Activities of Sergey LAGODINSKY related to 2022/0032(COD)
Legal basis opinions (0)
Amendments (105)
Amendment 23 #
Proposal for a regulation
Recital 1
Recital 1
(1) Semiconductors are at the core of many digital devices: from smartphones and cars, through critical applications and infrastructures in health, energy, communications and automation to most other industry sectors. While semiconductors are essential to the functioning of our modern economy and society, the Union has witnessed unprecedented disruptions in their supply. The current supply shortage is a symptom of permanent and serious structural deficiencies in the Union’s semiconductor value and supply chain. The disruptions have exposed long-lasting vulnerabilities in this respect, notablydisruptions have exposed a strong third- country dependency in manufacturing and design of chips.
Amendment 29 #
Proposal for a regulation
Recital 2
Recital 2
(2) A framework for increasing the Union’s resilience in the field of semiconductor technologies and their design should be established, stimulating investment, strengthening the capabilities of the Union’s semiconductor supply chain, and increasing cooperation among the Member States and the Commission.
Amendment 31 #
(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. 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, reliability, and security of supply in the field of semiconductor technologies. (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)
Amendment 32 #
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 on the Functioning of the European Union. These measures do not entail the harmonisation of national laws and regulations. In this regard, the Union should reinforce the competitiveness and resilience of the semiconductor technological and industrial base, whilst strengthening the innovation capacity of its semiconductor sector, reducing dependence on a limited number of third country companies and geographies, and strengthening its capacity to design and produc, produce, package, reuse, and recycle advanced components. The Chips for Europe Initiative (the ‘Initiative’) should support these aims by bridging the gap between Europe’s advanced research and innovation capabilities and their sustainable industrial exploitation. It should promote capacity building to enable design, production and systems integration in next generation semiconductor technologies, enhance collaboration among key players across the Union, strengthening Europe's semiconductor supply and value chains, serving key industrial sectors and creating new markets.
Amendment 35 #
Proposal for a regulation
Recital 5
Recital 5
(5) The use of semiconductors is critical for multiple economic sectors and societal functions in the Union and therefore, a resilient development and supply is essential for the functioning of the internal market. Given the wide circulation of semiconductor products across borders, the resilience and security of supply of semiconductors can be best addressed through Union harmonising legislation based on Article 114 of the Treaty. With a view to enabling coordinated measures for building resilience, harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the Union are necessary. The proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.
Amendment 36 #
Proposal for a regulation
Recital 6
Recital 6
(6) The achievement of these objectives will be supported by a governance mechanism. At Union level, this Regulation establishes a European Semiconductor Board, composed of representatives of the Member States, the European Parliament and chaired by the Commission. The composition of the European Semiconductor Board willshould be gender balanced. The European Semiconductor Board, granting stakeholders the possibility to become official observers and to provide expert input, will approve the methodology for the mapping of the semiconductor value and supply chain, provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and exchanging information on issues relating to this Regulation. The European Semiconductor Board should hold separate meetings for its tasks under the different chapters of this Regulation. The different meetings may include different compositions of the high-level representatives and the Commission may establish subgroups, ensuring access to members and observers of the European Semiconductor Board .
Amendment 38 #
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 to achieve a resilience of the Union’s semiconductor ecosystem. Semiconductor production should therefore be counted as part of EU core strategic infrastructure. 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. Given the strategic nature of the semiconductor infrastructure, all investments from third-countries should be subject to scrutiny to avoid losing control to authoritarian or unfriendly foreign governments or their proxies.
Amendment 41 #
Proposal for a regulation
Recital 8
Recital 8
(8) The semiconductor sector is characterised by very high development and innovation costs and very high costs for building state of the art testing and experimentation facilities to support the industrial production. This has direct impact on the competitiveness and innovation capacity of the Union industry, as well as on the security and resilience of the supply. In light of the lessons learnt from recent shortages in the Union and worldwide, and the rapid evolution of technologyical challenges and innovation cycles affecting the semiconductor value chain, it is necessary to strengthen the Union’s competitiveness, resilience and innovation capacity by setting up the Initiative.
Amendment 42 #
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 in the semiconductor sector requires action to be taken collaboratively across Member States and at Union level.
Amendment 44 #
Proposal for a regulation
Recital 11
Recital 11
(11) In order to equip the Union with the semiconductor technology research and innovation capacities needed to maintain its research and industrial investments at a leading edge, and bridge the current gap between research and development and manufacturing, the Union and its Member States should better coordinate their efforts and co-invest. To achieve this, the Union and Member States, should take into consideration the twin digital and green, and should align all investments with the goals of the twin green and digital transition goals. The Initiative throughout all components and actions, to the extent possible, should mainstream and maximise the benefits of application of semiconductor technologies as powerful enablers for the sustainability transition that can lead to new products and more efficient, effective, clean and durable use of resources, including energy and materials necessary for production and the whole lifecycle use of semiconductors.
