BETA

39 Amendments of David CORMAND related to 2022/0032(COD)

Proposal for a regulation
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, always aiming at achieving the objectives of the green transition, 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 and security of supply in the field of semiconductor technologies.

2022/10/26
Committee: BUDG

Proposal for a regulation
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, always aiming at achieving the objectives of the green transition, 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 and security of supply in the field of semiconductor technologies.

2022/11/07
Committee: BUDG

Proposal for a regulation
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~~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. In this regard the Union should invest in infrastructure for the chips that are most useful and widespread, with demand outlets in Europe (around 20nm) and in chips where it has unique expertise to remain the leader in this market segment.

2022/11/07
Committee: BUDG

Proposal for a regulation
Recital 11 a (new)

(11 a) In order to achieve a circular economy, and to make the Union more resilient in its supply chain, this Initiative should foster investment in the recycling of rare metals and materials to turn e- waste into a resource.

2022/11/07
Committee: BUDG

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards for green, trusted and secure chips. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. Device durability, interoperability and sustainability of underlying infrastructure are key prerequisites to ensure that efficiency gains are not cancelled out by short renewal cycles

2022/11/07
Committee: BUDG

Proposal for a regulation
Article 14 – paragraph 3

3. The security of supply of semiconductors may be considered an imperative reason of overriding public interest within 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.deleted

2022/11/07
Committee: BUDG

Proposal for a regulation
Article 22 – paragraph 6 a (new)

6 a. A high degree of transparency shall be applied to all joint procurement activities and related purchase agreements; The European Court of Auditors shall have full access to all relevant documents and communications to provide accurate annual scrutiny of signed contracts and public investment.

2022/11/07
Committee: BUDG

Proposal for a regulation
Recital 2

(2) A framework for increasing the Union’s resilience in the field of semiconductor technologies should be established, stimulating investment, supporting ecodesign, strengthening the capabilities of the Union’s semiconductor supply chain, and increasing cooperation among the Member States and the Commission.

2022/09/19
Committee: IMCO

Proposal for a regulation
Recital 3

(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability within the context of the ecological transition. The second objective, separate and complementary to the first one, is to improve the functioning of the internal market by laying down a uniform Union legal framework for increasing the Union’s resilience and security of supply in the field of semiconductor technologies.

2022/09/19
Committee: IMCO

Proposal for a regulation
Recital 27

(27) The internal market would greatly benefit from common standards for green, trusted and secure chips. Future smart devices, systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green, trust and cybersecurity requirements which will largely depend on the features of the underlying technology. To that end, the Union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. Device durability, interoperability and sustainability of underlying infrastructure are key prerequisites to ensure that efficiency gains are not cancelled out by short renewal cycles.

2022/09/19
Committee: IMCO

(27 a) Common standards for green chips should adopt a life-cycle assessment approach taking into account all major relevant environmental indicators including resource depletion, carbon emissions, eutrophication, water stress, toxicity, summer smog and local electrical consumption They should include clear and harmonised ecodesign criteria such as use of resources, origin of resources, energy consumption, ease of recycling of materials, use of recycled materials and durability.

2022/09/19
Committee: IMCO

Proposal for a regulation
Recital 28

(28) In light of this, the Commission, in consultation with the European Semiconductor Board, should prepare the ground for a certification of green, trusted and secure chips and embedded systems that rely on or make extensive use of semiconductor technologies. In particular, they should ~~discuss and~~ identify the relevant sectors and products in need of such certification.

2022/09/19
Committee: IMCO

Proposal for a regulation
Recital 30

(30) Due to the complex, quickly evolving and interlinked semiconductor value chains with various actors, a coordinated approach to ~~regular~~ monitoring and supply chain transparency is necessary to increase the ability to mitigate risks that may negatively affect the supply of semiconductors. ~~Member States should monitor the semiconductor value chain focusing on early warning indicators and the availability and integrity of the serv~~Understanding that the complexity of the value chain means that last-minute measures to prevent shortages are impractical, the EU should strive to optimise its risk prevention and strategic planning. To that end, a global strategic mapping of the value chain should inform future industrial policies and ~~goods provided by key market actors, in such a way that it would not represent~~the EU should encourage and fund business strategies and investment, such as diversifications of suppliers, strategic stockpiling, and e~~xcessive administrative burden for undertakings.~~nvironmentally-friendly recycling capacities for electronic waste

2022/09/19
Committee: IMCO

Proposal for a regulation
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 Commission or the competent authorities of Member States should be able to request this information from the undertaking in question.

2022/09/19
Committee: IMCO

Proposal for a regulation
Recital 37

(37) In order to forecast, prevent 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 and key industrial players, identify early warning indicators in the Union risk assessment. Such indicators could include the availability, and environmental sustainability, of raw materials, intermediate products and human capital needed for manufacturing semiconductors, or appropriate manufacturing equipment, the human rights of workers in extractive industries, 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.

