56 Amendments of Andreas GLÜCK related to 2022/0032(COD)
Amendment 122 #
Proposal for a regulation
Recital 1
Recital 1
(1) Semiconductors are at the core of any digital device: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chainresult of panic purchasing, coupled with last- minute order changes or cancellations, supplier shutdowns in Asia, and political instability in parts of the world. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing and design of chips.
Amendment 144 #
Proposal for a regulation
Recital 4
Recital 4
(4) It is necessary to take measures to build capacity and strengthen the Union’s semiconductor sector in line with Article 173(3) of the Treaty. These measures do not entail the harmonisation of national laws and regulations. In this regard, the Union should reinforce the competitiveness and resilience of the semiconductor technological and industrial base, whilst strengthening the innovation capacity of its semiconductor sector, reducing dependence on a limited number of third country companies and geographies, and strengthening its capacity to design and produce advanced componentnext generation semiconductor technologies. The Chips for Europe Initiative (the ‘Initiative’) should support these aims by bridging the gap between Europe’s advanced research and innovation capabilities and their sustainable industrial exploitation. It should promote capacity building to enable design, production, equipment, packaging, testing and systems integration in next generation semiconductor technologies, enhance collaboration among key players across the Union, strengthening Europe's semiconductor supply and value chains, serving key industrial sectors and creating new markets.
Amendment 154 #
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, industry and research organisations representing the semiconductor value chain, 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 subgroups.
Amendment 161 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7 a) The Commission, on behalf of the Union, should pursue cooperation with strategic partners such as the United States, Japan, South Korea and Taiwan and other like-minded partners, with a view to strengthening the semiconductor supply chain and addressing future supply chain disruptions through a 'Chips Diplomacy Initiative'. To this end, Commission should promote international cooperation with strategic partners through future investment and trade agreements, the EU-US and EU-India Trade and Technology Councils, as well as relevant international fora, where the strengthening of the semiconductor supply chain and addressing future supply chain disruptions should be a key priority. In addition, where necessary, the Commission should enter into a dialogue, consultations or cooperation framework with relevant third countries with a view to seeking solutions to address supply chain disruptions or third country decisions that could cause such disruptions, such as those related to extraterritorial export restrictions, in line with international obligations. This could involve coordination in relevant international fora or other diplomatic measures, while ensuring robust engagement with the stakeholder community.
Amendment 199 #
Proposal for a regulation
Recital 19
Recital 19
(19) Integrated Production Facilities and Open EU Foundries should provide semiconductor manufacturing capabilities, or manufacturing capabilities in material and/or equipment exclusively used in semiconductor manufacturing that are “first-of-a-kind” in the Union and contribute to the security of supply and to a 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 theis 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 substrate material, such as silicon carbide, indium, phosphide 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 scaleor 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 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, chemicals or gasses used, or increasing recyclability of materials. Such innovation should not yet substantively be present or committed to be built within the Union, so that similar innovation provided by excluding facilities for research and development or small- scale production sites. would not crowd outqualifying as “first-of-a-kind”.
Amendment 206 #
Proposal for a regulation
Recital 20
Recital 20
(20) Where an Open EU Foundry offers production capacity to undertakings not related to the operator of the facility, the Open EU Foundry should establish, implement and maintain adequate and effective functional separation in order to prevent the exchange of confidential information between internal and external production. This should apply to any information gained in the design and in the front-end or back-end manufacturing processes including trade secrets or content protected by intellectual property rights.
Amendment 207 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to qualify as Integrated Production Facilities or Open EU Foundries, the establishment and operation of the facility should have a clear positive impact on the semiconductor value chain in the Union, in particular with regard to providing a resilient supply of semiconductors to users on the internal market. The impact on several Member States, including cohesion objectives, should be considered as one of the indicators of a clear positive impact of an Integrated Production Facility and Open EU Foundry on the semiconductor value chain in the Union. The operator of the Open EU Foundry should retain the right to decide at its own discretion the specific share of capacity dedicated to serve unrelated undertakings. Such business decisions should remain open to changes by the operator, subject to evolving market dynamics.
