Sharp Decline in European Electronics Manufacturing Jeopardizes Strategic EU Priorities

Key segments of EU electronics manufacturing industry set to decline undermining Europe’s security, industrial resiliency, and global competitiveness

A new report by IPC, reveals Europe’s growing dependency on other regions for electronics manufacturing in critical and strategic sectors including aerospace and defence. Despite the adoption of the European Chips Act, the Securing EU’s Electronics Ecosystem report finds the EU’s market share in critical electronics components beyond chips, including printed circuit boards (PCBs), electronic manufacturing services (EMS) and advanced packaging, will decline to 15 percent by 2035.

The PCB industry segment has faced significant erosion over the last two decades. Revitalizing and growing electronics manufacturing – beyond chips – is essential to building a secure and robust European electronics ecosystem. A “silicon to systems” approach is necessary to support ongoing EU technological leadership and meet strategic goals. 

“An innovative and resilient European electronics manufacturing industry is vital to ensuring the region’s access to defence and aerospace systems, medical technologies, and communications infrastructure. The growing strategic dependencies highlighted in the report are alarming as they undermine Europe’s ability to achieve key strategic priorities from a strengthening of the defense industrial base to the green and digital transitions,” says Sanjay Huprikar, president of Europe and South Asia Operations, IPC.

The report assesses how reliant Europe is on non-EU manufacturing across eight strategic sectors including aerospace/defence, automation, mobility, healthcare, and renewable energy. Highlights of the report include:

  • Across the key sectors, EU electronics production is expected to lag behind global trends and decline from 16.5% global market share today to 15% by 2035.
  • Those numbers become starker when looking at subsectors of the European electronics manufacturing industry, such as PCB production (1.7% global market share by 2035), advanced packaging (1.4%) and IC substrate production (0.7%) respectively.
  • Europe’s share of electronics manufacturing has fallen significantly in the last two decades despite demand for electronics soaring.
  • Global PCB production has more than doubled since 2000 with European demand today at an estimated EUR 7.87 billion.
  • Despite soaring demand for PCBs, European PCB production is projected to satisfy only 11 percent of European demand for PCBs (down from 17.5% today).

The study findings echo growing calls for strategic investments and comprehensive policies to enhance the EU’s competitiveness including the 17 and 18 April European Council conclusions stating that Europe “needs to reduce its strategic dependencies in sensitive sectors– energy, critical raw materials, semi-conductors, health, digital, food and critical technologies – and in other sectors such as chemicals, biotechnology and space.”

In response to the study, the European electronics manufacturing industry calls for an “Electronics Manufacturing Strategy” under the 2024-2029 European Commission mandate to help the EU better withstand global disruptions and maintain a competitive edge. An industry “Call-to-Action” shared today includes support from leading European electronics manufacturers and Trade Associations raising awareness for this situation.

“Any new industrial policy supporting competitiveness needs to embrace electronics manufacturing as a key enabler for innovation and resiliency in strategically important sectors, like aerospace and defence. A dedicated strategy, including EU targets for electronics manufacturing, will help Europe compete with global competitors” said Alison James, IPC senior director, European government relations.

IPC is hosting a meeting today with representatives of the European Commission and industry experts to review the study and call-to-action. This event will provide a forum for discussion of the situation and the need for a more ambitious and focused strategy to revitalize European manufacturing.

View full Securing Europe’s Electronics Ecosystem report.   

View Call-to-Action for a European Silicon to Systems Electronics Manufacturing Strategy on behalf of industry members and associations.

 

IPC Issues Call for Participation for IPC APEX EXPO 2025

IPC is now accepting abstracts for technical papers with presentations, posters, and professional development courses at IPC APEX EXPO 2025. The technical conference will be held March 18-20 and professional development courses will take place March 16-17 and 20, 2025 at the Anaheim Convention Center in Anaheim, Calif.

The industry’s premier conference and exhibition for the electronics industry, IPC APEX EXPO provides presenters and their companies with a notable and cost-effective opportunity to promote their expertise and gain visibility with key engineers, managers, and executives from all segments of the industry worldwide. Topics for technical conference papers, technical posters and professional development courses include: advanced packaging/components, assembly and test processes, design, electronic assembly materials, emerging technologies, Factory of the Future, HDI, µHDI and substrates, PCB fabrication and materials, power electronics, quality and reliability, and sustainability for electronics.

To recognize exceptional achievement, the IPC Technical Program Committee (TPC) will select the top qualifying papers and one top poster for awards. Awards include “Best of Conference,” “NextGen Best Paper,” “Best Student Research Paper,” and “Best Technical Poster.” 

