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American Made Advocacy: Congress Must Handle Supply Chain Challenges in 2024

It’s easy to get distracted in an election year. A constant stream of polls, primaries, and political prognostications will surely dominate the media cycle. Elections are important, but they should not distract the 118th Congress from the important work of securing our fragile supply chains and rebuilding microelectronics manufacturing capacity on our own shores.

A recent Department of Defense report demonstrates why this is so important. The first-ever National Defense Industrial Strategy focuses on creating resilient supply chains including microelectronics. The Pentagon sees the risks of foreign sourcing and has identified the need to expand domestic production and invest in a skilled workforce.

World events further underscore these conclusions. Recent shipping disruptions in the Red Sea are being felt all over the world, and are a reminder that total dependence on foreign sourcing is risky—and avoidable.

Understanding these stakes, here are three things Congress should do in 2024:

1. Fund and deploy the DPAI.

Last year’s invocation of the Defense Production Act was a win for American-made printed circuit boards and IC substrates. After years of offshoring and contraction, the government recognized that these technologies are critical to U.S. national security and economic viability. The Defense Production Act Investment Program (DPAI) is how this support is made real. Congress has obligated approximately $150 million for investments in microelectronics using the Defense Production Act. Two recent awards include:

• $46.2 million to GreenSource Fabrication LLC via the DPAI. The award will enhance production capabilities at a manufacturing facility of state-of-the-art IC substrates, high-density and ultra high-density interconnect, and advanced packaging.
• $39.9 million via the DPAI to Calumet Electronics Corporation to enhance capabilities to produce high-density build-up (HDBU) substrates, which include high-density interconnect printed circuit board cores and HDBU layers.

While these actions are helpful, America needs to make a sustained, robust investment in manufacturing the microelectronics that power all aspects of modern life. That’s why PCBAA and IPC have jointly called on Congressional appropriators to increase DPAI funding for microelectronics in 2024 and beyond.

2. Support the PCBS Act.

Thanks to Reps. Anna Eshoo (D-CA-16) and Blake Moore (R-UT-1), the House is now considering the “Protecting Circuit Boards & Substrates Act,” legislation that would provide $3 billion for R&D, facilities, and workforce development along with a 25% tax incentive for companies buying American-made PCBs and substrates. This bill continues to gain co-sponsors and the attention of policymakers. More support is needed.

3. Bring the Senate Into the Conversation.

For several years, senators from both sides of the aisle who understand the synergy of national security and industrial policy have led the fight to bring high-tech manufacturing back to the United States. The PCBS Act needs a Senate companion bill, and the same champions who led the CHIPS fight should step up and help industry secure the rest of the microelectronics ecosystem.

There are plenty of issues for our elected representatives to disagree on, but rebuilding industrial capacity and securing our supply chains should be a bipartisan priority. This is the year to act.

The PCBAA believes in and fights for market fairness and a level playing field on which U.S. PCB and substrate manufacturers can compete and win. This is the year to join our effort by visiting us online or contacting me directly.

This column originally appeared in the February 2024 issue of PCB007 Magazine.