Activities of Tom VANDENKENDELAERE related to 2022/0032(COD)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council establishing a framework of measures for strengthening Europe's semiconductor ecosystem (Chips Act)
Amendments (50)
Amendment 61 #
Proposal for a regulation
Recital 3
Recital 3
(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies by working towards one pan-European ecosystem for semiconductors in the EU Single Market with pooled knowledge, expertise, resources and existing strengths in order to strengthen the Union’s position in a global interdependent semiconductors supply chain.
Amendment 68 #
Proposal for a regulation
Recital 5
Recital 5
(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. The only way to strengthen the European semiconductor market in a global interdependent semiconductor supply chain is to work towards a pan-European ecosystem within the EU Single Market where knowledge, expertise, resources and existing strengths are pooled. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty in order to develop a strong internal market for semiconductors. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.
Amendment 74 #
Proposal for a regulation
Recital 27
Recital 27
(27) TIn order to enhance the European semiconductor ecosystem, the internal market would greatly benefit from common European standards for green, trusted and secure chips, based on international standards and with strong involvement of the key market actors. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and, where proportionate and necessary, require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact.
Amendment 79 #
Proposal for a regulation
Recital 28
Recital 28
(28) In light of this, the Commission, in consultation with the European Semiconductor Board, should prepare the ground for a certification of green, trusted and secure chips and embedded systems that rely on or make extensive use of semiconductor technologies. In particular, they should discuss and identify the relevant sectors and products in need of such certification. Such certification should be risk-based and should rely on international standards.
Amendment 86 #
Proposal for a regulation
Recital 30
Recital 30
(30) Due to the complex, quickly evolving and interlinked semiconductor value chains with various actors, a coordinated approach to regular monitoring is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. Member States shouldThe Commission should, in close collaboration with the Member States and the key market actors, monitor the semiconductor value chain focusing on early warning indicators and the availability and integrity of the services and goods provided by key market actors, in such a way that it would not represent an excessive administrative burden for undertakings.
Amendment 91 #
Proposal for a regulation
Recital 35
Recital 35
(35) As part of the monitoring, national competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commission. The Commission should use this information to perform a full Union wide mapping exercise which in particular examines the cross-border elements of the Union’s semiconductor ecosystem and interlinkages with third countries. This mapping should amongst others focus on high dependencies and possible bottlenecks in the global supply chain.
Amendment 96 #
Proposal for a regulation
Recital 37
Recital 37
(37) In order to forecast and prepare for future disruptions of the different stages of the semiconductor value chain in the Union, the Commission should, assisted by the European Semiconductor Board, identify early warning indicators inand develop a list of these indicators as part of the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicators. Industry stakeholders should be encouraged to do the same. The European Semiconductor Board and the Commission should establish mechanisms to provide guidance to industry on monitoring and reporting, in particular to start-ups and SMEs.
Amendment 103 #
Proposal for a regulation
Recital 40
Recital 40
(40) As part of the monitoring, Member States cshould specifically consider the availability and integrity of the services and goods of key markets actors. Such issues could be brought to the attention of the Commission and the European Semiconductor Board by the Member State concerned.
Amendment 108 #
Proposal for a regulation
Recital 42
Recital 42
(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, and reliable evidence of such a crisis. A semiconductor crisis occurs in case off there is a serious disruptions to the supply of semiconductors leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addi of products or services which leads to an extraordinary situation which poses a serious threat to the functioning, health, or security and defence of the infrastructure, economy, institutions, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which preventMember States or citizens of the Union. This could for instance entail the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment.
Amendment 111 #
Proposal for a regulation
Recital 43
Recital 43
(43) In order to ensure an agile and effective response to such a semiconductor crisis, the Commission should be empowered, if necessary and proportionate, to activate the crisis stage by means of an implementing acts and for a predetermined duration period, taking into account the opinion of the European Semiconductor Board. The Commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period, should such a necessity be ascertained, and in accordance with the principle of proportionality, taking into account the opinion of the European Semiconductor Board. Whereby supply disruptions have been resolved, the Commission may terminate the crisis stage before the end of its duration, following consultation with the European Semiconductor Board, by means of implementing acts.
