How Can Government Help or Hurt You in 2023?

IPC Invites You to Speak Up

Jan 12, 2023

Key Summary

• IPC is surveying the industry to identify which government policies most concern electronics manufacturers
• Trade, regulation, environment, supply chain, and workforce policies are major areas where government can help or hinder companies
• IPC is advocating for investment in advanced packaging and the broader semiconductor ecosystem under the CHIPS Act
• Europe is advancing major policy changes through the CSRD and EU Chips Act that will affect reporting and competitiveness
• IPC urges industry members to engage in advocacy, participate in grassroots efforts, and communicate with policymakers

As a member of the electronics manufacturing industry, it's important for you to stay informed about the government policies that impact your business and your industry. With that in mind, we want to know: which government policies worry you most? How can government help or hurt your company in the next few years?

To help us better understand your concerns, we've created a short, five-question survey. It will only take a few minutes to complete, and your answers will help us shape IPC's advocacy efforts in 2023.

So, which issues are top of mind for you? Here are a few examples of the types of policies that might be worrying you:

Trade policies: Are you concerned about tariffs or other trade barriers that could impact your business?
Regulation: Are you worried about the burden of regulations on your business? Do you feel like the rules and standards you have to follow are fair and reasonable?
Environmental issues: Do you worry about the impact of your business on the environment, and/or the government's efforts to address these issues?
Supply chain: IPC expects that volatility and uncertainty will continue to affect the electronics supply chain in the months ahead. Will your business be affected?
Workforce issues: Are you concerned about the government's labor policies and their impact on your business? Do you worry about issues like workplace safety?
Other: Is there something else that's worrying you and that you'd like to share?

A Preview of IPC's 2023 Advocacy

Here is a brief overview of some of the key issues we're working on today and how you can be involved in advocating for our industry in 2023.

In November, IPC released a report that highlighted how advanced packaging is a key driver for microelectronics innovation and outlined clear steps governments can take to bolster advanced packaging capabilities. Advanced packaging capabilities in the United States and Europe remain under-supported, but both regions are now developing and funding strategies to bolster this part of the semiconductor ecosystem. The report showed that:

94% of electronics industry leaders believe that improving the performance of semiconductors is increasingly reliant on advanced packaging.
84% believe government initiatives to bolster the semiconductor supply chain require significant investment in advanced packaging capabilities.

Another key issue that we're closely watching is the implementation of the CHIPS Act. Most recently, IPC outlined how electronics manufacturing must play a critical role in supporting the growth of the U.S. semiconductor industry in comments to the U.S. Department of Commerce on how to maximize the impact of the CHIPS Incentives Program. Specifically, IPC called for investment in:

Avanced packaging ecosystems (including IC-substrates and package assembly and test);
Supply chain partnerships;
High-density interconnects; and
Industry-recognized workforce programs

In December, IPC also helped facilitate a meeting between top Congressional staff and IPC members on CHIPS Act implementation and how the program can be leveraged to support the semiconductor supply chain, of which printed circuit board (PCB) fabrication and advanced electronics assembly are key parts. If you'd like to make your voice heard in this critical debate, please contact me to get involved in our advocacy efforts.

Across the Atlantic, policymakers have remained active as they work to reach conclusions on long-debated legislation with potential ramifications on our industry.

After much debate, the European Parliament and EU Council recently adopted a rule aiming to strengthen the reporting requirements for sustainability information of certain large companies. The Corporate Sustainability Reporting Directive (CSRD) will require companies operating in the European Union to regularly disclose and publish detailed information on sustainability matters, including climate change, human rights, and governance. The directive is expected to affect the electronics industry with regards to resources and reporting and transparency efforts across the value chain.

We're also keeping an eye on negotiations on the EU Chips Act, which is expected to bolster the bloc's competitiveness and resilience in semiconductor technologies and applications. We've been involved in conversations with policymakers, and the initial text has notably cited packaging as an activity that can boost innovation.

