Introducing IPC's "Industry Intelligence Insights" Newsletter!

Dec 09, 2024

We’re excited to launch Industry Intelligence Insights, your new go-to resource for the latest research, trends, and expert analysis shaping the global electronics manufacturing industry.
 
Each monthly issue delivers:
Economic Insights: Market analysis from IPC Chief Economist Shawn DuBravac, with a focus on the global electronics industry.
Industry Data: Key takeaways from IPC’s Book-to-Bill and Global Sentiment reports.
New Reports: Summaries of IPC’s latest major industry intelligence releases.
Expert Perspectives: Access to podcasts, webinars, and thought leadership from industry experts.
 
Our goal is to provide you with a clear, concise, and comprehensive view of market dynamics, policy shifts, and industry challenges — all in one place.
 
Don’t miss out! Subscribe today (select industry intelligence opt-in) and share with your colleagues to stay informed and prepared for what’s ahead. https://www.ipc.org/opt-receive-ipc-emails

CEN and CENELEC Host Workshops Starting in January on Digital Product Passports for PCBs

Dec 05, 2024

Two of Europe’s top standard-setting bodies, CEN and CENELEC, are organising an extended stakeholder dialogue in 2025, through a series of workshops, on the Digital Product Passports (DPPs) for Printed Circuit Boards (PCBs). The DPP, introduced under the European Commission’s Ecodesign for Sustainable Products Regulation (ESPR), will serve as a digital identity card for products, providing crucial details on sustainability, recyclability, and environmental impact. By enabling electronic access to this data, the DPP will help consumers, manufacturers, and authorities work together toward a more circular economy and eco-friendly practices across the EU.  

 

The fact that PCBs are being considered at this early stage in the development of DPPs is a positive signal and a not-to-be-missed opportunity to advocate for fit-for-purpose DPP requirements for PCBs, which, once set, will pave the way for DPP requirements for the electronics industry at large. CEN and CENELEC recognise that the European economy is even more semiconductor-dependent and electronic companies depend on out-of-EU suppliers. PCBs are finally accounted for in key EU discussions, in this case the DPP, a highly political part of the EU’s circular economy framework.

 

The stakeholder dialogue convened by CEN and CENELEC will kick off with a first workshop on 20 January, followed by five workshop meetings and web conferences. Participants will develop a CEN Workshop Agreement (CWA) to establish a common view on how a DPP for PCBs should be structured and which data are essential to facilitate circular approaches in electronics. The process is led by Paolo Rosa, a post-doctoral researcher in the Manufacturing Group of Politecnico di Milano. 

 

IPC’s Diana Radovan will attend the sessions on behalf of the electronics industry and everyone involved in PCB manufacturing is invited to participate. Other participants will include policy makers, OEMs, industry associations, consultancy experts, and standardization bodies. IPC welcomes the valuable input of its member companies and plans to support the consolidation of industry input. 

 

Stakeholders interested in participating can register using this form by 10 January and submit it directly to Sarah KÖHLER, workshop secretary, at Sarah.koehler@din.de. Each organisation that wants to engage in the workshops should complete and submit this form individually. 

 

IPC encourages comments on the draft Project Plan. Feedback can be submitted in two ways: 

  1. Fill in this template and email it to Sarah.koehler@din.de by 10 January; or

  2. Contact IPC’s Diana Radovan at dianaradovan@ipc.org to be part or IPC’s working group on consolidated industry input.

 

2024 IPC K-FEST: Shaping the Future of the Electronics Industry

IPC K-FEST 2024, the second annual IPC Korea Festival of Electronics Standards and Technology, was held in Seoul on October 29. The focus of this year’s event centered on the integration of Korea's technological leadership with international standards development.

          The conference attracted160 industry professionals from approximately 80 companies. This one-day event featured technical seminars, an IPC-A-610 regional task group meeting, and the IPC Korea Annual Awards as key highlights. IPC Asia President Sydney Xiao and IPC Board member, Jae-sang Min, LG Electronics, gave welcome speeches to open the event. 

Technical seminars focused on addressing challenges in the electronics manufacturing industry, demonstrating how IPC standards enhance manufacturing performance and quality. Participants engaged in active discussions across seven topics: Digitalization of Electronics Manufacturing – Towards Smart Factory enabling Industry 4.0; Mastering Challenges in Electronics for Electric Vehicles; Evaluation and Prediction of MLCC Ionic Migration in Electronics; Material Selection and Technical Solution of Conformal Coating; Improving Performance and Reliability at PCB Design Phase, Requirements and Acceptance Specifications for Organic Packaging Substrates, and the Relationship of  Sn Plating and IMC at PCBA. 

During the awards luncheon, IPC Korea staff awarded various individual volunteers. Rounding out the day, the IPC-A-610 regional task group meeting was held, which aimed to involve more Korean engineers into IPC’s global standardizations activities. 