Amendment 116 #
Proposal for a regulation
Recital 44
Recital 44
(44) Close cooperation between the Commission and, the Member States and the key market actors and coordination of any national measures taken with regard to the semiconductor supply chain is indispensable during the crisis stage with a view to addressing disruptions with the necessary coherence, resiliency and effectiveness. To this end, the European Semiconductor Board should hold extraordinary meetings as necessary. Any measures taken should be strictly limited to the duration period of the crisis stage.
Amendment 117 #
Proposal for a regulation
Recital 53
Recital 53
(53) When the crisis stage is activated, two or more Member States could mandate the Commission to aggregate demand and act on their behalf for their public procurement in the public interest, in accordance with existing Union rules and procedures, leveraging its purchasing power. Common purchasing should be explicitly used to resolve supply disruptions of semiconductors during a crisis and should not be used for other purposes. The mandating Member States must duly justify the intended further use of the purchased products to the Commission. The mandate could authorise the Commission to enter into agreements concerning the purchase of crisis-relevant products for certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. Where it intends to not follow the request, it should inform the concerned Member States and the Board and give its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States, in line with its proclaimed intended use.
Amendment 122 #
Proposal for a regulation
Article 1 – paragraph 1 – point c
Article 1 – paragraph 1 – point c
(c) setting up a coordination mechanism between the Member States and the Commission, with a strong involvement of the actors in the semiconductor value chain, for monitoring the supply of semiconductors and crisis response to semiconductor shortages.
Amendment 128 #
Proposal for a regulation
Article 2 – paragraph 1 – point 17
Article 2 – paragraph 1 – point 17
(17) ‘crisis-relevant product’ means semiconductors, intermediate products and raw materials required to produce semiconductors or intermediate products, that are affected by the semiconductor crisis orand of strategiccrucial importance to remedy the semiconductor crisis or economic effects thereof;
Amendment 130 #
Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)
Article 2 – paragraph 1 – point 17 a (new)
(17 a) ‘crisis’ means a serious disruption to the supply of semiconductors leading to a significant shortage of products or services which leads to an extraordinary situation which poses a serious threat to the functioning, health, or security and defence of the infrastructure, economy, institutions, Member States or citizens of the Union;
Amendment 133 #
Proposal for a regulation
Recital 3
Recital 3
(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies by working towards one pan-European ecosystem for semiconductors in the internal market with pooled knowledge, expertise, resources and existing strengths in order to strengthen the Union’s position in a global interdependent semiconductors supply chain.
Amendment 137 #
Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part
Article 15 – paragraph 1 – subparagraph 1 – introductory part
Amendment 145 #
Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2
Article 15 – paragraph 1 – subparagraph 2
The Commission and the Member States shall provide all relevant findings to the European Semiconductor Board in the form of regular updates at least each 6 months.
Amendment 147 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
Amendment 149 #
Proposal for a regulation
Recital 5
Recital 5
(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient supply is essential for the functioning of the internal market. The only way to strengthen the European semiconductor market in a global interdependent semiconductor supply chain is to work towards a pan-European ecosystem within the internal market where knowledge, expertise, resources and existing strengths are pooled. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.
Amendment 151 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case will pay particular attention to SMEs to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. National competent authorities prioritise the information received from the key market players. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.
Amendment 155 #
Proposal for a regulation
Article 15 – paragraph 3 a (new)
Article 15 – paragraph 3 a (new)
3 a. The Commission shall produce an annual report in cooperation with the European Semiconductor Board in order to assess the regularity of information requests, the type and volume of information being requested, in particular from SMEs, and it shall identify if necessary the need to further streamline processes and provide further support in navigating information requests in the context of this Regulation.
