43 Amendments of Jörgen WARBORN related to 2022/0032(COD)
Amendment 71 #
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, as well as strengthening its role at the global level through international cooperation and trade.
Amendment 85 #
Proposal for a regulation
Recital 6
Recital 6
(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States, business representatives and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and the Commission may establish subgroupsbusiness representatives affected by the Regulation.
Amendment 86 #
Proposal for a regulation
Recital 7
Recital 7
(7) Given the globalised nature of the semiconductor supply chain, international cooperation with third countries is an important element to achieve a resilience of the Union’s semiconductor ecosystem. The actions taken under this Regulation should also enable the Union to play a stronger role, as a centre of excellence, in a better functioning global, interdependent semiconductors ecosystem. The Commission, assisted by the European Semiconductor Board, should and business representatives, should work together towards both immediate and long-term supply solutions for the semiconductor market; cooperate and build partnerships with third countries with a view to seeking solutions to address, to the extent possible, disruptions of the semiconductor supply chain; and in bilateral and multilateral meetings with like-minded partners. The Commission shall maintain close cooperation with Taiwan through EU’s Indo-Pacific strategy and with a view to addressing respective vulnerabilities in a mutually beneficial manner. Taiwan is located in a strategic position in terms of trade and is a crucial partner for the global supply chain of key high-tech sectors, notably semiconductors. The Commission should urgently begin an impact assessment, public consultation and scoping exercise on a Bilateral Investment Agreement with the Taiwanese authorities in preparation for negotiations to deepen bilateral economic ties and encourage Taiwan to increase investments in the EU, including on matters relating to multilateralism and the WTO. Where necessary, representatives of third countries should be invited to address and cooperate with the European Semiconductor Board. The Trade and Technology Council should act as platform to coordinate efforts to make semiconductor supply chains more resilient.
Amendment 116 #
Proposal for a regulation
Recital 30 a (new)
Recital 30 a (new)
(30 a) Given that this Regulation will impose additional compliance costs on the sector, action needs to be taken to prevent the total level of regulatory burden from increasing. The Commission should therefore be obliged to present, before the application of this Regulation, proposals offsetting the regulatory burdens introduced by this Regulation, through the revision or abolishment of provisions in other Union legislative acts that generate compliance costs for the semiconductor sector.
Amendment 122 #
Proposal for a regulation
Recital 34
Recital 34
(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, including information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the international supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements. In a globalised world with international value chains, European resilience is not possible without well-functioning multilateral and bilateral trade agreements. The European openness to trade and investment is a strength and source of growth and resilience for the Union, as a major importer and exporter.
Amendment 139 #
Proposal for a regulation
Recital 45
Recital 45
(45) Appropriate, effective and proportionate measures should be identified and implemented when the crisis stage is activated without prejudice to possible continued international engagement with relevant partners with the view to mitigating the evolving crisis situation. Where appropriate, the Commission shouldmay request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to, where necessary and proportionate, oblige request Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of the production of crisis-relevant products, and to act as a central purchasing body when mandated by Member States. The Commission cshould limit the measures to certain critical sectors. In addition, the European Semiconductor Board may advise on the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60 should engage in consultations and cooperation with business representatives and relevant third countries with a view to addressing any disruptions in the international supply chain. The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures shouldmust be proportionate, restricted and be carried out in the manner which is the least disruptive to trade and restricted to what is absolutely necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. _________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).
Amendment 144 #
Proposal for a regulation
Recital 47
Recital 47
(47) The purpose of requests for information from undertakings along the semiconductor supply chain established in the Union in the crisis stage is an in-depth assessment of the semiconductor crisis in order to identify potential mitigation or emergency measures at Union or national level. Such information may include production capability, production capacity and current primary disruptions and bottlenecks. These aspects could include the typical and current actual stock of crisis-relevant products in its production facilities located in the Union and third country facilities which it operates or contracts or purchases supply from; the typical and current actual average lead time for the most common products produced; the expected production output for the following three months for each Union production facility; reasons that prevent the filling of production capacity; or other existing data necessary to assess the nature of the semiconductor crisis or potential mitigation or emergency measures at national or Union level. Any request should be proportionate, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, as well as set out appropriate time limits for providing the requested information. Undertakings should be obliged to comply with the request and may be subject to penalties i. If they fail to comply or provide incorrect information without any reasonable explanation given, may be subject to penalties. Any information acquired should be subject to confidentiality rules. Should an undertaking be subject to a request for information related to its semiconductor activities from a third country, it should inform the Commission so to enable an assessment whether an information request by the Commission is warranted. The request of information must be used restrictively and executed in a manner that minimise administrative and regulatory burdens, by clearly stating what kind of information is absolutely necessary. The Commission must always take into consideration the administrative burden and the consequences of hampering innovation capacity and risk of trade escalations with third countries.