In addition to these specific priorities, we're also closely monitoring a number of other issues that have the potential to impact the industry, including trade policies, environmental and health issues, education and workforce concerns, and more. We're committed to advocating for policies that will support the growth and competitiveness of the industry, while also protecting the rights and interests of our members.

Here's Where You Come In

The IPC government relations (GR) team is here for you year-round, but the success of our work depends on the active engagement of IPC members. We invite you to join our efforts in one of the following ways:

Stay informed on the issues. Subscribe to IPC’s Global Advocacy Report. If you’re an IPC member, manage your e-mail preferences and opt in to receive “Advocacy” updates. If you are not an IPC member, send a note to friends@ipc.org, and our staff will add you to the list. You can also follow IPC on LinkedIn and Twitter for updates.
Join our grassroots advocacy team. Visit our online advocacy center; enter or update your contact details; and be prepared to participate in several grassroots campaigns coming up soon to influence Congress on our key issues. It will only take a minute or two to update your details, but it will dramatically improve our ability to gain support in Congress.
Connect with your elected representatives. Send emails, make phone calls, or meet with them at their local district office or a public event. IPC’s GR team can help arrange meetings and provide you with talking points and handouts. Even better, invite an elected official to one of your facilities.
Learn more about the IPC Political Action Committee (IPC PAC). In the United States, IPC engages politically through the IPC PAC, which amplifies our industry’s voice on Capitol Hill. The IPC PAC supports pro-manufacturing candidates from both parties in the U.S. Congress.

As always, we welcome your input and feedback on these issues. We encourage you to take our issue survey on electronics manufacturing and share your thoughts and concerns with us. Together, we can help shape the policy environment in a way that supports the continued growth and success of the industry. And if you have any additional thoughts or ideas about how we can better advocate for the issues that matter to you, head over to the IPC Action Alert Center to get involved and please don't hesitate to reach out.

Thank you for your participation and for helping us make a difference.

What government policy areas does IPC want industry members to evaluate?

IPC is seeking input on concerns related to trade, regulatory burdens, environmental policies, supply chain volatility, workforce issues, and any additional policy challenges companies face.

Why is IPC emphasizing advanced packaging in its 2023 advocacy work?

IPC notes that industry leaders see advanced packaging as essential to semiconductor performance, and it is advocating for stronger investment in substrates, assembly, and high density interconnect capabilities.

How does IPC expect the CHIPS Act to affect the broader electronics supply chain?

IPC stresses that semiconductor expansion must be supported by investments in advanced packaging, supply chain partnerships, high density interconnects, and workforce programs to strengthen the full electronics ecosystem.

What new requirements will the EU Corporate Sustainability Reporting Directive introduce?

The CSRD will require detailed sustainability reporting on climate, human rights, and governance matters, impacting resources, transparency expectations, and value chain reporting for companies operating in the EU.

How can electronics companies participate in IPC’s 2023 advocacy efforts?

Companies can join grassroots actions, stay informed through IPC updates, engage with elected officials, learn about the IPC PAC, and complete IPC’s survey to help shape policy priorities.

Best Technical Papers at IPC APEX EXPO 2023 Selected

Jan 12, 2023

The best technical conference papers of IPC APEX EXPO 2023 have been selected. Voted on through a ballot process by members of the IPC APEX EXPO Technical Program Committee (TPC), the paper authors will be recognized during show opening remarks on Tuesday, January 24.

“All of the papers making up the 2023 IPC APEX EXPO Technical Conference represent the highest quality technical content from authors around the world,” said Stan Rak, co-chair of the TPC. “The diversity of the presenting authors is also impressive: 18 countries are represented by presenting authors. Fifteen authors are next generation -- five years or less in the industry -- and 27 presenting authors hold doctoral degrees. The commitment to quality is reflected in this year's selection of Best of Conference, NextGen, and Best Student Research papers. We extend our congratulations to all the award winners."