For technical conference paper presentations and posters, IPC seeks abstracts that describe significant results from research experiments, highlight new techniques or materials, and/or discuss cutting-edge trends and challenges facing the electronics manufacturing industry. All submissions must be non-commercial, summarizing original and previously unpublished work covering case histories, research, and discoveries. Conference speakers and presenters are entitled to a free one-day conference pass for the day of their presentations and are eligible for discounted rates if they wish to register themselves for the full conference. Papers will be published in a proceedings document, and both paper and poster presentations will be delivered in person at IPC APEX EXPO 2025 in Anaheim. Deadline for technical paper abstract submissions is October 4, 2024.                                           

All posters will be displayed on the exhibit floor, with dedicated poster networking sessions for increased visibility. Authors of posters selected for the conference will receive further guidance on formatting, printing, and displaying posters. The deadline for technical poster abstracts is December 2, 2024.

For professional development courses, IPC seeks abstracts for three-hour sessions of live instruction covering all aspects of electronics manufacturing. Courses can be offered as one 3-hour session or two 3-hour sessions (offered as Part 1 & Part 2 for a total of 6 hours). Honoraria and travel expense stipends are offered to professional development instructors. Professional development abstracts are due September 6, 2024.

To submit an abstract, visit www.ipcapexexpo.org/event-info/call-participation. For more information on IPC APEX EXPO 2025, visit www.ipcapexexpo.org.

IPC Adds Nimonik as New Global Standards Subscription Distributor

Effective June 1, 2024, IPC entered into a distribution agreement with Nimonik, a regulatory and standards compliance software company. Nimonik is now able to offer IPC standards products in hard-copy and electronic media format through their online retail store or via an annual subscription.

IPC standards are accepted worldwide as the key manufacturing standards for the printed board and electronics manufacturing industries and they are associated with nearly every stage of the electronic product development cycle. Today, IPC's collection of industry standards and guidelines exceeds 300 active multilingual standards and is used by more than 3,600 companies worldwide.

“Nimonik is honoured to announce our partnership with IPC, a global industry association dedicated to enabling reliable, high-quality electronics by developing the trusted standards that drive the global electronics industry's success,” said Jonathan Brun, Nimonik CEO. “Now, Nimonik customers will have the opportunity to access IPC subscriptions, complementing our existing offerings and providing a complete package for our users."

“IPC is thrilled to add Nimonik to our list of global standards subscription distributors,” said John W. Mitchell, IPC president and CEO. “Companies now have expanded access to IPC standards documents with the addition of this organization; IPC members can purchase a subscription to IPC standards via a well-established online platform.”

To learn more about Nimonik’s , visit www.nimonik.com or their online retail store at https://standards.nimonik.com/.

IPC Midwest EMS Leadership Roundtable: Leveling Up Your Business

Date
-

July 9, 2024 | 4:00 pm – 8:00 pm
Location: Arc-Tronics, Inc.
1150 Pagni Dr
Elk Grove Village, IL 60007
www.arc-tronics.com

Hosted by: Arc-Tronics, Inc.

Join fellow EMS leaders in the region to share industry pain points and solutions. Our focus for this meeting is how companies profitably reach the next level of revenue. Following a presentation on the current EMS market and revenue tiers in the industry, participants will discuss how to reach the next level and grow their business. The discussion will pull from direct experience, questions, and ideas. From there, the conversation goes where you, the leaders, take it. Every roundtable ends with unique takeaways. 

Complimentary registration includes:

  • Peer-led roundtable discussions
  • Updates on relevant EMS industry studies/reports
  • Recap of business resources available
  • Reception and dinner
  • Peer networking, partnership building
  • Facility tour (no photography allowed)

Hosted with the support and cooperation of Arc-Tronics, Inc.
Street parking is available, limited parking is available behind the building.

Have questions? Email Mark Wolfe at MarkWolfe@ipc.org.

Arc-Tronics, Inc.

1150 Pagni Dr.
Elk Grove Village, IL 60007
United States

Arc-Tronics, Inc.

Arc-Tronics, Inc.
1150 Pagni Dr.
Elk Grove Village, IL 60007
United States

Chemicals Management for Electronics - USA 2024

Date
-

IPC will be in Boston, MA on June 24th and 25th to keep on top of chemical management and its implication for achieving sustainability initiatives. IPC is proud to be a sponsor for this event and IPC members receive a 15% discount on registration. This event is hybrid – so we hope to see you there in person or on screen.