Amendment 146 #
Proposal for a regulation
Recital 48
Recital 48
(48) In order to ensure that critical sectors can continue to operate in a time of crisis and when necessary and proportionate for this purpose, Integrated Production Facilities and Open EU Foundries could be obliged by the Commission tomay on a voluntary basis accept and prioritise orders of crisis-relevant products. This obligation may also be extended to semiconductor manufacturing facilities which have accepted such possibility in the context of receiving public support. The decision on a priority rated order should be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case. The priority rating obligation should take precedence over any performance obligation under private or public law while it should have regard for the legitimate aims of the undertakings and the cost and effort required for any change in production sequence. Undertakings may be subject to penalties if they fail to comply with the obligation for priority rated orderse decision should be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case.
Amendment 147 #
Proposal for a regulation
Recital 49
Recital 49
(49) The undertaking concerned should on a voluntary basis be oabligede to accept and prioritise a priority rated order. In exceptional and duly justified cases, the undertaking could request the Commission to review the imposed obligation. This applies either where the facility is unable to fulfil the order even if prioritised, be it due to insufficient production capability or production capacity, or because this would place an unreasonable economic burden and entail particular hardship on the facility.
Amendment 148 #
Proposal for a regulation
Recital 50
Recital 50
(50) Under the exceptional circumstance that an undertaking operating along the semiconductor supply chain in the Union receives a priority rated order request from a third country, it should inform the Commission of this request, so as to inform an assessment of whether, if there is a significant impact on the security of supply to critical sectors, and the other requirements of necessity, proportionality and legality are satisfied in the circumstances of the case, the Commission should likewise enact a priority rated order obligation.
Amendment 151 #
Proposal for a regulation
Recital 54
Recital 54
(54) During a semiconductor shortage crisis, it might become necessary that the Union considers protective measurthe Union may only consider protective measures if all other measures have been investigated. Protective measures must be avoided at all costs, as they will damage the Union's trade relations and will have unpredictable consequences. The European Semiconductor Board may express its views to inform the Commission’s assessment of whether the market situation amounts to a significant shortage of essential products pursuant to Regulation (EU) 2015/479.
Amendment 153 #
Proposal for a regulation
Recital 55
Recital 55
(55) In order to facilitate a smooth, effective and harmonised implementation of this Regulation, cooperation and the exchange of information, the European Semiconductor Board should be established. The implementation of this Regulation must comply with Union law, the WTO Agreement and be consistent with commitments made under other trade and investment agreements to which the Union or the Member States are parties. The European Semiconductor Board should provide advice to and assist the Commission on specific questions. These should include providing advice on the Chips for Europe Initiative to the Public Authorities Board of the Chips Joint Undertaking; exchanging information on the functioning of the Integrated Production Facilities and Open EU Foundries; discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products and addressing coordinated monitoring and crisis response. Furthermore, the European Semiconductor Board should ensure the consistent application of this Regulation, facilitate cooperation between Member States as well as exchange of information on issues relating to this Regulation. The European Semiconductor Board should support the Commission in international cooperation in line with international obligations, including in information gathering and crisis assessment. In addition, the European Semiconductor Board should coordinate, cooperate and exchange information with other Union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated Union approach as regards crisis response and crisis preparedness measures for semiconductor crises.
Amendment 177 #
Proposal for a regulation
Article 2 – paragraph 1 – point 19 a (new)
Article 2 – paragraph 1 – point 19 a (new)
(19 a) ‘crisis’ means an extraordinary situation of a serious disruption to the supply chain, leading to a severe shortage of semiconductors, which poses serious and immediate danger to the life and health of people or has a substantial and evidence-based impact on the functioning of the Member States and citizens of the Union, which requires proportionate and adequate measures tailored to the specific situation in order to supply the population with critical necessities.