Amendment 157 #
Proposal for a regulation
Article 15 – paragraph 4
Article 15 – paragraph 4
4. Where a Member State, based on the early warning indicators, becomes aware of a potential semiconductor crisis, a significant fluctuation in demand or has concrete and reliable information of any other risk factor or event materialising, it shall immediately alert the Commission (‘early warning’). and the European Semiconductor Board (‘early warning’). A semiconductor crisis, a significant fluctuation in demand and other risk factors, shall be pre-defined alongside a clear set of benchmarks. The Commission shall undertake such task in cooperation with the European Semiconductor Board and the key market actors.
Amendment 161 #
Proposal for a regulation
Article 15 – paragraph 5 – point a – point 1
Article 15 – paragraph 5 – point a – point 1
(1) assessing whether the activation of the crisis stage referred to in Article 18 is warranted, necessary and proportionate;
Amendment 164 #
Proposal for a regulation
Article 15 – paragraph 5 – point b
Article 15 – paragraph 5 – point b
(b) enter into consultations or cooperation, on behalf of the Union, and after consulting the European Semiconductor Board, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora.
Amendment 170 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. The Commission shall, after consulting the European Semiconductor Board, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators, including possible bottlenecks or high dependencies on third country products or equipment.
Amendment 171 #
1 a. Based on the Union risk assessment the Commission shall identify early warning indicators and shall develop a list of these indicators in cooperation with the European Semiconductor Board. This list of early warning indicators shall be shared with the competent national authorities and the key market actors.
Amendment 172 #
Proposal for a regulation
Article 16 – paragraph 2
Article 16 – paragraph 2
2. The Commission shall review the Union risk assessment including the early warning indicators as necessaryt least every two years or upon request of the European Semiconductor Board. In the event of significant market and geopolitical developments, those indicators shall be updated.
Amendment 179 #
Proposal for a regulation
Article 17 – paragraph 1 – introductory part
Article 17 – paragraph 1 – introductory part
1. The Commission shall, in close cooperation with the Member States shall, identify key market actors along the semiconductor supply chains in their national territory, taking into account the following elements:
Amendment 180 #
Proposal for a regulation
Article 17 – paragraph 1 – point a
Article 17 – paragraph 1 – point a
(a) the number of other Union undertakings relying directly or indirectly on the service or good provided by a market actor;
Amendment 181 #
Proposal for a regulation
Article 17 – paragraph 1 – point d
Article 17 – paragraph 1 – point d
(d) the impact a disruption of supply of the service or good provided by the market actor may have on the Union’s semiconductor supply chain and, dependent markets and critical sectors in particular.
Amendment 187 #
3. Before the expiry of the duration for which the crisis stage was activated, the Commission shall, after consulting the European Semiconductor Board and industry stakeholders, assess whether the activation of the crisis stage should be prolonged. Where the assessment concludes that a prolongation is appropriate, the Commission may prolong the activation by means of implementing acts. The duration of the prolongation shall be specified in the implementing acts adopted in accordance with Article 33(2). The Commission may repeatedly decide to prolong the activation of the crisis stage where this is appropriate.
Amendment 190 #
Proposal for a regulation
Article 18 – paragraph 4
Article 18 – paragraph 4
4. During the crisis stage, the Commission shall, upon request from a Member State or on its own initiative, convene extraordinary meetings of the European Semiconductor Board as necessary. Member States and key market actors shall work closely with the Commission and coordinate any nationalrelevant measures taken with regard to the semiconductor supply chain within the European Semiconductor Board.
Amendment 192 #
Proposal for a regulation
Article 18 – paragraph 4 a (new)
Article 18 – paragraph 4 a (new)
4 a. The triggering of the crisis stage shall be accompanied by a crisis situation assessment report, drawn up by the Commission and the European Semiconductor Board, and made available to the European Parliament.