Amendment 45 #
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 preducing environmental impacts as much as possibleventing and remedying negative environmental impacts, especially reducing to a minimum the use of water, energy, toxic chemicals and heavy metals, and increasing refurbishing and recycling. 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 designing libraries for quantum chips, pilot lines for building quantum chips and testing and experimentation facilities for quantum components. Fourth, in order to promote the use of the semiconductor technologies, to provide access to design and pilot line facilities, and to address skills gaps across the Union, the Initiative should support establishment of the competence centres on semiconductors in each Member State. Access to publicly funded infrastructure, such as pilot and testing facilities, and to the competence network, should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings, while SMEs can benefit from preferential access or reduced prices. Such access, including for international research and commercial partners, can lead to broader cross- fertilisation and gains in know-how and excellence, while contributing to cost recovery. Fifth, The Commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘Chips Fund’) proposing both equity and debt solutions, including a blending facility under the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and Council53 , in close cooperation with the European Investment Bank Group and together with other implementing partners such as national promotional banks and institutions. The ‘Chips Fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and SMEs as well as investments across the value chain, including for other companies in the semiconductor value chains. In this context, the European Innovation Council will provide further dedicated support through grants and equity investments to high risk, market creating innovators. _________________ 53 Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).
Amendment 50 #
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 t, and encourage the collaborative development and sharing of technology under free and open source licences, and following open access and open science principles, in particular in public procurement and where funding comes from Union and national public sources, to secure the longevity, sustainability, and reusability of such programmes and their outcomes. 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 builtmeasured 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.
Amendment 53 #
Proposal for a regulation
Recital 14
Recital 14
(14) Support from the Initiative should be used to address market failures or sub- optimal investment situations in a proportionate, sustainable 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 55 #
Proposal for a regulation
Recital 15
Recital 15
(15) The Initiative should build upon the strong knowledge base and enhance synergies with actions currently supported by the Union and Member States through programmes and actions in research and innovation in semiconductors and, in developments of part of the supply chain, in particular Horizon Europe and the Digital Europe programme established by Regulation (EU) 2021/694 of the European Parliament and of the Council54, and initiatives regarding free and open source software, open access and open science, including ISA2 and its successor, Interoperable Europe, with the aim by 2030, to reinforce the Union as global player in semiconductor technology and its applications, with a growing global share in chips manufacturing. Complementing those activities, the Initiative wshould closely collaborate with other relevant stakeholders, including with the Industrial Alliance on Processors and Semiconductor Technologies. _________________ 54 Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing the Digital Europe Programme and repealing Decision (EU) 2015/2240. (OJ L 166, 11.5.2021, p. 1).
Amendment 57 #
Proposal for a regulation
Recital 15 a (new)
Recital 15 a (new)
(15 a) The Initiative should support free and open source lincensing and development models to leverage their potential for business and collaborative development, and to create shared, sustainable and longlived innovation and technological progress. It should promote open access and open science principles to seize opportunities for businesses as well as for society, and increase the access to technology and knowledge for market actors, civil society, and individuals across the EU.
Amendment 59 #
Proposal for a regulation
Recital 16
Recital 16
(16) With a view to accelerating implementation of the actions of the Initiative, it is necessary to provide an option of implementing some of the Initiative actions, in particular on pilot lines, through a new legal instrument, the European Chips Infrastructure Consortium (ECIC). The ECIC should have legal personality. This means that when applying for the actions to be funded by the Initiative, the ECIC itself, and not individual entities forming the ECIC, can be the applicant. The main aim of the ECIC should be to encourage effective and structural collaboration between legal entities, including Rresearch and Ttechnology Oorganizations. For this reason, the ECIC has to involve the participation of at least three legal entities from three Member States and be operated as a public- private sector consortium for a specific action. The setting up of ECIC should not involve the actual setting up of a new Union body and should not be targeted at one specific action under the Initiative. ItECIC should address the gap in the Union’s toolbox to combine funding from Member States, the Union budget and private investment for the purposes of implementing actions of the Initiative. In particular, strong synergies can be attained through combined development of the different pilot lines in an ECIC, pooling the Union’s contribution with the collective resources of the Member States and other participants. The budget of the ECIC that would be made available by Member States and private sector participants over its projected period of operation should respect the timeframes of the actions implemented under this Initiative. The Commission should not be directly a party in the Consortium.
Amendment 61 #
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 breliability, security, and resilience of the supply and the ecosystem in the EU through new or retrofitted industrial facilities capable of semiconductor manufacturing or design, including front-end or back-end, or both, or capable of manufacturing materials or equipment specifically used in semiconductor manufacturing, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, andor other product or production innovation that can offer state-of-the-art or 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 deve, increases the recyclability of semiconductors, reduces significantly and demonstrably the required production inputs such as energy, water, toxic chemicals, heavy metals and rare earths, or demonstrably enables significant energy savings in related industries and sectors and enables the deplopyment or small-scale production sf renewable energy, storage and transmission capacities.
Amendment 63 #
Proposal for a regulation
Recital 22
Recital 22
(22) It is important that Integrated Production Facilities and Open EU Foundries are not subject to extraterritorial application of public service obligations imposed by third countries that could undermine their ability to use their infrastructure, software, services, facilities, assets, resources, intellectual property or knowhow needed to fulfil the obligation on priority rated orders under this Regulation, which they would have to guarantee.
Amendment 65 #
Proposal for a regulation
Recital 23
Recital 23
(23) In light of the fast development of semiconductor technologies and to strengthen the future industrial competitiveness of the Union, Integrated Production Facilities and Open EU Foundries should commit to continued and efficient investment into the next generations of semiconductors, including by testing and experimenting new developments through priority access to the pilot lines set up by the Chips for Europe Initiative, without prejudice to effective access by others, especially of SMEs and start-ups.
