IPC and ASD Convene Summit on European Defense Electronics

IPC Global Advocacy Report – LinkedIn Edition – June 16, 2025  

Scroll down for your five-minute IPC Global Advocacy Report, LinkedIn Edition – this week including news from the USA, Europe, Mexico, Vietnam, and Japan. Let us know how these or any public policy issues are affecting your business.

IPC and ASD Convene Summit on European Defense Electronics

Last week, IPC and the Aerospace, Security and Defence Industries Association of Europe (ASD) jointly hosted the first IPC-ASD Europe Defense Electronics Summit, bringing together 70 leaders from across the electronics manufacturing supply chain.

Participants included OEMs, EMS providers, PCB and semiconductor manufacturers, and wire harness suppliers, alongside 10 senior policymakers, including representatives from the Cabinet of the Commissioner for Defense and Space and three European Commission directorates general.

The discussion focused on the challenges facing Europe’s defense electronics base and the urgent need for a more resilient ecosystem. Industry leaders emphasized the strategic importance of electronics to Europe’s security goals and called for this to be reflected in future policy and investment decisions.

Check out the many LinkedIn posts about the summit and delve into the recent IPC white paper on European defense electronics. IPC Contact: Alison James

U.S.-China Deal Maintains Tariffs, Eases Some Exports

The Trump administration last week reached a new trade “framework” with China, signaling a shift in tone while leaving many details still unresolved. While the text has not yet been released, reports indicate the U.S. will maintain combined tariffs up to 55% on Chinese imports, which reflects the status quo as of 14 May for many electronics-related imports.

In return, China has reportedly agreed to resume exports of rare earth minerals, a key supply chain concern for electronics and other sectors. The U.S. also is expected to ease certain export controls on advanced semiconductors, although the details remain unclear.

IPC welcomes the progress but remains concerned about ongoing compliance burdens and supply chain uncertainties facing electronics manufacturers. We continue to call for a stable, strategic trade policy that strengthens America’s electronics supply chains. IPC Contact: Richard Cappetto    

QUOTE OF THE WEEK       

“The electronics manufacturing services industry has always been characterized by its ability to adapt to changing market conditions and customer requirements. The current challenge of balancing global efficiency with regional resilience is simply the latest chapter in this ongoing evolution. By embracing both approaches simultaneously, EMS companies can build more robust, responsive, and ultimately more successful businesses for the future.”   

— Sanjay Huprikar , IPC’s Chief Global Officer, in a new IPC Blog post

 FY26 Defense Bill May Be Positive for Electronics

The U.S. House Appropriations Committee last week approved its FY26 defense spending bill, with a heavy emphasis on strategic competition with China.

The bill includes $321 million for Defense Production Act (DPA) purchases, an encouraging topline, but with no specifics yet on how the funds will be allocated. The bill also includes $97.7 million for the Defense Credit Program to invest in the industrial base, a sign that Congress is eyeing continued support for U.S. manufacturing capabilities.

These programs have previously supported reshoring efforts in printed circuit boards (PCBs) and advanced packaging, which are critical technologies that underpin defense readiness.

IPC will be watching closely and advocating for PCBs, advanced packaging, and other electronics technologies to be part of the defense funding conversation.

IPC Contact: Richard Cappetto    

Report Highlights Mexico’s Growing Role in Post-Tariff Supply Chains

A new report from Bank of America finds that Mexico is emerging as a key beneficiary of shifting global supply chains in response to U.S. tariffs. According to Investopedia, while the goal of recent U.S. trade measures has been to boost domestic manufacturing, only 20% of analysts surveyed expect significant reshoring to the U.S.

Instead, many firms are opting for nearshoring to Mexico, particularly in sectors like electronics, transportation, and labor-intensive manufacturing. Analysts point to Mexico’s geographic proximity, USMCA trade advantages, and expanding industrial base as key drivers.

For the electronics industry, these trends underscore Mexico’s growing importance as a regional hub for production and supply chain realignment. IPC Contact: Lorena Villanueva

Vietnam and Japan Expand Cooperation on Supporting Industries

Vietnam and Japan are stepping up efforts to strengthen their mutually supporting industries, aiming to boost localization and reduce reliance on imported components. As reported by VnEconomy, both governments have agreed to expand cooperation in areas such as materials, components, and precision manufacturing. The partnership includes technical training, business matching, and support for SMEs, factors that could improve local capacity and support a more resilient regional supply chain.

These efforts are especially relevant to electronics manufacturers seeking to localize operations while maintaining global standards. IPC Contact: Chris Mitchell

Learn More and Get Involved in IPC Industry Advocacy

All over the world, IPC seeks opportunities to educate, inform and influence government policymakers on decisions that affect our industry.

But our success depends on active support and participation from attentive leaders like you! To learn more and get involved:

• Reach out to speak with us. We’re listening.
• Find us and follow us on LinkedIn.
• Peruse our global Advocacy pages on IPC.org and follow the links to information about our work in North America, Europe, and Asia.
• Subscribe to receive the IPC Global Advocacy Report by email.  
• Get ready to make your voice heard!

 Have a great week, and please contact us if you have any questions or insights to share.