IPC Encourages “Holistic Approach” to Electronics Supply Chains

Apr 09, 2021
| By kenschramko@ipc.org

The U.S. Government should increase its support of semiconductor manufacturing but also of the entire electronics ecosystem if it wants the United States to remain globally competitive, according to comments submitted this week by IPC and the U.S. Partnership for Assured Electronics (USPAE) to the U.S. Department of Commerce.

IPC and USPAE support U.S. President Joe Biden’s Executive Order to conduct a 100-day review of the semiconductor supply chain. However, “Semiconductor fabrication is just one segment in a sophisticated, global supply chain for electronics, and all segments of the industry must be strong for the entire ecosystem to thrive,” the comments said.

In the document, IPC and USPAE make five main points:

  • First, U.S. Government support of semiconductor manufacturing and advanced packaging is a vital U.S. strategic interest.
  • Second, the assembly and printed circuit board industries are a critical part of the semiconductor supply chain.
  • Third, U.S. electronics manufacturing has atrophied even as U.S. leadership in design has remained strong.
  • Fourth, the United States has an important role to play in cultivating an environment in which electronics manufacturing can thrive.
  • Finally, investments in electronics manufacturing broadly defined are essential to leveraging the significant investments the United States is making in the semiconductor industry.

“The failure of the United States to appreciate the strategic significance of electronics manufacturing has undermined the resiliency, competitiveness, and security of the U.S. electronics supply chain,” the comments conclude. “Competing globally in the years ahead will require the U.S. Government to adopt a more holistic approach to measuring the health of the electronics manufacturing ecosystem and appreciating the strong connection between the semiconductor supply chain and the wider PCB and assembly industries.”

Please let IPC know if you have any questions or comments on this issue.