Amendment 220 #
Proposal for a regulation
Recital 24
Recital 24
(24) To allow for a uniform and transparent procedure to attain recognition as an Integrated Production Facility and Open EU Foundry, the recognition decision should be adopted by the Commission following the application by an individual undertaking or a consortium of several undertakings. The recognition is open for both the installation of a new semiconductor manufacturing facility and the significant scale up of an existing semiconductor manufacturing facility. To account for the importance of a coordinated and cooperated implementation of the planned facility, the Commission should take into account in its assessment the readiness of the Member State or Member States where the applicant intends to establish its facilities to support the set-up. Furthermore, when assessing the viability of the business plan, the Commission cshould take into account the overall record of the applicant. In light of the privileges attached to recognition as an Integrated Production Facility or Open EU Foundry, the Commission should monitor whether facilities that have been granted this status continue to comply with the criteria set out in this Regulation.
Amendment 237 #
Proposal for a regulation
Recital 29
Recital 29
(29) In light of the structural deficienciescomplexity of the semiconductor supply chain and the resulting risks of future shortages, this Regulation provides instruments for a coordinated approach to monitoring and effectively tackling possible market disruptions.
Amendment 240 #
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 understanding of the value chain as well as the ability to mitigate risks that may negatively affect the supply of semiconductors. Member States and the Commission should 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 244 #
Proposal for a regulation
Recital 31
Recital 31
(31) Any relevant findings, including information provided by relevant stakeholders and industry associationsFindings that are relevant for the purpose of mitigating risks and/or signalling disruptions in the supply chain, should be provided to the European Semiconductor Board to allow for a regular exchange of information between high- level representatives of Member States and for integration of the information into a monitoring overview of the semiconductor value chains.
Amendment 246 #
Proposal for a regulation
Recital 32
Recital 32
(32) It is important to take into account the specific insights into the supply situation of users of semiconductors. Therefore, Member States should identify and regularly exchange with the main user categories on their national markets. Furthermore, Member States shcould offer the possibility for relevant stakeholder organisations, including industry associations and representatives of the main user categories, to provide information regarding significant changes in demand and supply, and known disruptions of their supply chain, this could include the unavailability of critical semiconductors or raw materials, longer than average lead-time, delays in delivery and exceptional price surges.
Amendment 256 #
Proposal for a regulation
Recital 35
Recital 35
(35) As part of the monitoring, national competent authoritiesthe Semiconductor Board should also do a long-term mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commissionthe dynamics in, as well as the strengths and weaknesses of the semiconductor value chain, including a holistic understanding of the market, the barriers to entry and technology characteristics. Once complete, the mapping could be updated and revised every six months if necessary.
Amendment 269 #
Proposal for a regulation
Recital 37 a (new)
Recital 37 a (new)
(37 a) In order to increase the Union’s global role in the semiconductor ecosystem and its value chain, due consideration must be paid to the demand for the underlying critical raw materials and gasses. Member States and the Commission should ensure that the Union does not create a new dependency, but rather a sustainable supply chain for critical raw materials and gasses that is prioritized and in line with the Statement on Critical Raw Materials Act.
Amendment 277 #
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 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, taking into account the opinion of the European Semiconductor Board. It should also assess the need to terminate early the crisis stage, should such a necessity be ascertained, and taking into account the opinion of the European Semiconductor Board.
Amendment 285 #
Proposal for a regulation
Recital 44
Recital 44
(44) Close cooperation between the Commission and the, Member States and industry stakeholders 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 287 #
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 should request information from undertakings along the semiconductor supply chain. Furthermore, the Commission should be able to, where necessary and proportionate, oblige 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 sectorthe critical sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities and the defence sector. This priority order mechanism should be considered a last resort measure. The beneficiary of such a priority order has a due-diligence obligation and should be able to show that it has exhausted all other preventative mitigation measures, such as finding alternative suppliers or creating stockpiles. 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 . The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures should be proportionate and restricted to what is 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 294 #
Proposal for a regulation
Recital 46
Recital 46
(46) A number of sectors are critical for the proper functioning of the internal market. Those critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 . For the purposes of this Regulation, defence and other activities that are relevant for public safety and security should be additionally considered as a critical sector. Certain measures should only be enacted fur the purpose of securing supply to critical sectors in a crisis stage. The Commission mayshould limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. _________________ 61 COM(2020) 829. 16.12.2020.