2022/09/19
Committee: IMCO

Proposal for a regulation
Recital 38

(38) ~~A number of~~Some undertakings providing semiconductor services or goods are assumed to be essential for an effective semiconductor supply chain in the Union’s semiconductor ecosystem, due to the number of Union undertakings relying on their products, their Union or global market share, their importance to ensure a sufficient level of supply or the possible impact of the disruption of supply of their products or services. The Member States should identify those key market actors in their territory.

2022/09/19
Committee: IMCO

Proposal for a regulation
Recital 53

(53) When the crisis stage is activated, two or more Member States could mandate the Commission to aggregate demand and act on their behalf for their public procurement in the public interest, in accordance with existing Union rules and procedures, leveraging its purchasing power. The mandate could authorise the Commission to enter into agreements concerning the purchase of crisis-relevant products for certain critical sectors. The Commission should assess for each request the utility, necessity and proportionality in consultation with the Board. Where it intends to not follow the request, it should inform the concerned Member States and the Board and give its reasons. Furthermore, the participating Member States should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. The deployment and use of purchased products should remain within the remit of the participating Member States. All procurement agreements resulting from the procurement efforts should adhere to the highest level of transparency to allow public scrutiny of the contracts.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 1 – paragraph 1 – point c

(c) setting up a coordination mechanism between ~~the~~ Member States ~~and~~, the Commission and critical industry players for monitoring the supply of semiconductors and develop crisis pre~~sponse to~~vention tools and crisis management of semiconductor shortages.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 2 – paragraph 1 – point 17

(17) ‘~~crisis-relevant~~essential 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 thereof;

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 15 – title

Monitoring ~~and alerting~~

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – introductory part

MSem~~ber States~~i-conductor industry actors, under the guidance and supervision of the European Commission, shall carry out regular monitoring of the semiconductor value chain. In particular, they shall:

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point b a (new)

(b a) manage their supply chain with due diligence, in particular to ensure resilience et security of supply;

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1 – point b b (new)

(b b) provide data through the transparency mechanism set out in article 15a and alert the Commission when a shortage or potential shortage is foreseen.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 2

~~Member Stat~~The Commission, in cooperation with national competent authorities shall provide relevant data and findings to the European Semiconductor Board in the form of regular updates.

2022/09/19
Committee: IMCO

Proposal for a regulation
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’).deleted

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 15 – paragraph 5

5. Where the Commission 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, based on an alert by a Member State provided in accordance with paragraph 4, or through other sources, including information from international partners, it shall without undue delay: (a) convene an extraordinary meeting of the European Semiconductor Board to coordinate the following actions: (1) assessing whether the activation of the crisis stage referred to in Article 18 is warranted; (2) discussing whether it may be appropriate, necessary and proportionate for Member States to jointly purchase semiconductors, intermediate products or raw materials affected or at threat of being affected by a potential semiconductor crisis (‘coordinated procurement’); (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.deleted

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 15 – paragraph 6

6. The coordinated procurement referred to in paragraph 5, point (a)(ii), shall be carried out by Member States in accordance with the rules set out in Article 38 of Directive 2014/24/EU of the European Parliament and of the Council66 . _________________ 66 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).deleted

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 15 a (new)

Article 15 a Strategic mapping and transparency mechanism 1. The Commission shall work together with the European Semiconductor board and semiconductor industry player towards supply chain transparency standards. To that end: a. The Commission shall carry out a mapping based on publicly available data and commercial databases. The Commission shall identify essential data relevant for this purpose, establish a list of missing key data and assess opportunities for standardising of data sets requirement and needs for data transfers from industry players. b. The Commission shall establish an ad- hoc semiconductor forum with relevant stakeholders, including industrial players, academia and civil society, to establish supply chain standards and best practices. 2. The Commission shall act as a central hub for the strategic mapping of the global semiconductor value chain in accordance with article 16a (1). 3. Access to EU led funding and investment initiatives under this regulation shall be contingent on good faith efforts to provide data pursuant to the application of this Act.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 16 a (new)

Article 16 a Union strategic assessment and risk prevention 1. The Commission shall, together with the European Semiconductor Board and Member States, carry out a long-term strategic mapping of the European semiconductor ecosystem with the aim of building knowledge and capacity to inform future industrial policy measures and assess the Union’s strengths and weaknesses in the global semiconductor value chain. Such mapping should be periodically updated and include : a) identification of key products and critical infrastructures depending on semiconductors; b) understanding of dependencies on foreign technology and resource providers, market concentrations, barriers to entry, chokepoints and market dynamics within the global semiconductor ecosystem; c) assessing the potential direct and indirect impacts of foreign governments' geoeconomic measures, such as export restrictions; d) assessing global stocks of critical raw materials and risks of shortages within the sector; e) evaluating the environmental impact of the semiconductor industry and drawing recommendations and best practices for sustainability;recommendation on further international partnerships and opportunities for domestic investment in capacity building and production facilities. 2. The Commission shall, together with the European Semiconductor Board, assess and encourage the diversification of raw and processed material sourcing of key semiconductor applications and products to mitigate dependencies on foreign raw material importation and reduce material extraction as a risk prevention strategy to enhance the European Union's strategic autonomy. Such diversification should include standardisation and interoperability efforts, diversification of international suppliers in the value chain, and developing and investing in advanced environmentally-friendly recycling capabilities of electronic waste material in Europe.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 17 a (new)

