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Seven Takeaways from IPC APEX EXPO 2019
Political Uncertainties Raise Doubts on Both Sides of Atlantic
Key Summary
• Political uncertainty in the U.S. and Europe is limiting opportunities for major policy action
• The U.S. government is emerging from a prolonged shutdown, with Congress shifting focus to budgets, oversight, and defense legislation
• A major U.S. infrastructure bill is possible but unlikely to be enacted
• Europe faces fragmentation ahead of EU elections and ongoing Brexit instability
• IPC is prioritizing long-term engagement and monitoring key policy developments across both regions
On both sides of the Atlantic, the political waters are turbulent, creating uncertainties about the opportunities for meaningful policy actions. In Washington, D.C., things are getting back to “normal” after a five-week government shutdown that was prompted by President’s Trump demand for a US-Mexico border wall. To end that standoff, the White House and Congress agreed to reopen the government for three weeks – until February 15 – while negotiators work out issues related to border security. Assuming a compromise can be reached on border security – which is not certain – Congress will devote the next several months to oversight hearings, the FY 2020 budget, the defense authorization bill and annual appropriations bills. Congress could advance an infrastructure bill, but enactment of a bill remains unlikely. In Europe, 2019 will be a crucial year for EU policy making. The upcoming EU elections will take place without the UK and are expected to lead to a more fragmented European Parliament. New political alliances will affect the leadership of the next European Commission and the policy agenda of the next five years. Speaking of the UK, the deadline for its exit from the EU is now less than 60 days away, with no agreed-upon deal to cover the many details. Now the EU and its Member States are beginning to implement emergency preparedness plans to address what could become a major disruption in the event of a no-deal exit. Given the near-term uncertainties, we’re focusing on long-term initiatives, relationship building, and capacity building. As always, we will be monitoring the ongoing action on our key policy issues and advocating for your interests. Please contact Chris Mitchell if you have any questions or suggestions.
The recent government shutdown and ongoing border security disputes have slowed legislative momentum. Congress will focus on budgets, oversight, and defense bills, leaving limited room for major new initiatives such as infrastructure legislation.
EU elections are expected to produce a more fragmented Parliament, leading to shifting alliances and uncertainty in forming the next European Commission. These political changes will influence the EU policy agenda for years ahead.
With the UK set to leave the EU and no final deal secured, both sides are preparing contingency plans. A no-deal exit could disrupt trade, regulatory systems, and supply chains, making planning more difficult for manufacturers.
Companies should anticipate slower policy movement, potential regulatory disruptions, and shifting timelines. Staying engaged with IPC and maintaining awareness of regional political developments will help navigate emerging risks.
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Fabrication and Assembly Challenges to be Covered at the Executive Forum for Advancing Automotive Electronics at IPC APEX EXPO 2019
Key Summary
• The presidential determination recognized PCBs, advanced packaging, and IC substrates as critical defense technologies
• FY24 funding preserved DPA resources, including support for domestic PCB fabrication
• Two IPC member companies received major DPA awards for IC substrates and advanced packaging
• IPC urges a full U.S. commitment to a silicon to systems strategy rather than a chips only focus
• FY25 budget concerns threaten momentum due to reduced DPA funding and no new PCB allocations
Are you building military boards or circuits for 5G? If so, reliability is of paramount importance and you should consider attending IPC’s Executive Forum for Advancing Automotive Electronics and learn what is being done to improve reliability, what high voltage tests are being conducted, and what new materials and process chemicals have been developed to produce fine lines and dissipate heat.
Tier 1 providers will discuss what is expected and what they are doing to improve reliability. Industry icons from Asia and Europe will join American leaders to provide information to help you meet tomorrow’s fabrication and assembly challenges. This not-to-be-missed event will be held at IPC APEX EXPO 2019 on January 28 in San Diego. Registration information for the Executive Forum on Advancing Automotive Electronics is available online at www.ipcapexexpo.org. For further information, contact Forum Chairman Gene Weiner at gene@weiner-intl.com or Tracy Riggan, senior director, IPC Member Support at TracyRiggan@ipc.org.
The FY24 spending deal preserved DPA funding, key language supported domestic PCB fabrication, and two IPC member companies received major investments to expand IC substrate and advanced packaging capabilities.
Chips cannot function alone. They must be mounted on PCBs and integrated with other components. Without strengthening the full ecosystem, advanced chips produced in the U.S. will still require overseas packaging and assembly.
Calumet Electronics received $39.9 million for high density build up substrates, and Green Source received $46.2 million to expand IC substrate, HDI, UHDI, and advanced packaging production.
The FY25 budget proposal reduces DPA funding by 33 percent and adds no new resources for PCBs or advanced packaging, which risks stalling progress made in recent years.
Sustained funding is needed to build U.S. capabilities in substrates, PCBs, and advanced packaging. Without it, the nation remains vulnerable to supply chain disruptions despite increased chip production.