          Jae-sang Min, IPC Board member, highly praised the achievements made by the IPC Korea team since 2021. “Although currently there are not many Korean people participating in IPC standardization compared with Korea's leading position in the electronics industry and the importance of IPC in the electronics industry, I believe that in the near future, the IPC Korea team, through platforms such as IPC K-FEST, will surely lead more and more Korean electronics manufacturing companies and experts to the world standardization stage,” he stated.

          The Korean Government project, “De-facto Standard Forum” sponsored this event and Jong-won Kwon, general project director of the De-facto Standard Forum said, “IPC K-FEST is exactly the kind of event that we are expecting to see. We, the Korean De-facto Standard Forum, would like to support IPC as much as we can.” MacDermid Alpha Electronics Solutions and K&P Co., Ltd. sponsored supplies for this event.

“My special thanks go to the IPC Korea team and IPC Korea Advisory Committee for their dedication in making this event possible. We are confident that it will continue to attract greater interest from Korea’s industry, potentially evolving into a global event, and thus promoting more industry experts to participate in the development of IPC standards,” said Sydney Xiao, IPC Asia president.

IPC Announces Two New Courses to Enhance Electronics Manufacturing Excellence

IPC is excited to announce the launch of two new courses designed to optimize electronics manufacturing processes: "Ensuring Excellence: IPC-J-STD-001 Process Optimization" and "Ensuring Excellence: IPC-A-610 Process Optimization." These courses equip technicians and engineers with the standards-based knowledge, troubleshooting skills, and process control expertise to meet the acceptability criteria outlined in the IPC-A-610 and J-STD-001 standards.

 

Ensuring Excellence: IPC-A-610 Process Optimization provides practical guidance on integrating standard requirements into your assembly operations to ensure quality and compliance. Participants learn how to identify, troubleshoot, and remedy issues in the assembly process to ensure adherence to IPC-A-610 standards. 

 

Ensuring Excellence: IPC-J-STD-001 Process Optimization delivers targeted insights to help you align your processes to meet the criteria in J-STD-001. Participants will learn how to establish process controls, materials handling protocols, and soldering techniques to reduce variability and boost product reliability and quality. 

 

Both courses are structured into detailed modules that cover various aspects of electronics manufacturing, from material selection and soldering to ESD control and mechanical assembly. The courses include interactive elements such as quizzes and videos, making learning engaging and effective.

 

Carlos Plaza, IPC’s senior director of Education, stated, "These new offerings exemplify IPC's commitment to continuously improving our industry's training and standards. Equipping professionals with necessary tools and knowledge ensures that quality and excellence remain at the forefront of electronics manufacturing."

 

The courses are available on the IPC EDGE Learning Management System, providing participants easy access to comprehensive resources and support. Upon successful completion, participants will receive a Certificate of Completion, demonstrating their proficiency and commitment to upholding industry standards.

Apprenticeships Can Power the Electronics Industry. Here’s How IPC is Helping.

Nov 25, 2024
| By John Mitchell

by John W. Mitchell, IPC president and CEO

In a time that feels more politically divided than ever, there are still policies that Americans generally agree on —and expanding workplace apprenticeships is one of them. Last week’s commemoration of National Apprenticeship Week gave us the opportunity to take a deeper dive into why apprenticeships have such bipartisan appeal and the important role they can play in supporting the U.S. electronics manufacturing industry.

An October 2024 survey by national workforce nonprofit Jobs for the Future found that 84% of voters, including 88% of Democrats and 82% of Republicans, supported expanding registered apprenticeship programs. Additionally, 74% of voters said it will be important for a president to take action on this in the first 100 days.

The bipartisan appeal is understandable. It is a win-win for workers and employers:

  • As American workers seek stable economic footing, apprenticeships offer a tighter connection to good jobs than many other education and training pathways. Apprentices join the workforce as employees, earning a paycheck while participating in structured training that combines hands-on experience with classroom instruction. Apprenticeships don’t require a financial investment from the worker making them accessible to a wider range of would-be employees and opening pathways into industries that might otherwise be out of reach for many. In addition to immediate employment, apprenticeships also offer a nearly guaranteed job that can turn into a long-term career: 93% of apprentices stay on with their employer after their apprenticeship ends. 

  • Employers are able to use apprenticeships to improve their own talent pathways and ensure that the programs teach the skills that are needed for success. Unlike other preparation programs, there is no gap between what is taught and what is needed in the workplace. Additionally, Federal and state grants, as well as tax incentives in some states, can help defray some of the costs. 

The electronics industry, like so many other industries, struggles to hire and retain skilled workers. Facing a dual challenge of a growing sector and an aging talent pool-- which in combination threaten to leave 2.1 million jobs unfilled by 2031 – apprenticeship offers an important on-ramp to our dynamic industry.   

