IPC Commends Biden Administration on Its 100-Day Review of Strategic Supply Chains, Including Electronics, Offers Recommendations to Drive Further Progress

June 9, 2021 WNIElectronics

IPC commends the Biden administration for completing its 100-day review of strategically important supply chains and for outlining bold actions to strengthen U.S. semiconductor manufacturing and ensure the availability of minerals critical to electronics manufacturing.

The results of the 100-day review are captured in an 11-page White House fact sheet and a 250-page report, released today. IPC believes the review has been helpful in bringing key issues into focus, including the importance of strengthening the entire electronics manufacturing ecosystem. The entire supply chain includes printed circuit board (PCB) and PCB assembly manufacturing; access to raw materials; and next-generation “advanced packaging” of substrate-based multichip modules.

IPC’s recommendations to the administration – many of which are reflected in the documents published today – are summarized in a recent letter to U.S. Commerce Secretary Gina Raimondo.

“For far too long, the U.S. Government has neglected its important role in strengthening the nation’s manufacturing base and instead has watched passively as other countries around the world invested in their manufacturing capabilities,” said IPC CEO John Mitchell. “U.S. electronics manufacturers appreciate the Biden administration’s decision to highlight the longstanding and significant challenges facing the U.S. electronics manufacturing base as a result.”

“This report outlines important, initial steps to address the current crisis and reaffirms the President’s commitment to preserve and extend U.S. leadership in innovation and advanced manufacturing. But addressing America’s manufacturing capacity decline will be a long process,” Mitchell added. “We look forward to working with the Executive Branch, Congress, and an array of stakeholders to reverse the erosion of the U.S. electronics industrial base and related risks to economic and national security.”

IPC and the electronics manufacturers it represents support the following actions being taken or proposed by the Biden administration:

Address semiconductor shortages by expanding U.S. production of chips; creating a task force to address supply chain challenges in several electronics-dependent sectors; and investing in domestic “advanced packaging” capabilities, of which printed circuit boards (PCBs) and PCB assembly manufacturers are critical components.
Adjust federal acquisition policies to identify and support procurement of critical products like PCBs and printed circuit board assemblies.
Bolster investment in domestic and international production of critical minerals, most notably though the Defense Production Act.
Strengthen U.S. apprenticeships programs to ensure a skilled workforce.
Promote international cooperation to support supply chain resiliency, which will be critical because no nation in today’s world can be completely self-sufficient in electronics and manufacturing.
Ensure a level playing field by addressing long-standing trade disputes.

In addition, IPC supports other efforts outlined by the Biden administration as part of this announcement to strengthen the U.S. industrial base, including:

Appropriation of $50 billion in dedicated funding for semiconductor manufacturing and R&D;
Establishment of a new Commerce Department Supply Chain Resilience Program, backed by no less than $50 billion in federal funding;
Funding under the Defense Production Act to support manufacturing resilience in critical industries;
Creation of sector-specific workforce education and training programs; and
Support of the R&D and capital needs of small- and medium-sized businesses that that are the foundation of the U.S. electronics manufacturing base.