Two Years After Biden Action on Defense Electronics, Will Trump Follow Through on What He Started?

Mar 26, 2025

By Richard Cappetto, senior director, North American government relations

This Thursday marks two years since President Biden issued Presidential Determination 2023-06, which invoked the Defense Production Act (DPA) to catalyze U.S. investment in printed circuit board (PCB) and advanced packaging manufacturing. This action rightly identified a critical technology shortfall that, if left unaddressed, would "severely impair national defense" and undermine the warfighter.   

The Presidential Determination stemmed from President Trump’s 2017 Executive Order 13806, which launched a comprehensive assessment of the U.S. defense industrial base. A 2018 Trump administration report highlighted America’s overreliance on foreign-made PCBs, IC substrates (the materials in raw boards), and advanced packaging of semiconductor chips. The U.S. Department of Defense (DoD) continued to sound the alarm in its annual industrial capabilities reports, specifically identifying PCBs as a weak link in platforms like small, unmanned aircraft systems (drones). 

Signs of Progress   

In the two years since the Presidential Determination was issued, there have been signs of progress:  

  • Initial investments have been made: In recent years, the DoD has awarded more than $116 million in DPA funds to support PCB manufacturing. IPC member companies Calumet Electronics, GreenSource Fabrication, and TTM Technologies received funding to scale up production of cutting-edge PCBs, IC substrates, and advanced packaging.
  • Congress signaled initial support: Lawmakers approved DPA funding in FY24 for advanced packaging and PCBs, although not without a fight. IPC and its partners worked hard to preserve these investments in the face of a chips-only mentality and budgetary uncertainty.
  • More plans are in motion: Under the FY25 Continuing Resolution, the DoD is required to submit a detailed spending plan for DPA funds by May. IPC is working to ensure PCBs and related technologies are a key part of that plan, and we are advocating for robust funding in FY26 and beyond. 

Momentum at Risk  

 Despite this encouraging start, significant risks threaten to derail progress: 

 No dedicated PCB funding in the FY25 Budget: Although the Senate Appropriations Committee included $45 million for PCBs and urged continued investment in the years ahead, a final defense spending bill never materialized. Congress defaulted to a Continuing Resolution, leaving the future of PCB investments uncertain. IPC has petitioned Congress to carry forward $86 million in PCB investments in FY26, and to add PCB and PCBA manufacturing to the list of Covered Technology Categories authorized for investment under the Office of Strategic Capital. 

Missed opportunities under the CHIPS Act: While the CHIPS and Science Act has helped fuel U.S. investments in semiconductors, it has yet to be meaningfully leveraged to strengthen the PCB and PCB Assembly sectors – technologies that are indispensable to the function and reliability of every chip-based system. 

 Proposed tariffs threaten supply chains: Meanwhile, a wave of new U.S. tariffs is looming on key manufacturing inputs such as copper, aluminum, steel, and components sourced from Canada, Mexico, Asia, and Europe. These tariffs would raise costs, cause supply disruptions, and undermine U.S. manufacturing competitiveness—at a time when the industry needs stability and growth. 

 A National Security Imperative 

 The modern military depends on reliable, advanced electronics—from night vision systems to precision-guided munitions, ISR drones, command-and-control centers, and navigation systems for aircraft and ships. Yet, the U.S. continues to rely heavily on offshore sources for the PCBs and substrates that form the backbone of these systems. 

 President Trump identified this vulnerability, and President Biden’s finding was a step toward addressing it. The Congress has taken a few more initial steps.  

 But now, America is at a crossroads. The work has been done to diagnose the risk and begin remediation. It would be a grave mistake now to stop short of completing the mission. 

 The U.S. warfighter needs sustained, strategic investment not just in semiconductors, but in the entire ecosystem of electronics technologies. IPC stands ready to work with policymakers to ensure these efforts don’t stall—and that America’s defense electronics capabilities are secure, resilient, and world-class.