IPC International Community magazine an association member publication
Issue link: https://iconnect007.uberflip.com/i/1497169
IPC COMMUNITY 60 SPRING 2023 • Setting up a framework to substantially increase production capacity by 2030 • Developing an in-depth understanding of global semiconductor supply chains • Addressing skills A Three-pillar Structure This is all based on a three-pillar structure to strengthen, secure, and monitor the EU's posi- tion, funding, and progress: 1. Strengthen the EU's position in the pre-production phase of semiconductor technologies. Provide both research and innovation funding and seek to strengthen the industrial ecosystem. 2. Improve the EU's security of supply. This pillar introduces guiding rules for investment and lays down criteria for state aid approval for so-called "first-of-a- kind facilities." 3. Provide measures to monitor semiconductor supply chains and antici- pate shortages. This includes measures to facilitate a crisis coordination mechanism between European Union member states and proposes strong European Commission powers during times of crisis. Each of the pillars and objectives has not been without controversy during the insti- tutional process. The intent of the European Commission to better understand electronics supply chains, to put in place mechanisms to avert future crises, and to ensure supply for end industries can be a worthy objective, but those mechanisms should not become obstacles for companies. The complexity of those supply chains, and the range of chips needed by Euro- pean end industries, make this no easy task. Throughout the process there has been a continual effort toward broadening the scope of what is, in reality, a legal framework. This framework will provide the direction for implementation activities and industry oppor- tunities in the coming years. What is seen as important and strategic lays the basis for future deployment of activities. How IPC Makes a Difference IPC's government relations activities have been focused on working with political lead- ers and decision-makers of the EU institutions during the different stages of the legislative process. We want to better articulate the role and importance of a legal frame- work which empowers the region to build out capacity and capabil- ities in packaging, PCB fabrication, and final package assembly and testing. For a resilient European manufacturing ecosystem, Europe needs chips for current and future markets, access to inputs, and a legislative and regulatory environ- ment that bolsters the industry from silicon to system. This is our continual stance. In this process, we have seen leading Euro- pean politicians hear IPC's arguments and then take action that includes suggested language on packaging, broader references to the value chain around semiconductors, and the need to ensure that benefits from the European Chips Act are spread through the member states. The importance of extending the scope of the legal framework of the European Chips Act for the future of the electronics industry should not be underestimated. Throughout the process there has been a continual effort toward broad- ening the scope of what is, in reality, a legal framework.