Amendment 327 #
Proposal for a regulation
Recital 59
Recital 59
(59) In order to ensure trustful and constructive cooperation of competent authorities at Union and national level, all parties involved in the application of this Regulation should respect the confidentiality of information and data, including trade secrets or content protected by intellectual property rights, obtained in carrying out their tasks. 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 should not disclose information acquired or exchanged by them pursuant to this Regulation and of the kind covered by the obligation of professional secrecy. This should also apply to the European Semiconductor Board and the Semiconductor Committee established in this Regulation. Where appropriate, the Commission should be able to adopt implementing acts to specify the practical arrangements for the treatment of confidential information, including trade secrets or content protected by intellectual property rights, in the context of information gathering.
Amendment 328 #
Proposal for a regulation
Recital 59 a (new)
Recital 59 a (new)
(59 a) Innovative businesses are increasingly exposed to unlawful or anticompetitive practices aimed at misappropriating intellectual property and trade secrets, such as theft, unauthorised copying, industrial espionage or the breach of confidentiality requirements from outside the Union, particularly in high-technology fields like the semiconductor sector. Intellectual property theft or the unlawful use of trade secrets in the semiconductor sector could compromise the objectives of the Chips Act by inhibiting the ability of private holders of intellectual property to obtain legitimate first-mover returns from their innovation-related efforts and thus diminish incentives for private investment. In the absence of the effective enforcement of the existing rules for the protection of intellectual property in third countries, incentives to engage in innovation-related activity beyond the borders of the internal market could therefore be undermined. This Regulation should therefore ensure the effective enforcement of intellectual property law in the semiconductor sector, in full respect of Directives (EU) 2016/9431a and 2004/48/EC1b of the European Parliament and of the Council. Further more, it introduces stricter terms for beneficiaries for engaging in significant transactions in third countries with an intellectual property theft programme directed at the Union of a Member State.
Amendment 331 #
Proposal for a regulation
Recital 62
Recital 62
(62) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the selection of ECICs and as regards the procedure for establishing and defining the tasks of competence centres and the procedure for establishing the network, so that the objectives of the Initiative are achieved. Furthermore, implementing powers should be conferred on the Commission as regards activating the crisis stage in a semiconductor crisis, to allow a rapid and coordinated response, and for specifying the practical arrangements for the treatment of confidential information, including trade secrets or content protected by intellectual property right. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council64 of the European Parliament and of the Council. _________________ 64 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, (OJ L 55, 28.2.2011, p. 13).
Amendment 343 #
Proposal for a regulation
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
(4) ‘semiconductor supply chain’ means the system of activities, organisations, actors, technology, information, resources and services involved in the production of semiconductors, including raw materials and gases, manufacturing equipment, design, fabrication, assembly, testing an, packaging and advanced packaging;
Amendment 355 #
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, or capable of manufacturing materials or equipment exclusively used in semiconductor manufacturing, that is not 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, indium phosphide and gallium nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance;
Amendment 367 #
Proposal for a regulation
Article 2 – paragraph 1 – point 15
Article 2 – paragraph 1 – point 15
(15) ‘key market actors’ means undertakings in the Union semiconductor sectorvalue chain, the reliable functioning of which is essential for the semiconductor supply chain;
Amendment 373 #
Proposal for a regulation
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
(16) ‘critical sector’ means any sector referred to in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities, and the defence sector and other activities that are relevant for public safety and security;.
Amendment 380 #
Proposal for a regulation
Article 2 – paragraph 1 – point 16 a (new)
Article 2 – paragraph 1 – point 16 a (new)
(16 a) ‘crisis’ means a serious and unforeseen event which has a severe impact on the Union and substantially endangers or restricts the security, safety and the public health and alters the normal functioning of society and of the economy, and requires exceptional last- resort measures in order to supply the population with critical necessities;
Amendment 382 #
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, critical raw materials and gases required to produce semiconductors or intermediate products, that are materially affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereof;
Amendment 394 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. The general objective of the Initiative is to support large-scale technological capacity building and innovation throughout the Union’s semiconductor value chain and to enable development and deployment of cutting- edge and next generation semiconductor and quantum technologies that will reinforce the Union advanced design, systems integration and chips production and packaging capabilities, as we. It shall aslso contribute to the achievement of the twin digital and green transition, improving the sustainability, reducing the environmental impact of next generation chips and strengthening the circular economy processes, and address security needs by enabling secure and resilient designs that defend against cybersecurity threats.
