The Microcircuit Ecosystem — The Great Competition

The Microcircuit Ecosystem — The Great Competition

The Great Power Competition is back.  2022 National Defense Strategy – China is the Pacing Threat and Russia is an Acute Threat.   U.S. Trade Representative estimated in 2018 that Chinese theft of American I.P., costs U.S. firms between $225 billion and $600 billion every year (National Review), and U.S. National Debt continues to erode our economy at an alarming rate: $31.3Trillion (Oct 25th, 2022) - that equates to $247,822 for every Taxpayer.  

A National Supply Chain Strategy is critical for the U.S. to remain in this competition to win.  To execute, we need a workforce equipped with the skills and capabilities to design, implement, and manage a National Supply Chain System that will provide both economic and national security crucial to maintaining superiority in a rapidly changing world where data is the new oil and microelectronics encompass the technical capabilities that allow data to be processed at speeds which will determine the outcome of future warfare.   
ASCM NYC LI is focused on ensuring that Supply Chain Managers are ready to answer the call to duty through our education and certification programs.  Will Marsh, Vice President of Government Relations for TTM Technologies and President of the Printed Circuit Board Association of America (PCBAA) is hard at work building relationships in Washington DC to ensure laws are written, and funding is allocated to achieve U.S. superiority through the “onshoring” of the critical Microelectronic technologies including chips and boards where the chips are mounted.   
In an article below that was originally printed on Oct 17th, 2022 in I-Connect007, Will provides a PCB Legislative Update on HR 7677, detailing progress to ensure a “microelectronics ecosystem” which will clearly provide the U.S. with an advantage in this Power Competition.   

“Electronic industry association leaders like IPC, PCBAA, and USPAE have been trekking to Capitol Hill almost weekly this year to reinforce the dire state of the industry and seek additional co-sponsors for HR 7677, a bill supporting the American printed circuit board industry. However, with only 78 days until the end of the 117th Congress, it is not likely that anything will move by the end of this session. 
Introduced into the U.S. House of Representatives in May, HR 7677, “Supporting the American Printed Circuit Boards Act of 2022,” is a testament to the domestic PCB, PCBA, and critical material supplier industry’s ability to advocate for sound legislation to stop the erosion of a once robust domestic PCB industry.
The bill was originally sponsored by U.S. Reps. Ann Eshoo and Blake Moore. It was purposefully structured to resemble the more famous CHIPS and Science Act.

It has two primary components: 
•  Three billion dollars in incentives, grants, and loans for facilities, equipment, workforce development, and R&D.
•  A 25% tax credit for U.S. companies to buy U.S. made PCBs.

At one point in the process for HR 7677, the tax credit was removed from the bill. This was more a procedural issue, according to Will Marsh, Vice President at TTM Technologies, and President of PCBAA. This move potentially enabled the tax credit to attach to other legislation, rather than a dilution of the bill itself. 
Industry and congressional sponsors remain confident there will be a reintroduction of all the bill’s primary components within the first week of the newly sworn in 118th Congress in January 2023, Marsh explains. 
“It is important to remember that we face a ‘microelectronics ecosystem’ issue,” he says. “And, as we like to say in the PCBAA, ‘chips don’t float.’”

To learn more about the genesis of the bill, read “Printed Circuit Boards: Past the Lobby and Onto the Floor,” an exclusive interview with U.S. Rep. Blake Moore (R-Utah), and Travis Kelly, CEO of Isola Group and chairman of PCBAA, which appeared in the July 2022 issue of PCB007 Magazine.”
Republished with permission of the author.
         
About the Authors

Will Marsh joined TTM in September 2020 as a Vice President of Government Relations (G.R.). His primary responsibility is to stand up the new G.R. function that is composed of many parts; leading federal advocacy efforts to influence congress, TTM Political Action Committee, State and Local incentives, business development & customer relationships where he aligns TTM priorities with federal programs and strategies. TTM (NASDAQ: TTMI), with 2021 sales of $2.2 billion, is a global leader in printed circuit boards and advanced Radio Frequency components specializing in aerospace & defense, automotive, medical, industrial, computing and other commercial and government markets throughout the world. TTM has 19,000 employees worldwide with 6,000 in the U.S. at 20 sites in 12 states. Will maximizes 27 years of Washington, DC experience, having served in the United States House of Representatives on both committee staff and on members’ personal staff. He represented over 90 public and private companies as an external consultant, business development manager, and government relations expert. Will earned his bachelor’s degree in Political Science from Colorado State University and attended the Naval War College. He resides in Virginia with his wife and three children. 


Ronald Tabbitas, is on the ASCM NYC LI Director of Local Manufacturing Relations/Programs, and is Director of Government Compliance at TTM Technologies, with responsibility for all company regulatory compliance and government audit programs. With a long history in supply chain leadership in aerospace and defense, Ron has provided companies such as Northrup Grumman / Lockheed Martin and BAE Systems his leadership expertise, resulting in citations in ‘industry bench mark’ and ‘Best in Class.’ Ron Tabbitas is also an adjunct professor at St. Joseph’s University, sharing his advanced skills and experience while instructing graduate level courses such as Operations and Quality Management, Problem Solving and Critical Thinking for Professionals.