36 Amendments of Isabella TOVAGLIERI related to 2022/0032(COD)
Amendment 83 #
Proposal for a regulation
Recital 29
Recital 29
(29) In light of the structural deficiencies of the semiconductor supply chain and the resulting risk of future shortages, this Regulation provides instruments for a coordinated approach to monitoring and effectively tackling possible market disruptions. The long-term objective of the monitoring exercise enshrined under this Regulation should be a shift from crisis mitigation to crisis prevention.
Amendment 84 #
Proposal for a regulation
Recital 30
Recital 30
(30) Due to the complex, quickly evolving and interlinked semiconductor value chains with various actors, a coordinated approach to regular monitoring is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. Member States, in close coordination with relevant stakeholders, 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,. The monitoring activity shall be targeted and purpose driven in such a way that it would not represent an excessive administrative burden for undertakings nor jeopardize confidentiality requirements .Information collected within the scope of this exercise shall be consistent, comparable at EU level and paced in line with evolving global developments. In this regard the Commission may provide guidance in order to avoid excessive defragmentation in the set-up of national monitoring mechanisms.
Amendment 92 #
Proposal for a regulation
Recital 35
Recital 35
(35) As part of the monitoring, national competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commission. Strategic mapping shall complement the monitoring activity under this Regulation and should serve the objective of understanding long-term interdependencies across the supply chain.
Amendment 110 #
Proposal for a regulation
Recital 42
Recital 42
(42) The semiconductor crisis stage should be triggered as last resort in the presence of concrete, serious, and reliable evidence of such a crisis. A semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the Union, either directly or through ripple effects of the shortage, given that the Union’s industrial sectors represent a strong user base of semiconductors. Alternatively or in addition, a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply, repair and maintenance of essential products used by critical sectors, for instance medical and diagnostic equipment.
Amendment 112 #
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. Equally, should supply chain recovery conditions be ascertained, the Commission, in accordance with the European Semiconductor Board, should assess the possibility of ending the crisis stage and related measures in advance.
Amendment 124 #
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 as well as key market actors and relevant end user industries for monitoring the supply of semiconductors and crisis response to semiconductor shortages.
Amendment 124 #
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 in high range but also in mid-low range of chips, 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, notably a strong third-country dependency in manufacturing and design of chips.
Amendment 126 #
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, the defence sector and other, activities that are relevant for public safety and security as well as any other activity or sector of strategic economic importance for Member States;
Amendment 134 #
Proposal for a regulation
Recital 3
Recital 3
(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability as well as to ensure supply of chips to core sectors for the Union's economy. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies.
Amendment 145 #
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 and manufacturing capacityies 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 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 in terms of manufacturing. 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 148 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. 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. In doing so, Member States shall consult relevant end user industries with a view to build the necessary mechanisms on existing industry best monitoring practices.
Amendment 163 #
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 competitiveness, resilience and, innovation capacity and manufacturing by setting up the Initiative.
Amendment 174 #
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, including upon indication of the European Semiconductor Board.
Amendment 179 #
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 reducing environmental impacts as much as possible. 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 and academic research centers 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
Article 18 – paragraph 3 a (new)
Article 18 – paragraph 3 a (new)
3 a. During the crisis stage the Commission shall, upon request from a Member State or on its own initiative, equally assess whether advance termination of crisis stage should be considered. Where the assessment concludes that earlier termination is appropriate, the Commission may conclude activation after consulting the European Semiconductor Board.
Amendment 207 #
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 strategic economic activities in the Union and must be in the best interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on SMEs.
Amendment 212 #
Proposal for a regulation
Article 19 – paragraph 6
Article 19 – paragraph 6
6. The Commission mayshall, after consulting the European Semiconductor Board, issue guidance on the implementation and the use of the emergency measures.
Amendment 215 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
1. The Commission may, upon the request of two or more Member States, establish a mandate to act as a central purchasing body on behalf of the participating Member States (‘participating Member States’) for their public procurement of crisis-relevant products for certain critical sectors or strategic economic activities in the Union (‘common purchasing’).
Amendment 219 #
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. Where the Commission intends not to follow the request, it shall inform the Member States concerned and the European Semiconductor Board without undue delay and give reasons for its refusal.
Amendment 223 #
Proposal for a regulation
Article 22 – paragraph 4
Article 22 – paragraph 4
4. Procurement under this Regulation shall be carried out by the Commission in accordance with the rules set out in the Financial Regulation for its own procurement. The Commission may have the ability and responsibility, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of crisis- relevant products, concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result. The Commission shall keep Member States duly informed of the progress of the procurement procedure.
Amendment 235 #
Proposal for a regulation
Recital 29
Recital 29
(29) In light of the structural deficiencies of the semiconductor supply chain and the resulting risk of future shortages, this Regulation provides instruments for a coordinated approach to monitoring and effectively tackling possible market disruptions and related impact on the competitiveness of European industry.
Amendment 241 #
Proposal for a regulation
Recital 30
Recital 30
(30) Due to the complex, quickly evolving and interlinked semiconductor value chains with various actors, a coordinated approach to regular monitoring is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. Member States 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 and European industrial end-users, in such a way that it would not represent an excessive administrative burden for undertakings.