Amendment 66 #
Proposal for a regulation
Recital 24
Recital 24
(24) To allow for a uniform and transparent procedure to attain recognition as an Integrated Production Facility and Open EU Foundry, the recognition decision should be adopted by the Commission following the application by an individual undertaking or a consortium of several undertakings. To account for the importance of a coordinated and cooperated implementation of the planned facility, the Commission should take into account in its assessment the readiness of the Member State or Member States where the applicant intends to establish its facilities to support the set-up. Furthermore, when assessing the viability of the business plan, the Commission could take into account the overall record of the applicant, the clear and demonstrable contribution of the eligible action proposed to be implemented to the long term competitiveness of the EU semiconductor industry and the objectives described in Article 4, the cost- effectiveness of the eligible action proposed to be implemented, the contribution to achieving the twin green and digital transition of the eligible action proposed to be implemented, the environmental impact of the eligible action proposed to be implemented and the commitment to prevent and remedy any existing and new negative impact to the environment or biodiversity, as well as the participation of SMEs and start-ups . In light of the privileges attached to recognition as an Integrated Production Facility or Open EU Foundry, the Commission should monitor whether facilities that have been granted this status continue to comply with the criteria set out in this Regulation.
Amendment 68 #
Proposal for a regulation
Recital 26
Recital 26
(26) It is necessary that Integrated Production Facilities and Open EU Foundries are set-up as quickly as possible, while keeping the administrative burden to a minimum. For that reason, Member States should treat applications related to the planning, construction and operation of Integrated Production Facilities and Open EU Foundries in the most rapid manner possible. They should appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator, serving as a single point of contact for the project. Moreover, where necessary for granting a derogation under Council Directive 92/43/EEC56 and Directive 2000/60/EC of the European Parliament and Council57 , the establishment and operation of these facilities, which shall not prevent the necessary conducting of a climate and environmental impact assessment for every new or retrofitted facility. Extreme weather events, such as the droughts experienced in many be considered as being of overriding public interestEU member states in Summer of 2022 together within the meaning of the aforementioned legal texts, provided that the remaining other conditions set out insignificant quantities of water and energy necessary for these provisions are fulfilled. _________________ 56 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora. 57 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policyduction of semiconductors highlight the importance of such climate and environmental impact assessments.
Amendment 72 #
Proposal for a regulation
Recital 27
Recital 27
(27) The internal market would greatly benefit from common standards and interoperability for green, trusted and secure chips. Future smart devices, systems, networks 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. Free and open source licensing, hard- and software development, open access and open science principles can contribute positively to these goals.
Amendment 74 #
Proposal for a regulation
Recital 27 a (new)
Recital 27 a (new)
(27 a) Free and open source licences allow users to run, copy, distribute, study, challenge and improve software and related documents freely. Both the EU Member States and the European Commission are promoting the use and development of free and open source solutions, and relying on open standards when building ICT systems, including through previous and current EU programmes for interoperability and standardisation such as ISA2 and Interoperable Europe.
Amendment 75 #
Proposal for a regulation
Recital 27 b (new)
Recital 27 b (new)
(27 b) Research and development have to adhere to high standards of verifiability, falsifiability and reproducibility. Adherence to these principles increases the security, reliability, and resilience of research and development of European semiconductors and their supply chain. Free and open source licensing and the underlying principles fulfil these high standards and contribute to scientific research, education, and overall capacity building. Free and open source licensing enables the collaborative development and interoperability of soft and hardware.
Amendment 76 #
Proposal for a regulation
Recital 27 c (new)
Recital 27 c (new)
(27 c) Semiconductor research and development should adhere to the principle “Security by design” established in the Commission Joint Communication “Resilience, Deterrence and Defence: Building strong cybersecurity for the EU” of 13 September 2017.
Amendment 78 #
Proposal for a regulation
Recital 31
Recital 31
(31) Any relevant findings, including information, inter alia provided by relevant stakeholders and industry associations, should be provided to the European Semiconductor Board to allow for a regular exchange of information between high- levelthe appointed representatives of Member Stateand official observers and for integration of the information into a monitoring overview of the semiconductor value chains.
Amendment 83 #
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. The responsibility to respect human rights, social rights, human health and the environment should apply to all manufacturing operations and other related business relationships of an economic operator throughout the semiconductor value chain. Therefore, in view of the expected exponential growth in semiconductor demand in the EU and the fact that the extraction, processing and trading of certain raw materials, chemicals and secondary raw materials that are used in the semiconductor manufacturing and occur in waste semiconductor treatment, carry particular risks, certain requirements for the semiconductor value chain due diligence process should be laid down, with the objective to address those risks, in accordance with internationally recognised due diligence standards and with EU law.
Amendment 85 #
Proposal for a regulation
Recital 34
Recital 34
(34) Member States should alert the Commission if relevant factors indicate a potential semiconductor crisis. In order to ensure a coordinated response to address such crises, the Commission should upon the alert by a Member State or through other sources, includingsuch as information from international partners, convene an extraordinary meeting of the European Semiconductor Board for assessing the need to activate the crisis stage and for discussing whether it may be appropriate, necessary and proportionate for Member States to carry out coordinated joint procurement. The Commission should engage in consultations and cooperation with relevant third countries with a view to addressing any disruptions in the international supply chain, in compliance with international obligations and without prejudice to procedural requirements under the Treaty on international agreements.
Amendment 86 #
Proposal for a regulation
Recital 35
Recital 35
(35) As part of the monitoring, national competent authorities should also do a mapping of undertakings operating in the Union along the semiconductor supply chain established in their national territory and notify this information to the Commission. provide the Commission with this information. Robust conformity assessment procedures are needed to ensure that there is conformity with sustainable requirements and value chain due diligence obligations set out in EU law and in this Regulation in particular.
