146 Amendments of Tom BERENDSEN related to 2022/0032(COD)
Amendment 121 #
Proposal for a regulation
Recital 1
Recital 1
(1) Semiconductors are at the core of any digital device and the Union's digital transition: 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, security and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural defici, the consequencies in the Union’s semiconductor value and supply chainof which are significant. The disruptions have exposed long-lasting vulnerabilities in this respect, notably a strong third-country dependency in manufacturing and design of chips. Therefore, action is needed to address existing and potential structural deficiencies in the semiconductor ecosystem and supply chain.
Amendment 132 #
Proposal for a regulation
Recital 2
Recital 2
(2) A framework for increasing the Union’s resilience in the field of semiconductor technologies should be established, stimulating investment, strengthening the capabilities, security, adaptability and resilience of the Union’s semiconductor supply chain, and increasing cooperation among the Member States and, the Commission, and international partners.
Amendment 138 #
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 changessemiconductor ecosystem can adapt at pace due to fast innovation cycles and the need for sustainability. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience, and ability to innovate and provide security of supply in the field of semiconductor technologies.
Amendment 143 #
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, while deepening coordination and cooperation in key areas among international partners, 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. 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 156 #
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 and industry, and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and industry stakeholders, and exchanging information on issues relating to this Regulation. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and the Commission may establish subgroups.
Amendment 168 #
Proposal for a regulation
Recital 9
Recital 9
(9) Member States are primarily responsible for sustaining a strong Union industrial, competitive, sustainable and innovative base. However, the nature and scale of the innovation challenge inimportance, scale, complexity, and cross-border nature of the semiconductor sector requires action to be taken collaboratively at Union level.
Amendment 174 #
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, and other future orientated technologies in the area of semiconductors. 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, Tthe 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 176 #
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 alternatinovel technologies, such as integrated photonics and quantum technologies, conducive to the development of the semiconductors sector, the Initiative should support actions including on design libraries for photonic and quantum chips, pilot lines for building, and scaling the production of photonic and quantum chips and testing and experimentation facilities for photonic and 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 181 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) The Commission should provide clear guidelines in the form of a specific Chips Fund Work Programme. It should include guidance on admissibility and eligibility, clear deadlines, the criteria for financial operational capacity and exclusion, information on mandatory documents to be provided, the evaluation procedures, and guidance on preparing the applications. Information on the structure, budget and political priorities of the Chips Fund should also be included. The Commission should also provide guidance on procedures to register and submit applications online via a specific and dedicated EU Chips Fund Portal.
Amendment 182 #
Proposal for a regulation
Recital 12 b (new)
Recital 12 b (new)
(12 b) The Chips Fund activities should support the development of a dynamic and resilient semiconductor ecosystem. It should provide opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investment across the entire value chain. The European Innovation Council should provide further dedicated support through grants and equity investments to high- risk, market-creating innovators. Support and guidance should be provided, in particular, to SMEs on how to access public and private investment, including venture capital, with an aim of speeding up not only access, but also the application and approval process.
Amendment 183 #
Proposal for a regulation
Recital 12 c (new)
Recital 12 c (new)
(12 c) The Commission should provide clear and readily available guidelines on the terms and conditions for the development of, and third party access to pilot lines, as well as the compatibility and accessibility of the Union virtual design platforms.
Amendment 184 #
Proposal for a regulation
Recital 12 d (new)
Recital 12 d (new)
(12 d) Given the importance of collaboration with third parties in the area of R&D&I, the European Semiconductor Board and the Commission should establish clear and readily available guidelines on access modes, software and hardware for their participation in projects within the scope of this Regulation. Within the structures of the European Semiconductor Board, the EU-US Trade and Technology Council and other Union agreements and strategies with third countries, guidance should be provided to overcome existing obstacles to international cooperation in the field of R&D&I.
Amendment 186 #
Proposal for a regulation
Recital 13
Recital 13
(13) In order to overcome the limitations of the current fragmented public and private investments efforts, facilitate integration, cross-fertilisation, and return on investment on the ongoing programmes and to pursue a common strategic Union vision on semiconductors as a means to realising the ambition of the Union and of its Member States to ensure a leading role in the digital economy, the Chips for Europe Initiative should facilitate better coordination and closer synergies between the existing funding programmes at Union and national levels, better coordination and collaboration with industry and key private sector stakeholders and additional joint investments with Member States. The implementation set up of the Initiative is built to pool resources from the Union, Member States and third countries associated with the existing Union Programmes, as well as the private sector. The success of the Initiative can therefore only be built on a collective effort by Member States, with the Union, to support both the significant capital costs and the wide availability of virtual design, testing and piloting resources and diffusion of knowledge, skills and competences. Where appropriate, in view of the specificities of the actions concerned, the objectives of the Initiative, specifically the ‘Chips Fund’ activities, should also be supported through a blending facility under the InvestEU Fund. The new concepts and ambitions of this Regulation should be supported with significant new financial provisions for the design, experimentation, manufacturing, packaging, and testing of advanced and evolving existing technologies and products within the Union's semiconductor ecosystem.
Amendment 187 #
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 as a consequence of the high capital intensity, high risk, and complex landscape of the semiconductor ecosystem in a proportionate 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 195 #
Proposal for a regulation
Recital 18
Recital 18
(18) In order to encourage the establishment of the necessary manufacturing and related design capabilities, and thereby ensure the security of supply in the Union, public support may be appropriate. In that respect, it is necessary to set out the criteria for facilitating the implementation of specific projects that contribute to achieving the objectives of this Regulation and distinguish between two types of facilities, namely: Integrated Production Facilities and Open EU Foundries. Public support should be in line with the Commission Communication on a competition policy fit for new challenges, taking note of the exceptional situation as regard semiconductors. Public support should be subject to strong competition safeguards, and ensure the benefits are shared widely across the Union economy.
Amendment 197 #
Proposal for a regulation
Recital 18
Recital 18
(18) In order to encourage the establishment of the necessary manufacturing and related design capabilities, including manufacturing equipment, and thereby ensure the security of supply in the Union, public support may be appropriate. In that respect, it is necessary to set out the criteria for facilitating the implementation of specific projects that contribute to achieving the objectives of this Regulation and distinguish between two types of facilities, namely: Integrated Production Facilities and Open EU Foundries.
Amendment 204 #
Proposal for a regulation
Recital 19
Recital 19
(19) Integrated Production Facilities and Open EU Foundries should provide semiconductor and photonics 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 be with regard to the technology node, substrate material, such as indium phosphide, silicon carbide and gallium nitride, and other product innovation that can offer better performance, process technology or energy and environmental performance. A facility of a comparable capability on an industrial scale should not yet substantively be present or committed to be built within the Union, excluding facilities for research and development or small-scale production sites.