Taking top honors in the Best of Conference category, the winning papers are:

“Risk Prediction of Electrochemical Migration on Electronic Control Units – A Practical Approach” by Lothar Henneken, Ph.D., Robert Bosch GmbH. This paper will be presented during Technical Conference Session S25: QRTI-Assembly Risk Prediction and Failure Analysis, on Wednesday, January 25.
“Root Cause Analysis and Risk Assessment of Multilayer Ceramic Capacitor Flexural Crack Propagating Fault” by Jennifer Bennett and Eric Campbell, IBM Corporation. Their co-authors are Jim Bielick, Mehdi Hamid, and Kevin O’Connell, IBM Corporation This paper will be presented during Technical Conference Session S13: QRTI -- Printed Board Reliability, on Wednesday, January 25.
“High-Resolution Physical Analyses of Microvia-Target Pad Interfaces” by Martin Leung, Ph.D, and Scott Sitzman, The Aerospace Corporation. Their co-authors are Eric Frasco, Zachary Lingley, Ph.D., Gary Stupian, Ph.D., James Parke, and Shawn Ashley, The Aerospace Corporation. This paper will be presented during Technical Conference Session S11: HDI1 -- Microvia Analysis and Modeling, on Tuesday, January 24.

The NextGen best paper is awarded to:

“Temperature Behavior of FR4 Substrates when Processing during Laser Depaneling” by Patrick Stockbruegger, LPKF Laser & Electronics AG. His co-author is Stephan Schmidt, LPKF Laser & Electronics Inc. This paper will be presented during Technical Conference Session S09: A-LASER Assembly Laser Processing, on Tuesday, January 24.

Selected for the Student Research award, the best paper is:

“Solvent Free Copper Extraction” by Derek Lovejoy, University of Massachusetts/GreenSource Fabrication LLC. This paper will be presented during Technical Conference Session S08: BF-MAT-2 Printed Board Platings and Finishes 2, on Tuesday, January 24.

All technical conference papers were evaluated using a stringent peer review process examining their technical content, originality, test procedures and data used to deduce conclusions, quality of illustrations and the clarity and professionalism of writing as well as value to the industry.

To register for the IPC APEX EXPO technical conference or for more information on all the activities taking place, including professional development courses, exhibition, keynote presentations, networking activities and more, visit www.IPCAPEXEXPO.org.

Survey: How Smart are Your Manufacturing Processes?

Jan 05, 2023

Key Summary

• IPC and Auburn University are conducting a DoD-supported study on manufacturing technology
• The Year 2 survey helps assess how manufacturers use smart processes to improve competitiveness
• Survey takes about 10 minutes and requires no sensitive information
• Responses remain anonymous unless permission is given
• Participants can receive the final publication when the study concludes
• Survey links and Auburn ICAMS contact information are provided for support

IPC has partnered with Auburn University to conduct a study on behalf of the Department of Defense (DoD) that can significantly help our nation’s manufacturing industries, and we would like your help. The Interdisciplinary Center for Advanced Manufacturing Systems (ICAMS) at Auburn University is working to help manufacturers engage with technology to improve competitiveness and profitability.

This survey is Year 2 of a five-year study. The survey should not take more than 10 minutes of your time. We will not be asking for any sensitive information, and your name and your company’s name will not be associated with any information provided unless you give permission. Your insights will help us better understand several overarching industry issues. If you would like, we will provide you with the resulting publication at the conclusion of the study.

We hope that you are willing to help with this project. If so, please begin the survey by clicking on the following link: https://auburn.qualtrics.com/jfe/form/SV_a2ITEZUbD0nW29w?Source=I

You may close the survey and return to finish it later if needed.

If you have questions, please contact the Auburn ICAMS team at icams@auburn.edu.

What is the purpose of the IPC and Auburn University manufacturing survey?

The survey supports a DoD study to understand how manufacturers use technology to improve competitiveness and profitability.

How long does the smart manufacturing survey take?

It is designed to take no more than 10 minutes to complete.

