19 Amendments of Seán KELLY related to 2022/0032(COD)
Amendment 71 #
Proposal for a regulation
Recital 3
Recital 3
(3) This framework pursues two objectives. The first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the Union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. 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, as well as strengthening its role at the global level through international cooperation and trade.
Amendment 85 #
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, business representatives and chaired by the Commission. The European Semiconductor Board will provide advice to and assist the Commission on specific questions, including the consistent application of this Regulation, facilitating cooperation among Member States and 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 subgroupsbusiness representatives affected by the Regulation.
Amendment 86 #
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. 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 and business representatives, should work together towards both immediate and long-term supply solutions for the semiconductor market; 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; and in bilateral and multilateral meetings with like-minded partners. The Commission shall maintain close cooperation with Taiwan through EU’s Indo-Pacific strategy and with a view to addressing respective vulnerabilities in a mutually beneficial manner. Taiwan is located in a strategic position in terms of trade and is a crucial partner for the global supply chain of key high-tech sectors, notably semiconductors. The Commission should urgently begin an impact assessment, public consultation and scoping exercise on a Bilateral Investment Agreement with the Taiwanese authorities in preparation for negotiations to deepen bilateral economic ties and encourage Taiwan to increase investments in the EU, including on matters relating to multilateralism and the WTO. Where necessary, representatives of third countries should be invited to address and cooperate with the European Semiconductor Board. The Trade and Technology Council should act as platform to coordinate efforts to make semiconductor supply chains more resilient.
Amendment 116 #
Proposal for a regulation
Recital 30 a (new)
Recital 30 a (new)
(30 a) Given that this Regulation will impose additional compliance costs on the sector, action needs to be taken to prevent the total level of regulatory burden from increasing. The Commission should therefore be obliged to present, before the application of this Regulation, proposals offsetting the regulatory burdens introduced by this Regulation, through the revision or abolishment of provisions in other Union legislative acts that generate compliance costs for the semiconductor sector.
Amendment 122 #
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, including 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. In a globalised world with international value chains, European resilience is not possible without well-functioning multilateral and bilateral trade agreements. The European openness to trade and investment is a strength and source of growth and resilience for the Union, as a major importer and exporter.
Amendment 144 #
Proposal for a regulation
Recital 47
Recital 47
(47) The purpose of requests for information from undertakings along the semiconductor supply chain established in the Union in the crisis stage is an in-depth assessment of the semiconductor crisis in order to identify potential mitigation or emergency measures at Union or national level. Such information may include production capability, production capacity and current primary disruptions and bottlenecks. These aspects could include the typical and current actual stock of crisis-relevant products in its production facilities located in the Union and third country facilities which it operates or contracts or purchases supply from; the typical and current actual average lead time for the most common products produced; the expected production output for the following three months for each Union production facility; reasons that prevent the filling of production capacity; or other existing data necessary to assess the nature of the semiconductor crisis or potential mitigation or emergency measures at national or Union level. Any request should be proportionate, have regard for the legitimate aims of the undertaking and the cost and effort required to make the data available, as well as set out appropriate time limits for providing the requested information. Undertakings should be obliged to comply with the request and may be subject to penalties i. If they fail to comply or provide incorrect information without any reasonable explanation given, may be subject to penalties. Any information acquired should be subject to confidentiality rules. Should an undertaking be subject to a request for information related to its semiconductor activities from a third country, it should inform the Commission so to enable an assessment whether an information request by the Commission is warranted. The request of information must be used restrictively and executed in a manner that minimise administrative and regulatory burdens, by clearly stating what kind of information is absolutely necessary. The Commission must always take into consideration the administrative burden and the consequences of hampering innovation capacity and risk of trade escalations with third countries.
Amendment 151 #
Proposal for a regulation
Recital 54
Recital 54
(54) During a semiconductor shortage crisis, it might become necessary that the Union considers protective measurthe Union may only consider protective measures if all other measures have been investigated. Protective measures must be avoided at all costs, as they will damage the Union's trade relations and will have unpredictable consequences. The European Semiconductor Board may express its views to inform the Commission’s assessment of whether the market situation amounts to a significant shortage of essential products pursuant to Regulation (EU) 2015/479.
