72 Amendments of Othmar KARAS 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 158 #
Proposal for a regulation
Recital 7
Recital 7
(7) Given the globalised nature of the semiconductor supply chain, international cooperation with third countries is an important element toin achieve aing resilience of the Union’s semiconductor ecosystem. The actions taken under this Regulation should also enable the Union to play a stronger role, as a centre of excellence, in a better functioning global, interdependent semiconductors ecosystem. The Commission, assisted by the European Semiconductor Board, should cooperate and build partnerships with third countries with a view to seeking solutions to address, to the extent possible, disruptions of the semiconductor supply chain. Therefore, at the invitation of the European Semiconductor Board, international partners and third parties should be able to attend meetings, provide consultation, and exchange information within the structures of the European Semiconductor Board.
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 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 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 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 245 #
Proposal for a regulation
Recital 31 a (new)
Recital 31 a (new)
(31 a) The European Semiconductor Board and the Commission should seek to invite international partners to cooperate in this process, and discuss findings and identify shared strategies in forums such as the EU-US Trade and Technology Council, and in bilateral and multilateral meetings with like-minded Indo-pacific nations. Where relevant, representatives of third countries should be invited to address and cooperate with the European Semiconductor Board or sub-groups.
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 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 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 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 322 #
Proposal for a regulation
Recital 56
Recital 56
(56) A representative of the Commission should chair the European Semiconductor Board. Each Member State’s national single point of contact should appoint at least one high-level representative to the European Semiconductor Board. They Board should include representatives from the semiconductor industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, who should not possess voting rights. Member States could also appoint different representatives in relation to different tasks of the European Semiconductor Board, for example, depending on which Chapter of this Regulation is discussed in the meetings of the European Semiconductor Board. The Commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the Union semiconductors industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, in its sub-groups as observer, industry stakeholders, or representatives from third countries to take part in the meetings on an ad hoc basis.
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 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 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 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 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 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 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 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 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 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 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 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 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 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 622 #
Proposal for a regulation
Article 15 – paragraph 5 – point b
Article 15 – paragraph 5 – point b
(b) enter into consultations or cooperation, on behalf of the Union, with relevant third countries with a view to seeking cooperative solutions to address supply chain disruptions, in compliance with international obligations. This may involve, where appropriate, coordination in relevant international fora. Representatives of third countries may also be invited to address and cooperate with the European Semiconductor Board or a sub-group.
Amendment 629 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. The Commission shall, after consulting the European Semiconductor Board, and where necessary third country representatives, assess risks that may disrupt, compromise or negatively affect the supply of semiconductors (Union risk assessment). In the Union risk assessment, the Commission shall identify early warning indicators.
Amendment 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 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 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 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 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 724 #
Proposal for a regulation
Article 21 – paragraph 6
Article 21 – paragraph 6
6. Where an undertaking is obliged to accept and prioritise a priority rated order, it shall not be liable for any breach of contractual obligations that is required to comply with the priority rated orders. The liability shall be excluded only to the extent the violation of contractual obligations was necessary for compliance with the mandated prioritisation. Where necessary and relevant, the Commission shall enter into dialogue with third parties.
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 739 #
Proposal for a regulation
Article 23 – paragraph 2 – introductory part
Article 23 – paragraph 2 – introductory part
2. The European Semiconductor Board shall provide the Commission with advice and assistance pursuant to this Regulation and. Its primary function shall be monitoring the Union and global supply chain for potential disruptions, and facilitating cooperation with international partners in order to ensure stability of production and supply and in strengthening the overall semiconductor ecosystem, in particular, by:
Amendment 740 #
Proposal for a regulation
Article 23 – paragraph 2 – point a
Article 23 – paragraph 2 – point a
(a) providing advice on the Initiative to the Public Authorities Board of the Chips Joint Undertakingmonitoring Union and global supply chains and crisis response issues;
Amendment 741 #
Proposal for a regulation
Article 23 – paragraph 2 – point a a (new)
Article 23 – paragraph 2 – point a a (new)
(a a) provide a forum of cooperation, coordination and information exchange with third-country partners, to better enable the monitoring of global supply chains and trends that impact the Union, including through information gathering and crisis assessment, in line with international obligations;
Amendment 761 #
Proposal for a regulation
Article 24 – paragraph 4
Article 24 – paragraph 4
4. The Commission mayshall establish standing or temporary sub-groups for the purpose of examining specific questions. Where appropriate, tThe Commission mayshall invite organisations representing the interests of the semiconductor industry, including the Industrial Alliance on Processors and Semiconductor Technologies and users of semiconductors at Union leand experts, industry stakeholders and third-country representativels, to such sub- groups in the capacity of observers. A sub-group including Union Research and Technology Organisations shall be established for the purpose of examining specific aspects on strategic technology directions and reporting on this to the European Semiconductor Board.