Activities of Henrike HAHN related to 2022/0032(COD)
Plenary speeches (1)
European Chips Act (debate)
Shadow reports (1)
REPORT 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 (120)
Amendment 120 #
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 chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notablydisruptions have exposed a strong third- country dependency in manufacturing and design of chips.
Amendment 146 #
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 produc, produce, package, reuse and recycle advanced components. 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 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 151 #
(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. 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 coBased on an approved methodology, a subsequent mapping of the semiconductor value chains should form the basis ford inated approach to crisis preparedness for the cross-border semiconductor value chain depth impact assessment for the measures proposed within the crisis response mechanism.
Amendment 153 #
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, the European Parliament and chaired by the Commission. The European Semiconductor Board will, granting stakeholders the possibility to become official observers and to provide expert input, will approve the methodology for the mapping of the semiconductor value and supply chain, 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 ensuring access to members and observers of the European Semiconductor Board.
Amendment 162 #
Proposal for a regulation
Recital 8
Recital 8
(8) The semiconductor sector is characterised by very high development and innovation costs and very high costs for building state of the art testing and experimentation facilities to support the industrial production. This has direct impact on the competitiveness and innovation capacity of the Union industry, as well as on the security and resilience of the supply. In light of the lessons learnt from recent shortages in the Union and worldwide and the rapid evolution of technology challenges and innovation cycles affecting the semiconductor value chain, it is necessary to strengthen the Union’s existing strengths, thus increasing its relative competitiveness, resilience and innovation capacity by setting up the Initiative.
Amendment 170 #
Proposal for a regulation
Recital 10
Recital 10
(10) The Horizon Europe Framework programme established by Regulation (EU) 2021/695 of the European Parliament and of the Council51 (Horizon Europe) – the Framework Programme for Research and Innovation, has the objective to strengthen the European research area (ERA), encouraging it to become more competitive, including in its industry, while promoting all research and innovation (R&I) activities to deliver on the Union's strategic priorities and commitments, which ultimately aim to promote peace, the Union's values and the well-being of its peoples. As a major priority ofSince the UInion, the total financial resources allocated to the programme should not be reduced and the reduction of the financial resources of the progtiative was not envisaged when the multiannual financial framme, aimed to reinforce the financial envelope of the Digital Europe programme with the aim of contributing to the Chips initiative, should be compensated by another source. Consequently, without prejudice to the institutional prerogatives of the European Parliament and of the Council, an amount of commitment appropriations equivwork (MFF) for 2021-2027 was established, and to avoid any cuts to other Union initiatives and programmes, the amount of the financial ent to the reduction should be made available to Horizon Europe over the period 2023-2027, resulting from total or partial non-implementation of projects belonging to that programme or its predecessor, as provided for in Article 15(3) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council52 (the Financial Regulation). This amount will be in addition to the EUR 0.5 velope should be drawn from the unallocated margins under the MFF ceilings or mobillion (in 2018 prices) already mentioned in the Joint Declaration by the European Parliament, the Counsed through the non-thematic MFF special and the Commission on the re-use of decommitted funds in relation to the research programmeinstruments. _________________ 51 Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013. (OJ L 170, 12.5.2021, p. 1). 52 Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).
Amendment 173 #
Proposal for a regulation
Recital 11
Recital 11
(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest. To achieve this, the Union and Member States, should take into consideration the twin digital and green and shall align all investments with the goals of the twin green and digital transition goals. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.
Amendment 180 #
Proposal for a regulation
Recital 12
Recital 12
(12) In order to achieve its general objective, and address both the supply and demand side challenges of the current semiconductor ecosystem, the Initiative should include five main components. First, to reinforce Europe’s design capacity, the Initiative should support actions to build a virtual platform that is available across the Union. The platform should connect the communities of design houses, SMEs and start-ups, intellectual property and tool suppliers, with research and technology organisations to provide virtual prototype solutions based on co- development of technology. Second, in order to strengthen the security and resilience of supply and reducing the Union’s dependency on third country production, the Initiative should support development and access to pilot lines. The pilot lines should provide for the industry a facility to test, experiment and validate semiconductor technologies and system design concepts at the higher technology readiness levels beyond level 3 but under level 8 while preducingventing negative environmental impacts as much as possible, especially reducing to a minimum the use of water, energy, toxic chemicals and heavy metals. Union investments along Member States investment and with the private sector in pilot lines is necessary to address the existing structural challenge and market failure where such facilities are not available in the Union hindering innovation potential and global competitiveness of the Union. Third, in order to enable investments in alternative technologies, such as quantum technologies, conducive to the development of the semiconductors sector, the Initiative should support actions including on design libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).