Will my information be kept confidential in this survey?

Yes, no sensitive information is requested, and your name or company is not linked to responses unless you choose to allow it.

What do participants gain from completing the survey?

You can help shape industry insights and request the publication generated at the conclusion of the study.

Volatility and Uncertainty will Continue to Influence Economic Outlook in the Early Months of 2023

IPC issues December Economic Outlook report

Dec 30, 2022

COVID-19, Russia’s invasion of Ukraine, soaring global inflation rates and recession fears were major contributors to the cloud of uncertainty in 2022 and also to slower global economic growth, per IPC’s December Economic Outlook report.

“Many believe a recession is a foregone conclusion in 2023,” said Shawn DuBravac, IPC’s chief economist. “I expect about a third of the world economy will likely be in recession in 2023. Global economic growth has already fallen, slipping from six percent in 2021 to about 3.2 percent in 2022. Global growth is expected to slow further in 2023, clocking in at less than two percent,” DuBravac added.

Additional data in report show:

Global inflation rose from 4.7 percent in 2021 to 8.8 percent in 2022 and should fall to around 6.5 percent in 2023 and four percent in 2024.
U.S. economic activity is expected to increase just 0.3 percent in 2023.
U.S. industrial production fell 0.2 percent in November, the second straight month of decline. Despite the weak November results, production of consumer goods was up 1.8 percent in the past year and production of business equipment was up 5.7 percent.
In Europe, electronics manufacturing output fell in October after two months of growth. Output decreased 2 percent (month-on-month), but production remains high. Output is up 4.4 percent over the last year.

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

Industry Demand Holding Up Despite Deteriorating Economic Outlook, High Costs Continue to Create Challenging Conditions for Electronics Manufacturers

IPC issues December Global Sentiment of the Electronics Supply Chain Report

Dec 22, 2022

Per IPC’s December Global Sentiment of the Electronics Supply Chain Report, over the next six months, manufacturers expect to see continued increase in both labor and material costs. Ease of recruitment and profit margins are likely to remain challenging.

Among other data, survey results show:

Demand remains solid, but closes the year on a lighter note: The Orders Index began the year at 123, strongly in expansionary territory, but closes the year at 107. This is solidly in expansionary territory but down for a second consecutive month and the lowest reading this year.
Supply chain constraints have improved notably since the start of the year: The Inventories Available to Customers (IAC) Index has improved throughout the year. It began the year in contractionary territory but ends the year at 105 suggesting available inventories are growing.
Costs remain elevated: The Materials Costs Index dropped one-point last month, to an all-time low, but the index remains high, suggesting cost pressures continue.

For the report, IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain. View full report.

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

IPC Releases IPC/WHMA-A-620E, Requirements and Acceptance for Cable and Wire Harness Assemblies

Dec 22, 2022

IPC/WHMA-A-620E, Requirements and Acceptance for Cable and Wire Harness Assemblies prescribes practices and requirements for the manufacturing of cable, wire, and harness assemblies, and describes materials, methods, tests, and acceptability criteria for producing crimped, mechanically secured, and soldered interconnections, and the related assembly activities associated with cable and harness assemblies.

Revision E showcases significant changes to the standard, at the request of the industry. The WHMA/IPC-A-620 standards development committee adopted a new chaptering system for the entire document, added new figures and updated several sections of the standard. Of significance was the alignment of soldering requirements with IPC J-STD-001, Requirements for Soldered Electrical and Electronic Assemblies. The Circular Mill Area was revised and terms and definitions in Appendix A were updated.

“IPC/WHMA-A-620E sets expectations between WHMA members and their customers for what is considered acceptable quality workmanship for cables and harnesses,” said David Bergman, IPC vice president of standards and technology. “The revisions requested by the industry were significant, resulting in a much-improved standard.”

For more information or to purchase IPC/WHMA-A-620E, Requirements and Acceptance for Cable and Wire Harness Assemblies, visit https://shop.ipc.org/ipcwhma-a-620/ipcwhma-a-620-standard-only/Revision-e/english.

