With the CHIPS & Science Act in place, it’s now time push through the Protecting Circuit Boards and Substrates Act

As both a longtime electronics industry professional and representative of Cascade Systems Technology (CST) – I’ve spent a good amount of the last two years advocating for aggressive investment in state-side semiconductor research, development, and manufacturing.

Lawmakers and the administration in Washington, DC also realized merits of doing so, as evidenced by the recently enacted CHIPS and Science Act, which will eventually inject what will be over $52 billion in the chip-side of the electronics ecosystem. (A few of the organizations already slated to receive funding include Intel, Samsung, TSMC, Micron, GlobalFoundries, MicroChip, Polar Semiconductor, among others.)

This represents a promising start, but, as I say, it’s only the beginning of what’s needed to help ensure a secure, healthy, domestic semiconductor supply chain.

As our colleagues and friends in the Printed Circuit Board Association (PCBAA) have rightly expressed in their rallying call, “Chips don’t float!” In other words — coupled with top-down approach of the CHIPS Act — we also need bottom-up investments in energizing, expanding, and rendering more competitive the plethora of technology and service companies that enable semiconductors in the first place. A complete supply chain is needed to bring the promise of these semiconductors to life.

Enter the Protecting Circuit Boards & Substrates Act, which is now making its way through the halls of power.

I hope, after reading more about this next important step, others in our ecosystem will join me in supporting this initiative and bringing it, too, to fruition.

WHAT IS THE PROTECTING CIRCUIT BOARDS AND SUBSTRATES ACT?

The Protecting Circuit Boards and Substrates Act, which as of this writing is currently under development in the U.S. Congress, aims to bolster domestic production of foundational technology like printed circuit boards (PCBs) and substrates – in a concerted effort to strengthen, secure, and stabilize the supply chain for these critical electronics.

Introduced by Congresswoman Anna Eshoo (California’s 16^th District) and Blake Moore (Utah’s 1^st District), this bipartisan legislation seeks to address the need for significant onshoring of PCB and substrate manufacturing, which has largely left the U.S. over the last few decades – and left our nation vulnerable to supply chain disruptions and potential tampering by foreign adversaries. Currently, only about 4% of PCBs are manufactured domestically.

While the incentives or other funding opportunities that wind up in the final draft of the bill are essentially TBD, the bill’s current construct includes incentives for the domestic production and research of PCBs. More specifically, it proposes a 25% tax credit for entities that purchase PCBs manufactured in the United States and establishes a financial assistance program, modeled on the CHIPS and Science Act, run by the Commerce Department.

As of June 2024, the Protecting Circuit Boards and Substrates Act has been introduced in the House of Representatives and referred to several committees, including the Committee on Ways and Means, Energy and Commerce, and Science, Space, and Technology. The bill’s relatively good progress (compared to the usual pace of things) reflects a growing recognition of the need to reduce dependence on foreign suppliers, particularly from China, and to ensure the integrity and security of electronic components vital to both civilian and military applications.

Ways to Advocate for the Bill’s Passage
At minimum, readers of this blog and my electronics industry colleagues should keep an eye on this bill — I know CST will be doing so! – in case equipment purchases now under consideration might qualify for incentives if/when the bill becomes law. (After all, tax credits can be significant and are rarely if ever retroactive, meaning you typically cannot receive a tax break on items already purchased.) And, who knows: There may also be other benefits baked into this bill when it reaches the President’s desk, including support of workforce development, incentives for sourcing materials (not just equipment) from U.S. suppliers, “extra credit” for energy-efficiency measures, and so on.

Even better, I would encourage my peers in the electronics sphere to help nudge this measure along – by reaching out to one’s representatives in Congress. To that end, here are some things you/your organization can do to lend your support to the bill:

1) Direct Outreach to Legislators: Contact your Federal representatives (even better, those on key committees like Ways and Means, Energy and Commerce, and Science, Space & Technology) with a phone call, letter, or email explaining who you are, how you fit into the electronics ecosystem, how many people you employ/jobs you create (always important to government types!), and why you support the Protecting Circuit Boards and Substrates Act. Then be sure to ask them to support it, too. Here’s a list of West Coast representatives, to save you some time. And, also, a letter you can modify/customize to fit your situation.

2) Invite Your Reps to Visit/Tour Your Facility: When members of Congress are on their home turf, they often welcome opportunities to visit with, hear the concerns of the successful businesses and leaders in their Districts. Be one of them by offering a tour, during which you can ask them to support the Protecting Circuit Boards and Substrates Act in person. You might also mention your willingness to participate as an expert/industry member in public hearings on the topic, if any such forums are on the horizon.

3) Use Your Communications Spread the Word Near and Far: Every tech company has a vast network of contacts, suppliers, customers, not to mention employees. Let them know what the Protecting Circuit Boards and Substrates Act is, why it’s important, and how they can promote its passage as well. You can save them time and make it easy for them by providing phone numbers to call and emails to ping; petitions can still be a method of accumulating names and momentum, as well.

4) Leverage Public Relations: Write op-eds, press releases, blog posts, and social media to publicize your support for the bill – highlight its positive impact on both the broad industry and your own business.

By following these steps, I hope my colleagues, peers, and others in the electronics industry (including rank and file team members of tech companies and ordinary constituents who grasp and support this effort!) can effectively advocate for the Protecting Circuit Boards and Substrates Act — potentially influencing its passage and contributing to the revitalization of the domestic electronics manufacturing supply chain.

–  Shantanu R. Gupta,
President & CEO, Cascade Systems Technology

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