hungary KFT, scored 538 points out of a maximum possible 558. Zsombok will compete for the World Championship title in November at productronica in Munich.
  • Second place: Viktor Czonka, Alpine Hungary, with a score of 535 out of 558.
  • Third place: Janos Szebelledi, BHE Bonn Hungary KFT, with a score of 529 out of 558.

This year’s Best Company Team trophy was presented to BHE Bonn Hungary KFT, for a combined score of 1028, achieved by team members Peter Zsombok and Janos Szebelledi.

IPC is grateful to the HSC sponsors for their generous support:

  • Gold sponsors: Weller Tools, Thales
  • Silver Sponsors: Almit, Ateliers Systems, NCAB Group, Optilia, Polygone CAO, SFM-Societe Française de Microscopie

“IPC thanks and congratulates all the participants and their companies for their interest and for taking up the hand soldering competition challenge,” said Philippe Leonard, IPC Europe director. “The competition board was very complex this year, and the contestants rose to the challenge with amazing performances. We look forward to more exciting competitions this year, ending with the World Championship at productronica in Munich.”

For more information on HSC competitions in Europe, contact Leonard at PhilippeLeonard@ipc.org.

Global Banking Crisis Signals Economic Volatility, Signs of Recession

IPC Issues March Economic Outlook Report

Economic data over the last month indicates that the global banking crisis will directly affect the ability of companies to buy new equipment, hire new employees, and expand.

“This is just the start of a wider banking crisis,” said Shawn DuBravac, IPC chief economist. “One that will get worse before it gets better. Banks will be cautious, raising lending standards, protecting capital, and creating greater liquidity buffers. Expect the coming months to remain volatile.”

The report also shows that the U.S. job market remained strong, and individuals appear to be reentering the labor market as the economy softens. In addition, the defense and space equipment segment rose 0.6% to another new all-time high. The sector is up 2.3% over the last year.

In Europe, economic growth was flat, while manufacturing production largely stabilized after eight months of contraction. Supply chains continue to improve which is easing strains on production schedules.

Additional data in the March report shows:

  • U.S. industrial production was unchanged in February but was down 0.4% including revisions to prior months and came in below consensus expectations of a 0.2% increase.
  • U.S. employment gains in the last year have been driven by firms with less than 250 employees. Tightening credit conditions are going to hit this part of the economy the hardest.
  • In the EU: Manufacturing output rose in January. Output increased 0.8% (month-on-month) and is up 1.7% over the last year. In addition, the electronics industry, which includes categories such as components, loaded boards, computers, communications equipment, and consumer electronics, rose 4.5% (month-on-month) in January. The sector is up 10.4% over the last year.
  • The U.S. job market remained strong in February, adding 311,000 new jobs even with a downward revision to payroll gains in December and January of 34,000 jobs. 

View full report.  For more information on IPC’s industry intelligence program including new reports, visit: www.ipc.org/advocacy/industry-intelligence.

 

 

Electronics Industry Comments on EPA’s Proposed Rule on PFAS

Mar 29, 2023
| By Suhani Chitalia

As part of IPC’s ongoing advocacy on behalf of the electronics industry, IPC, the Consumer Technology Association (CTA), and the Information Technology Industry Council (ITI) jointly submitted comments to the U.S. Environmental Protection Agency (EPA) on their proposed Significant New Use Rule (SNUR) for Per- and Polyfluoroalkyl Substances (PFAS) that are designated as inactive on the TSCA Inventory.

The Toxic Substances Control Act of 1976 (TSCA) – amended in 2016 by the Frank Lautenberg Chemical Safety for the 21st Century Act (LCSA) – is the primary U.S. federal law addressing the production, importation, use, and disposal of chemicals that pose risks to human health and the environment. The U.S. Environmental Protection Agency (EPA) has the authority to require and enforce compliance with it.

TSCA Section 5(a) SNURs can be used to require notice to the EPA before a chemical substance or mixture is used in new ways that might create concerns. Under the SNUR, EPA would have the authority to regulate articles, but historically it has provided exemptions based on the complexities associated with identifying and reporting substances in articles.

Today’s comment reiterated the complexities of the electronics manufacturing supply chain and the difficulties associated with extracting and compiling data on specific chemistries. Thus the three associations encouraged EPA to maintain the articles exemption; maintain the impurities exemption; and expand the byproducts exemption, and we asked EPA to specify the CAS RN and accession numbers of the 330 substances on the inactive list.

This comment ties into IPC’s larger effort to advocate for fair and reasonable reporting on behalf of the electronics industry. While reporting data and information is important and sometimes necessary for human health and the environment, it is important that it be feasible, effective, and not overly burdensome to industry.

More information on IPC’s advocacy on TSCA can be found on our website.

 

 

IPC Welcomes U.S. Presidential Determination Prioritizing Domestic Development of Printed Circuit Boards and IC Substrates

IPC, the global association representing the electronics manufacturing industry, welcomes the action of U.S. President Joe Biden today in issuing a “presidential determination” that prioritizes the domestic development of printed circuit boards (PCBs) and advanced packaging, including IC substrates, under Title III of the Defense Production Act (DPA).

IPC, along with partners including the U.S. Partnership for Assured Electronics (USPAE) and the PCB Association of America (PCBAA), has been calling on President Biden to address urgent industrial base vulnerabilities and deliver on the promise of the CHIPS Act through a “silicon-to-systems” innovation strategy, which today’s determination will help achieve.

IPC President and CEO John Mitchell said, “Increasing domestic chips production without bolstering the manufacture of cutting-edge PCBs and IC substrates risks lengthening the semiconductor supply chain, because many of the chips made in California or Ohio will still have to be sent outside of the United States for packaging and assembly into finished products.

“The erosion of U.S. PCB capabilities and capacity has compromised national and economic security, as the U.S. share of global PCB production has fallen from 30% to 4%, making the nation heavily reliant on a global supply chain that is itself in turmoil,” Mitchell added. “Today’s presidential determination is a key step toward moving beyond a silicon-only mindset and rebuilding the wider U.S. electronics manufacturing industry. We look forward to working with Congress and the Executive Branch to ensure this effort is fully funded and implemented.”

On Friday, President Biden announced an additional $50 million in Defense Production Act funding for U.S. and Canadian companies to invest in advanced packaging for semiconductors and printed circuit boards. On Feb. 23, Commerce Secretary Gina Raimondo said the U.S. will develop multiple high-volume advanced packaging facilities and become a global leader in chip packaging technologies.

The Biden administration’s year-long assessment of the ICT supply chain, released in February 2022, highlighted the importance of PCB fabrication and assembly in electronics manufacturing and recommended that government programs like Title III be used to bolster the strength of U.S. PCB manufacturers. The issuance of this presidential determination is a crucial first step towards securing the domestic supply of these critical electronic components.

IPC looks forward to continuing to work with the Biden administration, the U.S. Congress, and industry partners to support long-term policy and funding to rebuild the entire ecosystem that sustains innovative, resilient, and secure electronics manufacturing.

For more information, visit www.IPC.org.

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