Amendment 89 #
Proposal for a regulation
Recital 36
Recital 36
(36) In order to facilitate effective monitoring, the Commission should provide an in-depth assessment of the risks associated with different stages of the semiconductor value chain is needed, including on the origins and sources of supplies beyond the Union. Such risks may be related to critical inputs and equipment for the industry, including digital products that may be vulnerable, possible impact of counterfeit or underperforming semiconductors, manufacturing capacities and other risks that may disrupt, compromise or negatively affect the supply chain. Those risks could include supply chains with a single point of failure or which are otherwise highly concentrated. Other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. The Commission should, assisted by the European Semiconductor Board and taking also into account information received from the main user categories, develop a Union level risk assessment. Special attention should be given to ensuring that the monitoring requirements of this Regulation relating to the production process of semiconductors are robust. Compliance with the carbon footprint declaration, recycled content, as well as human rights and semiconductor value chain due diligence obligations laid down in this Regulation should be therefore fully ensured.
Amendment 92 #
Proposal for a regulation
Recital 37
Recital 37
(37) In order to forecast and prepare for future disruptions of the different stages of the semiconductor value chain in the Union, the Commission should, assisted by the European Semiconductor Board, identify early warning indicators in the Union risk assessment. Such indicators could include the availability of raw materials, intermediate products and human capitalresources needed for manufacturing semiconductors, or appropriate manufacturing equipment, the forecasted demand for semiconductors on the Union and global markets, price surges exceeding normal price fluctuation, the effect of accidents, attacks, natural disasters or other serious events, the effect of trade policies, tariffs, export restrictions, trade barriers and other trade related measures, and the effect of business closures, delocalisations or acquisitions of key market actors. Member States should monitor these early warning indicators.
Amendment 93 #
Proposal for a regulation
Recital 37 a (new)
Recital 37 a (new)
(37 a) With regard to increasing the capacity, capability, and availability of human resources in the field, the demand for skilled workers can only be fulfilled if efforts are made to achieve a balanced representation of genders, ethnic diversity, and non-discrimination against disabled persons in the sector and their training and education.
Amendment 95 #
Proposal for a regulation
Recital 40
Recital 40
(40) As part of the monitoring, Member States cshould specifically consider the availability and integrity of the services and goods of key markets actors. Such issues cshould be brought to the attention of the European Semiconductor Board and the Commission by the Member State concerned.
Amendment 96 #
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 serious disruptions to the supply of semiconductors leading to significant shortages which entail significantsupply chain, including intermediate products or raw and processed materials, at any link of the semiconductor value chain, and demonstrably leading to significant shortages or 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 sector or when serious disruptions lead to significant shortages which prevent the supply, repair and maintenance of essential products of the semiconductor supply chain itself or the normal functioning of critical sectors in providing essential goods and services to EU citizens, for instance medical and diagnostic equipment.
Amendment 97 #
Proposal for a regulation
Recital 43
Recital 43
(43) In order to ensure an agile and effective response to such a semiconductor crisis, the Commission should be empowered to activate the crisis stage by means of an implementingdelegated acts and for a predetermined duration period, taking into account the opinion of the European Semiconductor Board. The Commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period, should such a necessity be ascertained, taking into account the opinion of the European Semiconductor Board.
Amendment 100 #
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 as well as the producers of renewable energy, storage and distribution and transmission equipment. For the purposes of this Regulation, defence and other activities that are relevant for public safety and security should be additionally considered as a critical sector. Certain measures should only be enacted fur the purpose of securing supply to critical sectors. The Commission may limit the emergency measures to certain of these sectors or to certain parts of them when the semiconductor crisis has disturbed or is threatening to disturb their operation. _________________ 61 COM(2020) 829. 16.12.2020.
Amendment 102 #
Proposal for a regulation
Recital 52
Recital 52
(52) The obligation to prioritise the production of certain products respects the essence of and will not disproportionately affect the freedom to conduct a business and the freedom of contract laid down in Article 16 of the Charter of Fundamental Rights of the European Union (‘the Charter’) and the right to property laid down in Article 17 of the Charter. Any limitation of those rights in this Regulation will, in accordance with Article 52(1) of the Charter, needs to be provided for by law, respect the essence of those rights and freedoms, and comply with the principle of proportionality.
Amendment 103 #
(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 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 European Parliament should appoint a representative. The Commission may establish sub-groups and should be entitled to establish working arrangements by inviting experts to take part in the meetings on an ad hoc basis or by inviting organisations representing the interests of the Union semiconductors industry, such as the Industrial Alliance on Processors and Semiconductor Technologies, in its sub- groups as observers.
Amendment 105 #
Proposal for a regulation
Recital 58
Recital 58
(58) Member States hold a key role in the application and enforcement of this Regulation. In this respect, eEach Member State should designate one or more national competent authorities for the purpose of effective implementation of this Regulation and ensure that those authorities are adequately empowered and resourced, and that the relevant administrative bodies have the necessary level of expertise. Member States could designate an existing authority or authorities. In order to increase organisation efficiency in the Member States and to set an official point of contact vis-a-vis the public and other counterparts at Member State and Union levels, including the Commission and the European Semiconductor Board, each Member State should designate, within one of the authorities it designated as competent authority under this Regulation, one national single point of contact responsible for coordinating issues related to this Regulation and cross-border cooperation with competent authorities of other Member States.