Hyatt Regency Boston Harbor

101 Harborside Drive
Boston, MA 02128
United States

Hyatt Regency Boston Harbor

Hyatt Regency Boston Harbor
101 Harborside Drive
Boston, MA 02128
United States

IPC's Collaborative Approach to Advocating for Sustainable Electronics

Jun 03, 2024
| By Kelly Scanlon

The call for sustainability in the electronics industry reverberates globally, marking a pivotal moment in our history. With a commitment to fostering change, IPC is actively engaged in empowering manufacturers to navigate this transformative journey. Through industry standards, workforce training, certification programs, and advocacy efforts, IPC champions a collaborative approach to address sustainability challenges head-on. As Dr. John W. Mitchell, president and CEO of IPC, underscores in the latest issue of PCB007 Magazine, the industry's future hinges on concerted efforts to build electronics sustainably, embracing conscientious lifecycle management and resource efficiency. IPC will continue to facilitate dialogue and innovation to shape a more sustainable future for all. Read more in PCB007 Magazine. IPC Contact: Kelly Scanlon

IPC Applauds White House’s Microelectronics Strategy

Jun 03, 2024

Key Summary

• The White House released a National Strategy on Microelectronics Research aligned with the CHIPS Act
• The strategy outlines ambitious U.S. microelectronics objectives for the next five years
• IPC welcomed the focus on advanced packaging, test, and assembly
• The strategy highlights the need for a supportive ecosystem including materials, substrates, and interconnects
• IPC’s 2021 advanced packaging report was cited as a guiding reference
• IPC plans to use the strategy to reinforce its silicon to systems advocacy

In March, the White House Office of Science and Technology Policy (OSTP) unveiled a strategy aimed at catalyzing microelectronics innovation in the United States. Aligned with the bipartisan CHIPS Act, the National Strategy on Microelectronics Research sets forth ambitious objectives for the coming five years. IPC was pleased to see advanced packaging, test, and assembly mentioned, and the emphasis on fostering a supportive ecosystem including materials, substrates, and interconnect technology was on target. IPC’s 2021 report on advanced packaging was also cited as a guiding reference. You can be sure IPC will refer to this strategy often as our advocacy continues, emphasizing a “silicon-to-systems” approach. IPC Contact:  Rich Cappetto

Q:
What is the purpose of the National Strategy on Microelectronics Research?
A:

It aims to accelerate U.S. microelectronics innovation over the next five years in alignment with the CHIPS Act.
 

Q:
Why is IPC supportive of the new strategy?
A:

IPC welcomed the inclusion of advanced packaging, test, and assembly, which are critical components of a strong microelectronics ecosystem.
 

Q:
What parts of the ecosystem does the strategy emphasize?
A:

It stresses the importance of materials, substrates, and interconnect technologies to support innovation and manufacturing.
 

Q:
How is IPC connected to the strategy’s development?
A:

OSTP cited IPC’s 2021 advanced packaging report as a reference, reflecting IPC’s contributions to industry guidance.
 

Q:
How will IPC use the strategy going forward?
A:

IPC will rely on it in ongoing advocacy to promote a silicon to systems approach across the electronics manufacturing landscape.

EU Chips Research Funding Bridges Lab-to-Fab Gap

Jun 03, 2024

Key Summary

• EU allocates first Chips Act funding to pilot lines supporting lab-to-fab semiconductor innovation
• Imec, CEA-Leti and Fraunhofer selected to lead pilot line development
• Pilot lines enable faster commercialization of next-generation semiconductor technologies
• One pilot line dedicated to advanced heterogeneous systems integration
• Initiative strengthens Europe’s long-term competitiveness in semiconductor research and production

 

In early April, the European Commission took another step in advancing semiconductor technology by allocating the first tranche of funding for “pilot lines” under the European Chips Act. Managed by the Chips Joint Undertaking, which oversees the EU's investment in chips research, this allocation marks a pivotal moment in the region's technological advancement. Following a rigorous selection process, Imec, CEA-Leti, and Fraunhofer have emerged as key players among the Research and Technology Organizations (RTOs) entrusted with running these pilot lines. These lines will serve as crucial bridges “from lab to fab,” facilitating the transition of cutting-edge technologies from conception to commercialization. One of the pilot lines will specifically focus on advanced heterogeneous systems integration, highlighting the EU's commitment to fostering innovation across diverse domains within the semiconductor industry. Read the press release from Chips Joint Undertaking. IPC Contact: Alison James.

Q:
What is the purpose of the EU’s pilot line funding?
A:

The pilot lines are meant to bridge the gap between research breakthroughs and commercial semiconductor production, helping new technologies move from early development into practical manufacturing.
 

Q:
Which organizations were selected to operate the pilot lines?
A:

Imec, CEA-Leti, and Fraunhofer were chosen through a competitive evaluation process and will lead several pilot lines across different areas of semiconductor innovation.
 

Q:
Why is heterogeneous systems integration a focus area?
A:

Heterogeneous integration enables combining multiple technologies within a single package, improving performance and efficiency. This area is crucial for advanced chips used in AI, automotive and high-performance computing.
 

Q:
How does this initiative support the EU Chips Act?
A:

The funding directly contributes to the Chips Act goal of strengthening Europe’s semiconductor ecosystem by expanding R&D capacity and improving pathways to manufacturing.
 