Amendment 153 #
Proposal for a regulation
Recital 55
Recital 55
(55) In order to facilitate a smooth, effective and harmonised implementation of this Regulation, cooperation and the exchange of information, the European Semiconductor Board should be established. The implementation of this Regulation must comply with Union law, the WTO Agreement and be consistent with commitments made under other trade and investment agreements to which the Union or the Member States are parties. The European Semiconductor Board should provide advice to and assist the Commission on specific questions. These should include providing advice on the Chips for Europe Initiative to the Public Authorities Board of the Chips Joint Undertaking; exchanging information on the functioning of the Integrated Production Facilities and Open EU Foundries; discussing and preparing the identification of specific sectors and technologies with potential high social impact and respective security significance in need of certification for trusted products and addressing coordinated monitoring and crisis response. Furthermore, the European Semiconductor Board should ensure the consistent application of this Regulation, facilitate cooperation between Member States as well as exchange of information on issues relating to this Regulation. The European Semiconductor Board should support the Commission in international cooperation in line with international obligations, including in information gathering and crisis assessment. In addition, the European Semiconductor Board should coordinate, cooperate and exchange information with other Union crisis response and crisis preparedness structures with a view to ensure a coherent and coordinated Union approach as regards crisis response and crisis preparedness measures for semiconductor crises.
Amendment 183 #
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 renewable and low carbon energy and electro mobility, lower energy consumption, 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; promoting international cooperation between different chips production technologies with third countries and the Union; encourage and maintain competitiveness by learning from different sectors of the chips industry, as for example, the impact and growth of Micro Electro-Mechanical Systems in Europe.
Amendment 222 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. In order to reach security of supply in the Union, Member States may, without prejudice to Articles 107 and 108 of the Treaty, apply support schemes and provide for administrative support to Integrated Production Facilities and Open EU Foundries in accordance with Article 14. Member States must also ensure that any support is necessary, appropriate and proportionate to avoid undue competition distortions.
Amendment 223 #
Proposal for a regulation
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2 a. Any support must align with WTO and the ‘Regulation on foreign subsidies distorting the internal market’.
Amendment 226 #
Proposal for a regulation
Article 15 – title
Article 15 – title
Monitoring and al, alerting and international cooperationg
Amendment 245 #
Proposal for a regulation
Article 15 – paragraph 5 a (new)
Article 15 – paragraph 5 a (new)
5 a. The Commission should increase its commitment on cooperation with third countries by concluding and enforcing trade agreements. In any future investment and trade agreement of the EU with relevant third countries, collaboration in the field of semiconductors and along the entire semiconductor supply chain shall be a key priority.
Amendment 278 #
Proposal for a regulation
Article 20 – paragraph 5
Article 20 – paragraph 5
5. Should an undertaking established in the Union be subject to a request for information related to its semiconductor activities from a third country, it shall inform the Commission in such a manner that is least disruptive to trade and promote international cooperation, as to enable the Commission to request similar information. The Commission shall inform the European Semiconductor Board of the existence of such request from a third country.
Amendment 298 #
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 business representatives and shall be chaired by a representative of the Commission.
Amendment 319 #
Proposal for a regulation
Article 28 – paragraph 4
Article 28 – paragraph 4
4. In fixing the amount of the fine or periodic penalty payment, regard shall be had to the size, if the concerned undertaking is an SME, to the economic and administrative resources, to the nature, gravity and duration of the infringement, taking due account of the principles of proportionality and appropriateness.
Amendment 324 #
Proposal for a regulation
Article 35 – paragraph 1 a (new)
Article 35 – paragraph 1 a (new)
1 a. The implementation of this Regulation by the Union must comply with Union law, the WTO Agreement and be consistent with commitments made under other trade and investment agreements to which the Union or the Member States are parties.
Amendment 325 #
Proposal for a regulation
Article 35 – paragraph 1 b (new)
Article 35 – paragraph 1 b (new)
1 b. No later than three year after the entry into force of this regulation, the Commission shall within proposals in line with its communication on the application of the “one in, one out” principle offsetting the regulatory burden introduced by this Regulation, through the revision or abolishment of provisions in other Union legislative acts that generate compliance costs in the semiconductor sector.
Amendment 326 #
Proposal for a regulation
Article 35 – paragraph 1 c (new)
Article 35 – paragraph 1 c (new)
1 c. No later than three years after the entry into force of this Regulation, the Commission should also consider WTO compatibility and ensure that the Regulation has been aligned with the WTO Agreement.