Amendment 188 #
Proposal for a regulation
Recital 14
Recital 14
(14) Support from the Initiative should be used to address market failures or sub- optimal investment situations in a proportionate cost-effective manner, and actions should not duplicate or crowd out private financing or distort competition in the internal market. Actions should have a clear added value for the Union.
Amendment 203 #
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 a resilient ecosystem in the internal market. The qualifying factor for the production of a first-of-a-kind facility could b. ‘first- of-a-kind facility’ means a new or retrofitted industrial facility capable of semiconductor manufacturing or design, including front-end or back-end, or both, or capable of manufacturing materials or equipment specifically 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 and gallium nitride, or and other product or production innovation that can offer state-of-the-art better performance, process technology or energy and environmental performance. A facility of a comparable capability on an industrial scale should not yet substantively be present or committed to be built withincreases the recyclability of semiconductors, reduces significantly and demonstrably the required production inputs, such as energy, water, toxic chemicals and heavy metals, demonstrably enables energy savings in othe Union, excluding facilities for research and dever industries and sectors and enables the deplopyment or small-scale production sf renewable energy, storage and transmission capacities.
Amendment 213 #
Proposal for a regulation
Recital 22
Recital 22
(22) It is important that Integrated Production Facilities and Open EU Foundries are not subject to extraterritorial application of public service obligations imposed by third countries that could undermine their ability to use their infrastructure, software, services, facilities, assets, resources, intellectual property or knowhow needed to fulfil the obligation on priority rated orders under this Regulation, which they would have to guarantee.
Amendment 217 #
Proposal for a regulation
Recital 23
Recital 23
(23) In light of the fast development of semiconductor technologies and to strengthen the future industrial competitiveness of the Union, Integrated Production Facilities and Open EU Foundries should commit to continued and efficient investment into the next generations of semiconductors, including by testing and experimenting new developments through priority access to the pilot lines set up by the Chips for Europe Initiative, without prejudice to effective access by others, especially of SMEs and start-ups.
Amendment 219 #
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. 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 could take into account the overall record of the applicant, the clear and demonstrable contribution of the eligible action proposed to be implemented to the long term competitiveness of the Union's semiconductor industry and the objectives described in Article 4, the cost- effectiveness of the eligible action proposed to be implemented, the contribution to achieving the twin transition of the eligible action proposed to be implemented, the environmental impact of the eligible action proposed to be implemented and the commitment to prevent any damages to the environment and biodiversity as well as the participation of SMEs and start-ups. 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 225 #
Proposal for a regulation
Recital 26
Recital 26
(26) It is necessary that Integrated Production Facilities and Open EU Foundries are set-up as quickly as possible, while keeping the administrative burden to a minimum. For that reason, Member States should treat applications related to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries in the most rapid manner possible. They should appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator, serving as a single point of contact for the project. Moreover, where necessary for granting a derogation under Council Directive 92/43/EEC56 and Directive 2000/60/EC of the European Parliament and Council57 , the establishment and operation of these facilities, which should not prevent the necessary conducting of a climate and environmental impact assessment for every new or retrofitted facility. Extreme weather events, such as the droughts experienced in many be considered as being of overriding public interestMember States in Summer of 2022 together within the meaning of the aforementioned legal texts, provided that the remaining other conditions set out insignificant quantities of water and energy necessary for these provisions are fulfilled. _________________ 56 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora. 57 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policyduction of semiconductors highlight the importance of such climate and environmental impact assessments.
Amendment 233 #
Proposal for a regulation
Recital 29
Recital 29
Amendment 238 #
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 and approved approach to regular monitorapping is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. Member States 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 243 #
Proposal for a regulation
Recital 31
Recital 31
(31) Any relevant findings, including informationinformation, inter alia provided by relevant stakeholders and industry associations, should be provided to the European Semiconductor Board to allow for a regular exchange of information between high- level representatives of Member States, the European Parliament and official observers and for integration of the information into a monitoring overviewapping of the semiconductor value chains.
Amendment 249 #
Proposal for a regulation
Recital 33
Recital 33
Amendment 254 #
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, based on the findings of the impact assessment specified in this act. 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.