Amendment 107 #
Proposal for a regulation
Recital 59
Recital 59
(59) In order to ensure trustful and constructive cooperation of competent authorities at Union and national level, all parties involved in the application of this Regulation should respect the confidentiality of information and data 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 implementingdelegated acts to specify the practical arrangements for the treatment of confidential information in the context of information gathering.
Amendment 108 #
Proposal for a regulation
Recital 62
Recital 62
(62) In order to ensure uniform conditions for the implementation of this Regulation, implementingdelegated powers should be conferred on the Commission as regards the selection of ECICs and as regards the procedure for establishing and defining the tasks of competence centres and the procedure for establishing the network, so that the objectives of the Initiative are achieved. Furthermore, implementingdelegated powers should be conferred on the Commission as regards activating the crisis stage in a semiconductor crisis, to allow a rapid and coordinated response, and for specifying the practical arrangements for the treatment of confidential information. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council64 of the European Parliament and of the Council. _________________ 64 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, (OJ L 55, 28.2.2011, p. 13).
Amendment 111 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
(2) ‘chip’ means an electronic device comprising various functional elements on a single piece of semiconductor material, typically taking the form of memory, logic, processor and analogueother, application-specific, analogue, digital, and mixed, permanently or temporarily programmed devices, also referred to as ‘integrated circuit’;
Amendment 112 #
Proposal for a regulation
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
(4) ‘semiconductor supply chain’ means the system of activities, organisations, actors, technology, information, resources and services involved in the production of semiconductors, including raw materials, manufacturing equipment, research, design, fabrication, assembly, testing and packaging;
Amendment 113 #
Proposal for a regulation
Article 2 – paragraph 1 – point 10
Article 2 – paragraph 1 – point 10
(10) ‘first-of-a-kind facility’ means an new or retrofitted industrial facility capable of semiconductor manufacturing or design, including front-end or back-end, or both, or capable of manufacturing materials or equipment specifically used in semiconductor manufacturing, that is not substantively already present or committed to be built within the Union, for instance with regard to the technology node, substrate material, such as silicon carbide and gallium nitride, and other product or production innovation that can offer state-of-the-art or better performance, process innovation or energy and environmental performance; increases the recyclability of semiconductors, reduces significantly and demonstrably the required production inputs, such as energy, water, toxic chemicals, heavy metals and rare earths, demonstrably enables energy savings in other industries and sectors and enables the deployment of renewable energy, storage and transmission capacities;
Amendment 114 #
Proposal for a regulation
Article 2 – paragraph 1 – point 11
Article 2 – paragraph 1 – point 11
(11) ‘next generation chips’ and ‘next generation semiconductor technologies’ means chips and semiconductor technologies that go beyond the state of the art in offering significant improvements in computing power or energy efficiency as well as other significant energy and environmental gain, security, or the efficiency of energy generation, storage, and transmission, as well as improvements in recyclability and other significant energy and environmental gains, or that require significantly and demonstrably less production inputs, such as energy, water, toxic chemicals, heavy metals and rare earths;
Amendment 115 #
Proposal for a regulation
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
(16) ‘critical sector’ means any sector referred to in the Annex of the Commission proposal for a Directive of the European Parliament and of the Council on the resilience of critical entities, the defenall sectors producing equipment for the development and deployment of renewable energy generation, storage, distribution and transmission capacity, the defence and space sector and other activities that are relevant for public safety and security;
Amendment 118 #
Proposal for a regulation
Article 2 – paragraph 1 – point 17
Article 2 – paragraph 1 – point 17
(17) ‘crisis-relevant product’ means semiconductors, their packaging as well as intermediate products and raw materials required to produce semiconductors or intermediate products, that are affected by the semiconductor crisis or of strategic importance to remedy the semiconductor crisis or economic effects thereofcan demonstrably remedy dysfunctionalities in one of the critical sectors in providing essential goods and services to EU citizens;
Amendment 119 #
Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)
Article 2 – paragraph 1 – point 17 a (new)
(17 a) (17 a) ‘semiconductor crisis’ means the existence of serious disruptions in the semiconductor supply chain, leading to significant shortages of semiconductors, intermediate products or raw and processed materials, at any link of the semiconductor value chain, which demonstrably prevents the normal functioning of critical sectors in providing essential goods and services to EU citizens;
Amendment 121 #
Proposal for a regulation
Article 2 – paragraph 1 – point 19 a (new)
Article 2 – paragraph 1 – point 19 a (new)
(19 a) (19a) ‘Free and open source’ means software or related content, such as source code or design documents, that can be freely run, copied, distributed, studied, or improved by anyone, based on code or documents that are distributed under licensing terms that permit universal access, modification and redistribution.
Amendment 125 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. The general objective of the Initiative is to support large-scaimprove the long-term relative competitiveness of the EU semiconductor industry by leveraging already existing capabilities and comparative advantages and investing in a cost-effective way and foster to the extent possible technological capacity building and innovation throughout the Union to enable development and deployment of cutting- edge and next generation semiconductor and quantum technologies that will reinforce the Union advanced design, systems integration and chips production capabilities, as well as contribute to the achievement of the twin digital and green transition.