Amendment 434 #
Proposal for a regulation
Article 4 – paragraph 2 – point e – point 3
Article 4 – paragraph 2 – point e – point 3
(3) accelerating investment in the field of semiconductor manufacturing technologies and chip design and to leveraging funding from both the public and the private sectors, while increasing the security of supply and intellectual property protection for the whole semiconductor value chain.
Amendment 479 #
Proposal for a regulation
Article 8 – paragraph 4
Article 8 – paragraph 4
4. The network shall have substantial overall autonomy to lay down its organisation, composition and working methods. However, the organisation, composition and working methods of the network shall represent the Union’s semiconductor valuechain, and be in accordance with and contribute to the aims and objectives of this Regulation and the Initiative.
Amendment 542 #
Proposal for a regulation
Article 11 – paragraph 3 a (new)
Article 11 – paragraph 3 a (new)
3 a. The operator of the Open EU Foundry should be able to flexibly adjust the share of capacity dedicated to serve unrelated undertakings, as opposed to that dedicated to its own semiconductor manufacturing purposes.
Amendment 570 #
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. The Commission shall commit to assess in a timely manner the intended state aid support schemes for first-of-a-kind semiconductor facilities pursuant to Article 107 (3) (c) TFEU.
Amendment 596 #
Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part
Article 15 – paragraph 1 – subparagraph 1 – introductory part
The Commission, in cooperation with Member States shall carry out regular monitoring of the semiconductor value chain. In particular, they shall:
Amendment 606 #
Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2
Article 15 – paragraph 1 – subparagraph 2
Amendment 608 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. The Commission, in cooperation with Member States shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set-up for these updates.
Amendment 613 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. The Commission, in cooperation with 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 SMEsThey will provide for standardised and secure means for the information collection and processing for the purpose of paragraph 1, with due regard to minimiszing the administrative burden resulting from the request, in particular for SMEs, and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27.
Amendment 620 #
Proposal for a regulation
Article 15 – paragraph 5 – point a – point 1 a (new)
Article 15 – paragraph 5 – point a – point 1 a (new)
(1 a) coordinating with stakeholders of the semiconductor value chain with a view of identifying, preparing and operationalising preventative measures to mitigate shortages and choke points that would prevent escalation towards a crisisstage;
Amendment 621 #
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, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions or third country decisions, such as those related to extraterritorial export restrictions, that could cause such disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora or other diplomatic measures, while ensuring robust engagement with the stakeholder community.
Amendment 630 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. The Commission shall, after consulting develop a list of early warning indicators in cooperation with the European Semiconductor Board, assess with a view to identify 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.
Amendment 631 #
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 necessary.
Amendment 634 #
Proposal for a regulation
Article 16 – paragraph 3
Article 16 – paragraph 3
3. When monitoring the semiconductor value chain pursuant to Article 15, Member States shall monitor the early warning indicators identified by the Commission and the European Semiconductor Board.
Amendment 648 #
Proposal for a regulation
Article 18 – paragraph 1 – introductory part
Article 18 – paragraph 1 – introductory part
1. A semiconductor crisis shall be considered to occur as defined in Article 2(1)(16a) when there are serious disruptions in the supply of semiconductors leading to significant shortages, which:
Amendment 651 #
Proposal for a regulation
Article 18 – paragraph 1 – point a
Article 18 – paragraph 1 – point a
(a) entail significant delays or significant negative effects on one or more important economiccritical sectors in the Union, or
Amendment 684 #
Proposal for a regulation
Article 20 – paragraph 1
Article 20 – paragraph 1
1. The Commission shall, after consulting the European Semiconductor Board, 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. The requested information shall be limited to what is the minimum necessary to assess the nature of the semiconductor crisis or to identify and assess potential mitigation or emergency measures at national or Union level. The Commission shall substantiate its targeted requests for sensitive and business confidential data and shall keep them to the minimum. The Commission shall develop the request for information in cooperation with the European Semiconductor Board. The Commission shall provide for secure means for the information collection and processing that ensures confidentiality, business secrecy and cybersecurity with due regard to minimising the administrative burden on SMEs.
