Issue link: https://iconnect007.uberflip.com/i/1473479
JULY 2022 I PCB007 MAGAZINE 83 that changing the dynamic? Does that help equalize pricing and value? Peters: I haven't had conversations with com- panies to really figure out how that's going to impact them, so I'm not sure. Part of what we— meaning IPC, PCBA, USP—have been talking to the government about is that we need a bit of a stick and bit of a carrot. e stick could be the regulations, like Section 841 of the National Defense Authorization Act, that in summary, says, "You must buy so much U.S. content or domestic content." e carrot is things like the tax incentives. I don't know what that's based on. I would hope before they chose 25%, they had done some research, and companies said a 25% research credit would make companies more inclined to buy domestically because it does things like offsets their costs and lowers their risk. Johnson: All these dynamics are circling each other like a wheel. I want to help our readers understand what the hub is. Peters: When I think about that, I realize it's all about reliability—that I can acquire or build a part in a reasonable time. at means I need capabilities, capacity, materials, and especially workforce. en I must rely on them work- ing together correctly, which is a quality issue. Everything feeds into this. Even innovation feeds into this need for reliability. To me, that's the center. Can I get the part, can I make the part, and can I field it? Logistics is a part of that. Can I repair and replace it? Everything circles around that. at is the problem right now. We don't have reliability; we are facing supply chain issues—lack of materials, workforce, and capability here in the U.S. is all ties back to reliability. Johnson: It sounds like you are saying the EMS company is the hub. Much of this is being done so that when you get to that point of con- tact, where the chips are going on the boards, they've benefited from all the packaging issues, the new supply, the reliability, and the resiliency. It's coming into their facil- ity reliably, and on schedule. ey're getting new materials that gives new capabilities. All that R&D starts to show up there at the EMS company, where it all gets put together and shipped out as a functioning sub-assembly, or a complete box. Peters: If you're thinking about hub from the supply chain perspective, and where in the supply chain everything comes together, abso- lutely. I've always said the EMS companies have the hardest job, and they've got the most information of any of us. ey're the ones that know the most about what is going into that assembly. Too oen, neither the DoD nor the prime contractors know the full details of what's going in their materials. e company that knows the most about the assembly is the EMS company. From my standpoint, the EMS com- panies have an incredible amount of informa- tion, which is power. Johnson: Chris, thank you. Peters: My pleasure, Nolan. PCB007 I've always said the EMS companies have the hardest job, and they've got the most information of any of us.