Article 17 a Due diligence and risk mitigation obligations 1. Key market actors shall act with due diligence by assessing the security of their supply of semiconductor raw materials, intermediary products, and equipment and design, and implement risk mitigation measures with the aim of reducing the risks of shortages, such as by diversification of suppliers, strategic overstock, adequate inventory levels and stockpiling of essential products. They should also identify strategic chips and assess how they could be substituted, if necessary. 2. Critical sector entities shall act with due diligence by assessing the security of their supply of semiconductor products and implementing risk mitigation measures with the aim of reducing the risks of shortages. 3. The Commission and national competent authorities shall be able to, when appropriate, request information about the risk mitigation measures taken pursuant to paragraphs 1 and 2. 4. The Commission and national competent authorities shall ensure that the management bodies of key market actors and critical sector entities engage in risk mitigation measures, supervise its implementation and be accountable for the non-compliance with the obligations under this Article. 5. Key market actors shall disclose potential disruptions of the supply chain of their products to the relevant users of semiconductors and to the Commission and National competent authorities. All participants to these exchanges shall respect the confidentiality of commercially confidential information, including intellectual property rights. 6. The Commission shall adopt delegated acts in accordance with Article 32 in order to provide guidelines setting out the details of the procedure to be followed for the application of this Article.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 18

Activation of the crisis stage 1. A semiconductor crisis shall be considered to occur when there are serious disruptions in the supply of semiconductors leading to significant shortages, which: (a) entail significant delays or significant negative effects on one or more important economic sectors in the Union, or (b) prevent the supply, repair and maintenance of essential products used by critical sectors. 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 implementing 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 Article. 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 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. 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 shall work closely with the Commission and coordinate any national measures taken with regard to the semiconductor supply chain within the European Semiconductor Board. 5. Upon expiry of the duration for which the crisis stage is activated, the measures taken in accordance with Articles 20, 21 and 22 shall cease to apply. The Commission shall review the Union risk assessment pursuant to Article 16(2) no later than six months after the expiry of the duration of the crisis stage.rticle 18 deleted

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 19

1. Where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the Union, the Commission shall take the measure provided for in Article 20 under the conditions laid down therein. In addition, the Commission may take the measures provided for in Article 21 or Article 22, or both, under the conditions laid down therein. 2. The Commission may, after consulting the European Semiconductor Board, 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. 3. Where the crisis stage is activated and where appropriate in order to address the semiconductor crisis in the Union, the European Semiconductor Board may: (a) assess the impact of the possible imposition of protective measures, including in particular whether the market situation corresponds to a significant shortage of an essential product pursuant to Regulation 2015/479 and provide an opinion to the Commission; (b) assess and advise on further appropriate and effective emergency measures. 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 interest of the Union. The use of these measures shall avoid placing disproportionate administrative burden on SMEs. 5. The Commission shall regularly inform the European Parliament and the Council of any measures taken in accordance with paragraph 1 and explain the reasons of its decision. 6. The Commission may, after consulting the European Semiconductor Board, issue guidance on the implementation and the use of the emergency measures.Article 19 deleted Emergency toolbox

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 22 – paragraph 1

1. The Commission may, upon the request of two or more Member States, establish a mandate to act as a central purchasing body on behalf of the participating Member States (‘participating Member States’) for their public procurement of ~~crisis-relevant~~essential products for certain critical sectors (‘common purchasing’).

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 22 – paragraph 4

4. Procurement under this Regulation shall be carried out by the Commission in accordance with the rules set out in the Financial Regulation for its own procurement. The Commission ~~may~~shall have the ability and responsibility, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of ~~crisis- relevant~~essential products, concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 22 – paragraph 5

5. Where the procurement of ~~crisis- relevant~~essential products includes financing from the Union budget, specific conditions may be set out in specific agreements with economic operators.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 22 – paragraph 6 a (new)

6 a. Where the Commission is empowered to act as central purchasing body, Member States shall not engage in parallel negotiations with the same entities.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 22 – paragraph 6 b (new)

6 b. A high degree of transparency shall be applied to all joint procurement activities and related purchase agreements; The European Court of Auditors shall have full access to all relevant documents and communications to provide accurate annual scrutiny of signed contracts and public investment.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 22 – paragraph 6 c (new)

6 c. The Commission must ensure all joint procurement contracts are made available to the public and accessible on Commission’s website within 30 days after signing of the contract. Information disclosed for public scrutiny shall include: (a) the amount of public investment paid to the contractor, broke down by cost structure of the product; (b) price per unit of the product; (c) number of product units to be delivered and agreed delivery dates; (d) number and location of the product’s manufacturing sites; (e) arrangements related to product donations, intellectual property and technology transfer within the Union and with third countries; (f) product liability clauses and compensation for any damage caused by the product; (g) terms and conditions related to the breach of the contracts and their termination.

2022/09/19
Committee: IMCO

Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)

(d a) cooperating with the Commission for the purpose of value chain transparency efforts, business monitoring of their supply chain and the global strategic mapping exercise;

2022/09/19
Committee: IMCO