Amendment 205 #
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 be with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product innovation that can offer better performance, process 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 within the Union, excluding facilities for research and development or small-scale production sitesse should be projects that are highly ambitious and innovative, aimed at developing technologies and processes that go beyond current technology or that will allow major improvements in performance, process, energy consumption, safety, and environmental impact. The project should contribute to a common objective, by enabling security of supply for the future of the Union's semiconductor industry, and where relevant, the security of the global semiconductor supply chain.
Amendment 210 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to qualify as Integrated Production Facilities or Open EU Foundries, the establishment and operation of the facility should have a clear positive impact on the semiconductor value chain in the Union, in particular with regard to providing a resilient supply of semiconductors to users on the internal market. The impact on several Member States, including cohesion objectives, should be considered as one of the indicators of a clear positive impact of an Integrated Production Facility and Open EU Foundry on the semiconductor value chain in the Union and, where relevant, the ability to contribute to the stability of global supply.
Amendment 211 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to qualify as Integrated Production Facilities or Open EU Foundries, the establishment and operation of the facility should have a clear positive impact on the semiconductor value chain in the Union, in particular with regard to providing a resilient supply of current and next generation semiconductors to users on the internal market. The impact on several Member States, including cohesion objectives, should be considered as one of the indicators of a clear positive impact of an Integrated Production Facility and Open EU Foundry on the semiconductor value chain in the Union.
Amendment 216 #
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, such as integrated photonics, 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.
Amendment 222 #
Proposal for a regulation
Recital 25
Recital 25
(25) In light of their importance for ensuring the security of supply and enabling a resilient semiconductor ecosystem, Integrated Production Facilities and Open EU Foundries should be considered to be in the Union's economic, security, and public interest. Ensuring the security of supply of semiconductors is important also for digitalisation that enables the green transition of many other sectors. To contribute towards security of supply of semiconductors in the Union, Member States may apply support schemes and provide for administrative support in national permit granting procedures. This is without prejudice to the competence of the Commission in the field of State aid under Article 107 and 108 of the Treaty, where relevant. Member States should support the set-up of Integrated Production Facilities and Open EU Foundries in accordance with Union law.
Amendment 226 #
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. The Commission, in cooperation with Member States and the European Semiconductor Board, should seek to agree a deadline for approving applications in order to ensure coherence and market agility across the Union in the application of the provisions within this Regulation. 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 may be considered as being of overriding public interest within the meaning of the aforementioned legal texts, provided that the remaining other conditions set out in 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 policy.
Amendment 228 #
Proposal for a regulation
Recital 27
Recital 27
(27) The internal market would greatly benefit from common standards for green, trusted and secure chips. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. Standards should be set and evaluated in line with comparable international standards, after consultation with international partners, industry stakeholders, and relevant national competent authorities. They should give due regard to the different metrics associated with the assessment of green and cybersecurity credentials. Any benchmarks should also reflect and be compatible with existing standards, legislation and targets of the Union in relevant fields.
Amendment 232 #
Proposal for a regulation
Recital 28
Recital 28
(28) In light of this, the Commission, in consultation with the European Semiconductor Board, should prepare the ground for a certification of green, trusted and secure chips and embedded systems that rely on or make extensive use of semiconductor technologies. In particular, they should discuss and identify the relevant sectors and products in need of such certification. The scheme should be self-certifying and in line with international standards. After 24 months the viability for a mandatory system of certification should be evaluated.
Amendment 236 #
Proposal for a regulation
Recital 29
Recital 29
(29) In light of the global structural deficiencchallenges and strategic vulnerabilities ofin 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.
Amendment 239 #
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 cooperation with industry stakeholders across the semiconductor ecosystem 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 247 #
Proposal for a regulation
Recital 32 a (new)
Recital 32 a (new)
Amendment 248 #
Proposal for a regulation
Recital 32 b (new)
Recital 32 b (new)
(32 b) The European Semiconductor Board should seek to examine other market forces and events central to the operation of the semiconductor industry, such as energy prices and energy shortages. Where appropriate and in coordination with the Commission, recommendations for remedying the situation should be provided.
Amendment 250 #
Proposal for a regulation
Recital 33
Recital 33
(33) In order to carry out these monitoring activities, the competent authorities of Member States may need certain information, which may not be publicly accessible, such as information on the role of an individual undertaking along the semiconductor value chain. In those limited circumstances in which it is necessary and proportionate for the purpose of carrying out the monitoring activities, the competent authorities of Member States should be able to request this information from the undertaking in question. Where relevant, such information should be treated with strict confidentiality and in accordance with an established and clear set of guidelines, in order to protect sensitive business, economic and security related information.
Amendment 267 #
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 and establish 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, de-localisations or acquisitions of key market actors. Member States should monitor these early warning indicators. Industry stakeholders should be encouraged to do the same. The European Semiconductor Board and the Commission should establish mechanisms to provide guidance to industry on monitoring and reporting, in particular for start-ups and SMEs.
Amendment 273 #
Proposal for a regulation
Recital 42
Recital 42
(42) The semiconductor crisis stage should be triggered in the presence of concrete, serious, and reliable evidence of such a crisis. A semiconductor crisis occurs in case of seriousf there is a serious and extraordinary disruptions to the supply of semiconductors, leading to a 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. of products or services, which poses a serious and immediate threat to the functioning, health, economy, and security and defence of the Member States and Union citizens;
Amendment 290 #
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 onon the basis of clear evidence following detailed consultation with representatives of the semiconductor industry and where necessary international partners, recommend the necessity of introducing an export control regime pursuant to Regulation (EU) 2015/479 of the European Parliament and of the Council60 . The European Semiconductor Board may also assess and advise on further appropriate and effective measures. The use of all these emergency measures should be proportionate and restricted to what is necessary to address the significant disturbances at stake insofar as this is in the best interest of the Union. The Commission should regularly inform the European Parliament and the Council of the measures taken and the underlying reasons. The Commission may, after consulting with the Board, issue further guidance on the implementation and use of the emergency measures. _________________ 60 Regulation (EU) 2015/479 of the European Parliament and of the Council of 11 March 2015 on common rules for exports (OJ L 83, 27.3.2015, p. 34).
Amendment 292 #
Proposal for a regulation
Recital 46
Recital 46
(46) A number of sectors are critical for the proper functioning of the internal market. Those critical sectors are the sectors listed in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities61 . For the purposes of this Regulation, defence and other activities that are relevant for public safety and security shouldmay be additionally considered as a critical sectors. 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. 16.12.2020Those critical sectors should be defined by the Commission in cooperation with the European Semiconductor Board.