Amendment 193 #
Proposal for a regulation
Article 18 – paragraph 4 b (new)
Article 18 – paragraph 4 b (new)
Amendment 193 #
Proposal for a regulation
Recital 16
Recital 16
(16) With a view to creating a pan- European ecosystem within the internal market where knowledge, expertise, resources and existing strengths are pooled and to accelerating implementation of the actions of the Initiative, it is necessary to provide an option of implementing some of the Initiative actions, in particular on pilot lines, through a new legal instrument, the European Chips Infrastructure Consortium (ECIC). The ECIC should have legal personality. This means that when applying for the actions to be funded by the Initiative, the ECIC itself, and not individual entities forming the ECIC, can be the applicant. The main aim of the ECIC should be to encourage effective and structural collaboration between legal entities, including Research and Technology Organizations. For this reason, the ECIC has to involve the participation of at least three legal entities from three Member States and be operated as a public- private sector consortium for a specific action. The setting up of ECIC should not involve the actual setting up of a new Union body and should not be targeted at one specific action under the Initiative. It should address the gap in the Union’s toolbox to combine funding from Member States, the Union budget and private investment for the purposes of implementing actions of the Initiative. In particular, strong synergies can be attained through combined development of the different pilot lines in an ECIC, pooling the Union’s contribution with the collective resources of the Member States and other participants. The budget of the ECIC that would be made available by Member States and private sector participants over its projected period of operation should respect the timeframes of the actions implemented under this Initiative. The Commission should not be directly a party in the Consortium.
Amendment 194 #
Proposal for a regulation
Article 18 – paragraph 5
Article 18 – paragraph 5
5. Upon expiry of the duration for which the crisis stage is activated, the measures taken in accordance with Articles 20, 21 and 22 shall cease to apply. The Commission shall, after consulting the European Semiconductor Board, review the Union risk assessment pursuant to Article 16(2) no later than six months after the expiry of the duration of the crisis stage.
Amendment 198 #
Proposal for a regulation
Recital 19
Recital 19
(19) Integrated Production Facilities and Open EU Foundries should provide semiconductor manufacturing capabilities that are “first-of-a-kind” in the Union and contribute to the security of supply and to athe resilientce of the semiconductor ecosystem in the internal market. The qualifying factor for the production of a first-of-a-kind facility could be with regard to theAn important factor for “first-of-a-kind” is to bring an innovative element to the internal market regarding the manufacturing processes or the final product. Relevant innovation elements could be the use of a new technology node, or a new substrate material, (such as sGallium Nitride or Silicon cCarbide and gallium nitride, and other product innovation that can offer better performance, process technology or energy and environmental performance. A facility of a comparable capability on an industrial scale), or approaches that lead to performance improvements in computing power, energy efficiency, level of security, safety or reliability, as well as integration of new functionalities, such as AI, memory capacity or other. Integration of different processes and devices leading to efficiency gains or packaging and assembly automation are also examples of innovation. With regard to environmental gains, innovation elements include the reduction in a quantifiable way of the amount of energy, water or chemicals used, or increasing recyclability of materials. Such innovation should not yet substantively be present or committed to be built within the Union, excludingso that similar innovation provided by facilities for research and development or small- scale production sites would not prevent industrial semiconductor manufacturing sites from qualifying as “first-of-a-kind”. Qualification as “first-of-a-kind” holds both for new facilities, as for industrialization and volume scale-up, and modernization of existing facilities. “First-of-a-Kind” within an integrated production facility should not prevent an Open Foundry available to multiple customers from also qualifying as “first- of-a-kind” and vice versa.
Amendment 199 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. Where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the Union, the Commission shallmay take the measures provided for in Article 20 under the conditions laid down therein. In addition, the Commission may take the measures provided for in Article 21 or Article 22, or both, 21 or 22, or all of them, under the conditions laid down therein.