Amendment 693 #
Proposal for a regulation
Article 20 – paragraph 2
Article 20 – paragraph 2
2. The request for information shall state its legal basis, be proportionate in terms of the granularity and volume of the data and frequency of access to the data requested, have regard for the legitimate aims of the undertaking and, take into account the protection of trade secrets and business sensitive information, the cost and effort required to make the data available, and set out the time limit within which the information is to be provided. It shall also indicate the penalties provided for in Article 28.
Amendment 711 #
Proposal for a regulation
Article 21 – paragraph 4
Article 21 – paragraph 4
4. The obligations under paragraph 1, 2 and 3 shall be enacted by the Commission via decision. The decision shall be takena last resort measure taken after consulting the European Semiconductor Board, in accordance with all applicable Union legal obligations, having regard to the circumstances of the case, including the principles of necessity and proportionality. The decision shall in particular have regard forbeneficiary of such a priority order has a due-diligence obligation and should be able to show that it has exhausted all other preventative mitigation measures, such as finding alternative suppliers or creating stockpiles. The decision shall only be made when all other measures have been exhausted and in particular have regard for the preventative mitigation measures taken by the critical sector requesting the priority order and the legitimate aims of the undertaking concerned and the cost and effort required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, and, where applicable, specify the product and quantity, and state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at fair and reasonable price.
Amendment 742 #
Proposal for a regulation
Article 23 – paragraph 2 – point c
Article 23 – paragraph 2 – point c
(c) discussing and preparing, with involvement of key market actors, the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products;
Amendment 746 #
Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)
Article 23 – paragraph 2 – point d a (new)
Amendment 749 #
Proposal for a regulation
Article 23 – paragraph 2 – point e a (new)
Article 23 – paragraph 2 – point e a (new)
Amendment 753 #
Proposal for a regulation
Article 23 – paragraph 3
Article 23 – paragraph 3
3. The European Semiconductor Board shall support the Commission in international cooperation, including aggregated information gathering and crisis assessment, in line with international obligations.
Amendment 763 #
Proposal for a regulation
Article 24 – paragraph 4
Article 24 – paragraph 4
4. The Commission may establish standing or temporary sub-groups for the purpose of examining specific questions. Where appropriate, the Commission mayshould invite organisations representing the interests of the semiconductor industry, including members of the Industrial Alliance on Processors and Semiconductor Technologies and users of semiconductors at Union level, to participate in such sub- groups in the capacity of observeras observers that enjoy speaking rights, but no voting rights. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board.
Amendment 768 #
Proposal for a regulation
Article 25 – paragraph 4
Article 25 – paragraph 4
4. The Commission mayshould involve industry and civil society stakeholders in their respective roles, meaning that the Commission is encouraged to appoint observers to take part in the meetings, as appropriate. The Commission may invite experts with specific expertise, including from relevant stakeholder organisations, such as the Industrial Alliance for Processors and Semiconductor Technologies , with respect to a subject matter on the agenda to take part in the meetings of the European Semiconductor Board on an ad hoc basis. The Commission may facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. The Commission shall invite a representative from the European Parliament as an observer to the European Semiconductor Board. The Commission shall ensure the participation of relevant other Union institutions and bodies as observers to the European Semiconductor Board with respect to meetings concerning Chapter IV on monitoring and crisis response. Observers and experts shall not have voting rights and shall notbut may be invited to participate in the formulation of opinions, recommendations or advice of the European Semiconductor Board and its sub-groups.
Amendment 770 #
Proposal for a regulation
Article 25 – paragraph 5
Article 25 – paragraph 5
5. The European Semiconductor Board shall take the necessary measures to ensure the safe handling and processing of confidential information, including trade secrets or content protected by intellectual property rights.
Amendment 777 #
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 particularany intellectual property rights and sensitive business information orand trade secrets. They shall take appropriate technical and organisational measures to preserve the confidentiality of sensitive business information and trade secrets. This obligation shall apply to all representatives of Member States, key market actors 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 792 #
Proposal for a regulation
Article 28 – paragraph 2
Article 28 – paragraph 2
2. Fines imposed in the cases referred to in paragraph 1 (a) and (b) shall not exceed 300 000 EUR. If the concerned undertaking is an SME, the fines imposed shall not exceed 100 000 EUR.
Amendment 793 #
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 1 % of the average daily turnover of the SME concerned.