IPC International Community magazine an association member publication
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IPC COMMUNITY 59 SPRING 2023 Electronics and data, it seems, are the "oil" of the 21st century, and the high strategic importance of both elements focuses efforts to secure supply by building regional bases for high value-added activities and intensifying cooperation with strategic trading partners. The European Union's proposal for legis- lation regarding semiconductors was issued in February 2022 against the backdrop of global chip shortages, a global "subsidy race" in the world's main producing regions, and a renewed EU industrial policy aiming to deliver on the bloc's ambitious digital and green transition. It is part of the region's evolv- ing "strategic autonomy" a g e n d a : r e d u c i n g t h e c o n t i n e n t 's v u l n e r a b i l i t y t o supply chain disruptions and geopo- litical risks. At this time, the proposed legis- lation is in the final months of negotiation in the inter-institutional process under which European legislation is formed. With announcements of confirmed and rumored investments by well-known chip com- panies, it's clear that a leading intention behind the European Chips Act is to attract high-end semiconductor manufacturing to produce the most advanced chips. From the start, IPC has made strong arguments that advanced pack- aging plays an increasingly important role in chip performance and supply chain resiliency. We continue to be a leading voice in the nego- tiations to argue that the Chips Act framework must enable the growth of regional capacities and capabilities in this field and every effort must be made to leverage investments that will deliver benefits across the entire electronics manufacturing value chain. In other words, it is about the electronics ecosystem, and every link in the value chain is important. It is worth stepping back and looking at the European Chips Act in more detail. What does it involve? With a com- plex set of challenges, the proposal is intended to pro- vide responses in the short, medium, and long term. Its pur- pose is to create a state-of-the-art European chip ecosystem that includes increased production and resilience in semi- conductor technologies and applications. To fulfill this vision, the European chips strat- egy is formed around a series of objectives which include: • Strengthening the region's research and technology leadership • Reinforcing its capacity to innovate in the design, manufacturing, and packaging of advanced chips W hile the U.S. government has begun to implement its Chips and Science Act, the European Union is deliberatively moving to issue its own legis- lation. Rising geopolitical tensions and the supply chain vulnerabilities exposed during the heights of the COVID pandemic, followed by the Russian invasion of Ukraine, accelerated a move in the European Union now happening throughout all global regions—taking stock of strategic assets and vulnerabilities. From the start, IPC has made strong arguments that advanced packaging plays an increasingly important role in chip performance and supply chain resiliency.