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BANNOCKBURN, Ill., USA, March 27, 2023 – IPC, the global association representing the electronics manufacturing industry, welcomes the action of U.S. President Joe Biden today in issuing a “presidential determination” that prioritizes the domestic development of printed circuit boards (PCBs) and advanced packaging, including IC substrates, under Title III of the Defense Production Act (DPA).
IPC, along with partners including the U.S. Partnership for Assured Electronics (USPAE) and the PCB Association of America (PCBAA), has been calling on President Biden to address urgent industrial base vulnerabilities and deliver on the promise of the CHIPS Act through a “silicon-to-systems” innovation strategy, which today’s determination will help achieve.
IPC President and CEO John Mitchell said, “Increasing domestic chips production without bolstering the manufacture of cutting-edge PCBs and IC substrates risks lengthening the semiconductor supply chain, because many of the chips made in California or Ohio will still have to be sent outside of the United States for packaging and assembly into finished products.
“The erosion of U.S. PCB capabilities and capacity has compromised national and economic security, as the U.S. share of global PCB production has fallen from 30% to 4%, making the nation heavily reliant on a global supply chain that is itself in turmoil,” Mitchell added. “Today’s presidential determination is a key step toward moving beyond a silicon-only mindset and rebuilding the wider U.S. electronics manufacturing industry. We look forward to working with Congress and the Executive Branch to ensure this effort is fully funded and implemented.”
On Friday, President Biden announced an additional $50 million in Defense Production Act funding for U.S. and Canadian companies to invest in advanced packaging for semiconductors and printed circuit boards. On Feb. 23, Commerce Secretary Gina Raimondo said the U.S. will develop multiple high-volume advanced packaging facilities and become a global leader in chip packaging technologies. The Biden administration’s year-long assessment of the ICT supply chain, released in February 2022, highlighted the importance of PCB fabrication and assembly in electronics manufacturing and recommended that government programs like Title III be used to bolster the strength of U.S. PCB manufacturers. The issuance of this presidential determination is a crucial first step towards securing the domestic supply of these critical electronic components.
IPC looks forward to continuing to work with the Biden administration, the U.S. Congress, and industry partners to support long-term policy and funding to rebuild the entire ecosystem that sustains innovative, resilient, and secure electronics manufacturing.
For more information, visit www.IPC.org.