Governments Struggling With ‘Silicon-to-Systems Approach’

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What do you do when you don’t know what to do? That is the conundrum facing U.S. government officials overseeing billions of dollars in strategic investments in the domestic microelectronics industry. Enormous grants are beginning to flow to the chips sector, and after years of IPC advocacy and education efforts, policymakers have gained a clearer picture of the rest of the electronics supply chain, including everything chips depend on to function.

But knowing what to do in a chips-centric world is proving more difficult than expected. In this interview, Chris Mitchell, IPC VP of global government relations, explains the range of challenges facing policymakers in the United States, Europe, and beyond, and IPC’s policy agenda to tackle them.

Over the past several years, IPC has worked to persuade government policymakers to support the entire electronics supply chain, not just semiconductor chips. How is that going?

Chris Mitchell: In response to the COVID pandemic and geopolitical tensions in East Asia, many people thought there would be fundamental changes in how the United States sources electronics. Indeed, we have seen growth domestically in electronics manufacturing and even greater increases in Mexico and in U.S.-friendly countries in Southeast Asia and South Asia.

But for all the concern about industrial resiliency and national security, the underlying realities of the global supply chain haven’t really changed. Asia continues to have some of the most advanced electronics manufacturing capabilities with abundant capacity and access to well-priced base materials. This makes Asia a prime destination for investment in new manufacturing facilities.

The key question for U.S. policymakers and the industry is which electronics technologies and systems should be manufactured in the U.S. given their strategic importance to national security, economic competitiveness, and/or technological leadership? What kind of investments are necessary to ensure such capabilities and capacities are put in place?

The question is not moot, and it is not a matter for tomorrow. Today, the U.S. is equipping its men and women in uniform with less than the very best technologies because key segments of the electronics manufacturing sector do not have the manufacturing capabilities that are state-of-the-practice in Asia.

To read the entire article, which appeared in the June 2024 SMT007 Magazine, click here.