Q:
What does this mean for Europe’s semiconductor competitiveness?
A:

By investing early in commercialization infrastructure, the EU aims to reduce reliance on foreign production, accelerate innovation and strengthen its role in the global semiconductor supply chain.

IPC Evaluating Potential Impact of New U.S. EPA Rule on Methylene Chloride

Jun 03, 2024

Key Summary

• EPA finalized a TSCA risk management rule banning most commercial, industrial, and all consumer uses of methylene chloride
• Some applications may continue but must follow strict Workplace Chemical Protection Program requirements
• Electronics manufacturing is directly affected due to restrictions on equipment, appliance, and component manufacturing uses
• EPA will allow time-limited exemptions only for critical uses with no feasible safer alternatives
• IPC is evaluating industry impacts and directing members to EPA’s June 4 webinar for implementation details

The U.S. EPA recently finalized a risk management rule for methylene chloride under the Toxic Substances Control Act (TSCA). The rule seeks to ban all consumer and most commercial and industrial uses of methylene chloride, including uses in electrical equipment, appliance, and component manufacturing. The applications that EPA is allowing to continue will be subject to new mandates under a Workplace Chemical Protection Program. IPC is currently working to understand the potential impacts of this rule on the electronics manufacturing industry. To provide an overview of the EPA’s final regulatory action and implementation timeframes, the EPA is hosting a webinar on Tuesday, June 4, 2024, at 1:00 PM EDT. IPC members are encouraged to read the final rule and register for the webinar to learn more about this important change. IPC Contact: Kelly Scanlon.

Q:
What does the new EPA rule do?
A:

It bans all consumer uses and most commercial and industrial uses of methylene chloride while imposing new safety mandates on any uses that remain allowed.
 

Q:
Why is this rule important to electronics manufacturers?
A:

Because EPA’s restrictions apply to uses in electrical equipment, appliance, and component manufacturing, which may disrupt existing processes.
 

Q:
Will any methylene chloride uses continue under the rule?
A:

Yes, but only under strict Workplace Chemical Protection Program requirements or through limited exemptions for essential uses without viable alternatives.
 

Q:
What is the purpose of the EPA webinar on June 4?
A:

To explain the final rule, timelines, remaining allowed uses, and employer obligations under the new regulatory framework.
 

Q:
How is IPC supporting its members?
A:

IPC is reviewing the rule’s implications for electronics manufacturing and encouraging members to read the final rule and attend the EPA webinar.

James Will to Lead USPAE as New Executive Director

Effective May 28, 2024, James Will joined the U.S. Partnership for Assured Electronics (USPAE) as the association’s new executive director. USPAE is an IPC subsidiary that focuses on partnership with the U.S. Government to support a more robust defense electronics industrial base. Over its short history, USPAE has steered more than $30 million to industry for high priority projects.

As executive director of USPAE, Will is responsible for growing the organization to help ensure the U.S. Government has access to trusted, secure, and resilient electronics supply chains. One of the organization’s signature programs is the Defense Business Accelerator (DBX), which aims to revolutionize how the Department of Defense (DOD) drives dual-use technology development by harnessing the size and speed of the commercial market to accelerate the growth of a resilient dual-use electronics ecosystem.

 An engineer by training, Will comes to USPAE with a strong technical and operational background in the electronics industry and is active in industry organizations, including the National Defense Industrial Association (NDIA) and International Microelectronics Assembly and Packaging Society (iMAPS). His background includes leading and supporting enterprise A&D programs, from foundry to packaged and qualified high-reliability components. As a contractor to the Department of Energy National Nuclear Security Administration, he supported trusted foundry, semiconductor products and components, and assurance interests. Will, most recently, led aerospace and defense business development for SkyWater Technology Foundry. His additional commercial experience includes roles at Motorola and Infineon, from engineer to engineering management, including involvement in a 300mm fab startup.  

“I am excited to build USPAE’s role as a trusted third party that connects industry and U.S. Government stakeholders to promote an assured electronics supply chain,” said Will.  “Strengthening public-private sector collaboration is critical to both U.S. national security and economic growth. I am honored to leverage my experience developing solutions for the aerospace and defense industries to further USPAE’s mission of building a robust domestic ecosystem for electronics manufacturing.”

“With Jim’s extensive background in driving innovation and adopting solutions throughout the electronics supply chain, he is uniquely qualified in growing and positioning USPAE to help ensure the U.S. Government has access to trusted, secure, and resilient electronics,” said John Mitchell, USPAE Chairman of the Board. “Jim is well-respected in the defense manufacturing community, and we’re thrilled to have him at the helm of USPAE.”

For more information on USPAE, visit www.USPAE.org or send inquiries to info@uspae.org.

Subscribe to