Amendment 128 #
Proposal for a regulation
Article 4 – paragraph 2 – point a – introductory part
Article 4 – paragraph 2 – point a – introductory part
(a) building up advanced large-scaleand specialised design capacities for integrated semiconductor technologies. This operational objective shall be achieved through:
Amendment 130 #
Proposal for a regulation
Article 4 – paragraph 2 – point b – point 2
Article 4 – paragraph 2 – point b – point 2
(2) supporting large scale innovation through access to new or existing pilot lines for experimentation, test, and validation of new design concepts integrating key functionalities, such as novel materials and architectures for power electronics fostering sustainable energy andrenewable energy, manufacturing according to the highest environmental standards with an obligation to reduce the required production inputs, such as water, energy, toxic chemicals, heavy metals and rare earths, electro mobility, lower energy consumption, higher energy and resource efficiency, security, higher levels of computing performance or integrating breakthrough technologies such as neuromorphic and embedded artificial intelligence (AI) chips, integrated photonics, graphene and other 2D material based technologies;
Amendment 133 #
Proposal for a regulation
Article 4 – paragraph 2 – point b – point 3
Article 4 – paragraph 2 – point b – point 3
(3) providing support to Integrated Production Facilities and Open EU Foundries through priority access to the new pilot lines. Providing access to new pilot lines for all interested parties and guaranteeing access to start-ups and SMEs.
Amendment 137 #
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 investments into training and education.
Amendment 142 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. The Initiative shall enable synergies with Union programmes, as referred to in Annex III. The Commission shall ensure that the achievement of the objectives isof the other programmes are not hampered when leveraging the complementary character of the Initiative with Union programmes.
Amendment 143 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. For the purpose of implementing eligible actions and other related tasks funded under the Initiative a European Chips Infrastructure Consortium (‘ECIC’) may be established under the conditions set out in this Article.
Amendment 145 #
Proposal for a regulation
Article 7 – paragraph 3 – point b a (new)
Article 7 – paragraph 3 – point b a (new)
(b a) a document detailing how actions taken by the ECIC will technically contribute to the objectives described in Article 4;
Amendment 146 #
Proposal for a regulation
Article 7 – paragraph 3 – point b b (new)
Article 7 – paragraph 3 – point b b (new)
(b b) a detailed and reasoned statement on how much public funding is necessary to achieve the actions outlined in the application.
Amendment 147 #
Proposal for a regulation
Article 7 – paragraph 4 – point f a (new)
Article 7 – paragraph 4 – point f a (new)
(f a) the clear and demonstrable contribution of the eligible action proposed to be implemented to the long term competitiveness of the EU semiconductor industry and the objectives described in Article 4;
Amendment 148 #
Proposal for a regulation
Article 7 – paragraph 4 – point f b (new)
Article 7 – paragraph 4 – point f b (new)
(f b) cost-effectiveness of the eligible action proposed to be implemented;
Amendment 149 #
Proposal for a regulation
Article 7 – paragraph 4 – point f c (new)
Article 7 – paragraph 4 – point f c (new)
(f c) contribution to achieving the twin green and digital transition, of the eligible action proposed to be implemented;
Amendment 150 #
Proposal for a regulation
Article 7 – paragraph 4 – point f d (new)
Article 7 – paragraph 4 – point f d (new)
(f d) the environmental impact of the eligible action proposed to be implemented and a credible strategy and commitment to prevent any damages to the environment and biodiversity, including sufficient measures to ensure that any negative consequences will be treated according to the polluter pays principle;
Amendment 151 #
Proposal for a regulation
Article 7 – paragraph 4 – point f e (new)
Article 7 – paragraph 4 – point f e (new)
(f e) the participation of SMEs and start-ups.
Amendment 152 #
Proposal for a regulation
Article 7 – paragraph 5 – subparagraph 1 – introductory part
Article 7 – paragraph 5 – subparagraph 1 – introductory part
The Commission by means of an implementing delegated act and based on the criteria set out in paragraph 4, shall adopt one of the following decisions:
Amendment 153 #
Proposal for a regulation
Article 7 – paragraph 5 – subparagraph 2
Article 7 – paragraph 5 – subparagraph 2
The implementingdelegated act shall be adopted in accordance with the examination procedure referred to in Article 33(2).
Amendment 155 #
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 156 #
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, by means of implementingdelegated 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 implementingdelegated acts shall be adopted in accordance with the examination procedure referred to in Article 33(2).
Amendment 157 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. The components listed in points (a) to (d) of Article 5 under the Initiative may be entrusted togeneral objectives as well as the objectives described in Article 4 paragraph 2, points a, b, and c, shall be stated in their entirety in the basic act establishing the Chips Joint Undertaking referred to in Council Regulation XX/XX amending Council Regulation (EU) 2021/2085 and implemented in the work programme of the Chips Joint Undertaking.
Amendment 158 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Integrated Production Facilities are new or retrofitted first-of-a-kind semiconductor design and manufacturing facilities, including front- end or back-end, or both, in the Union that contribute to the security of supply for the internal market or improve the relative competitiveness of the EU semiconductor industry.
Amendment 159 #
Proposal for a regulation
Article 10 – paragraph 2 – point b
Article 10 – paragraph 2 – point b
(b) its establishment and operation have a clear positive impact on the Union’s semiconductor value chain with regard to ensuring the security of supply, inter alia by increasing the strategic relevance of or demand for specific EU semiconductor products and services within the global semiconductor value chain, and increasing qualified workforce;
Amendment 160 #
Proposal for a regulation
Article 10 – paragraph 2 – point c
Article 10 – paragraph 2 – point c
(c) it guarantees not to be subject to the extraterritorial application of public service obligations of third countries in a way that may undermine the undertaking’s ability to comply with the obligations set out in Article 21(1) and commits to inform the Commission when such obligation arises;
Amendment 163 #
Proposal for a regulation
Article 10 – paragraph 2 – point d
Article 10 – paragraph 2 – point d
(d) it commits to invest in the design, production, packaging, reuse or recycling of next generation of chips.