Amendment 260 #
Proposal for a regulation
Recital 35
Recital 35
(35) As part of the monitoring, nNational competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and notifyprovide this information to the Commission.
Amendment 261 #
Proposal for a regulation
Recital 36
Recital 36
(36) In order to facilitate effective monitoring, in-depth assessment of the risks associated with different stages of the semiconductor value chain is needed, including on the origins and sources of supplies beyond the Union. Such risks may be related to critical inputs and equipment for the industry, including digital products that may be vulnerable, possible impact of counterfeit semiconductors, manufacturing capacities and other risks that may disrupt, compromise or negatively affect the supply chain. Those risks could include supply chains with a single point of failure or which are otherwise highly concentrated. Other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. The Commission should, assisted by the European Semiconductor Board and taking also into account information received from the main user categories, develop a Union level risk assessmentapping the Commission shall propose a methodology for mapping the relevant semiconductor value chains. This methodology shall be approved by the European Semiconductor Board.
Amendment 266 #
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 in 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 indicatorsand based on the mapping of the semiconductor value chain, identify early warning indicators and conduct a Union risk assessment.
Amendment 272 #
Proposal for a regulation
Recital 40
Recital 40
(40) As part of the monitorapping, Member States could 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 European Semiconductor Board by the Member State concerned.
Amendment 274 #
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 cas’ means the existence of serious disruptions toin the supply of semiconductors supply chain, 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 addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages whichof semiconductors, intermediate products or raw and processed materials, at any link of the semiconductor value chain, which demonstrably prevents the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipmof the semiconductor supply chain itself or the normal functioning of critical sectors in providing essential goods and services to Union citizents.
Amendment 278 #
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 implementingonly after having consulted the European Semiconductor Board and after fully having taken into consideration its opinion, by means of delegated 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, based on an additional delegated act, should such a necessity be ascertained, taking into account the opinion of the European Semiconductor Board.
Amendment 282 #
Proposal for a regulation
Recital 44
Recital 44
(44) Close cooperation between the Commission and the Member States 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 such measures taken should be fully based on the findings of the impact assessment outlined in this Regulation and strictly limited to the duration period of the crisis stage.
Amendment 286 #
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 could 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 . 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)fully based on the findings of the impact assessment outlined in this Regulation and should be 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.
Amendment 291 #
(46) A number of sectors are critical for the proper functioning of the internal market. Those cCritical 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 as well as the producers of renewable energy, storage and distribution and transmission equipment. 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. The Commission may 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 296 #
Proposal for a regulation
Recital 47
Recital 47
Amendment 300 #
Proposal for a regulation
Recital 48
Recital 48
Amendment 305 #
Proposal for a regulation
Recital 49
Recital 49
Amendment 308 #
Proposal for a regulation
Recital 50
Recital 50
Amendment 310 #
Proposal for a regulation
Recital 51
Recital 51
Amendment 311 #
Proposal for a regulation
Recital 52
Recital 52
Amendment 315 #
Proposal for a regulation
Recital 53
Recital 53
(53) When the crisis stage is activated, fully based on the findings of the impact assessment outlined in this Regulation, 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. 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.
Amendment 317 #
Proposal for a regulation
Recital 54
Recital 54
(54) During a semiconductor shortage crisis, it might become necessary that the Union considersthe findings of the impact assessment outlined in this Regulation should indicate whether Union protective measures can significantly contribute to solving thesemi conductor crisis, taking also into consideration potential second round effects of such protective measures. The European Semiconductor Board mayshould 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 and whether it agrees with the conclusion of the Commission, which are based the findings of the impact assessment outlined in this act, regarding the necessity of protective measures.
Amendment 321 #
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 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. The European Semiconductor board should approve the methodology, proposed by the Commission, for the mapping of the relevant semi conductor value chains.
Amendment 323 #
Proposal for a regulation
Recital 56
Recital 56
(56) A representative of the Commission should chair the European Semiconductor Board. Each Member State’s national single point of contact as well as the European Parliament should appoint at least one high-level representative to the European Semiconductor Board. They could also appoint different representatives in relation to different tasks of the European Semiconductor Board, for example, depending on which Chapter of this Regulation is discussed in the meetings of the European Semiconductor Board. The Commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the Union semiconductors industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, in its sub-groups as observers.