Amendment 183 #
Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2
Article 4 – paragraph 2 – point b – point 2
(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable renewable and low carbon energy and electro mobility, lower energy consumption, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies; promoting international cooperation between different chips production technologies with third countries and the Union; encourage and maintain competitiveness by learning from different sectors of the chips industry, as for example, the impact and growth of Micro Electro-Mechanical Systems in Europe.
Amendment 210 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Integrated Production Facilities are first-of-a-kind semiconductor design and manufacturing facilities, including front- end or back-end, or both, in the Union that contribute to the security of supply for the internal and external markets.
Amendment 213 #
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
Amendment 215 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Open EU Foundries are first-of-a- kind semiconductor front-end or back-end, or both, manufacturing facilities in the Union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal and external markets.
Amendment 216 #
Proposal for a regulation
Article 11 – paragraph 2 – point d
Article 11 – paragraph 2 – point d
Amendment 219 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point c
Article 12 – paragraph 2 – subparagraph 1 – point c
Amendment 222 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. In order to reach security of supply in the Union, Member States may, without prejudice to Articles 107 and 108 of the Treaty, apply support schemes and provide for administrative support to Integrated Production Facilities and Open EU Foundries in accordance with Article 14. Member States must also ensure that any support is necessary, appropriate and proportionate to avoid undue competition distortions.
Amendment 223 #
Proposal for a regulation
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2 a. Any support must align with WTO and the ‘Regulation on foreign subsidies distorting the internal market’.
Amendment 226 #
Proposal for a regulation
Article 15 – title
Article 15 – title
Monitoring and al, alerting and international cooperationg
Amendment 227 #
Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part
Article 15 – paragraph 1 – subparagraph 1 – introductory part
Member States shallmay only carry out regular monitoring of the semiconductor value chain, if it is proportionate and limit unnecessary administrative or financial burdens. In particular, they shall:
Amendment 245 #
Proposal for a regulation
Article 15 – paragraph 5 a (new)
Article 15 – paragraph 5 a (new)
5 a. The Commission should increase its commitment on cooperation with third countries by concluding and enforcing trade agreements. In any future investment and trade agreement of the EU with relevant third countries, collaboration in the field of semiconductors and along the entire semiconductor supply chain shall be a key priority.
Amendment 262 #
Proposal for a regulation
Article 18 – paragraph 1 – point a
Article 18 – paragraph 1 – point a
Amendment 267 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. Where the crisis stage is activated and where appropriateif necessary in order to address the semiconductor crisis in the Union, the Commission shall take the measure provided for in Article 20 under the conditions laid down therein. In addition, the Commission may take the measures provided for in Article 210 or Article 221, or both, under the conditions laid down therein.
Amendment 269 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. The Commission may, after consulting the European Semiconductor Board, limit the measures provided for in Articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.
Amendment 275 #
Proposal for a regulation
Article 20 – paragraph 1
Article 20 – paragraph 1
1. The Commission shallmay, after consulting the European Semiconductor Board, and if all other measures has been investigated, request representative organisations of undertakings or, if necessary, individual undertakings operating along the semiconductor supply chain to inform the Commission about their production capabilities, production capacities, current primary disruptions and provide other existing data necessarytransmit on a voluntary basis, within a set time limit, specific information to the Commission about their production capabilities, while fully respecting trade and business secrets, to assess the nature of the semiconductor crisis or to identify and assess potential mitigation or emergency measures at national or Union level.
Amendment 278 #
Proposal for a regulation
Article 20 – paragraph 5
Article 20 – paragraph 5
5. Should an undertaking established in the Union be subject to a request for information related to its semiconductor activities from a third country, it shall inform the Commission in such a manner that is least disruptive to trade and promote international cooperation, as to enable the Commission to request similar information. The Commission shall inform the European Semiconductor Board of the existence of such request from a third country.
Amendment 280 #
Proposal for a regulation
Article 21 – paragraph 1
Article 21 – paragraph 1
1. Where necessary and proportionate to ensure the operation of all or certain critical sectors, the Commission may obligerequest Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’). The obligation shall take precedence over any performance obligation under private or public law.
