IPC White Paper Emphasizes the Critical Importance of ‘Design for Excellence’ Throughout the Full Ecosystem of Electronics Design

A new white paper from IPC’s Chief Technologist (CTC) and Design Leadership (DLC) Councils, Better Electronics by Design: Next Generation Design Needs explores the elements of the “Design for Excellence” methodology, re-thinking how it needs to be further defined and applied in the full ecosystem of electronics design.

In addition, the whitepaper provides a high-level exploration of the full “silicon-to-systems” ecosystem, examines the justification and implications of an Authoritative Source of Truth (ASOT), discusses the need for synergy between building blocks of electronic systems, and takes a deep dive into the subject of design rules and “design for manufacturability.”

Key messages within the white paper include:

  • Electronic systems are increasingly complex and heterogeneous.
  • Facilitation of an Authoritative Source of Truth (ASOT) is mandatory to ensure consistency, efficiency, and traceability.
  • The industry needs a more robust and interoperable toolset to support greater silicon-to-systems collaboration.
  • Diverse electronic and mechanical CAD systems must gain interoperability by including proper model-based definitions (MBD) and collaborative software to cover both disciplines.
  • A shift towards true digital collaboration and automation and an early consideration of manufacturing capabilities across the development process is essential to master increasing time-to-market and complexity challenges.

“Creating better electronics by design is a common, collective goal of the electronics industry,” said Peter Tranitz, IPC senior director, technology solutions, and leader of IPC’s design initiative. “To achieve this, an ASOT should be established and protocols, standardized. To leverage the associated benefits, a culture of real digital collaboration, transparency, and accountability needs to be established. Tools need to support bi-directional, incremental exchange of information. And design rules need to be broken down to the relevant stages of the design workflow and checks need to be performed after every stage of the design process to drive the concept of ‘shift left.’ For effective Design for Manufacturability execution, manufacturers need to provide clear guidance on manufacturing capabilities and constraints to designers.”

Download the report:  https://go.electronics.org/next-gen-design.

North American PCB Industry Sales Down 6.8 Percent in May

IPC releases PCB industry results for May 2024

IPC announced today the May 2024 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 0.95.

Total North American PCB shipments in May 2024 were down 6.8 percent compared to the same month last year. Compared to the preceding month, May shipments were down 16.5 percent.

PCB bookings in May were down 6.4 percent compared to the same month last year. May bookings were down 2.7 percent compared to the preceding month.

“The sluggish growth in the PCB industry reflects broader economic headwinds and likely signals a period of slower growth,” said Shawn DuBravac, IPC’s chief economist.

May 2024 PCB book to bill ratio chart one
May 2024 EMS book to bill ratio chart two

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 Up 5.0 Percent in May

IPC releases EMS industry results for May 2024

IPC announced today the May 2024 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.36.

Total North American EMS shipments in May 2024 were up 5.0 percent compared to the same month last year. Compared to the preceding month, May shipments increased 3.7 percent.

EMS bookings in May increased 2.6 percent year-over-year and decreased 16.2 percent from the previous month.

“The North American EMS industry continues to show resiliency,” said Shawn DuBravac, IPC’s chief economist. “Shipments and orders moved higher in May, but lower order growth compared to a year ago speaks to the headwinds facing the sector today.”

May 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.

Four Key Failures Driving Today’s Skills Gap

Jun 18, 2024
| By Carlos Plaza

The upheaval of recent years reminds us that change is inevitable. Growth, on the other hand, is merely possible. Across the globe, growth in the electronics manufacturing sector is constrained by workforce shortages and a persistent skills gap. Demand for manufacturing output continues to rise just as access to qualified workers diminishes. Baby Boomers are aging out of the workforce, the expectations of workers are evolving, and there is a prevalent mismatch between the skills employees require and the skills available workers possess. This dogged state of affairs limits the industry’s growth and leads to increased production costs in an already thin-margin sector. 

The growing number of retirements may be difficult to address, but we can bridge the mismatch between the skills of the current workforce and the needs of the electronics manufacturing industry. To tackle this challenge, we need to understand our industry’s shortcomings in four key areas of workforce development: talent pipeline, onboarding, career pathways, and upskilling.

Talent pipeline

A school-to-workforce pipeline is a coordinated system designed to prepare students for a seamless transition from educational institutions to the labor market. This pipeline involves collaboration between schools, vocational programs, higher education institutions, and employers to ensure that students acquire the necessary skills, knowledge, and experiences to meet the demands of the industry. The electronics manufacturing industry lacks the kind of school-to-workforce pipeline that provides fields such as machining and automotive repair with a ready pool of qualified workers. As a result, there are fewer individuals with the necessary skills to fill available positions.