Amendment 324 #
Proposal for a regulation
Recital 57
Recital 57
(57) The European Semiconductor Board will hold separate meetings for its tasks under Chapter II and for its tasks under Chapter III and IV. Member States should endeavour to ensure effective and efficient cooperation in the European Semiconductor Board. The Commission should be able to facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. In light of the importance of the supply of semiconductors for other sectors and the resulting need for coordination, the Commission should ensure participation by other Union institutions and bodies as observers in meetings of the European Semiconductor Board where relevant and appropriate in relation to the monitoring and crisis response mechanism established under Chapter IV. In order to continue and make use of the work following the implementation of Commission Recommendation on a common Union toolbox to address semiconductor shortages, the European Semiconductor Board should carry out the tasks of the European Semiconductor Expert Group. Once the European Semiconductor Board is operational, this expert group should cease to exist.
Amendment 325 #
Proposal for a regulation
Recital 58
Recital 58
(58) Member States hold a key role in the application and enforcement of this Regulation. In this respect, each Member State should designate one or more national competent authorities for the purpose of effective implementation of this Regulation and ensure that those authorities are. The Commission and Member States should ensure that the relevant administrative bodies have the necessary level of expertise and adequately empowered and resourced. Member States could designate an existing authority or authorities. In order to increase organisation efficiency in the Member States and to set an official point of contact vis-a-vis the public and other counterparts at Member State and Union levels, including the Commission and the European Semiconductor Board, each Member State should designate, within one of the authorities it designated as competent authority under this Regulation, one national single point of contact responsible for coordinating issues related to this Regulation and cross-border cooperation with competent authorities of other Member States.
Amendment 329 #
Proposal for a regulation
Recital 60
Recital 60
Amendment 330 #
Proposal for a regulation
Recital 61
Recital 61
(61) The power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission in order to amend Annex I to this Regulation to reflect technological change and market developments, with regard to the actions set out therein in a manner fully consistent with the objectives of this Regulation and to amend Annex II thereto with regard to the measurable indicators where considered to be necessary as well as to supplement this Regulation with provisions on the establishment of a monitoring and evaluation frameworkspecified in this Regulation. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making63 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 63 OJ L 123, 12.5.2016, p. 1.
Amendment 332 #
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 informwhich should be fully based on the findings of the impact assessment outlined in this Regulation. 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 333 #
Proposal for a regulation
Recital 63
Recital 63
(63) Since the objective of this Regulation cannot be sufficiently achieved by the Member States and can rather, by reason of the scale or effects of the action, be better achieved at Union level, the Union may only adopt measures that are fully based on the findings of the impact assessment outlined in this Regulation and that are in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.
Amendment 337 #
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 for monitoring the supply of semiconductors and crisis response to semiconductor shortage, stakeholders from the semiconductor supply chain as well as stakeholders from critical sectors that might be affected by disruptions to the supply of semiconductors for mapping and monitoring the semiconductor supply chain and identify potential bottlenecks with publicly and commercially available data as well as data voluntarily provided by the stakeholders, and articulating crisis prevention and management tools.
Amendment 348 #
(10) ‘first-of-a-kind facility’ means an new or retrofitted industrial facility capable of semiconductor manufacturing or design, including front-end or back-end, or both, or capable of manufacturing materials or equipment specifically 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 and gallium nitride, andor other product or production innovation that can offer better performance, process innovation or energy and environmental performancestate-of-the-art performance, increases the recyclability of semiconductors, reduces significantly and demonstrably the required production inputs, such as energy, water, toxic chemicals and heavy metals, demonstrably enables energy savings in other industries and sectors and enables the deployment of renewable energy, storage and transmission capacities;
Amendment 359 #
Proposal for a regulation
Article 2 – paragraph 1 – point 11
Article 2 – paragraph 1 – point 11
(11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in computing power or energy efficiency as well as other significant energy and environmental gain, power management, security, or energy generation, storage, transmission and efficiency or improvements in recyclability as well as other significant energy and environmental gains or that require significantly and demonstrably less production inputs, such as energy, water, toxic chemicals and heavy metals;
Amendment 369 #
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, all sectors producing equipment for the development and deployment of renewable energy generation, storage, distribution and transmission capacity, the defence sector and space and other activities that are relevant for public safety and security;
Amendment 383 #
Proposal for a regulation
Article 2 – paragraph 1 – point 17
Article 2 – paragraph 1 – point 17
(17) ‘crisis-relevant product’ means semiconductors, their packaging as well as intermediate products and raw materials required to produce semiconductors or intermediate products, that are affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereofcan demonstrably remedy dysfunctionalities in one of the critical sectors in providing essential goods and services to Union citizens;
Amendment 386 #
Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)
Article 2 – paragraph 1 – point 17 a (new)
(17 a) ‘semiconductor crisis’ means the existence of serious disruptions in the semiconductor supply chain, leading to significant shortages of semiconductors, intermediate products or raw and processed materials, at any link of the semiconductor value chain, which demonstrably prevents the normal functioning of critical sectors in providing essential goods and services to Union citizens;
Amendment 390 #
Proposal for a regulation
Article 2 – paragraph 1 – point 19 a (new)
Article 2 – paragraph 1 – point 19 a (new)
(19 a) ‘demonstrably’ means ‘as demonstrated’ by independent experts in their relevant fields in a respective and publicly available report endorsed by the Commission under the advice of the European Semiconductor Board;
Amendment 396 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. The general objective of the Initiative is to support large-scaimprove the long-term relative competitiveness of the Union's semiconductor industry by leveraging already existing capabilities and comparative advantages and investing in a cost-effective way and foster to the extent possible technological capacity building and innovation throughout the Union 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 capabilities, as well as contribute to the achievement of the twin digital and green transition.