Amendment 283 #
Proposal for a regulation
Article 21 – paragraph 3
Article 21 – paragraph 3
3. When a semiconductor undertaking established in the Union is subject to a third country priority rated order measure, it shall inform the Commission. Should that obligationrequest significantly impact the operation of certain critical sectors, the Commission may obligerequest that undertaking to accept and prioritise orders of crisis relevant products in line with paragraph 4, 5 and 6.
Amendment 285 #
Proposal for a regulation
Article 21 – paragraph 5 – introductory part
Article 21 – paragraph 5 – introductory part
5. The undertaking concerned shall be obligrequested to accept and prioritise a priority rated order. The undertaking may request the Commission to review the priority rated order where it considers it to be duly justified based on one of the following grounds:
Amendment 286 #
Proposal for a regulation
Article 21 – paragraph 6
Article 21 – paragraph 6
6. Where an undertaking is obliged to accept and prioritise a priority rated order, it shall not be liable for any breach of contractual obligations that is required to comply with the priority rated orders. The liability shall be excluded only to the extent the violation of contractual obligations was necessary for compliance with the mandated prioritisation. The Commission must be able to compensate the undertaking if the prioritisation lead to a negative economic impact on their business.
Amendment 287 #
Proposal for a regulation
Article 22
Article 22
Amendment 298 #
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
1. The European Semiconductor Board shall be composed of representatives of the Member States and business representatives and shall be chaired by a representative of the Commission.
Amendment 310 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. The Commission and the national competent authorities, their officials, servants and other persons working under the supervision of these authorities as well as officials and civil servants of other authorities of the Member States shall not disclose information acquired or exchanged by them pursuant to this Regulation and of the kind covered by the obligation of professional secrecy. They shall respect the confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect in particular intellectual property rights and sensitive business information or trade secrets. Any circumvention of technological protection measures and use of confidential data must be avoided. This obligation shall apply to all representatives of Member States, observers, experts and other participants attending meetings of the European Semiconductor Board pursuant to Article 23 and the members of the Committee pursuant to Article 33(1).
Amendment 313 #
Proposal for a regulation
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2 a. The Regulation shall in compliance with relevant legislation in the field, including Directive 2016/943 on the protection of undisclosed know-how and business information, respect the confidentiality of information obtained in carrying out their tasks and activities in such a manner as to protect, in particular confidential business information or trade secrets.
Amendment 317 #
Proposal for a regulation
Article 28 – paragraph 2
Article 28 – paragraph 2
2. Fines imposed in the cases referred to in paragraph 1, points (a) and (b), shall not exceed 30200 000 EUR. If the concerned undertaking is an SME, the fines imposed shall not exceed 50 000 EUR.
Amendment 318 #
Proposal for a regulation
Article 28 – paragraph 3
Article 28 – paragraph 3
3. Periodic penalty payments imposed in the cases referred to in paragraph 1 (c) shall not exceed 1.5 % of the average daily turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to Article 21 calculated from the date established in the decision. If the concerned undertaking is an SME, the periodic penalty payments imposed shall not exceed 0.5 % of the average daily turnover.
Amendment 319 #
Proposal for a regulation
Article 28 – paragraph 4
Article 28 – paragraph 4
4. In fixing the amount of the fine or periodic penalty payment, regard shall be had to the size, if the concerned undertaking is an SME, to the economic and administrative resources, to the nature, gravity and duration of the infringement, taking due account of the principles of proportionality and appropriateness.
Amendment 324 #
Proposal for a regulation
Article 35 – paragraph 1 a (new)
Article 35 – paragraph 1 a (new)
1 a. The implementation of this Regulation by the Union must comply with Union law, the WTO Agreement and be consistent with commitments made under other trade and investment agreements to which the Union or the Member States are parties.
Amendment 325 #
Proposal for a regulation
Article 35 – paragraph 1 b (new)
Article 35 – paragraph 1 b (new)
1 b. No later than three year after the entry into force of this regulation, the Commission shall within proposals in line with its communication on the application of the “one in, one out” principle offsetting the regulatory burden introduced by this Regulation, through the revision or abolishment of provisions in other Union legislative acts that generate compliance costs in the semiconductor sector.
Amendment 326 #
Proposal for a regulation
Article 35 – paragraph 1 c (new)
Article 35 – paragraph 1 c (new)
1 c. No later than three years after the entry into force of this Regulation, the Commission should also consider WTO compatibility and ensure that the Regulation has been aligned with the WTO Agreement.