Issue link: https://iconnect007.uberflip.com/i/1456062
MARCH 2022 I SMT007 MAGAZINE 25 need increasingly larger substrates that have more buildup layers. As those substrates get larger, they consume more substrate per assembly. Companies were afraid to invest too much and create overcapacity. Right now, we're constrained by the avail- ability of substrates in our markets. If you don't already have a relationship with a substrate sup- plier, you're not likely to get your substrates or be able to ship product. If you invest in substrate manufacturing here in the U.S., you want to make sure that you build a facility that two years from now will be state of the art. If it takes two years to put it in and you put in something for yesterday's mar- ket, what's the point of that? at's the billion- dollar question, if you will. Johnson: Is there anybody working on that right now? Vardaman: ere are some people looking at it. But is there enough volume here to justify a billion-dollar investment? Bless their hearts, I don't think the people on the Hill understand the complexity of this. Johnson: Are you involved in the conversations with the Hill? Vardaman: IPC has a great program to discuss those things. I believe that some of the infor- mation that we've put together has been pre- sented to people in government. We're trying to explain the complexity of the situation, but to my knowledge, nobody has held hearings on this. Maybe they need to hear from some experts and have this situation explained to the policymakers. I mean, this is not the first time we've talked about investing in the electronics industry in the U.S. We go in waves. It doesn't matter which political party you're talking about. People pay attention, and then 20 years later, they don't pay attention anymore. I've worked in and with many organizations set up for improving the competitiveness with the U.S. electronics industry, including Micro- electronics and Computer Technology Cor- poration, and Sematech. But we get going on it, and then we suffer from what I call "benign neglect." I've written articles about this. is is not a situation where you can throw some money at this problem for a year and then ignore it. is is a commitment to improv- ing the competitiveness of the industry. But it's also important to recognize that we have a global industry, a global supply chain. We need to figure out how to work better together for the benefit of everyone. Johnson: ere are other governments across the globe that are presumably investing in this tech- nology and the capability to manufacture key materials for electronics manufacture. Are we, in the free market U.S., holding ourselves back? Vardaman: Do you want to create an environ- ment where your electronics industry thrives? If so, then some think you ought to have subsi- dies. I'm not in favor of subsidies. I'm in favor of having skin in the game: tax credits, R&D tax credits, manufacturing tax credits, things like that. You want to encourage the manufacturer, Jan Vardaman