Amendment 265 #
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 (raw materials, intermediate product) 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 assessment.
Amendment 293 #
Proposal for a regulation
Recital 46
Recital 46
(46) A number of sectors are critical for the proper functioning of the internal market and to preserve the competitiveness of European industries. 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, automotive and other activities that are relevant for public safety and security as well as economic wellness of Europe 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 297 #
Proposal for a regulation
Recital 47
Recital 47
(47) The purpose of requests for information from undertakings along the semiconductor supply chain established in the Union in the crisis stage is an in-depth assessment of the semiconductor crisis in order to identify potential mitigation or emergency measures at Union or national level and to support, in perspective, the independence from third country suppliers. Such information may include production capability, production capacity and current primary disruptions and bottlenecks. These aspects could include the typical and current actual stock of crisis-relevant products in its production facilities located in the Union and third country facilities which it operates or contracts or purchases supply from; the typical and current actual average lead time for the most common products produced; the expected production output for the following three months for each Union production facility; reasons that prevent the filling of production capacity; or other existing data necessary to assess the nature of the semiconductor crisis or potential mitigation or emergency measures at national or Union level. Any request should be proportionate, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, as well as set out appropriate time limits for providing the requested information. Undertakings should be obliged to comply with the request and may be subject to penalties if they fail to comply or provide incorrect information. Any information acquired should be subject to confidentiality rules. Should an undertaking be subject to a request for information related to its semiconductor activities from a third country, it should inform the Commission so to enable an assessment whether an information request by the Commission is warranted.
Amendment 304 #
Proposal for a regulation
Recital 48
Recital 48
(48) In order to ensure that critical sectors can continue to operate in a time of crisis and when necessary and proportionate for this purpose, Integrated Production Facilities and Open EU Foundries could be obliged by the Commission to accept and prioritise orders of crisis-relevant products. This obligation may also be extended to semiconductor manufacturing facilities which have accepted such possibility in the context of receiving public support to create or enlarge manufacturing capacity. The decision on a priority rated order should be taken in accordance with all applicable Union legal obligations, having regard to the circumstances of the case. The priority rating obligation should take precedence over any performance obligation under private or public law while it should have regard for the legitimate aims of the undertakings and the cost and effort required for any change in production sequence. Undertakings may be subject to penalties if they fail to comply with the obligation for priority rated orders.
Amendment 316 #
Proposal for a regulation
Recital 53
Recital 53
(53) When the crisis stage is activated, two or more Member States could mandate the Commission to aggregate demand and act on their behalf for their public procurement in the public interest, in accordance with existing Union rules and procedures, leveraging its purchasing power. The mandate could authorise the Commission to enter into agreements concerning the purchase of crisis-relevant products (raw material, intermediate 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 344 #
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, intermediate product, manufacturing equipment, design, fabrication, assembly, testing and packaging;
Amendment 345 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
(5) ‘semiconductor value chain’ means the set of activities in relation to a semiconductor product from its conception to its end use, including raw materials, intermediate product, manufacturing equipment, research, design, fabrication, testing, assembly and packaging to embedding and validation in end products;
Amendment 374 #
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, the defence sector, the mobility/automotive sector and other activities that are relevant for public safety and security;
Amendment 430 #
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 and mismatch, nurturing, attracting and mobilising new talent and supporting the emergence of a suitably skilled workforce for strengthening the semiconductor sector, including viastudents orientation, reskilling and upskilling of workers.
Amendment 440 #
Proposal for a regulation
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) advanced technology and engineering capacities for quantum chips and multilevel chips;
Amendment 451 #
Proposal for a regulation
Article 7 – paragraph 3 – point b
Article 7 – paragraph 3 – point b
(b) the draft Statutes of the ECIC that shall include at least the provisions on: the procedure for setting-up, membership, budget, legal seat, applicable law and jurisdiction, ownership of the results, governance, including decision making procedure and specific role and if applicable voting rights of Member States and the Commission, winding-up, reporting and liability.
Amendment 473 #
Proposal for a regulation
Article 8 – paragraph 2 – point e
Article 8 – paragraph 2 – point e
(e) developing and managing specific training actions on semiconductor technologies and on their applications to support the development of the talent pool in the Union.
Amendment 526 #
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 and increasing qualified workforce, taking into account in particular the strengthen of its production capacity to meet the rising demand the extent to which it offers front- end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;
Amendment 798 #
Proposal for a regulation
Article 31 – paragraph 4
Article 31 – paragraph 4
4. The rights of defence of the undertaking or representative organisations of undertakings concerned shall be fully respected in any proceedings. The undertaking or representative organisations of undertakings concerned shall be entitled to have access to the Commission's file under the terms of a negotiated disclosure, subject to the legitimate interest of undertakings in the protection of their business secrets. The right of access to the file shall not extend to confidential information and internal documents of the Commission or the authorities of the Member States. In particular, the right of access shall not extend to correspondence between the Commission and the authorities of the Member States. Nothing in this paragraph shall prevent the Commission from disclosing and using information necessary to prove an infringement, respecting however undertakings business secrets.