Amendment 402 #
Proposal for a regulation
Article 4 – paragraph 2 – point a – introductory part
Article 4 – paragraph 2 – point a – introductory part
(a) building up advanced large-scale and specialised design capacities for integrated semiconductor technologies. This operational objective shall be achieved through:
Amendment 412 #
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 energy andrenewable energy, manufacturing according to the highest environmental standards with an obligation to reduce the required production inputs, such as water, energy, toxic chemicals and heavy metals , electro mobility, lower energy consumption, energy efficiency, 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;
Amendment 419 #
Proposal for a regulation
Article 4 – paragraph 2 – point b – point 3
Article 4 – paragraph 2 – point b – point 3
(3) providing support to Integrated Production Facilities and Open EU Foundries through priorityaccess to the new pilot lines, as well as providing access to the new pilot lines for all interested parties and guaranteeing access to start-ups and SMEs.
Amendment 427 #
Proposal for a regulation
Article 4 – paragraph 2 – point d – point 2
Article 4 – paragraph 2 – point d – point 2
(2) address the skills shortage, attracting and mobilising new talent and supporting the emergence of a suitably skilled workforce with advanced skills up to the PhD level for strengthening the semiconductor sector, including via reskilling and up skilling of students and skilled workers.
Amendment 436 #
Proposal for a regulation
Article 5
Article 5
Amendment 442 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. The Initiative shall enable synergies with Union programmes, as referred to in Annex III. The Commission shall ensure that the achievement of the objectives isof the other programmes are not hampered when leveraging the complementary character of the Initiative with Union programmes.
Amendment 447 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. For the purpose of implementing 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.
Amendment 452 #
Proposal for a regulation
Article 7 – paragraph 3 – point b a (new)
Article 7 – paragraph 3 – point b a (new)
(b a) a document detailing how the actions taken by the ECIC will be technically contributing to the objectives laid down in Article 4;
Amendment 453 #
Proposal for a regulation
Article 7 – paragraph 3 – point b b (new)
Article 7 – paragraph 3 – point b b (new)
(b b) a detailed statement on why and how much public funding is necessary to achieve the actions outlined in the application;
Amendment 456 #
Proposal for a regulation
Article 7 – paragraph 4 – point f a (new)
Article 7 – paragraph 4 – point f a (new)
(f a) the clear and demonstrable contribution of the eligible action proposed to be implemented to the long term competitiveness of the Union semiconductor industry and the objectives laid down in Article 4;
Amendment 459 #
Proposal for a regulation
Article 7 – paragraph 4 – point f b (new)
Article 7 – paragraph 4 – point f b (new)
(f b) cost-effectiveness of the eligible action proposed to be implemented;
Amendment 460 #
Proposal for a regulation
Article 7 – paragraph 4 – point f c (new)
Article 7 – paragraph 4 – point f c (new)
(f c) contribution to achieving the twin transition, of the eligible action proposed to be implemented;
Amendment 461 #
Proposal for a regulation
Article 7 – paragraph 4 – point f d (new)
Article 7 – paragraph 4 – point f d (new)
(f d) the environmental impact of the eligible action proposed to be implemented and a credible strategy and commitment to prevent any damages to the environment and biodiversity, including sufficient measures to ensure that any negative consequences will be treated according to the polluter pays principle;
Amendment 462 #
Proposal for a regulation
Article 7 – paragraph 4 – point f e (new)
Article 7 – paragraph 4 – point f e (new)
(f e) the participation of SMEs and start-ups;
Amendment 467 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. For the purpose of implementing actions under the Initiative’s component referred to in Article 5, point (d), a European network of competence centres in semiconductors (the ‘network’) mayshall be established.