Amendment 303 #
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. The decision on a priority rated order should be taken in accordance with all applicable Union legal obligations and in consultation with the European Semiconductor Board and following a crisis assessment report, 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 306 #
Proposal for a regulation
Recital 49
Recital 49
(49) The undertaking concerned should be obliged to accept and prioritise a priority rated order. In exceptional and duly justified cases, the undertaking could request the Commission to review the imposed obligation. This applies either where the facility is unable to fulfil the order even if prioritised, be it due to insufficient production capability or production capacity, or because this would place an unreasonable economic burden and entail particular hardship on the facility, be technically unfeasible and not possible to enact in a time sensitive manner, or have a negative impact on the wider semiconductor supply chain.
Amendment 309 #
Proposal for a regulation
Recital 50
Recital 50
(50) Under the exceptional circumstance that an undertaking operating along the semiconductor supply chain in the Union receives a priority rated order request from a third country, it should inform the Commission of this request, so as to inform an assessment of whether, if there is a significant impact on the security of supply to critical sectors, and the other requirements of necessity, proportionality and legality are satisfied in the circumstances of the case, the Commission should likewise enact a priority rated order obligation.
Amendment 314 #
Proposal for a regulation
Recital 53
Recital 53
(53) When the crisis stage is activated, two or more Member States couldmay 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 couldmay 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, and relevance and importance for the Union, 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 319 #
Proposal for a regulation
Recital 54
Recital 54
(54) During a semiconductor shortage crisis, it might become necessary and proportionate that the Union considers protective measures. The European Semiconductor Board may express its views to inform the Commission’s assessment of whether the market situation amounts to a significant shortage of essential products pursuant to Regulation (EU) 2015/479.
Amendment 320 #
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 s and provide a forum for Member States and industry stakehould include providingers from across the Union to coordinate and cooperate in the monitoring and development of the Union's semiconductor ecosystem. The European Semiconductor Board should provide 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, dialogue, and crisis assessment. In addition, the European Semiconductor Board should coordinate, cooperate and exchange information with other Union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated Union approach as regards crisis response and crisis preparedness measures for semiconductor crises.
Amendment 326 #
Proposal for a regulation
Recital 59
Recital 59
(59) In order to ensure trustful and constructive cooperation of competent authorities at Union and national level, all parties involved in the application of this Regulation should strictly respect the confidentiality of information and data obtained in carrying out their tasks. The Commission and the national competent authorities, their officials, servants and other persons working under the supervision of these authorities as well as officials and civil servants of other authorities of the Member States should not disclose information acquired or exchanged by them pursuant to this Regulation and of the kind covered by the obligation of professional secrecy. This should also apply to the European Semiconductor Board and the Semiconductor Committee established in this Regulation. Where appropriate, the Commission should be able to adopt implementing acts to specify the practical arrangements for the treatment of confidential information in the context of information gathering. Any breach of this confidentiality should result in a full investigation by the Commission, and if and where necessary, the Commission should revise the practical arrangements and guidance for the treatment of confidential information.
Amendment 341 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1 – point a
Article 2 – paragraph 1 – point 1 – point a
(a) a material, either elemental, such as Silicon, or compound, such as Silicon Carbide or Indium Phosphide, whose electrical conductivity or optical performance can be modified, or
Amendment 350 #
Proposal for a regulation
Article 2 – paragraph 1 – point 10
Article 2 – paragraph 1 – point 10
(10) ‘first-of-a-kind facility’ means an industrial facility capable of contributing to the semiconductor manufacturing ecosystem, including front-end or back- end, or both, 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, and other product innovation that can offer better performance, process innovation or energy and environmental performanceand ambitious and innovative as well as aimed at developing technologies and processes that go beyond current technology or that will allow major improvements in performance, process, energy consumption, safety, and environmental impact, and capable of contributing to a common objective, by enabling security of supply for the future of the Union's semiconductor industry, and where relevant, the security of the global semiconductor supply chain.;
Amendment 354 #
Proposal for a regulation
Article 2 – paragraph 1 – point 10
Article 2 – paragraph 1 – point 10
(10) ‘first-of-a-kind facility’ means an industrial facility capable of semiconductor manufacturing, including front-end or back-end, or both, or capable of manufacturing materials or equipment used for 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 indium phosphide, silicon carbide and gallium nitride, silicon nitride, and other product innovation that can offer better performance, process innovation or energy and environmental performance;
Amendment 360 #
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 electrical and optical performance, such as for instance computing power or energy efficiency as well as other significant energy and environmental gains;
Amendment 381 #
Proposal for a regulation
Article 2 – paragraph 1 – point 17
Article 2 – paragraph 1 – point 17
(17) ‘crisis-relevant product’ means semiconductors, intermediate products and raw materials required to produce semiconductors or intermediate products, that are affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereofproducts and services within the semiconductor supply chain, that are in line with Directive of the European Parliament and of the Council on the resilience of critical entities;
Amendment 387 #
Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)
Article 2 – paragraph 1 – point 17 a (new)
(17 a) ‘crisis’ means a serious and extraordinary disruption to the supply of semiconductors, leading to a significant shortage of products or services, which poses a serious and immediate threat to the functioning, health, economy, and security and defence of the Member States and Union citizens;
Amendment 397 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. The general objective of the Initiative is to support large-scale technological capacity building and innovation throughout the Union 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. This initiative also aims to strengthen regional industrial clusters of excellence, as well as their links between them, which are essential for the European semiconductor ecosystem.
Amendment 398 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. The general objective of the Initiative is to support large-scale technological capacity building and innovation throughout the Union and to enable development and deployment of cutting- edge and next generation semiconductor and quantum technologies thatand the development and innovation of established technologies. Such measures 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 and a thriving economy.
Amendment 399 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. The general objective of the Initiative is to support large-scale technological capacity building and innovation throughout the Union to enable development and deployment of cutting- edge and to leverage next generation semiconductor, photonic and quantum technologies that will reinforce the Union advanced design, systems integration and chips production capabilities, including manufacturing equipment, as well as contribute to the achievement of the twin digital and green transition.