Onboarding and upskilling are two of the biggest hurdles electronics manufacturers encounter. Many rely on inefficient methods like shadowing or ad hoc internal training, which focus on immediate needs rather than building foundational skills. Apprenticeships address these gaps head-on. By offering a structured system, they provide workers with both foundational knowledge and advanced skills, equipping them to adapt to changing technologies. At the same time, they offer employers a reliable framework to develop talent and meet workforce demands.

That’s why IPC established the first registered apprenticeship programs for the U.S. electronics manufacturing sector, approved by the U.S. Department of Labor last fall. These programs target roles such as Electronics Assembly Operator and Printed Circuit Board Fabricator, combining industry-defined coursework with certification exams to ensure workers meet established proficiency standards. Beyond that, IPC is piloting pre-apprenticeship programs with high schools in Colorado, Texas, and Massachusetts to prepare students for entry into the workforce and strengthen the talent pipeline.

We recently shared that IPC is on track to reach 100 enrolled apprentices across nine companies and eight states within the first year of the programs being active. This is incredibly exciting but it is only the beginning for us. As we move into our second year, we continue to look at ways to grow apprenticeship opportunities across our industry. 

Apprenticeships are one of the oldest forms of training, but they are underutilized in America — only 0.3% of the workforce has enrolled in an apprenticeship (compare this to 3.6% in Switzerland or 2.3% in Germany). With bipartisan support and an economic imperative, it’s time to change that. The electronics industry should lead the charge. 

Subdued Electronics Industry Sentiment Continues in November

IPC releases November 2024 Global Sentiment of the Electronics Manufacturing Supply Chain report

The electronics industry faced a mixed sentiment in November, with modest improvements in demand overshadowed by rising cost pressures according to IPC’s November Sentiment of the Global Electronics Manufacturing Supply Chain Report. 

 

The Demand Index rose 2.6 percent in November but remains subdued for the third consecutive month. The Backlog Index, already in contraction, fell an additional two points to reach a new record low. Capacity Utilization returned to expansionary territory, while the New Orders Index improved slightly but stayed in contraction for the third straight month. The Shipment Index rose three points, signaling some positive movement. 

 

In response to special questions regarding the electronics industry workforce’s basic understanding of AI skills, 69 percent of respondents agreed that a broad understanding of AI will be essential for the workforce, yet only 11 percent of employees have received AI training to date, indicating a significant gap between perceived importance and current investment in skills development. 

 

According to Shawn DuBravac, Ph.D., IPC chief economist and report author, industry outlook remains positive this month despite cost concerns. “Industry outlook remains optimistic, with expectations for demand improving. However, concerns over rising costs weigh on confidence as firms brace for continued pressures,” stated Dr. DuBravac.

 

Additional survey data show:

  • Cost pressures intensify -- The Labor Costs Index remained flat at its all-time low. However, the Material Costs Index climbed to its highest level since June 2024, highlighting renewed cost pressures. A majority of firms continue to report rising material and labor costs, adding strain to operations.
  • Outlook for next six months -- Over the next six months, electronics manufacturers expect labor and material costs to remain high, with ease of recruitment likely to remain challenging. 
  • Regional differences in outlook -- Nearly three-fifths (57 percent) of electronics manufacturers in APAC, along with half (48 percent) of North American manufacturers, expect capacity utilization to increase over the next six months, which is significantly higher than the 8 percent increase expected among those operating globally. 

These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between October 15 and October 31, 2024.

Read the full report.

North American EMS Industry Up 14.7 Percent in October

IPC releases EMS industry results for October 2024

IPC announced today the October 2024 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.25.

Total North American EMS shipments in October 2024 were up 14.7 percent compared to the same month last year. Compared to the preceding month, October shipments were up 3.4 percent.

EMS bookings in October increased 6.6 percent year-over-year and decreased 4.5 percent from the previous month.

“The October book-to-bill ratio for the North American EMS industry slightly trailed the long-term trend. Although orders have declined for two consecutive months, the year-to-date performance remains solid,” said Shawn DuBravac, Ph.D., IPC’s chief economist. “Shipments, which had been subdued earlier this year, have now increased for four consecutive months, suggesting improving momentum.”

October 2024 EMS book to bill ratio 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.

North American PCB Industry Sales Down 11.1 Percent in October

IPC releases PCB industry results for October 2024

IPC announced today the October 2024 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.09.

Total North American PCB shipments in October 2024 were down 11.1 percent compared to the same month last year. Compared to the preceding month, October shipments were up 20.4 percent.

PCB bookings in October were up 3.5 percent compared to the same month last year. October bookings were down 3.7 percent compared to the preceding month.