Amendment 481 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. The components listed in points (a) to (d) of Article 5 under the Initiative may be entrusted togeneral objectives as well as the operational objectives laid down in Article 4(2), paragraphs a, b and c shall be stated in their entirety in the basic act establishing the Chips Joint Undertaking referred to in, Council Regulation XX/XX amending Council Regulation (EU) 2021/2085 and implemented in the work programme of the Chips Joint Undertaking.
Amendment 485 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Integrated Production Facilities are new or retrofitted 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 market or improve the relative competitiveness of the Union's semiconductor industry.
Amendment 491 #
Proposal for a regulation
Article 10 – paragraph 2 – point b
Article 10 – paragraph 2 – point b
(b) its establishment and operation have a clear positive impact on the Union’s semiconductor value chain with regard to ensuring the security of supply inter alia by increasing the strategic relevance of or demand for specific Union's semiconductor products and services within the global semiconductor value chain, and increasing qualified workforce;
Amendment 500 #
Proposal for a regulation
Article 10 – paragraph 2 – point c
Article 10 – paragraph 2 – point c
(c) it guarantees not to be subject to the extraterritorial application of public service obligations of third countries in a way that may undermine the undertaking’s ability to comply with the obligations set out in Article 21(1) and commits to inform the Commission when such obligation arises;
Amendment 507 #
Proposal for a regulation
Article 10 – paragraph 2 – point d
Article 10 – paragraph 2 – point d
(d) it commits to invest in the design, production, packaging, reuse or recycling of next generation of chips.
Amendment 511 #
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. For the purpose of investing in the design, production, packaging, reuse or recycling next generation of chips according to paragraph 2, point (d), the Integrated Production Facility shall have priority access to the pilot lines set up in accordance with Article 54, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings, especially SMEs and start-ups.
Amendment 515 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Open EU Foundries are new or retrofitted 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 market or improve the relative competitiveness of the Union's semiconductor industry.
Amendment 522 #
Proposal for a regulation
Article 11 – paragraph 2 – point b
Article 11 – paragraph 2 – point b
(b) its establishment and operation have a clear positive impact on the Union’s semiconductor value chain with regard to ensuring the security of supply inter alia by increasing the strategic relevance of or demand for specific Union's semiconductor products and services within the global semiconductor value chain, and increasing qualified workforce, taking into account in particular the extent to which it offers design or front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;
Amendment 531 #
Proposal for a regulation
Article 11 – paragraph 2 – point c
Article 11 – paragraph 2 – point c
(c) it guarantees not to be subject to the extraterritorial application of public service obligations of third countries in a way that may undermine the undertaking’s ability to comply with the obligations set out in Article 21(1) and commits to inform the Commission when such obligation arises;
Amendment 538 #
Proposal for a regulation
Article 11 – paragraph 2 – point d
Article 11 – paragraph 2 – point d
(d) it commits to invest in the design, production, packaging, reuse or recycling of next generation of chips.
Amendment 544 #
Proposal for a regulation
Article 11 – paragraph 4
Article 11 – paragraph 4
4. For the purpose of investing in the design, production, packaging, reuse or recycling of next generation of chips according to paragraph 2, point (d), the Open EU Foundry shall have priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings, especially SMEs and start- ups.
Amendment 550 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point b
Article 12 – paragraph 2 – subparagraph 1 – point b
(b) a business plan evaluating the financial viability of the project, including informa detailed calculation of any funding gap including a description of the methodology that is used for this calculation onand any information on planned public support;
Amendment 555 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d a (new)
Article 12 – paragraph 2 – subparagraph 1 – point d a (new)
(d a) a detailed environmental and climate impact assessment, especially focusing on water and energy use as well as the use, treatment and disposal of toxic chemicals and heavy metal;
Amendment 556 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d b (new)
Article 12 – paragraph 2 – subparagraph 1 – point d b (new)
(d b) its cost-effectiveness in achieving the stated targets;
Amendment 557 #
(d c) the commitment to invest in re- and upskilling of the existing labour force as well investing into the training and education of students from BSc to the PhD level.