Amendment 164 #
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. For the purpose of investing in the design, production, packaging, reuse or recycling of the next generation of chips according to paragraph 2, point (d), the Integrated Production Facility shall have priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings, especially SMEs and start-ups .
Amendment 165 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Open EU Foundries are new or retrofitted first-of-a- kind semiconductor front-end or back-end, or both, manufacturing facilities in the Union that offer production capacity to unrelated undertakings and thereby contribute to the security of supply for the internal market. or improve the relative competitiveness of the EU semiconductor industry.
Amendment 166 #
Proposal for a regulation
Article 11 – paragraph 2 – point b
Article 11 – paragraph 2 – point b
(b) its establishment and operation have a clear positive impact on the Union’s semiconductor value chain with regard to ensuring the security of supply, inter alia by increasing the strategic relevance of or demand for specific EU semiconductor products and services within the global semiconductor value chain, and increasing qualified workforce, taking into account in particular the extent to which it offers design or front-end or back-end, or both, production capacity to undertakings not related to the facility, if there is sufficient demand;
Amendment 167 #
Proposal for a regulation
Article 11 – paragraph 2 – point c
Article 11 – paragraph 2 – point c
(c) it guarantees not to be subject to the extraterritorial application of public service obligations of third countries in a way that may undermine the undertaking’s ability to comply with the obligations set out in Article 21(1) and commits to inform the Commission when such obligation arises;
Amendment 170 #
Proposal for a regulation
Article 11 – paragraph 2 – point d
Article 11 – paragraph 2 – point d
(d) it commits to invest in the design, production, packaging, reuse or recycling of the next generation of chips.
Amendment 171 #
Proposal for a regulation
Article 11 – paragraph 4
Article 11 – paragraph 4
4. For the purpose of investing in the design, production, packaging, reuse or recycling of the next generation of chips according to paragraph 2, point (d), the Open EU Foundry shall have priority access to the pilot lines set up in accordance with Article 5, point (b). Any such priority access shall be without prejudice to effective access to the pilot lines by other interested undertakings, especially SMEs and start-ups .
Amendment 173 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point b
Article 12 – paragraph 2 – subparagraph 1 – point b
(b) a business plan evaluating the financial viability of the project, including information ona detailed calculation of any funding gap including a description of the methodology that is used for this calculation and any planned public support;
Amendment 174 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d a (new)
Article 12 – paragraph 2 – subparagraph 1 – point d a (new)
(d a) a detailed environmental and climate impact assessment, especially focusing on water and energy use as well as the use, treatment and disposal of toxic chemicals, heavy metal and rare earths;
Amendment 175 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d b (new)
Article 12 – paragraph 2 – subparagraph 1 – point d b (new)
(d b) its cost-effectiveness in achieving the stated targets;
Amendment 176 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – point d c (new)
Article 12 – paragraph 2 – subparagraph 1 – point d c (new)
(d c) the commitment to invest in re- and upskilling of the existing labour force as well investing into training and education.
Amendment 177 #
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 2
Article 12 – paragraph 2 – subparagraph 2
The Commission shall request additional information where it considers the information provided by the applicant as incomplete and process the application and adopt its decision in a timely manner and notify the applicant thereof.
Amendment 178 #
Proposal for a regulation
Article 12 – paragraph 3
Article 12 – paragraph 3
3. The Commission shall monitor the activities of the Integrated Production Facilities and the Open EU Foundries, in particular to the extent necessary to evaluate if all the requirements for recognising a facility as Integrated Production facility or Open EU Foundry are fulfilled. Where the Commission finds that a facility no longer fulfils the criteria set out in Articles 10(2) or in Article 11(2) respectively, it shall notify the findings to the European Semiconductor Board. After consulting the European Semiconductor Board and after hearing the facility, the Commission may repeal the decision granting a facility the status of Integrated Production Facility or Open EU Foundry.
Amendment 179 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Where such status exists in national law, Integrated Production Facilities and Open EU Foundries shall be allocated the status of the highest national significance possible and be treated as such in permit granting processes, including those relating to environmental assessments and if national law so provides, in spatial planning. In order to comply to the goals of the twin green and digital transition, no derogation from environmental assessments and requirements shall be granted, while stringent requirements shall be put in place to reduce and remedy the use of water and biodiversity impact. In determining the location of such facilities, the spatial planning procedures shall continue applying unchanged and the interaction with regional infrastructure and its environmental and social consequences should be factored in to the decision to allow any construction.
Amendment 180 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
Amendment 181 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. For each Integrated Production Facility and Open EU Foundry, the Member State concerned shall nominate an authority responsible for facilitating and coordinating administrative applications related to planning, construction and operation. The authority shall appoint a coordinator who shall serve as the single point of contact for the Integrated Production Facility or Open EU Foundry. The authority may establish a working group where all authorities involved in the administrative applications are represented in order to draw up a permit granting schedule and to monitor and coordinate its implementation. If the setting up of an Integrated Production Facility or an Open EU Foundry requires decisions to be taken in two or more Member States, the respective authorities shall take all necessary steps for efficient and effective cooperation and coordination among themselves. In all cases the goals of the twin green and digital transition must be respected and the polluter pays principle should be effectively and efficiently implemented.