Amendment 202 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. The Commission mayshall, after consulting the European Semiconductor Board, clearly limit the measures provided for in Articles 20, 21 and 22 to certain crisis-relevant products and certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.
Amendment 208 #
Proposal for a regulation
Article 19 – paragraph 4
Article 19 – paragraph 4
4. The use of the measures referred to in paragraph 1 shall be proportionate and restricted to what is necessary for addressing serious disruptions of vital societal functions or economic activities in the Union and must be in the best interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on undertakings, especially on SMEs.
Amendment 211 #
Proposal for a regulation
Article 19 – paragraph 6
Article 19 – paragraph 6
6. The Commission mayshall, after consulting the European Semiconductor Board, issue guidance on the implementation and the use of the emergency measures.
Amendment 213 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
1. The Commission may, upon the request of two or more Member States, establish a mandate to act as a central purchasing body on behalf of the participating Member States (‘participating Member States’) for their public procurement of crisis-relevant products for certain critical sectors (‘common purchasing’). Common purchasing should be explicitly used to resolve supply disruptions of semiconductors during a crisis and should not be used for other purposes. The participating Member States shall duly justify the intended further use of the purchased products to the Commission.
Amendment 218 #
Proposal for a regulation
Article 22 – paragraph 2
Article 22 – paragraph 2
2. The Commission shall, in consultation with the European Semiconductor Board, assess the utility, necessity and proportionality of the request and its relevance in order to resolve the supply disruptions of semiconductors during the crisis. Where the Commission intends not to follow the request, it shall inform the Member States concerned and the European Semiconductor Board and give reasons for its refusal.
Amendment 221 #
Proposal for a regulation
Article 22 – paragraph 3
Article 22 – paragraph 3
3. The Commission shall draw up a proposal for a framework agreement to be signed by the participating Member States. This framework agreement shall organise in detail the common purchasing referred to in paragraph 1 and shall include provisions on the further use of the purchased products.
Amendment 227 #
Proposal for a regulation
Article 22 – paragraph 6
Article 22 – paragraph 6
6. The Commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of the participating Member States. The Commission shall invite the participating Member States to appoint representatives to take part in the preparation of the procurement procedures. The deployment and use of the purchased products shall remain the responsibility of the participating Member States in line with its proclaimed intended use.
Amendment 232 #
Proposal for a regulation
Article 23 – paragraph 2 – point d
Article 23 – paragraph 2 – point d
(d) addressing monitormonitoring and crisis response issues Union and global semiconductor supply chaings and crisis response issues in the EU Single Market;
Amendment 233 #
Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)
Article 23 – paragraph 2 – point d a (new)
(d a) provide a forum of cooperation, coordination and information exchange between Member States, between Member Sates and the Commission and between the Union and third-country partners, to help better monitor the EU and global supply semiconductor chains and trends that impact the Union, including through information gathering and crisis assessment;
Amendment 349 #
Proposal for a regulation
Article 2 – paragraph 1 – point 10
Article 2 – paragraph 1 – point 10
(10) ‘first-of-a-kind facility’ means an industrial facility capable of semiconductor manufacturing, including front-end or back-end, or both semiconductor manufacturing facility (Integrated Device Manufacturer or Open Foundry), including new facilities, industrialization, scale-up and modernization of existing facilities, which provides innovation with regard to the manufacturing process or final product, that is not yet substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance. This includes, but is not limited to, innovation that concerns performance, improvements in computing power or in the level of security, safety or reliability, or in energy and environmental performance, or in the use of a new technology node or substrate material, or the integration of different processes and devices, or in the implementation of production processes that lead to efficiency gains;
Amendment 444 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. For the purpose of pooling knowledge, expertise, resources and existing strengths in one pan-European ecosystem to accelerate the implementingation of eligible actions and other related tasks funded under the Initiative a European Chips Infrastructure Consortium (‘ECIC’) may be established under the conditions set out in this Article.