Amendment 559 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 2
Article 12 – paragraph 2 – subparagraph 2
The Commission shall request additional information where it considers the information provided by the applicant as incomplete and process the application and adopt its decision in a timely manner and notify the applicant thereof.
Amendment 562 #
Proposal for a regulation
Article 12 – paragraph 3
Article 12 – paragraph 3
3. The Commission shall monitor the activities of the Integrated Production Facilities and the Open EU Foundries only to the extent necessary to evaluate if all the requirements for recognising a facility as Integrated Production facility or Open EU Foundry are fulfilled. Where the Commission finds that a facility no longer fulfils the criteria set out in Articles 10(2) or in Article 11(2) respectively, it shall notify the findings to the European Semiconductor Board. After consulting the European Semiconductor Board and after hearing the facility, the Commission may repeal the decision granting a facility the status of Integrated Production Facility or Open EU Foundry.
Amendment 578 #
Proposal for a regulation
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2 a. All financial and regulatory support provisions referred in Article 10 to 14 shall cease to apply at latest on 31st December 2027.
Amendment 581 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Where such status exists in national law, Integrated Production Facilities and Open EU Foundries shall be allocated the status of the highest national significance possible and be treated as such in permit granting processes, including those relating to environmental assessm. In order to comply to the goals of the twin green and digital transition, no derogation from environmental assessments and requirements shall be granted, while stringent requirements shall be put in place for the use of water and the reduction of biodiversity impact. In determining the location of such facilities, the spatial planning procedures shall apply to the outmost extents and if national law so provides, in spatial planningthe interaction with the regional infrastructure and its environmental and social consequences shall be factored in the decision to allow the construction.
Amendment 584 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
Amendment 588 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. For each Integrated Production Facility and Open EU Foundry, the Member State concerned shall nominate an authority responsible for facilitating and coordinating administrative applications related to planning, construction and operation. The authority shall appoint a coordinator who shall serve as the single point of contact for the Integrated Production Facility or Open EU Foundry. The authority may establish a working group where all authorities involved in the administrative applications are represented in order to draw up a permit granting schedule and to monitor and coordinate its implementation. If the setting up of an Integrated Production Facility or an Open EU Foundry requires decisions to be taken in two or more Member States, the respective authorities shall take all necessary steps for efficient and effective cooperation and coordination among themselves. In all cases the goals of the twin green and digital transition must be respected and the polluter pays principle must be effectively and efficiently implemented.
Amendment 590 #
Proposal for a regulation
Chapter IV – title
Chapter IV – title
IV Monitorapping and Crisis ResponsePrevention
Amendment 591 #
Proposal for a regulation
Chapter IV – Section 1 – title
Chapter IV – Section 1 – title
1 Monitorapping
Amendment 592 #
Proposal for a regulation
Article 15
Article 15
Amendment 624 #
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Amendment 625 #
Proposal for a regulation
Article 16
Article 16
Amendment 637 #
Proposal for a regulation
Article 17
Article 17
Amendment 655 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
2. WOnly after having consulted the European Semiconductor Board and having fully taken into consideration its opinion and where an assessment of the Commission provides concrete, serious, and reliable evidence of a semiconductor crisis, the Commission may activate the crisis stage by means of implementingdelegated acts in accordance with Article 33(2). The duration of the activation shall be specified in the implementing act. Where, in view of the scope and gravity of the semiconductor crisis, duly justified imperative grounds of urgency so require, the procedure provided for in Article 33(3) shall apply to implementing acts adopted pursuant to this Articledelegated act.
Amendment 664 #
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 review the Union risk assessment pursuant to Article 165a(2f) no later than six months after the expiry of the duration of the crisis stage.
Amendment 668 #
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 shall take the measure provided for in Article 20 under the conditions laid down therein. In additaccording to the impact assessment pursuant to Article 15a(3) and after having consulted the Semiconductor Board, in order to address the semiconductor crisis in the Union, the Commission may take the measures provided for in Article 21 or Article 22, or both, under the conditions laid down therein.