Onboarding

The lack of a talent pipeline often leads to weak onboarding programs, which worsen the skills gap. Without education pipeline partners, employers end up having to teach foundational knowledge and skills even though few manufacturing companies count education among their core competencies. The result is often an onboarding process that either takes too long for workers to become proficient or fails to provide new employees with the required skills. This, in turn, sets off a compounding spiral of decreasing productivity, quality, customer satisfaction, and revenue.

Career Pathways

Career pathways are structured routes that outline the progression and development opportunities available to employees within an organization or industry. They provide a clear roadmap for individuals to follow, detailing the skills, competencies, and experiences needed at each stage of their career. The electronics manufacturing industry does not have a standardized career pathway framework that current and potential employees can use to identify the training and certification programs required to progress from one job role to another. This is a critical issue because employees who cannot see a clear path for career advancement are much more likely to seek other opportunities, resulting in a continuous and costly loss of institutional knowledge and skills.

Upskilling

As we noted with onboarding, most manufacturers are not well equipped to design, implement, or evaluate educational solutions. The absence of a specialized and standardized training system makes it challenging for them to enhance the skills of their current workforce quickly and efficiently. If employees do not have access to effective upskilling opportunities, their skills will remain stagnant while industry requirements and technologies continue to advance. Companies that fail to enhance the skills of their workforce will find it difficult to innovate and compete effectively in the market. As other companies forge ahead with a more skilled workforce, those lacking in upskilling efforts will lose their competitive advantage.

The lack of an industry-driven pipeline, effective and efficient onboarding programs, a career pathways system, and a rapid upskilling infrastructure all contribute to the skills gap limiting growth in the electronics manufacturing industry. Fortunately, IPC has plans to address the industry’s workforce challenges and bridge the growing skills gap to ensure long-term sustainability and growth. Stay tuned here for future posts on the topic, and download our white paper, Building Electronics Better: A Plan to Address the Workforce Challenges Facing the Electronics Manufacturing Industry, here to learn more. 

STI Electronics, Inc. Requalifies for Four IPC Qualified Manufacturers Listings

IPC's Validation Services Program announces that STI Electronics, Inc., a multifaceted technical organization supporting the electronics manufacturing industry, has been requalified, at the Class 3 level, to IPC J-STD-001, IPC-A-610, and IPC J-STD-001 Space & Military Addendum Qualified Manufacturers Listings (QML). During the same requalification process, STI was also requalified as an IPC-1791, Trusted Electronic Designer, Fabricator and Assembler Requirements Qualified Manufacturers Listing (QML) Type 3 Assembler.

Commenting on STI Electronics, Inc.’s QML requalification, David Raby, president and CEO, said, “STI Electronics, Inc. unlocks the future with IPC QMLs, where rigorous standards meet innovation. Quality, reliability, and efficiency coverage propel us towards excellence in electronic manufacturing.” He continued, “We extend our deepest appreciation to IPC and Randy Cherry for their unwavering dedication to advancing the electronics industry. Their commitment to fostering standards, innovation, and collaboration continues to shape a brighter future for all.”

STI Electronics, Inc. achieved its initial IPC Validation Services QML recognition status over six years ago. With its requalification, it maintains its QML status as an IPC trusted source capable of manufacturing by industry best practices and at the highest level of quality.

IPC's Validations Services QPL/QML Program was developed to promote supply chain verification. It also provides auditing and qualification of electronics companies' products and identifies processes that conform to IPC standards.

"Unlike other audit programs, IPC's Validation Services Programs uniquely provides technical and in-depth assessments of products and processes per IPC standards," said Randy Cherry, IPC director of Validation Services. "We are pleased to recognize STI Electronics, Inc. for continuing to be a member of IPC's network of trusted QML suppliers for three of IPC’s foremost standards."

For more information about IPC's Validation Services QPL/QML Program, visit www.ipcvalidation.org or contact Randy Cherry at RandyCherry@ipc.org or +1 847-597-2806.   

IPC President & CEO Dr. John W. Mitchell Engages in High-Level Dialogue at Keidanren’s Seminar on International Standards Strategy

Jun 14, 2024
| By Sydney Xiao
John W. Mitchell, IPC president and CEO presenting on international standards development in Tokyo.

Dr. John W. Mitchell, President & CEO of IPC, contributed his expertise as a panel speaker at the prestigious Keidanren Top Management Seminar on International Standards Strategy in Tokyo on June 1. The event convened a distinguished group of policymakers, industry leaders, and experts to explore the pivotal role of international standardization in driving global collaboration and securing competitive advantages.

The panel discussion was moderated by Shigeto Wada, Chair of the Policy Planning Subcommittee of the Keidanren Committee on IP and Corporate Senior Vice President of NEC. Other esteemed panelists included Miki Yamanaka from Daikin Industries, Nao Nishikawa from Ministry of Economy, Trade and Industry (METI), and Iwao Hojoki from National Institute of Information and Communications Technology (NICT).