North American PCB Industry Sales Up 26.1 Percent in November

IPC releases PCB industry results for November 2022

Dec 20, 2022

IPC announced today the November 2022 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.00.

Total North American PCB shipments in November 2022 were up 26.1 percent compared to the same month last year. Compared to the preceding month, November shipments rose 13.1 percent.

PCB year-to-date bookings in November were down 4.1 percent compared to last year. November bookings were up 0.1 percent compared to the same month last year.

“Shipment volume continues to recover while order volume remains muted, continuing a theme that has played out much of the year,” said Shawn DuBravac, IPC’s chief economist. “Shipments are up 11.4 percent year-to-date, while orders are down 4.1 percent.”

Detailed Data Available

Companies that participate in IPC’s North American PCB Statistical Program have access to detailed findings on rigid PCB and flexible circuit sales and orders, including separate rigid and flex book-to-bill ratios, growth trends by product types and company size tiers, demand for prototypes, sales growth to military and medical markets, 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 PCB industry statistics are based on data provided by a representative sample of both rigid PCB and flexible circuit manufacturers selling in the USA and Canada. IPC publishes the PCB book-to-bill ratio by the end of each month.

North American EMS Industry Down 0.6 Percent in November

IPC releases EMS industry results for November 2022

Dec 20, 2022

IPC announced today the November 2022 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.38.

Total North American EMS shipments in November 2022 were down 0.6 percent compared to the same month last year. Compared to the preceding month, October shipments decreased 8.8 percent.

EMS bookings in October decreased 9.1 percent year-over-year and decreased 6.6 percent from the previous month.

“The industry recorded a decline in orders for the second consecutive month, but shipments were also subdued, keeping the book-to-bill elevated,” said Shawn DuBravac, IPC’s chief economist. “Shipments are roughly 15 percent below what we would expect given recent order volume, likely a sign of continued supply chain challenges.”

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

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.

Deep Dive on Advanced Packaging in 2022

Dec 16, 2022

By Chris Mitchell, IPC Vice President, Global Government Relations

Key Summary

• IPC expanded advocacy in 2022 to highlight the need for investment across the entire semiconductor supply chain, especially advanced packaging
• Reports show the U.S. lags far behind Asia in advanced packaging capacity, and industry leaders doubt policymakers understand its importance
• The CHIPS Plus Science Act includes at least $2.5B in IPC-backed funding for advanced packaging R&D and capacity building
• IPC helped place experts on federal advisory panels and submitted recommendations to U.S. and EU agencies shaping semiconductor policy
• IPC, PCBAA, and USPAE are urging federal action to prioritize PCBs and IC substrates under the Defense Production Act

Over the last year, IPC has stepped up its efforts to educate policymakers and other key audiences on the importance of investing in the entire semiconductor supply chain, including advanced packaging and printed circuit boards, to achieve the goals of the CHIPS Act.

For example, an IPC report last winter found the U.S. has only just begun to invest in advanced packaging, while nations in Asia have sprinted ahead to develop the lion's share of capabilities and capacity. A more recent report by IPC, based on a survey of nearly 100 industry leaders in semiconductors and related fields, revealed that only 29% think government policymakers understand the importance of advanced packaging in driving innovation, and 84% believe government initiatives to bolster the semiconductor supply chain require significant investment in advanced packaging capabilities.

An IPC-convened symposium on the topic in October in Washington, DC was well attended by representatives of the U.S. Government and all sectors of the electronics industry.

Progress is also being made on the policy making front, although more work remains to be done. Most notably, the recently enacted CHIPS Plus Science Act includes IPC-backed provisions to invest at least $2.5 billion in advanced packaging capabilities in the U.S. in 2023, and we are continuing to advocate for that objective as the new law is implemented. IPC also succeeded in nominating several advanced packaging experts on a new U.S. Government advisory panel on microelectronics. IPC also submitted official comments on the issue to the U.S. Department of Commerce and to the European Commission, both of which are planning major investments in the semiconductor supply chain in 2023. Finally, IPC and our colleagues at the Printed Circuit Board Association of America (PCBAA) and the U.S. Partnership for Assured Electronics (USPAE) are working to persuade President Biden to issue a determination that PCBs and IC substrates deserve priority U.S. Government action under Title III of the Defense Production Act.