Amendment 670 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. The Commission may, after consulting the European Semiconductor Boardshall, 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 674 #
Proposal for a regulation
Article 19 – paragraph 3 – point a
Article 19 – paragraph 3 – point a
(a) assess the impact of the possible imposition of protective measures, including in particular whether the market situation corresponds to a significant shortage of an essential product pursuant to Regulation 2015/479 and provide an opinion to the Commission, taking into account the findings of the impact assessment pursuant to Article 15a(3);
Amendment 676 #
Proposal for a regulation
Article 19 – paragraph 3 – point b
Article 19 – paragraph 3 – point b
(b) assess and advise on further appropriate and effective emergency measures, taking into account the findings of the impact assessment pursuant to Article 15a(3).
Amendment 678 #
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, taking fully into account the findings of the impact assessment pursuant to Article 15a(3); and must be in the best long term interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on SME, especially on SMEs and start-ups.
Amendment 681 #
Proposal for a regulation
Article 19 – paragraph 6
Article 19 – paragraph 6
6. The Commission may, after consulting the European Semiconductor Board, issue guidance on the implementation and the use of the emergency measures, taking fully into account the findings of the impact assessment pursuant to Article 15a(3).
Amendment 683 #
Proposal for a regulation
Article 20
Article 20
Amendment 700 #
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 after having consulted the European Semiconductor Board may oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’) only if this can be justified based on the findings of the impact assessment pursuant to to Article 15a(3). The obligation shall take precedence over any performance obligation under private or public law.
Amendment 705 #
Proposal for a regulation
Article 21 – paragraph 2
Article 21 – paragraph 2
2. The obligation under paragraph 1 can also be imposed by the Commission after having consulted the European Semiconductor Board to other semiconductor undertakings which have accepted such possibility in the context of receiving public supportEuropean or Member State public support, only if this can be considered justified based on the findings of the impact assessment pursuant to Article 15a(3).
Amendment 707 #
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 obligation significantly impact the operation of certain critical sectors, the Commission after having consulted the European Semiconductor Board may oblige that undertaking to accept and prioritise orders of crisis relevant products in line with paragraph 4, 5 and 6, only if this can be considered justified based on the findings of the impact assessment pursuant to Article 15a(3).
Amendment 712 #
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 taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case, including the principles of necessity and proportionality and especially the findings of the impact assessment pursuant to Article 15a(3) . The decision shall in particular have regard for 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, where applicable, 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 prica reasonable price, that accounts for the cost and efforts required for any change in the production sequence as well as the cost associated with cancellation or delaying of existing orders, based on the market conditions at that time.
Amendment 717 #
Proposal for a regulation
Article 21 – paragraph 4 a (new)
Article 21 – paragraph 4 a (new)
4 a. The Commission shall ensure that these extra costs can be covered from the budget allocations before the priority rated order is placed.
Amendment 721 #
Proposal for a regulation
Article 21 – paragraph 5 – point a
Article 21 – paragraph 5 – point a
(a) if the undertaking is unable to perform the priority rated order on account of technical grounds including the time needed to change the production sequence, insufficient production capability or production capacity, even under preferential treatment of the order;
Amendment 725 #
Proposal for a regulation
Article 21 – paragraph 6 a (new)
Article 21 – paragraph 6 a (new)
6 a. The Commission shall make financial and legal provisions for the case that an undertaking is sued for breach of contract outside the jurisdiction of the Member States as a result of the priority rated order.
Amendment 728 #
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, especially based on the findings of the impact assessment pursuant to Article 15a(3). 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 745 #
Proposal for a regulation
Article 23 – paragraph 2 – point d
Article 23 – paragraph 2 – point d
(d) providing advice in addressing monitoring and crisis response issues;
Amendment 758 #
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 the European Parliament and shall be chaired by a representative of the Commission.
Amendment 764 #
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 may invite organisations representing the interests of the semiconductor industry, including the Industrial Alliance on Processors and Semiconductor Technologies and users of semiconductors at Union level, to provide input to such sub-groups in the capacity of observers. 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 772 #
Proposal for a regulation
Article 25 – paragraph 5 a (new)
Article 25 – paragraph 5 a (new)
5 a. After a public consultation, the Commission shall work together with the European Semiconductor board and relevant stakeholders to develop a framework and transparent methodology for a long-term strategic mapping of the semiconductor value chain. Those framework and methodology shall be approved by the members of the European Semiconductor board.
Amendment 787 #
Proposal for a regulation
Article 28
Article 28
Amendment 795 #
Proposal for a regulation
Article 29
Article 29
Amendment 796 #
Proposal for a regulation
Article 30
Article 30
Amendment 797 #
Proposal for a regulation
Article 31
Article 31
Amendment 804 #
Proposal for a regulation
Annex II
Annex II