 

Key Discussion Points:

  1. Collaborative Domain in the Global Market: Dr. Mitchell emphasized the strategic importance of proactive involvement in international standard-setting, allowing companies to mold the industry's future and gain a competitive edge. He showcased IPC’s collaborative efforts with its 3,200 member companies, including prominent Japanese corporations like Toyota, and their collective impact on global industry standardization.
  2. Strategic Partnership Building and Talent Development: Dr. Mitchell highlighted IPC as an exceptional platform for Japanese companies to forge strategic alliances with international businesses. He also highlighted IPC’s educational programs, which are highly regarded by engineers worldwide, as pivotal for talent development and industry advancement.
  3. Japan’s Winning Strategies for Society 5.0 and SDGs: Addressing the theme of Society 5.0 and the SDGs, Dr. Mitchell introduced IPC’s initiatives in advanced packaging technology, underscoring its significance for AI utilization and energy efficiency.

Dr. Mitchell expressed his appreciation to Keidanren for Keidanren policy paper issued in February 2024, which recognizes IPC as an important collaborative partner for Japan. He stressed the need to strengthen collaborative ties between IPC and the Japanese business community.

He also mentioned IPC's goal to foster industry innovation and competitiveness of our members on a global scale, adding, "We're excited to keep working with Keidanren and support Japan's leadership in the international standards arena," he concluded.

IPC APEX EXPO 2025

Date
-

Discover the newest innovations and hear from the best minds in the electronics manufacturing industry. IPC APEX EXPO 2025 will be our industry’s largest event in North America featuring a world-class trade show, professional development courses taught by industry experts, non-stop networking and more! Join us in Anaheim, California, March 15-20, 2025.

Anaheim Convention Center

800 W Katella Ave
Anaheim, CA 92802
United States

Event Venue Website
https://www.anaheim.net/1117/Anaheim-Convention-Center

Anaheim Convention Center

Anaheim Convention Center
800 W Katella Ave
Anaheim, CA 92802
United States

Circularity Challenges in Electronics Manufacturing

Date
-

IPC and iNEMI convened electronics industry experts in person on June 17 to discuss circularity challenges at the workshop, "There’s no end to a circle. A workshop on how to address circularity challenges in electronics manufacturing" at the Electronics Goes Green conference in Berlin. The fundamental goal of the workshop was to scope industry solutions to address pressing circularity challenges.

Please join us on July 17 at 10:00 AM EDT to learn more about the results of the workshop and next steps that will lead to work by iNEMI and IPC to assist industry with:

✅ Scope of Work statements for new industry standards, tools, and education

✅ Ideas for solutions to address the identified problems

✅ Next steps and additional workshop opportunities

Solutions driven by industry will help enable efficient and effective adoption of circularity through the electronics manufacturing value chain.

Presenters: Kelly Scanlon, IPC lead sustainability strategist and Mark Schaffer, project manager, iNEMI

Online Event

3000 Lakeside Dr.
Suite 105N
Bannockburn, IL 60015
United States

Online Event

Online Event
3000 Lakeside Dr.
Bannockburn, IL 60015
United States

IPC Hosts Advanced Packaging Symposium in Tokyo

The IPC Advanced Packaging Symposium held in Tokyo on June 7, 2024, brought together leading experts, policy makers and other stakeholders from the semiconductor industry to discuss cutting-edge advancements and collaborative strategies shaping the future of advanced packaging technologies.

Under the guidance of Matt Kelly, IPC chief technology officer and vice president of technology solutions, the symposium commenced with an opening address from John W. Mitchell, IPC president and CEO and Hiroyuki Watanabe, IPC Board member and executive director of global security strategic planning at NEC Corporation.

Highlights of the event included presentations from esteemed speakers including Hidemichi Shimizu, director of device industry and semiconductor strategy at Ministry of Economy, Trade and Industry (METI), who delved into Japan’s strategic initiatives for advanced packaging, emphasizing the country's pivotal role in driving innovation in the semiconductor landscape.

Raja Swaminathan, corporate vice president of advanced packaging at AMD, educated participants with insights into the future of AI hardware enabled by advanced packaging, sparking engaging discussions on how the Japanese ecosystem can spearhead this transformative drive.

Matt Kelly's presentation on IPC’s advanced packaging initiative shed light on the organization's efforts to facilitate collaboration and standardization within the industry, fostering a conducive environment for technological advancements and market growth.

"The industry stands on the brink of a new era in advanced packaging, driven by innovation and collaboration. IPC extends its heartfelt thanks to all the guests who participated in the symposium. IPC remains dedicated to supporting advanced packaging through its standards, education, advocacy efforts, providing platforms for experts to exchange ideas, share knowledge, and shape the future of advanced packaging technology,” remarked Kelly.

To learn more about IPC’s advanced packaging initiative, visit www.ipc.org/solutions/ipc-advanced-packaging-technology.

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.

 

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