Amendment 182 #
Proposal for a regulation
Chapter IV – title
Chapter IV – title
IV Monitoring and, Crisis Prevention and Response
Amendment 191 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. National competent authorities designated pursuant to Article 26(1) may request information from representative organisations of undertakings or individual undertakings operating along the semiconductor supply chain where necessary and proportionate for the purpose of paragraph 1. Such information shall notably address the responsibility to respect human rights, social rights, human health and the environment throughout the semiconductor value chain. 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.
Amendment 197 #
Proposal for a regulation
Article 15 – paragraph 7 a (new)
Article 15 – paragraph 7 a (new)
7 a. The obligations provided under this Article are complementary to Directive [XXX] on Corporate Sustainability Reporting and to Directive [XXX] on Corporate Sustainability Due Diligence.
Amendment 199 #
Proposal for a regulation
Article 17 – paragraph 1 – point c a (new)
Article 17 – paragraph 1 – point c a (new)
(c a) the respect of due diligence obligations by a market actor, in relation to the impact of its activity on human rights, social rights, human health and the environment;
Amendment 204 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
2. Where an assessment of the Commission provides concrete, serious, and reliable evidence of a semiconductor crisis, the Commission may activate the crisis stage by means of implementingdelegated acts in accordance with Article 33(2). The duration of the activation shall be specified in the implementing act. Where, in view of the scope and gravity of the semiconductor crisis, duly justified imperative grounds of urgency so require, the procedure provided for in Article 33(3) shall apply to implementing acts adopted pursuant to this Articledelegated act.
Amendment 205 #
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, 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 implementingdelegated 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 209 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. The Commission may, after consulting the European Semiconductor Board,shall limit the measures provided for in Articles 21 and 22 to certain critical sectors the operation of which is disturbed or under threat of disturbance on account of the semiconductor crisis.
Amendment 211 #
Proposal for a regulation
Article 19 – paragraph 4
Article 19 – paragraph 4
4. The use of the measures referred to in paragraph 1 shall be proportionate and restricted to what is necessary for addressing serious disruptions of vital societal functions or economic activities in the Union and must be in the best long term interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on SMEs and start-ups.
Amendment 213 #
Proposal for a regulation
Article 19 – paragraph 5
Article 19 – paragraph 5
5. The Commission shall regularly inform the European Parliament and the Council twice a year of any measures taken in accordance with paragraph 1 and explain the reasons of its decision.
Amendment 218 #
Proposal for a regulation
Article 20 – paragraph 2
Article 20 – paragraph 2
2. The request for information shall state its legal basis, be proportionate, in particular 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 226 #
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 required for any change in production sequence. In its decision, the Commission shall state the legal basis of the priority rated order, fix the time-limit within which the order is to be performed, and, where applicable, specify the product and quantity, and, where applicable, state the penalties provided for in Article 28 for non- compliance with the obligation. The priority rated order shall be placed at fair and reasonable prica reasonable price, that accounts for the cost and efforts required for any change in the production sequence as well as the cost associated with cancellation or delaying of existing orders, based on the market conditions at that time.
Amendment 227 #
Proposal for a regulation
Article 21 – paragraph 4 a (new)
Article 21 – paragraph 4 a (new)
4 a. The Commission shall ensure that these extra costs can be covered from the budget allocations before the priority rated order is placed.
Amendment 229 #
Proposal for a regulation
Article 21 – paragraph 5 – point a
Article 21 – paragraph 5 – point a
(a) if the undertaking is unable to perform the priority rated order on account of technical grounds, including the time needed to change the production sequence, insufficient production capability or production capacity, even under preferential treatment of the order;
Amendment 232 #
Proposal for a regulation
Article 21 – paragraph 6 a (new)
Article 21 – paragraph 6 a (new)
6 a. The Commission shall make financial and legal provisions for the case that an undertaking is sued for breach of contract outside the jurisdiction of the Union as a result of the priority rated order.
Amendment 239 #
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
1. The European Semiconductor Board shall be composed of representatives of the Member States and a representative from the European Parliament, and shall be chaired by a representative of the Commission.
Amendment 241 #
Proposal for a regulation
Article 25 – paragraph 4
Article 25 – paragraph 4
Amendment 247 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. The Commission may adopt implementingdelegated acts, as necessary following experience gained in information gathering, to specify the practical arrangements for the treatment of confidential information in the context of exchange of information pursuant to this Regulation. Those implementingdelegated acts shall be adopted in accordance with the examination procedure referred to in Article 33(2).
Amendment 256 #
Proposal for a regulation
Article 31 – paragraph 4
Article 31 – paragraph 4
4. The rights of defence of the undertaking or representative organisations of undertakings concerned shall be fully respected in any proceedings. The undertaking or representative organisations of undertakings concerned shall be entitled to have access to the Commission's file under the terms of a negotiated disclosure, subject to the legitimate interest of undertakings in the protection of their business secrets. The right of access to the file shall not extend to confidential information and internal documents of the Commission or the authorities of the Member States. In particular, the right of access shall not extend to correspondence between the Commission and the authorities of the Member States, unless authorised by the right of access to EU documents. Nothing in this paragraph shall prevent the Commission from disclosing and using information necessary to prove an infringement.