Deciphering the Presidential Determination

On March 27, 2023, U.S. President Biden issued a presidential determination that, IPC states, “prioritizes the domestic development of printed circuit boards (PCBs) and advanced packaging, including IC substrates, under Title III of the Defense Production Act (DPA).

IPC welcomes this action, but what does this really mean? IPC vice president of global government relations, Chris Mitchell, joins Nolan Johnson to clarify what a presidential determination is, what it means to both the industry and individual companies.

Audio Transcript:

IPC’s Chris Mitchell, vice president of global government relations, explains the March 27 Presidential Determination for Printed Circuit Boards and Advanced Packaging.

Nolan Johnson: Hi, Nolan Johnson here for Real Time with… I-Connect007, and I have the pleasure of speaking with Chris Mitchell. He is the vice president of global government relations for IPC. Chris, welcome.

Chris Mitchell: Thanks, Nolan. It's always great to be with you.

Johnson: On Monday this week, March 27, IPC put out a press release welcoming the U.S. presidential determination prioritizing domestic development of printed circuit boards and IC substrates. That's pretty newsy.

Mitchell: Yes, it was. A big development and one that's been—quite frankly—a long time in coming. We're exuberant that it was issued on Monday and it's notable that it came out, really, on the heels of an announcement on Friday, while the president was in Canada that the U.S. would be committing, through the Defense Production Act, $50 million for the strengthening of the U.S. PCB and advanced packaging industries.

Johnson: How is a determination different from an executive order?

Mitchell: First, the Defense Production Act, over its 70-plus year history, has evolved in order to allow the president and the U.S. government to more broadly address any number of Industrial Base issues. In this case, the president issued a presidential determination. This comes through in the form of a memorandum to the secretary of defense. And it is the president's mechanism for, one, identifying an Industrial Base need as a strategic national priority in the interests of our nation's defense. And in addition, providing exemptions to certain requirements that many industries under the Defense Production Act program would normally need to meet in order to secure the kind of benefits and opportunities that that the program can afford. I think what we see in this presidential determination is, at the very highest levels of the U.S. government for the first time—at least in recent history—an affirmation that the printed circuit board industry is of significant strategic importance to the nation. By designating the industry as having that strategic national importance, it then gives the industry the ability to leverage the Defense Production Act to ramp up production and innovation.

Johnson: Now, this is the first time that's coming from the president himself. However, there has been quite a bit of activity in the past few months that have telegraphed this.

Mitchell: Yes. But clearly the government's been preparing for this. The Defense Department is not alone, but certainly taking the lead in helping to provide a greater level of support for the industry given the significant vulnerabilities that exist.

Johnson: How do you see this affecting the CHIPS Act and any subsequent legislation following behind, such as a new version of last Congress's HR 7677?


Suggested Items

PFAS: Sounding the Alarm

06/02/2023 | Suhani Chitalia, IPC Environmental Regulatory Affairs Manager
Man-made chemicals known as PFAS have regulators busy trying to address previous releases and prevent future releases of this chemical into the environment from widespread uses in manufacturing processes and products used across the globe. PFAS chemicals tend to be persistent in the environment and they have been used long enough and in enough applications that their unwanted presence in the environment has public health policymakers concerned.

I-Connect007 Editor’s Choice: Five Must-Reads for the Week

06/02/2023 | Nolan Johnson, I-Connect007
This week has been both speedy and newsy. Of course, those two characteristics often seem to travel as a pair, don’t they? A four-day week here in the United States, accompanied by a wave of high-impact news from a wide variety of sources, would suggest that readers could be expected to spread out all over the news map. Not so much, judging from readership numbers; folks all found their highest value in the same type of news coverage. This week's list of must-reads is dominated by market reports as a result of that focused readership. On our list, we have PCB fabrication and EMS book-to-bill reports, a 10-year market forecast report, and a supply chain sentiment report. In addition, readers flocked to the EWPTE show coverage. Finally, we saw significant reader interest in the most recent podcast on sustainability in our logistical operations.

I-Connect007 Editor’s Choice: Five Must-Reads for the Week

05/26/2023 | Andy Shaughnessy, Design007 Magazine
It’s been a busy week here at I-Connect007, an even busier week for PCB designers and manufacturers. This week, we published a variety of articles and news items. In this week’s wrap-up, we have an interview with Rex Rozario that is basically a historical look at the birth of commercial PCB manufacturing, and his involvement with the Rolling Stones in their early days. Then we bring you a look at trends in freight costs, which are—fortunately—heading southward right now.

Copyright © 2023 I-Connect007 | IPC Publishing Group Inc. All rights reserved.