Amendment 417 #
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 and evolving existing design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable energy and electro mobility, lower energy consumption, security, higher levels of computing performance or integrating breakthrough technologies s. Such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies;
Amendment 421 #
Proposal for a regulation
Article 4 – paragraph 2 – point c
Article 4 – paragraph 2 – point c
(c) building advanced technology and engineering capacities for accelerating the innovative development of quantum chips.and manufacturing of quantum and photonic chips; this includes, but is not limited to, developing innovative design libraries, reducing the entry-barrier and accelerating the innovation cycles for the development and production, and providing capabilities and infrastructures;
Amendment 424 #
Proposal for a regulation
Article 4 – paragraph 2 – point c
Article 4 – paragraph 2 – point c
(c) building advanced technology and engineering capacities for accelerating the innovativon, such as the development of quantum chips.
Amendment 425 #
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 for strengthening the semiconductor sector, including via reskilling and upskilling of workers, and increasing programmes for attracting third-country talent through initiatives such as the 'EU Talent Pool' and the European Skills Agenda. The Union shall also seek to streamline market tests in the semiconductor ecosystem to better facilitate attracting and developing skills of the future to realise the objectives of this Regulation; with an emphasis on support for academic, reskilling programmes and qualification, up to PhD level in the area of STEM (Science, Technology, Engineering, and Mathematics), and computer science.
Amendment 433 #
Proposal for a regulation
Article 4 – paragraph 2 – point e – point 1
Article 4 – paragraph 2 – point e – point 1
(1) improving the leverage effect of the Union budget spending and achieving a higher multiplier effect in terms of attracting private-sector financing; in this regard clear guidance and access points shall be provided in order to assist start- ups and SMEs in accessing public and private funds.
Amendment 435 #
Proposal for a regulation
Article 4 – paragraph 2 – point e – point 3
Article 4 – paragraph 2 – point e – point 3
(3) accelerating and improving accessibility to investment in the field of semiconductor manufacturing technologies and chip design and to leveraging funding from both the public and the private sectors, while increasing the security of supply for the whole semiconductor value chain.
Amendment 437 #
Proposal for a regulation
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) pilot lines for preparing innovative production, and testing and experimentation facilities; , as well as for materials and manufacturing equipment development and testing;
Amendment 439 #
Proposal for a regulation
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) advanced technology and engineering capacities for leading edge semiconductors; for example quantum chips;
Amendment 454 #
Proposal for a regulation
Article 7 – paragraph 4 – point d
Article 7 – paragraph 4 – point d
(d) the appropriate financial and technical viability corresponding to the level of Union funds it will be called upon to manage and demonstrated, where appropriate, through guarantees issued preferably by a public authority;
Amendment 455 #
Proposal for a regulation
Article 7 – paragraph 4 – point f
Article 7 – paragraph 4 – point f
(f) the appropriate ability of the ECIC to ensure coverage of the needs of industry.
Amendment 463 #
Proposal for a regulation
Article 7 – paragraph 8
Article 7 – paragraph 8
8. The ECIC shall have substantial overall autonomhority to lay down its membership, governance, funding, budget and the modalities by which the respective financial contributions from the members are called upon, voting rights and working methods. However, the organisation, composition and working methods of the ECIC, including any amendments to the Statutes, shall be in accordance with and contribute to the aims and objectives of this Regulation and the Chips for Europe Initiative and shall be notified to the Commission.
Amendment 465 #
Proposal for a regulation
Article 7 – paragraph 9
Article 7 – paragraph 9
9. The ECIC shall produce an annual activity report, containing a technical description of its activities and financial statement. The annual activity report shall be transmitted to the Commission and made publicly available. The Commission may provide recommendations regarding the matters covered in the annual activity report. The Commission shall make this report available to the European Parliament.
Amendment 466 #
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 468 #
Proposal for a regulation
Article 8 – paragraph 2 – point b
Article 8 – paragraph 2 – point b
(b) raising awareness and providing the necessary knowhow, expertise and skills to the stakeholders for helping them accelerate the development and integration of new semiconductor technologies, manufacturing equipment, design options and system concepts by using effectively the infrastructure;
Amendment 469 #
Proposal for a regulation
Article 8 – paragraph 2 – point d
Article 8 – paragraph 2 – point d
(d) facilitating the transfer of experience, expertise and knowhow between Member States and regions, regions and international partners, encouraging exchanges of skills, knowledge and good practices and encouraging joint programmes;. Clear guidelines shall be established by the Commission in consultation with the European Semiconductor Board and industry representatives regarding the protection of valuable intellectual property, and the prevention of unauthorised access to confidential and sensitive business, economic and security related information, and trade secrets.
Amendment 474 #
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 to support the development of the talent pool in the Union., as referred to in Article 4(d)2;
Amendment 476 #
Proposal for a regulation
Article 8 – paragraph 3
Article 8 – paragraph 3
3. Member States shall designate candidate competence centres in accordance with its national procedures, administrative and institutional structures through an open and competitive process. The Commission shall, provide a clear set of guidelines as to the procedures for selecting competence centres. The Commission shall by means of implementing acts, set the procedure for establishing competence centres, including selection criteria, and further tasks and functions of the centres with respect to the implementation of the actions under the Initiative, the procedure for establishing the network as well to adopt decisions on the selection of entities forming the network. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 33(2).
Amendment 480 #
Proposal for a regulation
Article 8 – paragraph 4
Article 8 – paragraph 4
4. The network shall have substantial overall autonomhority to lay down its organisation, composition and working methods. However, the organisation, composition and working methods of the network shall be in accordance with and contribute to the aims and objectives of this Regulation and the Initiative.
Amendment 483 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Integrated Production Facilities are first-of-a-kind semiconductor design and manufacturing facilities, including front- end or back-end, or both, or capable of manufacturing materials or equipment used in semiconductor manufacturing, in the Union that contribute to the security of supply for the internal market, either directly or by providing leverage.
Amendment 486 #
1. Integrated Production Facilities are first-of-a-kind semiconductor design and manufacturing facilities, including front- end or back-end, or both, in the Union that contribute to the security of supply for the internal market, and where relevant, the security of the global semiconductor supply chain.
Amendment 494 #
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 efficacy of the Union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualifi, efficiency, adaptability, and stability of supply and increasing the pool of a qualified and skilled workforce;
Amendment 499 #
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; the European Semiconductor Board and the Commission shall enter into intergovernmental dialogue and consultation through the structures of the European Semiconductor Board in order to facilitate a resolution of any conflicts of interest or incompatibility of existing contractual obligations.
Amendment 504 #
Proposal for a regulation
Article 10 – paragraph 2 – point d
Article 10 – paragraph 2 – point d
(d) it commits to invest in the next generation of chips, in projects that are highly ambitious, aimed at developing technologies and processes that go beyond current technology and will allow for major improvements in performance, safety, security, and environmental impact in line with the needs and aims of the Union's digital and green transformation; giving due consideration to ongoing and planned R&D&I activities and projects.
