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MARCH 2022 I SMT007 MAGAZINE 19 8 November 2021 KEY RECOMMENDATIONS In the Full Report, IPC offers a complete list of 28 recommendations to rebuild the U.S. advanced packaging ecosystem and reinforce the effort to expand domestic semiconductor manufacturing. The following recommendations are the most pressing for policymakers and the public to understand. 1. Domestic IC Substrate Capabilities Is Challenge #1: The expansion of advanced silicon production in North America by 2024 will require complementary expansion in regional substrate and assembly production, or else the effort to reduce supply chain risks will be for naught. The core challenge is the lack of infrastructure to support substrate manufacturing, long two-year equipment lead times, and the lack of skilled labor at competitive cost. The U.S. Government needs to help establish a domestic commercial IC-substrate capability and capacity. Failure to do so will lengthen, not shorten, the semiconductor and electronics supply chain. The cost of standing up a high-volume IC substrate manufacturing facility with cutting edge capabilities is likely to cost $1 billion or more. New technologies, however, potentially offer low-volume, high-mix manufacturers new capabilities at lower price points. 2. Support Domestic OSAT Champions: The U.S. Government should identify EMS/ODM companies and existing North American OSAT companies that could potentially fulfill assembly requirements and increase capacity for North American advanced packaging needs. However, significant investment in infrastructure will be needed including Class 10K (or better) cleanrooms and advanced manufacturing technologies. We encourage the U.S. Government to support this sector through new and existing programs, like the DoD Manufacturing Technology (ManTech) Program. 3. Critical Sectors: The U.S. Government should focus a significant portion of its own investments and those it stimulates on the Aerospace, Defense, and High-Performance Computing markets. The volumes and demands represented by these markets (worth a combined $90+ billion) will help justify the investments needed to increase North American capability and capacity. These markets are also the most critical to U.S. national and economic security. 4. National Electronics Manufacturing Institute: The U.S. Government should invest in a manufacturing institute for electronic interconnection that serves to support innovation in advanced packaging, as well as printed circuit board fabrication and electronic assembly. The institute should emphasize the importance of "factory of the future" manufacturing. 5. Allies and Friends: The United States can complement the development of domestic supply chains with the development of strong, trusted global partners. It would be unrealistic and impractical to onshore the entire electronics manufacturing supply chain or locate it within a single region. Efforts like those underway in the US-EU Trade and Technology Council are critical to the emergence of secure, resilient, and dynamic supply chains for critical sectors. 6. Pursue Next Generation Technologies: The U.S. Executive Branch must continue to perform its deep- dive analysis of the semiconductor and electronics supply chains. The participating agencies should leverage this report and other sources of data and analysis — and draw upon the expertise of all key stakeholders — to identify specific needs and requirements for near-term and long-term technologies spanning semiconductors, advanced packaging, and assembly. The focus should be on leapfrogging current technologies to achieve next-generation semiconductor advancements including Silicon Integrated Photonics. Playing catch-up is a strategy for perpetual competitive disadvantage.