“The October book-to-bill ratio for the North American PCB industry increased 3.1 percent compared to September, driven by strong bookings over the past three months and subdued shipments,” said Shawn DuBravac, Ph.D., IPC’s chief economist. “Year-to-date, order volume remains slightly positive, significantly outpacing the high single-digit decline in shipments.”

October 2024 PCB book to bill ratio chart 1

 

October 2024 PCB book to bill ratio chart 2

 

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.

Winners of IPC Hand Soldering World Championship at electronica 2024 Announced

IPC hosted its Hand Soldering World Championship in Munich, Germany, at electronica on 14-15 November 2024, welcoming 14 competitors from 13 companies and 12 countries worldwide. Skilled contestants competed to build an electronics 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. The contestants were allowed a maximum of 60 minutes to complete the assembly.

 

Taking top honours this year were:

  • In first place: Zhiheng Zhou, Jiangsu Jinling Mechanism Manufacture Company, China, scoring 801 points out of the maximum possible of 816 points.
  • Second place: Roshan Dhyani, Barco Electronics Systems (P) Ltd, India, scoring 795 points out of the maximum possible of 816 points.
  • Third place: Stéphanie Devy, Thalès, France, and Regional Champion for Germany, scoring 795 points out of the maximum possible of 816 points.

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

  • Gold Sponsors: Weller Tools and JBC Soldering
  • Silver Sponsors: ACB Group, Almit, Davum TMC, Optilia, SFM - Société Française de Microscopie, and Polygone CAO. 

 

"IPC extends its thanks and congratulations to all the participants and their companies for their enthusiasm and commitment to taking on the challenge. The new competition board was very complex this year, and the contestants rose to the challenge with amazing performances" said Philippe Léonard, director of IPC Europe. "We look forward to seeing the first-place winners from each regional competition compete in next year's Hand Soldering World Championship, which will take place at productronica."

For more information on IPC hand soldering competitions in Europe, please contact Philippe Léonard at PhilippeLeonard@ipc.org.

 

IPC Issues Clarion Call for EU to Reclaim Leadership in Electronics Manufacturing

Releases synopsis of recent EU industry white paper

Today, IPC released a synopsis of its recent white paper, Securing the European Union’s Electronics Ecosystem. This condensed document presents a comprehensive overview of the current challenges in Europe’s electronics manufacturing industry and shares actionable steps to help the EU achieve a stronger, more autonomous ecosystem. The synopsis document is designed as an informative tool for policymakers, media, and other key stakeholders outside the industry, reinforcing IPC’s commitment to supporting Europe’s path to technological sovereignty.

 

IPC’s efforts in Europe, led by Alison James, senior director of IPC’s European government relations, stress a commitment to building a strong European electronics industry. The focus of this work is on promoting policies that support Europe’s strategic autonomy and competitiveness, especially within the context of the European Competitiveness Deal and the Chips Act. “Collaboration between industry and policymakers is needed to address gaps in the electronics manufacturing supply chain. The synopsis complements IPC Europe’s ongoing work by clearly outlining these areas and advocating for urgent support to ensure that the EU’s ambitions extend beyond semiconductor production,” said James.

 

The synopsis serves as a foundation for policy discussions by providing specific industry insights, helping decision-makers understand the real-world impact of these supply chain gaps. For example, Europe’s aerospace and defense industries are strong globally but still rely on non-EU sources for critical components. Similarly, the telecommunications and healthcare industries show high demand for electronics yet face vulnerabilities due to limited regional production capacity for key components. 

 

By clearly illustrating these gaps, the synopsis strengthens the case for a comprehensive strategy. This also emphasizes the need for a complete European electronics ecosystem. One example of this is how the EU has set ambitious semiconductor targets under the €43 billion Chips Act, but the synopsis argues that semiconductor production alone will not secure Europe’s supply chain. A truly self-sufficient ecosystem requires additional focus on PCBs and advanced packaging, two areas where Europe currently depends on imports, creating risks of supply disruptions and delays.

 

IPC’s electronics manufacturing call to action was included at the end of the synopsis, and it urges EU policymakers to establish an electronics manufacturing strategy within the European Competitiveness Deal and to enact a Strategic Electronics Manufacturing Act. Such initiatives would encourage investment, foster innovation, and create a skilled workforce, each of which are elements that are essential to securing Europe’s position as a global leader in electronics. 

 

Added James, “By advocating for targeted interventions and strategic partnerships, IPC’s efforts aim to encourage European policymakers to take action that will help meet the region’s critical technology needs independently, sustainably, and competitively. The synopsis is both a tool for advancing this agenda and an invitation for stakeholders to join IPC in driving the EU’s electronics manufacturing renaissance.” 

 

Read the synopsis here: https://go.ipc.org/eu-whitepaper-synopsis.

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