Amendment 513 #
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. For the purpose of investfulfilling in the next generation of chips according toobjectives in paragraph 2, point (d), the Integrated Production Facility 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.
Amendment 517 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Open EU Foundries are first-of-a- kind semiconductor front-end or back-end, or both, manufacturing facilities in the Union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market, and where relevant, the security of the global semiconductor supply chain.
Amendment 524 #
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 onand efficacy of the Union’s semiconductor value chain with regard to ensuring the security of supply and increasing qualified workforce, taking into account in particular the extent to which , efficiency, adaptability, and stability offers front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand supply and increasing the pool of a qualified and skilled workforce;
Amendment 530 #
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; the European Semiconductor Board and the Commission shall enter into intergovernmental dialogue and consultation through the structures of the European Semiconductor Board in order to facilitate a resolution to any conflicts of interest or compatibility with existing contractual obligations.
Amendment 535 #
Proposal for a regulation
Article 11 – paragraph 2 – point d
Article 11 – paragraph 2 – point d
(d) it commits to invest in the next generation of chips and in projects that are highly ambitious, aim to develop technologies and processes that go beyond current technology and will allow major improvements in performance, safety, security and environmental impact in line with the ongoing and planned R&D&I activities and projects.
Amendment 541 #
Proposal for a regulation
Article 11 – paragraph 3
Article 11 – paragraph 3
3. Where an Open EU Foundry offers production capacity to undertakings not related to the operator of the facility, it shall establish and maintain adequate and effective functional separation of the design and manufacturing processes in order to ensure the protection of information gained at each stage.
Amendment 549 #
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 and technical viability of the project, including information on any planned public support;. All data and documentation submitted as part of this application shall be carefully protected in accordance with the rules reflected in this regulation, and which reflects the sensitive business, economic, and security related information contained.
Amendment 553 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d
Article 12 – paragraph 2 – subparagraph 1 – point d
(d) provision of an appropriate supporting document proving the readiness of the Member State or Member States where the applicant intends to establish its facility to facilitate the set-up of such a facility. The Commission shall provide clear guidelines on the information required and its relevant format, in order to provide uniformity of applications and assessment.
Amendment 560 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 2
Article 12 – paragraph 2 – subparagraph 2
The Commission shall process the application and adopt its decision within a timely mannerset time period and notify the applicant thereof.
Amendment 561 #
Proposal for a regulation
Article 12 – paragraph 3
Article 12 – paragraph 3
3. The Commission shall regularly monitor the activities of the Integrated Production Facilities and the Open EU Foundries. 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 consultingThe Commission shall produce a change in circumstance assessment in consultation with the European Semiconductor Board and; after hearing from the facility. Depending upon the outcome of the assessment and the hearing, the Commission may repeal the decision granting a facility the status of Integrated Production Facility or Open EU Foundry. The facility shall be notified at the earliest possible stage that such a decision is being considered.
Amendment 563 #
Proposal for a regulation
Article 12 – paragraph 4
Article 12 – paragraph 4
4. The Commission may, after consulting the European Semiconductor Board, repeal a decision recognising the status of an Integrated Production Facility or an Open EU Foundry if the recognition was based on an application containing incorrect information. that was intentional or showed bad faith, which fundamentally affects the premise of fulfilling the eligibility to access its status as an Integrated Production Facility or an Open EU Foundry, and in which the facility has failed to remedy the situation, or is unable to remedy the situation.
Amendment 564 #
Proposal for a regulation
Article 12 – paragraph 5 a (new)
Article 12 – paragraph 5 a (new)
5 a. Stresses that it is essential for undertakings to have business certainty and continuity in order to operate. Therefore, undertakings shall have the right to appeal the decision to withdraw status within an agreed deadline set by the European Semiconductor Board and the Commission. In the event of a decision being appealed by an undertaking, the original assessment and any additional findings shall be examined. If the decision to withdrawal status is disputed within the European Semiconductor Board, the Board shall hold a vote in order to confirm the final decision and continue with the repeal of the existing Integrated Production Facility or Open EU Foundry status. In the event the decision is confirmed, a managed and phased end to such relationship shall be agreed and enacted.
Amendment 568 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
1. Integrated Production Facilities and Open EU Foundries shall be considered to contribute to the security, efficiency, adaptability and stability of supply of semiconductors in the Union and therefore to be in the public interest.
Amendment 572 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. In order to reach security, efficiency, adaptability and stability of supply in the Union, Member States may, without prejudice to Articles 107 and 108 of the Treaty, apply support schemes and provide for administrative support to Integrated Production Facilities and Open EU Foundries in accordance with Article 14.
Amendment 575 #
Proposal for a regulation
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2 a. The Commission shall provide clear and transparent guidance on how the funding gap is assessed, including the information required to ensure uniform assessment for applications.
Amendment 580 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shall ensure that administrative applications related to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries are processed in an efficient, transparent, and timely manner. To that end, all national authorities concerned shall ensure that the most rapid treatment legally possible is given to these applications.
Amendment 583 #
Proposal for a regulation
Article 14 – paragraph 2 a (new)
Article 14 – paragraph 2 a (new)
2 a. Through the European Semiconductor Board and in cooperation with the Commission, Member States shall seek to establish recommendations to establish minimum restrictions by public authorities at a national level, in order to encourage faster permitting processes, create a uniform process and standard across Member States, and to reduce fragmentation across the Union.
Amendment 587 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The security of supply of semiconductors may be considered an imperative reason of overriding public interest withinis of key public interest, therefore, full consideration shall be given with regard to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries and the necessity to override the meaning of Article 6(4) and Article 16(1)(c) of Directive 92/43/EEC and of overriding public interest within the meaning of Article 4(7) of Directive 2000/60. Therefore, the planning, construction and operation of Integrated Production Facilities and Open EU Foundries may be considered of overriding public interest, provided that the remaining other conditions set out in these provisions are fulfilled. Nonetheless, this Regulation must fulfil the objectives of a sustainable digital and green transition.
Amendment 589 #
Proposal for a regulation
Article 14 – paragraph 4 a (new)
Article 14 – paragraph 4 a (new)
Amendment 593 #
Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part
Article 15 – paragraph 1 – subparagraph 1 – introductory part
To ensure a secure, efficient, agile and stable Union-wide semiconductor ecosystem, supply chain monitoring must be a key objective of this Regulation and the role of the European Semiconductor Board. Member States shall carry out regular monitoring of the semiconductor value chain. In particular, they shall:
Amendment 597 #
Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point a
Article 15 – paragraph 1 – subparagraph 1 – point a
(a) monitor early warning indicators identified pursuant to Article 16; such indicators shall be established in partnership with the European Semiconductor Board and industry stakeholders from across the entire semiconductor ecosystem, and they shall be updated in the event of significant market and geopolitical developments;
Amendment 604 #
Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2
Article 15 – paragraph 1 – subparagraph 2
Member States and industry representatives shall provide relevant findings to the European Semiconductor Board in the form of regular updates. Their regularity shall be reviewed during crisis situations.
