Defense Production Act: US wants to strengthen domestic PCB production

with U.S. Chips Act Failing that, the government also wants to strengthen PCB manufacturing and packaging in the country. Funding for this is also to be initiated as the government believes that chips alone are not enough without proper carrier materials.

Because of course it’s not just the chips used in military devices that will be used more and more in the future. They all require some sort of synthesis, and eventually most end up with one Circuit board (Printed Circuit Board, PCB) is then used in a variety of solutions. However, most of these production lines are not found in the home region or allied countries, but in Asia. It was known several years ago For the modern F-35 fighter jet, some PCBs may have come directly from China – In the future this aircraft will be used by the German Air Force.

Small financial incentives

The U.S. government thinks this won’t change without additional incentives, especially if it needs to be implemented soon. Chipmakers pointed to a growing demand for electronic components that meet national security needs last year due to the ongoing conflict in Ukraine and subsequent arms embargo in the Western world. New technologies such as artificial intelligence, drones, and the increased use of hypersonic weapons depend on reliable electronics.

However, initially, the US government plans only 50 million US dollars, a small drop in the ocean and a big shadow U.S. Chips Act, for which about 53 billion US dollars will be available. However, various conditions have recently been attached to these, above all from the point of view of national security, which were tightened a few days ago. Companies wishing to participate in the scheme and those wishing to receive government grants must meet a wide range of criteria. These are partly for the benefit of workers, but ultimately serve primarily to fulfill the wishes of the US government: there is no such thing as a free lunch.