Our message to policymakers is that building a more robust, domestic ecosystem for advanced electronics will require four key policy decisions.

Invest in advanced packaging capacity. The CHIPS Act makes $39 billion available over five years for government investments in manufacturing capacity. Much of this funding will go to silicon fabricators, but at least nine figures should be earmarked for advanced packaging segments including IC-substrate fabrication and final component assembly and test, with a focus on building short-term capacity both organically and through foreign investment or partnerships.
Invest in research and development. The U.S. is 10 to 20 years behind its peers in advanced packaging, especially IC substrate fabrication. Playing catchup is a losing strategy, so the U.S. needs to invest in leapfrogging technological advancements. Fortunately, the CHIPS Act allocates $2.5 billion for advanced packaging R&D, funds that should be used to support innovations in equipment, materials, and processes that support advanced electronic interconnection.
Promote supply chain partnerships instead of supplier relationships. Component makers and their suppliers need to see each other more as partners than as customers and suppliers. Partners support each other’s success; customers too often seek the lowest price even if it weakens the suppliers’ ability to remain solvent and invest in new capabilities. In the context of rising geopolitical tensions and global supply chain risks, customers and suppliers are dependent upon each other’s success, and the business relationships should reflect this fact.
Make strategic decisions on what we are building and for whom. The global electronics supply chain has largely moved out of the United States and allied nations in Europe. Bringing it all back is highly unlikely. Instead, the U.S. Government needs to determine what items need to be made in the U.S. and allied countries—either for strategic autonomy or security purposes—and then focus on building capabilities accordingly.

Looking ahead to 2023, IPC will continue to advocate for the entire semiconductor supply chain in every policy-making arena. If you’re interested in supporting our efforts, please contact me at chrismitchell@ipc.org.

Why is advanced packaging so important to the semiconductor supply chain?

Advanced packaging connects chips to each other and to the broader system, and it increasingly drives performance, efficiency, and innovation. Without it, semiconductor fabrication alone cannot meet technological demands.

How far behind is the United States in advanced packaging capabilities?

IPC reports indicate the U.S. is 10 to 20 years behind major competitors, especially in IC substrate fabrication, with most global capacity concentrated in Asia.

What progress was made in 2022 to address this gap?

The CHIPS Plus Science Act allocated at least $5 billion for advanced packaging R&D, policy engagement increased, and experts were appointed to federal advisory committees shaping microelectronics strategy.

What does IPC recommend policymakers prioritize going forward?

Investing in advanced packaging capacity, funding R&D to leapfrog other regions, fostering supply chain partnerships, and determining which strategic technologies must be produced domestically.

Why does IPC emphasize partnership over traditional supplier relationships?

In a high-risk geopolitical environment, component makers and suppliers depend on each other’s success. Partnership models strengthen resilience and enable long-term investment in capabilities.

How can industry members get involved in IPC’s advocacy work?

IPC encourages companies to participate in policy discussions, share insights, and support initiatives by contacting their government relations team for engagement opportunities.

Matt Kelly Promoted to Chief Technology Officer and Vice President, IPC Technology Solutions

Dec 15, 2022

Congratulations to Matt Kelly on his promotion to Chief Technology Officer and Vice President, Technology Solutions. In this role, Matt will lead his team in defining and developing the scope of what future products and services the association should develop in the areas of standards, education and advocacy. His primary areas of focus will be leading advanced packaging, factory of the future, e-Mobility and design initiatives, including technical research and industry intelligence funding. Reach out to MattKelly@ipc.org for questions about IPC’s technology solutions.

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