Amendment 609 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. Member States through the structures of the European Semiconductor Board shall invite the main users of semiconductors and other relevant stakeholders, including third country partners to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. To facilitate the exchange of information, Member States shall provide for a mechanism and administrative set- up for these updates.
Amendment 611 #
Proposal for a regulation
Article 15 – paragraph 2 a (new)
Article 15 – paragraph 2 a (new)
Amendment 612 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. National competent authorities designated pursuant to Article 26(1) may request through the structures of the European Semiconductor Board, information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. National competent authorities in such case will pay particular attention to SMEs to minimise administrative burden resulting from the request and will privilege digital solutions for obtaining such information. Any information obtained pursuant to this paragraph shall be treated in compliance with the confidentiality obligations set out in Article 27. This information shall be provided through the single point of contact established by the Commission.
Amendment 617 #
Proposal for a regulation
Article 15 – paragraph 3 a (new)
Article 15 – paragraph 3 a (new)
3 a. The Commission shall produce an annual report in cooperation with the European Semiconductor Board in order to assess the regularity of information requests, the type and volume of information being requested, in particular from SMEs. It shall identify if necessary, the need to further streamline processes and provide further support in navigating information requests in the context of this Regulation.
Amendment 618 #
Proposal for a regulation
Article 15 – paragraph 4
Article 15 – paragraph 4
4. Where a Member State becomes aware of a potential semiconductor crisis, a significant fluctuation in demand or has concrete and reliable information of any other risk factor or event materialising, it shall immediately alert the Commission (‘early warning’). A semiconductor crisis, a significant fluctuation in demand and other risk factors, shall be pre-defined alongside a clear set of benchmarks, in order to avoid unnecessary market intervention and to ensure the provisions of this Regulation are applied in a necessary and proportionate manner. The Commission shall undertake such task in cooperation with the European Semiconductor Board and representatives of the semiconductor industry.
Amendment 623 #
Proposal for a regulation
Article 15 – paragraph 7
Article 15 – paragraph 7
7. National competent authorities designated pursuant to Article 26(1) shall map undertakings operating along the semiconductor supply chain in their national territory, including non- confidential information on the services or goods, and contact information. They shall notify this list and any subsequent update to the Commission. The Commission mayshall issue guidance, after consulting the European Semiconductor Board, to further specify the information to be gathered and define the technical specifications and formats.
Amendment 633 #
Proposal for a regulation
Article 16 – paragraph 3
Article 16 – paragraph 3
3. When monitoring the semiconductor value chain pursuant to Article 15, Member States, and where necessary and proportionate, industry representatives that are members of the Semiconductor Board, shall monitor the early warning indicators identified by the Commission.
Amendment 638 #
Proposal for a regulation
Article 17 – paragraph 1 – introductory part
Article 17 – paragraph 1 – introductory part
1. Member States in consultation where necessary and proportionate with industry representatives shall identify key market actors along the semiconductor supply chains in their national territory in accordance with a pre-defined criteria agreed by the European Semiconductor Board and the Commission, taking into account the following elements:
Amendment 647 #
Proposal for a regulation
Article 18 – paragraph 1 – introductory part
Article 18 – paragraph 1 – introductory part
1. A semiconductor crisis shall be considered to occur when there areis a serious and extraordinary disruptions in to the supply of semiconductors, leading to a significant shortages, which: of products or services, which poses a serious and immediate threat to the functioning, health, economy, and security and defence of the Member States and the Union citizens;
Amendment 650 #
Proposal for a regulation
Article 18 – paragraph 1 – point a
Article 18 – paragraph 1 – point a
Amendment 652 #
Proposal for a regulation
Article 18 – paragraph 1 – point b
Article 18 – paragraph 1 – point b
Amendment 658 #
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
3. Before the expiry of the duration for which the crisis stage was activated, the Commission shall, after consulting the European Semiconductor Board and industry stakeholders, assess whether the activation of the crisis stage should be prolonged. Where the assessment concludes that a prolongation is appropriate, the Commission may prolong the activation by means of implementing acts. The duration of the prolongation shall be specified in the implementing acts adopted in accordance with Article 33(2). The Commission may repeatedly decide to prolong the activation of the crisis stage where this is appropriate.
Amendment 660 #
Proposal for a regulation
Article 18 – paragraph 4
Article 18 – paragraph 4
4. During the crisis stage, the Commission shall, upon request from a Member State or on its own initiative, convene extraordinary meetings of the European Semiconductor Board as necessary. Member States and industry representatives shall work closely with the Commission and coordinate any national measures taken with regard to the semiconductor supply chain within the European Semiconductor Board.
Amendment 661 #
Proposal for a regulation
Article 18 – paragraph 4 a (new)
Article 18 – paragraph 4 a (new)
4 a. The triggering of the crisis stage shall be accompanied by a crisis situation assessment report, drawn up by the Commission and the European Semiconductor Board, and made available to the European Parliament.
Amendment 662 #
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 in consultation with the European Semiconductor Board shall review the Union risk assessment pursuant to Article 16(2) no later than six months after the expiry of the duration of the crisis stage, the conclusions of that review shall be made available to the European Parliament.
Amendment 672 #
Proposal for a regulation
Article 19 – paragraph 3 – introductory part
Article 19 – paragraph 3 – introductory part
3. Where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the Union, the European Semiconductor Board mayshall assess and advise on further appropriate and effective emergency measures, for example:
Amendment 673 #
Proposal for a regulation
Article 19 – paragraph 3 – point a
Article 19 – paragraph 3 – point a
(a) assess the impact and consequences to the Union's semiconductor industry 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; , and a crisis, as defined in this Regulation; and provide an opinion to the Commission after detailed consultation with industry stakeholders and international partners. The activation of a crisis stage and the protective measures taken, shall not place the Union's semiconductor industry at risk of increased vulnerability as a consequence;
Amendment 682 #
6. The Commission mayshall, after consulting the European Semiconductor Board and industry stakeholders, issue guidance on the implementation and the use of the emergency measures.
