IPC laments that there is a huge gap in PCB and substrates in the United States

Latest update time：2024-03-02

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Source : Content compiled by semiconductor industry observation (ID: ic bank ) from fierceelectronics , thank you.

Although the U.S. Chips and Science Act provides $39 billion in incentives for domestic chip manufacturing, industry concerns are growing that the bill does not go far enough in supporting the manufacturing of printed circuit boards (PCBs) and integrated circuit substrates.

PCB and IC substrate production is critical to the manufacturing of all electronic products, but some believe it has been ignored by lawmakers and regulators, who have focused most of their attention on promoting domestic chip research and production. To deal with the early critical stage pipeline of complex electronic products.

"The CHIPS Act is just the first step. Unless we insist on building a strong ecosystem, the CHIPS Act will be meaningless," Chris Mitchell, IPC's vice president of global government relations, said in an interview with Fierce Electronics. “We should not fool ourselves into being a leader in the chip industry without being a leader in other areas of electronics. "

IPC is a nonprofit trade association representing 3,000 companies in the electronics industry, half of which are located in the United States. Approximately 135,000 people are employed in the electronics manufacturing industry in the United States.

He said the United States lags far behind China in both PCB and substrate production. "The United States has become a leader in designing electronic systems that we cannot build," he said. "That's not a winning strategy... As a country, we have to convince people how important this is. China understands that. They understand what PCBs are."

He also said that the inability to produce advanced PCBs leads to defense vulnerabilities. "The United States is increasingly arming its warfighters with inferior military technology because it cannot domestically produce state-of-the-art printed circuit boards to house the most sophisticated semiconductor chips," Mitchell added. Semiconductor Leadership and Electronics Manufacturing vulnerability will increase. "

HR 3249, a bill filed in the U.S. House of Representatives, calls for $3 billion in additional incentives for domestic PCB and substrate production, but its prospects are uncertain, especially as Congress is struggling to approve the overall government budget for 2024 and faces a long period of time. List of strings. From border security to thorny issues like aid to Israel and Ukraine.

The bill, introduced in May 2023 by Rep. Blake Moore, R-Utah, has received several bipartisan co-sponsors, including most recently Rep. Ro Khanna, D-Calif., but the bill remains on hold. Energy and Commerce Subcommittee.

Mitchell said the bill prioritizes manufacturers with workforce training programs, a major concern among IPC members. IPC data shows that turnover among production-level workers ranges from 20% to 40% in a typical year. The IPC said there are currently 12,000 job vacancies among the 135,000 employees in the U.S. electronics manufacturing services industry. The PCB workforce is smaller, with more than 26,000 workers, but faces more than 700 job openings.

Mitchell said the current state of the U.S. advanced packaging industry cannot meet the expected surge in chips in the next few years, especially the growth of artificial intelligence chips. "These things are interconnected," he said. "Electronic interconnection is important. It's a marginalized capability in America, and unless we invest in it, America will find itself struggling to make electronics. We have an industry that's in dire need of talent. These are great careers. Job, no college degree required.”

Mitchell said the $3 billion in incentives specified in the House bill is "a fraction of the cost of the CHIPS Act." But he acknowledged that it faces a difficult situation, with congressional Republicans expressing what he called "chip fatigue" and Democrats voicing concerns about tax incentives.

IPC officially filed this week to support the "Notice of Funding Opportunities" issued by the US CHIPS R&D Office (under the Department of Commerce NIST) to support the research and development of domestic advanced packaging substrates and substrate materials. NOFO will provide the company with $300 million in multiple awards of up to $100 million each over five years.

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https://www.fierceelectronics.com/electronics/ipc-trade-group-sees-big-pcb-substrate-need-us

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