Amendment 686 #
Proposal for a regulation
Article 20 – paragraph 1
Article 20 – paragraph 1
1. The Commission shall, after consulting the European Semiconductor Board, request representative organisations of undertakings or, if necessary, individual undertakings operating along the semiconductor supply chain to inform the Commission, where necessary and proportionate and in line with the confidentiality rules provided in this Regulation, about their production capabilities, production capacities, current primary disruptions and provide other existing data necessary to assess the nature of the semiconductor crisis or to identify and assess potential mitigation or emergency measures at national or Union level.
Amendment 689 #
Proposal for a regulation
Article 20 – paragraph 1 a (new)
Article 20 – paragraph 1 a (new)
1 a. In the event of a crisis situation, and the information already provided by organisations and undertakings proves insufficient to fully assess the measures needed to be taken to mitigate the risks, then on a case-by-case basis and after consultation with the European Semiconductor Board, further information may be requested. Such information shall be treated in accordance with the basic principles and minimum standards of security for protecting information and data of this nature.
Amendment 690 #
Proposal for a regulation
Article 20 – paragraph 1 b (new)
Article 20 – paragraph 1 b (new)
1 b. In the event of a data breach or unauthorised disclosure of information and data collected, this shall result in a full investigation by the Commission or competent authority, and if necessary a revision of the guidelines applied to the treatment, storage and handling of the data under the requirements of this Regulation. The Commission or Member States shall ensure the appropriate action is taken. The entity or undertaking has the right to decline sharing further information until an investigation has been carried out, and a remedy has been sought.
Amendment 691 #
Proposal for a regulation
Article 20 – paragraph 1 c (new)
Article 20 – paragraph 1 c (new)
1 c. There shall be a single point of contact established by the Commission for such information to be provided to reduce administrative burden in reporting measures, and to reduce the risk of data breaches and the unauthorised disclosure of business, security, and economically sensitive information.
Amendment 694 #
Proposal for a regulation
Article 20 – paragraph 2
Article 20 – paragraph 2
2. The request for information shall state its legal basis, be proportionate and necessary in terms of the granularity and volume of the data and frequency of access to the data requested, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, and set out the time limit within which the information is to be provided. It shall also indicate the penalties provided for in Article 28.
Amendment 695 #
Proposal for a regulation
Article 20 – paragraph 4
Article 20 – paragraph 4
4. Should an undertaking supply incorrect, incomplete or misleading information in response to a request made pursuant to this Article as a consequence of bad faith or recklessness, or not supply the information within the prescribed time limit, it shall be subject to fines set in accordance with Article 28.
Amendment 697 #
Proposal for a regulation
Article 20 – paragraph 5
Article 20 – paragraph 5
5. Should an undertaking established in the Union be subject to a request for information related to its semiconductor activities from a third country, it shall inform the Commission in such a manner as to enable the Commission to request similar information if necessary and relevant to its tasks. The Commission shall inform the European Semiconductor Board of the existence of such request from a third country.
Amendment 702 #
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, and in line with the Directive of the European Parliament and of the Council on the resilience of critical entities, the Commission may oblige Integrated Production Facilities and Open EU Foundries to accept and prioritise an order of crisis-relevant products (‘priority rated order’). The obligation shall take precedence over anyother performance obligations under private or public law.
Amendment 708 #
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, and if the Union is also in a crisis situation, the Commission may oblige that undertaking, where necessary and proportionate, to accept and prioritise orders of crisis relevant products in line with paragraph 4, 5 and 6.
Amendment 714 #
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. The decision shall in particular have regard for the legitimate aims of the undertaking concerned and the cost and effort, effort, technical practicality, and long-term business consequences, required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, and, where applicable, specify the product and quantity, and state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at fair and reasonable price, reflective of the market price.
Amendment 715 #
Proposal for a regulation
Article 21 – paragraph 4 a (new)
Article 21 – paragraph 4 a (new)
4 a. For those facilities carrying out a priority rated order, the Commission may work within the structures of the European Semiconductor Board to enable Member States to introduce new tax incentives or substantially improve existing ones to stimulate investment in research in the area of semiconductors in accordance with the Commission Communication - Towards a more effective use of tax incentives in favour of R&D.
Amendment 720 #
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 insufficient production capability or production capacity, or would entail unfeasible technical adjustments or an unrealistic period of time for technical adaptations, even under preferential treatment of the order;
Amendment 723 #
Proposal for a regulation
Article 21 – paragraph 5 – point b
Article 21 – paragraph 5 – point b
(b) if acceptance of the order would place an unreasonable economic burden and, risk to business continuity, or entail particular hardship for the undertaking.
Amendment 727 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
1. The Commission may, upoin the request of two or more Member Stevent of a crisis situation and where necessary and proportionates, establish a mandate to act as a central purchasing body on behalf of the participating Member States (‘participating Member States’)Member States for their public procurement of crisis-relevant products for certain critical sectors (‘common purchasing’).
Amendment 729 #
Proposal for a regulation
Article 22 – paragraph 2
Article 22 – paragraph 2
2. The Commission shall, in consultation with the European Semiconductor Board, assess the utility, necessity and proportionality of the request, and value to the Union, of acting as a common purchasing body. 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 731 #
Proposal for a regulation
Article 22 – paragraph 3
Article 22 – paragraph 3
3. The Commission shall draw up a proposal for a framework agreement to be signed by the participating Member States. This framework agreement shall organise in detail the common purchasing referred to in paragraph 1.
Amendment 735 #
Proposal for a regulation
Article 22 – paragraph 6
Article 22 – paragraph 6
6. The Commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of the participating Member States. The Commission shall invite the participating Member States to appoint representatives to take part in the preparation of the procurement procedures. The deployment and use of the purchased products shall remain the responsibility of the participating Member States.
Amendment 738 #
Proposal for a regulation
Article 22 – paragraph 6 a (new)
Article 22 – paragraph 6 a (new)
6 a. The Commission shall ensure that separation of activities and independence is maintained throughout the process, in relation to its other tasks conducted under this Regulation and in relation to the European Semiconductor Board.
Amendment 755 #
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, representatives of industry stakeholders, for example the Industrial Alliance on Processors and Semiconductor Technologies, and shall be chaired by a representative of the Commission.
Amendment 759 #
Proposal for a regulation
Article 24 – paragraph 3
Article 24 – paragraph 3
3. On a proposal by and in agreement with the Commission, the European Semiconductor Board shall adopt its rules of procedure by a simple majority of its members. This includes the procedures for voting to remove or maintain the status as an Integrated Production Facility or an Open EU Foundry. Only representatives of Member States and the Commission shall have voting rights.
Amendment 765 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
1. The European Semiconductor Board shall hold ordinary meetings at least ontwice a year. It may hold extraordinary meetings at the request of the Commission or a Member State and as referred to in Article 15 and Article 18.
Amendment 766 #
Proposal for a regulation
Article 25 – paragraph 3
Article 25 – paragraph 3
3. The Chair shall convene the meetings and prepare the agenda in consultation with the members of the European Semiconductor Board, in accordance with the tasks of the European Semiconductor Board pursuant to this Regulation and with its rules of procedure. The Commission shall provide administrative and analytical support for the activities of the European Semiconductor Board pursuant to Article 23.
Amendment 767 #
Proposal for a regulation
Article 25 – paragraph 4
Article 25 – paragraph 4
4. The Commission may appoint observers to take part in the meetings, as appropriate. The Commission may invite experts with specific expertise, including from relevant stakeholder organisations, with respect to a subject matter on the agenda to take part in the meetings of the European Semiconductor Board on an ad hoc basis. The Commission may facilitate exchanges between the European Semiconductor Board and other Union bodies, offices, agencies and advisory groups. The Commission shall invite a representative from the European Parliament as an observer to the European Semiconductor Board. The Commission shall ensure the participation of relevant other Union institutions and bodies as observers to the European Semiconductor Board with respect to meetings concerning Chapter IV on monitoring and crisis response. Observers and experts shall not have voting rights and shall not participate in the formulation of opinions, recommendations or advice of the European Semiconductor Board and its sub-groups.
Amendment 771 #
Proposal for a regulation
Article 25 – paragraph 5
Article 25 – paragraph 5
5. The European Semiconductor Board shall take the necessary measures to ensure the safe handling and processing of confidential information. Those measures shall comply with the guidance issued by the Commission.
Amendment 773 #
Proposal for a regulation
Article 26 – paragraph 2
Article 26 – paragraph 2
2. Where Member States designates more than one national competent authority, they shall clearly set out the respective responsibilities of the authorities concerned and ensure that they cooperate effectively and efficiently to fulfil their tasks under this Regulation, including with regard to the designation and activities of the national single point of contact referred to in paragraph 3.
Amendment 778 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. The Commission and the national competent authorities, their officials, servants and other persons working under the supervision of these authorities as well as officials and civil servants of other authorities of the Member States shall not disclose information acquired or exchanged by them pursuant to this Regulation and of the kind covered by the obligation of professional secrecy. They shall strictly respect the confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect in particular intellectual property rights and sensitive business, economic and security related information or trade secrets. This obligation shall apply to all representatives of Member States, observers, experts and other participants attending meetings of the European Semiconductor Board pursuant to Article 23 and the members of the Committee pursuant to Article 33(1).
Amendment 780 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. The Commission and Member States may exchange, where necessary,on a case-by-case basis, where necessary and proportionate, and in full compliance with the rules set out within this Regulation and Union law with regard to sensitive business, economic and security related information, exchange confidential information with competent authorities of third countries with which they have agreed on bilateral or multilateral confidentiality arrangements to provide an adequate level of confidentiality.
Amendment 782 #
Proposal for a regulation
Article 27 – paragraph 3 a (new)
Article 27 – paragraph 3 a (new)
3 a. Where necessary and proportionate the information and data provided by organisations, entities and undertakings shall be handled in accordance with the rules for protecting Union's classified information under Commission Decision (EU, Euratom) 2015/4441a and /or national rules.
Amendment 783 #
Proposal for a regulation
Article 27 – paragraph 3 b (new)
Article 27 – paragraph 3 b (new)
3 b. The European Semiconductor Board and the Commission shall ensure that it provides clear and mandated rules safeguarding the circumventing technology protection measures, and the use of confidential data relating to sensitive business, economic and security related data. The requirements under Directive (EU) 2016/943 of the European Parliament and of the Council shall be extended to the provisions of this Regulation.
Amendment 784 #
Proposal for a regulation
Article 27 a (new)
Article 27 a (new)
Article 27 a Data and information exchange with third countries 1. The Commission and Member States may exchange, where necessary and proportionate, information with competent authorities of third countries with which they have agreed on bilateral or multilateral arrangements to provide an adequate level of confidentiality. 2. For the purpose of this Regulation, any data transferred to a third country must be tailored as narrowly as possible in order to minimise the amount of data transferred to fulfil the necessary activity. 3. Such information shall be transferred from a single contact point in the Commission, and transferred to a single designated contact point in the third country. The designated provider of the data shall keep a detailed log of all data transmitted to a third country for the purpose of the activities pursued. 4. The third country shall provide guarantees that the data provided is used strictly and exclusively for the purposes of the tasks being fulfilled under this Regulation, and that no further onwards transfers have been made. 5. To prevent unauthorised access to, or disclosure or loss of the data or any unauthorised form of processing, the provided data shall be held in a secure physical environment, stored separately from any other data, and maintained with high level systems and physical intrusion controls. That data shall not be interconnected with any other database. The data shall be limited to those persons involved in the undertaking of these tasks, the names of which shall be provided to the Commission. No copies of provided data shall be made, other than for disaster recovery and backup purposes. 6. Once the data is no longer required, it shall be deleted. This shall be reviewed by the relevant authority in the third country on an annual basis. 7. If it transpires that data has not been treated in accordance with the relevant rules or transferred onwards, then no further data shall be transferred under this Regulation.
Amendment 786 #
Proposal for a regulation
Article 27 a (new)
Article 27 a (new)
Article 27 a Technology transfer measures 1. Beneficiaries of the Chips for Europe initiative shall take measures, making use of the range of instruments available at Union and national level, to prevent unwanted technology and knowledge transfers. 2. In case of possible transfer of technologies or knowledge developed within the framework of the Chips for Europe initiative to a third country, beneficiaries shall notify the Member State. 3. Upon request of the Member State, the beneficiary shall provide a detailed outline of the measures taken to prevent the unwanted technology transfer to a third country as well as the measures taken to protect undisclosed know-how and business information. 4. The Member State is allowed to prevent or revoke the actions leading to unwanted technology transfer to a third country, based on an analysis on the impact of the transfer on economic and national security and only after careful consultation with the beneficiary, European Commission and other impacted Member States.
Amendment 799 #
1. By three years after the date of application of this Regulation and every four years thereafter,Every 18 months the Commission shall submit a report on the evaluation and review of this Regulation to the European Parliament and to the Council. The findings of the report shall be presented to the European Parliament. The reports shall be made public.
Amendment 800 #
Proposal for a regulation
Article 35 – paragraph 1 a (new)
Article 35 – paragraph 1 a (new)
1 a. Sensitive and restricted information shall be redacted or processed by the European Parliament in accordance with existing rules and protocols.